2012
ANNUAL REPORT
United Nations Development Programme in Ukraine
TRANSFORMING THE MARKET FOR EFFICIENT LIGHTING PROJECT
ANNUAL REPORT
2012
United Nations Development Programme in
Ukraine
TRANSFORMING THE MARKET FOR EFFICIENT
LIGHTING PROJECT
Page 1 of 16
2012
ANNUAL REPORT
United Nations Development Programme in Ukraine
TRANSFORMING THE MARKET FOR EFFICIENT LIGHTING PROJECT
CONTENTS
TITLE:
EXECUTIVE SUMMARY
THE PROJECT'S OBJECTIVES
1. COMPONENT 1: PREPARE AND SET-UP NATIONAL POLICY
PAGE:
3
3
4
FRAMEWORK TO PROMOTE EE LIGHTING
1.1. STUDY OF INTERNATIONAL AND UKRAINIAN LEGISLATION REGULATING USED FLUORESCENT
LAMPS WASTE MANAGEMENT (WASTE COLLECTION, DISPOSAL AND RECYCLING)
4
1.2. STUDY OF NATIONAL AND INTERNATIONAL NORMS, STANDARDS AND LEGISLATION WHICH
PROMOTES TRANSFORMATION TOWARDS ENERGY-EFFICIENT TECHNOLOGIES IN LIGHTING
5
2. COMPONENT 2: IMPROVEMENT OF QA/QC SYSTEM FOR EE LIGHTING
6
MARKET
2.1. CHALLENGES
2.2. ESTABLISHING HAZARDOUS WASTE MANAGEMENT SYSTEM
3. COMPONENT 3: DEMONSTRATION OF EE LIGHTING PILOT PROJECTS IN
MUNICIPAL SECTOR
3.1. PILOT PROJECT 1: “SADZHAVA VILLAGE MAIN STREET LIGHTING MODERNIZATION PROJECT
WITHIN THE FRAMEWORK OF “SADZHAVSKE NAMYSTO” INTERNATIONAL FOLKLORE AND
ETHNOGRAPHIC FESTIVAL”
3.2. PILOT PROJECT 2: “ENERGY EFFICIENT PARK LIGHTING PILOT PROJECT IN BERDYANSK”
3.3. PILOT PROJECT 3: “MY CITY IS A BRIGHT CITY” PILOT PROJECT IN LUGANSK
3.4. PILOT PROJECT 4: LED LIGHTING IN THE COMMUNITY HOUSING SECTOR (STAIRCASES IN THE
APARTMENT HOUSES) IN DOBROTVІR OF LVIV REGION
4. COMPONENT 4: EE LIGHTING PRODUCTS PENETRATION INTO THE
6
7
8
8
9
10
11
12
RESIDENTIAL SECTOR
5. COMPONENT 5: REPLICATION AND DISSEMINATION OF THE PROJECT
RESULTS
13
6. PARTNERSHIP
15
7. FIELD VISITS
16
8. APPLICATION OF FUNDS
16
9. THE PROJECT EVALUATION
16
Page 2 of 16
2012
ANNUAL REPORT
United Nations Development Programme in Ukraine
TRANSFORMING THE MARKET FOR EFFICIENT LIGHTING PROJECT
EXECUTIVE SUMMARY
Energy-efficient lighting technologies are economical, commercially viable and technologically
available, but due to several barriers, they have not reached their market penetration potential.
Therefore, it is necessary to promote a certain degree of market intervention at the national
level.
Replacing incandescent lamps in the residential and commercial sector is one of the most
obvious and easiest methods to achieve energy-efficiency. The transition to efficient lighting can
occur at a very low cost with existing technology and provide immediate results.
Energy-efficient lighting is usually given lower priority in Ukraine compared to measures related
to heating supply. Energy consumption related to lighting is not as seasonal as compared to
heating; however, energy efficiency of lighting effects production and distribution of electricity.
Thus, there is an untapped potential for development and implementation of new energy
efficient technologies in Ukraine, including energy-efficient lighting. The Ukrainian Government
supports the activities associated with the increase of energy efficiency through various
regulatory arrangements and measures; however, general shortage of funds impedes
implementing large-scale energy-efficiency enhancement programs. Therefore, in line with the
foremost Government’s priorities, this Project is intended to reduce greenhouse gas emissions
by introduction of a large-scale change over to energy efficient lighting within Ukraine's
residential and municipal sectors.
