Municipal Energy Reform Project Overview – September 2015
USAID Municipal Energy Reform Project •
Project Purpose: Enhance Ukraine’s energy security. Increased end-use energy efficiency combined with increased production of clean energy in cities will reduce the consumption of conventional energy in Ukraine, and will aid in cutting greenhouse gas (GHG) emissions and energy expenditures for imported fuel.
•
Donor: USAID
•
Budget: $14.5 Million
•
Period of Performance: 4-years, September 2013 – September 2017 2
MER Project Overall Expected Results • 266 million cubic meters of natural gas saved • 200 million USD leveraged for EE and CE projects • 500,000 tons CO2 emissions reduction • Independent Regulatory Authority functioning in accordance with best international practices • 100 utilities use new tariffs methodology and benchmarking • 15 SEAPs developed with appropriate local budget support • 15 energy management systems developed and approved in the cities • 15 business proposals, business plans and feasibility studies prepared • 10 CE Regional Resource Centers established to support sustainability 3
MER Project Approach National level: • Strengthening the legal, regulatory, and institutional framework to improve municipal energy services through CE, RE and EE • Support implementation of EC-LEDS • Improving tariff regulation and methodology • Support GOU improving social safety nets for low-income consumers • Public information campaign Municipal level: • Enhancing the capacity of 17 municipalities to plan, manage, and fund the development of their municipal energy systems (SEAPs) • Attracting investments in CE/RE/EE through IFI loans, commercial bank lending (i.e. DCA), ESCOs, and private investments • Educating the public through education and outreach campaign 4
Activity 1: Improve CE Regulatory and Legislative Enabling Environment Adoption and full implementation of Energy Community Treaty and GCC Convention provisions could provide Ukraine with a competitive, transparent, and predicable market framework to attract investment, and underpin CE, RE and EE improvements in the energy sector Developing enabling legislative and policy environment Supporting energy efficiency standards Capacity building and improving tariff setting Improving social safety net policies Developing utility benchmarking National public information campaign on EE and social protection 5
Outreach Campaign on Energy Efficiency in Residential Buildings Start: January, 2015 400 big-board and 300 citylight posters in MERP partner-cities.
25 000 posters featuring energy saving tips in household placed in residential buildings of Kiev during 20142015 heating season.
6
Outreach campaign on Alternative Energy Resources in MERP partner-cities: (600 big boards) Start: 2015, April
7
Activity 2: Promote Investment in Clean Energy Technologies and Applications Financial resources are available but require rigorous project preparation: risk assessment and mitigation, financial modeling and viable technical solutions, correct tariff structure to ensure payback and return on investment, adequate collateral, and institutionalized capable management of cities and utilities Developing cooperation strategies Assisting 17 municipalities with planning, preparing, and financing for clean energy projects Introduction of energy management systems Development of DCA loan guarantee Support mechanisms that mobilize private sector investment Preparation of sustainable energy public awareness plans 8
MERP Partner Cities
9
Activity 3: Capacity Building and Dissemination Ensuring sustainability of assistance in the municipal energy sector requires the local expertise and capacity to implement future reforms Local non-governmental organization (NGO) capacity building • Selection of local partners
• Build institutional and technical capacity of local partners • Provide small grants to local NGOs • Transition to USAID direct award
Coordination of anti-corruption in municipal nergy sector
10
Activity 4: Enhance Capacity for the GOU in LEDS USAID signed an MOU with the Ministry of Economy for support of EC-LEDS-REDS in Ukraine at both the national and local levels: building capacity in strategies, inventories, and tools; improving legislation and developing CE/RE/EE projects; and developing a uniform database of LEDS-REDS Strengthening institutional capacity in planning LEDS-REDS • Improve Ukraine’s National System of GHG Inventory and Efficient Use of Resources Assessment •
Incorporate LEDS-REDS into Existing Government Planning Systems
•
Improve National Capacity to Use Strategic Planning Tools
Implementing LEDS-REDS through support in developing and introducing clean energy technologies and energy services Developing a uniform database on LEDS-REDS 11
National Level Accomplishments Legislation / Policy topics EE in buildings Home owners associations Energy auditing in buildings Metering Measurement, reporting & verification National Action Plan on RE National Action Plan on EE ESCOs Energy Management per ISO 50001 Social norms & subsidies procedure Cost recovery tariffs Enhancement Plan for GHG Inventory
prepared approved trained X X X X X X X X X X X X X X ca. 100 X X 1150 staff X X Regulator 12 X
Municipal Level Accomplishments •
• • • • • • •
7 partner cities developed Sustainable Energy Action Plans (SEAPs). SEAPs approved by the city administrations and city councils. 8 new cities started SEAP process; 4 investment proposals developed for IFIs’ (NEFCO, EBRD, WB) financing of CE projects; EE DCA supported with Bank Lviv and new DCA initiated; Training of 1100 energy professionals on efficient use of energy resources and municipal energy management; Training of 180 journalists about EE, CE, RE 29 EE, CE, RE public outreach/public information events held - direct information exchange or capacity building of 8,000 people; Advanced donor coordination established for municipal EE and LEDS. 1000 billboard and 300 city-light posters placed in MERP partner cities to promote EE in multi-apartment buildings and alternative energy resources. 13
Thank you for your attention! Contact: Larry Good Chief of Party, USAID MER Project E-mail: LGood@merp.org.ua Tel.: +380 44 596 596 0 www.merp.org.ua www.facebook.com/merpukraine
14