MUNICIPAL ENERGY REFORM PROJECT (MERP) FIFTEENTH QUARTERLY REPORT JANUARY 1 – MARCH 31, 2017
July 2017 This document was produced for review by the United States Agency for International Development (USAID). It was prepared by the USAID Municipal Energy Reform Project in Ukraine. USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT
Key to cover photos:
MUNICIPAL ENERGY REFORM PROJECT (MERP)
FIFTEENTH QUARTERLY REPORT
APRIL 1 – JUNE 30, 2017 CLEAN ENERGY IDIQ: AID-OAA-I-13-00015 Contract: AID-121-TO-13-00006
July 2017
DISCLAIMER The authors’ views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.
USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT
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TABLE OF CONTENTS
BACKGROUND ...... 1 A. SUMMARY OF PROGRESS AND ACCOMPLISHMENTS ...... 3 B. DETAILED DESCRIPTION OF PROGRESS/ ACCOMPLISHMENTS DURING THE REPORTING PERIOD ...... 13 B.1 Project Team and Procurement Actions ...... 13 B.1.1 Consulting Agreements ...... 13 B.1.2 Subcontracts ...... 13 B.1.3 Grants ...... 13 B.2 Costs ...... 13 B.3 Environmental Compliance ...... 13 B.3.1 Project Activities ...... 14 B.4 Progress and Accomplishments By Activity ...... 16 B.4.1 Activity 1: Improve CE Regulatory and Legislative Enabling Environment ...... 16 B.4.2 Activity 2: Promote Investment in CE Technologies and Applications ...... 28 B.4.3 Activity 3: Capacity Building and Dissemination ...... 41 B.4.4 Activity 4: Enhance Capacity for the GOU in LEDS ...... 41 C. DELIVERABLES ...... 46 D. SCHEDULES AND MILESTONES ...... 52 E. PROBLEMS ...... 54 F. PLANS ...... 56 F.1 Activity 1: Planned Activities in Quarter 16 ...... 56 F.1.1 Task 1.1: Developing Enabling Legislative and Policy Environment ...... 56 F.1.2 Task 1.2: Assistance to NEURC ...... 56 F.1.3 Task 1.3: Supporting Improvement of Social Safety Net for Vulnerable Population ...... 57 F.1.4 Task 1.4: Supporting EE Standards...... 57 F.1.5 Task 1.5: Public Information and Awareness ...... 57 F.2 Activity 2: Planned Activities in Quarter 16 ...... 58 F.2.1 Task 2.2: Assisting Municipalities with Planning, Preparing, and Financing for CE Projects ...... 58 F.2.2 Task 2.3: Introduction of Energy Management Systems ...... 59 F.2.3 Task 2.4: DCA Loan Guarantee ...... 59 F.2.4 Task 2.5: Support Mechanisms that Mobilize Private Sector Investment...... 59 F.2.5 Task 2.6: Preparation of Sustainable Energy Public Awareness Plan and Development of Related Materials ...... 59 F.2.6 Task 2.7: Implementing Sub-Activity 2 Tasks in Odesa Oblast and Ukrainian territories affected by the conflict with Russia ...... 60 F.3 Activity 3: Planned Activities in Quarter 15 ...... 60 F.3.1 Cross-Cutting (AntiCorruption) ...... 60
USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT III F.4 Activity 4: Planned Activities in Quarter 16 ...... 60 F.4.1 Task 4.1: Strengthening institutional capacity in planning LEDS-REDS ...... 60 F.4.3 Task 4.3: Developing Uniform Database on LEDS-REDS and Exchanging Experiences and best Practices with Other Countries Participating in EC-LEDS ...... 61 G. PERFORMANCE INDICATORS ...... 64
IV USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT LIST OF TABLES
Table 1. Consulting Agreements in Place During the Reporting PeriodError! Bookmark not defined. Table 2. Fixed-price Subcontracts (Purchase Orders) Signed During the Reporting Period ...... Error! Bookmark not defined. Table 3. Summary of Project Expenditures ...... Error! Bookmark not defined. Table 4. Status of NEURC Resolutions Prepared with MERP Assistance ...... 20 Table 5. Summary of the Current Status of SEAPs for Partner Cities ...... 28 Table 6. Summary of Information on the Projects Supported ...... 31 Table 7. Current Project Pipeline ...... 32 Table 8. Energy Audits of Public and Residential Buildings in Eastern Ukraine ...... 36 Table 9. Current Status of SECAPs Development for Odesa Oblast ...... 37 Table 10. Energy Audits of Public and Residential Buildings in Odesa Oblast ...... 38 Table 11. Establishment of Energy Management Function in Odesa Oblast and Eastern Ukrainian Cities ...... 39 Table 12. Most Important Documents and Materials Produced under MERP during Q15 of the Project ...... 46 Table 13. Q15 Milestones for Activity 1: Improve CE Regulatory and Legislative Enabling Environment ...... 52 Table 14. Q15 Milestones for Activity 2: Promote Investment in CE Technologies and Applications ...... 53 Table 15. Q15 Milestones for Activity 4: Enhance Capacity for the GOU in LEDS ...... 53 Table 16. Q16 Milestones for Activity 1: Improve CE Regulatory and Legislative Enabling Environment ...... 61 Table 17. Q16 Milestones for Activity 2: Promote Investment in CE Technologies and Applications ...... 62 Table 18. Q16 Milestones for Activity 4: Enhance Capacity for the GOU in LEDS ...... 63
USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT V ACRONYMS
AE Alternative Energy EECU Association of Energy Efficient Cities of Ukraine ARVI Aggregated Recovery Value Indicator CE Clean Energy CEAC Clean Energy Advisory Center CE RC Clean Energy Resource Center CFR U.S. Code of Federal Regulations CMU Cabinet of Ministers of Ukraine CoM Covenant of Mayors COR Contracting Officer’s Representative CPI Consumer Price Index CTF Clean Technology Fund DCA Development Credit Authority DCOP Deputy Chief of Party DH District Heating E5P Eastern Europe Energy Efficiency and Environmental Partnership EBRD European Bank for Reconstruction and Development EC-LEDS Enhanced Capacity for Low Emission Development Strategies EE Energy Efficiency EIB European Investment Bank EPC Energy Performance Contract ESCO Energy Service Company EU European Union EUR Euro (currency) GCC Global Climate Change GHG Greenhouse Gas (es) GOU Government of Ukraine HOA Homeowners Association
VI USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT IEE Initial Environmental Examination IFI International Financial Institution IHS Individual Heating Substation IRG International Resources Group KPI Key Performance Indicator KfW Kreditanstalt für Wiederaufbau kWh Kilowatt hour(s) LEDS Low Emission Development Strategies M&E Monitoring and Evaluation MERP Municipal Energy Reform Project MinEcology Ministry of Ecology and Natural Resources MinRegion Ministry of Regional Development, Construction, Housing and Communal Services MinSocPolicy Ministry of Social Policy MMP Mitigation Measures Plan MRV Monitoring, reporting and verification MTO MERP Task Order MWh Megawatt hours MW Megawatts NEEAP National Energy Efficiency Action Plan NEURC National Energy and Utility Regulatory Commission NEFCO Nordic Environment Finance Corporation NGO Nongovernmental Organization OPORA All Ukrainian Public Organization “Civic Network OPORA” PPP Public-Private Partnership PSA Public service advertisement/announcement Q Quarter RAB Regulatory Asset Base RC Resource Center RE Renewable Energy REDS Resource Efficiency Development Strategies REP Regional Energy Plan
USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT VII RSEP Regional Sustainable Energy Plan SAEE State Agency on Energy Efficiency and Energy Saving of Ukraine SEAP Sustainable Energy Action Plan SECAP Sustainable Energy and Climate Action Plan SIDA Swedish International Development Cooperation Agency SoW Scope of Work TA Technical Assistance UAH Ukrainian hryvna (currency) UNFCCC United Nations Framework Convention for Climate Change USAID United States Agency for International Development USD United States dollar (currency) VR Verkhovna Rada, Supreme Council of Ukraine WB World Bank
VIII USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT BACKGROUND
The United States Agency for International Development (USAID) Mission for Ukraine, Moldova, and Belarus and the Office of Economic Growth supports the implementation of the Municipal Energy Reform Project (MERP, or the Project) in Ukraine as described in the scope of work (SoW) and further detailed in the IRG, an Engility Company, Technical Proposal and subsequent modifications. The primary purpose of the USAID MERP is to enhance Ukraine’s energy security. Increased end-use energy efficiency (EE) combined with the increased production of clean energy (CE) in large towns and cities will reduce the consumption of conventionally produced energy in Ukraine while cutting greenhouse gas (GHG) emissions, energy expenditures, and imports. The Project has four main activities: 1. Improve the CE Regulatory and Legislative Enabling Environment 2. Promote Investment in CE Technologies and Applications 3. Capacity Building and Dissemination 4. Enhance the Capacity of the Government of Ukraine (GOU) in Low Emission Development Strategies (LEDS) The GOU is engaged in reforming the municipal energy sector and addressing the challenges identified in the GOU Program of Economic Reforms for 2020, with an emphasis on CE/EE through price signals and improving the competitiveness and reliability of municipal services. Ukraine’s energy policies are shifting to domestic resources and strengthening the energy market framework to European Union (EU) standards. The adoption and full implementation of Energy Community Treaty and Global Climate Change (GCC) Convention provisions could provide Ukraine with a competitive, transparent, and predictable market framework to attract investment and to underpin CE/EE improvements in the energy sector. The Project focuses on introducing CE/EE in cities by assisting municipalities with: Planning, preparing, and financing CE projects Introducing energy management systems Supporting the implementation of Development Credit Authority (DCA) loan guarantees Supporting mechanisms that mobilize private sector investment, performance contracts by energy services companies (ESCOs) Preparing sustainable energy public awareness plans This Quarterly Report is submitted in accordance with the contract requirements and covers the project period from April 1, 2017, through June 30, 2017. It serves as a tool for evaluating the Project’s progress and achievements and provides a summary of Project activities, accomplishments, issues, and problems encountered in implementing the activities set by the Project Work Plan. It also weighs the accomplishments in the context of the indicators set by the monitoring and evaluation (M&E) plan.
USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT 1
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2 USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT A. SUMMARY OF PROGRESS AND ACCOMPLISHMENTS
The overall objective of MERP is to enhance Ukraine’s energy security. Increased end-use EE combined with the increased production of CE in large towns and cities should reduce the consumption of conventionally produced energy while cutting GHG emissions, energy expenditures, and overall energy imports (i.e., natural gas from Russia). Under Activity 1, the Project continued supporting GOU and the Ukrainian parliament in approving key legislative and regulatory acts related to municipal energy reform. Bill on the Commercial Metering of Communal Services The Verkhovna Rada (VR), Supreme Council of Ukraine, adopted the Law of Ukraine on Commercial Metering of Utilities. The Project provided support in drafting the law and actively supported its consideration by the VR. Bill on Housing and Communal Services The VR recommended the bill on housing and communal services for the repeated second reading. The Project assisted the VR Committee on Construction, Urban Development, and Housing to prepare the bill for the repeated second reading. Bill on Energy Efficiency of Buildings The VR adopted the Law of Ukraine on Energy Efficiency of Buildings. The law was developed with Project support. National Energy Strategy until 2035 The Ministry of Energy and Coal Industry of Ukraine published the text of the draft National Energy Strategy until 2035. Before it was officially finalized, the draft was discussed and approved by the Expert Committee supported by the Project. District Heating (DH) Market Development MERP is engaged in the task of modeling DH systems. The modeling aims to assess the technical potential to integrate and optimize the existing systems, and to evaluate the costs and benefits of integration and optimization. The modelling will serve as a basis for final suggestions for third-party access. Task 1.2 Assistance to National Energy and Utility Regulatory Commission (NEURC) Capacity Building The Project revised the training plan for 2017. The updated plan envisions three training seminars to be conducted in July and four seminars in September 2017.
USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT 3 Development of Service Quality Monitoring Methodology Centralized water supply and sewage sector The Project submitted to NEURC the system for the automated monitoring of quality indicators in the water supply and sewage sector. This deliverable includes the report itself, instructions, methodology for monitoring, and a software tool. Heating sector During the reporting period, the Project continued to work on the list of indicators applicable to the heating sector and started developing reporting forms for monitoring the quality of services in this sector. Support Changes to the Assets Valuation Methodology for Natural Monopolies in the DH and Water and Wastewater Sectors The Project submitted to NEURC the “Analytical Note on an Alternative Approach to Establish RAB Value to Switch to Incentive Regulation.” The alternative approach suggests using cumulative indices, CPI, and the currency rate change to establish potential ranges of the regulatory asset base (RAB) to be expected under the coming evaluation. The alternative ranges will be used for pilot tariff estimates. Valuation of assets: Heating sector The Project participated in a coordination meeting with representatives of the State Property Fund, NEURC, DH entities from Kyiv and Chernihiv, Deloitte, Kyiv City Council, and the State Research Institute of Building Construction. The meeting resulted in agreement on a plan of action for the pilot evaluation of assets and preparation of changes to the asset valuation methodology. Based on the suggested plan of action and taking into account administrative procedures, the approval of the revised methodology under Resolution #293 is possible at the earliest by November 30. Valuation of assets: Centralized water supply and wastewater treatment sector In April 2017, the Project met with Deloitte and Kyiv Water Supply and Sewage Company (Kyivvodokanal) to discuss the plan of action for a pilot valuation of assets and other issues about incentive-based regulation in the centralized water supply and sewage sector. No decision was made about who would finance the pilot evaluation of assets. Improvement of Regulatory Reporting Forms In May 2017, new regulatory reporting forms for NEURC licensees (previously developed with Project assistance) were approved by a NEURC resolution (http://www.nerc.gov.ua/index.php?news=6053). The resolution will take effect on the day following its official publication. The Project assisted NEURC in developing the resolution, including reporting forms for the heating sector and water supply and sewage sectors, and guidelines on completing the forms. Assist NEURC in the Gradual Introduction of Incentive Tariff Regulation for Heating and Water Utilities During the reporting quarter, after a joint letter to NEURC from donors, namely USAID, World Bank (WB), and the Swedish International Development Agency (SIDA), stronger coordination by NEURC began stronger coordination of donors' activities over incentive-based regulation framework development. It was agreed that MERP will finalize the DH transportation package for adoption by NEURC, and the WB project shall work on generating the methodology and
4 USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT investment manual. There are no changes to the water and wastewater incentive-based regulatory package under development by MERP. During the reporting period, the Project assisted NEURC in developing the package of draft secondary legislation to implement incentive-based tariff regulation in the DH transport sector and water supply and wastewater treatment sectors. A total of eight draft resolutions were prepared: four resolutions for the heating sector and four resolutions for the water supply and sewage sector. NEURC published for public consultation four resolutions on incentive-based regulation in the heating sector (transportation) and one draft resolution for the water supply and wastewater treatment sector. The Project presented forthcoming incentive-based regulation in the centralized water supply and sewage sector and available IFI resources for financing investment projects by Ukrainian water and wastewater entities. The presentations were made at the International Congress and Technical Exhibition “ETEVK-2017” in the city of Chornomorsk. Development of a Mechanism to Use Benchmarking Indicators Based on an Analysis of Best International Practice Heating sector The Project conducted meetings with NEURC to discuss the clustering approach and key performance indicators (KPIs). As a result of the meetings, the Project and NEURC agreed to revise clustering indicators for thermal energy transportation and supply. It is anticipated that the first draft of the benchmarking report for the heating sector will be prepared in August 2017. Develop Methodological Recommendations on Accounting for Licensed Types of Activities Heating sector The Project submitted to NEURC the final draft of “Rules/Procedures of Accounting by Licensed Type of Activity in the District Heating Sector.” The final draft considers comments received from NEURC. Centralized water supply and sewage The Project submitted to NEURC the final draft of “Rules/Procedures of Accounting by Licensed Type of Activity in the Centralized Water Supply and Sewage Sector.” The final draft considers comments received from NEURC. Mechanisms for Considering Special Aspects in the New Tariff Model The revised report, Recommendations on Considering Special Issues about the Performance of Utility Companies in the Tariff Model considers the regulator’s comments. The report was submitted to NEURC and no other comments are expected from the regulator. Pilot Survey on Quality of Utility Services and Consumer Readiness to Pay for Utility Services The Project, at the request of NEURC, held a roundtable to present the results of the survey. NEURC staff, including the responsible Commissioner, attended the roundtable. The discussion was concluded with statements on the relevance of the survey and the need to conduct such surveys regularly in the future.
USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT 5 Task 1.3: Supporting Improvement of Social Safety Net for Vulnerable Population Develop Recommendations on the Improvement of the Housing Subsidy Program Based on the Results of Monitoring the Effectiveness of the New Subsidy Program In April 2017, the GOU adopted Resolution #300, On Amendments to Some Resolutions of the Cabinet of Ministers of Ukraine,1 which introduced changes to subsidy policies and procedures. The resolution made changes to the period for calculating the average revenue for potential subsidy recipients and the utilization of unused subsidies (cold and hot water supply and sewage), and introduced the partial monetization of saved amounts of subsidies allocated for natural gas and electricity. Inter alia, the resolution introduces the electronic exchange of data on income between public institutions. The Project assisted Ministry of Social Policy (MinSocPolicy) in the development the draft GOU resolution. Develop Recommendations on the Reform of Social Housing Norms and Norms for Consumption of Housing and Communal Services Following discussion with stakeholders, the Project submitted its final report to the MinSocPolicy, Ministry of Regional Development, Construction, Housing and Communal Services (MinRegion), and State Agency on Energy Efficiency and Energy Saving of Ukraine (SAEE). The report, Analysis of Social Norms for the Consumption of Housing and Communal Services; and Recommendations on the Improvement of the Norms, provides an in-depth analysis of existing values of social norms and develops a plan to gradually introduce nondiscriminatory technology and incentivizing-EE social norms during 2017‒2021. It contains the relevant Draft GOU Resolution and Explanatory Note. Develop Concept Paper for Transition to Monetized Targeted Assistance to Consumers of Housing and Utility Services The development of the Concept Paper for the Transition to Monetized Social Assistance is in progress. Task 1.5: Public Information and Awareness Campaign During the reporting period, MERP held the Working Group Meeting on Communications Issues, which was attended by representatives of the GOU, MinRegion, SAEE, OPORA civil network, and Association of Energy Efficient Cities of Ukraine (EECU). During the meeting, the group members discussed a concept for the new outreach phase of the USAID Project campaign, which will start in August‒September 2017. Video Public Service Announcements (PSAs) During the reporting period, the Project continued promoting video PSAs developed in cooperation with SAEE, MinRegion, and MinSocPolicy. As of June 30, the video PSA, “Save energy! Don’t burn your money!”, focused on Ukrainians’ offhand attitude to their energy consumption patterns and related expenses, was broadcast through 120 outlets including national and regional television (TV) channels, website pages of numerous municipalities, communities, and news portals across Ukraine, with the audience exceeding 17 million people. Three video PSAs featuring EE tips in a private house, an apartment, and homeowners association (HOA) were broadcast by 86 TV channels, with an audience of about 20 million people, and have been viewed by over 158,000 users of Facebook and YouTube on MERP’s and its partners’ pages.
