Covenant of Mayors Sustainable Energy Action Plan for the City of Kaunas

Transcription

1 Covenant of Mayors Sustainable Energy

2 Contacts Gintvilė Žvirblytė Lina Macenavičiūtė Phone: Fax: gintvile.zvirblyte@afconsult.com lina.macenaviciute@afconsult.com Date June 2010 m. Version No. 02 Project No Kaunas City Municipal Administration Client: Project Executive: Kaunas City Municipal Administration Gintvilė Žvirblytė Lina Macenavičiūtė

3 CONTENTS June (23) 1 INTRODUCTION COVENANT OF MAYORS FOR SUSTAINABLE LOCAL ENERGY COVENANT OF MAYORS OF THE CITY OF KAUNAS GENERAL STRATEGY RESULTS OF THE BASELINE EMISSION INVENTORY IN COMPARISON TO SUSTAINABLE ENERGY ACTION PLAN REFERENCE LIST List of tables: No table of figures entries found.

4 June (23) 1 INTRODUCTION This Sustainable Energy is under preparation by UAB "AF-Enprima" upon order from Kaunas City Municipal Administration, contract No By way of signing the Covenant of Mayors, the Mayor of the City of Kaunas committed to reduce the emissions of CO 2 in Kaunas City by at least 20%, also, within one year of the date of signing the covenant, to present the Sustainable Energy Action Plan (hereinafter referred to as the SEAP), including the following: Prepare the inventory of emissions including descriptions on how the objectives will be achieved With the frequency of at least every second year after submission of the action plan, to submit an implementation report as the basis for evaluation, monitoring and verification In cooperation with the European Commission and other stakeholders, to organise Energy Days allowing citizens to benefit directly from the opportunities offered by the more intelligent use of energy, and to regularly inform the local media on developments concerning the action plan Take active part in the annual conference of the EU Mayors. The SEAP for the City of Kaunas is under preparation. The purpose: the preparation of the SEAP the implementation whereof by the year 2020 enables the reduction of CO 2 by at least 20%. The SEAP is under preparation according to the methodology approved by the EU Commission "How to Develop a Sustainable Energy Action Plan" (2010). The working group: the following project team of UAB "AF-Enprima" developed the action plan: Gintvilė Žvirblytė, Project Manager Lina Macenavičiūtė, Consultant. The research tools applied: the SEAP was prepared according to the methodology approved by the EU Commission "How to Develop a Sustainable Energy Action Plan" (2010). The data was collected from various institutions of Kaunas City, from departments of Kaunas City Municipality, from energy, transport and other enterprises etc. The SEAP will be presented for the validation of the Kaunas City Council. Upon validation of the plan, the completed tables will be electronically sent to the Office of the Covenant of Mayors in Brussels.

5 June (23) 2 COVENANT OF MAYORS FOR SUSTAINABLE LOCAL ENERGY By signing the Covenant of Mayors, the Mayors of the Cities committed to implement the Sustainable Energy Action Plan in the areas falling within the scope of their competence and to reduce the CO 2 emissions by at least 20% on their territorial units before The idea and actions of the Covenant of Mayors are under implementation: Whereas the Intergovernmental Panel on Climate Change has confirmed that climate change is a reality and that the use of energy from human activities is largely responsible for it; Whereas on 9 March 2007 the EU adopted the Energy for a Changing World package, committing unilaterally to reduce its CO 2 emissions by 20% by 2020, as a result of a 20% increase in energy efficiency and a 20% share of renewable energy sources in the energy mix; Whereas the European Union Action Plan for Energy Efficiency: Realising the Potential includes the creation of a Covenant of Mayors, as a priority; Whereas the EU Committee of the Regions stresses the need to join local and regional forces, as multilevel governance is an effective tool to enhance the efficacy of actions to be taken against climate change, and therefore promotes the involvement of regions in the Covenant of Mayors; Whereas we are willing to follow the recommendations of the Leipzig Charter on Sustainable European Cities, concerning the need to improve energy efficiency; Whereas we are aware of the existence of the Aalborg Commitments, at the basis of many ongoing urban sustainability efforts and Local Agenda 21 processes; Whereas we recognise that local and regional governments share the responsibility of fighting global warming with national governments and must be committed thereto independently of the commitments to other parties; Whereas the EU commitment to reduce emissions will be achievable only if local stakeholders, citizens and their groupings share it; Whereas local and regional governments, representing the closest administration to the citizen, need to lead action and to show example; Whereas many of the actions, on energy demand and renewable energy sources, necessary to tackle climate disruption fall within the scope of competence of local governments, or would not be attainable without their political support; Whereas the EU Member States can benefit from effective decentralised action at local level in order to meet their commitment to greenhouse gas emission abatement; Whereas local and regional governments throughout Europe are reducing global warming pollutants through energy efficiency programs, including sustainable urban mobility, and the promotion of renewable energy sources.

