EnergyEastern Europe and CISSome key challenges and opportunities

New York, 3 October 2012Martin Krause

UNDP

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Energy as a development issue in Central Asia

Sources: UNDP-GEF Project report, Uzbekistan, 2010

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

Premises Category Temperature ⁰C Classroom: 1st degree 6,9Classroom: Russian language # 1 6,4Classroom: Russian language # 2 7,1Staff room 7,7Classroom: 3rd degree 7,8Classroom: 4th degree 9,7Classroom: English language 8,1Classroom: 7th degree 5,1Classroom: 2nd degree 5,7Corridor 4,35

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Energy Efficiency in Buildings

Source: UNDP/GEF Project Booklet, Bulgaria

- Savings on electricity/ hot water bills

- Increased living comfort

- Reduction of GHG emissions

- Employment opportunities

- Reducing energy imports

BEFORE

AFTER

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Energy – Emissions – Vulnerabilities in Karakalpakstan, Uzbekistan

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

• Climate change increases frequency of droughts

• # of days with higher than 40oC more than doubled in Karakalpakstan and wider Aral region

• Aridification = Stress on water resources = falling yields and land productivity = already observed

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0.2

0.4

0.6

0.8

1.0

1980 1983 1986 1989 1992 1995 1998 2001 2004 2006

Karakalpakstan

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UNDP-supported Energy Portfolio in ECIS 63 programmes/ 166m $ Grant/ 600m $ Co-financing

Energy efficiency and conservation:$100m (GEF) + $371m in co-financing

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

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

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Energy Challenges in context of SE4ALL

Energy Use/Capita and Energy Intensity in Central Asia, 2008

Sources: Non-OECD and OECD Energy Balances 2009

Energy Security and Access

Energy Inefficiency

Energy Security, Access and Inefficiency

Creating conditions for public and private investments in energy efficiency and renewable energy projects:

- Removing Barriers related to legal, institutional, administrative, financial, professional skills

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Energy Inefficiencies

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- 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 buildings, 30.000 residents)

- 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

Energy Efficient District Heating - Armenia

Heat meter installed at the entrance to an apartment in Avan district of Yerevan

Multi-apartment panel building with exhaust chimney from gas heater installed in one apartment

Source: UNDP-GEF Project Report, photos by Grant Ballard-Tremeer

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Reduce energy consumption and GHG emissions in buildings by

- raising building energy performance standards

- improving energy enforcement of building codes

Energy Efficient Buildings - Turkey

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

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Shifting from Fossil Fuels to Clean Sources

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Renewable Energy

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Montenegro – Small Hydro Power

Issue:30% of electricity importedOnly 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 Streamlining tendering process

Results:Successful tender for 10 water streams Spatial planning guidelinesSimplified admin. procedures >1MW power plants23 sHPPs getting construction license and additional 12 sHPPs starting same procedure

Preparation of pilot project municipality Andrijevica

13Photos: UNDP-GEF Projects in Armenia, Ukraine, Kazakhstan and Croatia

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.

In Summary…

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How can we support creation of conditions for investments in Energy Efficiency and Renewable Energy in the context of SE4ALL???

Many ThanksMartin KrauseTeam Leader – Environment & EnergyECIS

martin.krause@undp.org