Information Campaign on Energy Saving and Support of Condominiums

Investments Energy in Energy Efficient Schools Efficiency and Campuses Campaign Conservation Energy

Energy Management and Monitoring

groups of the Government and Parliament management and increasing fi nancial cred- to draft laws and regulati ons, as well as new ibility of home owners. normati ve and legal documents, and to en- In its work with the partner citi es, the sure their compliance with EU legislati on. USAID MHR Project assisted in seeking fi - This legislati ve work became the basis for nancing and involvement of the private positi ve transformati ons in the Ukrainian cit- sector for implementati on of public-private ies which received an opportunity to develop partnerships and implementati on of energy new practi ces and methodologies in the fi eld effi ciency projects in the communal sector. of energy effi ciency to increase their capacity and att racti veness for new investments. At the same ti me, the USAID MHR Proj- ect launched a multi -component nati onal With assistance of the Project experts, informati on campaign that included public the Law of Ukraine “On Establishment of educati onal acti viti es on energy effi ciency. the Nati onal Communal Services Regulatory The campaign raised the issue of Ukraine’s Commission” was draft ed and adopted. This dependence on energy imports, explained regulator has real opportuniti es to insti tu- the methods of effi cient use of heat in apart- ti onalize the best internati onal practi ces for ment buildings, and the benefi ts of creati ng transparent and predictable regulati on of condominiums and installing heat metering the municipal heati ng sector in Ukraine. Pri- systems in apartment buildings. The cam- marily, I am referring to full cost recovery tar- paign placed special emphasis on educati ng iff s, which provide for planning of suffi cient young people and implementi ng programs Dear partners, investments in the sector, and ensuring ap- of low-cost energy saving methods. Informa- propriate quality of customer service. I am truly happy to have this opportu- ti on acti viti es of the USAID MHR Project were nity to thank you for the fruitf ul cooperati on To strengthen the capacity of local gov- held to clarify to the public and the executi ve and achievements that we managed to make ernments to plan, manage and fi nance de- bodies of local governments the bene fi ts of together with you in four years of the USAID velopment of heati ng systems, the USAID proposed legislati ve changes, tariff reforms Municipal Heati ng Reform (MHR) Project in MHR Project selected 25 partner citi es for and measures implemented to ensure social Ukraine that was implemented by Interna- implementati on of pilot projects. The citi es guarantees. were selected as a result of a detailed review ti onal Resources Group. I congratulate and thank each of you of applicati ons from nearly 100 Ukrainian personally, all organizati ons, schools, mu- During this period, the USAID MHR municipaliti es that expressed their interest nicipaliti es, ministries and agencies that Project cooperated with the Government of in Project acti viti es and parti cipated in the committ ed to cooperate with us in order Ukraine and local authoriti es to implement competi ti on that was held immediately aft er to provide a huge and long-term success of positi ve systemic changes in the heat supply the launch of the Project in 2009. sector on three relevant levels: nati onal, re- our joint eff orts within the framework of the gional and consumer level. It helped to cre- Cooperati on with partner citi es covered USAID Municipal Heati ng Reform Project in ate the foundati on for a fi nancially viable and a wide range of acti viti es, including: analysis Ukraine. sustainable district heati ng sector that will of the conditi on of district heati ng systems, development of municipal energy plans, de- ensure providing of quality services to the Sincerely yours, velopment of the legal framework and the public, state agencies and local industries. Bil Tucker technical specifi cati ons of meters, imple- Chief of Party Since its incepti on, the USAID MHR mentati on of energy effi cient technologies, USAID Municipal Heating Project has provided support to the Govern- as well as introducti on of monitoring of the Reform Project in Ukraine ment of Ukraine in improvement of the legal Projects’ results. In additi on, the USAID MHR framework for implementati on of necessary Project contributed to creati on of condomin- reforms in the heati ng sector. Experts of the iums, condominium associati ons and hous- USAID MHR Project parti cipated in working ing cooperati ves, and assisted in improving

3 SUPPORT PROVIDED TO UKRAINE BY USAID MHR PROJECT ON THE NATIONAL LEVEL

During the four years of its activities in Ukraine, the USAID MHR Project worked closely with the Ministry of Re- gional Development, Construction and Housing and Communal Services (Min- Region), National Communal Services Regulatory Commission, Ministry of So- cial Policy, Cabinet of Ministers and the relevant committees of the Parliament, as well as other authorities to improve the legal framework for implementation of necessary reforms in the heating sector. Experts of the USAID MHR Project participated in the working groups of the Government and Parliament to amend laws and regulations, as well as to develop new normative and legal documents.

The project cooperated with the Center for Economic Reforms at the President of Ukraine, international financial institutions such as the World Bank, NEFCO and EBRD, and the Government to prepare and implement urgent re- Meeting of MinRegion Task Force on heating sector reforms forms in the field of energy efficiency. As a result of this cooperation the National Action Plan for Energy Efficiency in the Heating Sector was prepared, and was • Law on Peculiarities of Lease and Concession in the approved by a Resolution of the Cabinet Housing and Communal Services Sector; of Ministers. • Draft Law on Condominiums; The USAID MHR Project experts pro- • Draft Law on Energy Saving in Buildings; vided assistance in development of the key laws and draft laws to reform the • Draft Law on ESCO/EPC; heating sector, such as: • Draft Law on Metering of Energy Carriers in the Housing and Communal Services Sector; and • Draft Law on Improvement of Social Protection System.

4 Since its incepti on, the USAID MHR Proj- ect has provided technical support to the Government of Ukraine in establishment of the Nati onal Communal Services Regulatory Commission (Nati onal Commission). With the Project’s assistance, the Law of Ukraine “On Establishment of the Nati onal Communal Services Regulatory Commission” was draft ed and adopted. The Project has provided assistance to the Nati onal Commission in development of tariff methodologies and conducted trainings for the staff of the regulator and specialists of the heati ng uti liti es. To ensure the eff ecti ve operati on of the regulator, the Proj- ect passed to the Nati onal Commission internati onal methodologies on procedures of its acti viti es and on regulatory accounti ng, creati on of informati on systems for data transfer, as well as mechanisms for public hearings.

In cooperati on with Commissioners of the regulator, the USAID MHR Project helped to develop the law “On Incenti ve Regulati on Participation in round table on energy efficiency on the Basis of RAB Methodology.”

