The annex to Khmelnytskyi SEAP is a Catalog of Investment Projects (hereinafter – the Catalog). Information is provided in the Catalog in terms of municipal sectors:

1) heat generation, transportation and supply;

2) residential buildings;

3) water supply and sewage;

4) transport;

5) outdoor lighting;

6) greenery planting; and

7) alternative energy.

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

The highest impact on reduction of СО₂ emissions is made by investment projects in the transport sector – 8.68%. Second place goes to the implementation of energy efficiency measures in the residential buildings sector – 8.02%. The impact of the heat supply system reconstruction will be 1.72%, and the impact made by alternative energy sources (AES) will be 1.37%. The lowest impact on the reduction of СО₂ emissions is made by  projects in the public buildings sector (0.64%).

To finance the Sustainable Energy Action Plan, the use of 8 financial sources is proposed. They include: the municipal budget, funds from communal utilities, private investors and concessioners, and city residents. It is also proposed to use non-traditional sources of project financing such as grants and patronage.

A chart showing the distribution of financing by sectors is presented below. The total amount of investment project financing in 2015-2025 will be UAH 3,207.5 mln. 

 

Financing of SEAP Projects and Programs in 2015-2025 (UAH mln.)

 

Total funding envisaged for 17 proposed projects is UAH 247.6 mln., average payback period – 3.2 years.

The biggest suppliers heat of energy and services for hot water supply to the populace as well as public and communal companies are the municipal CU “Khmelnytskteplokomunenergo” and “Pivdenno-Zahidni Teplomerezhi”. According to 2014 data, their total installed capacity is 908 Gcal/h, and the connected capacity of their boiler houses – 315 Gcal/h. The total length of the city heating networks in two-pipe measurement is 189.8 km. The heating networks are over 70% worn out. The heat supplying companies operate 58 boiler houses (with an average load level 35%), 80 central heat substations and 12 cogeneration plants.

The projects included in the catalog of investment projects provide for: modernization of the pumping equipment of the boiler houses, replacement of worn heating networks with pre-insulated pipelines, increased efficiency of the hot water supply system through de-centralization of heat sources, optimization of the heat generation sources in the transition period through the replacement of worn boilers, comprehensive automation of the existing boiler houses through burner replacement and the installation of frequency converters on electric sources.

If all measures in this sector are implemented, it is possible to reduce CO₂ emissions of 15,926 t/year or 1.72% of the baseline. The total annual reduction of energy resources consumption is expected to amount to 4.697 mln m³ of natural gas and 7,178 MWh of electricity.

WATER SUPPLY AND SEWAGE

Total funding envisaged for 7 proposed projects is UAH 985.1 mln, average payback period – 6.6 years.

“Khmelnytskvodokanal” utility operates the district water supply system with its installed capacity of 99,200. m³/day and actual capacity of 48,200 m³/day. The district water supply system and sewage system cover 81% of the city population. The total length of the water supply networks, including the distribution and inner block networks, is 531.2 km, of which 174 km are in emergency condition (32.8%). The total length of the sewage networks is 255.4 km, in emergency condition – 50.2%. 

The projects included in the catalog of investment projects provide for: conducting a technological survey and measurement of the key parameters of pumping units during the day, reconstruction of the sewage pumping stations which do not comply with the hydraulic needs of the system, reconstruction/modernization of the sewage treatment facilities, introduction of an automated control system for technological processes.

If all measures in the water supply and sewage sector are implemented, it is possible to reduce CO₂ emissions by 7,498 t/year or 0.81% of the baseline. The total annual reduction of energy resources consumption is expected to amount to 6,405 MWh of electricity.

TRANSPORT

Total funding envisaged for 11 proposed projects is UAH 764.1 mln, average payback period – 10 years.

Most of the cargo and passenger transportations in Khmelnytskyi are conducted by electric transport (trolleybuses), buses, passenger cars, cargo road and rail vehicles. Trolleybus transportation is carried out by CU "Electrotrans" which operates 114 trolleybuses, of which 47 of them need to be written off. In addition, 359 small capacity passenger city buses work on city routes, and there is a clear trend of their numbers falling. As of 2014, 54,138 private transport vehicles were registered in Khmelnytskyi.