THE PROJECT'S OBJECTIVES
The Project's foremost objective is to facilitate the market transition to more energy efficient
lighting technologies by removing barriers contributing thereby reducing of greenhouse gas
emissions; and therefore, in line with the foremost Government’s priorities, this Project is
intended to reduce greenhouse gas emissions by introduction of a large-scale change over to
energy efficient lighting within Ukraine's residential and municipal sectors.
In order to attain aforesaid objectives, the Project’s activities are divided into 5 main
Components:
1: Prepare and set-up the national policy framework to promote EE lighting
2: Improvement of QA/QQ system for EE lighting market
3. Demonstrational EE lighting pilot projects in municipal sector
4: EE lighting products penetration into the residential sector
5: Replication and dissemination of information of the project results
In 2012 the Project targeted the following goals:
Page 3 of 16
2012
ANNUAL REPORT
United Nations Development Programme in Ukraine
TRANSFORMING THE MARKET FOR EFFICIENT LIGHTING PROJECT
1. COMPONENT 1: PREPARE AND SET-UP NATIONAL POLICY FRAMEWORK
TO PROMOTE EE LIGHTING
This Component includes thorough review of existing relevant Laws and preparation of national
policy framework for promotion of EE lighting. The Team experts consider, as a first priority, to
conduct a research of existing Ukrainian legislation, compare thereof with relevant international
Laws in order to set a baseline that would promote EE lighting; as well as to conduct a separate
research covering the waste management (collection, disposal/recycling) of used CFL lamps
containing toxic agents (mercury in particular) and thereby address consumers’ concerns
related thereto as set forth hereinafter.
1.1. STUDY OF INTERNATIONAL AND UKRAINIAN LEGISLATION REGULATING USED FLUORESCENT
LAMPS WASTE MANAGEMENT (WASTE COLLECTION, DISPOSAL AND/OR RECYCLING)
Implementation of the Project’s objective relating to introduction of EE technologies requires
widespread application of much more energy efficient fluorescent lamps than conventional
incandescent lamps.
Due to widespread use of fluorescent lamps there is an issue related to waste management
thereof, especially those ones that contain mercury and therefore classified by Ukrainian
legislation as hazardous ones and subject to mandatory disposal by specialized enterprises
licensed by duly authorized governmental agency. Presently, Ukrainian legislature provides for
disposal/recycling of fluorescent lamps only by duly licensed legal entities. As for the
individuals/private persons there is no procedure whatsoever providing for collection and further
disposal of fluorescent lamps leading thereby to uncontrolled discard thereof by users and
environmental pollution by toxic substances. Thus, anavailability of efficient and affordable
solution of safe collection and disposal of used light bulbs raises concerns of environmentalists
and negatively effects the consumers’ opinion on EE lighting technologies.
Considering the above-stated, there has been an urgent need to find such a solution applicable
for Ukraine. The Project team conducted a dedicated study of Ukrainian legislation with respect
to used fluorescent lamps collection and further disposal giving due regard to the laws covering
separate collection of household wastes by comparing Ukrainian legislature with the relevant
laws applicable in EU, USA, RUSSIA, etc. The above study also included preparation of
recommendations as for the amendments to be made to applicable laws of Ukraine in order to
expand the use of fluorescent lamps and contribute to success of energy efficient lighting
projects’ implementation.
Therefore, considering the foregoing, the following activities have been undertaken and the
following results achieved:


Analysis of Ukrainian national policy, legal framework on lighting, fluorescent lamps
disposal and separate collection of household wastes.
Analysis of international legal practice (relevant laws applicable in EU, USA, RUSSIA,
etc.) covering used fluorescent lamps disposal and comparative analysis with Ukrainian
legislation.
Page 4 of 16
2012
ANNUAL REPORT
United Nations Development Programme in Ukraine
TRANSFORMING THE MARKET FOR EFFICIENT LIGHTING PROJECT



Study and analysis of practical adherence to Ukrainian norms and regulations covering
used fluorescent lamps disposal.
Analysis and identification of problematic aspects relating to adherence to Ukrainian
norms and regulations covering used fluorescent lamps disposal and separate collection
of household wastes.
Recommendations on amendments to be made to such norms and regulations.
Further application of the study’s results will also facilitate in achievement of objectives provided
for by the Component 2.
1.2. STUDY OF NATIONAL AND INTERNATIONAL NORMS, STANDARDS AND LEGISLATION
PROMOTING TRANSFORMATION TOWARDS ENERGY-EFFICIENT LIGHTING TECHNOLOGIES
In order to introduce EE technologies and to significantly improve the existing situation, a largescale study (including the analysis international experience relating to promoting EE lighting
policies and proposals of the best suitable solutions for Ukraine and taking into consideration
the national peculiarities) has been commenced in 2012.
