UKRAINE. ENERGY EFFICIENCY and RENEWABLE ENERGY INVESTMENT OPPORTUNITIES. State Agency on Energy Efficiency and Energy Saving of Ukraine

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1 UKRAINE ENERGY EFFICIENCY and RENEWABLE ENERGY INVESTMENT OPPORTUNITIES State Agency on Energy Efficiency and Energy Saving of Ukraine Muzeinyi lane,12 Kyiv, Ukraine tel.: , fax: ,

2 ENERGY EFFICIENCY AND RENEWABLE ENERGY SECTORAL POLICIES Energy intensity in European countries (IEA,2014) 0,09 0,09 0,1 0,1 0,1 0,11 0,11 0,15 0,17 0,31 Germany Romania Lithuania Croatia Hungary Slovak Republic Poland Bulgaria Belarus Ukraine 33% 32% 8% 17% 10% Households State and local programs of co-financing of energy efficiency Households stimulation on installation of wind and solar plants Energy labelling systems Full metering of energy consumption Stimulation of recipients of subsidies to save energy Industry Stimulation through energy tax Energy Performance Contracts Services, Public Entities and Agriculture Energy Performance Contracts The mechanism of energy management Transport and Non-energy use Stimulation of liquid biofuels production Extension of electric vehicles usage 2

3 NATIONAL TARGETS ON ENERGY EFFICIENCY AND RENEWABLES Requirements of Directives 2012/28/EU and 2012/27/EU National Renewable Energy Action Plan-2020 National Energy Efficiency Action Plan-2020 as of Oct.1, 2014, 902-р as of Nov. 25, 2015, 1228-р 11% of Renewables in final energy consumption -9 % (6,5 mln t.o.e.) of energy saving comparing to the average final energy consumption in Ukraine was the 20 th country to ratify the Paris Agreement The share of renewables in primary energy supply should be 25% according to New Energy Strategy till

4 KEY PRIORITY: SUBSTITUTION OF NATURAL GAS Reduction of natural gas consumption ,66 8, * More than 1,2 bln EURO saved 18 0,50 New biomass heat generation facilities 5 bln м3 potential for annual reduction of consumption and natural gas substitution by ** 15 6,6 13 0,3 Public Entities 2 GW District Heating Companies Population More than 460 mln EUR investments attracted 0 bln м (forecast) 4 4 *According to "Naftogaz Ukraine (Excluding Crimea, Luhansk and Donetsk regions). **According to regional state administrations.

5 ENERGY EFFICIENCY IN BUILDINGS Residential buildings Multi- Apartment Private (Individual) Public entities Number of Buildings ,5 mln Necessary Investment from 50 to 85 bln USD* from 4 to 8 bln USD* Annual Saving Potential (in gas equivalent) 8 bln cubic meters 800 mln cubic meters *depending on the thermal modernization level 5

6 LAW OF UKRAINE «ON FOSTERING RENEWABLE ENERGY DEVELOPMENT» EUR/MWh Technology/Comm.Year Biomass Biogas Geothermal Small Hydro (0.2-1MW) Small Hydro (1-10MW) Solar (ground based) Solar (roof based) Wind (>2MW) Solar (private households) Wind (private households) Feed-in tariffs are fixed in EUR till 2030; Premium for Ukrainian equipment usage is provided 5-10% to existing tariff; Signing of bankable long-term Power Purchase Agreement (PPA) with feed-in tariff till 2030; Stimulating tariffs for heat produced from alternative sources envisaged. Average biomass feed-in tariff, EUR/MWh Poland Germany Ukraine 6

7 INSTALLED CAPACITY OF RENEWABLE ENERGY OBJECTS WORKING UNDER THE "GREEN" TARIFF , Q ІІ 2018 SPP SPP Households WPP Small HPP Biomass Biogas From the beginning of 2015, 766 MW were introduced and more than 740 mln were invested. 7

8 CURRENT SITUATION IN UKRAINE WITH GENERATION OF HOUSEHOLD SOLID WASTE (HSW) Annually: kg of household solid waste is produced by one person in Ukraine 10 mln tons of household waste removed to the landfills in Ukraine gas equivalent 1 bln m 3 3,5 mln Gcal of thermal energy 1,2 billion kwh of electric energy 8

9 UAMAP comprises detailed information on more than 79 implemented and 101 potential projects that require investments & soft loans in amount of 4 bln 229

10 UKRAINE FINLAND COOPERATION The State Agency on Energy Efficiency and Energy Saving of Ukraine and NEFCO signed an Agreement on operation of the Finland Ukraine Trust Fund for preparation of the "green" projects Fund Budget EURO 6 mln Representatives of SAEE are included to: - Trust Fund EMC - Trust Fund Tasks Implementation Working Group Link on SAEE Trust Fund page: /finland-ukraine-trust-fund 10

11 FINLAND UKRAINE TRUST FUND PURPOSE Promotion of cooperation between Finland and Ukraine through identifying of opportunities for green projects FIELDS OF COOPERATION ENERGY EFFICIENCY RENEWABLE ENERGY WASTE-TO-ENERGY EXPECTED RESULTS Green Investment Fund 5 Feasibility Studies (per year) 1 2 Implemented Projects 11

12 ROADMAP ON THE IMPLEMENTATION OF GREEN BONDS MARKET IN UKRAINE Action Plan for Implementation of the "Energy Sector Reform 2020" of the Energy Strategy of Ukraine till 2035 Development of legislation Creation of conditions for implementation of green bonds market in Ukraine as a mechanism to attract investment in renewables and energy efficiency projects Realization of pilot projects State Agency on Energy Efficiency and Energy Saving and other public authorities Attracting green financing Introduction of the notion of green bonds into Ukrainian legislation and establishment of legal regime of their issue in the context of issuers; Development of guidelines and procedures for the green bonds market. Feasibility studies preparation for green projects and cost calculation in the context of issuers; Conducting an independent valuation of issuers; Estimation of bonds certification according to the international standards. Preparation and holding of a largescale marketing session (RoadShow) on the internal and external capital markets; Partners involvement for cooperation (International Financial Institutions, Green Climate Fund, Green Bond Fund for 12 Developing Markets, Institutional Investors, etc.)

13 INVEST in UKRAINE! State Agency on Energy Efficiency and Energy Saving of Ukraine Phone: +38 (044)