UKRAINE : ENERGY EFFICIENCY and RENEWABLE ENERGY State Agency on - PowerPoint PPT Presentation

UKRAINE : ENERGY EFFICIENCY and RENEWABLE ENERGY State Agency on Energy Efficiency and Energy Saving of Ukraine

MAIN PRIORITY: NATURAL GAS SAVING Dynamics of natural gas consumption in 2014-2017* Achievements of 2014 - III quarter of 2018: Invested in Ukrainian " clean“ energy projects 5 billion m 3 - 6 billion m 3 ∑ ≈ 1,6 billion euros – potential for reducing of – € 1.2 billion saved in annual consumption and 2017 substitution of natural gas from 2022 IN RENEWABLE ENERGY: billion. m 3 2 000 MW of new heat capacities 24 -24% Investments – 460 million € 0,66 958 MW of new renewable energy capacities - 25 % 18 - 27 % -22% 8,4 Investments – 910 million € , including: 0,50 13 - 40 % 6 031 of families installed SPP with total capacity - 121 MW 6,6 - 39 % - 24 % 0,3 Investments – 120 million € Public sector 4 - 20 % IN ENERGY EFFICIENCY: 15 Heat supply 500 000 of families implemented energy efficiency measures via companies 11 9 "warm" loans in the residential sector Households 2 Investments – 220 million € 204 ESCO-contracts are concluded in the public sector 2014 2017 2022 (forecast) Investments – 6,3 million € * according to operational data of NJSC “ Naftogaz of Ukraine” and PJSC "Ukrtransgas" (without temporarily occupied territories)

СURRENT STATUS OF ENERGY EFFICIENCY AND RENEWABLE ENERGY IN UKRAINE National Renewable Energy Action Plan-2020 11% of Renewables in final energy consumption National Energy Efficiency Action Plan-2020 Energy Strategy of Ukraine till 2035 of energy saving comparing to the average final 9% energy consumption in 2005-2009 of energy, produced from RES 25% in the structure of primary energy supply € 30 bln Potential directions of investment attraction Necessary investments by 2035 for: Residential sector – continuation of state program for stimulating households to implement construction of renewable energy facilities energy efficiency measures (SPP, WPP, small HPP, CHP, biomass boiler station, € 44 – 74 bln – investment potential biogas facilities, etc.) construction of capacities for production of equipment for Industry – state support for realization of energy efficiency renewable energy facilities measures € 2,3 bln – investment potential 3 construction of biofuel production plants (solid, liquid) Public sector – development of EPC market growing of energy crops € 8 bln – investment potential

STATE SUPPORT PROGRAM FOR HOUSEHOLDS ("WARM LOANS PROGRAM”) Total sum of loans issued, mln. UAH Duration : Active since Oct’2014 6 091,0 Quantity of loans Mechanism : 296 644 Partial reimbursement of loans got by 2 325,6 individual households & condominiums IN TOTAL 1 031,8 1 458,9 1 246,6 28,0 110 960 1 604 77 941 84 177 21 962 Financial intermediaries : Oschadbank, Privatbank, 2014 2015 2016 2017 2018 2014- Ukreximbank, Ukrgasbank 2018 (as of 30.11.2018) Support share : 20% - for biomass boilers ( 35% for obtainers of housing subsidies) 35% - for energy efficiency measures for individual households 40% - for condominiums ( 70% for obtainers of housing subsidies) Funding: EUR 190 million (≈ 6,1 billion UAH) has been distributed to ≈ 500 000 households EUR 73 million (≈ 2.3 billion UAH) – reimbursed by the Government (during 2014 - 2018) + 167 regional programs functioning in 2018 for extra reimbursement of « warm » loans Effect: Estimated annual savings of resources in natural gas equivalent is 249,3mln m 3 . Amounts of reimbursement: 1 5 4 • in 2017 - 818 million UAH • in 2014 - 2.4 million UAH • in 2018 - 500 million UAH • in 2015 - 302 million UAH • in 2016 - 861 million UAH

ENERGY PERFORMANCE CONTRACTS (EPC, ESCO) FOR ENERGY EFFICIENCY MEASURES IN PUBLIC BUILDINGS Tenders were held in 43 cities of Ukraine: EPC plans 2018: ≥ 370 contracts 2016: 20 EPC contracts worth 18 million UAH were concluded 2018: 184 EPC agreements worth 186,5 million UAH were concluded EPC Tenders: 613 - EPC tenders 265 - Completed auctions via EPC proposals 184 - Concluded EPC contracts 37 - Nearest auctions 27 - Open tenders for EPC proposals 284 - Cancelled and unsuccessful tenders* 21 43 5 - Cities where tenders are announced * - no tenders (of 1 or <participants)

