Implementation of UNFCCC in Armenia: ongoing activities in the context of climate change mitigation measures Diana Harutyunyan Climate Change Programme Coordinator, UNDP/Ministry of Nature Protection Regional workshop Development of Nationally Appropriate Mitigation Actions in South Caucasus Countries 9-10 July, Tbilisi
Armenia as a Party to UNFCCC 1993 Party to the Convention 2002 Party to the Kyoto Protocol 1998, 2010 1 st and 2 nd National Communication, GHG Inventory for 1990 and 2000, and for series of 1990-2006 COP 6, COP 9, COP15, COP18 Statement of Head of Delegation, Minister of Nature Protection.. On commitment to further enhance mitigation efforts in case of adequate TT and financial assistance provided 2010 Association with Copenhagen Accords: priority sectors identified without cost and GHG reduction estimates 2012-2014 Preparation of 3 rd National Communication, and GHG Inventory for 2010 2012 In cooperation with UNFCCC Secretariat was organised Regional workshop on NAMAs in Yerevan for Asia and Pacifi region
Country context Population: 3.2 million GDP: 9.37 bln USD GDP per capita: 3031 USD/person GHG emissions 2006: 6422 Gg Structure of primary energy sources of Armenia for 2010 Structure of final energy consumption in Armenia in 2010 0.002% 54,7% 12,5% 8,3% 24,5% Natural gas Nuclear power Hydro power Oil products Wind and biogas 16% 6% 8% Population 28% 16% Industry Transport 26% Energy Agriculture Other
What is done so far Policy and Measures 2004 Feed-in-tariff for renewable energy and purchase guarantee 2005 Law on Energy Saving and Renewable Energy 2007 EE and RES National Programme 2010 - National Energy Efficiency Action Plan 2011 - Road Map for RES development and SHPP development scheme adopted by the Government 2011-5 year Action Plan on implementation of the UNFCCC commitments, including the development and approval of NAMA Programme 2012 - Atmosphere Protection Law amendment, provisions on banning of agriculture residues and pasture burning
What is done so far Institutional strengthening 2005 - R2E2 fund is established and fully operating 2006 Ministry of Nature Protection is authorized as Designated National Authority for CDM 2009 - Ministry of Nature Protection with support of UNDP supported Climate Change Center is regularly developing and publishing the Armenian Grid Emission Factor 2012 - Inter-agency Coordinating Council of Climate Change, Prime Minister Decree N 955A, and establishment of working group (the list adopted by the Minister of Nature Protection)
What is done so far Projects Modernization of 2 TPPs (one with green ODA credit); Reduction of losses in high voltage and distribution grid; Development of SHPP with private investments, in 2005-2011, around US$85 million was invested in SHPP, which added around 135 MW of new SHPP capacity. As of December 31, 2010 the total RE based electricity production (without large hydro) in Armenia was about 417 million kwh or about 7.6% of total electricity production in the republic which comes from about 100 SHPPs with total installed power of 129 MW, one 2.64 MW wind farm and one 0.8 MW biomass plant. Methane leakage reduction project in gas pipeline (CDM project registered Feb. 2013) and underground storage (EBRD);
What is done so far (cont.) Projects Transformation of heating systems to gas fired centralized systems in public buildings, and individual gas fired appliances in apartment blocks, the share of households in multi-apartment buildings with safe gas-based heating increased from 13% in 2005 to 71% in 2010; Attraction of $16,4 million private investments in cogeneration based district heating rehabilitation (UNDP) in Avan district of Yerevan; Increase of proportion of natural gas-powered vehicles, approximately 50 percent of the total vehicle fleet, due to expansion of gas distribution network; CDM projects: 6 registered, 8 LoAs issued; Piloting of alternative energy resources utilization (wind, solar water heating, biogas).