6 3 COVENANT OF MAYORS OF THE CITY OF KAUNAS June (23) The approval to participation of Kaunas City Municipality in the implementation of the Covenant of Mayors was given by Decision No. T-26 of of Kaunas City Municipal Council. Mayor of Kaunas City signed the Covenant of Mayors in Brussels on One of the key requirements of the Covenant of Mayors is to pursue the objectives set forth in EU for 2020, to reduce the emissions of carbon dioxide (CO2) on the territory of Kaunas City by at least 20% before By signing the Covenant of Mayors, the City of Kaunas committed to submit the Sustainable Energy Action Plan (SEAP) demonstrating how the objective of CO2 emission reduction will be achieved by The SEAP form comprises three main subjects: 1. Long-term vision and general strategy; 2. Main results of the baseline emissions inventory; 3. Main aspects of the Sustainable Energy Action Plan. The SEAP structures actions and measures, as well as supports monitoring of their implementation General strategy General reduction goal of CO2 emissions The objective of Kaunas City is the reduction of CO 2 emissions by at least 20% before the year The reduction objective has been fixed as an absolute value expressed in the percentage of the CO 2 emissions emitted in the baseline year. Long-term vision of Kaunas City Kaunas City is the second largest city in Lithuania. Since olden days this city has been an industrial centre and is trying to keep it up. As any other city, Kaunas City directly (energy production, transport etc.) and indirectly (consumer goods and services) account for the major part of greenhouse gas emissions derived from energy use related to human activity. For the purpose of implementing the requirements of the Covenant of Mayors the main objective in the reduction of CO 2 emissions is the increased energy production efficiency and reduced consumption as well as the use of renewable and local energy sources. These areas have the highest objectives.

7 June (23) The increased energy production efficiency is planned by means of constructing new high-efficiency power plants, which will replace the old worn out ones, nonconforming to the environmental protection requirements and low-efficient, or by renovating the existing ones. The reduction of energy consumption is achieved by means of renovation of public buildings and dwelling houses for the purpose of energy cost reduction (the renovation of at least 50% multi-storey dwellings is planned before 2010). The largest source of atmosphere pollution is the combustion of organic fuel. In Kaunas City all largest power plants are fuelled by natural gas. Rarely, bio-fuel or bio-gas is used as fuel for energy production. Therefore, one of the priorities in the implementation of the provided requirements is the use of renewable and local energy sources. The construction of a new power plant for incineration of municipal waste, renovation of the existing power plants by means of implementation of bio-fuel boilers, construction of the sludge dewatering pant etc. are planned in Kaunas City. In addition, the largest Kaunas hydropower plant using the largest renewable sources operates in Kaunas built on the bed of the Nemunas, upstream Kaunas City and producing about 4.4% of the total electricity output of Lithuania. Organisation and financial aspects Thanks to the Energy Unit of the City Economy Department of Kaunas City Municipal Administration, Kaunas City takes part in the implementation of the Covenant of Mayors. Kaunas City Municipal Council approved the participation of Kaunas City Municipality in the implementation of the Covenant of Mayors and Mayor of Kaunas City signed the Covenant of Mayors in Brussels. Pursuant to the requirements set forth in the Covenant of Mayors, the Office of Covenant of Mayors in Brussels shall be submitted a Sustainable Energy Action Plan (SEAP), which will show how Kaunas City Municipality intends achieving the objective of CO 2 emissions reduction by 20% before The participation of the Energy Unit of the municipal City Economy Department is provided in the implementation, monitoring and verification of the Plan. At present there are no employees specified for the implementation monitoring and evaluation as well as for the preparation of implementation reports every second year.

