Energy Efficiency in Buildings: Europe and Central Asia

Marina OlshanskayaUNDP-GEF Regional Technical Advisor

Expanded Ministerial Meeting: Energy Efficiency for Economic Growth Atlantic Council ENERGY &ECONOMIC Summit

Istanbul, November 21, 2013

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UNDP-GEF Portfolio on Energy Efficient Buildings

• $ 800 m ($150 m from GEF) for 45

projects

• Over 40 countries, mainly in Eastern

Europe and Central Asia

3

Household

Standards and labels for EE household

appliances Building Energy

Efficiency Retrofits

Community

National Energy

Efficiency Programs

NationalGlobal

Program Framework

for Low Emission Buildings

Regional /Global

Energy efficient district heating

Municipality

BEFORE

AFTER

Objective: achieve market transformation and increase uptake of energy efficient technologies and practices at household, community, municipal and national level

Energy Efficiency at Local, National, Regional Level

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Buildings - the largest energy consuming sector in Eurasia

35%

30%

2%

33%

2010Buildings Industry Agriculture Others

35%

30%

2%

33%

Buildings Industry Agriculture Others

Final energy consumption by sector in non-OECD Europe and Eurasia, 2010

with BIG potential for improvement

0

100

200

300

400

500

600

EU 15 Kyrgyzstan

kWh/m2/yr

EU 15

Kyrgyzstan

Sources: OECD/IEA, UNDP/GEF Project Reports (Kyrgyzstan and Turkmenistan)

5, 5

Over 50% energy can be saved cost-effectively

Sources: UNDP/GEF Project Report, Uzbekistan

66

in Bulgaria, Uzbekistan, Montenegro - everywhere

Source: UNDP/GEF Project Reports

B E F O R E

A F T E R

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efficiency is not only about energy …

Sources: UNDP/GEF Project in Uzbekistan

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Where are the bottlenecks: market failsNo effective demand for “negawatts”:• Tariffs remain low, but not everywhere

and not that low• Tenants - disorganized, ignorant about

EE and often poor • Municipalities lack capacities

Supply of technologies, services and financing inadequate: • ESCOs are few, with poor financial

standing and ability to attract capital• Financing – does not match risk/reward

profile of building EE projects&clients• Domestic EE products, materials, skills

are in short supply (and expensive)

Electricity prices for households vs energy recovery cost

Share of household spending on energy in Tajikistan

Sources: UNDP 2013 (forthcoming)

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Solutions: Leadership

Policies and their systematic implementation• One EE Law is not enough• Tariffs, Housing Relations, Budget Code,

Building Codes, Public Procurement, etc

Public sector has to lead by example:

• Croatia: Energy Management System covers 11,000 public buildings, annual saving to state budget - 18 mln US$

• Kazakhstan: National Modernization Program

– public commitment to invest 640 mln $ in building modernization till 2020

Visit of Kazakhstan President Nazarbaev at pilot energy efficient building in Karaganda, KAZ

Energy Charter of Croatia signed by ALL regional and local authorities

Sources: UNDP/GEF Projects in Croatia and Kazakhstan

10, 10

Thank you

Source: UNDP/GEF Project in Russia