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Energy Efficiency Transformation in Astana and Almaty

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Energy Efficiency Transformation in Astana and Almaty Kazakhstan: Energy Efficiency Transformation in Astana and Almaty Public Disclosure Authorized Supported by Municipal Energy Efficiency Plan for the Public Disclosure Authorized City of ASTANA Public Disclosure Authorized Public Disclosure Authorized November 2017 Kazakhstan: Support to Energy Efficiency Transformation in Cities Acknowledgments This report represents part of a study “Energy Efficiency Transformation in Astana and Almaty”, which was financed by the World Bank’s Energy Sector Management Assistance Program (ESMAP) - a multi- donor technical assistance trust fund administered by the World Bank. The study is under Kazakhstan Energy Efficiency Project (P130013) which aims to improve energy efficiency in public and social facilities and the enabling environment for sustainable energy financing. The task team was led by Yabei Zhang and comprised Rainer Behnke, Manuela Mot, Askulu Kushanova, and Feng Liu. The work was done in close collaboration between the World Bank team and the City of Astana. The task team benefitted tremendously from discussions with key professionals from the City Administration of Astana, municipal service providers, utilities and relevant stakeholders who shared their time, experience, and resources, and would like to thank the following entities: City Administration of Astana Division of Energy Division of Education Division for Economy and Budget Planning Division for Natural Resources and Environmental Management Division of Housing and Communal Service Division for the Communal Property and State Procurement Division for Public Transport Management Municipal service providers JSC “AstanaEnergoService” JSC “Astana Teplo Transit” LLP “Аstana Energysales Company” JSC “Astanaenergysbyt” State Communal Enterprise “Astana Sy Arnasy” LLP “Astana LRT” LLP “Astana Invest” Municipal and governmental agencies JSC “Kazakhstan Center for Private-Public Partnership” LLP “Center of Expertise Projects Development Astana City “ JSC “Astana Innovations” Kazakhstan Center of Development of Housing and Communal Services under the Ministry of Investments and Development (KazCenterZhkh) JSC "Electric Power and Energy Saving Development Institute (Kazakhenergoexpertiza)" The team would also like to thank Ranjit Lamech, Sammer Shukla, Rohit Khanna for their guidance, two peer reviewers Christian Mahler and Pedzisayi Makumbe for their valuable comments, as well as Ivan Jaques, Martina Bosi, Jas Singh, Paul Vallely, and Husam Mohamed Beides for their feedbacks and inputs provided at various stages of this work. The findings, interpretations, and conclusions expressed in this report do not necessarily reflect the views and positions of the Executive Directors of the World Bank or of the Government of Kazakhstan. Exchange rate US$ 1 = KZT 222 (as of 2015) Energy consumption and expenditure in the report is for the baseline year 2015. City Energy Efficiency Plan of Astana, Kazakhstan Kazakhstan: Support to Energy Efficiency Transformation in Cities Content 1 Executive Summary 1 2 Energy Performance Assessment of the City of Astana 17 2.1 Objectives of the Study 17 2.2 Process of Energy Efficiency Diagnostics 17 2.3 Country Background 18 2.4 Astana City Background and Context 19 2.5 Energy Efficiency - Legal and Institutional Framework 20 2.6 Key Strategies with Relevance to Energy and Energy Efficiency 22 2.7 The Local Budget Framework of Astana 24 3 Municipal Energy Consumption and Sector Analysis 26 3.1 City-Wide Energy Consumption and Key Performance Indicators 26 3.2 CO2 Emission Balance 27 3.3 Energy Performance Benchmarking 29 3.4 Sector Analysis - Municipal Public Buildings 30 3.5 Sector analysis - Street Lighting 35 3.6 Sector Analysis - Power and District Heating 37 3.7 Sector Analysis - Potable Water Supply 45 3.8 Sector Analysis - Wastewater 47 3.9 Sector Analysis - Municipal Solid Waste 49 3.10 Sector Analysis - Public Transport 52 4 Prioritizing Sectors 56 4.1 Energy Expenditures as part of the Municipal Budget 56 4.2 Level of Municipal Control across Sectors 58 4.3 Municipal Energy Challenges 60 4.4 Sector Prioritization 61 5 Energy Efficiency Program 62 5.1 Intervention Strategy and Types of Measures 62 5.2 Overall Energy Saving Targets 62 5.3 Energy Efficiency Investment Program 65 5.4 Projected Program Results and Benefits 81 5.5 Economic and Financial Analysis of the Investment Measures 85 5.6 Profitability of Investment Packages and Ranking for Implementation 88 6 Implementation Plan 91 6.1 Implementation Strategy 91 6.2 Strengthening Energy Efficiency Delivery Capacity 93 6.3 Promoting Sustainable Energy Efficiency Financing 97 6.4 Program Implementation Roadmap 103 7 Annex 1: Sankey energy flow