8 June (23) The preparation of the SEAP involved individual departments of the Kaunas City Municipal Administration: City Economy Department, General Affairs Department, Social Affairs Department and City Development Department, as well as enterprises: UAB "Kauno vandenys", AB "Kauno energija", UAB "Kauno termofikacinė elektrinė", AB "VST", UAB "Litesko" branch "Marijampolės šiluma", UAB "Fortum Heat Lietuva", UAB "Šilumininkas", AB "Lietuvos energija" branch Kaunas hydropower plant, AB "Lietuvos dujos", Kaunas Regional Environmental Protection Department, UAB "Unifeksas", Environmental Protection Agency, Public enterprise "Pažaislio kultūros ir turizmo centras", UAB "Kauno švara", Kaunas County Police Headquarters, Kaunas City Fire and Rescue Service, UAB "Kauno miesto apšvietimas". UAB "Kauno autobusai", AB "Autrolis" etc. The total implementation budget is over LTL1.4 billion, including about LTL147.7 million of Kaunas City Municipality budget. It should be noted that the funding is already provided in the endorsed Strategy Plan of Kaunas City for The rest of the funding is the support of the EU funds and other foreign states, also state budget and private funds. A detailed distribution of financing sources is presented in the Sustainable Energy Action Plan. Baseline year The baseline CO 2 inventory is the main subject in the SEAP preparation. As recommended, 1990 is chosen as the baseline year for the preparation of the SEAP. Since at that time most of the data was not stored or have not survived today, only general information on individual categories, distinguishing no subcategories, is presented and used for calculations (see Table 3-1). Selection of emission rates The baseline emission inventories of Kaunas City SEAP will be based on energy consumption in various sectors and the standard emission rate according to the principles set forth by the Intergovernmental Panel on Climate Change (IPCC), thus taking into account all CO 2 emissions, which generated due to energy consumption on the territory of Kaunas City Municipality directly through fuel combustion or indirectly through fuel combustion related to the electricity and heat consumption. This method has been chosen as it grounds on the carbon content in each type of fuel, also as the basis for the national inventories of greenhouse gases prepared under the United Nations Framework Convention on Climate Change and Kyoto Protocol. Under this method, the use of renewable energy and approval of ecological electricity sources results in zero emissions. In addition, CO 2 is the main greenhouse gas, and the part of CH 4 and N 2 O emissions is left out of calculations The main outputs of the baseline emission inventory The baseline emission inventory includes four tables: Table A. Final energy consumption Table B. CO 2 emissions

9 June (23) Table C. Local electricity production and respective CO 2 emissions Table D. Local district heating, total heat and electricity production and respective CO 2 emissions. Tables A and B summarise final energy consumption data of Kaunas City, i.e. the total amount of electricity, heat, fossil fuel and renewable energy consumed by final consumer and the total greenhouse gas emissions generated as a result of this energy consumption. Since the baseline CO 2 emission inventory grounds on the standard emission rate, the categories where bio-fuel is used for energy production will not be included in the evaluation. Sectors where energy is used and/or CO 2 emissions are generated are divided into two categories: Buildings, installations and industry and Transport, and eight subcategories (See Table 3-1). Table 3-1. Sectors where energy is used and/or CO 2 emissions are generated. Category Subcategory Included in the subcategory 1. Buildings, installations and industry This category includes all buildings, services, installations and manufacturing premises. a. Buildings and installations owned by Kaunas City Municipality b. Buildings and installations (not municipal) of the service sector Buildings and energy consuming sites owned by Kaunas City Municipality All buildings and installations in Kaunas City the owners or managers whereof are not the local government (i.e. e.g. offices of private companies, banks, municipal companies, premises of commercial purposes and retail premises, hospitals etc.) c. Dwelling houses Energy consumption in buildings the primary purpose whereof is dwellings d. Public lighting installations of Kaunas City Municipality Public lighting installations owned or managed by Kaunas City Municipality e. Industry Only the industries which are outside the EU system of tradable pollution permits and/or heat and/or electricity output whereof is 20 MW at the most.