As a result of cooperati on, a new Tariff Setti ng Methodology, which includes incenti ves for energy effi ciency, was developed and approved. With the help of the USAID MHR Project, the Nati onal Commission has developed a Plan for gradual increase of tariff s to cost-recovery levels.

In additi on, the Benchmarking Methodol- ogy proposed by the USAID MHR Project was used by the Nati onal Commission for collec- ti on and comparison of data on performance of the district heati ng uti liti es.

With Project assistance, the Nati onal Commission and the Ministry of Social Policy have prepared a plan to improve social pro- tecti on of low-income consumers of communal services.

Meeting with management of the National Communal Services Regulatory Commission

5 MUNICIPAL ENERGY PLANNING

Kovel Slavutych Chernihiv Korosten Lutsk Rivne Romny Novohrad-Volynsky Kyiv

Chervonohrad Kupyansk Lviv Chuhuyiv Myrhorod Poltava Rubizhne Khmelnytsky

Vinnytsia Kremenchuk Komsomolsk Ivano-Frankivsk Kramatorsk Dolyna Kamyanets-Podilsky Alchevsk

Mohyliv-Podilsky Pavlohrad Dnipropetrovsk

Chernivtsi Kurakhove

Zaporizhia Cities - activities Nikopol Voznesensk 6 - Metering Assessment 18 - 20 DH Improved Business Operations

13 - 34 Demo Projects 8 - Promotional Campaign Kherson

11 - HOA Advisory- Centers 9 - 30 Energy Efficient Schools & Campuses

5 - Business Planning 5 - RTC Krasnoperekopsk Dzhankoy 25 - MEPs, Energy Audits & - ESCO Investment Catalogs 5 Simferopol Yevpatoria

Sevastopol

Activity map of USAID Project partner cities

Development of the municipal energy ducted energy audits of the heating system sumers is one of the most acute problems plans (MEP) is a mandatory practice in all and typical buildings of the city. Addition- of Ukrainian cities. Nevertheless, none European countries because the purpose ally, MEP includes analysis of the munici- of the cities had strategic documents for of MEP is to ensure sustainable municipal pal budget, macroeconomic indicators, de- mana gement of the energy sector. This is energy development with reduction of scription of problems to be solved for the why in 2010 the USAID MHR Project sug- overall energy consumption. MEP is a com- document’s planning period, a feasibility gested to local authorities a solution to the prehensive program that addresses the is- study for implementation of the necessary issue of energy sector development with sue of municipal energy supply and energy projects, as well as financial mechanisms the help of integrated resource planning consumption and is adopted by City Coun- for its implementation. methodology authored by a contractor of cils for a mid-term period (5 years). The Lack of proper quality energy supply the USAID MHR Project – the Bulgarian en- document is based on the previously con- services at affordable prices for the con- ergy efficiency center EnEffect. During the

6 three years of cooperation with the cities, effi ciency projects in the selected buildings, the USAID MHR Project has trained more Lviv the city had to fi nd UAH 30 million. than 200 specialists from the partner cit- Lviv is one of those citi es that can serve The city council received these funds ies to develop and implement Municipal as an example for other municipaliti es in through various internati onal programs Energy Plans. In addition, the Bulgarian terms of approaches and implementati on of based on the informati on and process of specialists have trained the trainers of five successful energy effi ciency and sustainable developing the MEP. Indeed, one of the im- Regional Training Centers were created to energy development projects. Lviv is also a portant secti ons of this document is an in- resolve the problem of lack of staffing po- pilot city of the USAID MHR Project and was vestment program that allows the city to at- tential for MEP development, energy audit one of the fi rst to develop and approve the tract fi nancial resources for energy effi ciency of buildings and energy management in Municipal Energy Plan and to sign the “Cov- projects. On the other hand, the loans and Ukraine. enant of Mayors” initi ati ve. grants from internati onal organizati ons are Thus, through dissemination of the Lviv MEP was developed in 2011 for the provided to the citi es only on the condi- practice of MEP development, a compre- next four years. This document became the ti on of existence and implementati on of the hensive approach to improved efficiency basis for approval of the Strategic Energy Ef- Municipal Energy Plan, which is the key for of the heating sector, with incorporation of fi ciency Acti on Plan (SEAP). This document transformati on of the city into an energy ef- benefits from implementation of energy ef- focuses mainly on communal services sector fi cient city. ficient measures for both energy consumer buildings. The 24 most energy-consuming Thus, thanks to the Municipal Energy and supplier, was applied in Ukraine for the buildings were selected for implementati on Plan created as part of collaborati on with the first time. of energy effi ciency measures and installa- USAID MHR Project, the city of Lviv not only MEP development, with incorporation ti on of heat controlling equipment. Among managed to identi fy the largest heat losses of mid-term perspective, resulted in raising the selected buildings there are kindergar- and sources of fi nancing for implementa- the interest of international banks and pri- tens, schools and hospitals that consume 18 ti on of energy effi ciency ac ti viti es, but also vate companies in investing funds in energy percent of the total municipal energy con- obtained a loan from the European Bank for efficiency projects. The saved funds of mu- sumpti on. Thus, due to MEP, the city has Reconstructi on and Development of € 20 nicipal budgets were allocated for further identi fi ed how to reduce energy consump- million and more than € 10 million in grant implementation of municipal energy effi- ti on and carbon emissions through imple- money from E5P. Also, Lviv received a loan ciency projects. mentati on of energy effi cient technologies to from NEFCO (Nordic Environment Finance achieve the goals of the “Covenant of May- Corporati on) for implementati on of energy As of today, 25 partner cities of the ors.” But to implement the planned energy effi ciency projects in the public buildings. USAID MHR Project have developed Municipal Energy Plans (MEP) with assistance of the experts from Bulgarian energy efficiency center EnEffect and five Regional Training Centers that were established in Ukraine with the Project’s assistance. This helped many of them to take a course towards energy efficiency and to join the European “Covenant of Mayors” initiative. According to the initiative, the cities plan to reduce energy consumption by 2020 by 20%, reduce greenhouse gases discharge by 20%, and to increase use of alternative energy sources by 20%. For these cities, MEP has become the basis for attraction of investments in energy efficiency. Condominium in Lviv before reconstruction Condominium in Lviv after reconstruction