The survey was conducted in October 2016 and survey report submitted to NEURC in February, 2017. ntrol/uk/cardnpd?docid=249953321
6 USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT All MERP video PSAs are placed on the video screens of the high-speed trains covering Ukraine. The potential audience for the PSAs in these trains reaches approximately 200,000 persons monthly. Your Home TV Program The Project completed the production of the second season of the Your Home TV program, which was broadcast by the national UA-One channel every Sunday. To date, 54 episodes of the program featured problems and best practices experienced by Ukrainians who decided to create HOAs, modernize their residential buildings, install metering equipment, and implement EE and alternative energy (AE) measures, take loans on EE projects, etc. It is currently disseminated through 35 Ukrainian regional TV channels with an audience of 4.7 million, on Facebook, with 4.1 million Facebook users and 1,055,576 views. Promotion of “Warm Loans” through Information Materials, Outdoor Posters, and Hotline MERP and SAEE updated the “Energy Saving: What to Do and Where to Get Money?” brochure, which features major EE measures in multiapartment buildings, including the insulation of the building envelope and roofing, replacement of old windows and entrance doors with energy efficient ones, etc. It also describes the conditions of the government “warm loans” program, under which individuals, HOAs, and housing cooperatives can take out loans. Billboard and city light posters, developed by the MERP team in cooperation with SAEE, continued blanketing USAID project partner cities in April through June. A series of new billboards and city lights display a variety of EE measures and savings in apartments, private houses, and condominiums. The billboards also inform the public about how to receive compensation of up to 70 percent of the cost of materials purchased under the “warm loans” state and municipal programs. Outdoor posters provide further sources of information about the campaign and EE measures in the residential sector at the USAID Project by visiting the website (www.merp.org.ua) or by calling the USAID project hotline (0-800-21-06-11). Hotline on EE/AE and “Warm Loans” Program During the reporting period, 2,638 clients were served by the hotline, launched by MERP in cooperation with Kyiv City Administration and SAEE to address the most urgent issues faced by Ukrainian communal service consumers. Educating Journalists on EE/AE and Correct Terminology MERP, in cooperation with MinRegion and SAEE, started a series of 2-day workshops for journalists entitled Key Information on Energy Efficiency in Media. The first training took place in June and was attended by 24 journalists from Ivano-Frankivsk, Khmelnytskyi, and Ternopil oblasts. In Q16, the Project will conduct five more such trainings in its partner cities. Public Outreach Materials and Events to Support EE/AE As of June 30, 2017, the Project team had disseminated 295,000 brochures and posters to raise awareness about EE/AE. A variety of informational materials were developed and/or updated and published on the MERP website. During the reporting period, the Project supported a number of outreach events at the national and municipal levels. Support to Vulnerable Population To raise awareness among low-income residents and vulnerable groups on issues related to EE/AE, tariff regulation reform, and the social safety net, the Project conducted 49 meetings and thematic seminars in the Municipal Employment Centers of MERP partner cities.
USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT 7 Under Activity 2, the Project supported partner cities with the preparation and implementation of their Sustainable Energy Action Plans (SEAPs) in compliance with the European Covenant of Mayors (CoM). As of the end of the reporting period, 14 SEAPs had been approved and implementation started (Chernihiv, Dnipro, Ivano-Frankivsk, Kherson, Kramatorsk, Lutsk, Zaporizhzhia, Khmelnytskyi, Rivne, Ternopil, Sumy, Vinnytsia, Pavlohrad and Kryvyi Rih), and another one finalized (Kyiv). EE/CE Projects Development and Support The MERP pipeline includes 86 projects (requests from the cities), including 622 active projects valued at approximately 336 million United States dollars (USD); and 5 projects for which MERP was instrumental in providing post-signing support to the European Bank for Reconstruction and Development (EBRD), WB, and the Nordic Environment Finance Corporation (NEFCO) funded activities, valued at approximately USD 73 million. As of the end of the reporting period, the Project had secured funding for eight new projects valued at USD 18.2 million. Assistance to partner cities in applying for European Commission grants under the CoM initiative During the reporting period, the Project assisted partner cities in applying for grants under the CoM initiative funded by the European Commission.3 Two concepts were prepared for projects valued at approximately USD 1.8 million. Development of the Catalogs of Investment Projects The Project finalized the translation of investment catalogs for 10 partner cities. The catalogs will be placed on the Development Experience Clearinghouse website and relevant information distributed to IFIs. CE Investment Informational Support The Project released the fourth issue of the Investment Opportunities newsletter. The issue features investment projects for USAID Project partner cities, including Kamianets-Podilsky, Khmelnytskyi, Kyiv, Sumy, and Vinnytsia. Funding Mobilized for Residential EE As a result of the joint MERP and SAEE campaign on “warm loans” promotion and other program support actions, 222,013 loans (approximate value of over USD 148.6 million), including 930 loans to HOAs, had been issued under the State Program to support residential EE.4 Task 2.3 – Introduction of Energy Management Systems The Cabinet of Ministers of Ukraine (CMU) approved the resolution, On Approval of a Plan of Implementation for Energy Management in Budget Institutions. The Project provided support for the implementation of this resolution by developing the methodology for monitoring, guidelines for energy management, limits for energy consumption, and the use of funds received from savings.
2 Nine feasibility studies were finalized during the reporting period. 3 Regional Programme in the Eastern Neighborhood in support of the Eastern Partnership Flagship Initiative on Sustainable Municipal Development. CoM Reference: EuropeAid/155713. 4 As of June 30, 2017.
8 USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT Task 2.4 – Development Credit Authority (DCA) Loan Guarantee As of the end of the reporting period, Bank Lviv had received 43 applications and issued 19 loans for a total of Ukrainian hryvna (UAH) 8.261 million, euro (EUR) 1.95 million, and USD 0.55 million (approximate total value of USD 3.008 million). During the reporting period, the bank issued one loan to a local small/medium enterprise. Task 2.5 – Support Mechanisms That Mobilize Private Sector Investment Support to ESCO Mechanisms Implementation During the reporting period, in coordination with EBRD, MERP finalized a prefeasibility study for the thermal modernization of 50 public buildings in the city of Kremenchuk. Public-Private Partnerships (PPPs) In June 2017, the city of Khmelnytskyi announced results of competition for selecting the investor for a landfill gas utilization project. The contract with the wining company is expected to be signed by the end of July 2017. The potential amount of GHG reduction is estimated at 91,914 metric tons of CO2 per year. MERP supported the Khmelnytskyi landfill gas utilization project with a feasibility study and legal documentation development. Support to HOA/CE Resource Centers (RCs) Operations During the reporting period, MERP continued to provide HOAs/CE RCs with outreach, legal, technical, economic, ecological, and other key areas of support related to EE/AE projects and the attraction of investments for their implementation in residential buildings. Thus far, MERP RC outreach efforts resulted in the following: 4,052 public outreach events on the local level (including trainings and meetings on establishing HOAs), and 13,878 initiative groups or/and individuals received consultations on legal, administrative, and technical issues. Some 3,612 new condominiums were created from the beginning of 2015 through June 30, 2017, which is about 25.4 percent of all new HOAs established in Ukraine during the same period. The Project conducted the final conference for CE HOA RCs from the first and second groups of cities in Odesa. The goal of the conference was to gather together CE HOA RCs established and operating with support of the USAID Project to discuss the activities of RCs, information campaigns on residential EE/CE, partnerships with EE materials/equipment producers, networking, best practices, etc. Task 2.6: Preparation of a Sustainable Energy Public Awareness Plan and Development of Related Materials During June, MERP supported Sustainable Energy Days in Sumy, Vinnytsia, and Zaporizhzhia by setting up information camps on the main squares of these cities. Each information camp, consisting of three booths, served as EE counselling centers for adults, clean energy scientific labs, and master classes site for children. Task 2.7: Implementing Sub-Activity 2 Tasks in Odesa Oblast and Ukrainian Territories Affected by the Conflict with Russia Energy Planning During the reporting period, the cities of Myrnohrad, Pokrovsk, and Rubizhne established advisory committees and working groups for the development of Sustainable Energy and Climate Action Plans (SECAPs). MERP conducted field visits and gathered information/questionnaires for conducting energy audits of the key infrastructure sectors.
USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT 9 Energy Audits and Specific Projects Support The Project conducted energy audits of 132 public and residential buildings for partner cities located in Luhansk and Donetsk oblasts. Support to CE HOA Advisory Centers MERP organized the introductory seminar, Organizational, Legal, Technical, and Informational Aspects of the Performance of Clean Energy and Home Owner Association Advisory Centers, for its new partner cities including Kharkiv, as well as Donetsk and Luhansk oblasts. The workshop took place in Kharkiv and was attended by 35 representatives from Bakhmut, Dobropillya, Kharkiv, Mariupol, Myrnohrad, Pokrovsk, Rubizhne, Severodonetsk, and Sloviansk. During the reporting period, MERP provided support to establish Clean Energy Advisory Centers in eastern Ukraine. New partner cities received information and consulting assistance to prepare the concept papers regarding CE advisory centers and submitted formal requests for assistance to the Project. Odesa Oblast Energy planning During the reporting period, the Project supported partner cities in Odesa Oblast with developing SECAPs. To date, two SECAPs have been approved by city councils and another five are at the final stages of development. Regional energy planning MERP conducted an introductory workshop on developing regional sustainable energy plans (RSEP) for Odesa Oblast. As a result of the workshop, it was agreed to establish sectoral working groups, and a steering committee comprising representatives from partner cities, oblast authorities, and the Project. Energy audits and specific projects support The Project conducted 99 energy audits of public and residential buildings for partner cities located in Odesa Oblast. Energy management and capacity building The Project conducted training workshops on energy management for the representatives of municipal and regional administrations of Odesa Oblast and eastern Ukraine (Luhansk and Donetsk oblasts). Following the workshop, MERP assisted with the establishment of energy management in municipalities. This included the development of energy management documentation and consultations through a web-based platform created by the School of Energy Efficiency, a nongovernmental organization (NGO) with MERP support (http://see.org.ua/ua/forum-enfo). In April and May 2017, the Project conducted two out of three training sessions in Energy Audits of Buildings for professionals representing local service providers, universities, and city administrations located in partner cities, including Dnipro, Kharkiv, Kramatorsk, Mariupol, Odesa, Zaporizhzhia, and others. In June 2017, an Energy Managers training and certification session was organized in Odesa. Sixteen trainees successfully passed the final exam and will receive the internationally recognized Certified Energy Manager TM certification.
10 USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT Under Activity 4, the Project continued supporting the GOU with LEDS. Paris Agreement Implementation: State Climate Policy Action Plan During the reporting period, MERP continued providing support to the Ministry of Ecology and Natural Resources (MinEcology) on State Climate Policy Concept implementation and developed a draft Climate Policy Concept Action Plan. The draft Action Plan outlines specific activities, policies, and measures to be implemented by the GOU, including all agencies and ministries and local authorities, to achieve low emission development and to implement Paris Agreement provisions. During the reporting period, MERP also participated in and contributed to the regular meeting of the Inter-ministerial Commission on United Nations Framework Convention for Climate Change (UNFCCC) Implementation (the Commission). During this meeting, the Minister of Ecology and Natural Resources thanked MERP for its continuous support on developing the draft action plan presented during the meeting for consideration and comments of the Commission members. Also, during the Commission meeting, the Annual National GHG Inventory Report for 1990‒2015, developed with MERP assistance, was considered and approved. Implementation of Paris Agreement Provisions: National GHG Inventory Enhancement During the reporting period, MERP continued providing support to partner cities on monitoring, reporting, and verification (MRV) of GHG emissions, and conducted MRV introductory training for Odesa oblast, municipal heating companies and representatives of Odesa Oblast Administration, and the municipalities of Odesa and Izmail.
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12 USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT B. DETAILED DESCRIPTION OF PROGRESS/ ACCOMPLISHMENTS DURING THE REPORTING PERIOD
B.1 PROJECT TEAM AND PROCUREMENT ACTIONS B.1.1 CONSULTING AGREEMENTS B.1.2 SUBCONTRACTS B.1.3 GRANTS B.2 COSTS
B.3 ENVIRONMENTAL COMPLIANCE MERP is taking steps to conform to USAID environmental regulations, 22 Code of Federal Regulations (CFR) 216. The Project incorporated environmental mitigation measures as a standard component of its program management. The Project assessed and developed a plan to meet USAID and Ukrainian environmental requirements through mitigating and monitoring environmental risks. MERP does not foresee any significant adverse environmental impacts from Project activities. This is confirmed by the Initial Environmental Examination (IEE) recommendation of “categorical exclusion” for most Project tasks and activities. “Negative determination with conditions” was defined for Project Tasks 1.2, 1.6, 2.2, 2.4, and 2.5. MERP assessed the possible environmental risks for these tasks and started implementing measures recommended by the IEE (4.3.1–4.3.4). The Project submitted to USAID the MERP Environmental Compliance Report, based on Task Order (TO) Contract ANNEX 1 – Initial Environmental Examination. The report includes the following items: Environmental Legislation Requirements, Environmental Determination, Mitigation Measures Plan (MMP), and Monitoring Plan. It is anticipated that many Project activities will not have any effect on environment and human health in Ukraine. Although some Project activities may have some effect, in most cases any
USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT 13 environmental/health effects are expected to be positive; increased EE and greater use of CE will reduce energy consumption and GHG emissions. The preliminary environmental assessment of Project activities found the potential environmental impacts and recommended environmental determination as follows: a) Categorical Exclusion: The activity is not likely to have an effect on the natural or physical environment. No further environmental review is required. b) Negative Determination with Conditions: The activity does not have potentially significant adverse environmental, health, or safety effects, but may contribute to minor impacts that can be eliminated or adequately minimized by appropriate mitigation measures. B.3.1 PROJECT ACTIVITIES Activity 1. Improve the CE Regulatory and Legislative Enabling Environment All the activities during the reporting period were assessed against the IEE and Project Monitoring Plan. It was determined that because all activities meet the definition of a categorical exclusion and per 22 CFR 216.2(c)(2)(i), (iii), (v), and (xiv), neither an IEE nor an environmental assessment is required. However, it is recommended to ensure that the principle of aiming to prevent the depletion of natural resources and deterioration of environmental components (air, water, land, and plant and animal life) is mainstreamed into the draft laws and regulations that may be developed as a result of Project activities. Activity 2. Promote Investment in CE Technologies and Applications During the reporting period, the Project developed 31 documents/sets of documents that fall under negative determination with conditions: 1. Energy audit for the district heating system of Rubizhne, Luhansk oblasts; 2. Energy audit for the district heating system of Odesa; 3. Energy audit reports for 14 public and residential buildings in Yuzhne City; 4. Prefeasibility study for the modernization of the sewage pumping station KNS-1 and KNS-2 in Yuzhne City; 5. Prefeasibility study on the replacement of network pumps and reconstruction of the automated control system for the boiler house of district heating in Yuzhne City; 6. Energy audit for the heating systems of the utility company KP "Dobro" of Dobropillya; 7. Energy audit reports for 20 residential buildings in Ivano-Frankivsk; 8. Final report on the preparation of prefeasibility study for EE improvement in 44 public buildings in Ivano-Frankivsk; 9. Prefeasibility study for implementation of EE measures and increased energy efficiency of 50 public buildings in Kremenchuk; 10. SECAP extended until 2020 for Chornomorsk City; 11. Report on energy audits with recommendations for EE measures, renewable energy sources and investment projects for the SEAP of Balta City; 12. Energy audit reports of 13 public and residential buildings in Balta City; 13. Energy audit reports of 19 public and residential buildings in Bakhmut City;
14 USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT 14. Energy audit report of the "Bilhorod-Dnistrovskteploenergo" utility company, City of Bilhorod-Dnistrovskyi; 15. Energy audit reports of 15 public and residential buildings in Bilhorod-Dnistrovskyi City; 16. Energy audit reports of 14 public and residential buildings in Dobropillya City; 17. Energy audit reports of 12 public and residential buildings in Izmail City; 18. Energy audit report for secondary specialized school No. 68, Dozvilna str, 3, Lviv; 19. Energy audit report, Reconstruction of a Building for Social Housing in Lyubashevka, Odesa Oblast; 20. Prefeasibility study on implementation of the project, Improving the Energy Efficiency of Buildings in the Budget Sphere of Mariupol City; 21. Prefeasibility study on the reconstruction of the heat supply system of utility company KPP "Mariupolteplomerezha" of Mariupol City; 22. Energy audit reports of 40 public buildings in Mariupol city; 23. Reports on energy audits of 12 public buildings of the City of Myrnohrad; 24. Energy audit reports of 17 public and residential buildings in Reni City; 25. Energy audit reports of 17 public and residential buildings in Rubizhne City; 26. Energy audit reports of 12 public and residential buildings in Severodonetsk City; 27. Energy audit reports of 24 public and residential buildings in Slavyansk City; 28. Reports on the results of energy audits of school buildings for representatives of 16 general educational institutions of MERP partner cities, which won the competition for reducing electricity consumption; 29. Energy audit of the utility company KP “Mariupolske VU VKG” of Mariupol City; 30. SECAP for Reni City until 2030; 31. Prefeasibility study of energy saving and EE measures in 40 public buildings of Zaporizhzhia City. No adverse environmental impact is likely, although, according to 4.3.5 of IEE, it is recommended to encourage the assisted municipalities to integrate environmental and/or health considerations into the project/plans to mitigate adverse effects on the local environment. According to the Project MMP and the Sustainable Energy Action Plan (SEAP, SECAP), projects involving the construction of new energy supply/heating facilities or upgrade of existing facilities should undergo the national environmental assessment process, including the preparation of an environmental impact assessment in line with DBN A.2.2-1-2003. Feasibility studies shall include an Air and Environment Protection section. Following Project recommendations, an environmental impact assessment section has been introduced into all feasibility studies so that during project implementation all the available and applicable environmental protection measures for reducing negative environmental impacts would be taken into consideration. The rest of the activities were assessed against the IEE and Project Monitoring Plan. It was determined that all activities meet the definition of a categorical exclusion and per 22 CFR 216.2(c)(2)(i), (iii), (v), and (xiv), neither an IEE nor an environmental assessment is required.
USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT 15 Activity 3. Capacity Building and Dissemination There were no activities conducted during the reporting period. Activity 4. Enhance Capacity for the GOU in LEDS All activities conducted during the reporting period were assessed against the IEE and Project Monitoring Plan. It was determined that as all activities (except for one) meet the definition of a categorical exclusion and per 22 CFR 216.2(c)(2)(i), (iii), (v), and (xiv), neither an IEE nor an environmental assessment is required. However, it is recommended to ensure that the principle aimed at preventing the depletion of natural resources and the deterioration of environmental components (air, water, land, and plant and animal life) is mainstreamed into the draft laws and regulations that may be developed as a result of Project activities. The conclusions are that USAID MERP complies with Ukrainian and contract requirements on all implemented activities, and the MMP and Monitoring Plan are up to date and compliant with all requirements. The Project regularly monitors its activities for compliance with environmental regulations. B.4 PROGRESS AND ACCOMPLISHMENTS BY ACTIVITY B.4.1 ACTIVITY 1: IMPROVE CE REGULATORY AND LEGISLATIVE ENABLING ENVIRONMENT B.4.1.1 Task 1.1: Developing an Enabling Legislative and Policy Environment During the reporting period, MERP continued supporting GOU in developing CE policies, legislation, and regulations. The assistance is based on EU Energy Community requirements and best international practice. In particular, MERP supported the development and/or approval process for the following: Law on the Commercial Metering of Communal Services (reg. #4901) Law on Housing and Communal Services (reg. #1581-D) Law on Energy Efficiency of Buildings (reg. #4941-D) National Energy Strategy until 2035 Law on Commercial Metering of Communal Services On June 22, 2017, the VR adopted the Law of Ukraine on Commercial Metering of Utilities. The law determines the grounds for providing commercial metering for heat energy services, hot water supply, and centralized water supply, and providing appropriate metering information for consumers of such services. The law also envisions equipping buildings with commercial accounting means and engineering systems equipment to ensure such accounting is carried out in accordance with the design documentation, construction norms, and regulations. The law prohibits the connection of residential and nonresidential buildings to external engineering networks without equipping such buildings with the means of commercial accounting. The Project provided support in drafting the law and actively supported its consideration by the VR. Law on Housing and Communal Services On May 16, 2017, the VR recommended the bill on housing and communal services for a repeated second reading. The Project assisted the Committee on Construction, Urban Development and Housing of the VR with preparing the bill for the second reading. At the time the quarterly report was prepared, the bill had not been considered by the VR.
16 USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT Law on EE of Buildings On June 22, 2017, the VR adopted the Law of Ukraine on Energy Efficiency of Buildings. The law defines the legal, socioeconomic, and organizational principles for activities in the field of EE of buildings and aims at reducing energy consumption in buildings. The law establishes minimum requirements for the EE of buildings, provides mechanisms for raising funds for the implementation of energy-efficient measures, and guarantees the financing of measures to improve the EE of buildings (Energy Efficiency Fund). The law was developed with USAID Municipal Energy Reform Project support. National Energy Strategy until 2035 On May 31, the Ministry of Energy and Coal Industry of Ukraine published the text of the draft National Energy Strategy until 2035 and announced that the strategy is to be adopted by the end of June. Earlier in May, the draft Energy Strategy until 2035 was approved by the Steering Committee under the Cabinet of Ministers of Ukraine, chaired by Deputy Prime Minister Volodymyr Kistion. Before reaching the final phase, the draft strategy had gone through discussions and approval by the Expert Committee supported by the Project. DH Market Development Following the adoption of the law on heat supply, which incentivizes thermal energy production from biofuels, and continuing efforts over the development of a framework for Third Party Access in DH, MERP engaged in the task of the modeling of real DH systems. The modelling effort aims to assess the technical potential to integrate and optimize the existing systems, and to evaluate costs and benefits of integration and optimization. The modelling will serve as the basis for final suggestions for the third-party access framework under development. During the quarter, the cities of Zaporizhzhia and Vinnytsia were selected for the modeling, initial meetings were conducted to present the concept to the cities' representatives, the SoW was established for the technical-economic modeling, data collection was started by the cities' heat network operators, and GIS software providers were consulted regarding their systems' characteristics. Advocacy Campaign to Support Legal and Regulatory Changes To support the approval process for the key legal acts, the Project conducted an extensive advocacy campaign. Specific activities included the following: Participating in working groups of the VR Holding a series of talks with representatives of the Cabinet of Ministers of Ukraine (CMU) and Members of Parliament Advocating the need for adoption through media events and various communication activities B.4.1.2 Task 1.2: Assistance to NEURC Capacity Building Some regulatory acts had not been adopted by NEURC, and the Project revised the training plan for 2017. The new plan envisions three seminars to be conducted in July and four seminars in September 2017. Development of Service Quality Monitoring Methodology Centralized water supply and sewage sector In April 2017, the system for the automated monitoring of quality indicators in water supply and sewage sector was submitted to NEURC. This deliverable includes the report itself, instructions
USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT 17 for NEURC (explanatory note), instructions for licensed entities (user’s manual), the methodology of monitoring, and the software tool (Excel-based software application). In May 2017, NEURC provided comments, and stated that the tools could be used for the analysis of quality indicators in the area of centralized water supply and sewage, following approval of the reporting forms (NEURC Resolution #2265). Heating sector During the reporting period, the Project continued to work on the list of indicators applicable to the heating sector and started the development of reporting forms for monitoring of the quality of services in the heating sector. In April 2017, the Project submitted to NEURC the report on the list of service quality indicators for heating services. In May 2017, the Project received comments from NEURC. In the letter, NEURC expressed appreciation for USAID Project assistance regarding development of the list of service quality indicators, but emphasized that the list should be revised and further developed. NEURC’s Strategic Planning and Development Department prepared the comments, which included both technical and methodological points. The Project will conduct meetings to discuss these comments in detail. Support Changes to the Asset Valuation Methodology for Natural Monopolies in the DH and Water and Wastewater Sectors During the reporting period, the Project did not work on changes to the asset valuation methodology. Further work is “on standby” until aggregated recovery value indicators (ARVI) are developed and proposed changes are tested. ARVI development and testing of the proposed changes, a pilot valuation of assets of companies, is required. The Project submitted to NEURC an Analytical Note on an Alternative Approach to Establishing the RAB Value to Switch to Incentive Regulation. The alternative approach suggests using cumulative indices, CPI, and the currency rate change, to establish potential ranges of RAB to be expected by the coming evaluation. The alternative ranges will be used for pilot tariff estimates. The alternative suggestion does not undermine, in any way, earlier USAID project deliverables on RAB revaluation (via Methodology #293 of State Property Fund), but rather enables the entire process be expedited and to conduct work with pilot estimates of incentive- based tariffs and work with finalizing the draft amendment of #293 in parallel. The approaches presented in the analytical note were used by the Project in determining the regulatory base of assets during the test calculation of incentive-based tariffs for thermal energy transportation for Chernihiv Heating Company in June 2017. Valuation of assets: Heating sector In April 2017, the Project participated in a coordination meeting with representatives of State Property Fund, NEURC, DH entities from Kyiv and Chernihiv, Deloitte, Kyiv City Council, and the State Research Institute of Building Construction. The discussion focused on the revaluation
5 The resolution, On approval of NEURC reporting forms #13-water supply (quarterly) Report on Indicators of Reliability of Water Supply and Quality of Potable Water and #14-water supply/sewage (quarterly) Report on Indicators of Commercial Quality of Provision of Centralized Water Supply and (or) Sewage and guidelines on completing the forms, was adopted in February 2017 but has not taken effect.
18 USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT of DH assets for incentive-based tariff introduction and the amendment of the Resolution #293 timeline. As a result of the meeting, the plan of action on a pilot valuation of assets and preparation of changes to the asset valuation methodology was discussed and agreed upon. Based on the suggested plan of action and taking into account the administrative procedures, the approval of revised methodology under Resolution #293 is possible at the earliest by November 30. Having all parties involved in coordination and open discussion on proceeding with this complex action is a positive development, and increases the chances of adoption of Amendment #293. The latter is a mandatory prerequisite for the turn to incentive-based regulation. in April 2017, given the lack of progress regarding the financing of asset evaluations from the side of the WB, NEURC started negotiations with companies that are willing to adopt incentive- based regulation and who are ready to finance pilot evaluation of assets from their own budgets. These are the DH companies of Kyiv, Mariupol, and Chernihiv. Valuation of assets: Centralized water supply and wastewater treatment sector In April 2017, the Project met with Deloitte and Kyiv Water Supply and Sewage Company “Kyivvodokanal” to discuss the plan of action for a pilot evaluation of assets and other issues about incentive-based regulation in the centralized water supply and sewage sector. As of the date of this report, no decision had been made about who would finance the pilot evaluation of assets. Improvement of Regulatory Reporting Forms In May 2017, new regulatory reporting forms for NEURC licensees (previously developed with assistance from the USAID Project) were approved by NEURC resolution (http://www.nerc.gov.ua/index.php?news=6053). The resolution will take effect on the day following its official publication in the government newspaper, Uriadovyi Kurier. The Project assisted NEURC in developing the resolution, including the reporting forms for the heating and water supply and sewage sectors, and guidelines for completing the forms. In Q16, the Project will develop reporting forms for licensees transitioning to incentive-based regulation. Assist NEURC in the Gradual Introduction of Incentive Tariff Regulation for Heating and Water Utilities During the reporting quarter, after NEURC received a joint letter from USAID, WB, and SIDA, NEURC began efforts at stronger coordination of donors' activities on incentive-based regulation framework development. The final phase of coordination—the meeting of both projects with mandated NEURC officials—resulted with a NEURC letter to donors declaring the division of work due to both projects. It envisions that MERP will finalize the DH transportation package for adoption by NEURC, and the WB project shall work on generation methodology and the investment manual. There are no changes regarding the water and wastewater incentive-based regulatory package under development by MERP. During the reporting period, the Project assisted NEURC in developing the package of draft secondary legislation to implement incentive-based tariff regulation in the DH transportation and water supply and wastewater treatment sectors. In addition to NEURC draft resolutions on the approval of tariff formation rules for incentive-based tariffs, the Project assisted in developing draft resolutions on the approval of the tariff-setting procedure, rules for determining the regulatory base of assets, and rules for determining the regulatory rate of return. A total of eight draft resolutions were prepared: four resolutions for the heating sector and four resolutions for the water supply and sewage sector.
USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT 19 In June 2017, NEURC published for public consultation four resolutions on incentive-based regulation in the heating sector (transportation). Following the consideration of comments and proposals (expected in July 2017), final versions of the resolutions will be prepared for consideration by NEURC. Out of four draft resolutions prepared for the water supply and wastewater treatment sector, one resolution was published on NEURC’s website for public consultation. This is the draft resolution on the regulatory rate of return. It is anticipated that other draft resolutions will be published in July 2017. To support the approval process of NEURC resolutions, the Project started a test calculation of tariffs for Chernihiv Heating Company. It is expected that the test calculation of tariffs will be completed in July 2017. A test calculation of tariffs for the centralized water supply and sewage sector will start in July 2017. Details on the consideration and publications of the resolutions are provided in Table 4 below.
Table 4. Status of NEURC Resolutions Prepared with MERP Assistance
# Resolution Status/Comments
Heat energy transportation
On approval of the Tariff Formation Procedure for Considered by NEURC on May 30, 2017, incentive-based tariffs for heat energy 1 published on NEURC’s website on June 2, transportation by main and local (distribution) 2017. heating networks
On approval of the Procedure for determining the regulatory base of assets of subjects of natural Considered by NEURC on May 30, 2017, monopolies carrying out (or intending to carry 2 published on NEURC’s website on June 2, out) economic activities on heat energy 2017. transportation by main and local (distribution) heating networks Considered by NEURC on May 30, 2017, published on NEURC’s website on June 2, On setting the regulatory rate of return of 2017. subjects carrying out (intending to carry out) heat In the Project’s version, the regulatory rate 3 energy transportation by main and local of return was developed as a weighted (distribution) heating networks (without stating average cost capital formula. In the version the size of the rate of return) discussed at the NEURC meeting, the rate of return was set at 12.5%. On approval of the Procedure for the setting of Considered by NEURC May 30, 2017, 4 incentive-based tariffs (heat energy published on NEURC’s website on June 2, transportation) 2017.
Centralized water supply and sewage
On approval of the Tariff Formation Procedure for 1 incentive-based tariffs for centralized water Considered by NEURC May 30, 2017. supply and sewage
20 USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT Table 4. Status of NEURC Resolutions Prepared with MERP Assistance
# Resolution Status/Comments Considered by NEURC May 30, 2017, published on NEURC’s website on June 14, On setting the regulatory rate of return of 2017. subjects carrying out (intending to carry out) In the Project’s version, the regulatory rate 2 centralized water supply and sewage (without of return was developed as a weighted stating the size of the rate of return) average cost capital formula. In the version
discussed at the NEURC meeting, rate of return was set at 12.5%. On approval of the Procedure for determining the regulatory base of assets of subjects of natural 3 monopolies carrying out (intending to carry out) Considered by NEURC on June 15, 2017. economic activities on centralized water supply and sewage
On approval of the Procedure for the setting of 4 Considered by NEURC on June 15, 2017. incentive-based tariffs (on water supply/sewage)
To develop the framework for incentive-based regulation, the Project conducted meetings with NEURC and licensees (Kyiv, Lviv, Kharkiv, Poltava, Vinnytsia and Chernihiv heating companies) to discuss the proposed concept and approaches for connections to DH systems. The discussions focused on: (a) provisions of effective normative legal documents; (b) subjects of connection; (c) the improvement of the norms and regulations currently in effect; (d) criteria for determining “standard connection”; (e) financing a “nonstandard” connection; (f) connection- related problems of heat energy producers; and (j) the need for amendments to current legislation. Due to NEURC’s extensive work on draft resolutions for incentive-based regulation, the development of the Rules will recommence at the end of July 2017. In June 2017, the Project presented forthcoming incentive-based regulation in the centralized water supply and sewage sector and available IFI resources for financing investment projects by Ukrainian water and wastewater entities. The presentations were made at the International Congress and Technical Exhibition “ETEVK-2017” in the city of Chornomorsk, which was attended by MinRegion Deputy Minister Mr. Eduard Kruglyak, National Deputy Ms. Alyona Babak, Kyiv utility company “Kyivvodokanal”, and other water supply and sewage entities, sectorial associations, and others. Development of a Mechanism to Use Benchmarking Indicators Based on an Analysis of Best International Practice Heating sector In April 2017, the Project received a letter with comments from NEURC on the report, Recommendations on the List of Key Performance Indicators in the Heating Sector and on Initial Data to Calculate the Indicators. NEURC accepted the approach to benchmarking based on KPIs proposed by the Project. At the same time, NEURC recommended revising the report to focus on international benchmarking practices as a whole and on thermal energy transportation in particular.
USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT 21 During the revision, it was agreed that the changes proposed by NEURC are acceptable. The NEURC provided the Project with regulatory reporting forms for 2014‒2016 and sent several data clarification inquiries to NEURC. The Project conducted meetings with NEURC to discuss the clustering approach and KPIs. As a result of the meetings, the Project and NEURC agreed to revise the clustering indicators for thermal energy transportation and supply. In June 2017, the Project tested clustering and KPIs. It is anticipated that the first draft of the benchmarking report for the heating sector will be prepared in August 2017. Develop Methodological Recommendations on Accounting for Licensed Types of Activities Heating sector In May 2017, the Project submitted to NEURC the final draft of Rules/Procedures of Accounting by Licensed Type of Activity in District Heating Sector. The final draft takes into account comments received from NEURC, and requests for accounting separation into: (1) production of thermal energy (four business units, including purchased thermal energy); (2) transport of thermal energy (three business units); (3) supply of thermal energy (single business unit); (4) other licensed activities except the ones above; (5) nonlicensed activities (two business units, communal services priced by NEURC); and (6) nonlicensed activities (three business units, including balancing, issue of technical conditions, and connection to network). The draft Rules/Procedures include reporting on separate accounts. Centralized water supply and sewage In June 2017, the Project submitted to NEURC the final draft of the Rules/Procedures of Accounting by Licensed Type of Activity in the Centralized Water Supply and Sewage Sector. The final draft incorporates comments received from NEURC, and requests for accounting separation into: (1) licensed, drinking water supply (production, transportation, supply); (2) licensed, sewage (collection, transportation, purification); (3) other licensed activities except the ones above; (4) nonlicensed activities in communal areas; and (5) nonlicensed activities, other. The draft Rules/Procedures include reporting on separate accounts. During the reporting period, the Project also started the revision of Procedure/Rules for accounting for licensed type of activity in the heating sector and Procedure/Rules for accounting by licensed type of activity in the centralized water supply and sewage sector for reflecting the accounting specificities at the companies that will transition to incentive-based regulation. Mechanisms for Considering Special Aspects in the New Tariff Model In May 2017, the Project received comments by NEURC in the report, Recommendations on Considering Special Issues About Performance of Utility Companies in the Tariff Model. In the letter, NEURC agreed that the issues raised in the report are important and that the Project’s proposals could be used by NEURC in its regulatory activities. However, the comments also stated that some parts of the issues raised are already regulated by NEURC’s normative acts and some require clarification. The revised report addressing NEURC comments was submitted to the regulator in June 2017. No other comments are expected from the Regulator.
