Advisory Services for Energy Efficiency in Companies (GIZ) - Resource Efficient and Cleaner Production Centre

Background

The energy intensity of Ukraine’s economy is three to four times higher than the EU average. The industry and trade sectors account for over 40 per cent of energy consumption. There are more than two million companies in Ukraine, most of them small and micro enterprises. In contrast to other consumers, commercial customers pay non-subsidised market rates for electricity and gas. The high energy costs are putting a strain on companies and making them less competitive

Small and micro enterprises, in particular, have the potential to reduce their energy consumption by 30 to 50 per cent. There is very limited awareness in Ukraine of this energy-saving potential or of measures to boost energy efficiency. Companies are not yet carrying out energy-saving modernisation measures, which would both reduce greenhouse gas emissions and decrease the country’s dependence on imported energy

Basic objective

Energy-saving modernisation measures in Ukrainian companies lead to an exemplary reduction in GHG emissions

Industrial sectors

Food and Beverage: here Bakery industry
Food and Beverage: here Dairy industry
Machinery
Non-metallic minerals Construction Materials

Introduction

GIZ is seeking to contract for each single industrial sector – each lot – one consultant to conduct energy audits and on-site instruction on Energy Efficiency for operational staff. In the first phase, each consultant conducts 15 detailed energy audits (that comply with ISO: 50002:2014 standard) in medium-size industrial production factories and provides a one-day on-site instruction for the operational staff in the same. In the second phase, basing on the first phase outcomes the same consultant develops 5 bankable energy saving projects. These activities are accompanied in a frame-set of trainings, workshop and presentations that are compulsory for the contractor.

The Resource Efficient and Cleaner Production Centre is acting as a consulting company in the project and conducts energy audits in accordance with ISO 50002:2014 standard and develops technically and economically optimized energy efficiency (EE) investment projects in the sector “non-metallic mineral construction materials”

Overall concept for the implementation of pilot measures

Phase one: Energy audits
(15 factories invited for this first phase from each of the above listed sectors)

The result of this phase will be concise and instructive energy audit report (produced by the local contractor and reviewed by an evaluation team from GIZ) on each of the participating factories. The local contractor shall present this report to factory owners, managers and staff on site. Those will also receive training (One-day training on site) and expert advice from the local contractor on how to plan, implement, and monitor ad hoc no-cost and low-cost activities proposed in the energy audit report.

Out of five audits, one is accompanied by an international consultant to support the local contractor in terms of content and methodology. Constructive, best solution oriented cooperation between national and international consultant is presumed

Phase two: Development of bankable energy efficiency projects
(5 factories invited for this second phase from each sector)

This phase shall result in concrete project plans for the implementation of technically and economically feasible investment projects proposed in the energy audit for each of the participating factories. Outputs shall include technical and financial project plans including bankable project documentation (financial indicators – pay-back, IRR, NPV etc.) compiled by local contractors following typical requirements of relevant financing institutes. Factory owners, managers and staff shall be training by national contractors (alongside the job) on how to develop, implement and monitor such projects by the local contractors

Participating pilot factories

MEDT and GIZ will invite up to 15 factories in each of the following four industrial sectors to participate with one or more of their factories in these pilot activities:

Bakery industry, lot 1.
Dairy industry, lot 2.
Mechanical industry, lot 3.
Non-metallic minerals construction materials, lot 4.

The selection of above listed sectors resulted from previous sector studies assessing sector-specific EE potentials, economic dynamics and variety in company/factory size and structure. The participation of small and medium-sized enterprises is particularly encouraged

Outcomes

In the first phase, the Centre conducted detailed energy audits (compliance with ISO 50002:2014 standard) in medium-size industrial production factories and provided a one-day on-site training for the operational staff.
In the second phase and based on the first phase outcomes, the Centre selected 4 companies to develop energy efficiency investment projects.
Among other 4 only 2 energy efficiency investment projects were developed.

During the first phase, the RECPC conducted 14 energy audits.

Total identified economic savings amount to EUR 1.353.000 with the reduction of:

Energy consumption – 41.200 MWh/y (electricity 1.800 MWh/y, heat 39.400 MWh/y);
Emission generation – 8.700 t CO₂-eq./y.

The investments required for options implementation are EUR 2.285.000.