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ENG - UN CC:Learn

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EUROPE AND THE COMMONWEALTH OF<br />

INDEPENDENT STATES<br />

UKRAINE<br />

Market Solutions Drive Efficiency and Energy Conservation 1<br />

SPOTLIGHT<br />

CLIMATE CHANGE<br />

QUICK FACTS<br />

Total <strong>UN</strong>DP-GEF and Co-Finance: $9,308,290<br />

Total <strong>UN</strong>DP and Co-Finance: $900,000<br />

Total: $10,208,290<br />

POLAND<br />

Lviv<br />

ROMANIA<br />

BELARUS<br />

MOLDOVA<br />

Odessa<br />

Black<br />

Sea<br />

Kharkiv<br />

UKRAINE<br />

Ukraine is one of the least energy efficient countries in the world, with the highest<br />

emissions levels per unit of GDP among the Commonwealth of Independent<br />

States, and significantly exceeds the levels in most European countries. Ukraine’s poor economic conditions and the corresponding<br />

severe drop in the level of services, as well as global fuel price increases from 2003-2005 have exacerbated the situation.<br />

In 2003 the city of Rivne competed against 15 other Ukrainian municipalities, winning the opportunity to develop an energy<br />

savings consulting organization, or “ESCO” to address the poor functioning of the city’s heat and hot water supply system. With<br />

a US$ 2 million grant from the GEF, <strong>UN</strong>DP assisted Rivne develop ESCO-Rivne, a public-private partnership that is a wholly<br />

municipally-owned private corporation devoted to refurbishing municipal heat generation systems, and developing of a market<br />

for energy efficiency ideas.<br />

The first phase of the project has made significant achievements in improving the overall capacity<br />

of ESCO-Rivne for implementing energy efficiency activities in the municipal district heating<br />

sector. An Energy Efficiency Plan for Rivne has been prepared and presented.The Plan covers<br />

all areas of heat and electric power generation, distribution and consumption in Rivne, and<br />

contains a proposed strategy for the implementation of energy efficiency measures. In further<br />

support of this project, the Prime Minister and <strong>UN</strong>DP’s Executive Board have visited<br />

the site.<br />

Emissions reduction from the period June-December 2004 was 7,800 tons of CO2 equivalent.<br />

In addition, heat loss from the water pipes has since dropped from 22-25% to 6-8%,<br />

resulting in reduced natural gas use and emissions. Finally, as a result of <strong>UN</strong>DP’s resource<br />

management and capacity development assistance, 50,000 inhabitants of one of the central<br />

neighbourhoods now receive 24-hour hot water and heating, and the municipality has cut its<br />

energy bill by one-third, a cost savings of $100,000 per month.<br />

Kiev<br />

Donetsk<br />

RUSSIA<br />

264

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