As stated above, the annex to Dnipro SEAP is a catalog of investment projects (hereinafter – the Catalog). Information is provided in the Catalog in terms of municipal sectors:

1) heat supply;

2) water supply and sewage;

3) public buildings (city subordinance); 

4) public buildings (oblast and state subordinance, commercial buildings);

5) residential buildings;

6) outdoor lighting;

7) alternative energy, etc.

For each municipal sector, a list of project proposals is suggested. All financial indicators of the projects are evaluated in view of the 15-year planning horizon. To assess the financial flows of the projects, the forecast on prices for energy and energy services was used, also amount of investments and economic performance indicators are presented for each project proposal. The catalog includes those projects and measures that have maximum economic, climatic and/or social effect.

To finance the Sustainable Energy Action Plan, it is proposed to use 7 financial sources. The Chart of distribution of financing by sectors is presented below. Total amount of investment projects financing in 2015-2020 will be UAH 4,858.7 mln. 

Financing of SEAP Projects and Programs in 2015-2020 (UAH mln.)

HEAT SUPPLY

Total funding envisaged for 10 proposed projects is UAH 279.6 mln., average payback period – 2.3 years.

District heat energy supply in the city is provided by four utilities: MCU "Dnipropetrovsk Municipal Heating Networks", CU "Komenergoservis", CU "Teplotrans" and CU "Teploenergo." The total capacity of these companies is 3,128 Gcal/h, connected heat load – 2,243 Gcal/h. The heating utilities of the city operate 203 central heat substations and 1,126 boilers, at the same time, 60% of boiler houses have service life over 20 years, and 11% of boilers have efficiency coefficient less than 85%. Total length of the heating networks is 712.42 km, hot water supply networks – 563.88 km, percentage of heating systems depreciation is about 60%, 15% of them are in emergency condition. Total heat loss in the mains and distribution networks are 13%. Significant impact on the losses of energy resources in the heating utilities is caused by inefficient electrical equipment (pumping equipment, smoke exhausters and blower fans), in some cases, the potential of electricity consumption reduction is up to 70% of total consumption.

In 2015, the Ministry of Regional Development and DemoUkrainaDH Project which is funded by NEFCO have reviewed and approved the Proposal on installation of 100 individual heating units in the heating system of the left bank of Dnipro city. The project amount is € 825 th., including: loan funds from NEFCO – € 400 th.; NEFCO grant - € 300 th.; compulsory co-financing of the project from the city budget – 15%, or € 125 th. It is planned that savings of heat energy from the project implementation will amount to 32 th. Gcal/year, and CO₂ emissions reduction – 13 th. tons/year.

The USAID Project specialists conducted an energy audit and developed a pre-feasibility study (FS) of the project of gradual rehabilitation for the heating system from CHP of CU "Makarov Southern Machine-Building Plant" which envisages: implementation of energy management, modernization of the heat distribution stations, modernization of heat inlets in buildings, installation of new pumping equipment, automation of fuel combustion modes in the boilers. Total amount of investments in the basic version of the project is € 2,518 mln. The experts also suggested to consider the option of CHP modernization, which will allow to use solid waste as fuel, with substitution of conventional energy carriers, with additional cost of € 6,922 mln. It is planned to finance the project with attraction of the municipal budget funds.

The USAID Project also assisted the city in conducting energy audits and development of feasibility studies for modernization of the municipal heating systems operated by CU "Komenergoservis" (Prydniprovska CHP). The list of measures included organization of energy management at the utility and re-arrangement of heat inlets to the consumers’ buildings (installation of individual automated heat substations with possibility of weather-based control). The implementation of these measures will reduce heat consumption by 64,452 MWh. Total expected project cost is approximately UAH 125,4 mln.

The USAID project specialists assist Dnipro in developing the preliminary feasibility study for the project on installation of biomass boilers for the boiler house at 13A, Karavaieva Street. 

The projects included in the catalog of investment projects envisage reconstruction of boiler houses with replacement of boilers with energy efficient ones; adjusting the heat and hydraulic modes of the district heating systems; measures to improve efficiency in electricity consumption; modernization of the heating systems.

In case of implementation of all measures in the heat generation and transportation sector, it is possible to achieve reduction of CO₂ emissions by 64,700 t/year or 4. 53% of the baseline. Total reduction of energy consumption is expected in the amount of 22,253 th. m³ of natural gas and 17,474 MWh of electricity a year.

WATER SUPPLY AND SEWAGE

Total funding envisaged for 6 proposed projects is UAH 56.1 mln., average payback period – 20.3 years.

The water supply and sewage services to the consumers are provided in the city by CU "Dniprovodokanal." The balance sheet of this utility includes 54 pumping stations, 2,008.1 km of water supply networks and 1,275.7 km of sewerage networks. Water losses during delivery to the end users are 31%, depreciation of fixed assets of the company – 67%. Since 2008, there is a tendency to reduction in drinking water consumption by the population (by 19% in 2014 compared to 2008). Today, the annual consumption of drinking water is 176.2 m³ per person.

Investment projects in the water supply and sewage sector listed in the catalog provide for technical re-equipment of the pumping and filtering stations; overhaul and reconstruction of filters; re-equipment of the pumping stations at water treatment facilities; reconstruction of filtration grids with replacement of equipment for wastewater treatment.

In 2016, the city together with CU "Dniprovodokanal" started working on a major modernization project for Kaidatska pumping and filtering station with attraction of EIB funds. It envisages upgrade of the networks and as a result – increase in capacity of the object. According to preliminary estimates of EIB, total project cost will be € 24 mln. When the project will be developed and approved, it will be included in the new edition of the Catalog of Investment Projects.

