Practical Manual “Preparation of Clean Energy Project Proposals”
In the practical manual “Preparation of Clean Energy Project Proposals”, developed by the specialists of USAID Municipal Energy Reform Project (USAID Project), preparation of clean energy projects for the Sustainable Energy Action Plans (SEAPs) provides guidance following the principles of systemic approach: (i) goal setting, (ii) feasibility study, (iii) environmental assessment, (iv) identifying the specific financing sources.
PRACTICAL MANUAL OBJECTIVE
Objective of the practical manual is assistance to the Ukrainian cities in planning, preparation and financing of clean energy projects and adaptation of the European methodology tailored to the Ukrainian realities.
EXPECTED EFFECT OF PRACTICAL MANUAL
Practical manual will allow the cities to make an optimal selection of clean energy projects in key sectors of municipal economy: sector of residential and public buildings, heat energy generation and transportation, water supply and sewage sector, municipal transport sector, street lighting sector, etc. during development of the Sustainable Energy Action Plan.
TARGET AUDIENCE OF PRACTICAL MANUAL
- representatives of local authorities;
- employeesofcommunalutilities (heatsupply, watersupplyandsewage, publictransport, streetlighting, amenityplantingandlandscaping, etc.);
- representatives of environmental NGOs;
- representatives of condominiums and residents.
PRACTICAL MANUAL IN GREATER DETAIL
The manual is written clearly and understandably for average Ukrainian interested in energy efficiency projects that are worth implementing in the apartments or buildings. The manual presents the most efficient technical solutions with identification of expected effect in terms of reduction of energy consumption and СО2 emission. The manual sheds light on importance of own contribution to energy security and environmental safety of Ukraine.
Practical manual “Preparation of Clean Energy Proposals” consists of five sections and annexes.
Section One defines the notion of clean energy and clean energy project proposal. Clean energy means energy received as a result of energy efficiency improvement and use of alternative and renewable energy sources. Consideration is given to a number of technical, environmental, financial and social restrictions which hamper implementation of clean energy projects in Ukraine .
Section Two analyzes clean energy projects in the sectors of municipal economy which are most feasible for reduction of energy consumption and CO2emission: residential and public buildings; generation, transportation and sale of heat energy, water supply and sewage, municipal transport, street lighting, introduction of alternative and renewable energy sources. Special focus is given to projects on energy efficiency and energy saving in residential buildings’ sector .
In the conditions of restricted financial resources, the local authorities and communal utilities as key participants of the process of SEAP development and implementation must carefully select clean energy projects for maximizing effect from their implementation as part of the municipal energy policy. For this purpose, Section Three of the manual provides detailed recommendations on preparation of feasibility studies for clean energy projects. This Section is devoted to the most important aspects of feasibility studies for clean energy projects on the basis of a rather interesting and comprehensive project which contains all the technical and economic solutions already implemented in Ukraine .
Section Four is covering reality and prospects of the Ukrainian municipalities in search of financing sources for implementation of clean energy investment projects envisaged by SEAP. Manual provides overview of funding options available and used for the time being , and also analyzes possibility of private sector involvement in financing of clean energy projects. In particular, there is analysis of (i) funding under public-private partnership (PPP); (ii) energy service companies (ESCO), and under terms of energy performance contracts; (iii) residents of multi-apartment buildings, especially those with established condominiums.
Section Five reviews the key principles and methodology for identification and calculation of CO2 emission. As a result of inventory of actual energy losses in different sectors of municipal economy, the baseline emission inventory (BEI) is identified. BEI allows to identify the key anthropogenic sources of CO2emission, and to rate the sectors of municipal economy by criteria of CO2emission reduction as a result of implementation of energy efficiency projects, alternative and renewable energy sources. Permanent monitoring and reporting on project implementation and energy efficiency measures developed and approved in SEAP will allow to ensure their fulfillment according to the goal set.
Annexes present reference data, results of calculations, forecast indicators etc.
Practical manual will be useful to all those who have intention to promote reduction of greenhouse gas emission in environment both due to implementation of the Sustainable Energy Action Plan, and due to implementation of energy efficiency measures in everyday life: at work and at home.
 In particular, restricted current potential of the renewable energy sources in Ukraine allows for just partial replacement of natural gas with them. At the same time, the obstacles may be of subjective nature, for example, due to low level of awareness of the city residents as key stakeholders of the need to use energy resources economically and to transfer to clean energy sources.
 Detailed description is given to potential projects on improvement of thermal insulation characteristics of the walls, windows, roofs etc., and abilities of this type of projects to reduce heat losses through the building envelope, and thus way to reduce CO2emission. The projects on reconstruction and modernization of the engineering systems of buildings provide for repair and recovery of piping heat insulation in non-heated premises; introduction of measures on establishment of the building-level automated heat inlets with weather-based heat controls; installation of heat controllers on the heating equipment and of balancing valves, energy saving measures in the ventilation, gas supply, hot water supply systems etc.
 Today, investmentincleanenergyprojectsinmajorityofmunicipaleconomysectorsisdonefrom: ownfundsoftheutilities (depreciationdeductions; partofincomewhichisre-investedinimplementationofsuchprojects); funds and/or co-financing of the local and State Budget of Ukraine, targeted subventions from the State Budget of Ukraine; attracted loan funds of the commercial banks and international financial institutions and grant funds.