Current legislative framework on energy audits in Ukraine

Current legislative framework on energy audits in Ukraine. Potential adaptation of the Concept of mandatory energy audits into

Ukrainian legislation framework

Oleksandr Ovdiienko, Kyiv, 22 March 2016 B U I L D I N G P A R T N E R S H I P S F O R E N E R G Y S E C U R I T Y

www.inogate.org

Development of Ukrainian legislation in EE and EA fields

Before joining EU Energy Community

(2011)

After signing Agreement

between UA an EU (2014)

Bilateral Agreement to implement the

energy efficiency acquis till 2012

Institutional Development of Ukrainian Authorities in EE field

1995 • Creation of the State Committee on Energy Conservation

1996 • Creation of the State Inspection on Energy Conservation

1999 • Creation of the Central Group of Energy Audit

2005

• Reorganisation of the State Committee on Energy Conservation into the National Agency of Ukraine for Efficient Energy Resources Management (NAER)

2011

• Reorganisation of the NAER into the State Agency of Ukraine on Energy Efficiency and Energy Saving of Ukraine (SAEE).

• Liquidation of the State Inspection on Energy Conservation

Development of main Ukrainian legislation in EA and EM fields

• 1994

– the Law on Energy Conservation • 1997

– Temporary Regulations on the order of energy audit and attestation of specialized organizations for the right to conduct it

• 1999 – Regulations on the order of organization of energy audits – Organisation and conducting of energy audit for

budgetary institutions, organizations and state-owned enterprises

– Organisation and holding of tenders for conducting energy audit of budgetary institutions, organizations and state-owned enterprises

• 1999-2008

– Regulations at the executive level, for example:

• Decree of the Ukrainian State Railway Company (Ukrzaliznytsya) - Of carrying out energy audit

• Decree of the Ministry of Fuel and Energy of Ukraine – “Energy Audit of Coal Enterprises”

– State Standards: • DSTU 4472:2005 “Energy Saving. Energy Management Systems.

General Requirements” • DSTU 4713:2007 “Energy Saving. Energy Audit of Industrial

Enterprises. Order of carrying out and requirements for work organization”

• DSTU 4715:2007 “Energy Saving. Energy Management Systems of Industrial Enterprises. Structure and content of work on the development and implementation stages”

• DSTU 5077:2008 “Energy Saving. Energy Management Systems of Industrial Enterprises. Monitoring and Control of Effective Functioning”



• 2007 and 2014

– Two Draft Law “On Energy Audit”

• 2010

– General requirements for organization and conducting of energy audit, approved by Decree of NAER №56 dd 20.05.2010

• 2014

– DSTU ISO 50001:2014 “Energy Saving. Energy Management Systems. Requirements and guidelines for use”

• 2015

– Cancellation of State Committee Orders On Procedure of Energy Audit and Attestation of Specialized Organisations … and liquidation of Central Group of Energy Audit by Order of the Ministry of Regional Development, Construction and Housing and Communal Services of Ukraine № 120

– 1st National Action Plan on energy efficiency for the period 2020

newest development


• 2015 – Adopted so-called «ESCO Law» and Sample ESCO Agreement – Adopted the Technical Regulation on Energy Labeling of Lamps

and Luminaries, Household Dishwashers – Drafted the Technical Regulation on Energy Labeling of Air

Conditioners , Household Tumble Driers , Energy Labeling of Vacuum Cleaners , Televisions

– Drafted the Standards • DSTU ISO 50002 Energy audit. Requirements with guidelines for use; • DSTU ISO 50003 Energy management systems. Requirements for bodies

providing audit and certification of energy management systems; • DSTU ISO 50004 Energy management systems. Guidelines for implementation,

maintenance and improvement of an energy management system; • DSTU ISO 50006 Energy management systems. Measuring energy performance

using energy baselines (EnB) and energy performance indicators (EnPI). General principles and guidelines;

• DSTU ISO 50015 Energy management systems. Measurement and verification of energy performance of organizations. General principles and guidelines.