diagram for Astana city in 2015 in GWh/year 104 8 Annex 2: City-Wide Energy Consumption and Emissions 105 9 Annex 3: Sectoral Analysis of Non-Municipal Sectors 106 10 Annex 4: Municipal Energy Baseline and Development Scenario 112 11 Annex 5: Key Performance Indicators for Astana (2015) 114 12 Annex 6: Main Financing Options for Municipal Energy Efficiency 115 City Energy Efficiency Plan of Astana, Kazakhstan Kazakhstan: Support to Energy Efficiency Transformation in Cities List of Abbreviations AES Astana Energy Service (holding) IT Individual Private Transport Kazakhstan Electricity Grid Operating AOA Apartment Owners Association KEGOC Company Building Energy Management BEMS KPI Key Performance Indicator Systems CA City Administration (Akimat) KZT Kazakh Tenge Commercial Buildings/Industry CB LED Light Emitting Diode Sector CFL Compact Fluorescent Light LPG Liquid Pressed Gas Combined Heat and Power Plant CHP LRT Light Rail Transport (cogeneration) CNG Compressed Natural Gas MEA Municipal Energy Agency DH District Heating MoF Ministry of Finance DHW Domestic Hot Water MoID Ministry of Investments and Development European Bank for Reconstruction EBRD MSW Municipal Solid Waste and Development EE Energy Efficiency MW Megawatt Institute of the Electricity and EEDI PB Public (municipal) Buildings Energy Efficiency Development EERF Energy Efficiency Revolving Fund PBP (T) Payback Period (time) EL Electricity sector - Power supply PEC Primary Energy Consumption EM Energy Management PPP Public Private Partnership EPC Energy Performance Contracting PT Public Transport ESA Energy Service Agreements PV Photovoltaic - Solar power generation ESCO Energy Service Company RE (S) Renewable Energy (Sources) Energy Sector Management ESMAP REI Relative Energy Intensity Assistance Program Supervisory Control And Data Acquisition FEC Final Energy Consumption SCADA System GDP Gross Domestic Product = GRP SL Street Lighting Sector GRP Gross Regional Product SPV Special Purpose Vehicle GHG greenhouse gas emissions TA Technical Assistance GoK Government of Kazakhstan TRACE Tool for Rapid Assessment of City Energy Giga Watt Hours = Million Kilo Watt GWh TWh Terra Watthour - billion kWh Hours HDI Human Development Index VAT Value Added Tax HFO (heavy) Heating fuel oil (mazut) VSD Variable speed drive HPS High Pressure Sodium WB The World Bank International Bank for IBRD WS Water & Wastewater Reconstruction and Development IFI International Financial Institution WWTP Wastewater Treatment Plant yr year City Energy Efficiency Plan of Astana, Kazakhstan Kazakhstan: Support to Energy Efficiency Transformation in Cities 1 Executive Summary This report outlines the results and key findings of an energy efficiency (EE) study - “Energy Efficiency Transformation in Astana and Almaty” - conducted by the World Bank between November 2016 and November 2017 in Astana, using the Tool for Rapid Assessment of City Energy (TRACE 2.0). The objective of this study is to outline an urban EE strategy for the next 12 years for the city of Astana, up to 2030, by assessing the energy performance of the municipal service sectors and identifying and prioritizing EE opportunities along with a sound implementation plan. The overarching objectives of the municipal EE plan are to reduce energy consumption, diminish related expenditures from the municipal budget, and improve municipal service delivery for the city residents. The plan includes a host of qualitative targets, from reducing the Greenhouse Gas (GHG) emissions and Primary Energy Consumption (PEC), avoiding an increase in the energy bills to improving performance of local public service providers and enabling the environment to attract private investments for EE interventions. The methodology used comprises four steps, namely assessment of the energy performance, prioritization of sectors having the highest energy savings potential, and drafting and implementation of the EE plan Figure 1. Steps for preparing the EE plan ANALYSIS of energy Draft of an Outline of an Setting of performance, comprehensive EE IMPLEMENTATION PRIORITIES for EE challenges and INVESTMENT PLAN and delivery interventions potential PROGRAM mechanisms The assessment was made by benchmarking Astana against other cities with similar features (like human development index by country, climate etc.), thus allowing for a comparison of energy related key performance indicators (KPIs), and then drawing certain performance targets by sector. The team conducted interviews with the City Administration (CA) of Astana, municipal service providers and other relevant stakeholders, in addition to organizing a couple of technical workshops, to identify the sector challenges and discuss about the EE investment program and potential delivery mechanisms for the implementation of the plan. Energy Efficiency Context This EE plan
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