Annual Report United Nations Development … · Web viewEnergy-efficient lighting technologies are economical, commercially viable and technologically available, but due to several

ANNUAL REPORTUnited Nations Development Programme in Ukraine

TRANSFORMING THE MARKET FOR EFFICIENT LIGHTING PROJECT

2012

ANNUAL REPORT2012

United Nations Development Programme in Ukraine


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2012

CONTENTS

TITLE: PAGE:EXECUTIVE SUMMARY 3THE PROJECT'S OBJECTIVES 3

1. COMPONENT 1: PREPARE AND SET-UP NATIONAL POLICY FRAMEWORK TO PROMOTE EE LIGHTING

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1.1. STUDY OF INTERNATIONAL AND UKRAINIAN LEGISLATION REGULATING USED FLUORESCENT LAMPS WASTE MANAGEMENT (WASTE COLLECTION, DISPOSAL AND RECYCLING)

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1.2. STUDY OF NATIONAL AND INTERNATIONAL NORMS, STANDARDS AND LEGISLATION WHICH PROMOTES TRANSFORMATION TOWARDS ENERGY-EFFICIENT TECHNOLOGIES IN LIGHTING

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2. COMPONENT 2: IMPROVEMENT OF QA/QC SYSTEM FOR EE LIGHTING MARKET

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2.1. CHALLENGES 62.2. ESTABLISHING HAZARDOUS WASTE MANAGEMENT SYSTEM 73. COMPONENT 3: DEMONSTRATION OF EE LIGHTING PILOT PROJECTS IN

MUNICIPAL SECTOR8

3.1. PILOT PROJECT 1: “SADZHAVA VILLAGE MAIN STREET LIGHTING MODERNIZATION PROJECT WITHIN THE FRAMEWORK OF “SADZHAVSKE NAMYSTO” INTERNATIONAL FOLKLORE AND ETHNOGRAPHIC FESTIVAL”

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3.2. PILOT PROJECT 2: “ENERGY EFFICIENT PARK LIGHTING PILOT PROJECT IN BERDYANSK” 93.3. PILOT PROJECT 3: “MY CITY IS A BRIGHT CITY” PILOT PROJECT IN LUGANSK 103.4. PILOT PROJECT 4: LED LIGHTING IN THE COMMUNITY HOUSING SECTOR (STAIRCASES IN THE

APARTMENT HOUSES) IN DOBROTVІR OF LVIV REGION11

4. COMPONENT 4: EE LIGHTING PRODUCTS PENETRATION INTO THE RESIDENTIAL SECTOR

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5. COMPONENT 5: REPLICATION AND DISSEMINATION OF THE PROJECT RESULTS

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6. PARTNERSHIP 15

7. FIELD VISITS 16

8. APPLICATION OF FUNDS 16

9. THE PROJECT EVALUATION 16

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EXECUTIVE SUMMARY

Energy-efficient lighting technologies are economical, commercially viable and technologically available, but due to several barriers, they have not reached their market penetration potential. Therefore, it is necessary to promote a certain degree of market intervention at the national level.

Replacing incandescent lamps in the residential and commercial sector is one of the most obvious and easiest methods to achieve energy-efficiency. The transition to efficient lighting can occur at a very low cost with existing technology and provide immediate results.

Energy-efficient lighting is usually given lower priority in Ukraine compared to measures related to heating supply. Energy consumption related to lighting is not as seasonal as compared to heating; however, energy efficiency of lighting effects production and distribution of electricity.Thus, there is an untapped potential for development and implementation of new energy efficient technologies in Ukraine, including energy-efficient lighting. The Ukrainian Government supports the activities associated with the increase of energy efficiency through various regulatory arrangements and measures; however, general shortage of funds impedes implementing large-scale energy-efficiency enhancement programs. Therefore, in line with the foremost Government’s priorities, this Project is intended to reduce greenhouse gas emissions by introduction of a large-scale change over to energy efficient lighting within Ukraine's residential and municipal sectors.

THE PROJECT'S OBJECTIVESThe Project's foremost objective is to facilitate the market transition to more energy efficient lighting technologies by removing barriers contributing thereby reducing of greenhouse gas emissions; and therefore, in line with the foremost Government’s priorities, this Project is intended to reduce greenhouse gas emissions by introduction of a large-scale change over to energy efficient lighting within Ukraine's residential and municipal sectors.