7 Kramatorsk Kramatorsk joined the Covenant of May- ors in October 2012. Unti l that ti me, the city management had an acti ve positi on on reforming of the heati ng system and introducti on of energy effi cient measures to reduce heat losses in the networks and reduce heat consumpti on through modernizati on of buildings. Modernizati on was started on the initi ati ve of LLC Kramatorskteploenergo, which supplies heat and hot water to more than 60% of city residents and 70% of state budget organizati ons. The company was co-founded in 2007 by Contour Global (60%), a private U.S. investment company, and Kramatorsk City Council (40%) on the basis of the Kramatorsk CHP. In the period of 2007 to 2009, Contour Global invested about $20 million to upgrade the core and auxiliary equipment of the Kram- Signing of PPP agreement with Kramatorsk and ContourGlobal company atorsk CHP, which has made it possible to switch to coal as the main fuel, while observ- ing all environmental standards. One of the important tasks in imple- Financing of these measures amount- Att racti ng an investment company in the mentation of the MEP was reconstruction ed to UAH 4.0 million and was conducted energy generati on sector was one of the fi rst of the 3rd and 4th heat supply zones of with support of Contour Global and the steps of the Kramatorsk city government on the LLC Kramatorskteploenergo company with USAID MHR Project. The main result of co- road of transforming the city into an energy ef- replacement of the 3rd heat supply zone operation was applying a comprehensive fi cient one. main with a pre-insulated one intended approach to introduction of changes and The next step involved the city’s parti ci- for operation at an enhanced temperature upgrades aimed at saving energy resources pati on in the USAID MHR Project according to schedule; installation of plate heat ex- and ensuring reliability of the heating sys- the Memorandum of Cooperati on signed be- changers, energy efficient pumps and au- tem. For instance, the actually achieved tween the Kramatorsk City Council, the USAID tomatic control systems; and adjusting the reduction in electricity consumption in MHR Project, and Contour Global in 2009. network’s thermal and hydraulic operating the 2012-2013 heating season was UAH Experts of the USAID MHR Project, with regimes. 600,000 kWt/h, which amounts to more the help of the representati ves of the City Implementation of this reconstruction than 1,500,000 kWt/h, or over 1 million a Council and heat supply companies, con- helped in reducing the number of pipeline year. ducted an energy audit of the heat supply breaches and equipment down-time for re- In addition, the Municipal Energy Plan system and typical buildings in the city. The pairs. This improved reliability of the heat- developed with the help of the USAID MHR partners reviewed the fi nancial mechanisms ing system. Changing to an independent Project specialists became the foundation of implementi ng the energy effi ciency policy heat supply system arrangement made it for preparation of a business plan and at- underlying the Municipal Energy Plan (MEP) possible to localize intra-quarter breaches, traction of NEFCO loans for implementa- approved by the municipal government in as well as reduce the amount of charge wa- tion of energy efficiency projects in public 2010. A number of demonstrati on projects ter at the CHP, thus reducing expenses for buildings. were also implemented. electricity for pumps.

8 Kyiv The need to implement energy effi ciency projects in the capital as amplifi ed by the fact that over the past fi ve years payments for energy use have increased by fi ve ti mes, and reached UAH 1 billion in 2012. Realiz- ing that this is a great burden on the budget, the city administrati on was looking for ways and partners who could help to develop and implement energy effi ciency measures in the capital. These partners for the Kyiv City State Administrati on were the USAID MHR Proj- ect and energy company DTEK, which in July 2011 signed a trilateral Agreement on Coop- erati on. Having decided to keep oncourse for energy effi ciency, Kyiv also joined the “Covenant of Mayors” initi ati ve in November 2011, and undertook the corresponding ob- ligati ons. The first step towards energy efficiency within the framework of cooperation with the USAID MHR Project and DTEK company was development of the Municipal Energy Completion of MEP development in Kyiv in cooperation with DTEK company

Press-conference at the opening of the first Energy efficient kindergarten # 573 in Kyiv

9 Plan (MEP) for the capital, which provides In addition, implementation of Kyiv generation and will reduce budget expen- for a significant increase in energy effi- Municipal Energy Plan measures will im- ditures on payment for consumed energy ciency of the district heating system until prove the energy and environmental safety resources due to reduction of energy con- 2016. of the city, increase the share of renew- sumption by public sector institutions and As part of this task, it is planned to able sources in the balance of heat energy organizations. replace 539 km (in two-pipe calculation) of emergency repaired and worn sections of the heat networks, with pre-insulated pipe, installation of more than 4,000 individual heat sub-stations and reconstruction of the existing production facilities. Implementation of these tasks will reduce the need in heat energy by 20%, reduce wasteful loss of heat energy during heat carrier distribution, and reduce electricity consumption required for pumping during transportation. The MEP provides for comprehensive thermal modernization of 600 schools and kindergartens, which will reduce the need of heat energy in public buildings by more than 60%. In 2013, in cooperation with the USAID MHR Project, it is planned to implement the project using the mechanism of ESCO Energy Performance Contracting (EPC) worth USD 100 million, which con- Energy efficient kindergarten # 573 in Kyiv sists of a soft NEFCO loan, E5R fund grant, budget funds, municipal funds and other sources.

Energy Performance Contract (EPC) – is an agreement or set of agreements between the ESCO and the customer aimed at reduction of operating costs and environmental impact of buildings through installation of new energy efficient equipment. The cost of investments is repaid from the savings of energy or energy resources. This mechanism is completely new for Ukraine, although it has been widely used around the world for more than 40 years.

