The appendix to Chernihiv SEAP includes 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) transport;

4) outdoor lighting;

5) public buildings;

6) residenttial buildings;

7) greenery planting;

8) alternative energy, etc.

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 the maximum economic, climatic and/or social effect.

The highest impact on the reduction of СО₂ emissions is made by investment projects in the gas supply sector – 6.67%. Second place goes to the implementation of energy efficiency measures in the residential buildings sector – 4.96%. The third group of projects is in the transport sector – 4.35%. The lowest impact on reduction of СО₂ emissions is made by the lighting sector (0.08%).

To finance the Sustainable Energy Action Plan, it is proposed to use eight financial sources. A chart showing the distribution of financing by sectors is presented below (translation of the key provided afterward). The total amount of investment projects financing in 2015-2023 will be UAH
1,384.8 mln.

Financing of Chernihiv SEAP Projects and Programs in 2015-2023 (UAH mln)

 

HEAT SUPPLY

The total funding envisaged for the 21 proposed projects is UAH 334.7 mln, average payback period – 5.5 years.

The largest suppliers of heat energy and hot water supply services of the city are PJSC “Oblteplokomunenergo” and CEU “Chernihivska CHP”. The heat supplying utilities balance sheets include 112 central heat substations and 273 km of heating networks in two-pipe measurement. The total installed capacity of the heat supplying utilities in the city is 847 Gcal/h;connected capacity – 487 Gcal/h.

The USD 35 mln project for reconstructing CEU “Chernihivska CHP” heating system is now in the final phase of development. For this project, the International Bank for Reconstruction and Development (IBRD) and Clean Technology Fund (E5P) are planning to finance the improvement of the heat supply system of CEU “Chernihivska CHP” and the improvement of its efficiency. This will improve the quality of the heating and hot water supply services provided to end users. The funds may also be allocated for the installation of modern equipment, the arrangement of a loopback systemfor the district heating networks, the insulation of the main heat supplying pipelines, construction and renewal of the pumping stations, organization of the automated systems for heat supply control. These measures will allow Chernihivska CHP to achieve a significant saving of funds, ensure uninterrupted heat supply, andorganize the automated control systems suitable for the needs of every separate building.

The projects included in the catalog of investment projects envisage: the comprehensive reconstruction of boiler houses with the modernization of technical equipment and the introduction of operating and automated controls; comprehensive reconstruction of the central heat substations; optimization of natural gas consumption through the re-distribution of the heat load between the boiler houses; replacement of worn heating networks with pre-insulated pipelines.

The technical and economic estimates made in the process of SEAP development demonstrated that part of the projects, particularly those connected with the reconstruction of the district heating systems (payback period – 2-3 years, IRR – 40-60%) and boiler houses (payback period–
7-10 years, IRR – 9-17%) have good or acceptable financial indicators for the receipt of loan funds from international financial institutions.

If all measures in the heat generation and transportation sector are implemented, it is possible to reduce CO₂ emissions by 30,700 t/year or 2.38% of the baseline. Total annual reduction of energy resources consumption is expected to amount to 12.657 mln m³ of natural gas and 4,531 MWh of electricity.

WATER SUPPLY AND SEWAGE

Total funding envisaged for 17 proposed projects is UAH 96.5 mln, average payback period – 32 years.

Drinking water supply, sewage and wastewater treatment, and the operation, maintenance and repair of the water supply and sewage objects of the city is conducted by CU “Chernihivvodokanal”. The total number of well holes for water intake is 97, of which 13 are broken and require capital renovation, and 62 (63.9%) have already exceeded their technological lifespan. The total length of the pipelines is 511.3 km, of which 77.8 km (15.2%) has been in operation for more than 25 years. The incident rate for the water pipelines is 119 accidents per 100 km per year.

CU “Chernihivvodokanal” has successfully implemented an energy efficient modernizationproject (financed by the World Bank) for the amount of USD 22.8 mln, in the course of which 144 pumping stations were reconstructed (as a result– electricity consumption decreased, and the water supply and sewage systems became more reliable); water supply and sewagenetworks were laid and replaced (water quality improved as a result of the decrease of its secondary pollution, the accident rate of the water supply and sewage systems decreased). Also 29 pcs of emergency equipment and vehicles were procured (time for localization and elimination of emergency situations on the pipelines reduced); metering of resources improved due to the installation of automated control systems, etc.

