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Energy Efficiency in Public Buildings in Ukraine
Commissioning Unit: Ukraine
Evaluation Plan: 2018-2022
Evaluation Type: Project
Completion Date: 12/2019
Unit Responsible for providing Management Response: Ukraine
Documents Related to overall Management Response:
 
1. Recommendation:

New FSM and Project Financing Enhancement with the aim of establishing a relevant and efficient FSM on a long-term basis, the EEPB project should make an arrangement to work alongside the SAEE at the design stage of the Feasibility Study of the ‘’Green Fund’’, which was envisaged to finance EE activities in various economic sectors. The Government of Finland expects to finance the Feasibility Study. The main purpose of the recommended involvement is to make sure that the likely ‘’Green Fund’’ will have a built-in component to deal with ESCO/EPC financing needs. To this end, the EEPB should provide the financial TA for to the SAEE.

Who:

The International or National Expert with an extended understanding and experience in financial mechanisms dedicated to ESCOs, e.g.: Loan Guarantee Fund, Factoring, forfaiting[1] or Buyout mechanism. The Financial Mechanism Expert will closely work with the SAEE.

When and How:

Step 1: Sign a MoU with the SAEE for confirming their mutual interest and commitment.

Step 2: The EEPB will draft the National/International Expert’s ToRs in coordination with the SAEE. The expert should be jointly selected by the Project and the SAEE.

Step 3:  The Expert must have a workstation within the SAEE’s premise.

 

Management Response: [Added: 2020/04/22] [Last Updated: 2021/01/27]

Accepted

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Sign a MoU with the SAEE for confirming their mutual interest and commitment.
[Added: 2020/04/22] [Last Updated: 2021/05/04]
UNDP CO, Project Manager 2021/09 Not Initiated Subject to: (i) re-confirmed interest of State Agency for Energy Efficiency after its restructuring in December 2019, (expected) in developing FS; and (ii) re-confirmed commitment of the Government of Finland. Acting Head of State Agency for Energy Efficiency was appointed on 2 July 2020. The MoU was not signed also due to temporary suspension of the Project activities since 26.11.2020. Therefore, UNDP did not develop FS of the Green Fund. It is envisaged to be completed by September 2021 in case of positive outcome of pre-start activities of the project after the suspension was lifted.. History
2. Recommendation:

Countrywide EMIS extension - Whilst not undervaluing the importance of ESCO development, the priority for the upcoming two or three years should be transferred to the development of the countrywide EMIS-Database.

The Evaluator recommends much more intensive support in the direction of SAEE and the Working Group, with the aim of outlining a detailed methodology and selecting the most appropriate web-based tool(s). Such a support is essential for the rollout of a platform for web-based data collection and analysis at a centralized level (SAEE).

In addition to the Working Group mentioned above, the Evaluator recommends setting up a sort of Task Force dedicated to the development and implementation of the countrywide EMIS from January 2020 to the end of the project timeframe.

In many municipalities some officials mentioned a barrier at the level of city council related to investment in EMIS. This recommendation aims at extending the EMIS to a broader spread of municipalities, countrywide, while simultaneously extending the EMIS&C at the local building level (ref.: Recommendation 4). For extending the EMIS to all cities, the project must continue and enhance its effort for enforcing a new secondary regulation to this end.

Who:

The EEPB already involved an international expert for dealing with the web-based tool. The expert should increase his involvement with the SAEE with the aim of accelerating the full rollout of the web-based EMIS Database. It has been done in many countries and the EEPB could learn more from the web-based EMIS in operation in the sub-region. In addition to a more intensive involvement of the international expert, the EEPB should involve a National Expert for supporting the reputable International Expert involved since 2018. The EMIS National Expert should also be responsible for meeting with municipalities, pushing them to embark on the EMIS and EMIS&C.

Management Response: [Added: 2020/04/22] [Last Updated: 2021/01/27]

Accepted

Key Actions:

Key Action Responsible DueDate Status Comments Documents
The EEPB project should establish the EMIS Support Unit (or Task-Force) in the SAEE. The national expert (to be recruited) and the international expert (Mr. Goran) should be intensively involved with the EMIS unit and along with the related SAEE’s staff members. The mandate of the EMIS Unit must be to finalise the EMIS data collection methodology and tools, and provide the training to energy managers at the municipal level and the central EMIS website Administrator. The rollout of the countrywide EMIS is critical because it is a major deliverable of the EEPB.
[Added: 2020/04/22]
Project Team 2022/12 Not Initiated
3. Recommendation:

Strengthen Awareness and Dissemination of Achievements

At the end of the project timeframe, the EEPB should plan an international conference (regional) on ESCO EPC implementation in public buildings supported by a high quality EEPB Final Report with the aim of sharing its experience and raising the awareness of the donor community. Other countries in the region where projects related to ESCO/EPC have been implemented should be made to participate. Such a requirement has already been pointed out in the Project Document, but the Evaluator would like to stress again the importance of the regional information dissemination based on quality reporting.

