Manual on Community Based Approach to Local Development Project – Phase 2 (стр. 15 )

·  Select the best option out of priories, that is the most feasible for implementation;

·  Prepare technical documentation/business project with support of private company or technical department of RSA;

·  Get the project/technical document approved by the key sponsors (local authorities, private sector) who showed willingness to support

6.3.5 Support business project implementation

·  Prepare business project proposal using CBA format

·  Attach necessary documents and submit to RIU. RIU team reviews documents and recommends for approval, if satisfactory

·  PMU appraises the document and gets approved from project approval committee

·  Sign grant agreement between UNDP and cooperative. Tranche is released

·  Implement business project using the same procedure as in case of micro-project

6.3.6 Handover and sustainability mechanism

·  Conduct public audit

·  Handover the object to local authority (in case of communal infrastructure) or retain it to the cooperative itself (if it belongs to cooperative);

·  Establish sustainable mechanism for the object (note that unlike in case of micro-project, the cooperative has to be fully responsible to charge enough fee from the beneficiaries to meet total operation and maintenance cost)

·  Ensure sustainability of cooperative

·  Adopt other relevant activities mentioned in chapter-8 (post-completion situation) as appropriate

CHAPTER SEVEN

PROMOTING ENERGY EFFICIIENCY[18]

	Main Activity	Sub-Activities
1	Energy saving strategy	1	Update existing energy strategy/prepare a new strategy
2	Make energy saving recommendations
3	Support technical documentation preparation
4	Launch awareness campaign on energy saving
2	Implementation of energy saving projects	1	Selection of model community
2	Get priority approved at LDF & mobilise resources
3	Form Functional Group (FG) & build its capacity
4	Develop technical design and cost estimates
5	Develop detail proposals
6	Approve the proposal
7	Resource delivery from CBA
8	Procurement and implementation
9	Book keeping & monitoring
10	Public audit, handover and sustainability mechanism

CBA support to energy saving is envisioned in 4 perspectives: strategic, awareness, regular mode of energy saving in public buildings (followed in CBA-I) and search for alternative energy sources.

CBA-I type energy saving support will be continued in CBA-II as well. Procedure for this support is described in details in earlier sections on micro-project. The remaining three perspectives are the additional features of CBA-II. Besides supporting local communities, CBA-II aims to make tangible support to regional authorities, raise public awareness on need and ways of addressing the problem of energy loss and make experimentation on micro-size alternative energy sources that could be implemented and managed by local communities in remote rural areas.

Government of Ukraine has developed detail policy on energy sector[19]. Founded on the principles of investment; strong quality control; monopoly in production, purchase and supply of power, the policy aims to open up production sector to private sector with mandatory requirement for up to small size power plant (producing 100 MW or more power) to get connected to national grid at formula-based pricing. The policy is liberal in case of micro-size power plant and especially for ‘green energy sources’. Such plants do not need to be connected to national grid and that for the plant less than 10 MW capacity license will not be required. Incentives in various forms (taxation, equipment import tax etc.) also exist to promote micro-size power production from alternative energy sources. However, the formula-based pricing will remain in force for supply of power from such plants to the local consumers.

The policy also recognises that Ukraine rich in alternative (renewable) energy potential. Level of exploitation of this potential, however, is at very low level (about 3% of total energy). To promote this sector, state programme exists in 14 of 27 administrative territories. The most common alternative energy sources for rural Ukraine and requiring less sophisticated technology are – solar and bio-fuel (bio-diesel, bio-gas) and wind.

Several Ukrainian villages (especially those which are located away from main supply line and their population size is very small) are not connected with gas supply and several of them have highly inefficient power-based heating system in public buildings and in private houses – causing them to pay more tariff but remain underserved. Private sector is active in Ukraine in the field of alternative energy. In all major cities there are companies promoting this sector and supplying their services. However, their focus is limited to private households and small/medium size power munity-managed micro-size alternative energy production is still yet to draw attention of local authorities and private sector. It is in this very context that CBA-II envisions value addition through alternative energy sources.

7.1 Energy Saving Strategy Development

7.1.1 Revision of regional strategies on efficient use of energy

Regional authorities (selected based on competition) will be supported in revision/updating of regional energy efficiency strategy. The technical/advisory support will be provided on cost sharing basis and co-financing from regional budgets. Amount and/or proportion of CBA support will be determined on case by case basis. Up-to-date strategy will serve as a basis for more comprehensive support to communities with the view of further replication/scaling up of successful models of energy saving on the local level. It will provide an opportunity to support initiatives of regional authorities towards a more holistic approach in increasing efficiency of energy use at the regional level.

7.1.2 Recommendations to improve energy efficiency in public infrastructure and housing sector.

Technical support will be provided to assess current energy consumption and explore room for reducing the consumption, based on which recommendation will be made to enable selected local authorities and local population to reduce energy consumption in public buildings and housing sector in rural areas

7.1.3 Support technical documentation for energy efficiency measures.

In line with regional energy efficiency strategies, CBA-II will provide support to the development of the technical documentation for the selected energy efficiency projects of the large scale, on cost sharing basis. It will allow local authorities to apply for State Funds financing or to any other donors.

7.1.4 Awareness raising campaign on efficient use of energy

On the basis of the developed recommendations, public awareness campaign on specific measures to reduce energy consumption and to raise energy efficiency in the public infrastructure and housing sector for the local authorities and communities will be launched. Campaign is expected to serve as a model for national replication.

7.2 Support Implementation of Micro-projects on Renewable Energy Production and Energy Saving

CBA-I type activity will be implemented in all regions of Ukraine following the standard procedures of community mobilization.

Activities related with experimentation on alternative/renewable energy will be implemented in four regions (??) of Ukraine selected on the basis of the following: a) decision of the regional authorities to update a regional strategy on energy efficiency; b) allocation of regional or/and national resources for the implementation of the strategy; c) highest per capita emission of CO2; and d) diverse geographical representativeness. Enrich based on regional launching slides

7.2.1 Identification of alternative energy community

Among the COs formed in the pilot territory, RIU should look for the one which has dire need of energy supply from alternative sources and where there is possibility to tap alternative energy (biomass, wind, solar etc.). Make a list of such communities and share the finding with the local authorities to inform them in advance that some of the communities in the list might opt for micro-project on alternative energy.

Supply basic information about alternative energy, available technology to tap them and existing government policy on alternative energy in the identified community.

7.2.2 Get priority approved at LDF & mobilise resources

Hold 2nd dialogue. Motivate CO-members to identify and prioritise their development needs. If the CO-members have strong willingness to go for renewable energy they will place it at the top.

Following the process in chapter – get the priority approved at local council and then at the LDF meeting. If necessary, invite local private company on alternative energy service to these meetings.

Since the selected region/rayon would go for alternative energy, financial and technical support from local budget should not be a problem. CBA-II will offer up to 70% of the cost with a ceiling of $ 20,000 equivalent.

7.2.3 Form Functional Group (FG) and build its capacity

The COs whose energy plan is approved at LDF, should form a functional group as described in section 5.1.1 The group should be trained in the area of alternative energy (concept, technical aspects, existing policy and legislation on alternative energy, implementation mechanism, operation and maintenance, financial management and book keeping). If possible, they should be exposed to successful site.