In order to attain aforesaid objectives, the Project’s activities are divided into 5 main Components:

1: Prepare and set-up the national policy framework to promote EE lighting 2: Improvement of QA/QQ system for EE lighting market3. Demonstrational EE lighting pilot projects in municipal sector4: EE lighting products penetration into the residential sector5: Replication and dissemination of information of the project results

In 2012 the Project targeted the following goals:

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2012

1. COMPONENT 1: PREPARE AND SET-UP NATIONAL POLICY FRAMEWORK TO PROMOTE EE LIGHTING

This Component includes thorough review of existing relevant Laws and preparation of national policy framework for promotion of EE lighting. The Team experts consider, as a first priority, to conduct a research of existing Ukrainian legislation, compare thereof with relevant international Laws in order to set a baseline that would promote EE lighting; as well as to conduct a separate research covering the waste management (collection, disposal/recycling) of used CFL lamps containing toxic agents (mercury in particular) and thereby address consumers’ concerns related thereto as set forth hereinafter.

1.1. STUDY OF INTERNATIONAL AND UKRAINIAN LEGISLATION REGULATING USED FLUORESCENT LAMPS WASTE MANAGEMENT (WASTE COLLECTION, DISPOSAL AND/OR RECYCLING)

Implementation of the Project’s objective relating to introduction of EE technologies requires widespread application of much more energy efficient fluorescent lamps than conventional incandescent lamps.

Due to widespread use of fluorescent lamps there is an issue related to waste management thereof, especially those ones that contain mercury and therefore classified by Ukrainian legislation as hazardous ones and subject to mandatory disposal by specialized enterprises licensed by duly authorized governmental agency. Presently, Ukrainian legislature provides for disposal/recycling of fluorescent lamps only by duly licensed legal entities. As for the individuals/private persons there is no procedure whatsoever providing for collection and further disposal of fluorescent lamps leading thereby to uncontrolled discard thereof by users and environmental pollution by toxic substances. Thus, anavailability of efficient and affordable solution of safe collection and disposal of used light bulbs raises concerns of environmentalists and negatively effects the consumers’ opinion on EE lighting technologies.

Considering the above-stated, there has been an urgent need to find such a solution applicable for Ukraine. The Project team conducted a dedicated study of Ukrainian legislation with respect to used fluorescent lamps collection and further disposal giving due regard to the laws covering separate collection of household wastes by comparing Ukrainian legislature with the relevant laws applicable in EU, USA, RUSSIA, etc. The above study also included preparation of recommendations as for the amendments to be made to applicable laws of Ukraine in order to expand the use of fluorescent lamps and contribute to success of energy efficient lighting projects’ implementation.

Therefore, considering the foregoing, the following activities have been undertaken and the following results achieved:

Analysis of Ukrainian national policy, legal framework on lighting, fluorescent lamps disposal and separate collection of household wastes.

Analysis of international legal practice (relevant laws applicable in EU, USA, RUSSIA, etc.) covering used fluorescent lamps disposal and comparative analysis with Ukrainian legislation.

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2012

Study and analysis of practical adherence to Ukrainian norms and regulations covering used fluorescent lamps disposal.

Analysis and identification of problematic aspects relating to adherence to Ukrainian norms and regulations covering used fluorescent lamps disposal and separate collection of household wastes.

Recommendations on amendments to be made to such norms and regulations.

Further application of the study’s results will also facilitate in achievement of objectives provided for by the Component 2.

1.2. STUDY OF NATIONAL AND INTERNATIONAL NORMS, STANDARDS AND LEGISLATION

PROMOTING TRANSFORMATION TOWARDS ENERGY-EFFICIENT LIGHTING TECHNOLOGIES In order to introduce EE technologies and to significantly improve the existing situation, a large-scale study (including the analysis international experience relating to promoting EE lighting policies and proposals of the best suitable solutions for Ukraine and taking into consideration the national peculiarities) has been commenced in 2012.

The full scope of works includes:

Analysis of national policy on efficient lighting. Analysis of Ukrainian legal framework on efficient lighting. Analysis of international legislation (EU, USA, RUSSIA) on efficient lighting and

comparative analysis thereof with Ukrainian legislation. Study and analysis of practical adherence to Ukrainian norms and regulations covering

used fluorescent lamps disposal. Analysis and identification of problematic aspects relating to adherence to Ukrainian

norms and regulations covering used fluorescent lamps disposal and separate collection of household waste.