School # 233 in Kyiv after thermal modernization

10 TRAINING OF ENERGY AUDITORS AND INTRODUCTION OF ENERGY MANAGEMENT SYSTEM IN PARTNER CITIES

Municipal energy planning training for partner cities

Conducti ng energy audits of buildings is During the MEP training course, which The USAID MHR Project provided sup- a European practi ce tested by experience that consisted of three phases and lasted 6 port in creating an energy management allows esti mati on of energy use and potenti al months, the Ukrainian experts studied the system for all partner cities in Ukraine. In energy savings. In additi on, this method is an methodology of building scanning, learned addition, the importance of energy man- important stage in Municipal Energy Planning to conduct energy audits and financial agement in the cities is remarkable given (MEP). The method of energy auditi ng has calculations, and to implement energy ef- the fact that they are the main consumers been used for decades in internati onal prac- ficiency measures. In addition, 7 training of heat energy. Thus, introduction of the ti ce and it is extremely important for Ukraine, energy audits were conducted in 4 partner energy management structure will allow given Ukraine’s energy and economic depen- cities of the USAID MHR Project. After the controlling consumption, implementing dence on energy imports. third training session, the participants of energy efficiency programs and reducing In order to provide the Ukrainian spe- the course passed the exam and received the cost of energy in general. That is, it will cialists with methodology and software certificates for the use of licensed software greatly help to solve the issue of rational products based on Ukrainian and European for energy audits of the buildings. The soft- use of energy in buildings. standards and to ensure the possibility of ware product will help the Ukrainian ex- quickly conducting energy audits of build- perts to significantly improve the efficiency In order to provide proper human re- ings, as part of its cooperation with the of their work. sources in Ukraine in the system of energy cities, the USAID MHR Project has trained management, the USAID MHR Project as- professionals from 24 engineering and en- Within the framework of the USAID sisted in the establishment of advisory ergy servicing companies from 17 cities MHR Project, the trained specialists committees in all partner cities and cre- of Ukraine. A complex of energy auditing have conducted over 400 energy audits ation of the relevant energy management training activities was carried out by the of buildings and heati ng systems. departments in the city administrations. USAID MHR Project partner, the Norwegian company ENSI.

11 to the co-owners of apartment buildings in the CONDOMINIUM AS A FIRST STEP process of condominium establishment, their current operati ons, as well as in implementi ng TO ENERGY EFFICIENCY energy eﬃ cient improvements in co-owners’ IN RESIDENTIAL SECTOR buildings. The centers are established as sepa- rate structural units of the City Executi ve Com- mitt ees or as non-governmental organizati ons. Resource Centers for Development In both cases, achievement of positi ve results in operati on of such centers is possible thanks and Support of Condominiums to an ongoing interacti on between the government and the general public. Today, such Resource Centers are operati ng in Alchevsk, Vinnytsia, Dnipropetrovsk, Yevpatoria, Kamya- nets-Podilsky, Kyiv, Kramatorsk, Lviv, Rubizhne, Sevastopol and Kherson.

The USAID MHR Project, experts prepared three manuals to support creati on and development of condominiums: “Energy Effi cient Building Step by Step.” The fi rst manual in the series “Step One: Establishment of a Condominium” de- scribes the most effi cient ways to start work on establishment of a condominium. This subject is conti nued in the second volume “Step Two: Organizati on of Condominium Work”, which contains qualifi ed advice on organizati on of work with the co-owners, establishment of re- lati ons with the providers of housing and communal services, with the government authoriti es, as well as informati on Opening of the Condominium Resource Center in Lviv on how to protect rights and interests of Only the housing owner will care ef- to become a mass-scale phenomenon, and the condominiums in court. The third fecti vely for maintenance and preservati on there is a trend towards slowing-down in the manual in the series “Step Three: Capital of the housing stock, creati on of comfortable pace of establishment of these associati ons in Renovati on and Thermal Modernizati on living conditi ons, and implementati on of en- some citi es. This situati on is exacerbated by of Building” contains advice on how to ergy effi cient improvements. A condominium a rather small number of “success stories” for make a building energy effi cient. is a legal mechanism of decision-making in the existi ng condominiums. joint-ownership apartment buildings. The na- To help the citi es set up and develop the Working for the benefi t of co-owners, ti onal program of reforms and development condominiums, the USAID MHR Project, work- the Resource Centers are also helping the in the housing and communal services sector ing with local governments and non-govern- condominiums to work with the authoriti es envisages that 45,530 condominiums will be mental organizati ons, has built a network of and obtain fi nancial support for major renova- operati ng in Ukraine by the year 2015, i.e. Condominium Resource Centers. The centers ti ons, as well as to seek funding for energy ef- nearly 50% of all residenti al buildings. How- provide informati on and methodological as- fi ciency projects from internati onal assistance ever, establishment of condominiums is yet sistance, including assistance on legal matt ers, programs or business sources. Thanks to op- 12 erati on of the Resource Centers, the citi es are implementi ng an important task of increasing Advisory Assistance in Creation and Activities of Condominiums the number of responsible housing owners through the MHR Project Web Site: and improving energy effi ciency and comfort in their multi -apartment buildings. In order to increase access of the residents of apartment buildings to information on creation and management of condominiums, a forum was created Due to acti viti es of the Resource Cen- on the web site of the USAID MHR Project. Visitors of the site were able to leave ters, the informati on campaign on en- their questions and receive answers from the experts online. In addition, every ergy effi ciency and condominium de- registered user was able to participate in the discussions or create his own topic velopment, as well as trainings in the in the following categories: partner citi es, the USAID MHR Project has involved 118,000 residents of apart- creation and activities of the condominiums; ment buildings in condominiums over tariffs for housing and communal services; the three years of their operati on. Disseminati ng the idea of energy effi - energy saving; ciency among condominiums, the USAID social protection and protection of rightsof the consumers of MHR Project has implemented demon- housing and communal services; strati on projects in 10 condominiums and 20 typical residenti al buildings. examples of successful practice in partner cities.