22 USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT Pilot Survey on Quality of Utility Services and Consumer Readiness to Pay for Utility Services The Project, at the request of NEURC, held a roundtable to present the results of the survey.6 NEURC staff, including the Commissioner responsible, attended the roundtable. The discussion was concluded with statements on the relevance of the survey and the need to conduct such surveys regularly in the future. B.4.1.3 Task 1.3: Supporting Improvement of the Social Safety Net for the Vulnerable Develop Recommendations on the Improvement of the Housing Subsidy Program Based on the Results of Monitoring the Effectiveness of the New Subsidy Program In April 2017, the GOU adopted Resolution #300 on Amendments to Some Resolutions of the Cabinet of Ministers of Ukraine,7 which introduced changes to subsidy policies and procedures. The changes are expected to have an impact on subsidy amounts and the number of subsidy recipients. The most essential changes that will have an impact on subsidy amounts and number of subsidy recipients are as follows: The period for calculating the average revenue for potential subsidy recipients changed: the subsidy is allocated based on the average monthly income gained during the four quarters preceding the month that, in its turn, precedes the month, starting from which the subsidy is allocated (in the past, the subsidy was allocated based on the average income gained during the previous year). Unused amounts of subsidies provided for cold and hot water supply and sewage should be returned to the budget after the end of the subsidy period. The part of unused subsidies8 provided for the payment for natural gas and electricity for individual heating will be transferred to the subsidy recipient’s bank account—partial monetization of saved amounts of subsidies. Inter alia, the resolution introduces the electronic exchange of data on income between public institutions. The final text of the GOU resolution does not include some of the suggestions for increasing targeting accuracy and the effectiveness of the subsidy program and included in the draft GOU resolution the version by MinSocPolicy and submitted to the Cabinet of Ministers. The Project assisted MinSocPolicy in developing the draft GOU resolution. Develop Recommendations on the Reform of Social Housing Norms and Norms for Consumption of Housing and Communal Services During April 2017, the Project held several meetings with the Ministry of Social Policy, Ministry of Regional Development, and SAEE to discuss the recommendations on improving the social norms presented in the draft report, Analysis of Social Norms for Consumption of Housing and Communal services: Recommendations on the Improvement of the Norms. The meetings focused on: impact of social norms on stimulating energy saving;
6 The survey was conducted in October 2016 and survey report submitted to NEURC in February 2017. 7 http://www.kmu.gov.ua/control/uk/cardnpd?docid=249953321. 8 Equivalent not exceeding the cost of 100 cubic meters (m3) of natural gas or 150 kilowatt hours (kWh) of electric energy (when natural gas/electric energy is used for individual heating).
USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT 23 assessment of the impact of the changing cost of the subsidy program on the budget; and risks resulting from the implementation of balanced social norms—consumers may refuse to use centralized hot water supply if norms for the consumption of electricity for warming water will increase. In April 2017, the Project held a roundtable on the reform of social norms for consumption of housing and utility services: Stimulating energy efficiency in households receiving subsidies. The Project gave a presentation on the results of the analysis of social norms on housing and utility services and USAID Project recommendations on improving the norms. The roundtable was attended by representatives of MinRegion, MinSocPolicy, SAEE, NEURC, and USAID. The discussion with officials proved once more, that: (a) social norms are an element in a highly complex system of social assistance and state management of communal and national energy, (b) changing social norms would require additional wider measures to be implemented in parallel, and (c) the amendment of social norms is needed. Based on the roundtable results, the report was revised in the light of the comments received from the relevant institutions. In June 2017, the report was submitted to the Ministry of Social Policy, MinRegion and SAEE. The report provides an in-depth analysis of the existing values of social norms and develops a plan to gradually introduce nondiscriminatory technology and incentivizing-EE social norms during 2017‒2021. It contains the relevant Draft GOU Resolution and Explanatory Note. Develop Concept Paper for Transition to Monetized Targeted Assistance to Consumers of Housing and Utility Services The development of the Concept Paper for the Transition to Monetized Social Assistance is in progress. During the reporting period, the Project finalized the first draft of the paper. Other Activities MERP, through a campaign conducted in social media, online (www.zhytlo.in.ua) and through participation in public events, provided information regarding changes in the provision of public housing subsidies and advocated the monetization of subsidies as a method to bring recipients of subsidies more in line with an energy-efficient lifestyle. B.4.1.4 Task 1.4: Supporting EE Standards MERP continued assisting the GOU in the development of the following: National Standard, Rules for the Energy Labelling of Translucent Building Envelope Structures National Standard, Rules for the Energy Labelling of Façade Systems National Standard, Instruction on the Energy Labelling of Construction Heat Insulation Materials and Products B.4.1.5 Task 1.5: Public Information and Awareness Campaign During the reporting period, MERP held the Working Group Meeting on Communications issues, attended by the representatives of the Government of Ukraine, MinRegion, SAEE, OPORA civil network, and EECU. During the meeting, the group members discussed a concept for the new outreach phase of the USAID Project campaign that will start in August‒September 2017. This time, the campaign will educate consumers of communal services about their rights and possibilities for the implementation of EE/AE measures, installation of metering equipment,
24 USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT verification of energy consumption, and use of “warm loan” programs. The campaign will promote among Ukrainians the importance to take personal responsibility for the appropriate actions that will help achieve the comfort desired in their dwellings and savings in their energy bills. The plan is to produce at least four PSAs for placement on national and regional TV channels and an equal number of billboard posters for placement in Project partner cities. Video PSAs During the reporting period, the Project continued promoting video PSAs developed in cooperation with SAEE, MinRegion and Ministry of Social Policy. As of June 30, the video PSA, “Save energy! Don’t burn your money!”, was broadcast in Ukraine. It focused on improving Ukrainians’ attitude to their own energy consumption and related expenses The PSA was shown on 120 outlets including national and regional TV channels, website pages of numerous municipalities, communities, and news portals across Ukraine, with an audience exceeding 17 million people. About 35,000 Internet users have viewed this video to date. The video PSA “Got your subsidy? Now save your energy resources!” is broadcast through 106 channels, including national and regional TV and online channels across Ukraine, with the audience exceeding 20 million people. The number of viewers of the video in social media exceeded 86,000. Three video PSAs featuring EE tips for a private house, an apartment, and HOA are being broadcast by 86 TV channels, with an audience of about 20 million people, and have been viewed by over 158,000 users of Facebook and YouTube on MERP’s and its partners’ pages. In addition, MERP social advertisement videos can be viewed at governmental portals, such as www.teplo.gov.ua (Cabinet of Ministers), and on website pages of numerous municipalities, district entities, news portals, etc. All MERP video PSAs are viewed on the video screens of the high-speed trains crossing Ukraine. The potential reach for the PSAs in these trains is approximately 200,000 persons monthly. Your Home TV Program The Project team, in cooperation with Ekvis studio, completed the production of the second season of the Your Home TV program, which was broadcast by the national UA-One channel every Sunday. The final five episodes of the second season were on the air through April and May. To date, 54 episodes of the program featured problems and best practices experienced by Ukrainians who decided to create HOAs, modernize their residential buildings, install metering equipment, implement AE/EE measures, take loans on EE projects, etc. The program also clarified all technical and legal aspects related to co-ownership in multi-apartment buildings and EE measures implementation in the residential sector, among other issues. According to UA- One channel ratings, Your Home is in the top 10 most popular programs on the channel. In addition, it is currently shown on 35 Ukrainian regional TV channels with an audience of 4.7 million, and among 4.1 million Facebook users it has had 1,055,576 views. The broadcasting is done on a pro bono basis. The third season of the program is planned to start in September 2017. Because MERP ends in March 2018, it will include 15 episodes. Promotion of “Warm Loans” Through Information Materials, Outdoor Posters, and Hotline In April, MERP and SAEE updated the Energy Saving: What to Do and Where to Get Money? brochure, which features major EE measures in multi-apartment buildings, including insulating the building envelope and roofing, replacing old windows and entrance doors with energy efficient ones, etc. It also describes the conditions of the “warm loans” government program,
USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT 25 under which individuals, HOAs, and housing cooperatives may take loans from a number of banks and then receive from 30 to 70 percent reimbursement of the costs from the state for EE materials and equipment. Billboards and city light posters developed by MERP, in cooperation with SAEE, continued blanketing USAID project partner cities in April and June. Outdoor posters are a part of MERP’s Energy Saving Arithmetic campaign, which is implemented in cooperation with SAEE and MinRegion. A new series of billboards and city lights display a variety of EE measures and savings in apartments, private houses, and condominiums. The billboards also show how to receive compensation of up to 70 percent of the cost of materials purchased under the “warm loans” state and municipal programs. Outdoor posters inform the public on how to obtain more information about the campaign and EE measures in the residential sector at the USAID Project website (www.merp.org.ua), or by calling the USAID project hotline (0-800-21-06-11). Placements of outdoor posters are done on a pro bono basis. Hotline on EE/AE and “Warm Loans” Program During the reporting period, 2,638 clients were served by the hotline launched by MERP in cooperation with Kyiv City Administration and SAEE to address the most urgent issues faced by Ukrainian communal service consumers. Most of questions were related to the conditions of the “warm loans” state program and subsidies for communal services; all the rest included issues on the establishment and effective management of HOAs, energy saving measures in multi- apartment buildings, and legal aspects of the relationship between consumers and their energy suppliers. Educating Journalists on EE/AE and Correct Terminology MERP, in cooperation with MinRegion and SAEE, started a series of 2-day workshops for journalists entitled Key Information on Energy Efficiency in Media. The first training took place in June and was attended by 24 journalists from Ivano-Frankivsk, Khmelnytskyi, and Ternopil oblasts. During the first training day, the journalists learned about the variety of modern energy- efficient technologies, the specifics of the construction of energy-efficient and passive buildings, the correct use of key terminology in housing and communal services, and participated in an exercise aimed at dispelling myths on the establishment and functioning of HOAs. The training participants visited (1) the “ElDom” factory and learned about the manufacture of energy- efficient windows and doors and (2) a residential building with a functioning HOA, which in the 7 years of its operation was able to implement very significant improvements: facade insulation, installation of new energy-saving windows on all the staircases, replacement of lighting with LED lamps, and the installation of motion sensors. During the second day of the training, the journalists were grouped in mini-editorial boards, and worked on the development of interesting and motivating media stories based on the problems and situations that are typical for most Ukrainian multi-apartment buildings. The task of the journalists was to resolve these problems by using the information received at the training from MERP, and to find creative approaches to articulate the stories to encourage interest and motivate the audience to action. The teams presented their work to an expert jury. In Q16, the Project will conduct five more such trainings in its partner cities. Public Outreach Materials and Events to Support EE/AE As of June 30, 2017, the Project team disseminated 295,000 brochures and posters to raise awareness about EE/AE. Informational materials were developed and/or updated and published on the MERP website. During the reporting period, the Project supported a number of outreach events on the national and municipal levels, including the following.
26 USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT The Third Energy Efficiency Forum for Effective Energy Partnership: Energy Management: Best Experiences was organized in cooperation with SAEE. More than 600 participants attended the Forum. USAID Project Contracting Officer’s Representative (COR) participated at the opening ceremony with introductory remarks, with Vice Prime Minister Mr. Gennadiy Zubko, Ambassador of Germany Mr. Ernst Reichel, National Deputy Mr. Oleksiy Riabchyn, SAEE Director General Mr. Sergiy Savchuk, and EU Support Group Representative Mr. Torsten Woellert. An official ceremony handing over the School Building Energy Audit Reports to the principals of 16 secondary schools that won the USAID Project contest on reducing electricity consumption was held during February–April, 2016. The contest involved 78 secondary schools in 16 USAID Project partner cities. In 2016, the winning schools were awarded with certificates for energy audits, which were conducted by the Project during the heating season of 2016‒2017. Based on the audit results, the Project developed for each of the schools three options for the most effective EE measures, and calculated the amount of required investments for their implementation as well as the potential payback period. When these schools implement the optimal EE packages, they may be able to save up to 7.8 million kilowatt hours (kWh) or up to UAH 8.4 million (approximately USD 0.3 million) annually. The opening ceremony of the Fourth National Specialized Exhibition and Forum: Independent Heat Energy, was held. The forum used the opportunity to present the USAID Project’s efforts in reforming legislation and facilitating investment in the area of municipal DH. In addition, the Project supported the outreach efforts of SAEE by providing a number of thematic brochures, developed in close cooperation with the agency. The brochures are focused on EE measures and CE projects in the residential sector. A roundtable discussion was held, entitled Reform in Communications: Survey, Trends, Common Efforts. The main objective of this event was to discuss cooperation and the coordination of the international and national energy community, Ukrainian Government, and NGOs to jointly target communication efforts of energy reform in Ukraine. The USAID Project gave a presentation on its experience in implementing a large-scale information campaign on energy saving and use of AE in its partner cities. The Information Fair 2017 was conducted in the facilities of VR. Attending the exhibition were representatives of the USAID Project, as well as over 50 international projects and organizations that provide expert advice and assistance to the relevant committees of VR. The conference entitled Energy Efficient City was held in Odesa. It was conducted as part of the SMART ENERGY PLATFORM. It was organized by the Project in cooperation with Association of Energy Engineers of Ukraine. The event was attended by 100 participants, including National Deputy Aliona Babak, representatives of MinRegion and SAEE, and representatives of the city councils and communal utilities from the USAID Project partner cities. The conference sections considered the issues of municipal energy planning, energy audit, energy management, practice of thermal modernization of the residential and public buildings, development of optimized heat supply plans for the cities, municipal and industrial waste management for energy generation, use of geo-information systems for the optimization of municipal infrastructure, energy-efficient municipal transport, energy-efficient street lighting, etc.
USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT 27 Support to Vulnerable Population To raise awareness among low-income residents and vulnerable groups on issues related to EE/AE, tariff regulation reform, and the social safety net, the Project conducted 49 meetings and thematic seminars in the Municipal Employment Centers of MERP partner cities. During these meetings, 1,223 citizens (486 men and 737 women) received informative materials, consultations, or both, on issues related to energy smart behavior, EE measures in multiapartment buildings, reasons for tariff increases, the communal subsidy mechanism, and how to create a condominium, among others. MERP provided about 950 copies of materials to support these events. B.4.2 ACTIVITY 2: PROMOTE INVESTMENT IN CE TECHNOLOGIES AND APPLICATIONS B.4.2.1 Task 2.2: Assisting Municipalities with Planning, Preparing, and Financing for CE Projects MERP continued assisting partner cities with the approval of SEAPs. To date, 15 new SEAPs have been prepared, and 14 of them have been approved by the city councils. Information on the Progress of SEAP Development and Approval The current status of SEAPs for partner cities9 is summarized in Table 5 below.
Table 5. Summary of the Current Status of SEAPs for Partner Cities SEAP Development/ New or Revised SEAP City SEAP Status / Comments Improvement Approval Date (D or I) Chernihiv D Approved. Implementation started. June 4, 2015 Dnipro D Approved. Implementation started. March 11, 2015 Ivano- I Approved. Implementation started. July 28, 2015 Frankivsk Kramatorsk D Approved. Implementation started. April 22, 2015 Lutsk I Approved. Implementation started. October 6, 2015 Ternopil I Approved. Implementation started. August 18, 2016 Khmelnytskyi D Approved. Implementation started. May 18, 2016 Rivne D Approved. Implementation started. April 21, 2016 Sumy D Approved. Implementation started. September 28, 2016 Approved. Implementation started. Kherson D Undergoing review to meet CO2 February 20, 2015 reduction targets. Zaporizhzhia D Approved. Implementation started. March 25, 2015 Kyiv D Final version prepared. Approval expected in 2017 Vinnytsia I Approved. Implementation started. February 24, 2017 Pavlohrad D Approved. Implementation started. May 23, 2017 Kryvyi Rih I Approved. Implementation started. April 26, 2017