Analysis of international phase-out programmes launched in EU, USA, RUSSIA, practical experience gained, evaluation of efficiency including economic aspects, and potentials of possible implementation thereof in Ukraine;

Preparation of relevant recommendations on amendments to be made to such norms and regulations.

Preparation of full list of existing Ukrainian Laws and legal acts covering and/or relating to energy efficient lighting that required to be amended.

Analysis of possible effects of drafted/amended norms and regulations promoting EE lighting on Ukrainian legal entities (economic and legal aspects).

These activities are planned to be continued in 2013.

COMPONENT 2: IMPROVEMENT OF QA/QC SYSTEM FOR EE LIGHTING MARKET

2.1. CHALLENGES

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2012

Owing to some gaps in the regulatory system, so-called “grey” (poor-quality) lighting products have free access to the Ukrainian market. Presence of such poor quality and improperly labelled lighting products considerably impedes further development of the energy-efficient lighting market and creates a negative image for the whole sector.

To address these issues, the following tasks were defined to be resolved by the Project’s Component 2:

• Improvement of environmental, energy-efficiency norms and regulations as well as quality assurance and quality control system covering the lighting products.

• Improvement of the Ukraine’s institutional capabilities for auditing and assessing the quality of imported EE lighting products.

• Provide support for development and modernization of national lighting industry; render support to local manufacturers of EE lighting products

• Shape, in close cooperation with domestic manufacturers, suppliers, recycling companies and local municipalities, a system for CFL collection, recycling and/or disposal

In order to clarify current situation in Ukraine and resolve the existing issues, in close cooperation with National Standards Authority and testing local laboratories, a comprehensive research of the light sources currently available on Ukrainian market has been conducted. Based on results of this study: new standards will be developed; recommendations on improvement of current legislation will be given; state laboratories will be assessed and thereupon their technical capacities will be clearly specified.

However due to technical complexities of this study and considering the fact that the market is not currently ready therefor, this study has been postponed for 2013.

However, based on request of relevant ministries, the similar study of light sources intended for street lighting, applied technologies and quality thereof has been commenced this year and will be completed in the first quarter of 2013. Based on this study it will be possible to provide recommendations on optimal application of technologies and light sources for the street lighting.

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2.3. ESTABLISHING HAZARDOUS WASTE MANAGEMENT SYSTEM

One of the major impediments to the Project progress is the fact that there is no system providing for collection and safe disposal of used mercury containing in CFL bulbs thrown away by customers.

Therefore it is imperative to develop a proper system that can be applicable to Ukraine. In 2012 the Project team took the following steps to address this issue:

Assessment of Ukrainian market in relation to entities engaged in recycling/disposal of wastes containing mercury.

Dedicated research on currently available CFLs disposal technologies has been conducted

Affordable compact and mobile equipment intended for CFL collection have been purchased for testing and demonstration purposes within the framework of relevant pilot projects.

Above listed activities fall under the legislative initiatives developed within the framework of the Component 1.

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2012

3. COMPONENT 3: DEMONSTRATION EE LIGHTING PILOT PROJECTS IN MUNICIPAL SECTOR

From the very beginning the TMEL Project has received a large number of proposals to participate in demonstration pilot projects from different organizations, municipalities and communities all over Ukraine.

Initially it was the Project Document stipulated that EE lighting demonstration projects targeting school buildings would be conducted in seven (7) participating municipalities.

Having received various feedbacks from the willing parties participated in the Inception Workshop in November 2011, stakeholders and similar projects from other countries TMEL Project team was able to make changes to the initially planned activities making it more flexible and adapting thereof to the recent technological changes at the early stage. It was decided to implement demonstration projects for modernization of light system in the municipal sector in general (not only in school buildings); and, if possible, to increase the number of participating municipalities. The successful pilot projects candidates shall comply with the same requirements plus the following new ones:

a) Technically feasible proposal

b) Support offered by applicable municipality and local partners

c) Visibility

d) Social and economic effect

e) Promotion of new EE technologies

d) Co-financing

Under the above-mentioned criteria four small-scale projects in different areas were selected focusing primarily on new ways of electricity saving and quality improvement of lighting.

