EECU mentoring in PROSPECT Learning Cycle 3
The Mentor ‘EECU - Association "Energy Efficient Cities of Ukraine" (UA)’ and Mentees ‘Municipality of Dnipro (UA)’, ‘Municipality of Mykolaiv (UA)’, ‘Municipality of Kropyvnytskyi (UA)’, 'Municipality of Kryvyi Rih (UA)', 'Municipality of Mariupol (UA)', 'Municipality of Melitopol (UA)' and ‘Municipality of Sumi (UA)’ will participate in the 3rd Cycle of the PROSPECT Learning Programme, constituting the 4th Group for Public Buildings. The peer learning activities will be focalised on Energy Performance Contracting (EPC). +Mentors' Corner
During Step 1, an online session took take place on the 12th of June 2019, where Mentor representatives presented their experience in EPC. The mentor presented the project "Improvement of energy efficiency in public buildings of the city of Dnipro using energy-performance contracting". The project aims at creating the suitable conditions for attracting the private investments to energy efficiency from savings and intends to implement thermal refurbishment of 201 public buildings (mainly schools and kindergartens). The project is divided into 2 stages due to the number of objects.
During Step 2 of the Learning Programme, a second online session took place on the 21st of August 2019 and Mentee representatives had the opportunity to present their own projects, pointing out their special needs as well as the respective sectors in which they intend to gain knowledge and experience.
The Mentees visit Lviv in Ukraine to learn about best practices for EPC in Public Buildings
Step 3 included the physical meeting on 12-13th of September 2019, where representatives from all the participating cities and regions had the chance to talk in detail about all the stages of their project and become more familiar with clean energy best practices via extensive presentations by the mentor representatives and by targeted site visits.
The presentations started with "EBRD project ”Improving energy efficiency of budget buildings in the city of Dnipro based on EnPC model”, they continued on till the end of the day, which concluded with a group discussion with the whole team participating.
The project implementation unit of Dnipro city Council shares experience in Energy Performance Contracting with Mentees
The second day continued with site visits. On-site to the first public building refurbished within EBRD EnPC project in Dnipro. The list of EE measures includes insulation of walls and roof, installation of the individual heating substation as well as renovation of internal heating system and partial replacement of doors and windows. More than 40 public buildings are under refurbishment.
The first public building refurbished within EBRD EnPC project in Dnipro
The team posing for a group photograph
Quotes from some of the Mentees:
"The PROSPECT training program was well planned. The program considered topical issues of project implementation. Typical problems that may arise during the implementation of the project, as well as ways to solve them were considered. The study tour was very well planned and allowed to learn more about the experience of the city of Dnieper in the implementation of such a project, which can be rethought and transferred to its own project as an example. We are very grateful to the organizers for the training program".
"The training provided new knowledge on fundraising in local budgets for introduction of energy efficient technologies in budget institutions."
"It was interesting to learn the new funding scheme for yourself. However, the timing of implementation is a bit surprising. In such a long period of time it was possible to find one's own sources of financing (city budget or other sources not prohibited). In addition, the list of activities on so many sites (only the establishment of ITR or something else) is surprising. Installation of RTD without thermo-modernization does not give the desired percentage of savings and the risk of undervaluation of remote parts of the premises."
The 4th and last step of the Programme took place on the 13th of October 2019 and included an online session dedicated to the assessment and evaluation of the peer learning activities.
Detailed action plans were submitted by the mentees, in light of the new acquired knowledge gained from the mentor. Conditions for success and key parameters that could affect negatively the plans were also identified, along with a benchmark survey that encapsulated all the outcomes of the learning group.
Rethinking the financing scheme:
Main impressions and understanding about the financing scheme:
The financial scheme became clear and understandable from beginning till the end of the lifecycle of the project.
Complex scheme but realistic
The study visit heled to better understand the financial scheme to finance EE
The financial scheme is specifically develop for pilot project of Dnipro and does not correspond to term “energy service” mentioned in Budget Codecs of Ukraine
Key project implementation drivers:
The number of objects that can be financed and the interest rate is lower than in state banks
Possibility to invest huge costs to EE which is not possible to do from own local budget.
The municipality operates the investments, also the supervision and approval of works is carried out on site
Key project implementation barriers:
- Time-consuming procedures
- Obligation to create municipal ESCO
- Credit is available under a municipal guarantee
- High number of buildings results to high payback period
- High interest rate for loans
Key steps to set up or develop the financing scheme:
- The main step is to create the municipal ESCO. This is an additional burden on the local budget
- Formation of professional team
- Change the current budget legislation