9 Excludes partner cities in Eastern Ukraine and in Odesa Oblast (see Task 2.7 for details).
28 USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT Kyiv To date, the Project received multiple confirmations (letters) from the city administration that the SEAP is to be considered and approved. However, as of the date of this report, it had not been considered by the city council. Kherson During the reporting period, the Project was working to review the Kherson SEAP so that it meets CO2 emissions reduction targets established by CoM. The finalization of the plan and consecutive approval is expected in Q16 of the Project. Kryvyi Rih In April 2017, the City Council of Kryvyi Rih approved10 (unanimously) a new SEAP for the period through 2025. The new plan was developed with USAID Project support and envisions the following targets: EE/RE investments of over USD 230 million; CO₂ emissions reduction by 31.7 percent, or 422 thousand tons annually; Reduction of energy consumption by 26.3% or 1,288 MWh annually; Reduction of annual spending on energy resources by UAH 1.5 billion or about USD 55 million; Replacement of traditional (fossil) fuels with renewables (approx. 145 MW). Pavlohrad In May 2017, Pavlohrad city council approved SEAP for the period through 2030. The plan was developed with USAID Project support and envisions EE/RE investments of over USD 160 million during the period through 2030 and reduction of natural gas use by 63 percent in the centralized heating sector. SEAPs Implementation In May 2017, the Law # 0139 on Ratification of the Financial Agreement (Project Municipal Public Transport of Ukraine) between Ukraine and the European Investment Bank was signed by the President of Ukraine. The financing made available under the agreement is aimed to update the fleet of buses, trams, trolleybuses, subway cars, construction and reconstruction of tram and trolleybus lines, replacement of traction substations, and implementing modern fare and information systems out of the proceeds of credit from the European Investment Bank (EIB) and the EBRD. Funding for the project is planned at the expense of EIB credit under the state guarantee. The loans will be provided for up to 22 years with a grace period of 5 years. The source of co-financing of the project will involve the funds of the EBRD and/or local budgets, and final beneficiaries. The ratification of the Financing Agreement by VR provides USAID Project partner cities opportunities to realize SEAPs and the municipal transportation investment projects developed with Project support. The overall funding available to MERP partner cities (preliminary
10 https://www.oporaua.org/novyny/44289-kryvorizki-deputaty-zatverdyly-plan-dii-staloho-enerhetychnoho-rozvytku- do-2025-roku
USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT 29 allocation11) under the combined EIB/EBRD facility is about USD 310 million, including about USD 170 million from EIB and USD 140 from EBRD. СЕ Investment Projects Support During the reporting period, the Project supported cities in mobilizing funding for EE/CE investments. In particular, this included: For the city of Kremenchuk: The Project delivered the energy audits and feasibility study for thermomodernization of public buildings in Kremenchuk. The feasibility study was prepared to secure EBRD, CTF and Eastern Europe Energy Efficiency and Environmental Partnership (E5P) financing to implement EE measures in 50 public buildings, including schools and medical institutions. MERP developed several options (packages) to be considered for funding. The suggested options predict CO₂ emissions falling by 4 to 4.6 thousand tons annually and financing (project value) of USD 9 million to 11 million. For the city of Mariupol, MERP finalized a prefeasibility study and energy audits for 40 public buildings, including schools and medical institutions. The proposed project/EE measures total about USD 18 million. MERP also finalized an energy audit and preparation of prefeasibility studies to attract investments of UAH 774.5 million and UAH 439 million (about USD 30 million) in energy efficiency improvements in the DH system. The Project finalized energy audits and prepared a feasibility study for the thermomodernization of 20 residential buildings in Ivano-Frankivsk. The overall project value is about USD 7.5 million. It is anticipated that the proposed EE measures will be funded by the city, EIB loan, and residents. The Project finalized an energy audit and the preparation of a feasibility study for the DH system in Yuzhne, Odesa Oblast. Based on a request from the city of Chernihiv, the Project updated the feasibility study to support the implementation of EE measures in public buildings; the project value for EIB funding is about USD 8.4 million. Based on a request from the city of Zaporizhzhia, the Project updated the feasibility study to support the implementation of a DH modernization project (boiler houses) and started preparing a feasibility study for IHS installation (potential EIB funding); The Project updated energy audits of public buildings and a feasibility study for Zaporizhzhia potentially funded by Kreditanstalt für Wiederaufbau (KfW). Two options/projects, consistent with the City’s objectives approved in the SEAP, were proposed for implementation: – Implementation of EE measures in 40 public buildings (comprehensive thermomodernization) with an estimated value of USD 11 million; the option should achieve up to 70 percent savings of fuel and energy resources, and reduce annual energy costs by about USD 0.9 million. – Implementation of EE measures in 89 public buildings (comprehensive thermomodernization) with an estimated value of USD 28 million; the option should enable up to 69 percent savings in fuel and energy resources, and reduce annual energy costs by about USD 2.1 million.
11 http://mtu.gov.ua/news/27947.html
30 USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT The Project finalized the energy audit for the DH system of Bilhorod-Dnistrovskyi in Odesa Oblast. The feasibility study envisions a package of EE measures valued about USD 4.9 million. The Project finalized the energy audit for the DH system of Dobropillya, in Donetsk Oblast. The energy audit identified EE measures valued at about USD 5.9 million. The Project continued developing the project concept for increasing the effectiveness of public transportation in Kramatorsk. During March–May 2017, the Project conducted a sociological survey on the urban mobility of the population in Kramatorsk. The Project also conducted a survey of traffic and traffic lights’ working cycles in Kramatorsk. The survey focused on public transport, privately owned cars, and traffic light working cycles. The development of the transport model and project concept for Kramatorsk will continue in Q16. In May 2017, the Project received a letter from Chernihiv acknowledging the support of the USAID Project in preparing the project on the thermal modernization of buildings (with a potential EIB loan) and an electric transport sector feasibility study, which enabled the initiation of the procurement of new trolleybuses and an application for a EUR 6.1 million loan from EIB. The city also requested assistance with the transport sector feasibility study update in line with EIB requirements. Based on the request from the city of Kryvyi Rih, the Project initiated the development of a feasibility study to enable the thermomodernization of public buildings funded by IFIs. The project conducted a preliminary feasibility assessment (use of biomass boilers and combined heat and power) for the city of Teplodar in Odesa Oblast. Based on the request of the city, the work will continue in Q16 of the Project. Based on the solid waste management program developed by MERP, the city of Ivano- Frankivsk started working with EBRD to introduce comprehensive solutions in this area, including sorting and refuse-derived fuel production. To date, MERP had requests to prepare similar programs and projects for solid waste management and utilization from the cities of Kherson, Lutsk, Mariupol, and Kryvyi Rih. However, because MERP resources are limited and priority is given to the partner cities in eastern Ukraine and Odesa Oblast, support to these cities was not provided. As of the end of the reporting period, MinRegion and EIB had not finalized the evaluation of cities applications/projects 12 prepared for EIB under the Municipal Infrastructure Support Program. It is expected that the final list of projects will be approved by MinRegion and EIB and published in Project Q16. A summary of information on the support of projects is presented in Table 6.
Table 6. Summary of Information on the Projects Supported Status Number of Projects New requests received13 — Projects with MERP support 86 Of them:
12 The overall value of projects prepared with MERP support is more than USD 100 million. 13 With the exception of support to updates of feasibility studies: Zaporizhzhia, Chernihiv, Khmelnytskyi, Teplodar.
USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT 31 Table 6. Summary of Information on the Projects Supported Status Number of Projects Post-signing support provided 5 New project proposals developed 47 Project proposals under development 15 Stopped / Suspended 20 Total 86
The details on the current projects pipeline by area and type are presented in Table 7.
Table 7. Current Project Pipeline
# of Approximate Value, USD Million Area Projects New Projects Post-Signing Support Total
District Heating 26.0 83.9 54.9 138.8
Energy Management 2.0 0.0 0.0 0.0
Public Buildings 28.0 170.2 17.6 187.9
Residential Buildings 1.0 7.5 0.0 7.5
Solid Waste 12.0 9.5 0.0 9.5
Street Lighting 6.0 2.4 0.0 2.4
Transport 5.0 18.8 0.0 18.8
Water / Wastewater 6.0 43.8 0.0 43.8
Total 86.0 336.0 72.5 408.5
In total, the pipeline includes 86 projects (requests from the cities), including 62 active14 projects (valued at approximately USD 336 million), and 5 projects for which MERP was instrumental in providing post-signing support to EBRD, WB, and NEFCO funded activities (valued at approximately USD 73 million). As of the end of the reporting period, the Project had secured funding for eight new projects valued at USD 18.2 million. Assistance to partner cities in applying for EC grants under the CoM initiative During the reporting period, the Project assisted partner cities in applying for grants under the CoM initiative funded by the European Commission.15
14 Project proposals developed and under development. 15 Regional Programme in the Eastern Neighborhood in support of the Eastern Partnership Flagship Initiative on Sustainable Municipal Development. CoM Reference: EuropeAid/155713.
32 USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT Khmelnytskyi The Project assisted the city with preparing a grant application for the project, Promoting Development of the Local Heat Energy Market: Installation of a Biofuel Cogeneration Plant. The objective of the project is to reduce the municipality’s costs for fuel and electric energy and to increase the energy independence of the city through partially substituting natural gas with biofuel by using heat and electric energy cogeneration. The project value is about USD 0.8 million and the proposed cogeneration plant will substitute 448,000 m3 of natural gas annually and reduce CO2 emissions by 4,375 tons per year. Chernihiv The Project assisted the city with preparing a grant application for the project, Thermal Retrofit of Budgetary Buildings, with the Use of Renewable Energy Sources, as a Way toward the Energy Independence of Chernihiv. The objective of the project is to conduct a thermal retrofit of the municipal maternity hospital, including the installation of solar collectors for hot water supply for both the municipal maternity hospital and secondary school #11. The project value is about USD 1 million and it will enable the city to save about USD 90,000 and reduce СО2 emissions by 444 tons annually Development of the Catalogs of Investment Projects The Project finalized the translation of investment catalogs for 10 partner cities, including Vinnytsia, Dnipro, Ivano-Frankivsk, Kryvyi Rih, Rivne, Sumy, Ternopil, Chernihiv, Khmelnytskyi, and Lutsk. The catalogs will be placed on the Development Experience Clearinghouse website and the relevant information distributed to IFIs. Development of the Catalog of Investment Projects and Investment Strategy of Kramatorsk During the reporting period, the Project collected the necessary technical and financial information for the Catalog of Investment Projects and Investment Strategy of Kramatorsk and conducted technical field visits. The development of project proposals for the Catalog and Investment Strategy of Kramatorsk will continue in Project Q16. Support to Implementation of CE Demonstration Projects in Multifamily Residential Buildings During the reporting period, the Project started work on design documentation for demonstration projects. The design documentation is expected to be finalized in Project Q16. Funding Mobilized for Residential EE As a result of the joint MERP and SAEE campaign on “warm loans” promotion and other program support actions, 222,013 loans (approximate value of more than USD 148.6 million), including 930 loans to HOAs, had been issued under the State Program to support residential EE.16 Before the campaign began in June 2015, such loans had been taken by only 3,984 households and one HOA in the amount of UAH 71 million (less than USD 3 million). CE Investment Informational Support The Project released the fourth issue of the Investment Opportunities newsletter. The issue features the investment projects for USAID Project partner cities, including Kamianets-Podilsky, Khmelnytskyi, Kyiv, Sumy, and Vinnytsia. These projects had been prepared or implemented with assistance provided by the Project for the following municipal sectors: budgetary and
16 As of June 30, 2017.
USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT 33 residential buildings, heating, water and sewage, public lighting, public transport, and AE. In addition, the newsletter informs readers about current investment opportunities available in Ukrainian municipalities. It was distributed to the city councils and utility companies of partner cities, ministries and governmental agencies, oblast administrations, NGOs, CE/HOA RCs, professional associations, international TA projects, IFIs and donor organizations, etc. B.4.2.2 Task 2.3: Introduction of Energy Management Systems In April 2017, CMU adopted the Resolution17 “On approval of a plan of implementation of energy management in budget institutions”, following the relevant decision of the Committee on European, Euro-Atlantic Integration, International Cooperation and Regional Development in February. During the reporting period, the Project assisted with implementing this plan by developing a methodology for monitoring, guidelines for energy management, limits for energy consumption and use of funds received from savings. B.4.2.3 Task 2.4: Development Credit Authority (DCA) Loan Guarantee As of the end of the reporting period, Bank Lviv had received 43 applications and issued 19 loans for a total of UAH 8.261 million, EUR 1.95 million, and USD 0.55 million (approximate total value USD 3.008 million). During the reporting period, the bank issued one loan to a local SME. As of June 30, 2017, the bank had three new applications from SMEs to review. The Lviv Bank Credit Committee will make a final decision about placing them under the DCA guarantee in the 3rd quarter of 2017. The bank is satisfied with the current utilization (approximately 36 percent) of the DCA guarantee and would like to extend DCA beyond September 2020 (current end date). B.4.2.4 Task 2.5: Support Mechanisms That Mobilize Private Sector Investment Support to ESCO Mechanisms Implementation During the reporting period, in coordination with EBRD, MERP finalized a prefeasibility study for the thermal modernization of 50 public buildings in the city of Kremenchuk. Public-Private Partnerships (PPPs) In June 2017, the city of Khmelnytskyi announced results of competition for selecting the investor for a landfill gas utilization project. The contract with the wining company is expected to be signed by the end of July 2017. The potential amount of GHG reduction is estimated at 91,914 metric tons of CO2 per year. USAID MERP supported the Khmelnytskyi landfill gas utilization project with a feasibility study and legal documentation development. A similar feasibility study was prepared for Kamianets-Podilsky and is under preparation for Lysychansk in Luhansk Oblast and Odesa. Support to HOA/CE RC Operations During the reporting period, MERP continued providing regular assistance to HOAs/CE RCs in outreach, legal, technical, economic, ecological, and other key areas related to EE/AE projects and the attraction of investments for their implementation in residential buildings. The Project also supported the exchange and dissemination of information through RCs’ individual pages on Facebook and through MERP and partner pages. In total, since the beginning of 2015, MERP
17 http://www.kmu.gov.ua/control/uk/publish/article?art_id=249947129&cat_id=244276429
34 USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT has supplied RCs with over 70,000 copies of informational materials and conducted a number of trainings for RCs’ staff representatives. The informational materials covered the following topics: (1) setting up HOAs and their activities; (2) energy saving and clean energy; and (3) tariffs. Thus far, MERP RCs held 4,052 public outreach events at the local level (including trainings and meetings on establishing HOAs) and consultations on legal, administrative, and technical issues given to 13,878 initiative groups or/and individuals. Some 3,612 new condominiums were created from the beginning of 2015 through June 30, 2017, which is about 25.4 percent of all new HOAs established in Ukraine during the same period. In May 2017, the Project conducted the final conference for CE HOA RCs from the first and second groups of cities in Odesa. The goal of the conference was to gather CE HOA RCs established and operating with support of the USAID Project to discuss activities of RCs, information campaigns on residential EE/CE, partnerships with EE materials/equipment producers, networking, sharing best practices, etc. The conference agenda focused on: overview of RCs operations and partnerships with EE materials/equipment producers; information dissemination and networking by RCs and dissemination of best practices; establishment of HOAs; planning and time management; and anticipated steps. As a result of the conference, the following critical activities were identified: (1) implementing deep retrofit projects in multifamily buildings with HOAs; (2) advocacy to ensure the continuation of the “warm loans” program; (3) ensuring that subsidies and privileges allocated to the populace are compensated to HOAs in a timely manner; and (4) developing a joint position regarding the installation of gas meters under the arrangement when apartment owners co- finance installations. The participants of the final conference suggested conducting a large final event at the end of 2017 for all CE HOA RCs, including new centers that will be established in Donetsk and Luhansk oblasts. During the reporting period, the Project monitored the work of HOA CE RC operations. Out of 13 HOA RCs, all but Kramatorsk created Facebook pages. There are 14 such pages now (Association of Sumy HOAs “Sumschina” and Zaporizhzhia CSO “OZhBK Victoria” have two Facebook pages each) and one national Facebook page (created for coordinating between regional pages of HOA RCs). Zaporizhzhia HOA RC retains the lead, with its audience of active subscribers exceeding 2,000 and likely to grow. The Facebook accounts of Sumy and Dnipro HOA RC have over 900 subscribers. As of June 30, 2017, the total number of followers of the network of HOA RCs on Facebook reached over 7,500. Support to State-funded EE Partial Loan Compensation Programs for HOAs and Households Through an advocacy campaign, MERP supported the allocation of additional funding for the “warm loans” program in calendar year 2017. In June 2017, VR of Ukraine increased funding for the program by UAH 100 million (approximately USD 3.8 million). B.4.2.5 Task 2.6: Preparation of a Sustainable Energy Public Awareness Plan and Development of Related Materials Sustainable Energy Days in Partner Cities In June, MERP supported Sustainable Energy Days in Sumy, Vinnytsia, and Zaporizhzhia by setting up information camps in the main squares of these cities. Each information camp consisted of three booths serving as EE counseling centers for adults, clean energy scientific labs, and master class sites for children. The booths offered all citizens professional advice on
USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT 35 energy saving technologies and equipment, heat insulation for buildings, the establishment and successful operation of HOAs, tariff setting, and the use of AE sources. At the USAID Project camp, both adults and children had the chance to participate in contests on EE/AE, win useful prizes, assemble devices operating on CE, and join the master class on making paper windmills. More than 4,000 brochures and posters were distributed through the USAID Project information cam, including Energy Saving, What to Do and Where to Get Money?; How to Establish Homeowners Associations; Our House – Our Property; Clean Energy – Clean Future; Energy Saving in a House; and 10 Tips on How to Save Heat in Your Home. B.4.2.6 Task 2.7: Implementing Sub-Activity 2 Tasks in Odesa Oblast and Ukrainian Territories Affected by the Conflict with Russia Eastern Ukraine Energy planning During the reporting period, the cities of Myrnohrad, Pokrovsk, and Rubizhne established advisory committees and working groups for the development of SECAPs. MERP conducted field visits and gathered information/questionnaires for conducting energy audits of the key infrastructure sectors. The preparation of reports on energy audits of municipal energy systems and corresponding chapters of SECAPs will continue in Project Q16. Energy audits and specific project support The Project conducted energy audits of public and residential buildings for partner cities located in Luhansk and Donetsk oblasts. These audits will form a basis for thermomodernization and will enable municipalities to bring IFIs and private and public sector funding for the implementation of EE measures. A summary of the current status of energy audits is presented in Table 8.