10 June (23) 2. Transport This category includes road and railway transport a. Vehicles of transport depot owned by Kaunas City Municipality Vehicles (official cars), waste trucks, fire fighting, police, emergency vehicles owned and used by Kaunas City Municipality and administration. b. Public transport Busses, trolley-buses, minibuses of Kaunas City. c. Private and commercial transport Cars registered in Kaunas City. All data was obtained from annual reports of respective institutions and companies, LR Department of Statistics etc Table A. Final energy consumption BUILDINGS, INSTALLATIONS ANS INDUSTRY. Final energy consumption This section and the tables summarize the key data on energy consumption in Kaunas City, i.e. the amounts of electricity, heat and/or cold, fossil fuel and renewable energy. The data on the category of buildings, installations and industry was obtained from AB "Kauno energija", AB "Lietuvos dujos", Kaunas Regional Environmental Protection Department, AB "VST" and Kaunas City Municipality. Heat. Data on centralised heat production in Kaunas City is presented from 1990 according to the survey on economic activities of the energy system prepared by the LR Ministry of Energy (1993) [1]. Electricity. The data on electricity consumption in Lithuania was presented by AB VST. Since the company presented the data from 2008 only, he evaluation of electricity consumption in 1990 is grounded on the assumption that the ratio of electricity consumption in Kaunas city to the total electricity consumption in Lithuania was similar to that year's. Kaunas City has the largest hydropower plant in Lithuania. The ratio of the electricity produced in that power plant to the total electricity output in Lithuania makes up approximately 4.4%. Therefore the electricity which was produced in the above Kaunas HP and consumed in Kaunas was calculated on the grounds of the assumption

11 June (23) that in 1990 the ratio of electricity consumption in Kaunas City was similar to the ratio of electricity production in Kaunas City in that year. Fossil fuel. The data on natural gas consumption (excluding centralised energy production by companies) in Kaunas City was presented by the Kaunas Regional Environmental Protection Department and by AB "Lietuvos dujos". The Kaunas Regional Environmental Protection Department neither collects nor stores the data, therefore only the information from 2006 was presented. For further calculations the data from 1996 as presented by AB "Lietuvos dujos" is used. Since AB "Lietuvos dujos" has no data distributed by sectors, as such statistics was not conducted, only the total gas consumption in Kaunas City in 1996 is applied in the calculations. TRANSPORT. Final energy consumption This category includes road transport in Kaunas City. The collection of the entire data related to the transport economy has been started since 1995 only therefore all calculations are conducted on the grounds of the data from 1995 presented by the LR Department of Statistics (no data on transport in Lithuania survived before 1995). The LR Department of Statistics presents only the number of cars, thus an assumption is made that the ratio of vehicles and the ratio between petrol and diesel cars in Kaunas City was similar to that of entire Lithuania in that year. The mean annual data on transport usage (km/y) were applied on the grounds of the final report of MEET [9]. Average fuel rates were calculated pursuant to Order No. 405 of 12 October 1995 of the LR Ministry of Transport, which sets forth the methodology for the calculation of fuel consumption rates. Transport fuel consumption (kwh) = Distance (km) * average fuel rate (l/km) * fuel conversion factor (kwh/l) All calculation results are presented in the table below. Fuel Petrol 9.2 Diesel 10.0 Conversion factor (kwh/l)

12 June (23) Category Electricity Heat/cold Natural gas Liquid gas Heati ng Oil FINAL ENERGY CONSUMPTION [MWh] Fossil fuels Diesel Gasoli ne Lig nite Coal Other fossil fuels Plant oil Biofuel Renewable energies BUILDINGS, EQUIPMENT/FACILITIES AND INDUSTRIES: Municipal buildings, equipment/facilities 0 Tertiary (non municipal) buildings, equipment/facilities 0 Residential buildings 0 Municipal public lighting 0 Industries (excluding industries involved in the EU Emission trading scheme - ETS) Subtotal buildings, equipments/facilities and industries TRANSPORT: Municipal fleet 0 Public transport Private and commercial transport Subtotal transport Total Other bioma ss Solar thermal Geother mal Total Municipal purchases of certified green electricity (if any) [MWh]:

13 June (23) Upon the evaluation of energy consumption in Kaunas City in 1990 it may be concluded that the highest energy consumption was within the categories of buildings, installations and industry. The total consumption in all sectors was 2,383 GWh electricity, 4,889 GWh heat and 3,003 GWh of fossil fuel. This data was applied for further calculations of CO 2 emissions Table B. CO2 emissions Table B presents the total amount of the greenhouse gases resulting from energy consumption in Kaunas City Municipality. The Table adds new emission sources which are CO2 emissions generated in the landfill and in the wastewater sludge treatment plant. The evaluation of CO2 emissions generated in the landfill was grounded on the assumption that 1 ton of waste emits 15 m3 of biogas per year, including about 50% methane, about 35% of carbon dioxide, and residuals [4]. The Environmental Department of Kaunas City Municipality presented the data that 103,200 t mixed municipal waste was generated in Kaunas City in Since in that year biogas was not collected (collection started in 1998), 1.5 million m3 of gas generated per year, which equals to over 540,000 tons of CO2 emissions per year based on the CO2 ratio of emissions only (see section 3.1). Since the waste water treatment plant was established in Kaunas City only late in 1999 and full-scale operation started in 2000, the amount of CO2 emissions from waste water sludge in the baseline year equals to zero (t). The IPCC set the provided emission rates and they are presented in the IPCC Guidelines of These rates also apply in the calculations and are presented in the table below.

14 June (23) CO2 emissions [t]/ CO2 equivalent emissions [t] Category Electricit y Heat/col d Natura l gas Liquid gas Heati ng Oil Fossil fuels Diesel Gaso line Lignite Coal Other fossil fuels Bio fuel Plant oil Renewable energies Other biomass Solar thermal Geother mal Total BUILDINGS, EQUIPMENT/FACILITIES AND INDUSTRIES: Municipal buildings, equipment/facilities Tertiary (non municipal) buildings, equipement/facilities Residential buildings Municipal public lighting Industries (excluding industries involved in the EU Emission trading scheme - ETS) Subtotal buildings, equipments/facilities and industries TRANSPORT: Municipal fleet Public transport Private and commercial transport Subtotal transport OTHER: Waste management Waste water management Please specify here your other emissions Total Corresponding CO2-emission factors in [t/mwh] 0,202 0,202 0,202 0,267 0,

15 June (23) The largest CO 2 emissions generated due to the landfill disposal of municipal waste, also as a result of electricity and heat production for the consumers of Kaunas City. Total generation of CO 2 emissions in the years under consideration was 2,716,107 ton. Therefore in the implementation of the provided objective in 2020 the CO 2 emissions should be reduced by at least 543,221 ton Table C. Local electricity production and respective CO2 emissions This table includes only the local power plants and/or installations operated before 1990, which are outside the EU system of tradable pollution permits, the power plants with thermal capacity under 20 MW, if the combusted fuel or the available capacity does not exceed 20 MW, and if renewable energy sources apply. This table includes only Petrašiūnai power plant with the capacity of 8 MW. The electricity produced in Kaunas hydropower plant, which is in Kaunas City and produces electricity for entire Lithuania, is evaluated in the same way as the total electricity consumption in Kaunas City (See section ). However, the CO 2 emission rate of the electricity produced in this power plant equals zero. Figure 3-1. Kaunas Hydropower Plant Table D. Local district heating and/or cooling, total heat and electricity production and respective CO2 emissions This table presents all operational heat and/or electricity supply installations in Kaunas City in 1990, i.e. those installations which sold heat and/or electricity as a commodity to final consumers. The installations which produced energy in decentralised way are not included.

16 Table C Locally generated electricity (excluding ETS plants, and all plants/units > 20 MW) Locally generated electricity [MWh] Wind power 0 Natural gas Liquid gas June (23) Fossil fuels Heating oil Lignite Energy carrier input [MWh] Coal Steam Waste Plant oil Other biomass Other renewable other CO2 / CO2-eq emissions [t] Hydroelectric power Photovoltaic 0 Combined Heat and Power Other Please specify: Total Corresponding CO2-emission factors for electricity production in [t/mwh] Table D Locally generated heat/cold Locally generated heat/cold [MWh] Natural gas Liquid gas Fossil fuels Heating oil Lignite Energy carrier input [MWh] Waste Plant oil Other biomass Other renewable other CO2 / CO2- eq emissions [t] Combined Heat and Power District Heating plant(s) Other Please specify: Total Coal Corresponding CO2- emission factors for heat/cold production in [t/mwh]

