The loan proceeds will be used to construct and operate a wind farm with a total capacity of 12.5 MW. It will consist of 5 wind turbines and is expected to generate at least 25.5 GWh every year. The project will improve the quality and reliability of power supply in the Lviv region and will secure electricity supply to more than 10,000 households. The wind farm, which will be operational by the end 2012, should bring total annual reduction in carbon emissions to about 26,000 tonnes.

This is the first project to receive funding under the EBRD’s Ukrainian Sustainable Energy Lending Facility(USELF), an investment facility of €70 million (€50 million from EBRD and €20 million from the CTF) designed to provide finance to private local enterprises wishing to invest in renewable energy projects in Ukraine. Technical assistance on projects preparation, regulatory framework development and strategic environmental review is funded by the Global Environmental Facility.   It helped the Ukrainian authorities introduce necessary regulatory changes to make renewable energy projects commercially viable and attractive for investors.

Olivier Descamps, EBRD Managing Director for Turkey, Eastern Europe, Caucasus, and Central Asia, said: “Ukraine has a great potential in developing renewable energy generation and this project is our contribution to this good cause. We are committed to support the development of wind, solar, small hydro and biomass energy projects in Ukraine through our own funds and by providing technical assistance to them”.

Maxim Kozytskyy, Eco-Optima Director, added: “We appreciate EBRD’s catalyst role in the Ukrainian renewable energy sector. Our project was made possible thanks to the USELF programme which combined both the EBRD and the CTF financing as well as consultants’ support”.

CTF was established to provide developing countries with positive incentives to adopt technologies that have a high potential for minimising long-term greenhouse gas emissions. The CTF finances programmes in 12 countries and one region.

The EBRD’s Sustainable Energy Initiative (SEI) was launched in 2006 to address the challenges of energy efficiency and climate change. In an attempt to make Ukraine more energy efficient and energy independent, the Bank has already invested €1.3 billion in 60 sustainable energy projects for the total value of almost € 6 billion.

The EBRD is the largest financial investor in Ukraine. To date, the Bank has committed over €7.4 billion (US$ 9.76 billion) through 293 projects.

Source: EBRD

The Energy and Coal Industry Ministry of Ukraine made public the draft law, envisaging a gradual increase in production and use of biofuel. In particular, since 2016, contents of bioethanol will be mandatory in gasoline at the level of 7%.

The draft law “On Making Amendments to some Laws of Ukraine for Production and Use of Motor Gasoline with Contents of Biocomponents” was published on the official website of the Energy and Coal Industry Ministry.

“A gradual increase of the normatively determined share of production and use of biofuel and composite motor fuel, in particular, contents of bioethanol in motor gasoline, produced and/or sold on the territory of Ukraine, will be as follows: in 2013 – recommended contents will be no less than 5%; in 2014-2015 – mandatory contents of no less than 5%; since 2016 – mandatory contents of no less than 7%,” the document reads.

The draft law determines that a list of enterprises, engaged in production of motor gasoline with the use of biocomponents, is determined by the Cabinet.

According to authors of the document, its adoption and realization will create favorable conditions for enhanced development of production and use of alternative types of fuel in Ukraine, progressive development of the national motor fuel market and strengthening of the country’s energy independence.

As reported earlier, Energy and Coal Industry Minister Yuriy Boiko hopes that this draft law will be adopted as soon as possible.

Source: “Ukrinform”

Modernization of heat supply systems should be held alongside with thermal modernization of buildings.

Regional Development, Construction and Housing and Communal Services Ministry Anatoliy Blyzniuk has said about this at a press conference on Thursday.

“Modernization of heat supply systems should be held alongside with holding thermal modernization of buildings, since till now national heat and energy enterprises tried, so to say, to heat a completely undressed person in the street in biting frost,” Blyzniuk has said.

According to him, a complex approach is needed: all-round installation of individual heating units, modernization of generation, use of the industry’s “free” heat, relaying and insulation of heat networks, reduction in the volumes of heat consumption at the expense of insulation of buildings. All this is only possible under condition of ensuring possibility of budget financing for social sphere objects, reimbursable budget loans and share participation of households, the minister underscored.