Best Practices of Condominiums Lutsk: Assistance to Condominium in Implementation of Energy Eﬃ ciency Projects

As recently as in 2010, a nine-fl oor apartment building at 10 cluding: installati on of heat metering devices, modernizati on of the Peremohy Avenue in Lutsk looked like a ruin, even though built not system of heat and hot water supply of the building with installati on so long ago in 1978. Nevertheless, the structure was in an emer- of automated individual heat sub-stati on, heat insulati on of the build- gency conditi on both outside and inside: frayed façade walls, holes in the roofi ng, rott en plumbing, dark building entrance. Striving to save the building, its residents appealed to the local Housing Man- agement Offi ce (ZhEK); however, they never received support. Driv- en to despair, the residents called a meeti ng where they decided to fi ght the problems on their own. Thus, one of the most successful condominiums, called “Binom”, emerged in Ukraine in 2010. Having joined forces, the residents immediately started looking for technical experts who would help them deal with at least the most pressing problems, including the worn-out equipment of the heati ng and water supply systems. Thus, the condominium started its cooperati on with the Lutsk Communal Systems Energy Service Company (ESCO), which started a project on the building thermal modernizati on in 2010 and contacted the USAID MHR Project with a proposal on cooperati on. As a result, the Project provided fi nancial support in implementati on of a number of energy effi cient measures in the condominium building. In the course of implementati on, a comprehensive thermal modernizati on of the building was conducted, in- Condominium Binom after reconstruction

13 ing façade and replacement of windows in the (investor) is paying to the local heat provider Consequently, conclusion of EPC has made building entrances. All these measures were based on heat meter readings. The diff erence it possible to not only improve the quality and intended to save heat and provide as comfort- between the heat meter readings and the comfort in residenti al premises, but also save able indoor temperatures as possible, and en- tariff is a saving that is repaying the UAH 2.5 condominium money to take bett er care of the sure uniform distributi on of heat throughout million investment. The projected investment building site, plant new trees, make a playground all building fl oors. repayment period is 7-10 years, aft er which all for children, all of which has improved the quality Thanks to this cooperati on, 50% of heat the installed equipment will become the con- of life for residents of the whole neighborhood. was saved both in the fi rst (2010-2011) and in dominium’s property. Thus, the investor is Aft er positi ve experience with implementati on the second (2011-2012) heati ng seasons. As a interested in heat saving because only in this of the demonstrati on project, condominium result of introduced Energy Performance Con- way he can repay the invested funds, and the “Luchany” received a soft loan from the govern- tract (EPC), the residents pay 7% less than the condominium is interested in quick receipt of ment program at 3% per annum for energy ef- approved municipal heat tariff , and the ESCO the relevant property in ownership. fi ciency in Lutsk condominium buildings..

Alchevsk: Condominium Vostok-2003 – First Energy Efficient Building in Luhansk Oblast As seen from internati onal experience, minium “Vostok-2003”, was transformed into ment Fund – UAH 480,000 and funds of the it is the residents of an apartment building an energy effi cient building in 2011. residents of condominium Vostok-2003 – united in their wish to live in a comfortable As part of this cooperati on, the follow- UAH 100,000. environment who are the best partners of the ing acti viti es were implemented in the build- As a result of concerted cooperati on of government in developing an effi cient energy ing throughout 2011: old windows and bal- all parti es, Alchevsk now has the fi rst energy sector. Condominiums can act as such consci- cony door units were replaced with energy effi cient building in Luhansk oblast, which enti ous owners in Ukraine. effi cient units, two heat sub-stati ons with consumes 40% less heat energy than before To demonstrate the opportuniti es off ered weather-based controls allowing for auto- the thermal modernizati on. Its residents live by condominiums in improving energy effi - mati c adjustment of temperature according in warmth and comfort, and additi onally, they ciency and comfort in a residenti al building to to weather conditi ons were installed, as well pay less on the heati ng bills compared to their city residents, the Alchevsk municipal govern- as reconstructi on of all inter-panel joints ,and neighbors within the same housing district. ment joined its eff orts with the USAID MHR the building façade was insulated. The municipal government hopes that the Project. Thanks to this cooperati on, a com- Implementati on of the project was fi - project will also help establish condominiums mon fi ve-storey building (13, Hmyri Street), nanced with funds of the USAID MHR Proj- in the nearby buildings, and in other citi es of 125 dwellers of which had set up the condo- ect - UAH 1,300,000, ISD Alchevsk Develop- Luhansk oblast.

Condominium Vostok-2003 before reconstruction Condominium Vostok-2003 after reconstruction

14 Public-Private Partnership and Investments in Energy Efficiency

In its work with the partner cities, the USAID Proj- ect assists in seeking financing and involvement of the private sector in implementation of public-private partnerships and co-financing for implementation of the energy efficiency projects in the communal services sector. Partners of the USAID Project in this socially useful work are: energy company DTEK, Contour Global company, ISD Alchevsk Development Fund, Krymteplokomunenergo utility, energy servicing company “Lutsk Communal Sys- tems”. Due to cooperation with these partners, the USAID Project helped the cities to raise USD 175 million of public and private funds for the energy efficiency projects, including financing from international financial institutions, state and municipal budgets, commercial banks and private partners. Signing of PPP agreement with DTEK company and Pavlohrad

Pavlohrad: Energy Efficiency Projects in Public-Private Partnership with DTEK Company

The Pavlohrad secondary school # 19 (MEP). This strategic document, which serves energy performance of the building was only was due to be closed in winter because of as the guide for the city’s development in the about half of that needed for ensuring a com- unhealthy low temperatures in classrooms area of producti on, supply and consumpti on fortable temperature indoors. on more than one occasion. For instance, the of heat energy, has been draft ed with the help Within a short period, 850 m2of win- temperature in classrooms did not rise above of the USAID Project specialists in order to dows in the school building were replaced 120C on some days in winter. reduce consumpti on of municipal energy re- with energy effi cient windows, about 3,000 The situati on changed in 2011 when the sources and to ensure comfortable tempera- m2of venti lated facade with mineral wool Pavlohrad City Council, USAID Project and ture in buildings. heat insulati on was installed, and 400 m2 of DTEK Pavlohradvuhillya company formed a Earlier, the USAID Project specialists con- building basement wall was heat insulated. public-private partnership to pursue eff ecti ve ducted an energy audit of the school building. Also, the heati ng, water supply, and sewerage cooperati on in the fi eld of energy saving. The survey indicated that heat was lost due to pipe systems were modernized with replace- The secondary school # 19 building was the unsati sfactory conditi on of the building’s ment of damaged secti ons and the pipes were selected as a demonstrati on project for intro- structure which failed to conform to build- fl ushed. ducti on of energy effi cient technologies set ing norms, as well as transportati on losses As a result of the renovation efforts out in the Pavlohrad Municipal Energy Plan of heat from the boiler house. In fact, heat and implementation of thermal modern-

15 ization improvements, the temperature inside the school building increased to 210C which has provided comfortable conditions for all educational processes. In addition, according to expert calculations, the building consumed 40% less energy in the 2011- 2012 heating season than in previous heating seasons. This project is an important visible demonstrati on of the eff ecti veness and specifi c benefi ts for the community derived from co- fi nancing through public private partnerships on the local level. Building of school # 19 in Pavlohrad Reconstructed building of school # 19 before reconstruction in Pavlohrad

Yevpatoria: The City Implements MEP Due to Public-Private Partnership

According to conclusions of the specialists, Yevpatoria is further along with heating sector reforms than other Crimean cities. Key stages of implementation of the municipal energy plan envisioned reduction of the need for heat by 40%.

