EXPERIENCES ON ESTABLISHMENT OF THE

ENERGY MANAGEMENT IN UKRAINE

Prof., Dr.Sc. Prakhovnik A.V.,

Ass. Prof., Ph.D., Inshekov E.N.,

Ukraine, Kiev

I E E

CONTENT Background and History Energy management in Ukraine Barriers on the way to the energy

efficiency System strategy of effective energy

use Available Resources

Background for energy management in Ukraine

New political and economical situation after independency;

Energy situation (energy security, import of energy sources, energy efficiency, etc.);

Needs for professionals:

-  old education system;

-  new economic knowledge; Needs for new type of specialist –

energy manager.

Support for energy management in Ukraine

Internal:-    political: energy saving – priority in economy;-    legislation: Law about Energy Conservation (1994 – first in NIS); Law about Education (new reduction, 1994);- state organization: State Committee for Energy

Conservation (1995). External:

-   income of foreign investor, owners, joint-organization;-  technical assistants (EU–Tacis, USA–USAID, Canada–

CIDA, etc.);-  grants, between states agreements (Germany, Denmark,

Sweden, etc.).

Start of activity and history of development

• Discussions and forming needs for specialists(1994, 1995);

• International conference “DSM’ (December 1995);

• EU-Tacis project “Establishment of the TCEM”(1996 – 1998);

• Opening of new specialty in education system (1997);

• Establishment of Institute of Energy Saving and Energy Management (1997);

• USAID – project for energy audit in industry (1997-99);

• EU-Tacis project “Establishment of the Network of TCEM” (1999 – 2001).

Energy management – definition (1) management of energy use process,

namely – formulisation of aim, planning and organisation of activities, coordination, registration and control of optimal (as most rational) use of all kinds and forms of energy during advisable maintenance of human needs with minimal negative impact on environment, with conditions of best use of organisation’s resource potential in energy use;

Energy management – definition (2)

- supervision of personal, which manages energy use for reaching high energy efficiency on the basis of material and financial resources of organisation.

Energy management system in Ukraine

Barriers on the way to the energy efficiency Financial Are often mentioned while discussing energy saving problems Social Connected with the level of education, information providing and mentality Manufacturing For an industry the energy productivity often isn’t esteemed as the relevant part of business. There is so-called “manufacturing specify”(directorate of an industry doesn’t pay attention to energy efficiency but to own manufacturing specific problems). Management - organizational Are basically connected with the relics of a command- administrative management system Legal As the law about energy saving has no "direct acting" (it isn’t of a direct administrative executing), it is necessary to elaborate and to accept a complex of the legal acts which would provide the solution of the energy saving measures efficiency problems: Market The implementation of market transformations does not respond to the modern requirements

Financial

Absence of capital, especially current means and depreciation funds

High bank credit bets

Large costs of capital escalating owing to

the high credit bets

Usage of the non - money forms of clearing (barter, bills)

Non-payments for used energy and fuel

Absence of necessary investments, including external

Social Consumers’ low level of knowledge about

efficient measures on energy savings, in particular, poor usage of Internet-technologies

Low level of education in the sphere of energy

saving, including professional "The problem does not concern me ", that is "

this is not my business" Existing energy services specialists’

traditionally conservative approach to the problems of energy efficiency increasing

Lack of means among population to buy

modern household power devices of high efficiency

Manufacturing

Priority of investments to technologies before the investments toenergy efficiency

Technological losses:- due to high ash content of coal;- essential power supplies energy losses;- limitation of the electrical energy consumers

Commercial losses Low technological level of the energy-using equipment

High percent (more than 70 %) of wear and tear of main energyequipment.

Management - organizational

Energy-management operational system is not created In enterprises there are no effectively operating power services

and obsolete generating equipment is used The price of energy is determined by the administrative

solutions, first of all by political reasons, and only then – byexpenses

The planned economy normative base is transferred tomarket economy of Ukraine in some cases

The documents of the energy supplying organisations andpractice of their usage do not take into consideration theconsumer’s rights.

The chiefs give their priority to the goods liquid on an externalmarket, with high-level of energy expenses

Legal

Absence of the normative acts for the mandatory account ofenergy

Impunity for non-payments for the consumed energy The energy consumers losses due to cutting-out and to off-

standard energy supplying are not taking into consideration Absence of the system of energy saving standards and

normative acts which could regulate the levels of energyefficiency equipment.