He also added that this year new construction norms will be introduced, which provide for the use of energy efficiency and energy saving technologies.

About UAH 160 billion is necessary for thermal modernization in Ukraine. “If it is done, it will allow economizing up to 5 billion cu m of natural gas annually,” Anatoliy Blyzniuk summed up.

Source: “Ukrinform”

The proposed project, which has a total estimated cost of EUR 18.5 million equivalent, will require the procurement of the following goods, works and services using the proceeds of the loan and the grant:

• Installation of new gas engine units for simultaneous co-generation of heat and electricity
• Installation of individual heating stations at the building level

Procurement of consultancy assignments to be financed from technical cooperation funds to provide support to the Concern with Project implementation and corporate development are also planned.

Tendering for the above contracts is expected to begin in the third quarter of 2012.

Contracts to be financed with the proceeds of the loan from the Bank will be subject to the Bank’s Procurement Policies and Rules and will be open to firms from any country. The proceeds of the Bank’s loan will not be used for the purpose of any payment to persons or entities, or for any import of goods, if such payment or import is prohibited by a decision of the United Nations Security Council taken under Chapter VII of the Charter of the United Nations or under a law of official regulation of the Purchaser’s country.

More information: EBRD

The purpose of the Project is:

1. to enable small and medium sized private and public enterprises and public sector institutions in Ukraine to implement energy saving projects;
2. to develop further effective mechanisms for implementing energy saving projects in Ukraine using private sector resources.

The Project will be carried out by Private Joint Stock Company “Ukrainian Energy Service Company” (UkrESCO the “Project Entity”), a joint stock company established under the laws of Ukraine with the Borrower’s assistance and, as part of such assistance, the Ministry of Finance of the Borrower will make available to the Project Entity the proceeds of a loan as provided in the Loan Agreement.

The goods and associated services in relation to Energy Performance Contracts shall be procured under this project:

• Goods, works and services in relation to Energy Performance Contracts.

Tendering for procurement on goods, works and services in the frameworks of the Project are expected to start in the second quarter of 2012.

Contracts to be financed with the proceeds of a loan from the Bank will be subject to the Bank’s Procurement Policies and Rules and will be open to firms from any country. The proceeds of the Bank’s loan will not be sued for the purpose of any payment to persons or entities, of any import of goods, if such payment or import is prohibited by a decision of the United Nations Security Council taken under Chapter VII of the Charter of the United Nations or under a law or official regulation of the Purchaser’s country.

More information: EBRD

This Invitation for Tenders follows the General Procurement Notice for this project which was published in Procurement Opportunities on the EBRD website 20 July 2009.

Cherkasy Municipal Enterprise of District Heating Networks “Cherkasyteplokomunenergo” (the Employer) has received a loan from The European Bank for Reconstruction and Development (the Bank) towards the cost of Cherkasy Energy Efficiency Project.

The Employer now invites sealed tenders from Contractors for the following contract “Individual Heat Substations” to be funded from part of the proceeds of the loan:

Contractor will under the Contract have to implement design, supply, installation, precommissioning and commissioning of 109 individual heat substations, also called Individual Thermal Points (ITP) including meters and auxiliary equipment, balancing of main pipes in radiator and DHW system and some electrical and civil works and train the operational personnel of the Employer.

More information: EBRD

The Cabinet proposes to raise a price for electric energy for well-to-do population strata by 50% tо 0.42 UAH/kWh since May 1.

Own source told an UKRINFORM correspondent about this.

“Prime Minister of Ukraine Mykola Azarov instructed the NERC (National Electricity Regulatory Commission, which carries out regulation in the sphere of Ukrainian energy – Ed.) and the Ministry (Energy and Coal Industry Ministry) to raise a price for electric energy for the rich by 50% since May 1,” the source has said.

He specified that this norm is planned to be introduced for those consumers, whose monthly consumption exceeds 800 kWh.

The agency’s interlocutor also noted that by preliminary calculations, an economic effect from raising tariffs for electric energy for those consumers will be about UAH 300 million.

To remind, today in Ukraine, a differentiated tariff is in effect for electric energy for households.