17 June (23) 3.2 Results of the baseline emission inventory in comparison to 2008 Since 1990 is selected as the reporting year, the evaluation is made on the variation of emissions between 1990 and The following has been concluded: Heat production reduced from 5, GWh to 1,479 GWh, i.e. CO 2 emissions reduced by 55%; Electricity consumption in Kaunas City reduced from 2,383 GWh to 1,087 GWh, i.e. CO 2 emissions reduced by 46%; Natural gas consumption in Kaunas City, excluding energy producing companies, has not shown high reduction since 1996, i.e. from 133,700 m 3 to 115,200 m 3 Kaunas City public transport sector shows reduced electricity consumption, since in the project was carried out for the replacement of mercury illuminators by sodium resulting in 2% reduction of electricity consumption in this sector irrespective of the electricity network extension. The transport sector shows the increase in CO 2 emissions, due to a marked increase in the number of vehicles, particularly the cars. In 2008 as compared to 1995 in the transport sector petrol consumption increased by approximately 62%, while diesel consumption increased by approximately 57%. The total increase of CO 2 emissions in the transport sector was 59%. The other category - the waste management sector shows a marked improvement, since starting with 2008, 50% of the landfill gas is collected and used for energy production. Therefore CO 2 emissions reduced. Table 3-2. CO2 emissions (t) in 1990 and 2008 in various sectors. Category Buildings, installations, and industry: CO 2 emissions (t) in reporting years CO 2 emissions in 2008 Difference Heat Electricity Natural gas Transport: (-) Other TOTAL: It should be noted that before 2014 UAB "Kauno termofikacinė elektrinė" plans the extension of Kaunas power plant through the installation of a new combined cycle plant (~ 350 MW electrical capacity and ~ 350 MW heat capacity). Upon installation of a new power

18 June (23) plant, the old one will be closed. Upon project completion the annual CO 2 emission of the new plant will equal 1,085,000 t. Considering CO 2 emissions of: 2,716,107 t in ,847,178 t in ,085,000 t due to the new combined cycle power plant construction it follows that for the implementation of the planned objectives in 2020, CO 2 emissions should be reduced by at least t. A detailed description of the proposed measures is provided in the below section. 3.3 Sustainable Energy Action Plan The preparation of Kaunas City Sustainable Energy Action Plan was grounded on the projects which have been started, are ongoing and planned, as well as on the solutions proposed by the specialists in charge of its preparation. The highest reductions of CO 2 emissions by 2020 thus adding to the reduction of climate change are planned in the following sectors: Buildings, installations and industry - the total planned reduction of CO 2 emissions through the implementation of actions before 2020 is 45,910 t The highest reduction of CO 2 emissions in this sector is planned through the renovation of buildings. Through the implementation of the planned actions the saving of t of CO 2 emissions is anticipated. The upgrading of the lighting system in Kaunas City will enable the savings of 707 t of CO 2 emissions. Transport - the total planned reduction of CO 2 emissions through the implementation of actions before 2020 is 37,028 t From 1990 to 2008 the amount of CO 2 emissions in this sector showed increase only, therefore the main actions to improve the situation by 2020 is the improvement of public transport in Kaunas City, which would provide the savings of 37,028 t CO 2 emissions. Total of heat and electricity power plants - the total planned reduction of CO 2 emissions through the implementation of actions before 2020 is about 681,577 t The highest savings on CO 2 emissions is planned in this sector. The key actions will be the closure of old installations and the use of renewable and local energy sources. Under the assumption that the energy output of the new waste incineration plant will be 490 GWh/year through the incineration of municipal waste, wood waste and bio-fuel (wood waste