Table 8. Energy Audits of Public and Residential Buildings in Eastern Ukraine Number of Buildings Area Status Public Residential Total
Pokrovsk Ongoing 7 5 12
Myrnohrad Finalized 4 8 12
Severodonetsk Finalized 7 5 12
Rubizhne Finalized 7 10 17
Bahmut Finalized 14 5 19
Dobropillya Ongoing 5 9 14
Slovyansk Finalized 18 8 26
Kharkiv Ongoing 15 5 20
Total 77 55 132
36 USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT Support to CE HOA Advisory Centers MERP organized the introductory seminar, entitled Organizational, Legal, Technical, and Informational Aspects of Performance of Clean Energy and Home Owner Association Advisory Centers, for its new partner cities including Kharkiv, as well as Donetsk and Luhansk Oblasts. The workshop took place in Kharkiv and was attended by 35 representatives from Bakhmut, Dobropillya, Kharkiv, Mariupol, Myrnohrad, Pokrovsk, Rubizhne, Severodonetsk, and Sloviansk. Other participants included representatives from manufacturers/associations of manufacturers of EE materials and equipment including REHAU, Danfoss, and Henkel Bautechnik (Ukraine), who gave presentations on their experience working collaboratively with CE HOA RCs. In seminar feedback forms, participants listed the following issues, which, in their opinion, are most important for including in the agendas of forthcoming seminars: 1. Best practices for implementing energy efficiency measures (including sequence of EE actions when a deep retrofit is not possible, and selection of EE materials); 2. Substantiation of amounts of contributions by co-owners when an EE loan is taken out; 3. Documentation flow and accounting at an HOA; 4. Best practices of CE HOA RCs; 5. Dissemination of information on the activities of HOAs and CE HOA RCs; 6. Media relations; and 7. Decision making at an HOA and informing co-owners about decisions taken. The above issues will be on the agenda of the forthcoming training seminars for new Clean Energy HOA Advisory Centers. The next seminar is planned in Lutsk in July 2017. During the reporting period, MERP provided support to establish Clean Energy Advisory Centers (CEACs) in eastern Ukraine. New partner cities received information and consultation on preparing the Concepts of CEACs and submitted formal requests to the Project for assistance. A plan has been set up to procure equipment and materials for CE RCs and assist in setting up CE HOA RCs in Project Q16. Odesa Oblast Energy planning During the reporting period, the Project supported partner cities in Odesa Oblast with developing SECAPs. A summary of the information on SECAP development is provided in Table 9.
Table 9. Current Status of SECAPs Development for Odesa Oblast
City SECAP Status / Comments Approval Date
Izmail Approved, Implementation started March 31, 2017 Bilhorod-Dnistrovskyi Approved, Implementation started April 20, 2017 Reni Final Draft prepared Balta Draft prepared Yuzhne Final Draft prepared
USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT 37 Table 9. Current Status of SECAPs Development for Odesa Oblast
City SECAP Status / Comments Approval Date
Chornomorsk Final Draft prepared Bolhrad Final Draft prepared Regional energy planning (REP) The USAID Project conducted an introductory workshop on the RSEP for Odesa Oblast. The workshop covered the following topics: EU policies related to EE/RE in both national and regional context, an overview of European experience in the field of REP, and key steps in the REP process. In addition, the workshop covered a presentation of the biomass and solar energy potential for Odesa Oblast. As a result of the workshop, it was agreed to establish sectorial working groups and a steering committee comprising representatives from partner cities, oblast authorities, and the USAID Project. In June 2017, the Project received a letter from Odesa Oblast State Administration confirming the start of the establishment of the Advisory Committee / Working Group on REP Development. During the reporting period, MERP continued finalizing REP methodology. The preliminary results (REP structure and contents) will be presented at the REP Advisory Committee meeting in July 2017. Energy audits and specific project support The Project conducted energy audits of public and residential buildings for partner cities located in Odesa Oblast. These audits will form a basis for thermomodernization and will enable municipalities to bring IFIs and private and public sector funding for the implementation of EE measures. A summary of the current status of EAs is presented in Table 10.
Table 10. Energy Audits of Public and Residential Buildings in Odesa Oblast
Number of Buildings Area Status Public Residential Total
Yuzhne Ongoing 7 7 14
Bolhrad Finalized 9 3 12
Bilhorod-Dnistrovskyi Finalized 10 5 15
Balta Finalized 8 5 13
Chornomorsk Finalized 11 5 16
Reni Finalized 3 14 17
Izmail Finalized 7 5 12
Total 55 44 99
38 USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT Energy Management and Capacity Building During Project Q14, MERP conducted workshops on energy management for the representatives of municipal and regional administrations of Odesa Oblast and eastern Ukraine (Luhansk and Donetsk oblasts). More than 60 people attended the events. The training covered the organizational, legal, and technical aspects of the establishment and operation of the energy management function in municipalities. During the reporting period, MERP assisted with the establishment of energy management in municipalities. This included the development of energy management documentation and consultations through a web-based platform created by the School of Energy Efficiency, an NGO, with MERP support (http://see.org.ua/ua/forum-enfo). In June 2017, MERP reviewed the status of establishing the energy management function in partner municipalities. The results are presented in Table 11. Table 11. Establishment of Energy Management Function in Odesa Oblast and Eastern Ukrainian Cities Energy Management Municipality Comments (EM) Introduced EM function introduced (requires improvement) – specialists in Balta Yes several departments perform EM functions (city administration).
Bakhmut Yes EM department created and functional
Bilhorod- Yes EM function introduced – specialist in EM (city administration) Dnistrovskyi EM function introduced – specialist in EM (communal Izmail Yes enterprise)
Kremenchuk Yes EM department created and functional
Mariupol Yes EM department created and functional
EM function introduced (requires improvement) – specialists in Pokrovsk Yes several departments perform EM functions (city administration) EM function introduced (requires improvement) – specialists in Reni Yes several departments perform EM functions (city administration) EM function introduced (requires improvement) – specialists in Rubizhne Yes several departments perform EM functions (city administration)
Slavyansk Yes EM function introduced – specialist in EM (city administration)
EM function introduced (requires improvement) – specialists in Chornomorsk Yes several departments perform EM functions (city administration) EM function introduced (requires improvement) – specialist in Yuzhne Yes EM (city administration)
USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT 39 In April‒May 2017, the Project held trainings on Energy Audits of Buildings for professionals representing local service providers, universities, and city administrations located in partner cities, including Dnipro, Kharkiv, Kramatorsk, Mariupol, Odesa, Zaporizhzhia and others. More than 30 energy professionals participated in the training. In June 2017, an Energy Managers training and certification session was organized in Odesa. Representatives from Project partner cities18 received a comprehensive energy management education during the session. The training program was developed and conducted by Association of Energy Engineers. Sixteen trainees (about 65 percent) successfully passed the final exam and will receive the internationally recognized Certified Energy Manager TM. Energy Management and Capacity Building During the reporting period, the Project selected demonstration projects for further MERP support. State educational institutions, municipal organizations, and local self-government bodies from partner cities in Odesa Oblast and eastern Ukraine were invited to participate. The Project received 32 applications and, as a result of the evaluation, the following six grant projects were approved for funding: Modernization of the Building of Kindergarten “Teremok”, including: installation of solar batteries, installation of individual heat substation, windows replacement, modernization of lighting system and kitchen equipment (submitted by the Executive Committee of Izmail City Council, Odesa Oblast) Comprehensive Modernization of the Building of Bendzarivska T.P. Bondar Secondary School, including: installation of ventilation systems with energy recuperation, automated heat controls, energy-saving lighting with solar batteries, door replacement, switching heating system from coal to electricity, with heat insulation of the building envelope and attic (submitted by Balta City Council, Odesa Oblast) Complex Thermal Modernization of the Building of Kindergarten #5 Zhuravushka, including: installation of a solid fuel boiler house, installation of a hot water supply system with solar collectors and local supply, ventilation with recuperation, reconstruction of the heating system, replacement of old wooden windows and wall insulation (submitted by Bolhrad City Council, Odesa Oblast) Development of the Design and Cost Documentation for the Comprehensive Thermal Modernization of Kindergarten #52 Raiduha (submitted by Bakhmut City Council, Donetsk Oblast) Development of Design and Cost Documentation for the Comprehensive Thermal Modernization of Two Educational Establishments in Mariupol: Mariupol Technological Lyceum and Mariupol Secondary School #52 (submitted by Mariupol City Council, Department of Education, Donetsk Oblast) Development of Design and Cost Documentation for the Comprehensive Thermal Modernization of Buildings of Volodymyr Dal EUNU, including installation of a lighting system on solar panels, installation of heat pumps and infrared panels, installation of LED lamps (submitted by Volodymyr Dal Eastern Ukrainian National University, Severodonetsk/Rubizhne, Luhansk Oblast)
18 Most participants were from Odesa Oblast and eastern Ukraine.
40 USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT B.4.3 ACTIVITY 3: CAPACITY BUILDING AND DISSEMINATION All tasks under this activity have been finalized. B.4.4 ACTIVITY 4: ENHANCE CAPACITY FOR THE GOU IN LEDS B.4.4.1 Activity 4: Enhance Capacity for the GOU in LEDS Task 4.1: Strengthening Institutional Capacity in Planning LEDS-Resource Efficiency Development Strategies (REDS) Paris Agreement Implementation: State Climate Policy Action Plan During the reporting period, MERP continued its support to MinEcology on implementing the State Climate Policy Concept and developed a draft Climate Policy Concept Action Plan. The Draft Action Plan outlines specific activities, policies, and measures to be implemented by GOU, including all agencies and ministries and local authorities, to achieve low emission development and to implement Paris Agreement provisions. As part of the MERP-initiated transparent and inclusive discussion process of this Action Plan, MERP conducted several expert-level discussions on the draft Action Plan and its elements and timeframe. MERP also participated in the expert meeting on the implementation of national climate change policy in government buildings. This expert meeting was organized by the Secretariat of the Cabinet of Ministers of Ukraine under the GOU so-called Civil Society initiative and government, and was aimed at discussing the draft Action Plan developed by MinEcology with MERP assistance. More than 50 representatives of seven oblasts of Ukraine (Vinnytsia, Dnipro, Lviv, Odesa, Poltava, Kharkiv, Chernihiv) from local municipalities, regional administrations, NGOs, and academia had a chance to provide comments and feedback, and to communicate with MinEcology officials and MERP representatives on the draft Action Plan. During the reporting period, MERP also participated and contributed to the regular meeting of Inter-ministerial Commission on UNFCCC Implementation (the Commission). During this meeting, the Minister of Ecology and Natural Resources thanked MERP for its continuous support on developing the draft Action Plan presented during the meeting for consideration and comments of the Commission members. Also during the Commission meeting, the Annual National GHG Inventory Report for 1990‒2015, developed with MERP assistance, was considered and approved. Implementation of Paris Agreement Provisions: National GHG Inventory Enhancement During the reporting period, MERP continued its support to partner cities on MRV of GHG emissions and conducted MRV introductory training for Odesa Oblast and municipal heating companies, representatives of Odesa Oblast Administration, and Odesa and Izmail municipalities. MERP delivered a basic introduction to MRV legislation approaches, elements, goals, and steps for municipal heating companies in Ukraine. MERP also gave a presentation on the fuel combustion methodology developed by MERP and accepted by National GHG Emissions Inventory Center. During the training, MERP presented a template of the Monitoring Plan and initiated discussion on establishing the MRV Monitoring System. Odesa is the third partner city that participates in the series of MRV trainings for municipal heating and energy companies, aimed at assisting them in developing Monitoring Plans and establishing a Monitoring System to enhance GHG emission monitoring at the installation level. During the reporting period, MERP continued its support to the National GHG Inventory Center and assisted them in preparing the annual GHG Inventory Report for 1990‒2015. MinEcology thanked MERP for its continuous support of National GHG Inventory System. The Project continued its support to SAEE on the implementation of EU Directive 2009/28/EC. The Project conducted consultations with key stakeholders, including profile technical
USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT 41 committees. During Project Q16, MERP will work on finalizing the text of the national standard based on the comments and suggestions from the stakeholders. Task 4.2: Implementing LEDS-REDS through Support in Developing and Introducing CE Technologies and Energy Services The details on the current portfolio of CE projects are provided under the Activity 2 section of the report. Task 4.3: Developing a Uniform Database on LEDS-REDS and Exchanging Experiences and Best Practices with Other Countries Participating in Enhanced Capacity for Low Emission Development Strategies (EC-LEDS) The Project continued populating the UA-LEDS database for Ukraine based on stakeholder comments. Cross-cutting Activities Donor coordination In April 2017, USAID Project Deputy Chief of Party (DCOP) conducted a meeting with a KfW consultant conducting an evaluation (fact finding mission) for the project, Energy Efficiency in Municipalities (loan program) as well as a grant for the programs, Support of Eastern Partnership with Ukraine and Modern Municipal Services. USAID Project DCOP provided information on Activity 2 of the project, including details on cooperation with municipalities, and cities’ priorities and needs as seen from an EE perspective. The meeting focused particularly on the low capacity of municipalities to develop and implement EE projects, especially for those with population below 200,000 (as experienced in new partner localities). In addition, financing instruments for smaller cities and localities are limited or nonexistent. The consultant mentioned the fact that KfW has and will have a loan funding available for municipal infrastructure projects; however, there is no funding for TA to support the future loan program, and this issue will be further discussed with other donors. In April 2017, USAID Project and the WB project (financed by SIDA) engaged in extensive coordination activities during April. Discussions on potential areas of compromise in the two approaches over incentive-based tariff regulation methodology were held, and resulted in diverging opinions on the needs of methodological solutions and possibilities to be flexible within existing legal framework. In all cases, NEURC is the beneficiary, and some clarification regarding the potential of merging efforts is hoped for after the joint donors’ letter of mid-April, if NEURC has intentions to merge efforts. A potential area to work together is in the development of a manual for market entities on how to effectively use the methodology; the manual would be adopted by NEURC. In May 2017, The USAID Project participated in a donors’ meeting on EE in buildings, which took place on May 24. The topics covered by the participants included the following: Support of the adoption of the laws, On Housing and Communal Services, On Commercial Metering, On Energy Efficiency Fund, and On Energy Efficiency in Buildings. the International Finance Corporation is currently supporting the development of the law on the EE fund and EBRD on EE in buildings. Development of secondary legislation (regulatory acts) aimed to facilitate the implementation of the above laws. None of the parties has resources to support the development of the regulations to implement the laws On Energy Efficiency in Buildings and On Housing and Communal Services. Support for the introduction of the energy management function in municipalities.
42 USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT The new EU project (Energy Community) is providing support to establish new NEEAP targets. However, this project will not be supporting the NEEAP development process as a whole. Development of project proposals and energy audits to facilitate investments in public buildings. USAID Project DCOP informed the audience that the project conducted about 800 audits or energy screenings of buildings in Ukraine. In June 2017, a meeting with NEURC, USAID Project, and the WB/SIDA project was conducted and chaired by Mr. Tsaplin, who is the coordinator appointed to resolve the overlap between the two donor projects. It was agreed that the package of incentive-based regulation for the transport of thermal energy is under the scope of the USAID Project, with comments expected from the WB/SIDA project; the investment methodology and the package of incentive-based regulation for the generation of thermal energy is under the primary scope of WB/SIDA project, with comments expected by the USAID Project. The agreed setting is subject to further communication by NEURC to donors in a formal letter. Anticorruption During the reporting period, the Project engaged civil society and the public sector in the fight against corruption in the energy sector. The Project supported and coordinated a network of organizations capable of identifying corruption in the energy sector and demanding transparency. The network includes civil society groups, anticorruption “watchdog” organizations, and investigative journalists. Specific activities included the following: Conducting research and preparing analytical materials focusing on anticorruption issues in the energy and housing and communal services sectors. Informing the public about the mechanisms of consumer protection in communal services. Developing informational materials and distributing information on the ZHYTLO web page about potential corruption and/or abuse. Moderating the ANTILAPA open group in Facebook. The page collects information on corruption cases and corruption risks in the energy, housing, and communal services sectors. As of the end of the reporting period, the page had 1,718 participants, including well-known journalists, civil society activists, and officials. During the reporting period, active contributors left 91 posts devoted to corruption in energy and utilities, or corruption as a phenomenon. Ensuring regular communication and the exchange of information with leading anticorruption and journalism organizations and advocating for transparency in the energy sector. In particular, this included participation in several public and media events, the presentation and distribution of informational materials related to increasing the transparency of tariff calculations, utility companies’ reporting on investment programs, and increasing the transparency of procurements by utility companies. During the reporting period, 47 participants of the Anticorruption Network received seven anticorruption digests (59 informational materials) in the following areas: housing and communal services, procurement, tariffs, subsidies, condominiums, investment programs, gas, energy, and budget funds. Gender and Inclusive Development Per contract requirement, MERP ensures that men and women are equally supported through Project activities and that gender awareness and gender dynamics are taken into consideration.
USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT 43 Gender issues are cross-cutting for all MERP’s activities. Strengthening women’s roles in the design, implementation, management, and use of sustainable energy solutions is critical for reaching development goals. During the reporting period, women were actively involved in Project activities at both national and local levels: 421 persons took part in MERP events: 191 women (45 percent) and 230 men (55 percent). MERP works with a wide range of people, ensuring inclusive development for all groups of the populace. The Project provides opportunities for everyone to take part in seminars, workshops, roundtables, etc., regardless of age, sex, ethnic origin, health status, family structure, sexual orientation, education, employment, income, housing, food security, safety, or any other dimensions of human diversity. During the reporting period, MERP finalized its Gender Impact Assessment report. The goals of the assessment were to identify successful efforts that could be built on and scaled up, identify any possible gaps in gender knowledge and implementation, and describe the gender-related resources and tools that could be leveraged to improve the program performance in this area. The key conclusions of the report are listed below. The gender component is, in general, integrated into the project cycle. At the same time, the Project lacks a specific and explicitly written gender strategy or policy that integrates all components in a comprehensive system, and defines relevant and realistic Project gender objectives. It is possible to track the gender-sensitive performance indicators identified in the M&E plan and to analyze the results of project performance based on information contained in the quarterly reports. For example: the indicator on training in EE/CE disaggregated by gender demonstrates 41 percent to 59 percent male-to-female participant ratio for overall project duration (over 280 training events covering over 11,000 participants). This is above the target indicator stated in the MERP Task Order (MTO). Understanding of gender equality problems among Project experts and partners is lacking, and the need exists for capacity development gender training for Project staff. It is necessary to integrate the gender breakdown into the feasibility and prefeasibility studies and energy audits that are conducted by the Project. MERP is planning to conduct gender awareness training for Project staff and key implementers in Project Q16.
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USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT 45 C. DELIVERABLES
MERP’s Fifteenth Quarter (Q15) deliverables and reports are as follows: MERP Fourteenth Quarterly Report, January 1–March 31, 2017 Updated MERP Work Plan for Year 4 Standard MTO PowerPoint presentation Basic talking points on main assistance areas (part of MTO PowerPoint presentation) List of MTO accomplishments by tasks and activities MTO Fact Sheet The list of the most important documents and materials produced under MERP during Q15 of the Project is presented in Table 12.