To leverage the results achieved, the utility plans to implement a number of energy efficiency projects worth UAH 100 mln, including projects optimizing the underground well hole water intakes in the system of water supply and replacing water pipes, and emergency street and internal block water supply networks.

The projects included in the catalog of investment projects envisage: reconstruction or replacement of the emergency street water supply networks and construction of the additional ones; optimization of underground well hole water intakes; construction of a pumping station for pumping of industrial wastewater; technical re-equipment of the cold water metering units in the residential buildings; renewal of 400 mm and larger water supply pipes.

If all measures in the water supply and sewage sector are implemented, it is possible to reduce CO₂ emissions by 3,155 t/year or 0.24% of the baseline. The total reduction of energy consumption is expected to amount to 2,635 MWh of electricity and 7,000 m³ of natural gas per year.

GAS SUPPLY

Implementation of the proposed project does not require any additional funding.

Natural gas supply and the servicing of the gas transportation system in the city is conducted by PJSC “Chernihivgaz”. One significant problem in this sector is the low level of gas meter installation among city residents. In addition, there is a tendency of above-average gas pressure increases in the low pressure gas pipelines. This problem exists in most cities across Ukraine, and it is caused by the need to increase the conveying capacity of the outdated networks. Gas consumption by the population for household needs is almost 50% of total gas consumption by the heat supplying utilities of the city.

The project proposal suggested for the sector provides for:optimization of the operation mode of the low pressure gas distribution networks in the course of routine equipment maintenance of  the gas control units and gas supply systems, improved maintenance efficiency of the integral gas pipelines, ventilation and fume channels of the gas equipment in residential buildings (the above items are components of the works on servicing the gas networks and equipment); increased awareness and responsibility of the residents of apartments and buildings during the use of natural gas in households, creating incentives for saving when meters are available (instruction of the Cabinet of Ministers of Ukraine of 25 April 2012 “Some Issues of Ensuring Commercial Metering of Natural Gas” envisages equipping of all low pressure gas consumers with meters).

If all measures in the gas supply and sewage sector are implemented, it is possible to reduce CO₂ emissions by 86,000 t/year or 6.67% of the baseline. The total annual reduction of energy consumption is expected to amount to 44.1 mln m³ of natural gas.

 TRANSPORT

Total funding envisaged for 9 proposed projects is UAH 226.9 mln, average payback period – 6 years.

Cargo and passenger transportation in the city is conducted primarily by electric transport, buses, passenger and cargo cars and railway. Trolleybus transportation in the city is conducted by CU “Chernihiv Trolleybus Department” which has on its balance sheet 104 trolleybuses, 80 of which have been in operation from 10 to 25 years. In the last 10 years, the trolleybus rolling stock has fallen by 50 units. 229 low capacity buses are used for passenger transportation in the city, the majority of which are owned by private carriers.

With USAID support, a feasibility study was developed for a project developing municipal passenger electric transportation, including the procurement of 41 new trolleybuses for replenishment and replacement of outdated rolling stock, as well as the reconstruction of the existing trolley network. The city authorities are negotiating with EBRD to receive a loan in the amount of EUR 8 mln at 7% per annum for up to 12 years with the possibility of deferred payments for two years.

In addition, the Ministry of Infrastructure received from Chernihiv a project proposal on the improvement of municipal electric transport efficiency, which envisages the procurement of 31 trolleybuses and the reconstruction of the trolley network with the funds borrowed from the European Investment Bank under state guarantees (estimated project amount – UAH 169.5 mln). UAH 50 mln is allocated in the city budget for the procurement of trolleybuses.

Investment projects in the transport sector include: conversion of the existing buses to biodiesel; introduction of an automated transport management system; construction of additional road sections; repair of trolleybuses with the installation of an electronic control system; procurement of new trolley buses to replace the old ones; replacement of small capacity buses and trolleybuses with medium capacity ones.