Market The market of the energy saving equipment and technologies bases on

lobbying of the particular firms-producers interests Poor motivation Insufficient experience and culture of marketing, business-planning,

management of energy saving projects Actual expenses, connected with non-rational energy use are covered not

at the expense of guilty, but society Actual expenses for the environmental pollution, for energy manufacturing,

transfer or consumption are covered by the society The excessive energy consumption is covered not only by consumers, but

by the society - at the expense of import of additional energy resources Absence of choosing of the energy suppliers Rules of relations between energy suppliers and consumers are not

corresponding to market relations

Barriers (obstacles) for the energy efficiency

can be sorted as: 

administrative - obstacles of organizational and behavioral character.

  technological – obstacles based on non-

effective and out-of-date technologies of energy producing, transformation, transmission, distributing and use.

System strategy of effective energy use Reliability It is necessary to apply the most effective means to provide reliability (along with continuity) of energy supplying.

Prices and tariffs policy The rules and mechanisms of the prices on electrical energy fixing should ensure a correctness and transparency of pricing both for the sellers and for energy customers; they should be effective. And new normative acts should be introduced.

Legislation and normative base For energy policy is it relevant to accept new and to modify and make additions to the existing laws and normative acts of Ukraine

Energy use efficiency The increase of the energy use efficiency will promote the increase of the energy supplying reliability.

Environmental protection and decreasing of influencing on climate change

Conclusion (1)

1.    Modern tendencies of energy strategy in the world are directed to solve three tasks: energy ensuring, energy availability (by prices and energy saving), and energy accessibility (by minimum influence on the environment).

2.  Obstacles on the way to energy efficicency can be devided up into: technologocal – those which are based on non-effective and out-of-date technologies and administrative – obstacles of organizational and behavioural nature.

Conclusion (2)

3. Main conceptual regulations of the stategy of overcoming of these obstacles were presented and anylized separately in every class (administrative and technological)

4. Conceptual regulations were harmonized to the main world tendences.

Physical resources

Classroom (108 m2) is designed for comfort placing of up to 50 participants, the furniture allows flexible arrangement. The room is equipped with the following facilities:

• presentation equipment (white board, clip board, etc.);

• air conditioning, automatic lighting and lamellas control;

• simultaneous translation equipment;

• local computer network, audio and video equipment;

• multi media block, overhead and slide projectors.

TRAINING PROCESS

DEMONSTRATION HALL

Room (108 m2) with demonstration rigs, samples of energy efficient equipment, models and posters, used during training process. Today we have demo rigs for lighting systems, electric drive, flow metering, electric power and heat meters, district heating, etc. Companies, producing energy efficient equipment, arrange in the hall exhibitions of their products, which is available on Ukrainian market.

DEMONSTRATION INSTALLATION ROOM

Aim of this room is to show energy efficient equipment in operation. It contains air handling unit with frequency con trolled motor drive, chiller, electric boiler (for local heating system), uninterruptible power supply unit, switchboard with meters and building energy management system (BEMS). BEMS gathers data from meters, sensors, roof mounted weather station and monitors energy use at the Center. All equipment is widely used during training.

Thank you for your attention!

Borschagovska 115,

03056, Kiev, Ukraine,

ph. +38-044-2417037, fax 2417038,

nii_energiya@ukr.net

avp@tcem.ntu-kpi.kiev.ua

1. Basic administrative conceptual regulations(1)

In financial block        To create conditions that the credit

bank system begin to grant investments for the proper technological measures (changes) on energy saving.

       Any foreign investments to the Ukraine economy should be respond to requests of energy saving as a part of end use.

1. Basic administrative conceptual regulations (2)

In a social block       The system of subsidies and benefits for the of

scanty groups of population should be given by money exceptionally.

  To create the system of information for enterprises management as well as individual citizens about possibilities of energy saving, actual cost of energy, energy efficient equipment.

    To create consultancy centers on energy and water save use (best praxis of EU countries).

       To rise considerably the educational level in the sphere of energy saving, as well as professional.

1. Basic administrative conceptual regulations (3)

In production block        To create system in which owners and managers

of industrial enterprises can get investments and credits only on condition that their investment projects answer the modern requirements on energy efficiency.

