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Energy
Eastern Europe and CIS
Some key challenges and opportunities



                     New York, 3 October 2012
                                Martin Krause
                                        UNDP
Energy as a development issue in Central Asia


                                                  Premises Category                     Temperature ⁰C

                                                  Classroom: 1st degree                       6,9
                                                  Classroom: Russian language # 1             6,4
                                                  Classroom: Russian language # 2             7,1
                                                  Staff room                                  7,7
                                                  Classroom: 3rd degree                       7,8
                                                  Classroom: 4th degree                       9,7
                                                  Classroom: English language                 8,1
                                                  Classroom: 7th degree                       5,1
                                                  Classroom: 2nd degree                       5,7
                                                  Corridor                                    4,35




Heat supply system and in-door temperature in a representative rural school in Central Asia

                                                           Sources: UNDP-GEF Project report, Uzbekistan, 2010   1
Energy Efficiency in Buildings



BEFORE       - Savings on electricity/ hot water
                bills

             - Increased living comfort
             - Reduction of GHG emissions

             - Employment opportunities
AFTER
             - Reducing energy imports




                        Source: UNDP/GEF Project Booklet, Bulgaria   2
Energy – Emissions – Vulnerabilities in Karakalpakstan, Uzbekistan


                                         • Karakalpakstan lost 20% of GDP
                                           during the drought of 2000

                                         • Climate change increases frequency
                                           of droughts

                                                 1.0                     Karakalpakstan

                                                 0.8

                                                 0.6

• # of days with higher than 40oC more           0.4

  than doubled in Karakalpakstan and             0.2
  wider Aral region
                                                  0
• Aridification = Stress on water                      1980 1983 1986 1989 1992 1995 1998 2001 2004 2006

  resources = falling yields and land
  productivity = already observed


                                                                                                           3
UNDP-supported Energy Portfolio in ECIS
UNDP-GEF Sustainable Energy Por olio in $ Grant/ 600m $ Co-financing
              63 programmes/ 166m
           Europe and CIS
                                                                           Energy efficiency and
Energy Efficiency         Renewable Energy   Sustainable Urban Transport   conservation:
                                                                           $100m (GEF) + $371m in
                                                                           co-financing


                              11%
                                                                           Renewable energy (on-
                                                                           grid, off-grid, thermal):
                                                                           $52 m (GEF) + $133m in
                                                                           co-financing
                    25%


                                              64%                          Sustainable urban and
                                                                           transport systems:
                                                                           $14 m (GEF) + $ 96m co-
                                                                           financing




                                                                                                       4
Energy Challenges in context of SE4ALL


                                                                       Creating conditions
                           Energy Inefficiency                         for public and private
                                                                       investments in energy
                                      Energy Security, Access and      efficiency and
                                      Inefficiency
                                                                       renewable energy
                                                                       projects:

                                                                       - Removing Barriers
                        Energy Security and Access
                                                                       related to legal,
                                                                       institutional,
                                                                       administrative,
                                                                       financial, professional
Energy Use/Capita and Energy Intensity in Central Asia, 2008
                                                                       skills
                                                                    Sources: Non-OECD and OECD Energy Balances 2009   5
Energy Inefficiencies




                        6
Energy Efficient District Heating - Armenia

- New legal and regulatory framework
   for rehabilitation of DH systems,
   including feed-in tariff for power
   generation

- USD 10m direct foreign (private)
   investments leveraged into new DH
   system (Avan district of Yerevan, 213
                                           Multi-apartment panel building with
   buildings, 30.000 residents)            exhaust chimney from gas heater
                                           installed in one apartment

- System features combined heat and
   electricity and introduced apartment
   level metering

- 640 new contracts signed between
   customers and heat supply
   companies in the pilot areas                              Heat meter installed at the entrance to an apartment in
                                                                            Avan district of Yerevan         7
                                           Source: UNDP-GEF Project Report, photos by Grant Ballard-Tremeer            7
Energy Efficient Buildings - Turkey

                                Reduce energy
                                consumption and GHG
                                emissions in buildings
                                by

                                - raising building
                                    energy performance
                                    standards
                                -   improving energy
                                    enforcement of
                                    building codes

- enhancing building energy management and
- introducing EE integrated building design approach

                                                       8
Shifting from Fossil Fuels to Clean Sources




                                          9
Renewable Energy




               10
Montenegro – Small Hydro Power
                                            Issue:
                                            30% of electricity imported
                                            Only 17% of hydro potential used

                                            Action:
                                            Project intervention: Create conditions for sHPP by
                                             simplifying application procedures
                                             collecting basic data for investment decisions
                                             setting attractive but competitive business terms
                                              for investors
Preparation of pilot project municipality
Andrijevica                                  Streamlining tendering process

                                            Results:
                                            Successful tender for 10 water streams
                                            Spatial planning guidelines
                                            Simplified admin. procedures >1MW power plants
                                            23 sHPPs getting construction license and additional
                                            12 sHPPs starting same procedure
                                                                                                   11
In Summary…
 Energy is closely connected to human development
 Energy IN-efficiency deprives people, municipalities, governments
    of resources and causes damage (global warming)
   Opportunities for public and private investments in EE and RE are
    huge – but significant barriers exist
   SE4ALL is a chance to accelerate efforts, create a conducive
    environment for public and private investments in EE, RE


Tajikistan, Armenia, Montenegro and Kyrgyzstan have already made
formal commitments to SE4ALL.
UNDP-RBEC will continue to
      advocate for SE4ALL;
      support to countries to formulate national action plans;
      creating partnerships, in particular with the private sector;
      technical support for RE and EE action at country level.