The full scope of works includes:









Analysis of national policy on efficient lighting.
Analysis of Ukrainian legal framework on efficient lighting.
Analysis of international legislation (EU, USA, RUSSIA) on efficient lighting and
comparative analysis thereof with Ukrainian legislation.
Study and analysis of practical adherence to Ukrainian norms and regulations covering
used fluorescent lamps disposal.
Analysis and identification of problematic aspects relating to adherence to Ukrainian
norms and regulations covering used fluorescent lamps disposal and separate collection
of household waste.
Analysis of international phase-out programmes launched in EU, USA, RUSSIA,
practical experience gained, evaluation of efficiency including economic aspects, and
potentials of possible implementation thereof in Ukraine;
Preparation of relevant recommendations on amendments to be made to such norms
and regulations.
Preparation of full list of existing Ukrainian Laws and legal acts covering and/or relating
to energy efficient lighting that required to be amended.
Analysis of possible effects of drafted/amended norms and regulations promoting EE
lighting on Ukrainian legal entities (economic and legal aspects).
These activities are planned to be continued in 2013.
Page 5 of 16
2012
ANNUAL REPORT
United Nations Development Programme in Ukraine
TRANSFORMING THE MARKET FOR EFFICIENT LIGHTING PROJECT
COMPONENT 2: IMPROVEMENT OF QA/QC SYSTEM FOR EE LIGHTING MARKET
2.1. CHALLENGES
Owing to some gaps in the regulatory system, so-called “grey” (poor-quality) lighting products
have free access to the Ukrainian market. Presence of such poor quality and improperly labelled
lighting products considerably impedes further development of the energy-efficient lighting
market and creates a negative image for the whole sector.
To address these issues, the following tasks were defined to be resolved by the Project’s
Component 2:
•
Improvement of environmental, energy-efficiency norms and regulations as well as
quality assurance and quality control system covering the lighting products.
•
Improvement of the Ukraine’s institutional capabilities for auditing and assessing the
quality of imported EE lighting products.
•
Provide support for development and modernization of national lighting industry; render
support to local manufacturers of EE lighting products
•
Shape, in close cooperation with domestic manufacturers, suppliers, recycling
companies and local municipalities, a system for CFL collection, recycling and/or
disposal
In order to clarify current situation in Ukraine and resolve the existing issues, in close
cooperation with National Standards Authority and testing local laboratories, a comprehensive
research of the light sources currently available on Ukrainian market has been conducted.
Based on results of this study: new standards will be developed; recommendations on
improvement of current legislation will be given; state laboratories will be assessed and
thereupon their technical capacities will be clearly specified.
However due to technical complexities of this study and considering the fact that the market is
not currently ready therefor, this study has been postponed for 2013.
However, based on request of relevant ministries, the similar study of light sources intended for
street lighting, applied technologies and quality thereof has been commenced this year and will
be completed in the first quarter of 2013. Based on this study it will be possible to provide
recommendations on optimal application of technologies and light sources for the street lighting.
Page 6 of 16
2012
ANNUAL REPORT
United Nations Development Programme in Ukraine
TRANSFORMING THE MARKET FOR EFFICIENT LIGHTING PROJECT
2.3. ESTABLISHING HAZARDOUS WASTE MANAGEMENT SYSTEM
One of the major impediments to the Project progress is the fact that there is no system
providing for collection and safe disposal of used mercury containing in CFL bulbs thrown away
by customers.
Therefore it is imperative to develop a proper system that can be applicable to Ukraine. In 2012
the Project team took the following steps to address this issue:

Assessment of Ukrainian market in relation to entities engaged in recycling/disposal of
wastes containing mercury.

Dedicated research on currently available CFLs disposal technologies has been
conducted

Affordable compact and mobile equipment intended for CFL collection have been
purchased for testing and demonstration purposes within the framework of relevant pilot
projects.
Above listed activities fall under the legislative initiatives developed within the framework of the
Component 1.
Page 7 of 16
2012
ANNUAL REPORT
United Nations Development Programme in Ukraine
TRANSFORMING THE MARKET FOR EFFICIENT LIGHTING PROJECT
3. COMPONENT 3: DEMONSTRATION EE LIGHTING PILOT PROJECTS IN MUNICIPAL
SECTOR
From the very beginning the TMEL Project has received a large number of proposals to
participate in demonstration pilot projects from different organizations, municipalities and
communities all over Ukraine.