Sunny Yevpatoria is known for its won- derful resorts. The residents of this city located on Crimea’s southern coast seldom suffer from frosty temperatures. But the city’s obsolete heat supply system, worn- out equipment, and lack of modern energy efficient measures and heat consumption control units do not ensure comfort in the Yevpatoria City Polyclinic after thermal modernization apartments and are painful for the municipal budget. ner cities of the USAID MHR Project that energy audit of 15 public and private build- The city authorities for a long time were selected for implementation of pilot ings, as well as analysis of the condition of sought practical solutions, but moderniza- projects on reforming of district heating the heating systems were conducted. tion of the heating systems requires not systems based on the principle of co-fi- The results of the energy audit of the only capital investments but also modern nancing. In November that year, the Yev- heating systems of Yevpatoria branch of and efficient measures that help to increase patoria City Council and the USAID Project Krymteplokomunenergo utility and results savings of heat energy consumption and to signed a Memorandum of Cooperation for of energy audits of the buildings became reduce expenditures. the next two and a half years. the basis for drafting a Municipal Energy The solution was found when in 2009 First of all, within the framework of co- Plan (MEP), a mid-term document on heat Yevpatoria became one of the first six part- operation with the USAID MHR Project, an supply infrastructure development.

16 One of the MEP priority tasks included implementation of demonstration projects for energy efficiency improvement that envisioned both improvement of the heat supply sources and introduction of energy efficient heat consumption practices.

Experts estimated that implementation of MEP activities would save 30% to 40% of energy resources and, accordingly, of funds that could then be used for development of other municipal sectors.

In 2010-2011, pursuant to the MEP, the following demonstration projects aimed at formation of conscientious consumers for rational use of energy resources were implemented in the city:

Energy efficient project on replacement of outdated boilers with new energy efficient ones in Yevpatoria

1. Installation of heat carrier automated control systems in the heating systems of five buildings; 2. Thermal modernization of the Yevpatoria City Polyclinic; 3. Installation of frequency-regulated fan-drive unit in boiler house (135A, Internatsionalna Street) that is serving a residential district with 13,178 residents; 4. Replacement of inefficient NIISTU-type boilers in boiler house (61, Revolutsii Street) that is serving residential buildings housing 1,003 residents; and 5. Reconstruction and conversion from liquid fuel (fuel oil) to natural gas of boiler house at 1/2, Tuchyna Street that is serving 150 consumers.

Special mention should also be given condominium buildings) and one kinder- During the 2010-2011 and 2011-2012 to a wide-ranging information campaign garten (Kindergarten # 2 “Zolotyiklyuchyk”) heati ng seasons, the buildings with installed that focused on efficient energy use and in- in Yevpatoria. The system of metering and heat carrier control systems showed a reduc- troduction of an optional educational train- control for an apartment building costs ap- ti on in heat energy consumpti on of 15% to ing course “Energy Efficient Schools”. proximately UAH 60,000. These systems 30%, even without thermal modernizati on. In 2010, the heat carrier supply con- allow adjusting heat carrier temperature at The total saved heat energy in the 2010- trol systems (weather-based automatic the inlet according to preset parameters, 2011 and 2011-2012 heati ng seasons, in controls with a circulating pump in the depending on the ambient air tempera- comparison with the normati ve year, was heating system) were installed in four resi- ture, and they help to reduce heat energy approximately 690 Gcal, or 27% reducti on of dential buildings (two municipal and two consumption up to 30%. consumpti on.

17 The Yevpatoria City Polyclinic serves existi ng venti lati on system was renovated, energy consumpti on in the building decreased about one million residents and visitors of the and a modular gas boiler was installed. The by 46% in 2010-2011. In the heati ng season city per year. A number of energy effi cient municipal budget allocated UAH 1.9 million 2011-2012, total energy savings achieved improvements on thermal modernizati on of in its 2010 budget for major renovati on and were over 55%. the building were implemented here in 2010 implementati on of energy saving technolo- Subsequently, according to the Municipal within the framework of the USAID Proj- gies in the city polyclinic. The USAID project Energy Plan, two investment projects will be ect. The total cost of works was about UAH allocated UAH 1.2 million for reconstructi on implemented: thermal modernizati on in the 3 million. The walls and roof were thermally and heat insulati on of the polyclinic building. children’s hospital isolati on ward building and insulated, large and regular windows were re- Thanks to these measures, the build- installati on of weather-based controls in 27 placed with PVC insulati ng windows, the heating’s comfort level improved dramati cally public buildings. For implementati on of these ing system was overhauled, standard lighti ng and heati ng costs were signifi cantly reduced. projects, the city successfully raised investors’ was replaced with energy effi cient bulbs, the Compared to 2009-2010 heati ng season, total funds and Kyoto Protocol funds.