The projects included in the catalog of investment projects are aimed at: repairing trolleybuses with the installation of an electronic system for capacity control, installation of electricity meters on the rolling stock, creating incentives for the drivers to reduce electricity consumption, replacement of the trolleybus rolling stock, replacement of class A and B buses with trolleybuses and class I buses, construction of the trolley system, power station, replacement of the traction station and the opening of new trolleybus routes, transfer of the existing buses to biodiesel fuel, introduction of an automated system for transport management, construction of a tunnel crossing, draw-ins for public transport stops, creation and development of cycling infrastructure. The priorities for transport infrastructure development are: increasing the share of environmentally clean transport, development of cycling infrastructure and the conversion to biofuel.

If all measures in the transport sector are implemented, it is possible to reduce CO₂ emissions by 80,552 t/year or 8.68% of the baseline. The total annual reduction of energy resources consumed is expected to amount to 20,951 t of gasoline, 4,469 t of diesel and 4,261 MWh of electricity.

OUTDOOR LIGHTING

Total funding envisaged for the proposed projects is UAH 70.2 mln, average payback period – 7 years.

The outdoor lighting networks of Khmelnytskyi are on the balance sheet of Khmelnytskyi CU "Misksvitlo” which is the only company in the city performing work on major, ongoing repairs and maintenance of outdoor lighting networks. Altogether, there are 11,700 light sources. “Misksvitlo” operates 457 km of aerial cable lines of outdoor lighting, 349 km of which are aerial and 108 km are cable lines. The general condition of the outdoor lighting system of Khmelnytskyi is characterized by large above-norm electricity consumption. About 70% of lighting sources in the city do not meet modern energy conservation standards.

The projects included in the catalog of investment projects are related to the modernization of the outdoor lighting in the city. Key directions of the projects in this sector include: installation of a GPS-system for outdoor lighting management, full replacement of the lighting fixtures with incandescent lamps with LED lighting fixtures with LED light sources.

If all measures in the outdoor lighting sector are implemented, it is possible to reduce CO₂ emissions by 6,988 t/year or 0.75% of the baseline. The total annual reduction of the energy resource consumed is expected to amount to 6,024 MWh of electricity.

PUBLIC BUILDINGS

Total funding envisaged for 12 proposed projects is UAH 307 mln, average payback period – 5.8 years.

Khmelnytskyi public and social sectors include educational establishments (28 schools, 11 educational complexes, 44 kindergartens, 5 out-of-school educational establishments), health protection facilities (city hospital and children’s hospital, dental polyclinic and 4 city polyclinics), cultural and tourism facilities (32 cultural facilities in communal ownership), and youth and sports facilities (16 children’s sports schools, 4 youth centers).

The SEAP catalog of investment projects offers many measures for public buildings. They include: the replacement of incandescent lamps with compact fluorescent lamps, replacement (if needed) and heat insulation of the heating system mains laid in non-heated basements, technical floors and attics, reduction of water consumption through the installation of aerators on water taps and restrictors on toilet tanks, increased heat insulation of external walls and translucent fences, and thermal modernization of the building envelope.

For the pilot project on the modernization of three kindergartens and two schools with the help of the USAID Project, a business plan was developed which successfully passed reviews by NEFCO credit committee and E5P grant committee. As a result, the city received a UAH 10 mln loan at 3% per annum with deferred payment and a UAH 5 mln grant. The project envisages the installation of  individual heat substations (IHS), replacement of the existing indoor and outdoor lighting with the energy saving (LED) lighting, heat insulation of the building facades, roof repair, window replacement and the implementation of other energy efficiency measures. The project on energy management system is in the preparation phase (see below).

The USAID Project also involved consultants for energy scanning and the preparation of the business plan on the modernization of 31 public sector buildings. It is expected that the funds will be received under the European Investment Bank loan for 22 years at 1.31% per annum, with a 5 year payment deferral, according to the loan terms approved by the Verkhovna Rada of Ukraine.

The implementation of the project proposals in this sector will reduce CO₂ emissions into the atmosphere by about 5,903 t/year or 0.64% of the baseline. The total annual reduction of the energy resources consumed is expected to amount to 22,268 MWh of heat energy.

RESIDENTIAL BUILDINGS

Total funding envisaged for 4 proposed projects is UAH 624.7 mln., average payback period – 4 years.

The residential stock of Khmelnytskyi includes 963 multi-apartment buildings serviced by housing and management offices, 245 buildings with condominiums (as of the beginning of 2015) and 16,403 private low-rise buildings.

The main areas of the clean energy projects in the housing sector of the city are: installation of commercial heat energy meters and individual heat substations with weather-based controls, installation on the staircases of acoustic light switches or motion sensors, controlling the water pressure in the water supply systems and the installation of aerators in water taps, replacement (if necessary) and heat insulation of the heating system mains laid in unheated basements, technical floors and attics, modernization of the entrances of the buildings, window replacement on the staircases, capital renovation and heat insulation of the roof, replacement of outdated electric wiring in multi-apartment buildings, conversion of heat generators to alternative and renewable energy sources in low-rise private buildings.