What is in the process Policy and Measures Revision of energy sector legislation aimed at facilitation of energy efficiency and RES; The EE targets and measures must be further defined for the period of 2013-2020 under National EE Action Plan; The list and implementation deadlines are set (Feb. 2013) for harmonization of legislation including ones which can ensure low carbon development path according the European Neighborhood Partnership Instruments Currently only 7 EU/ISO energy efficiency standards are transposed and adaptation of Building Code is in process /UNDP-GEF project/
What is in the process Projects Energy sector Financing RES projects (World Bank Group, EBRD, ADB, KfW), Technical assistance for introduction of energy efficiency in industrial sector (IFC), financial assistance Armenian Commercial Banks; RES Small scale RES support in rural areas aimed at poverty reduction (UNIDO); Improving of energy statistics and development of Energy Balance of Armenia for 2010 and capacity building for continues actions (can serve as base for MRV, USAID); March 2012 Armenia was ranked in the list of priority countries selected as eligible for CIF programme Scaling-up Renewable Energy Program in Low Income Countries, indicative allocation of up to $40 million, to be implemented by R2E2 fund;
What is in the process(cont.) Projects Urban sector Energy efficiency in urban sector through introduction of new building code, certification of construction materials (UNDP), introduction of financial schemes for retrofitting public buildings (EBRD); Green Urban lighting (UNDP); Transport Road construction for optimization of traffic (national budget, ADB), shifting from mini-buses to high capacity public buses (Yerevan Municipality); energy efficiency measures in Yerevan metro, shifting from diesel and petrol to compressed natural gas LULUCF Improvement of municipal landfill management (ADB, EC, KFW); Illegal logging control enhancement and reforestation projects (FREC, Tree Project, UNDP, WWF), Enhance carbon storage in mountainous grasslands (EC), REDD+ project (UNDP-GEF).
Challenges ahead Energy sector An emerging supply gap: Armenia will need at least 850 MW of new generating capacity as old, under-maintained energy infrastructure is retired, and demand continues to grow steadily. Energy consumption continues to lag far behind 1988 (3.5 GW), the energy use in 2010 was on average below 1.2 GW. Maintaining energy security: Heavy reliance on imported fuels and the old and under-maintained transmission and distribution assets put Armenia at risk of supply interruptions. Maintaining affordable tariffs. Rising fuel prices and the need for new, more expensive generating units make energy less affordable for low-income consumers.
Challenges ahead UNFCCC implementation Development and adoption of national GHG emissions limitation targets, 2015 Development of NAMA, before 2015 Development of NAP, before 2015 Establish institutional framework for biannual GHG inventory development National capacity building for MRV Investigate ways of promoting GHG mitigation in non-energy sectors Ensure conditions for urban low carbon development
NAMA implementation co-benefits for Armenia Ensure energy security; Ensure around 1.21 mln. toe energy saving (eq. 4,25% or GDP) through EE implementation; Improvement of the urban air quality and reduction of traffic congestion; Reduce costs/mitigate cost increase for utility services for the population; Contribute to SD, rural poverty reduction, improvement of ecosystem services through sustainable forest and land management;
NAMA implementation challenges and gaps Setting baselines and targets i) sectoral, or ii) national; Evaluation of the GHG emission potential and opportunities in-line with sectoral policies; Establishing system for monitoring and reporting of GHG emission reductions, improvement of national statistics; Establishment of coordination scheme for NAMA implementation and monitoring; Demand side EE measures implementation in some aspects is not in benefit of energy supply monopolies; Low awareness on NAMA concept and opportunities both on institutional and professional level; Limited knowledge of international carbon funding opportunities and requirements for effective identification and formulation of attractive projects; Limited capacities for formulation and utilization of the international public and private financing opportunities; Limited information on Fast-start Funding assistance to Armenia
Questions to be discussed under NAMA concept and implementation How to consider the suppressed demand for energy services in the baseline, and how to build BAU scenario to reflect real demand for energy services? How the impact of policies and long term measures be measured and reported? How the cross effects between sectoral policies can be assessed and measured? Can CDM projects GHG emission reductions be counted in the countries commitments or not (double counting)? How the concept of the best available technology will be applied in the sectoral baseline identification (IP issue, technology transfer)? How to include power exchange in the regional grid in NAMA?
NAMAProject example: District Heating rehabilitation, UNDP-GEF Project 2005,-2012 New legal and regulatory framework for rehabilitation of DH systems, and tariff setting for useful heat demand based small scale cogeneration USD 16,4 mln direct foreign (private) investments leveraged into new DH system (Avan district of Yerevan, 76 buildings, 10.000 residents); System features combined heat and power facility, reconstructed heat supply and distribution network and apartment level metering and regulation, 2 part tariff for heat energy Energy center, 4 MW (E) and 4.36 MW (T) 400 new contracts siged between customers and heat supply companies in the demo/pilot areas based on apartment level heat meters. 16 Heat meter installed at the entrance to an apartment
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