Chernihiv: Efficient Interaction with City Authorities According to experts’ assessments, this And now the children can wear shorts and T- specifi c demonstrati on project will allow the shirts, even sleep in their undershirts. They city to save up to UAH 600,000 in the next bring pajamas but we do not even put them fi ve years and, most importantly, will in- on because it is warm,” laughs Liudmyla. crease comfort for children and teachers. These transformati ons in the kindergar- “It’s a mercy that the city authoriti es ten became possible due to cooperati on of included our kindergarten in the list of the USAID Municipal Heati ng Reform Project demonstrati on projects according to and Chernihiv City Council, which on 5 July the Municipal Energy Plan developed 2011 signed an agreement on co-fi nancing of in cooperati on with the USAID Project,” the energy effi cient renovati on of Chernihiv Teti ana Puchyna, Director, enthusiasti - Kindergarten # 71. According to the terms of cally sums up as she stresses that her this agreement, USAID provided fi nancial as- colleagues from other kindergartens Opening of energy efficient kindergarten # 71 sistance worth UAH 0.9 million. In its turn, also hope for similar cooperati on in the in Chernihiv the Chernihiv municipal budget allocated UAH future. For more than two hundred children 1.1 million. and employees of Chernihiv Kindergarten The works on reconstructi on started in # 71, the winter of 2011-2012 was a really fall 2011. The old wooden windows were comfortable season. This is because ther- replaced with energy saving ones, external mal modernizati on of the building was com- walls were insulated, the new roof was con- pleted before the beginning of the heati ng structed, the entrance doors were replaced, season. As a result, the temperature in the the heati ng system was adjusted, and so on. premises, which hardly reached 16⁰C earlier, Liudmyla Meliukhina, teacher of group was raised to 22⁰C. This was a real gift to # 4, who works on the fi rst fl oor, above the the children who now do not have to wear basement says: “There was a nursery here. In “a hundred clothes”. Remembering the pre- the Soviet ti mes, the fl oor was heated from vious years, Nadiia Holubeva, teacher of the underneath. And then this heati ng was cut senior group, says: “Before the renovati on, off . It became very cold. Fungi appeared as a we had to wear everything we could: sweat- result. The case was reported to the Sanitary ers and jackets. And today I am wearing just Stati on. The parents were taking their children Energy efficient kindergarten # 71 in Chernihiv a blouse and I am not cold”. and transferring them to other kindergartens. 18 Information Campaign on Energy Saving and Support of Condominiums Within the framework of cooperation and heat losses in the multi-apartment During 2010-2012, as part of the with partner cities, the USAID Project con- buildings which are caused by negligence information campaign, 1,400 billboards ducted a national information campaign of the citizens in energy efficiency is- were placed in Project partner cities, and aimed at increase of personal responsibil- sues and are the most pressing problems regional and municipal TV channels were ity of the Ukrainian citizens for efficient for this country. Objectives of the public airing video PSAs with information messages energy consumption in multi-apartment education were to develop responsible at- on Ukraine’s energy dependence and telling buildings. The slogan of information mes- titudes of the citizens to consumption of about the practical and low-cost steps that sages was “Save Heat – Save Ukraine!” The energy resources and personal responsibil- the consumers of communal services may campaign was devoted to the problems of ity for heat consumption and comfort in take to save heat in their homes. Ukraine’s dependence on imported energy their homes.

Activities on Condominium Development

In 2011-2012, an information cam- boards featured a common situation of paign promoting creation and develop- multi-apartment buildings, where the in- ment of condominiums was conducted in habitants in each apartment feel separat- Kyiv. The billboards and city-street signed and indifferent to the general comfort

19 in the building. The posters for this cam- pile of problems? Get together and create Project web site address where informa- paign were designed by JWT creative agen- a condominium!” and “Be at home in tion on how to create and manage a con- cy in two variants, one depicting a multi- your house! Create a condominium!” dominium in the most effective way could storey building and slogan “Your house is a The posters also featured the USAID MHR be found.

Heat Saving Season in Ukraine - Teplomania

Singer Alyosha – headliner of the USAID MHR Project information campaign and “Heat Saving Season” in Ukraine

In January-March 2011, the USAID gala concert was devoted to one aspect of conservation in their homes. The headliner MHR Project, Ministry of Housing and Com- how one can warm himself, can save heat in and active participant of the USAID MHR munal Services of Ukraine and the Ukraini- his apartment, city or country as a whole: Project information campaign was Alyosha an showbiz stars held a Heat Saving Season Teplo Fashion, TeploFengShui, Teplo City – Ukraine’s representative at the Eurovi- in Ukraine (Teplomania). The main task of and Teplo Ukraine. During the concerts, at- sion contest in Oslo in 2010. The project this activity was to develop a thoughtful at- tended by more than 4,000 people, quizzes was also supported by the groups Alibi, titude oft he young generation to the use on energy efficiency were conducted with Vasyl Bondarchuk, Katia Buzhynska, Para of energy resources, as well as to attractat- showbiz stars and guests, interesting facts Normalnykh, Pavlo Zibrov, Max Barskykh, tention to the problem of Ukraine’s energy and advice about how to get warm in sim- Lyuba Fomenko , XL Deluxe and others. As dependence. Four gala-concerts were con- ple and inexpensive ways were presented. a result of this cooperation, compact discs ducted in January-March 2011. They were The total number of TeplomaniaTV viewers were issued with advice from the celebri- part of the specially developed TV project was about 7 million. The Ukrainian show- ties on efficient energy consumption, as “Teplomania” aired on the Novy Kanal TV biz stars were involved in the campaign by well as their position on the importance of channel in the program Showmania. Every sharing their personal experiences of heat supporting energy saving in Ukraine.

20 Information Campaign “Heat Meter Installation”

Beginning from March 2012, new USAID MHR Project billboards appeared in Kyiv and other Ukrainian citi es. Bright blue billboards with the slogan “Save. Pay Only for What You Have Consumed. Install a Heat Meter in Your Building!” were developed in cooperati on with JWT creati ve agency. The new informati on campaign was aimed at informing the public about beneﬁ ts of heat meter installati on in their buildings. Additi onally, the posters contained a link to the relevant secti on of USAID MHR Project web site with exhausti ve informati on on the beneﬁ ts and procedures of heat meter installati on (www.mhrp.org.ua).

Information Campaign in Metro

Advertising in the metro (subway) about low-cost energy saving measures. station TV monitors. The campaign lasted was another phase of the national informa- In addition, six video PSAs about Ukraine’s through the end of the 2012 heating season. tion campaign of the USAID MHR Project. dependence from fuel imports and the The posters and video PSAs were From November 2011, posters were placed necessity of saving heat in multi-apartment designed by JWT creative agency and Lime along the escalators to remind consumers buildings were broadcast on the metro Lite Studio.

