"ESCO-Rivne" - news

July 23, 2008 г. Rivne: UNDP Resident Representatives a.i. Ms. Joanna Kazana-Wisniowiecka

together with the representatives of Rivne municipality participated in the Opening ceremony of Boiler plant for Rivne Humanitarian Gymnasia, constructed under financial support of UNDP within the full-scale energy efficiency project, which is being implemented in Rivne since 2003.

Technical decision applied during the boiler plant design and construction is unique for Rivne municipal heat supply, this is the pilot installation for heat supply problems solving in the region. The newly opened boiler plant will supply heat and hot water to the Humanitarian Gymnasia complex, Swimming Pool and neighboring residential houses.

Rivne is the pilot city for energy saving and energy efficiency projects implementation as long as all such UNDP initiatives were met with approval and support from Rivne authorities. That is why a number of energy saving projects were implemented at Rivne communal/municipal sites under support of both UNDP and city budget.

"The project implemented by UNDP and local partners in Rivne focuses on developing and sharing solutions to the important challenges we face on various levels", - - points out Alexey Paschenko, UNDP Ukraine Programme coordinator on energy and energy efficiency, Rivne project manager, -" starting from climate change mitigation through reduction in fossil fuel consumption, to solving local technical problems (replacement of obsolete inefficient equipment) and economical issues (budgetary funds saving due to the efficient utilization of energy resources). Moreover, significant social effect is achieved owing to the established quality heat and hot water supply services, which still remains a typical problem for Rivne as well as the majority of small scale cities in Ukraine"..

The global environmental goal to be achieved by the full-size energy efficiency project in Rivne is to contribute to greenhouse gas emissions mitigation through significant reduction in fossil fuel consumption. These improvements will result from effective operation of the established "Municipal energy service company in Rivne" aimed to design and implement all necessary energy efficient measures in the municipal buildings through energy performance contracts or other applicable financial scenario, at once reducing the facilities' energy, operation and maintenance costs and contributing to environmental protection.

According to the words Ms. Svitlana Bogatyrchuk-Kryvko, Rivne Vice-Mayor in social and humanitarian issues, owing to this project not only selected educational institution received quality heat supply, but the Rivne city as a whole got significant saving of budget funds and effectual mechanism for similar projects implementation at other educational institutions: "The projects, implemented under the grant support of UNDP, show us a viable example how to receive high-quality services and at the same time save money. To my mind, such projects will be priority for Rivne Municipality for the next couple of years, since even prior calculations prove that schools and kindergartens of Rivne require tens of millions hryvnas for heat supply system rehabilitation.".

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More than 40 municipalities of Ukraine participated in the event. The key issues discussed were the prospective ways of energy savings in municipal sector.

Были заслушаны доклады следующих участников семинара:

Mr. Anatoly Kopets (the Head of “Association of Energy Saving Cities of Ukraine”) - reported on the necessity of preliminary heat supply expenses monitoring as an important component for power inputs analysis, realization, energy efficiency projects’ design and implementation database creation, and monitoring / comparison background of actual energy consumption before and after project’s implementation.

Mr. Borys Pugach (Ministry of Fuel and Energy representative) - presented the seminar participants’ his report on problems of heat supply and decentralization of heat supply system as a whole. According to report, the principal ways of further heat supply market development were the following: (1) personal (local) boiler-plants creation; (2) rehabilitation and building of new centralized boiler-plants; (3) implementation of co-generation. Disadvantages and advantages of proposed heat production schemes were shown. In case of further price increasing on energy carriers’ the most perspective way will be the creation of combined heat and power plants.

Mr. Olexiy Khobotyuk (representative of “Arena-EKO” company, Ivano-Frankivsk) - has told about life example of energy audit implementation in the city of Ivano-Frankivsk. On the basis of achieved results the project of two combined heat and power plants construction was designed. Now one heat and power plant is already built. The results of its activity are positive and the next heat and power plant building is planning.

Mr. Oleg Luksha (the city of Uzhgorod) - has a report about the potential energy saving market capacity in municipal sphere of Uzhgorod.

Mr. Volodymyr Burdon (Deputy Chief of Chernigiv Municipal Economic Department)– monitoring as an instrument of heating expenses regulation.

Mr. Andriy Rudyk (Vice-President of MATEK Company)– goals and objectives of the International Association of Thermo-Generating companies.

Mr. Dmytro Zaruba (Vice-President of the TECHNOTHERM Company, Kyiv)– problems of energy saving projects implementation.

The major problems were determined to be: Absence of stable sources of funding for the energy saving / efficiency projects Imperfect legislative basis for energy saving projects payback / reimbursement

Thus, the speech of ESCO-Rivne representative about the potential for comprehensive energy saving services provision (including Client’s premises energy audit, project design, funding and implementation) was very relevant. During the lively discussion followed the speech the prospects of further collaboration between ESCO-Rivne and other municipalities were determined.