The total reduction of CO₂ emissions in the residential (buildings) sector in the heat consumption phase is 74,361 t/year or 8.02% of the baseline. The total annual reduction of energy resources consumption is expected to amount to 88,638 MWh of heat energy, 19.970 mln. m³ of natural gas and 7,797 MWh of electricity.

GREENERY PLANTING

Total funding envisaged for 6 proposed projects is UAH 112.6 mln.

The development of the greenery planting system of Khmelnytskyi is extremely important – there is a deficit of common use greenery in the city. There are 12 parks with a total area 112.8 ha, but there should be at least 150 ha of parks according to the norms for the current area of the city and population (common use green belt must be about 40% of the city area). Khmelnytskyi ranks 21^st city in Ukraine in terms of green area (6.8 m² per person), and this indicator has been trending downward.

The catalog of investment projects includes the following measures: recovery of vegetation in the areas of common use, reconstruction and creation of new green spaces, implementation of vertical planting and green roof projects, creation of wastewater treatment facilities in recreation and water protection zones, creation of new park areas.

In all measures in the greenery planting sector are implemented, it is possible to reduce CO₂ emissions by 8,098 t/year.

ALTERNATIVE ENERGY SOURCES (AES)

Total funding envisaged for 2 proposed projects is UAH 68.2 mln., average payback period – 4 years.

As of 2016, there are 7 boiler houses in Khmelnytskyi which generate heat energy with the use of alternative energy sources (boilers on solid fuel and solar collectors), total installed capacity – 5.37 Gcal. According to economic calculations, no other alternative energy sources can be used to a significant extent as substitution for the conventional energy sources citywide. There are a number of reasons for this, including restricted potential, low indicators of investment attractiveness.

The catalog of investment projects includes the creation of a biofuel cogeneration plant and a landfill gas utilization plant.

In 2016, with support of the USAID Project, the city started development of the investment project “Creation of Biofuel Co-Generation Plant for MCU “Pivdenno-Zahidni Teplomerezhi”. The city is actively searching for possible sources of project financing. With respect to the second project – “Complex for Collection and Utilization of Landfill Gas from Khmelnytskyi Solid Waste Landfill” – based on the results of pre-feasibility study conducted by the USAID project specialists, the optimal capacity of the generation equipment with the use of solid waste landfill decontamination was identified at 1,000 kW. The suggested modular solution for the generation units will allow the increase of the generated capacity in proportion to the number and capacity of the separate units. Later, depending on exhaustion of biogas flow from the solid waste landfill, some of the generation units can be dismantled and installed in other landfills. The project also envisages the fulfillment of works on strengthening the landfill slopes (solid waste bulk). According to the preliminary calculations, investments required for the implementation of the project are assessed at almost UAH 67.2 mln., and a simple payback period for the system of landfill gas collection and utilization is less than 3 years. In the near future, the city authorities will announce the tender to select a concessioner for the implementation of this project as public-private partnership. This will be the first such project in Ukraine implemented with the attraction of private investments. The package of documents on the concession tender was developed within the framework of the USAID Project.

The implementation of the project proposals in the alternative energy sector will reduce CO₂ emissions into the atmosphere by 12,727 t/year (1.37% of the baseline). The total annual reduction of the energy resources consumed is expected to amount to 448,000 m³ of natural gas and 10,200 MWh of electricity.

INFORMATION MEASURES

Total funding envisaged for the projects is UAH 28 mln.

Khmelnytskyi has introduced a separate strategy for 2016-2025 – “Targeted Program on the Implementation of Outreach and Organizational Measures” financed from the municipal budget and aimed, first of all, at changes in the behavior of residents, employees of public institutions, employees of companies and city organizations towards energy efficiency, both due to an increased awareness level and the acquiring of new knowledge and habits.

Key projects directions in this sector include: implementation of practical educational programs in secondary schools; conducting public outreach work with city residents aimed at economical energy resources consumption; the preparation of a set of administrative and organizational measures creating incentives for the reduction of СО₂; conducting events increasing awareness and involving the public in the solution of the environmental problems in Khmelnytskyi.

The implementation of project proposals in the information measures sector will reduce CO₂ emissions by 21,208 t/year or 2.35% of the baseline in the phase of direct consumption by the citizens of energy resources, and may be a significant value depending on the consciousness and responsibility of every consumer.