Main points of current Ukrainian legislation in EA and EM fields

• the Law on Energy Conservation of 1994 which is not compliant with the acquis, still applies in Ukraine – should be replaced by a modern law compliant with the Energy

Efficiency Directive 2012/27/EU

• Only State Standards and Executive Regulations left • There is NO system of state accreditation for energy

service/energy audit companies and financial instruments of support for their activity

• 1st National Action Plan on energy efficiency for the period 2020 was approved

• SAEE creates working group on development of draft Law “On Energy Efficiency” according to requirements of EU legislation

• Ministry of Regional Development and SAEE publish Draft of Concept of Energy Efficiency Fund

Next steps

Clear understanding and implementation of UA-EU Agreement Requirements

• EE Directive 2012/27/EU

Review

• Best Practices of implementation

Analyze • Local Legislation

Frameworks

Develop

• New EE Law

• Accreditation Scheme

• Financial support

Implement

Clear understanding - what requires?

Best Practises – Main Sources

• EU Member States: – Transposed in Austria, Bulgaria, Czech Republic, Denmark, Finland,

France, Germany, Ireland, Italy, Malta, Portugal, Romania, Slovenia,

Slovakia, Spain, Sweden, The Netherlands, United Kingdom

– Partly transposed in Belgium, Croatia

• International: – EU and International Standards (ISO and EN).

– EU Energy Efficiency Directive (2012/27/EU). Guidebook for Strong Implementation. The Coalition for Energy Savings – 2013

– Best Practices in Designing and Implementing Energy Efficiency Obligation Schemes. Research Report Task XXII of the International Energy Agency Demand Side Management Programme – 2012

– Energy efficiency obligations – the EU experience. European Council for an Energy Efficient Economy – 2012


Energy efficiency obligation (EEO)

• EEO schemes use the force of law to require obligated parties to achieve energy savings through investments in end-use energy efficiency. They are typically enforced by regulation and by the threat of financial penalties.

• Typically, obligations in EEO schemes are placed on providers of networked energy (e.g., electricity and natural gas distributors or standalone retail suppliers).

• Obligations can also be placed on providers of other energy forms (e.g., LPG, heating oil, transport fuels, district heating), and even on end-users of energy.

• In some jurisdictions, energy savings to meet the obligation are delivered by a third party “energy efficiency utility”.

Energy efficiency obligation (EEO)

For obligated energy providers in competitive energy markets, there are two possible cost recovery paths:

• Option 1: the costs of meeting energy savings targets are treated as a cost of doing business and energy providers adjust their prices to recover these costs; or

• Option 2: the costs of meeting energy savings targets are either funded by the government through direct budgetary appropriations, or price surcharges are imposed on regulated “wires and pipes” energy providers.

The Lifecycle of an Energy Savings Certificate


Certification and quality assurance

• Article 16 of the EED requires MSs to ensure the availability of certification, accreditation and/or qualification schemes for providers of energy audits and for energy managers and, if necessary, to establish suitable training programmes for them.

• The criteria for determining the necessity of establishing such schemes and training programmes are left up to MSs to determine, based on a judgment of whether the existing national level of technical competence, objectivity, and reliability is considered sufficient or not.

• Fulfilling the national certification, accreditation or qualification scheme also allows “in-house” experts or auditors to carry out energy audits of their own installations and buildings.

How to build up personnel certification body

ISO/IEC 17024:2012 “Conformity assessment -General requirements for bodies operating

certification of persons” – an advanced standard which is aimed on

harmonizing of different procedures that are used globally for confirmation of competence of personnel in various professions

– the standard provides a benchmark for collaboration of personnel certification programs acting on a consistent, comparable and reliable manner across the world which would allow professionals to demonstrate their competence irrespective of national borders

Energy experts certification

Examples of State Accreditation • United Kingdom

– To become an ESOS lead assessor you need to be a member of an approved professional body register.