                                       Photos: UNDP-GEF Projects in Armenia, Ukraine, Kazakhstan and Croatia   12
How can we support creation of conditions for
investments in Energy Efficiency and Renewable
Energy in the context of SE4ALL???



     Many Thanks
     Martin Krause
     Team Leader – Environment & Energy
     ECIS

     martin.krause@undp.org

                                                 13

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Energy Challenges and Opportunities in Eastern Europe and Central Asia

  • 1. Energy Eastern Europe and CIS Some key challenges and opportunities New York, 3 October 2012 Martin Krause UNDP
  • 2. Energy as a development issue in Central Asia Premises Category Temperature ⁰C Classroom: 1st degree 6,9 Classroom: Russian language # 1 6,4 Classroom: Russian language # 2 7,1 Staff room 7,7 Classroom: 3rd degree 7,8 Classroom: 4th degree 9,7 Classroom: English language 8,1 Classroom: 7th degree 5,1 Classroom: 2nd degree 5,7 Corridor 4,35 Heat supply system and in-door temperature in a representative rural school in Central Asia Sources: UNDP-GEF Project report, Uzbekistan, 2010 1
  • 3. Energy Efficiency in Buildings BEFORE - Savings on electricity/ hot water bills - Increased living comfort - Reduction of GHG emissions - Employment opportunities AFTER - Reducing energy imports Source: UNDP/GEF Project Booklet, Bulgaria 2
  • 4. Energy – Emissions – Vulnerabilities in Karakalpakstan, Uzbekistan • Karakalpakstan lost 20% of GDP during the drought of 2000 • Climate change increases frequency of droughts 1.0 Karakalpakstan 0.8 0.6 • # of days with higher than 40oC more 0.4 than doubled in Karakalpakstan and 0.2 wider Aral region 0 • Aridification = Stress on water 1980 1983 1986 1989 1992 1995 1998 2001 2004 2006 resources = falling yields and land productivity = already observed 3
  • 5. UNDP-supported Energy Portfolio in ECIS UNDP-GEF Sustainable Energy Por olio in $ Grant/ 600m $ Co-financing 63 programmes/ 166m Europe and CIS Energy efficiency and Energy Efficiency Renewable Energy Sustainable Urban Transport conservation: $100m (GEF) + $371m in co-financing 11% Renewable energy (on- grid, off-grid, thermal): $52 m (GEF) + $133m in co-financing 25% 64% Sustainable urban and transport systems: $14 m (GEF) + $ 96m co- financing 4
  • 6. Energy Challenges in context of SE4ALL Creating conditions Energy Inefficiency for public and private investments in energy Energy Security, Access and efficiency and Inefficiency renewable energy projects: - Removing Barriers Energy Security and Access related to legal, institutional, administrative, financial, professional Energy Use/Capita and Energy Intensity in Central Asia, 2008 skills Sources: Non-OECD and OECD Energy Balances 2009 5
  • 8. Energy Efficient District Heating - Armenia - New legal and regulatory framework for rehabilitation of DH systems, including feed-in tariff for power generation - USD 10m direct foreign (private) investments leveraged into new DH system (Avan district of Yerevan, 213 Multi-apartment panel building with buildings, 30.000 residents) exhaust chimney from gas heater installed in one apartment - System features combined heat and electricity and introduced apartment level metering - 640 new contracts signed between customers and heat supply companies in the pilot areas Heat meter installed at the entrance to an apartment in Avan district of Yerevan 7 Source: UNDP-GEF Project Report, photos by Grant Ballard-Tremeer 7
  • 9. Energy Efficient Buildings - Turkey Reduce energy consumption and GHG emissions in buildings by - raising building energy performance standards - improving energy enforcement of building codes - enhancing building energy management and - introducing EE integrated building design approach 8
  • 10. Shifting from Fossil Fuels to Clean Sources 9
  • 12. Montenegro – Small Hydro Power Issue: 30% of electricity imported Only 17% of hydro potential used Action: Project intervention: Create conditions for sHPP by  simplifying application procedures  collecting basic data for investment decisions  setting attractive but competitive business terms for investors Preparation of pilot project municipality Andrijevica  Streamlining tendering process Results: Successful tender for 10 water streams Spatial planning guidelines Simplified admin. procedures >1MW power plants 23 sHPPs getting construction license and additional 12 sHPPs starting same procedure 11
  • 13. In Summary…  Energy is closely connected to human development  Energy IN-efficiency deprives people, municipalities, governments of resources and causes damage (global warming)  Opportunities for public and private investments in EE and RE are huge – but significant barriers exist  SE4ALL is a chance to accelerate efforts, create a conducive environment for public and private investments in EE, RE Tajikistan, Armenia, Montenegro and Kyrgyzstan have already made formal commitments to SE4ALL. UNDP-RBEC will continue to  advocate for SE4ALL;  support to countries to formulate national action plans;  creating partnerships, in particular with the private sector;  technical support for RE and EE action at country level. Photos: UNDP-GEF Projects in Armenia, Ukraine, Kazakhstan and Croatia 12
  • 14. How can we support creation of conditions for investments in Energy Efficiency and Renewable Energy in the context of SE4ALL??? Many Thanks Martin Krause Team Leader – Environment & Energy ECIS martin.krause@undp.org 13