If the transport sector measures are implemented, it is possible to reduce CO₂ emissions by 56,119 t/year or 4.35% of the baseline. The total reduction of energy consumption is expected to amount to 16,508 t of gasoline, 1,244 t of diesel fuel and 3,096 MWh of electricity a year.

OUTDOOR LIGHTING

Total funding envisaged for the proposed projects is UAH 9.8 mln, average payback period – 7 years.

The outdoor lighting networks are on the balance sheet of MCU "Misksvitlo" which is the only company in the city performing major, ongoing repairs and maintenance of the outdoor lighting networks. The total length of the air networks is 532 km, of cable networks – 49 km, number of electricity meters – 152 pcs The total number of street lamps involved in the outdoor lighting system of the city is 15,686 units, the share of inefficient incandescent lamps is less than 2% of the total number of light sources.

For the implementation of the energy efficiency measures in the outdoor lighting sector, the city has the Program for Energy Efficient Modernization of Outdoor Lighting Networks in 2016-2017. It is planned to replace the existing lights over two years with LED lamps including 3,341 inefficient and energy-intensive mercury lamps. The municipal budget for 2016 allocates nearly UAH 9.2 mln for the replacement of 1,880 lamps. The rest will be replaced from the grant and loan funds within the project “Energy Efficiency Improvement in School # 5 and Chernihiv Street Lighting System” in cooperation with NEFCO (project amount - EUR 670,000, of which EUR 200,000 is an E5P grant).

If the measures in the outdoor lighting sector included in the investment catalog are implemented, it is possible to reduce CO₂ emissions by 1,007 t/year or 0.08% of the baseline. The total annual reduction of energy resources consumption is expected to amount to 868 MWh of electricity.

PUBLIC BUILDINGS

Total funding envisaged for 6 proposed projects is UAH 438.9 mln, average payback period – 3.5 years.

Education establishments are the most energy intensive in the sector of public buildings (56 kindergartens, 38 secondary schools and 8 vocational schools) as they account for up to 60% of consumed energy resources, followed by health protection institutions (5 hospitals and 9 polyclinics) withup 32% of consumed energy resources. The dynamics of heat consumption by the public buildings shows that expenses for the needs of heating, ventilation and hot water supply in the sector are growing.

Project proposals on public buildings include:the installation of automated individual heat substations with the ability to control the heat supply; modernization of entrances to the buildings; replacement (if needed) and heat insulation of the heating system mains; reduction of water consumption through the installation of aerators on the water taps and restrictors on the toilet tanks; increase of the heat protection of outer walls and translucent fences, and thermal modernization of the building envelope.

Since 2010, the city has been implementing energy saving programs in the sectors of education, health protection and culture. These programs allowed the municipality to replace windows and doors with energy efficient ones, hydro-chemically treat the heating networks, organize individual heat substations (HIS), insulate building envelopes, etc. In 2012, with support of the USAID Municipal Heating Reform Project in Ukraine, energy efficient renovation was conducted in kindergarten # 71. In 2013, in cooperation with GІZ Project, a pilot project was implemented on the energy efficient reconstruction of the old building of collegium # 11, and automated control systems were installed in four buildings of city hospital # 1. In 2014, the city successfully implemented together with NEFCO the investment project “Energy Efficiency Improvement in Buildings of Chernihiv Educational Institutions”. The project included works on the partial replacement of windows, doors, incandescent lamps, and the installation of heat reflecting screens in seven educational institutions. In addition, the attic of secondary school # 9 was insulated.

The USAID Project is providing support to Chernihivin receiving a EUR 7 mln loan from the Municipal Infrastructure Development Program of Ukraine (financed by the European Investment Bank).

The city plans to implement energy efficiency measures totaling UAH 200 mln in 73 public buildings of the city, with total space over 270 th. m², including 32 secondary schools, 38 kindergartens and 3 other establishments (project payback period – about 11 years, IRR – 11%). The USAID Project finances the conducting of the energy scanning of the selected public buildings and the preparation of the pre-feasibility study for the project on the improved energy efficiency of public buildings in the city.

Implementing the project proposals in the sector of public buildings will enable the municipality to reduce CO₂ emissions into atmosphere by 19,969 t/year or 1.54% of the baseline. The total reduction of energy consumption per year is expected to amount to 53,129 MWh of heat energy, 254.1 MWh of electricity and 23,600 m³ of natural gas.

