EBRD SWUK 1 - Energy Efficiency and Environment Cooperation Fund 2009-2026

Results 2024 In 2024, ten projects were active. These were implemented in Chernivtsi (1), Lviv (2), Lutsk (3), Ternopil (1), Zhytomyr (1), Uzhhorod (1). The Ukraine Public Sector Energy Efficiency Framework (with SWUK funding) had activities in Kremenchuk, Kryvyi Rih and Dnipro. During the reporting period, one district heating project in Lutsk was completed. Two new project preparation assignments were commenced in 2024.   - 76 Individual Heat Substations (IHS) installed and connected to the district heating system in Zhytomyr, benefiting 25,000 residents. - 200 out of 287 IHSs installed in Ternopil - Lvivvodokanal reduced its water losses and electricity consumption. - Improvement to the entire Lutsk district heating system, benefiting over 105,000 residents (including IDPs) - More than 31,000 residents in Lutsk benefited directly from the installation of 314 IHS, including, as a result of cost savings, 60 IHSs more than originally foreseen. - A reduction in Green House Gas (GHG) emissions equal to more than 36,000 tCO2eq/y in Lutsk. One project was completed during 2024 Lutsk District Heating. This project was implemented between 2014 and 2024 with the state municipal enterprise Lutskteplo. The project included a co-investment grant from E5P of EUR 4,4 million and a concessional loan from the Clean Technology Fund (CTF) of EUR 3million. SWUK funded the project preparation, Corporate Development Support Programme (CDP) and project implementation support. This support contributed to above mentioned results (installation of 314 HIS and reduced GHG) as it provided implementation and contract supervision of the project. According to EBRD, this support also enhanced transfer of knowledge and skills in the areas of international financial, managerial, procurement and engineering to relevant staff of the company. The CDP improved the financial and operational management of Lutskteplo, according to EBRD. A Public Service Contract was signed between the City and the Company, and cost recovery tariffs introduced contributing to Lutskteplos reform agenda. Lutsk District Heating Phase II was approved in 2024 and is a follow-on investment project with funding from EU NIP. The project will be EBRDs first district heating project in Ukraine which includes installation of heat pumps. The heat pumps will ensure hot water supply to the hospital of the Ministry of Internal Affairs, which is also used for rehabilitation of war victims, the local fire department and residential buildings.  During 2024 the SWUK funded projects continued to move from immediate actions related to the war response towards project implementation and development of new projects in Ukraine. All municipalities, except for those in the occupied areas such as Mariupol, continued project implementation activities. Cumulative Results Since 2009, 38 TC-projects have been funded through SWUK and implemented in Chernivtsi, on Crimea, Dnipro, Ivano-Frankivsk, Khmelnitsky, Kremenchuk, Kryvyi Rih, Kyiv, Lutsk, Lviv, Mariupol, Mykolayiv, at National level, Ternopil, Uzhhorod, and Zhytomyr. Lviv has benefited the most with projects in the areas of district heating, road rehabilitation, solid waste and wastewater biogas. Lviv is part of EBRD's Green City initiative. In 2023 the Lviv District Heating Project was completed after ten years of cooperation between EBRD and the district heating company of the City of Lviv, Lvivteploenergo. Through this partnership, amongst others: - more than 400 individual heat substations were installed, - a new Supervisory Control and Data Acquisition (SCADA) system was commissioned, and old heat transmission and distribution pipelines were replaced, resulting in 21% reduction of natural gas consumption and 15% reduction of electricity consumption versus the original baseline. - These energy efficiency gains resulted in 51,876 CO2 emission savings (20%) in the project area for over 87,000 permanent residents and an estimated 18,000 IDPs in Sykhiv district of Lviv. - The installation of SCADA system also resulted in improved reliability of heat and hot water supply for over 342,000 residents of the City of Lviv connected to the district heating system. - The project provided an example for other regions of Ukraine, with similar heat demand side management projects which have recently been completed in Lutsk and Zhytomyr as well as being implemented in Ternopil and Chernivtsi. At the national level, the project contributed to a reform agenda which resulted in simplified construction norms related to the installation of individual heat substations both in residential and non-residential buildings. The total cost of the project, including technical assistance, was EUR 26.3 million including an investment grant of EUR 10 million from E5P. In addition to Swedens contribution to the E5P, Sida has provided financial support at a total of EUR 1.37 million through the Ukraine Energy Efficiency and Environment Consultant Co-operation Fund. This latter support financed a feasibility study, the project implementation costs and the corporate development programme (CPD); all key areas in order to implement the project. The Lviv District Heating project shows that significant aspects to a successful infrastructure development cooperation initiative include joint efforts of various stakeholders, several funding sources and mechanisms, as well as implementation of priority investment programme identified in the course of the feasibility study and approved by the City Council after public consultations. The Dnipro Public Buildings Energy Efficiency project was completed in 2022. The projected had a total budget of EUR 33 million and Sida contributed with EUR 500,000. Sida funds contributed to the verification of energy savings, a feasibility study and project implementation support. The Project helped significantly improve the previously poor physical condition of the selected public buildings through renovation of facilities and meeting heating requirements, significantly extending their useful life and supporting the City in a gradual shift to the international best practice in energy management. The verification of energy savings assignment confirmed confirmed the energy savings of 42% (equivalent to 25 MWh/y). Five of out of ten public service contracts concepts have to date been fully implemented. Early on in the implementation of SWUK, projects at national level and in "other" sectors were more common. As the projects continued to be developed, increased focus has been put on district heating and energy efficiency and solid waste management.

The SIDA-EBRD Ukraine Energy Efficiency and Environment Consultant Cooperation Fund is aimed at supporting energy efficiency and environmental projects and programmes financed by the European Bank of Reconstruction and Development in Ukraine.  The resources of the Fund are used primarily to finance consultancy services (TA/TC assignments) as part of preparation and implementation of larger investment projects. These assignments include amongst others to identify, prepare, appraise, supervise and/or implement of projects and programmes financed by the EBRD in Ukraine. The overall objectives of this intervention are to support: • Reduced emissions to the environment; • Sustainable use of natural resources; • Sustainable public services; • Energy efficiency; • Institutional reforms and sustainability of services; • Transition and social inclusion. • EU-integration This contribution is linked to 14389 EBRD SWUK 2 - Ukraine Municipal Infrastructure Cooperation Account 2020-2029.