The Registry of Investment Projects (hereinafter – the Registry) was developed in order to mae available to the stakeholders’ representatives of the technical and economic characteristics of the Zaporizhzhia SEAP. The information in the Registry contains data on 17 projects in terms of municipal sectors:

1) residential buildings;

2) electricity supply;

3) electricity supply;

4) public buildings;

5) heat supply;

6) outdoor lighting; and

7) water supply and sewage, etc.

To assess the investment attractiveness of each project, different price change scenarios for energy and energy services were considered as well as the investment amounts required and economic performance indicators. Financing the Sustainable Energy Action Plan of the city is expected to involve several financial sources, including funds of international banking institutions, communal utilities, private investors etc.. The Chart of distribution of financing by sectors is presented below. The total amount of investment projects financing for the period 2015-2030 is UAH 19,054.1 mln. 

HEAT SUPPLY

The total funding envisaged for 6 proposed projects is UAH 542.8 mln., average payback period – 7.4 years.

The district heating in the city is provided by Municipal Heating Networks – up to 76% of produced heat energy, Motor Sich company, and autonomous sources. There are 65 boiler houses in the city with a total installed capacity of 2,174.9 Gcal/h, and 52 central heat substations (CHS). The heating networks in double-pipe measurement are 722.8 km long. In 2012, the total amount of energy consumption for heat supply services in the city was 3,071 Gcal, of which 2,554 Gcal was for heating and 517 Gcal for hot water supply. The municipal district heating system was constructed in the 1960-1970s. Due to professional operation, small-scale modernization and regular maintenance, the fixed assets and heating networks are in satisfactory condition, and process expenses do not exceed the norms. As a result, heat energy tariffs in the city are among the lowest in Ukraine. The primary fuel in the municipal district heating system is natural gas.

Investment projects in this sector of the Registryinclude: the modernization of heat inlets in multi-apartment buildings and public buildings on the basis of individual heat substations (IHS); converting the boilers in Shevchenkivskyi district to use alternative energy sources; converting the boilers in Komunarskyi district towaste heat from the district treatment facilities on the city’s left bank; technical re-equipment of communal boiler houses through the constructionof a modern mini-CHP; reducing electricity consumption and fuel consumption by Municipal Heating Networks by implementing energy efficiency measures.

By implementing all measures in the heat generation and supply sector, it is possible to reduce CO2 emissions by 70,400 t/year or 2.26% of the baseline. The total annual reduction of energy resources consumption is expected to amount to 17,400 th. m3 of natural gas and 32,900 MWh of electricity.

The USAID Project helped Zaporizhzhia with the development of a feasibility study for the “Construction of Sludge Utilization Unit after Mechanic Dehydration in Zaporizhzhia Left Bank District Treatment Facilities # 1” project.

In addition, the USAID Project supported the city in developing a pre-feasibility study for the project on modernizing the municipal heat supply system. This document, if the project is implemented, will enable the city to receive funds from the European Investment Bank (EIB).

On 30 June 2016, the City Council supported the participation of Municipal Heating Networksin the “Ukraine’s Municipal Infrastructure Development Program” Projectimplemented by Minregion with EIB support. It is planned to take out an EIB loan up of to €22.77 million for financing the “Comprehensive Heat Supply Project” sub-projectwhich envisages the technical re-equipment of the boilers, automated control systems, and installation and/or reconstruction of heat exchangers.


WATER SUPPLY AND SEWAGE

The total funding envisaged for the proposed project is UAH 36.9 mln., average payback period – 3.5 years.

Water supply and sewage services are provided to the city residentsby CU “Vodokanal”, and the water supply source is the Dnipro River. The established productivity of the communal water pipe system is 649,000 m3/day. 80.53 million kWh of electricity was used in 2012 for the purposes of water supply and sewage, of which 67% was for water supply and 32% for sewage. The total connected electricity load of Vodokanal is 43 MW. Amount of drinking water consumption by the city is permanently reducing. From 2002 through 2012 it halved to the level of 52.83 million m3 in 2012. This reduction was caused by equipping consumers with meters and savings because of high tariffs.

The investment project envisaged by the Registry includes theinstallation of frequency transformers on the water stations pumps and soft starters on the sewage station pumps, which will promote the reduction of electricity consumption.