19 June (23) and bio-fuel are considered CO 2 neutral, thus CO 2 = 0) with CO 2 emissions of 25,600 t/year. But a power plant of the same capacity based on natural gas would generate about 98,000 t CO 2 emissions, thus the reduction exceeds 73,000 t/year of CO 2 emissions. The closure of old installations in Kaunas heat and power plant will enable the savings of over 528,000 CO 2 emissions. The reduction of CO 2 emissions should also take other preventive actions into account, which in the future may have a large input in the further climate change reduction. Building public awareness of the population and stakeholders Quantitative evaluation of energy savings in these sectors is not possible. Neither preliminary estimates nor feasibility studies have been prepared in this area by Kaunas City so far. Only one thing is clear that the larger is the ratio of the public informed of the sustainable development and environmental protection, the larger will be the input in the climate change reduction, i.e. into CO 2 emissions reduction. Land use planning through the increase of green areas, development of pedestrian streets and bicycle tracks etc. - the total planned reduction of CO 2 emissions through the implementation of actions before 2020 is 57,382 t At present on the grounds of the existing geographical information system Kaunas City Municipal Administration is carrying out the inventory of planted areas and plantations in Kaunas city, the development, implementation and completion of the information system and the preparation of the local afforestation project for forests and parks in Kaunas City. Service providers are due to complete their services by the end of 2011 and before July 2011 the existing status and areas covered by forests, forest parks and planted areas (parks, squares, green areas etc.) will be evaluated and proposals will be submitted for the management and improvement of the green areas in Kaunas City. Therefore, for the evaluation of the input of green areas in CO 2 emissions reduction, the Sustainable Energy Action Plan includes an assumed increase of green areas in Kaunas City by 10% from 2012 (the present area is 1,080 ha). 1 ha of forest absorbs kg of CO 2, thus the annual CO 2 reduction of 27,000 t is anticipated. The development of pedestrian streets and bicycle tracks, as well as the construction of pedestrian bridges in Kaunas City is believed to provide the population of Kaunas City with additional options for walking or bicycle riding, thus reducing the usage of automobiles in the city. The calculation of CO 2 emissions is grounded on the assumption that the usage of automobiles will reduce by 5% thus saving 30,382 t of CO 2 emissions per year. In total the actions of the Sustainable Energy Action Plan up to 2020 will enable the reduction of CO 2 emissions by 821,897 tons which would consequently result in 30% reduction of CO 2 emissions in comparison to The entire Sustainable Energy Action Plan is presented below.

20 June (23) SECTORS & fields of action KEY actions/measures per field of action Responsible department, person or company (in case of involvement of 3rd parties) Implementation [start & end time] Estimated costs per action/measure Expected sources of funding Expected energy saving per measure [MWh/a] Expected renewable energy production per measure [MWh/a] Expected CO2 reduction per measure [t/a] BUILDINGS, EQUIPMENT / FACILITIES & INDUSTRIES: Municipal buildings, equipment/facilities Renovation of Kaunas city kindergartens, schools, training centers, cultural institutions, libraries, orphanages, hospitals and clinics heat farm buildings in order to reduce thermal energy consumption. Tools: renovation of heating unit, renovation heating and hot water systems, renovation of electrical supply and lighting system, roof insulation, the old window and door replacement and etc. Energy Division of Kaunas City Municipality City Economy Department EU and applicant s finance Tertiary (non municipal) buildings, equipment/facilities High-efficiency thermal-power plant construction in Kaunas Medical University Hospital ( KMUH). Scope of the project is to install two 1000kW electric power cogeneration units operating on the basis of the internal combustion engine, a new 5 MW thermal (7 t / h) steam boiler and a new 7 MW thermal water-heating boiler, install additional equipment for water deironing and etc. Building reconstruction of PI "Kaunas Medical University Hospital". The goal of project - to increase the energy efficiency of Kaunas University of KMUH buildings PI "Kaunas Medical University Hospital" % EU and 40 % applicant s finance Residential buildings Implementation of residential home renovation program, more than 50 percent of Kaunas city housing. Tools: wall insulation, window replacement, reconstruction of heating and hot water supply system, installation of individual thermal sensors and thermostatic valve, roof insulation, ventilation system replacement or conversion, and others. Energy Division of Kaunas City Municipality City Economy Department % EU and 85 % population s finance Municipal public lighting Industries (excluding industries involved in the EU Emission trading scheme - ETS) & Small and Medium Sized Enterprises (SMEs) TRANSPORT: Modernization of Lighting grid in Kaunas according to the ESCO funding model. Automated collection of street lighting monitoring, control and power control system, which will reduce the lighting power by 50 percent at night will be implemented during the project Energy Division of Kaunas City Municipality City Economy Department Structural funds, budgetary funds and private investor funds Municipal fleet Public transport Modernization of trolleybus contact network and electricity supply. Purchase of low-polluting means of transport - bus and trolleybus (50 pcs.) up to EURO 4 and EURO 5 standards. City Economy Department of Kaunas City Municipality UAB "Kauno autobusai" AB "Autrolis" % Kaunas city municipality, 7 % the state budget, 35 % EU and other foreign funds and 14 % private finance 70 % Kaunas city municipality and 30 % private finance