       Immediately introduce administrative actions again “commercial losses” for energy.

       To develop and to introduce the system of energy saving motivation in production sphere.

       Liberalization of energy market. To enter possibility for user to change the energy.

1. Basic administrative conceptual regulations (4)

In administrative block        To eliminate administrative or political

interference into the process of price for energy forming. Prices for energy should be based on the proper charges.

       To replace immediately the existent normative base of centralized planned economy regarding administrative setting of norms, plans for energy.

       Instead of few energy power inspections (there are more of them than it was in the USSR) there is enough to have the only one State power inspection.

1. Basic administrative conceptual regulations (5)

In legal block        Legislatively introduce the Law about

obligatory energy accounting, which should forbid purchase – sale of energy without commercial accounting.

       To spread systems of energy marking of equipment according to energy efficiency factors.

       To introduce minimal standards of efficiency for devices and equipment.

       To introduce energy power certification of building etc.

1. Basic administrative conceptual regulations (6)

In a market block        To prepare and introduce market rules for tender

procedure. (Market of energy saving equipment and technologies looks like «wild market»).

       To create conditions for introduction of energy saving motivation both in industry and in public society.

       Wide usage of advertising and voluntarily agreements should replace different fiscal methods in system of energy saving management.

       To create conditions at which the additional charges connected with inefficient use of energy, with environment pollution, removing of ecological after-effects at consumption of energy will be covered by pollutants.

 

2. Basic technological conceptual regulations

I.   To prepare and introduce to an action a new tax for those types of productions and enterprises which have low indexes of specific energy consumption in comparison with EU countries.

II.   To stimulate on new principles a development of local renewable energy sources by preparation and introduction of legislative acts at the level of Oblenergo.

III.   To stimulate decentralized generation (DG) for peak demands compensation.

Stimulation of the decentralized generation (DG) to cover peak demands

Both traditional sources of small power and RES can be sources of DG to cover peak demands.

1.  High efficiency of these blocks and installations as they are created, set and exploited in modern conditions with use of energy efficient technologies and methods of control.

2. High enough coefficient of use of the set capacity, related to effective algorithms and methods of control of blocks and installations operations.

3.   Low indexes of hazardous substances and GHG emissions, especially of CO2. The given aspect will gain the larger actuality with approaching of the term of action of the first stage of the Kioto agreements (2008-2012).

3. Harmonization of ways of Ukraine and world community in energy efficiency

“Strategy of development of energy efficient economy of Ukraine” consists of five blocks:

       reliability (safety) of energy supply;        policy of prices and tariffs;        legislative and normative base;        programs of efficient use of energy

directly;        environment protection and reduction of

influence on the climate change.

Stimulation of local renewable energy sources development.

to change the operating scheme of stimulation of producers of RES equipment for scheme of stimulation of user of these sources, which can be executed on the condition that the proper equipment got certification of quality and reliability;

 to create and equip the proper certification centers for equipment and technologies on the use of RES.

human resources; educational resources; physical resources: premises of TCEM; presentation equipment and tools for

preparing training materials; printing and copy equipment; demonstration equipment and demo rigs; set of tools for maintenance of demo rigs; licensing.

Available Resources

INFORMATION ACTIVITY

TCEM has powerful software and hardware complex for preparation, editing and printing of materials for trainers and trainees. Together with lEE Information and Publishing Center "Energy of Future Age" TCEM provides various information service for instructors, trainees and other interested parties, including: search, selection and dissemination of information on requested topic; work with library funds, including periodicals, demonstra-tion and information materials on different carriers; preparation of brochures, slides, overheads, CDs, etc.

Existing system in Ukraine for preparation of specialist in the field of energy saving

• organizational level: State Committee for Energy Conservation (state co-ordination); Branch Ministry and Industry (branch co-ordination); Private company, EsCo (market co-ordination).

• educational level (prepare of bachelor, specialist, master): national cross-educational program (from kinder garden, schools to

University, industries); Institute for Energy Saving and Energy Management (base

organization in Ukraine); Network of University, which is certified for this activity.

• implementation level (training, training skills approval, retraining): TCEM, Kiev (co-ordination unit); Network of TCEM (regional work).