If all measures in the water supply and sewage sector are implemented, it is possible to reduce CO2 emissions by 10,700 t/year or 0.34% of the baseline. The total reduction of energy resources consumption is expected to amount to 9,800 MWh of electricity per year.

On 30 June 2016, the City Council supported the participation of CU “Vodokanal” in the “Ukraine’s Municipal Infrastructure Development Program” Project. If the application is signed, the utility may receive over €48.4 million of EIB loan funds for construction and reconstruction of the water supply and sewage objects.

 

OUTDOOR LIGHTING

The total funding envisaged for the proposed project is UAH 352.7 mln., average payback period – 13.8 years.

Works on the operation, maintenance, capital renovations and regular repairs of the municipal outdoor lighting electric networks are conducted by CU “Zaporizhmisksvitlo”. As of 2013, the utility operates 40,170 outdoor lighting objects and 1,473.3 km of cable and air electric lines. The majority of outdoor lighting fixtures include DRG (arc mercury fluorescent lamps – 8,584 pcs., 21.4%) and DNaT (arc sodium tubing lamps – 28,687 pcs., 71.4%). 13.34 of GWh of electricity was consumed in 2012 for the needs of outdoor lighting, and the highest amount of electricity is used during the time of the night tariff, which is on average 86% of total consumption.

Investment projects in this sector provide for: modernizing the outdoor lighting system through the full replacement of lighting equipment with LED lamps (amount – 40,170 lighting fixtures) and construction of a solar power station with a total peak capacity of 6.05 MW to generate electricity during the day time and provide it to the electric networks of the United Energy System of Ukraine according to the “green” tariff and thus fully covering expenses for street lighting.

If all measures in the outdoor lighting sector are implemented, it is possible to reduce CO2 emissions by 15,000 t/year or 0.48% of the baseline. The total annual reduction of energy resources consumption is expected to amount to 13,700 MWh of electricity per year.

With support from the City Council, CU “Zaporizhmisksvitlo”submitted an application for participation in the “Ukraine’s Municipal Infrastructure Development Program” project. If the application is signed, the utility may take out over € 8.27million of EIB loan funds for financing of sub-project “Modernization of Outdoor Lighting Networks with LED Lights” which provides for a set of measures on reconstruction of the Zaporizhzhia outdoor lighting system.

 

ELECTRICITY SUPPLY

The total funding envisaged for 2 proposed projects is UAH 1,724.5 mln., average payback period – 6.2 years. Services on transportation and supply of electricity at regulated tariff to the consumers in the city are provided by utility “Zaporizhzhiaoblenergo”. In 2002-2012, the main consumer of electricity was industry, which accounted for an average of 80% of the general demand. Total electricity demand in 2012, including industry,was 5,919 th. MWh. In 2002-2012, the amount of electricity consumed by the city increased by 20%, mainly due to increased consumption by the population.

Investment projects of the Registry in the electricity supply sector include the construction of 52.7 MW solar power stations (for generating electricity in the amount of consumption by the municipal public buildings) and 22.6 MW solar power stations (to cover the electricity demand of public electric transport).

If all measures in the electricity supply sector are implemented, it is possible to reduce CO2 emissions by 133,200 t/year or 4.27% of the baseline. The total annual reduction of energy resources consumption is expected to amount to 122,200 MWh of electricity per year.

 

PUBLIC BUILDINGS

The total funding envisaged for 2 proposed projects is UAH 1,229.7 mln., average payback period – 8.1 years.

In 2013, there were 386 public buildings in Zaporizhzhia subordinated to the municipal budget, including: 65 Department of Culture and Arts buildings, 31 Health Protection Department buildings, 266 Department of Education, Science, Youth and Sports buildings, 8 Department of Social Protection buildings and 6 administrative buildings of the local self-government bodies. The total heated spaceis 1,136.9 th. m2, and the amount of energy resources consumed in 2012 was 184 GWh (46.7% of total consumption by the municipal public buildings). Most of the public buildings were constructed in the Soviet era; they have significant heat losses through the building envelope and require a significant amount of heat for heatingthe premises. According to data of the public building energy audits conducted, the average energy consumption for heating is170 kWh/m2 a year, which is significantly higher than the norms of DBN В.2.6.-31:2006, amendment # 1 (45-70 kWh/m2/year) and European norms (15-45 kWh/m2/year).