3.1. PILOT PROJECT 1: “SADZHAVA VILLAGE MAIN STREET LIGHTING MODERNIZATION PROJECT WITHIN THE FRAMEWORK OF “SADZHAVSKE NAMYSTO” INTERNATIONAL FOLKLORE AND ETHNOGRAPHIC FESTIVAL”

The Festival was organized to dedicate 520th anniversary of the first written record relating to the village. Representatives from different countries attended this Festival and had the opportunity to see for themselves the advantages of energy efficient lighting.

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The scope of the project included:

• 15 state-of-the-art street LED lights have been installed in the village main street leading thereby to fivefold reduction of lighting costs

• Ten-fold increase of operation period; capability to withstand low quality power supply

• It also should be mentioned that the opening has been accompanied by newly established annual international cultural festival giving thereby additional media coverage.

The general interest have been shown by many Festival participants as long as they were pleased with the outcome of the project. Representatives of other regions were ready and willing to participate in the next pilot project and requested to apply this experience to their municipalities, even at their cost and expenses.

3.2. PILOT PROJECT 2: “ENERGY EFFICIENT PARK LIGHTING PILOT PROJECT IN BERDYANSK”

The project provides for replacement of existing street lights for up-to-date and efficient CFL bulbs capable of saving energy and be operable in adverse weather conditions (poor performance of the CFLs at winter time is widely known).

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Within the framework of the Project the first batch of energy efficient lamps has been obtained and installed in the central park of the city (pedestrian area). The experience gained while fulfilling this pilot project in Berdyansk positively exemplifies the advantages of retrofit of the lighting system in the municipal sector (the city park in particular) for the other cities of the country.

Considering the fact that Berdiansk is widely known Azov Sea regional resort, it implies that over 700 000 visitors annually will enjoy new energy efficient bright lighting in the parks of the city.

3.3. PILOT PROJECT 3: “MY CITY IS BRIGHT AND ECONOMICAL” PILOT PROJECT IN LUGANSK

The project has been implemented in close cooperation with SGP, municipal authorities and city community.

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TMEL Project team joined efforts in order to further improve street lighting technologies by introduction of other modern technologies. In addition to EE lighting TMEL Project team provided 6 complexes of SMART (intellectual) outdoor management system for the municipal GorSvet organization. These SMART complexes represent new ways to achieve considerable savings within a short recoupment period while improving quality of outdoor lighting.

3.4. PILOT PROJECT 4: LED LIGHTING IN THE COMMUNITY HOUSING SECTOR (STAIRCASES IN THE APARTMENT HOUSES) IN DOBROTVІR OF LVIV REGION

The main idea of the project is to replace incandescent light bulbs in municipal residential apartment buildings (at entrance lobbies, staircases) with LED Lighting Sources:

Advantages: 4 watt instead of 40-100 watt Considerable extension of operation period Anti-vandal design

The TMEL team considers this path as a particularly positive and promising as long as it provides for reliability, major energy savings at moderate costs and attractive for crediting (bankable solutions).

The TMEL Project team is planning to start a large scale information distribution program based on experience gained.

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4. COMPONENT 4: EE LIGHTING PRODUCTS PENETRATION INTO THE RESIDENTIAL SECTOR

THIS COMPONENT PROMOTES ENERGY EFFICIENT LIGHTING IN RESIDENTIAL SECTOR AND INCLUDES PROVIDING CO-FINANCING, CONDUCTING PR CAMPAIGNS AND IMPLEMENTATION OF DEMONSTRATION PROJECTS.

It implies the following objectives:

• In cooperation with local and international EE lighting manufactures, consumer banks, and national retailer networks - develop and implement EE lighting information distribution program within the residential sector;

• Introduce EE lighting and Green Light Labelling component into the school curriculum.

• Develop and implement municipal PR campaigns for EE lighting while implementing demonstration projects;

• Adopt globally run CFLs promotional campaigns to Ukrainian consumer market cooperating closely with lighting product suppliers.

To set out the information distribution program in residential sector, first we needed to set up a baseline of consumer’s awareness and attitude to EE lighting. We also needed to select the most suitable technology applicable for residential sector both technically and economically, whereas the Project Document dates back to 5 years ago and LED technologies have appeared only a recently.

So, first we have conducted the study that sets up a baseline of consumers’ awareness level showing that Ukrainian consumers are not aware of EE lighting technologies, their advantages and economic benefits gaining therefrom.

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In order to improve the awareness, subject to provisions of the Component 5, All-Ukrainian Awareness Campaign is planned to be conducted in 2013.