RESIDENTIAL BUILDINGS

Total funding envisaged for 7 proposed projects is UAH 258.7 mln, average payback period – 2.6 years.

The residential housing stock of the city includes1,737 multi-apartment buildings serviced by five housing management offices, and 14,293 private low-rise buildings. The average housing space per person in the city is 18.3 m²/person compared to 20.3 m²/person in Ukraine. The total heated space of the residential buildings connected to the district heating system is 3,234,781 m². Emissions of СО₂ from heat generation for the needs of district heating in the residential stock are18.2% of the total amount in the municipal sector.

Residential sector projects in the investment catalog: installation of the commercial heat energy metering units and individual heat substations with weather-based control, installation on the staircases of acoustic light switches or motion sensors; controlling water pressure in the water supply systems and the installation of aerators in the 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; capital renovation and heat insulation of the roof, improvement of the heat protection properties of the translucent and non-translucent building envelope; conversion of heat generators to alternative and renewable energy sources in low-rise private buildings.

The general reduction of CO₂ emissions in the residential (building) sector on the stage of heat consumption is 63,971 t/year or 4.96% of the baseline. The total reduction of energy resources consumption is expected to amount to 172,891 MWh of heat energy and 1.1 MWh of electricity a year.

GREENERY PLANTING

Total funding envisaged for 4 proposed projects is UAH 6.8 mln, average payback period – 1 year.

As of 2015, there were 12 forest and park zones in the city with a total area of 2,100 hawhich is 27% of total city area. The amount of green space per resident is 7 m². At the same time, only 65% of the normative amount of funds is allocated for green belt maintenance. More than half of common green areas are in unsatisfactory sanitary condition.

The catalog of investment projects includes the following measures:recovery of vegetation and works on landscape design; greenery protection fromBalkan Moth; creation of new wastewater treatment facilitiesin the recreation zone with the use of phyto-technologies; implementation of “Green Procurements” (advantage is given in the procurement process to the contractor which reduces СО₂emissions).

If all measures in the greenery planting sector are implemented, it is possible to reduce CO₂ emissions by 18,047 t/year or 1.4% of the baseline and to save energy resources in the amount of 8 MWh per year.

ALTERNATIVE ENERGY SOURCES

Total funding envisaged for 2 proposed projects is UAH 6.1 mln, average payback period – 10 years.

For a number of reasons based on economic calculations, no alternative energy sources (AES) can be used to a significant extent as substitutes for conventional energy sources. Some potential exists in the substitution of fossil fuels with alternative energy sources in the sector of low-rise private buildings, namely in the conversion of residential heating plants to heat generators operating on biomass or biofuel, but these projects do not bear any significant investment attractiveness.

For this sector, the implementation of two alternative energy demonstration projects is envisaged:outdoor lighting for the municipal park with the use of solar batteries and the use of helio-collectors for the water heating systems in kindergartens.

Implementation of the project proposals in the sector of alternative energy sources will reduce CO₂ emissions into atmosphere of 153 t/year or 0.01% of the baseline. The total annual reduction of energy consumption is expected to amount to 389 MWh of heat energy.

INFORMATION MEASURES

Total funding envisaged for 3 proposed projects is UAH 6.6 mln, average payback period – 2 years.

The investment strategy for 2015-2023 includes a separate “Targeted Program on the Implementation of Public Outreach and Organizational Measures” financed from the municipal budget and aimed, first of all, at changing the habits of residents, employees in the public sector, employees at the municipal companies, and organizations to energy efficient habits, both due to increasing their level of awareness, and by acquiring new knowledge and habits.

The proposed projects in this sector include:implementation of educational programs in secondary schools; conducting public outreach workwith city residents aimed at economic energy resources consumptionwith a special focus on energy saving issues in the private low-rise residential sector; preparation of a set of administrative and organizational measures creating incentives for the reduction of СО₂.

Implementing the project proposals in the sector of information measures will reduce CO₂ emissions into the atmosphere of 17,963 t/year or 1.39% of the baseline and a saving of energy resources in the amount of 4,754 MWh per year.