If the monthly volume of electric energy consumption makes up to 150 kWh, its price for consumers is set at the level of 0.2802 UAH/kWh (VAT including). In case that the consumption volume exceeds 150 kWh, a price for electric energy is set at the level of 0.3643 UAH/kWh (VAT including).

At the same time, for families with many children, foster homes and children’s homes, irrespective of the volumes of electric energy consumption, a price for electric energy is set at the level of 0.2153 UAH/kWh.

Relevant tariffs came into force since April 1, 2011.

Source: “Ukrinform”

Total greenhouse gas emission in Ukraine in 2010 increased by 5% to 383.2 million tons. These data are contained in the National Cadastre of Anthropogenic Emission for 1990-2010, developed by the Ukrainian Research Hydrometeorological Institute and the Environmental (Green) Investment Fund.

It is noted that the document has been sent to the Ministry of Environment and Natural Resources and the State Environmental Investment Agency.

“According to the results of the inventory, total greenhouse gas emission in Ukraine for the last reporting year 2010 amounted to 383.2 million tons of CO2-eq, 17.9 million tons of CO2-eq (or 5%) more compared with the previous 2009 year. Growth of emissions in 2010 was mainly due to increased production of electricity by thermal power plants, iron and steel and ammonia,” the document says.

The largest share of greenhouse gas emissions in 2010 accounted for carbon dioxide – 75%. Methane emissions made 17%, and nitrous oxide – 8%.

According to data of the State Statistics Committee, Ukrainian companies in 2010 increased the amount of polluting emissions by 4.8% to 4.1 million tons. In 2011 emission of pollutants and greenhouse gases into the atmosphere rose by 5.9% to 4.4 million tons.

“This greenhouse gas inventory included recommendations that were provided by a team of international experts after auditing the previous inventory in the autumn 2011… As of today, without exaggeration, we can say that the inventory of greenhouse gases – it is almost unique in the state comprehensive document covering objective indicators in all sectors of the economy and life of the country, which is updated annually and is available to the general public,” said Oleksiy Habatiuk, Head of Supervisory Board of the Environmental (Green) Investment Fund.

The Cadastre is to be submitted to the Secretariat of the UN Framework Convention on Climate Change until April 15, according to international rules.

Source: “Ukrinform”

The State Agency for Energy Efficiency and Conservation of Ukraine has begun work on a new portfolio of projects for 2013 within the Eastern Europe Energy Efficiency and Environment Partnership (Swedish Initiative), head of the Agency, Mykola Pashkevych told a press conference in Kyiv on Friday.

As regards the financing of these projects this year, Pashkevych noted that one of the projects has already received a loan, and the rest are under development. “This is the project for Zhytomyr. Others are under development, that is, loans are arranged and volumes specified,” Pashkevych said.

In 2012, Ukraine plans to raise about 143 million euros in the Partnership framework. The Swedish Initiative fund will provide 31 million euros, when the rest of financing will be borrowed from its partner banks. The average rate on the loans is about 4-6% in UAH depending on the project. The average payback period is 3-5 years.

The total market size of financing the projects provided by Ukraine is about 1.5 billion dollars.

Eastern Europe Energy Efficiency and Environment Partnership (Swedish Initiative) was established in November 2009. Its donors are the European Union, Sweden, Ukraine, Estonia, Finland, Latvia, Iceland, USAID, Norway and Poland. European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), Nordic Investment Bank (NIB), Nordic Environment Finance Corporation (NEFCO), the World Bank represented by the International Finance Corporation (IFC), etc. are the partner banks.

To date, Ukraine is the only recipient of the fund.

Source: “Ukrinform”

The photovoltaic plant represents Activ Solar’s fourth large-scale project in Crimea.

Activ Solar

The Austrian company installed the Mitayevo Solar Power Station system across 59 hectares of land. It is comprised of more than 134,000 polycrystalline modules, installed in double rows and connected by over 440 kilometers of cable, and is expected to generate enough energy for 8,000 households.

“This is the fourth large-scale PV project completed by Activ Solar in Crimea, where we have installed over 215 MW to date,” commented CEO, Kaveh Ertefai. “A significant portion of Crimea’s electricity generation is now produced by solar energy. Activ Solar’s present installations save around 230,000 tons of carbon emissions each year on the peninsula.”