Table 12. Most Important Documents and Materials Produced under MERP during Q15 of the Project # Activity Task/Subtask Month Document Title Language Presentation on Experience of EU States in 1 Activity 1 Task 1.1 April Organizing District Heating Sector under English Competitive Frameworks Letter to Mr. Savchuk of SAEE of May 23, 2017, 2 Activity 1 Task 1.1 May on assistance to develop legal framework for solid Ukrainian biomass market organization in Ukraine Task 1.2 Letter to Mr. Vovk of NEURC of April 3, 2017, on 3 Activity 1 April Ukrainian (Subtask 1.2.3) reviewing documents and providing comments., Cover letter to Mr. Vovk of NEURC of April 5, Task 1.2 2017, on submitting report on the tools for 4 Activity 1 April Ukrainian (Subtask 1.2.3) automated monitoring of quality of centralized water supply and sewage services. Report on the tools for automated monitoring of Task 1.2 5 Activity 1 April quality of centralized water supply and sewage Ukrainian (Subtask 1.2.3) services, with Annexes (8 documents). MERP letter to Mr. Vovk of NEURC April 25, Task 1.2 6 Activity 1 April 2017, on recommendations on quality indicators Ukrainian (Subtask 1.2.3) in DH generation, transmission, and supply Task 1.2 Recommendations on quality indicators in DH 7 Activity 1 April Ukrainian (Subtask 1.2.3) generation, transmission, and supply MERP letter to Mr. Vovk of NEURC April 25, Task 1.2 2017, on analytical note on alternative approach 8 Activity 1 April Ukrainian (Subtask 1.2.3) to establish RAB value to switch to incentive regulation Analytical note on alternative approach to Task 1.2 9 Activity 1 April establish RAB value to switch to incentive Ukrainian (Subtask 1.2.3) regulation MERP letter to Mr. Vovk of NEURC April 26, 2017, the first Draft Procedure on Tariff Formation Task 1.2 10 Activity 1 April for Thermal Energy Transport by Main and Local Ukrainian (Subtask 1.2.3) (Distribution) Heat Networks under Incentive- based Regulation
46 USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT Table 12. Most Important Documents and Materials Produced under MERP during Q15 of the Project # Activity Task/Subtask Month Document Title Language The first Draft Procedure on Tariff Formation for Task 1.2 Thermal Energy Transport by Main and Local 11 Activity 1 April Ukrainian (Subtask 1.2.3) (Distribution) Heat Networks under Incentive- based Regulation MERP letter to Mr. Vovk of NEURC April 27, 2017, on the first Draft Procedure on Tariff Task 1.2 12 Activity 1 April Formation for District Water Supply and Ukrainian (Subtask 1.2.3) Wastewater Treatment under Incentive-based Regulation The first Draft Procedure on Tariff Formation for Task 1.2 13 Activity 1 April District Water Supply and Wastewater Treatment Ukrainian (Subtask 1.2.3) under Incentive-based Regulation MERP letter to Mr. Mashliakivskyi of NEURC May Task 1.2 22, 2017, on Procedure / Rules for the 14 Activity 1 May Ukrainian (Subtask 1.2.3) Organization and Accounting by Licensed Types of Activities by District Heating Entities Procedure / Rules for the Organization and Task 1.2 15 Activity 1 May Accounting by Licensed Types of Activities by Ukrainian (Subtask 1.2.3) District Heating Entities MERP letter to Mr. Vovk of NEURC May 24, 2017 Task 1.2 on 3 Draft Procedures on Setting Tariffs, 16 Activity 1 May Ukrainian (Subtask 1.2.3) Determining the Regulatory Base of Assets and Regulatory Rate of Return for District Heating Procedure for Setting of Incentive-based Tariff for Subjects of Natural Monopolies Carrying out (or Task 1.2 17 Activity 1 May Intending to Carry out) Economic Activities on Ukrainian (Subtask 1.2.3) Thermal Energy Transportation by Main and Local (Distribution) Heating Networks Procedure for Determining the Regulatory Asset Base of Subjects of Natural Monopolies Carrying Task 1.2 18 Activity 1 May out (or Intending to Carry out) Economic Activities Ukrainian (Subtask 1.2.3) on Thermal Energy Transportation by Main and Local (Distribution) Heating Networks Procedure on Setting the Regulatory Rate of Return for Subjects Carrying out (Intending to Carry out) Thermal Energy Transportation by Task 1.2 19 Activity 1 May Main and Local (Distribution) Heating Networks Ukrainian (Subtask 1.2.3) and Centralized Water Supply and Sewage (without stating the size numeric value of the rate of return) Task 1.2 MERP letter to Mr. Vovk of NEURC May 29, 20 Activity 1 May Ukrainian (Subtask 1.2.3) 2017, on procedure for RAB determination Procedure for Determining the Regulatory Asset Task 1.2 Base of Subjects of Natural Monopolies Carrying 21 Activity 1 May Ukrainian (Subtask 1.2.3) out (or Intending to Carry out) Economic Activities on Centralized Water Supply and Sewage Task 1.2 MERP Letter to Mr. Vovk Of NEURC May 29, 22 Activity 1 May Ukrainian (Subtask 1.2.3) 2017, on tariff-setting procedure Task 1.2 Procedure for Setting of Incentive-based Tariffs 23 Activity 1 May Ukrainian (Subtask 1.2.3) (Thermal Energy Transportation) MERP letter to Mr. Mashliakivsky of NEURC June Task 1.2 2, 2017, on recommendations on considering 24 Activity 1 June Ukrainian (Subtask 1.2.3) special aspects about performance of utility companies in tariff model Task 1.2 Recommendations on Considering Special 25 Activity 1 June Ukrainian (Subtask 1.2.3) Aspects of Performance of Utility Companies in a
USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT 47 Table 12. Most Important Documents and Materials Produced under MERP during Q15 of the Project # Activity Task/Subtask Month Document Title Language Tariff Model MERP letter to Mr. Mashliakivsky of NEURC June Task 1.2 2, 2017 on Rules / Procedure of Accounting by 26 Activity 1 June Ukrainian (Subtask 1.2.3) Licensed Types of Activities in Centralized Water Supply and Sewage Sector Rules/Procedure of Accounting by Licensed Task 1.2 27 Activity 1 June Types of Activities in Centralized Water Supply Ukrainian (Subtask 1.2.3) and Sewage Sector Task 1.2 MERP letter to Mr. Vovk of NEURC June 09, 28 Activity 1 June Ukrainian (Subtask 1.2.3) 2017 on tariff-setting procedure Task 1.2 Procedure for Setting of Incentive-based Tariffs 29 Activity 1 June Ukrainian (Subtask 1.2.3) (Centralized Water Supply and Sewage) Presentation, Reforming System of Social Norms for Consumption of Housing and Communal 30 Activity 1 Task 1.3 April Ukrainian Services. USAID Project Recommendations (2 documents in .pdf and .pptx formats). MERP letter to Mr. Zubko of MinRegion May 9, 2017, on analysis of social norms for consumption 31 Activity 1 Task 1.3 May of housing and communal services; Ukrainian recommendations on the improvement of the norms MERP letter to Mr. Reva of MinSocPolicy May 9, 2017, on analysis of social norms for consumption 32 Activity 1 Task 1.3 May of housing and communal services; Ukrainian recommendations on the improvement of the norms MERP letter to Mr. Savchuk of SAEE May 9, 2017, on analysis of social norms for consumption 33 Activity 1 Task 1.3 May of housing and communal services; Ukrainian recommendations on the improvement of the norms Report on Analysis of Social Norms for Consumption of Housing and Communal 34 Activity 1 Task 1.3 May Ukrainian Services; Recommendations on the Improvement of the Norms Rules of Energy Labeling of Translucent Fencing 36 Activity 1 Task 1.4 June Constructions DSTU-N B V.2.6-ХХХ: 201Х (draft, Ukrainian first edition) 35 Activity 1 Task 1.5 June Videos – Your Home 2. Episodes 25‒29 Ukrainian Presentation, Financial (economic) Assessment of Alternative Energy Efficiency Measures to the 37 Activity 2 Task 2.2 April Preliminary Feasibility Study on Implementation of Ukrainian Energy Saving and Energy Efficiency Measures in 50 Public Buildings in City of Kremenchug. Presentation, Results of Energy Audits of 50 38 Activity 2 Task 2.2 April Ukrainian Public Buildings in Kremenchug City Regulation on monitoring of consumption of fuel and energy resources and water by budget 39 Activity 2 Task 2.3 May Ukrainian institutions financed at the expense of local budgets Sustainable Energy Action Plan until 2020 for 40 Activity 2 Task 2.3 June Ukrainian Chornomorsk City (4 documents) Sustainable Energy and Climate Action Plan for 41 Activity 2 Task 2.3 June Ukrainian Reni City until 2030 The procedures for introducing incentives for 42 Activity 2 Task 2.3 June Ukrainian institutions of the budgetary sphere, and officials
48 USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT Table 12. Most Important Documents and Materials Produced under MERP during Q15 of the Project # Activity Task/Subtask Month Document Title Language of local self-government bodies responsible for implementation of EE measures Regulation on the system of energy management 43 Activity 2 Task 2.3 June in budgetary institutions financed from the funds Ukrainian of local budgets Report on energy audits with recommendations for energy efficiency measures, renewable energy 44 Activity 2 Task 2.7 April Ukrainian sources, and investment projects for the SEAP of the City of Balta. Energy audit reports for 13 public and residential 45 Activity 2 Task 2.7 April Ukrainian buildings for the City of Balta (13 documents) Energy audit reports for 12 public and residential 46 Activity 2 Task 2.7 April Ukrainian buildings for the City of Izmail (12 documents). Report, Estimated Resource Potential of Biomass 47 Activity 2 Task 2.7 April Ukrainian for Biofuels in Odesa Oblast Energy audit reports for 20 residential buildings 48 Activity 2 Task 2.7 April Ukrainian for the City of Ivano-Frankivsk (21 documents) Final report, Preparation of a Preliminary Feasibility Study for Energy Efficiency 49 Activity 2 Task 2.7 April Improvement in 44 Budget Buildings in Ivano- Ukrainian Frankivsk City (together with annexes ‒ 82 documents) Prefeasibility study for implementation of energy efficiency measures and increased energy 50 Activity 2 Task 2.7 April Ukrainian efficiency of 50 public buildings in the City of Kremenchuk Reports on the results of energy audits of school buildings for representatives of 16 general 51 Activity 2 Task 2.7 April educational institutions of MERP partner cities ‒ Ukrainian winners of the competition for reducing electricity consumption (18 documents) Energy audit reports for 17 public and residential 52 Activity 2 Task 2.7 April Ukrainian buildings for the City of Reni (17 documents) Energy audit reports for 14 public and residential 53 Activity 2 Task 2.7 April Ukrainian buildings for the City of Yuzhne (15 documents) Preparatory materials for the feasibility study, Treatment of Solid Waste Lugansk Region: 54 Activity 2 Task 2.7 April Assessment of Solid Waste Landfills in Lugansk Ukrainian Region on Indicators of Profitability of Degassing and Electricity Generation Preliminary feasibility study on the modernization 55 Activity 2 Task 2.7 April of the Yuzhne City sanitation system (Revision 1: Ukrainian Outputs and preliminary estimates) The report, Development of Methods and 56 Activity 2 Task 2.7 April Adjustments of Connected Load of Buildings with Ukrainian Central Heating in Odessa City Regulations, Implementation of the Municipal 57 Activity 2 Task 2.7 May Energy System Management of Severodonetsk Ukrainian City Supporting materials for the program on solid 58 Activity 2 Task 2.7 May waste management in the Luhansk region for Ukrainian 2017‒2021 Preliminary feasibility study for the modernization 59 Activity 2 Task 2.7 May of the sewage pumping station KNS-1 and KNS-2 Ukrainian in Yuzhne City 60 Activity 2 Task 2.7 May Preliminary feasibility study, Replacement of Ukrainian
USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT 49 Table 12. Most Important Documents and Materials Produced under MERP during Q15 of the Project # Activity Task/Subtask Month Document Title Language Network Pumps and Reconstruction of the Automated Control System of the Technological Process of the Boiler House of District Heating in Yuzhne City Report, Development of Recommendations for 61 Activity 2 Task 2.7 May the Improvement of the Municipal Solid Waste Ukrainian Management System in Odesa City” (edition 1) Report, The Regulation on Creation of a System of Energy Management in the Communal 62 Activity 2 Task 2.7 May Ukrainian Enterprise KP “Teplopostachannya mista Odesy” in City of Odessa Report, Determination of the Thermal Load of a 63 Activity 2 Task 2.7 May Residential Building on Ac. Glushka avenue, 8. in Ukrainian City of Odessa, Odessa Region Report, Systematized Information on District 64 Activity 2 Task 2.7 May Ukrainian Heating Systems in the Odessa Region Results of the energy audit of the heating systems 65 Activity 2 Task 2.7 May Ukrainian of the KP "Dobro" in City of Dobropillya Energy audit report for secondary specialized 66 Activity 2 Task 2.7 May Ukrainian school No. 68, situated on Dozvilna str, 3, Lviv. Presentation, EU Policy on EE and RES at the 67 Activity 2 Task 2.7 May Ukrainian National and Regional Levels Presentation, Regional Energy Planning. The Sequence of Actions for the Development of the 68 Activity 2 Task 2.7 May Ukrainian Regional (Oblast) Plan for Sustainable Energy Development of the Odessa Region Presentation, Regional Energy Planning. EU 69 Activity 2 Task 2.7 May Member States’ Experience in Regional Energy Ukrainian Planning Report, Energy Scanning of Generating Capacities and Distribution Networks of the 70 Activity 2 Task 2.7 May Ukrainian Enterprise "Bakhmut-Energiya" Ltd. (in .doc and .pdf format) Reports on energy audit of 19 public and 71 Activity 2 Task 2.7 May residential buildings in the City of Bakhmut (20 Ukrainian documents) Presentation, Energy Audit of Heat Supply 72 Activity 2 Task 2.7 May Systems of KPP "Mariupolteplomerezha" in the Ukrainian City of Mariupol Reports on energy audit of 12 public and 73 Activity 2 Task 2.7 May residential buildings in the City of Myrnohrad, Ukrainian Donetsk Oblast (12 documents) Reports on energy audit of 17 public and 74 Activity 2 Task 2.7 May residential buildings in the City of Rubizhne, Ukrainian Lugansk Oblast (17 documents) Reports on energy audit of 12 public and 75 Activity 2 Task 2.7 May residential buildings in the city of Severodonetsk, Ukrainian Lugansk Oblast (12 documents) Task 2.3 Training materials (Presentations) on 76 Activity 2 Task 2.7 May Energy Management (Odesa region and Eastern Ukrainian Ukrainian cities) Reports on energy audit of 14 public and 77 Activity 2 Task 2.7 June residential buildings in the City of Dobropillya Ukrainian (stage 3) - 15 documents Energy audit report, Reconstruction of a Building 78 Activity 2 Task 2.7 June Ukrainian for Social Housing in Lyubashevka, Odesa Oblast
50 USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT Table 12. Most Important Documents and Materials Produced under MERP during Q15 of the Project # Activity Task/Subtask Month Document Title Language Preliminary feasibility study on the implementation of the project, Improving the Energy Efficiency of 79 Activity 2 Task 2.7 June Ukrainian Public Buildings in the City of Mariupol (2 documents). Preliminary feasibility study on the reconstruction 80 Activity 2 Task 2.7 June of the heat supply system of the KPP Ukrainian "Mariupolteplomerezha" in the City of Mariupol Energy audit reports of 40 public buildings in the 81 Activity 2 Task 2.7 June Ukrainian City of Mariupol (40 documents). Energy audit reports of 24 residential and public 82 Activity 2 Task 2.7 June buildings for the of Slavyansk, Donetsk Oblast (27 Ukrainian documents) Report on the energy audit of the KP 83 Activity 2 Task 2.7 June Ukrainian “Mariupolske VU VKG” of Mariupol City Supplementary materials for preliminary feasibility 84 Activity 2 Task 2.7 June Ukrainian study on degasification of landfill in Lysychansk Energy audit of district heating system of 85 Activity 2 Task 2.7 June Ukrainian Rubizhne, Luhansk Oblast (Revision 4) Energy audit of district heating system of City of 86 Activity 2 Task 2.7 June Ukrainian Odesa (Revision 5) Report, The Concept of Creation of a System of 87 Activity 2 Task 2.7 June Energy Management in the City of Odesa (first Ukrainian edition) Report, The Concept of Implementation of the 88 Activity 2 Task 2.7 June Municipal Energy Management System in the City Ukrainian of Yuzhne
USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT 51 D. SCHEDULES AND MILESTONES
The list of milestones for Q15 of the Project and completion status are presented in Table 13, Table 14, and Table 15.
