RBEC UNDP-GEF Climate Change Mitigation Portfolio: Current Status and Lessons Learnt (UNDP presentation prepared by Marina Olshanskaya)

1. RBEC UNDP-GEF Climate Change Mitigation Portfolio: Current Status and Lessons Learnt Presented by Marina OlshanskayaWednesday, 23 September RBEC Energy and Environment Community of Practice Meeting 21-25 September 2009, Bratislava

3. Current status of RBEC CC Mitigation Portfolio

6. Energy bills constitute 20% of low-income households (twice as much as in EU)

7. Access to Energy:

8. Despite nearly universal grid connection, millions rely on wood fuel for heating and cooking needs (Western Balkans, Central Asia):

9. Collapse of district heating systems in Armenia, Moldova, Georgia and gradual deterioration in the rest of CIS

11. Building stock 2-3 times less efficient than in EU

12. Utilities account for 20% in poor households income

13. 30% reduction in costs can make a substantial differenceSource: UNDP/GEF Project Document, Kyrgyzstan

15. Weak capacities to identify and implement energy efficiency measures among municipalities, tenants and district heating companiesTurkmenistan: 50% of customers are not satisfied with heat systems Source: UNDP/GEF Project Report TUK/01/G35

17. 7 multifamily buildings fully renovated and 21 buildings undergoing renovation

18. Annual energy saving: 50-75% due to EE renovationBEFORE AFTER Source: UNDP Project Booklet, Bulgaria

20. At least 7 million USDinvestments leveraged in energy EE across Croatia - 91,5% of households are aware of availability and the benefits of EE products related to home appliances - Project budget: 13 M US$ (on-going) with UNDP/GEF contribution 3.5 M$ BEFORE Energy Charter Advocacy kit under UNDP “House in Order” project Source: UNDP-GEF Project in Croatia

21. Project example: District Heating in Armenia New legal and regulatory framework for rehabilitation of DH systems USD 10 million direct foreign (private) investmentsleveragedinto new DH system (Avandistrict of Yerevan, 213 buildings, 30.000 residents); System features combined heat and power facility, reconstructed network and apartment level metered and regulated system 400 new contracts siged between customers and heat supply companies in the demo/pilot areas based on apartment level heat meters. Multi-apartment panel building with exhaust chimney from gas heater installed in one apartment (not financed by the project!) Heat meter installed at the entrance to an apartment in Avan district of Yerevan 8 Source: UNDP-GEF MTE report, photos by Grant Ballard-Tremeer

22. 9 Project example: Municipal ESCO-Rivne, Ukraine New Combined Heat-and-Power Plant replaced 11 outdated inefficient boilers and constructed heating manifolds providing over 70,000 inhabitants with quality heating and hot water supply services Before: Heat supply to Gymnasium used to be organized from a remote central boiler plant and the Gymnasium was located at the dead-end of the heat supply manifold: temperature in heated spaces was 13C – 15C After: Module type individual boiler plant constructed in 2008 allowed avoiding significant heat losses at utility’s 2km manifolds and secured first comfort winter for schoolchildren and teachers since 1994. Source: UNDP/GEF Project Booklet, Ukraine

24. 10 multi-rise residential buildings in Kazakhstan, Turkmenistan and ArmeniaCo-financing: 50 mln US$ from public and private sector construction programmes Source: http://www.energetska-efikasnost.undp.hr/index.php?option=com_content&view=article&id=193&Itemid=125

25. 11 Small hydro power: Georgia, Kyrgyzstan and Tajikistan UNDP key priorities: renewable energy Wind power: Kazakhstan Biomass: Slovakia, Belarus, Poland, BiH, Slovenia, Latvia Solar Water Heating: Albania

26. 12 Project examples: over 100 MW of biomass-based heat and power installed Belarus: five biomass boilers installed across country (30MWth) Latvia: one 7MWth heat-only boiler in the town of Ludza Poland: five biomass municipal boiler houses (0.5 - 3.7MW) Slovakia: wood pellet Central Processing Unit and conversion of 44 municipal boiler rooms (15 kW - 2,5 MW) Slovenia: eight biomass district heating systems (four large: 1 MW to 4.5 MW, and four small: 0.2 to 0,6 MW) Source: UNDP/GEF Biomass Lessons Learnt

28. Municipal sector EE – Good example: Croatia

30. Capacity building for municipalities/local partners

31. Governmental/private sector co-financing can be real

32. Financial mechanism (guarantee/revolving funds)

33. Set-up of new Energy Service Providers 13

36. RE policies and regulation

37. Governmental co-financing

38. Financial mechanism (guarantee/revolving funds)

39. Private sector co-financing – complex, requires new set of skills/policies from UNDP14

40. 15 Lessons learnt: We do not learn from our lessons learnt UNDP-GEF Lessons Learnt Series “Heating in Transition”: http://www.energyandenvironment.undp.org/undp/index.cfm?module=Library&page=Document&DocumentID=5516 How-to Guide on Local Financing for Energy Efficiency: http://europeandcis.undp.org/Home/show/493DC5EE-F203-1EE9-BEA758AF3FC07287 Opportunities for Biomass Energy Programmes: http://europeandcis.undp.org/environment/show/0918DA7F-F203-1EE9-BD7B7772D2F5835B