Who:

The Project Manager is responsible for drafting the EEPB Final Project report. He technical and institutional extended knowledge will be valuable for strengthening the technical, financial and organizational priority topics to be highlighted in the report. On the other hand, with the aim of issuing a high-quality report, the EEPB should also involve a professional editor.

When:

The Final report should be prepared about three months prior to the ESCO Ukraine international Conference.

Management Response: [Added: 2020/04/22] [Last Updated: 2021/01/27]

Accepted

Key Actions:

Key Action Responsible DueDate Status Comments Documents
At the end of the project timeframe, the EEPB should plan an international conference (regional) on ESCO EPC implementation in public buildings supported by a high quality EEPB Final Report with the aim of sharing its experience and raising the awareness of the donor community.
[Added: 2020/04/22] [Last Updated: 2021/08/13]
Project Team 2023/07 Not Initiated The project has received no-cost extension until 2023, hence the implementation of action has to be moved to the end of the project timeframe. History
4. Recommendation:

Implementation of a series of ESCO EMIS&C pilot projects

The Project must take action to implement a series of EMIS&C[1] pilot projects. The EMIS&C pilot projects aim at demonstrating the performance, in terms of energy savings, resulting in a better control of energy consumption and demand. By demonstrating the relevance of energy management and control the EEPB project should speed up the extension of the EMIS-Database and later on the replication of EMIS&C in a large spread of municipalities (countrywide) with the aim of reaching an annual GHG emissions reduction of 5,000 tons/yr rather than 1,238 t/yr which is the current achieved rate by the EEPB.

To this end, the EEPB should implement a series of 10 pilot ESCO EMIS&C projects and additional training sessions related the operation of the energy control equipment (black box), 

where new metering and control equipment will have been installed in selected public buildings.

As a first step, the EEPB project should select up to 10 buildings, (5 buildings preferably in a single large city, e.g. Odesa, and other 5 building in other cities) and proceed with the required FS and baseline analysis. These 10 ESCO EMIS&C pilot projects should not be combined with any EE measures that could be implemented later on by an ESCO. The aim of such Pilot Projects is to find out the actual energy savings resulting directly from the implementation of the EMIS&C. The cost of equipment should be paid for by the EEPB, as a grant. Such a series of EMIS&C projects and the information dissemination of results should help to remove any existing barriers at the city level and also aid in promoting the involvement of Energy Managers.

At midterm, the EMIS (local) works in 10 cities (498 buildings) and 2 regions (25 small cities, 23 villages), which includes the installation of meters in public buildings. As a result, 56% of energy savings (EEPB) came from the EMIS already implemented and 44% from pilot and replicated EE projects. It is an important lesson that is to be learned.

EMIS equipped with the needed electronic device allows the building manager to get the real-time data and take the appropriate action for a better control of demand and consumption. When the EMIS is supported by a control system (EMIS&C) at the building level, the benefit in term of energy saving is estimated at 5-10% a year, and perhaps more. Such energy savings are reached through a low-cost investment.

The Evaluator recommends implementing at least 10 EMIS&C pilot projects ASAP, and proceeding with an outreach campaign for disseminating the positive and proven result spread on a period of one year. The EMIS&C pilot projects could be appropriate for testing an incentive mechanism for the municipal Energy Manager.

 

Management Response: [Added: 2020/04/22] [Last Updated: 2021/01/27]

Accepted

Key Actions:

Key Action Responsible DueDate Status Comments Documents
10 EMIS&C Pilot Projects should be implemented and fully operational
[Added: 2020/04/22] [Last Updated: 2021/09/03]
Project Team 2023/12 Initiated RFP for providing series of EMIS&C pilot projects in two selected regions of Ukraine is prepared and submitted for review. Due to project suspension the project was extended to 2023, hence the implementation of action would require more time to align with project implementation. History
ESCO will proceed with energy management during the initial year. The ESCO will be required to submit the final report at the end of energy management period and will transfer the energy management task to the local Energy Manager.
[Added: 2020/04/22] [Last Updated: 2021/09/03]
Project Team 2023/12 Initiated A pilot project on ESCO-management in Severodonetsk has been commissioned. In a nutshell an ESCO is responsible for energy management functions only in selected buildings. After evaluation of results, the replication projects will be initiated in buildings with selected criteria (no other EE improvements has been applied). Due to project suspension and following extension to 2023, additional time is needed to complete implementation of this action. History
The EEPB will organize a national EMIS Database/EMIS&C national conference in July 2021 for disseminating the result and promoting its replication in other cities.
[Added: 2020/04/22] [Last Updated: 2021/05/10]
Project Team 2021/10 Not Initiated Rescheduled due to project suspension. History

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