21 June (23) Ecological public transport development in Kaunas (vehicles powered by biogas, oil) % Kaunas city municipality and 50 % private finance Private and commercial transport Levy for entry into Kaunas old town levy Institution of parking concession for small cars in Kaunas city City Economy Department of Kaunas City Municipality till 2020 Other - please specify: LOCAL ELECTRICITY PRODUCTION: Hydroelectric power Wind power Photovoltaic Construction of state river cargo port City Economy Department of Kaunas City Municipality Combined Heat and Power Modernization and development of Kaunas city electricity network AB "VST" LOCAL DISTRICT HEATING / COOLING, CHPs: 37 % EU and other foreign funds, 37 % private finance, 18 % the state budget and 8 % Kaunas city municipality 82 % private finance, 13 % the state budget and 5 % Kaunas city municipality Construction of Kaunas sludge treatment plants. The third generator of CHP plant will be installed during construction of sludge drying plant, in resulting, all biogas will be consumed which will increase electricity production. Heat will be used for a full year-round also. UAB "Kauno vandenys" % EU and 20 % applicant s finance Combined Heat and Power Closing of old equipment in Kaunas CHP. Petrašiūnai biofuel power plant construction (108 MW thermal power biofuel fired CHP) 40 MW gas turbine and boiler for biofuels construction in Inkaras boiler-house. Currently boiler is not used. UAB "Kauno termofikacinė elektrinė" Till 2014 AB "Kauno energija" till Private finance Private finance AB "Kauno energija" Private finance Construction of waste incineration cogeneration plant and development of biodegradable waste management infrastructure City Economy Department of Kaunas City Municipality EU and applicant s finance District heating plant Kaunas urban centralized heat supply system reconstruction and development UAB "Kauno energija" % Kaunas city municipality, 50 % the state budget, 5 % EU and other foreign funds and 41 % private finance 1253 Modernization of Kaunas city Palemonas district heating network by installation of modern technologie UAB "Fortum Heat Lietuva" % EU and 50 % applicant s finance LAND USE PLANNING:

22 June (23) Strategic urban planning Increasing of green areas and improving the quality of existing areas City Economy Department of Kaunas City Municipality Kaunas city municipality Transport / mobility planning Development pedestrian streets, bicycle paths and construction of pedestrian bridges in Kaunas city Standards for refurbishment and new development PUBLIC PROCUREMENT OF PRODUCTS AND SERVICES: Energy efficiency requirements/standards Renewable energy requirements/standards WORKING WITH THE CITIZENS AND STAKEHOLDERS: All products, covered by the Minister of the Environment Ministry in 22 of December 2007 Order No. D1-194 approved list, contracts must be applied in environmental protection criteria - ie green procurement. City Economy Department of Kaunas City Municipality Kaunas City Municipality till % Kaunas city municipality, 90 % EU funds Kaunas city municipality Advisory services Financial support and grants Awareness raising and local networking Support for the citizens participating in the renovation of apartment houses. Kaunas city municipality till 2012 Kaunas city municipality Develop and implement public education on environmental protection and sustainable development program Kaunas city municipality till Kaunas city municipality Training and education People education on waste management issues, communities contribution to environmental education and the promotion of healthy habits and etc. Kaunas city municipality till 2012 OTHER SECTOR(S) - Please specify: Other - Please specify: Improvement and expansion of landfill and hazardous waste storage facilities City Economy Department of Kaunas City Municipality % Kaunas city municipality, 10 % the state budget, 85 % EU and other foreign funds

23 June (23) 4 REFERENCE LIST 1. Ministry of Energy of the Republic of Lithuania. Survey on economic activities of Lithuania's energy system in Special plan of heat supply to Kaunas City dwelling areas. Endorsed by Decision No. T-320 of Correction of Kaunas City strategy Plan for for the period of Endorsed by Decision No. T-355 of Dr. V. Katinas. Household waste, ecology, economy Business plan for the incorporation of SPAB "Kauno energija". "Kauno šilumos tinklai" European Parliament and Commission Regulation on emission limit values for new light commercial vehicles according to the Community integrated principle to reduce CO 2 emissions from light vehicles. 7. Results of the city transport research project funded by the EU. City traffic control and limitations. PORTAL written materials Report on the national level energy savings in State Enterprise "Energetikos agentūra" 30 June Methodologies for estimating air pollutant emissions from transport (in conjunction with COST Action 319). Final Report Energy efficiency action plan. Endorsed by the Minister of Economy by Decision No. T of 4 December 2008.