Please find below the shorthand of ESCO-Rivne Marketing Manager Mr. Oleksandr Kravchuk:

Dear Ladies and Gentlemen!
Let me introduce myself. My name is Oleksandr Kravchuk. I represent the Municipal Energy Service Company in the City of Rivne. Our Company was founded in 2003 by common efforts of Rivne Municipality and Oblast Administration with support of UNDP / GEF Project “Climate Change Mitigation in Ukraine through Energy Efficiency in the Municipal District Heating”.
The Company’s major clients are energy producers / suppliers, water supply and sewage companies etc. Another group of clients consists of communal energy consumers: administrative buildings, schools, hospitals, kindergartens, resident buildings.
Our goal is to help our clients earn some money by saving energy. It can be done through reduction of energy consumption and new technologies implementation.

The basic services of ESCO-Rivne are presented on the slides:

We are the only one company in Ukraine that offers energy saving services in the communal sphere. Our Client hasn’t to find available funds or obtain bank credit, analyse its energy consumption state and find out technical decisions of energy consumption reduction. We offer turn-key implementation of the economic, environmentally and social effective and promising projects.

For these purposes we have all necessary technical and financial resources, experienced and trained staff. We can solve any technical problem – from large-scaled city-wide projects to small ones on the building or apartment level.

Here you can see the Company’s structure.

During the last year ESCO-Rivne has performed 10 contracts in Rivne, 4 more contracts are now on-going, including 2 projects (heating main construction from Naberezhna St. to the Myra Avenue and Central Municipal Hospital Boiler-Plant construction) implemented under support of UNDP.

The ESCO-Rivne distinguishing feature is that we not only provide energy audit and energy efficiency project implementation, but also following monitoring.

Project monitoring allows showing the actual saving after the works completion. It also serves as a basis for all settlements between the client and ESCO-Rivne. Besides, monitoring data can be used to show the environmental effect of the project.

Thus, I can show the combined heat and power plant rehabilitation (on Knyazya Volodymyra St. in the city of Rivne) monitoring results:

Fuel economy – 7.13 thousand of tons of coal equivalent;

GHG emission reduced to 9.9 thousand tons
;

Economic effect after energy saving project implementation amounts to 455 000 UAH.

The social effect of the project was not of less importance.

On the next slide you can see the process of energy saving project’s preparation and implementation.

The crucial condition of Company’s successful operation is regular pay-back from the Client.

The payback can be secured by guarantee commitment.

So, what are the main advantages of collaboration with ESCO-Rivne? What are the ESCO-Rivne financial sources? You can find the answers on the following slides:

This ensures the stable Company operation cycle and continuous funds reinvestment.

Since ESCO business and energy saving concept are pretty new for Ukraine, the Company applies great efforts to inform and mobilize local communities through implementation of wide educative campaigns.

So, summarizing all above mentioned I want to assure you that ESCO-Rivne is the very Company you need to solve your problems in communal sphere and improve your citizens’ the quality of living.

Thank you for your attention and I call you for collaboration!

During this meeting the issue of CJSC “Municipal Energy Service Company in the city of Rivne” reorganization into the Opened Joint Stock Company “Municipal Energy Service Company in the city of Rivne” was discussed. In accordance to the accepted decisions the following organizations were informed about:

State Registration Office in the City of Rivne – about CJSC “Municipal Energy Service Company in the city of Rivne” reorganization into Opened Joint Stock Company “Municipal Energy Service Company in the city of Rivne”;
CJSC “ESCO-Rivne” creditors – about the reorganization into Opened Joint Stock Company “Municipal Energy Service Company in the city of Rivne”.

Besides, the Liquidation Commission was formed and confirmed. The decision of Constituent Assembly meeting announcement was taken.

This reorganization is implementing to raise company’s investment attraction for foreign investors. The decision about part of shares’ distribution among the Company staff was taken with the purpose to increase persona; interest in company’s successful operation.

The purpose of this visit was to estimate the UNDP / GEF Project "Climate Change Mitigation through Energy Efficiency in Municipal District Heating" ( the Pilot Project in the city of Rivne) Phase One results, and possibilities of Project’s extension with Phase Two.

During the visit Mr. Lavoie held briefing and meetings with UNDP management, representatives of Ministry of Economics and European Integration of Ukraine, and authorities of Rivne city and oblast.

But the major part of Mr. Lavoie visit to Ukraine was devoted to analysis of company’s activities and “ESCO-Rivne” development outlooks. During meeting with Company management a number of issues related to prospective and current ESCO operations and the optimal ways of their solution were discussed. Mr. Lavoie shared with ESCO staff his experience in foreign energy service companies activities and discussed the special features of Ukrainian energy saving market.

Mr. Lavoie visited the sites where energy saving projects were implemented by ESCO-Rivne and promising objects for up-to-date energy saving technologies to be implemented. Being a specialist in ESCO-business Louis-Philippe Lavoie highly appreciated the potential of Ukrainian energy saving / efficiency market.

Some pictures you can see here.

With knowledge of Project’s Phase One results, the foreign expert positively reported about the overall results and mentioned the Project’s and Company’s readiness to the Phase Two in full correspondence to the set time constrains and scopes.

Moreover, Mr. Lavoie as one of the “Econoler International” directors, expressed his interest in collaboration between the companies, especially in experience exchange and common projects implementation in Ukraine. Summarizing the Mr. Louis-Philippe Lavoie visit ESCO-Rivne activity was highly appreciated and now there is a very good chance to establish long-term partnership with the world-known Canadian energy service Company Econoler International.