The investment projects in the Registry for this sector include: comprehensive thermal modernization of 361 public buildings and conversion of the heat supply sources of 275 buildings to granulated fuel and heat pumps, which will reduce heat energy demand for heating and reduce the dependence of the city on natural gas.

Implementing the project proposals in this sector will reduce CO2 emissions into the atmosphere by 38,600 t/year or 1.24% of the baseline. The total reduction of energy resources consumption is expected to amount to 28,000 m3 of natural gas per year.

The USAID Project specialists developed the preliminary feasibility study for the project on introduction of the energy service (ESCO) mechanism for attraction of investments in thermal modernization of another 60 public buildings.

On 30 June 2016, the City Council supported the participation of CU “Zaporizhzhia Energy Agency”in the   “Ukraine’s Municipal Infrastructure Development Program” project. The utility plans to take out over € 15.3million in loan funds from EIB for financing the “Comprehensive Project on Thermal Modernization of Zaporizhzhia Public Buildings” sub-project, which provides for a set of thermal modernization measures (replacement of windows with energy efficient windows, installation of insulated entrance doors, replacement of old radiators with bimetal radiators, heat insulation of outer walls, roofing, basement slabs, modernization of the indoor heating system and heat inlets of the buildings).

 

RESIDENTIAL BUILDINGS

The total funding envisaged for 2 proposed projects in the sector is UAH 13,479.9 mln., average payback period – 9 years.

In 2014,there were 4,248 multi-apartment buildingsin the city with a total space of 13,803 th. m2. The multi-apartment residential stock is dominated by two- and three-storey buildings (43%). According to an analysis of energy consumption data, the actual average specific energy consumption is 220 kWh/m2a year, of which 140 kWh/m2/yeargoes to heating, 40 kWh/m2/year– to the hot water supply, and 40 kWh/m2/year– to artificial lighting and other household needs. According to European norms, average energy consumption for heatingand hot water supply should not exceed 75 kWh/m2 a year, and electricity consumptionshould be under 30 kWh/m2 a year. Today, the actual specific energy consumption by residential sector buildings in the city significantly exceeds the recommended European norms.

The investment projects of the Registry in the residential buildings sector include: thethermal modernization of 2,418 multi-apartment residential buildings; natural gas substitution in the hot water supply systems in 590 multi-apartment residential buildingsby using the waste heat potential from ventilation systems and from solar energy.

The general reduction of CO2 emissions in the residential building sector (on the stage of heat consumption) is 407,100 t/year or 13.06% of the baseline. The total annual reduction of energy resources consumption is expected to amount to 227,000 th. m3 of natural gas.

 

SOLID WASTE

The total funding envisaged for the proposed project is UAH 1,650.0 mln., average payback period – 7.2 years.

About 250,000 t of solid waste is formed in the city territory a year. A major part of this waste is not processed and utilized properly; it is just taken out to the landfills. In addition to a significant environmental impact, waste in the landfills emits a significant amount of СО2 into the atmosphere. Therefore, its rational use will not only bring about an alternative and free energy source, but also reduce emissions of carbon dioxide. According to averaged calculations, thecalorific capacity of solid waste is 1,540 kcal/kg, so the annual energy potential of the city in this sector is 385,000 Gcal.

The investment project of the Registry in this sector includes the construction of a waste incineration cogeneration heat and power station (CHP) with 20 MW installed capacity. It would be capable of electricity and heat energy generation in a combined cycle with the use of 280,000 t of solid waste per year.

If the project in the solid waste utilization sector is implemented, it is possible to reduce CO2 emissions into atmosphere by 174,400 t/year or 5.6% of the baseline. The total reduction of energy resources consumption is expected in the amount of 9,750 m3 of natural gas per year and 160,000 MWh of electricity.

With the support of the City Council, the communal auto-transportation company Komuntransekologiia submitted an application for participation in the  “Ukraine’s Municipal Infrastructure Development Program” project. The company expects to receive a loan from EIB in the amount of almost €2.07 million for financing of the “Construction of Solid Waste Landfill # 3 and Its Operation” sub-project.