21 Energy Efficient Family Contest

From November 2011 through March included coverage of the energy saving apartments conducted by specialists of the 2012, the USAID MHR Project together methods implemented in their apartments Municipal Enterprise “Project implementa- with energy company DTEKand the Kyiv City on the contest page in Facebook and writ- tion Unit of Kyiv Public Buildings Energy Ef- State Administration conducted the Energy ing of a final essay about energy efficiency. ficiency Project”, and the spots of highest Efficient Family Contest on the social net- On 25 September 2012, two contest energy losses were identified. Then, based work Facebook. Participants of the contest winners were awarded, they both took a on the results of this energy audit, energy were Kyiv families interested in implemen- thorough approach to energy saving and company DTEK replaced old windows and tation of energy efficient measures in their implementing of low-cost energy efficient balcony doors with energy efficient ones. apartments. The contest was open to all methods in their apartments, and fulfilled The idea of the contest and its admin- Kyivans, irrespective of their age and mari- all conditions of the contest. As rewards, istration in Facebook belong to the USAID tal status. The main contest requirements the winners received energy audits of their Municipal Heating Reform Project.

Energy Efficiency Days in Partner Cities

Within the framework of the USAID Project information campaign, energy efficiency information fairs were conducted in Kyiv, Lviv and Kramatorsk in cooperation with the city councils. They were attend- ed by more than a thousand children and adults in every city. During these events, all volunteers were able to participate in the interactive games, contests and quizzes on energy saving and energy efficiency. The winners were presented with gifts: hats, scarves, canvas bags, pins, pens with the Municipal Heating Reform Project information campaign logo “Save Energy – Save Ukraine!” In addition, during the Energy Efficien- cy Days, the children concert groups and participants of the Energy Efficient Schools Program performed, and an information kiosk was set-up. One could learn from the kiosk about saving heat in multi-apartment buildings and receive information leaflets “10 Tips to Save Heat” and manuals on establishment of condominiums.

USAID MHR Project information kiosk at Energy Efficiency Day in Lviv

22 Energy Efficiency Day in Kramatorsk

Energy Efficiency Day in Kyiv

23 ENERGY EFFICIENT SCHOOLS AND CAMPUSES Implementation of Energy Efficient Schools Program and school wall newspapers were issued along with other activities. The methodological basis for the Pro- gram are the Schoolchildren Manual for Op- ti onal Course in Forms 6-8 and the Teachers’ Manual for Opti onal Course in Forms 6-8. These manuals were developed by the specialists of the Municipal Development Insti tute as part of the USAID Municipal Heati ng Reform Project. In total, participants of the Program that was implemented in two phases in 2009-2010 and 2010-2011 school years were 24 secondary schools from 8 partner cities of the USAID MHR Project: Lviv, Lutsk, Kadria Safiulina – author of the manuals Kramatorsk, Vinnytsia, Yevpatoria, Kurak- for the Energy Efficient Schools Program hove, Poltava and Khmelnytsky. Results of the questi oning conducted In order to assist Ukraine in education among 387 schoolchildren, 360 parents and of responsible and conscientious future 142 teachers in 12 schools of Phase II confi rm consumers of housing and communal ser- that the goal of the Energy Effi cient Schools vices who know how to save and use heat Program was achieved: change of habits energy economically, and to pay for the and behavior to more energy effi cient ones received services on time, the USAID MHR was registered in 94% of parents and 92% of Methodological Council at the Ministry of Project has developed and implemented schoolchildren; 100% of schoolchildren from Education, Science, Youth and Sports and the Energy Efficient Schools Program in 24 pilot classes parti cipated in heat audits at was “approved for use in the secondary Ukrainian schools. school and at home; 98% of schoolchildren schools.” In every participating school, experi- suggested to the parents and implemented In 2013, in cooperation with DTEK, the mental classes were selected, and their energy saving measures at home. 96% of USAID MHR Project extended the Energy students, as an optional course, mastered questi oned parents and 99% of teachers Efficient Schools Program in 11 secondary the fundamentals of heat supply and heat consider this Program useful for children and schools of Kyiv. In this new phase, the Kyiv saving, visited the municipal heating utili- support the idea of its further implementa- schoolchildren of forms 6-8 not only mas- ties, conducted heat audits at school and at ti on at school. ter the fundamentals of energy saving but home. Furthermore, in every city, special- As a result, the package of scientific also develop projects aimed at reduction of ized school meetings, informational radio and methodological materials of the Energy heat and electricity consumption in their briefings, poem and drawing contests on Efficient Schools Program was considered schools. Implementation of the best five heat conservation issues were conducted, by the Commission of the Scientific and projects will be financed by DTEK. .

24 Introduction of the Energy Efficient Schools course for the students of grades 6-8

25 Implementation of Energy Efficient Campuses Program Within the framework of the public the same name developed by specialists University of Ukraine “Kyiv Polytechnic In- education work with the young genera- of the Municipal Development Institute sti tute”, Nati onal University of Biological Re- tion, the USAID MHR Project specialists (MDI) within the framework of the USAID sources and Environmental Management of have developed and implemented the Municipal heating Reform Project. With Ukraine, and Nati onal Academy of Housing Energy Efficient Campuses Program in support of the USAID MHR Project, the and Communal Sector. six higher educational establishments of pilot universities also received sets of in- Due to parti cipati on in the Energy Ef- Ukraine. Task of the Program is to form in struments for measuring and conducting ﬁ cient Campuses Program, a systemic au- the students of higher educational estab- energy audits. dit of resource consumpti on in the student lishments a new type of thinking based on Just like the school program, the univer- campuses and in the universiti es was in- understanding the value of consumed re- sity program was implemented in two phas- troduced on a regular basis; young people sources, positive impact of resource saving es. Phase I started in the 2010-2011 school started paying more att enti on to energy and on the environment, climate preservation year, and Phase II in the 2011-2012 school resource conservati on, primarily through di- and sustainable development, and their year. Three universiti es took part in imple- rect parti cipati on in energy saving measures development as conscientious and respon- mentati on of the Program Phase I: Nati onal that will ulti mately contribute to economical sible consumers of housing and communal Forestry University of Ukraine (NLTU Ukraine) consumpti on of resources. services. from Lviv; Nati onal Yurii Kondrati uk Techni- As a result, the manual “Energy Saving The basis of support for the Program is cal University from Poltava; Khmelnytsky Na- in Campuses” received approval of the Min- an educational and methodological package ti onal University from Khmelnytsky. Three istry of Educati on, Science, Youth and Sports that consists of the manual “Energy Saving Kyiv universiti es took part in implementati on for its use in all public higher educati onal es- in Campuses” and a collection of tasks of of the Program Phase II: Nati onal Technical tablishments.

Conference of the Energy Efficient Campuses Program