LAW OF UKRAINE «ON FOSTERING RENEWABLE ENERGY DEVELOPMENT» EUR/MWh Technology/Comm.Year 2015 2016 2017-2019 2020-2024 2025-2029 Biomass 123.86 123.86 123.86 111.48 99.09 Biogas 123.86 123.86 123.86 111.48 99.09 Geothermal 150.25 150.25 150.25 135.17 120.09 Small Hydro (0.2-1MW) 139.48 139.48 139.48 125.48 111.48 Small Hydro (1-10MW) 104.47 104.47 104.47 94.24 83.47 Solar (ground based) 169.64 159.94 150.25 135.17 120.09 Solar (roof based) 180.41 172.33 163.71 147.56 130.86 Wind (>2MW) 101.78 101.78 101.78 90.47 79.16 Solar (private households) 200.32 190.09 180.94 162.63 144.86 Wind (private households) 116.06 116.06 116.06 104.47 93.16 Average biomass feed-in tariff, Feed-in tariffs are fixed in EUR till 2030; ▪ EUR/MWh Premium for Ukrainian equipment usage is ▪ provided – 5-10% to existing tariff; 123.86 100 Signing of bankable long-term Power Purchase ▪ 38 Agreement (PPA) with feed-in tariff till 2030; 6 Stimulating tariffs for heat produced from ▪ Poland Germany Ukraine alternative sources envisaged.

INSTALLED CAPACITY OF RENEWABLE ENERGY OBJECTS 1 925 WORKING UNDER THE "GREEN" TARIFF 45 44 1 426 96 1 135 522 39 999 34 967 95 39 121 20 35 35 90 465 17 15 87 80 438 51 426 426 1097 17 2 0,1 742 531 432 411 2014 2015 2016 2017 Q І I І 2018 SPP SPP Households WPP Small HPP Biomass Biogas From the beginning of 2015, 958 MW were introduced and 7 1 7 around € 910 mln were invested.

EXAMPLES OF SUCCESSFUL RENEWABLE PROJECTS Combined Heat & Power Teofipol biogas Wind power turbines (CHP) on renewable fuels complex 15 MW production plant (PJSC “Orel - Lieder”) Under license of German company CHP provides heat and electricity: Town: Teofipol, Khmelnitskii region Fuhrlaender AG 190 residential buildings ( 22 000 dwellers); Type of fuel: sugar beet pulp, corn silage 3 kindergartens; 5 schools . City: Kramatorsk Electricity production: 15 MW City: Kamyanets-Podilskyy Power of turbines: 2.5 - 3.2 MW Capacity: 45 MW including: - 5 MW (first line working on sugar beet pulp); 15 MW – solid fuel boiler (5 and 10 MW); Planned: 4.1-4.5 MW 1,8 MW – turbine with ORC module (on solid fuel); - 10 MW (second line working on corn silage). Built: 77 turbines in Ukraine and 22 Heat production: 15 MW Fuel: wood chips, pellet 8 turbines in Kazakhstan Investments: 8,2 mln EUR Investments: 40 mln EUR Substitution: 8,4 mln m³ of natural gas Equipment: Jenbacher (Austria) annually

UA MAP COMPRISES DETAILED INFORMATION ON MORE THAN 79 IMPLEMENTED AND 101 POTENTIAL PROJECTS THAT REQUIRE INVESTMENTS & SOFT LOANS IN AMOUNT OF € 4 BLN www.uamap.org.ua 9

NEW PRIORITY OF STATE ENERGY POLICY IN UKRAINE: WASTE TO ENERGY Annually: 300 – 350 kg is produced by one of household solid waste person in Ukraine 10 mln tons is carried out to the of household waste landfills in Ukraine gas equivalent ≈1 bln m 3 3,5 mln Gcal 1,2 billion kWh of heat energy of electric energy 10 New legislation for electric and heat energy production from waste is under development

CREATION GREEN BONDS MARKET IN UKRAINE SAEE has prepared draft legislation for green bonds introduction in Ukraine The concept of green bonds Main buyers Funds world use compliance Energy efficiency in buildings 24% Renewables Clean 43% transport GREEN 13% BONDS debt instrument, Waste focused investors, management the funds from the sale of which are sent 4% who demonstrate environmental, social Conservation exclusively for financing the "green" Other of water and governance responsibility 10% projects (both new and existing) resources 6% By ОЕС D Green bonds world market development indicators Key world issuers $ billion estimate 300 250-300 250 Corporations 25% Banks 200 17% 161,4 150 States and 81,4 municipalities 11 100 8% 36,5 Bonds 41,8 50 guaranteed by 11 3,9 3,1 IFIs and states 0,86 0,41 0,91 1,2 International 0 1% Financial Institutions 1 2 3 4 5 6 7 8 9 10 11 12 49% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 * according to Climate Bonds Initiative

INVEST in UKRAINE ! State Agency on Energy Efficiency and Energy Saving of Ukraine Phone: +38 (044) 590 59 64 E-mail: office.saee1@gmail.com