Examples of State Accreditation • Ireland

– Sustainable Energy Authority of Ireland. Guidance Note for Registered Energy Auditors - Minimum Qualification Requirements For Registered Energy Auditors

Providers of energy experts certification in Ukraine

Locally

Recognized Internationally

Recognized

Association of Energy Engineers

of Ukraine

UNIDO Project

Ukrainian Association of

Quality

Training Center of Energy

Management of NTUU “KPI”

Training certificates – Energy Management

Certificates – Specialist on EM Systems Manager on EM Systems Auditor of EM Systems

ISO 50000 Standard Series courses for the national auditing experts

Certified Energy Manager Certified Energy Auditor Certified M&V Professional


Mandatory Energy Audit for non-SMEs

Mandatory Energy Audit for non-SMEs

Transposition of EE Directive 2012/27/EU

• Recital 24: Energy audits should take into account relevant European and International Standards, such as EN ISO 50001 (Energy Management Systems), or EN 16247-1 (Energy Audits)

• Art. 8: Energy Audits and Energy Management Systems – Energy audit every 4 years, or:

– Energy or environmental management system

– Energy audits carried out by qualified and/or accredited experts

– Encourage training programmes for energy auditors

• Annex VI: transparent and non-discriminatory criteria for energy audits

Recommendations for Energy Audit System

1. Energy audits that meet the financial and economic criteria and demands set out in Article 8 and Annex VI of the EED, as well as investment-grade audits, are promoted. The latter, also based on life-cycle cost analysis, provide additional guidance for future investments and maintenance, whenever this is appropriate and proportionate.

2. Encourage State to provide clear and strong incentives for SMEs and households to undertake audits and implement the recommended measures.

3. Encourage State to raise the quality of audits used in building certification in the EPBD.

4. Encourage large enterprises to be early adopters of audits. 5. Ensure that energy audits and EMS account for peripheral use of

energy. 6. Use benchmarks to determine best performance levels in

industrial processes and peripheral applications.


Financing the measures

Financing mechanisms and national EE Funds must help to develop the

required investments

Decisions on Governmental Level

1. Set up dedicated Energy Efficiency Funds capable of blending various streams of financing and dedicated to backing high standard national energy efficiency investment programmes.

2. Use public financing institutions to drive energy efficiency investment.

3. Design effective policy instruments to ensure take-up of funds.

4. Consider how to structure offerings to leverage the maximum amount of private sector investment possible.

5. Develop a long-term plan for driving demand across all sectors of the economy that offers sufficient scale of opportunity to meet targets and confidence that the plan will match or exceed the expected period required for private capital invested to be repaid (traditionally 15 years or more).

Effective Policy Instruments

Conclusions – fields of potential adaptation

1. Energy efficiency obligation system for energy utilities 2. Internationally recognized Certification of Energy

Auditors/Energy Managers and Measurement & Verification Professionals

3. State system of accreditation Energy Service / Energy Audit providers

4. Mandatory Energy Audits for – Large enterprises – State and Municipal buildings and – Companies to be privatize

5. Voluntary EE agreements for SMEs and residential buildings

6. Financing mechanisms and National EE Fund

What Desire?

Decoupling is not a dream!

Decoupling is not a dream!

Decoupling is – destroying connection

between of economic growth and the resources used or environmental impacts

– creating more Added Value with less resources used or environmental impacts

EU Achievements

Ukraine’s Achievements

Energy Resources

consumption

GDP

environmental

impacts

Current Realities

GDP Consumption

What is Target?

to achieve in 2035 level of energy intensity of GDP of Poland 2005???

UA PL

INOGATE Technical Secretariat

Oleksandr Ovdiienko, Local Expert

member of AEE Ukraine

[email protected]

39

mailto:[email protected]

Engineering

Current legislative framework on energy audits in Ukraine