To select the best technologies for residential sector we have produced a map of lighting products manufactures and dealers currently present on Ukrainian market, their technologies and market shares as well as consumer attitude to their products.

Thereafter we have conducted a series of round table discussions with Ukrainian key players on EE lighting market to learn their opinion on which technology is considered the most suitable. Component 2 provides for assessment of technological feasibility of each technology present on Ukrainian market; however, unfortunately, due to some technical issues aforesaid assessment has been rescheduled for 2013. Nevertheless, the economical feasibility is already in progress and the results will be obtained in late December - early January.

In addition to the awareness and PR campaigns planned for 2013, we are also planning to prepare educational materials for students and pupils based on the studies already conducted. We will also carry out a pilot project in the residential sector and establish cooperation with retail outlets to develop a plan for replication and dissemination program.

5. COMPONENT 5: THIS COMPONENT PROVIDES FOR REPLICATION AND DISSEMINATION OF THE PROJECT RESULTS.

IT INCLUDES THE FOLLOWING OBJECTIVES:

• Develop dedicated website covering the Project’s current activity, works completed, results achieved and activities planned for the future.

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• In cooperation with the schools participated in the Project, develop educational booklets/brochures for pupils on energy-efficient lighting.

• Prepare the second phase of the demonstration project covering at least 20 municipalities across Ukraine.

• Support organizations and entities focusing on energy efficiency in Ukraine’s public sector/municipalities by involving them into the relevant Project’s components developing thereby their capabilities for further successful actions in other regions of Ukraine and to expand their clientele and supporters.

• Arrange for and conduct seminars and workshops in the municipalities dedicated to how Low Carbon Finance and other alternative financial profiles can be instrumental to financing other EE lighting projects in Ukraine

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In 2012 Project website was created and it is planned to turn it into a Portal that will be a knowledge champion in EE lighting.

All actual accomplishments of the Project (i.e. 4 pilots in Berdyansk, Sadjawa, Lugansk and Dobromyr as well as round tables with manufactures, etc.) were widely highlighted by various media outlets including TV, newspapers and internet.

In 2012 we have conducted several round-table discussions with NGOs specializing in EE technologies to lean their needs and scope of activities. In 2013 we are planning to establish a small grants program to support them and coordinate their activities.

In 2013 we are also planning, in line with the Component 4, to arrange for printing of educational materials for pupils and students to be distributed in schools and higher education institutions to run a large-scale PR Campaign promoting energy efficient lighting.

6. PARTNERSHIPThis Project provides for establishment of formal partnership with NGOs, local/regional authorities/municipalities by signing MoUs and/or entering into partnership agreements to formalize the role and commitment of the partners and to provide an official basis to work with community organizations.

Upon the commencement of the Project we have received over forty (40) official letters from the various municipalities and NGOs. All letters propose partnership and/or cooperation in implementing of various energy-efficient lighting projects. Based upon these letters three (3) Memorandums of Understanding for cooperation in aforesaid area have already been signed. We have also entered into a partnership with GEF SGP where TMEL project provided expert assistance.

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In 2013 in order to explicitly demonstrate the savings achieved by introduction of energy efficient lighting, as provided by the Component 4, it is planned to establish the partnership with relevant municipal authorities under whose economic jurisdiction the completed Pilot Projects currently are. Aforesaid will be done in order to obtain available data related to the street lighting of areas covered by aforesaid projects for a specific period prior to and after a particular Pilot Project implementation. Thereafter such data/indicators will be incorporated into comparative tables clearly showing the savings achieved.

7. FIELD VISITS In course of the Project implementation the Project team, with the purpose of exchange of experience, visited Ukrainian leading LED manufacturer Gasotron Lux (Lummax) based in the city of Rovno (Rivne), Ukraine; and Russian leading LED manufacturer EnergoSpetsStroy LLC based in the city of Saratov, Russia.

These visits have been exceptionally instrumental in understanding of further Project course of implementation, as well as possible pitfalls to be avoided in rendering assistance and support to local companies willing to start LED manufacture in Ukraine.

8. APPLICATION OF FUNDSIn order to discharge obligations provided for by the Project Document and to carry out the activities set out herein the Project Team have used $502,000.00US.

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Documents

Annual Report United Nations Development … · Web viewEnergy-efficient lighting technologies are economical, commercially viable and technologically available, but due to several