In case of implementation of all measures in the water supply and sewage sector, it is possible to achieve reduction of CO₂ emissions by 2,467 t/year or 0.17% of the baseline. Total reduction of energy consumption is expected in the amount of 2,127 MWh of electricity a year.

OUTDOOR LIGHTING

Total funding envisaged for 2 proposed projects is UAH 561 mln., average payback period – 11 years.

CU "Misksvitlo" is in charge of the street lighting in the city, its repair and maintenance. Total number of light sources is over 65 th. units., but 32% of them are in non-operating state. The lighting system uses morally and technically obsolete types of lamps: sodium, mercury and incandescent bulbs with low efficiency and short life expectancy, large dependence on the electrical networks parameters and temperature modes. The utility operates 2,226 km of overhead networks, depreciation of which is 26%. The number of electricity meters is 463 pcs., of which 43% have differentiation by time of day. Above-norm electricity consumption is 27%.

Investment projects in the outdoor lighting sector include replacement of light sources with low luminous efficiency with the energy saving ones; modernization of the lighting systems for unsupervised pedestrian crossings.

In case of implementation of all measures in the outdoor lighting sector, it is possible to achieve reduction of CO₂ emissions by 15,595 t/year or 1.09% of the baseline. Total reduction of energy consumption is expected in the amount of 13,444 MWh of electricity a year.

PUBLIC BUILDINGS

Total funding envisaged for 2 comprehensive projects is UAH 2,234 mln., average payback period – 11.5 years.

The balance sheet of the City Council includes 513 objects of the public and social sphere, 80% of them consume heat and hot water from the district heating system. Average life of buildings is 32 years, in most public buildings there were no capital repairs carried out since their commissioning, as a result, they have above-norm energy consumption and require significant expenditures from the municipal budget for their maintenance. There is a stable tendency to growth of such expenditures connected primarily with the significant growth of tariffs for services of the energy supplying companies and lack of significant actions toward lowering of energy consumption.

Project proposals for the public buildings include: heat insulation of the building envelopes (including translucent fences), roofs and floors; installation of individual heat substations; hydraulic and thermal adjusting of the heating systems; heat insulation of the heat pipelines and heat exchangers; replacement of lamps for indoor and outdoor lighting; modernization of entrance groups with the door replacement.

The city, in partnership with the USAID Project, is finalizing the feasibility study for the project of reconstruction of boiler house in the campus of Dnipropetrovsk Railway Transport University, with installation of boilers on biofuel (straw pellets or sunflower husks) with a total installed capacity of 3 MW. The planned amount of investments in the project implementation is about € 0,61 mln. with attraction of NEFCO loan funds.

Implementation of the project proposals included in the catalog of investment projects in the sector of public buildings will reduce CO₂ emissions in atmosphere by about 40,079 t/year or 2.8% of the baseline. Total reduction in energy consumption during the year is planned in the amount of 15,656 th. m³ of natural gas and 5,000 MWh of electricity.

In 2015, the loan agreement between the city and the EBRD came into force. It refers to implementation of the first in Ukraine pilot project "Improving Energy Efficiency in Public Buildings of Dnipropetrovsk with Introduction of "Energy Performance Contracting", which is designed for 10 years. Total amount of the project is € 22.5 mln. Sources of financing include a long-term EBRD loan – € 10 mln., and a grant – € 2.5 mln. (first part). Sources of loan repayment are budgetary funds released due to reduced energy consumption by the public buildings, the work scheme is presented in the Figure. Implementation of the project in 84 public buildings will reduce total energy consumption by 35%.

RESIDENTIAL BUILDINGS

Total funding envisaged for 2 proposed projects is UAH 1,155 mln., average payback period – 11 years.

Total area of ​​the city territorial community housing stock is 21,349.1 mln. m², of which 54% are the low-rise buildings. Significant part of the communal buildings – 74% – was built before 1966 and has above-norm energy consumption. Population is the main consumer of the district heating system, its share in the overall balance of the connected consumers is 81.5%. Coverage of multi-storied housing stock with the heat meters is 16%.

The main directions of the projects in the city residential sector include: modernization of the heating systems in multi-apartment buildings, namely: installation of automatic units for heat supply, insulation of pipelines in the heating and hot water supply systems, hydraulic and thermal adjustment of the heating systems, installation of thermostatic radiator controls with presets; comprehensive thermal modernization of 52 condominium buildings, which, in addition to improving the heating system, also envisage: external wall insulation, door replacement, heat insulation of the existing metal doors, heat insulation of the roof.

Total reduction of CO₂ emissions in the residential (housing) sector in the process of heat consumption is 75,972 t/year or 5.32% of the baseline. Reduction of energy consumption is expected in the amount of 34,141 th. m³ of natural gas during the year.

TERTIARY SECTOR PUBLIC BUILDINGS

Total funding envisaged for the proposed project is UAH 34.5 mln., average payback period – 1.2 years. 

Public tertiary sector buildings are the buildings that do not belong to the housing stock and are not in the City Council balance sheet – that is, they are mostly commercial buildings. Despite significant interest of the building operators in savings of energy resources, there are some difficulties in the development of the feasibility studies for the energy efficiency projects and receipt of the permit documents for the works.

Investment projects in the tertiary buildings sector involve installation of automatic units for heat energy supply; balancing of two-pipe and one-pipe heating systems; insulation of pipelines in the heating systems, pipelines and heat exchangers in the hot water supply systems – entirely financed by the owners and operators of these buildings.

In case of implementation of the planned measures in the tertiary buildings sector, total reduction of CO₂ emissions will be 7,400 t/year or 0.52% of the baseline. Reduction of energy consumption in a year is expected in the amount of 3,700 th. m³ of natural gas.