Table 13. Q15 Milestones for Activity 1: Improve CE Regulatory and Legislative Enabling Environment Completion Task/Milestone Deadline Comments Status Task 1.1. Developing Enabling
Legislative and Policy Environment M 1.1.1. Law on Energy Efficiency in June 30, Completed Buildings adopted by Verkhovna Rada 2017 M 1.1.2. Law on Commercial Metering June 30, Completed adopted by Verkhovna Rada 2017 Preparation of draft for repeated M 1.1.3. Law on Housing and Communal June 30, Not second reading supported. New Services adopted by Verkhovna Rada 2017 completed deadline is September 30, 2017. Task 1.2. Assistance to National Energy & Communal Services Regulatory Commission (NEURC) Subtask 1.2.3. Improving Heat Tariff
Setting M 1.2.3.2. Procedure to establish RAB for May 31 Not To be developed by WB project. generating entities is developed 2017 completed M 1.2.3.4. Methodologies for calculating tariffs based on the incentive-based regulation in water & wastewater and district heating improved/developed. Apr 30, Partially Methodologies developed, but not M 1.2.3.5. Establishment of tariffs for water 2017 completed tested. & wastewater and district heating based on the incentive-based regulation tested and testing results approved by NEURC Task 1.3. Supporting Improvement of Social Safety Net for Vulnerable Population M 1.3.1. Recommendations on the May 31, improvement of the subsidy program Completed 2017 developed Task 1.5. Public Information and
Awareness M 1.5.1. Public information materials and PSAs on EE/CE and social safety nets May 1, 2017 Completed developed M 1.5.2. Production and broadcasting of the April 30, Completed
52 USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT Table 13. Q15 Milestones for Activity 1: Improve CE Regulatory and Legislative Enabling Environment Completion Task/Milestone Deadline Comments Status second season of the TV program, Your 2017 Home, completed
Table 14. Q15 Milestones for Activity 2: Promote Investment in CE Technologies and Applications Completion Task/Milestone Deadline Comments Status Task 2.2. Assisting Municipalities with Planning, Preparing, and Financing for Clean Energy Projects May 31, Partially All SEAPs except for Kyiv М 2.2.1 SEAPs approved by city councils 2017 completed approved by city councils
Task 2.3. Introduction of Energy
Management Systems
M 2.3.1. Two cities applied for ISO 50001 May 31, Not The City of Sumy is expected to certification 2017 completed apply for ISO certification in Q16.
Task 2.6. Preparation of Sustainable Energy Public Awareness Plan and Development of Related Materials M 2.6.1. Public events organized to May 31, Completed support SEAPs approval 2017
Task 2.3. Introduction of Energy Completed Management Systems
Table 15. Q15 Milestones for Activity 4: Enhance Capacity for the GOU in LEDS Completion Task/Milestone Deadline Comments Status Task 4.1. Strengthening Institutional Capacity in Planning LEDS-REDS M 4.1.1. National GHG Inventory Report April 30, Completed for 1990‒2015 submitted 2017 Task 4.2. Implementing LEDS-REDS through Support in Developing and Introducing Clean Energy Technologies and Energy Services M 4.2.1. LEDS-related interfactional union April 30, Completed established and operational 2017
USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT 53 E. PROBLEMS
The list of key challenges affecting MERP implementation are presented below: Lack of finance and limited capacity at the local (municipal) level prevent effective (rapid) implementation of EE projects identified in SEAPs and affect the implementation of energy management. The macroeconomic situation (e.g., interest rates) has a considerable effect on commercial and international financial institutions lending and investment. Despite the above factors, the Project continued to make substantial progress in accomplishing the SoW and corresponding Work Plan.
54 USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT
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USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT 55 F. PLANS
F.1 ACTIVITY 1: PLANNED ACTIVITIES IN QUARTER 16 F.1.1 TASK 1.1: DEVELOPING ENABLING LEGISLATIVE AND POLICY ENVIRONMENT Support adoption of the Law on Housing and Communal Services by VR. Support implementation of the Law on Housing and Communal Services (upon request of MinRegion and after adoption). Support implementation of the Law on Commercial Metering. Assist SAEE and other beneficiaries (upon request) to develop primary legal acts for DH market operations and domestic solid biofuel market operations. Conduct cost/benefit analysis (modeling) to assess potential introduction of DH market- based operations for selected cities and utility companies. Discuss the results with donor community, SAEE, MinRegion, and NEURC. Assist SAEE and other beneficiaries (upon request) to develop secondary legal acts for DH market operations (after primary legislation is adopted). On an as-needed basis (upon request), assist MinRegion expert groups to initiate and develop legal and regulatory documents on municipal energy sector reform. Assist GOU with implementation of National Action Plan on RE and/or EE by developing sub laws, incentive mechanisms, and methodologies. F.1.2 TASK 1.2: ASSISTANCE TO NEURC Subtask 1.2.3: Improving Heat Tariff Setting Improve the methodology for valuation of assets of natural monopolies and entities operating in adjacent markets and dealing with cogeneration (production of electric and heat energy), with focus on valuation of assets of entities operating in the centralized water supply and wastewater and DH sectors. The methodology was approved by the State Property Fund of Ukraine on March 12, 2013 (Resolution #293). Assist NEURC in adoption of draft normative legal acts on approval of “old” loans from IFIs Develop methodological recommendations on the long-term business plans (investment programs) for licensees in the water and wastewater sectors. Assist NEURC in adoption of the incentive-based tariff regulation package in the DH sector (NEURC Resolutions). Assist NEURC in adoption of the incentive-based tariff regulation package in the water and wastewater sectors (NEURC Resolutions). Develop and implement the service quality regulation system for the centralized heat and water supply and wastewater sectors.
56 USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT Subtask 1.2.4. Developing Utility Benchmarking Assist NEURC in public proceedings with MERP Rules/Regulations on accounting by licensed type of activity by entities in DH and water/wastewater (incentive-based regulation). Assist NEURC to develop regulatory reporting forms for licensees operating in the heating and centralized water supply and wastewater sectors who shifted to incentive- based regulation (or to improve the existing forms). Develop and implement a benchmarking procedure for determining the performance indicator to be set by a regulatory authority as a task for gradual reduction of unproductive costs. F.1.3 TASK 1.3: SUPPORTING IMPROVEMENT OF SOCIAL SAFETY NET FOR VULNERABLE POPULATION Develop concept paper for transition to monetized targeted assistance to consumers of housing and utility services. F.1.4 TASK 1.4: SUPPORTING EE STANDARDS Support development of State Standards of Ukraine aimed at implementation of Directive 2010/30/EU of the European Parliament and Council of 05/19/2010. Support introduction of energy management (ISO 50001) and energy audit (ISO 50002) standards in Ukraine F.1.5 TASK 1.5: PUBLIC INFORMATION AND AWARENESS Develop outdoor materials and video PSAs, as well as advertisements for social media on issues related to: – EE – Benefits of HOA creation – State and municipal loan compensation program for EE measures – Other topics upon request from MinRegion, SAEE, MinSocPolicy, GOU Develop informational materials on: – EE – Investments in EE in the residential sector (state and municipal programs) – Incentive-based tariff regulation (understanding these steps is a guarantee of effective work of communal enterprises) – Social protection measures for low-income consumers – Monetization of communal subsidies as a tool to stimulate EE in the residential sector Begin preproduction of a third season of the Your Home TV program to promote themes of CE/EE, HOAs as agents for EE reform in residential sector, and EE loan compensation opportunities; explain changes related to tariff reform and social safety net; highlight achievements and progress of EE reform in the residential sector resulting from the work of USAID/MERP and partners,
USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT 57 Support expert briefings for media on a range of story options, including benefits of EE in the residential sector, AE resources, benefits of HOAs, and incentive-based tariff reform. Hold regional workshops in alliance with SAEE to educate journalists and communications personnel at MERP partner city administrations on issues related to CE/EE and benefits of HOAs. The goal is to involve journalists in energy education and encourage them to work with public on these issues Disseminate information related to CE/EE, social safety net, and tariff reform through: – TV and radio – Roundtables and expert opinions – Call-in shows – Analytical articles in electronic and print media Promote topics through social media, MERP websites, partners’ websites, and Facebook pages. Cooperate with local HOA/CE RCs; communal service enterprises; Regional Social Protection Offices; Association of Ukrainian Cities; regional and local NGOs; and MERP partner cities to distribute information materials among residents of municipalities. Cooperate with manufacturers of EE materials and equipment, such as Henkel, Danfoss, Rehau, Vekka, and others to enhance outreach campaign on EE in MERP partner cities through: – Support of information/exhibition corners at HOA/CE RCs – Conducting joint public events Support wide outreach campaign through a range of activities in partner cities, such as Energy Efficiency Days, USAID Field Days, and Sustainable Energy Weeks. Support a telephone hotline and develop a range of materials to educate citizens on benefits of ownership (HOA development) as a primary motivating force for energy savings in residential buildings; state/municipal loan compensation programs on EE measures; counseling regarding EE measures implementation, their order, saving potential from each, etc. F.2 ACTIVITY 2: PLANNED ACTIVITIES IN QUARTER 16 F.2.1 TASK 2.2: ASSISTING MUNICIPALITIES WITH PLANNING, PREPARING, AND FINANCING FOR CE PROJECTS Provide assistance in adoption of SEAPs for MERP partner cities. Disseminate information on investment opportunities in partner cities to international financial institutions, private sector, and governmental institutions responsible for implementation of EE agenda. Produce a quarterly digest on investment opportunities and best practices, and disseminate the digest among key stakeholders Prepare investment proposals (prefeasibility studies, business plans, design documentation) for EE and CE projects for partner cities.
58 USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT On an as-needed basis, provide post-signing assistance (e.g., preparation of technical specifications and capacity building) to project implementation units in partner cities. Support implementation of CE demonstration projects in residential buildings by providing technical assistance and developing design documentation. F.2.2 TASK 2.3: INTRODUCTION OF ENERGY MANAGEMENT SYSTEMS Support certification of cities in energy management in accordance with ISO 50001. Use roundtables, webinars, and other communication venues to disseminate information about the experiences of certified cities to other cities that may seek certification. F.2.3 TASK 2.4: DCA LOAN GUARANTEE Conduct monitoring of utilization rate of USAID DCA with Bank Lviv. When requested by the bank, conduct training (capacity building) seminars with Bank Lviv. When requested by the bank, conduct analysis of project proposals. F.2.4 TASK 2.5: SUPPORT MECHANISMS THAT MOBILIZE PRIVATE SECTOR INVESTMENT Assist with investment attraction and implementation of municipal energy performance contracts (EPCs). Support development of CE projects based on PPP arrangements. F.2.5 TASK 2.6: PREPARATION OF SUSTAINABLE ENERGY PUBLIC AWARENESS PLAN AND DEVELOPMENT OF RELATED MATERIALS Hold periodic working group meetings on communication issues to adjust information strategy and ensure its successful implementation in cities. Ensure multifaceted public awareness campaign on EE/AE through development, distribution, and promotion of targeted materials (posters, brochures, infographic, PSAs) in MERP partner cities. Promote themes of EE/AE; explain changes related to tariff reform through – TV and radio – Roundtables and expert briefings – Call-in shows – Analytical articles in electronic and print media Conduct public hearings on SEAP, and support Sustainable Energy Weeks and EE Days in MERP partner cities. Support websites of beneficiaries, stakeholders, and partners by providing informational materials. Disseminate best practices. Develop materials (brochures/posters, etc.) and conduct a set of workshops for MERP partner cities to show potential of various AE sources in their regions.
USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT 59 F.2.6 TASK 2.7: IMPLEMENTING SUB-ACTIVITY 2 TASKS IN ODESA OBLAST AND UKRAINIAN TERRITORIES AFFECTED BY THE CONFLICT WITH RUSSIA Assist partner cities in eastern Ukraine and Odesa region in preparing energy management documentation, procedures, and tools. Conduct energy audits for key municipal service areas, key utility companies, and public buildings to identify the most promising long-term investment proposals, GHG emissions baseline, and reduction potential. Assist partner cities with development or improvement of energy plans and present them to stakeholders. Conduct public hearings on energy plans (SEAPs/SECAPs). Support approval process for energy plans by cities. Develop regional sustainable energy plan for Odesa Oblast with appropriate budget support. Prepare investment proposals (business plans, feasibility studies, project descriptions, cost estimates, and other documentation) for EE and CE projects for partner localities. Support establishing and/or transfer of Condominium Advisory Centers into CEACs to attract investments in CE projects in residential buildings. Support implementation of demonstration projects promoting CE use and energy conservation. F.3 ACTIVITY 3: PLANNED ACTIVITIES IN QUARTER 15 F.3.1 CROSS-CUTTING (ANTICORRUPTION) Support legislative acts (national and local) designed to fight corruption in municipal energy sector (in coordination with Task 1.1 activities). Support local anticorruption initiatives. Support collection, analysis, publication, and distribution of information on anticorruption. Disclose information to public (anticorruption monitoring) Conduct local press conferences, presentations, and discussions to advocate transparency and disclosure in the energy sector. Cooperate with NGOs, anticorruption watchdog organizations, and investigative journalists or agencies in conducting advocacy campaigns to increase transparency in the municipal energy and communal services sectors. F.4 ACTIVITY 4: PLANNED ACTIVITIES IN QUARTER 16 F.4.1 TASK 4.1: STRENGTHENING INSTITUTIONAL CAPACITY IN PLANNING LEDS- REDS Provide technical and expert assistance on 7th National Climate Change Communication Report to MinEcology. Provide support to MinEcology on implementing the Cabinet of Ministers Decree on approval of State Climate Policy Concept Action Plan and other supporting documentation.
60 USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT Assistance MinEcology with the LEDS Action Plan development process—draft LEDS Policy document, conduct broad stakeholders consultation process and presentation of the outcomes. Develop and support expert discussion of analytical reports on Paris Agreement provisions conducted in accordance with MinEcology request. Conduct analysis and develop analytical paper on municipal and installation level of MRV: lessons learned and recommendations. Provide ongoing technical and administrative support to MinEcology on climate change international activities, including but not limited to UNFCCC process. Provide technical and administrative support to State Working Group on LEDS Action Plan under MinEcology. Support GOU working groups to draft relevant legislation for LEDS policies and measures, performed in conjunctions with TASK 1.1. Provide administrative and technical support to state Inter-agency Commission on UNFCCC implementation meetings. F.4.3 TASK 4.3: DEVELOPING UNIFORM DATABASE ON LEDS-REDS AND EXCHANGING EXPERIENCES AND BEST PRACTICES WITH OTHER COUNTRIES PARTICIPATING IN EC-LEDS Population of UA-LEDS database www.lowemission.org.ua and transfer to partner agency The updated list of milestones for Q16 of the project is presented in Table 16, Table 17, and Table 18.
Table 16. Q16 Milestones for Activity 1: Improve CE Regulatory and Legislative Enabling Environment Task/Milestone Deadline Comments Task 1.1. Developing Enabling Legislative and
Policy Environment M 1.1.3. Law on Housing and Communal Services Sept 30, 2017 adopted by VR M 1.1.5. Laws for DH market operations registered in Dec 31, 2017 VR M 1.1.6. Draft secondary legislation to support introduction of DH market developed and submitted for Dec 31, 2017 discussion and comments Task 1.2. Assistance to National Energy and Utility
Regulatory Commission (NEURC)
Subtask 1.2.2. Capacity Building
M 1.2.2.1. Capacity of NECSRC improved Sept 30, 2017
Subtask 1.2.3. Improving Heat Tariff Setting M 1.2.3.3. Manuals are developed, agreed with July 29, 2017 NECSRC and published on website M 1.2.3.7. Quality of Services assurance mechanisms July 29, 2017 enacted by NECSRC Subtask 1.2.4. Developing Utility Benchmarking M 1.2.4.1 Rules on accounting by licensed type of Feb 28, 2017
USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT 61 Table 16. Q16 Milestones for Activity 1: Improve CE Regulatory and Legislative Enabling Environment Task/Milestone Deadline Comments activity in DH sector enacted by NECSRC. July 31, 2017 M 1.2.4.2. Rules on accounting by licensed type of activity in water & wastewater sector enacted by NECSRC M 1.2.4.3. Efficiency of operations system by benchmarking mechanisms enacted by NECSRC in DH sector July 29, 2017 M 1.2.4.4. Efficiency of operations system by benchmarking mechanisms enacted by NECSRC in water & wastewater sector Task 1.4. Supporting Energy Efficiency Standards M 1.4.1. Four new energy standards developed and July 31, 2017 approved Task 1.5. Public Information and Awareness M 1.5.3. National public awareness campaign to promote EE, energy conservation, and RE Sept 30, 2017 implemented
Table 17. Q16 Milestones for Activity 2: Promote Investment in CE Technologies and Applications Task/Milestone Deadline Comments
Task 2.2. Assisting Municipalities with Planning,
Preparing and Financing for Clean Energy Projects
М 2.2.1 SEAPs approved by the city councils Sept 30, 2017 М 2.2.2 CE demo projects in residential buildings Sept 30, 2017 supported Task 2.3. Introduction of Energy Management
Systems M 2.3.1. Two cities applied for ISO 50001 certification Sept 30, 2017
Task 2.5. Support Mechanisms that Mobilize Private
Sector Investment M 2.5.1. At least one ESCO/EPC for municipal end use Sept 30, 2017 EE initiated M 2.5.2. At least four PPPs initiated as a result of U.S. Sept 30, 2017 Government assistance Task 2.7. Implementing Sub-Activity 2 Tasks in Odesa Oblast and Ukrainian Territories Affected by the Conflict with Russia M 2.7.1 Local capacity built in municipal energy Sept 30, 2017 management М 2.7.2 Energy plans approved by local communities Sept 30, 2017
М 2.7.3 Regional energy plan developed and discussed Sept 30, 2017
M 2.7.4 At least 5 projects initiated and/or implemented Sept 30, 2017 with U.S. Government assistance
62 USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT Table 18. Q16 Milestones for Activity 4: Enhance Capacity for the GOU in LEDS Task/Milestone Deadline Comments Task 4.1. Strengthening Institutional Capacity in
Planning LEDS-REDS M 4.1.3. LEDS Action Plan process finalized and LEDS Sept 30, 2017 policy document developed
M 4.1.4. Paris Agreement Analytical Reports developed July 30, 2017
M 4.1.5. MRV Analytical Report developed Aug 31, 2017 M 4.1.6 State Climate Policy Concept Action Plan Sept 30, 2017 developed Task 4.2. Implementing LEDS-REDS through Support in Developing and Introducing Clean Energy Technologies and Energy Services
M 4.2.1. LEDS-related legislation proposals developed July 31, 2017 Task 4.3. Developing a Uniform Database on LEDS- REDS and Exchanging Experiences and Best
Practices with Other Countries Participating in EC-LEDS M 4.3.1. LEDS Database populated and operated by Sept 30, 2017 partner agency
USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT 63 G. PERFORMANCE INDICATORS
No reporting for the period.
64 USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT
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USAID MUNICIPAL ENERGY REFORM PROJECT – FIFTEENTH QUARTERLY REPORT 65
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USAID MUNICIPAL ENERGY REFORM PROJECT – FOURTEENTH QUARTERLY REPORT 1