Initially it was the Project Document stipulated that EE lighting demonstration projects
targeting school buildings would be conducted in seven (7) participating municipalities.
Having received various feedbacks from the willing parties participated in the Inception
Workshop in November 2011, stakeholders and similar projects from other countries
TMEL Project team was able to make changes to the initially planned activities making it
more flexible and adapting thereof to the recent technological changes at the early stage.
It was decided to implement demonstration projects for modernization of light system in
the municipal sector in general (not only in school buildings); and, if possible, to increase
the number of participating municipalities. The successful pilot projects candidates shall
comply with the same requirements plus the following new ones:
a) Technically feasible proposal
b) Support offered by applicable municipality and local partners
c) Visibility
d) Social and economic effect
e) Promotion of new EE technologies
d) Co-financing
Under the above-mentioned criteria four small-scale projects in different areas were selected
focusing primarily on new ways of electricity saving and quality improvement of lighting.
3.1. PILOT PROJECT 1: “SADZHAVA VILLAGE MAIN STREET LIGHTING MODERNIZATION PROJECT
WITHIN THE FRAMEWORK OF “SADZHAVSKE NAMYSTO” INTERNATIONAL FOLKLORE AND
ETHNOGRAPHIC FESTIVAL”
The Festival was organized to dedicate 520th anniversary of the first written record relating to
the village. Representatives from different countries attended this Festival and had the
opportunity to see for themselves the advantages of energy efficient lighting.
Page 8 of 16
2012
ANNUAL REPORT
United Nations Development Programme in Ukraine
TRANSFORMING THE MARKET FOR EFFICIENT LIGHTING PROJECT
The scope of the project included:
•
15 state-of-the-art street LED lights have been installed in the village main street leading
thereby to fivefold reduction of lighting costs
•
Ten-fold increase of operation period; capability to withstand low quality power supply
•
It also should be mentioned that the opening has been accompanied by newly
established annual international cultural festival giving thereby additional media
coverage.
The general interest have been shown by many Festival participants as long as they were
pleased with the outcome of the project. Representatives of other regions were ready and
willing to participate in the next pilot project and requested to apply this experience to their
municipalities, even at their cost and expenses.
3.2. PILOT PROJECT 2: “ENERGY EFFICIENT PARK LIGHTING PILOT PROJECT IN BERDYANSK”
The project provides for replacement of existing street lights for up-to-date and efficient CFL
bulbs capable of saving energy and be operable in adverse weather conditions (poor
performance of the CFLs at winter time is widely known).
Page 9 of 16
2012
ANNUAL REPORT
United Nations Development Programme in Ukraine
TRANSFORMING THE MARKET FOR EFFICIENT LIGHTING PROJECT
Within the framework of the Project the first batch of energy efficient lamps has been obtained
and installed in the central park of the city (pedestrian area). The experience gained while
fulfilling this pilot project in Berdyansk positively exemplifies the advantages of retrofit of the
lighting system in the municipal sector (the city park in particular) for the other cities of the
country.
Considering the fact that Berdiansk is widely known Azov Sea regional resort, it implies that
over 700 000 visitors annually will enjoy new energy efficient bright lighting in the parks of the
city.
3.3. PILOT PROJECT 3: “MY CITY IS BRIGHT AND ECONOMICAL” PILOT PROJECT IN LUGANSK
The project has been implemented in close cooperation with SGP, municipal authorities and city
community.
Page 10 of 16
2012
ANNUAL REPORT
United Nations Development Programme in Ukraine
TRANSFORMING THE MARKET FOR EFFICIENT LIGHTING PROJECT
TMEL Project team joined efforts in order to further improve street lighting technologies by
introduction of other modern technologies. In addition to EE lighting TMEL Project team
provided 6 complexes of SMART (intellectual) outdoor management system for the municipal
GorSvet organization. These SMART complexes represent new ways to achieve considerable
savings within a short recoupment period while improving quality of outdoor lighting.
3.4. PILOT PROJECT 4: LED LIGHTING IN THE COMMUNITY HOUSING SECTOR (STAIRCASES IN THE
APARTMENT HOUSES) IN DOBROTVІR OF LVIV REGION
The main idea of the project is to replace incandescent light bulbs in municipal residential
apartment buildings (at entrance lobbies, staircases) with LED Lighting Sources:
Advantages:
 4 watt instead of 40-100 watt
 Considerable extension of operation period
 Anti-vandal design
The TMEL team considers this path as a particularly positive and promising as long as it
provides for reliability, major energy savings at moderate costs and attractive for crediting
(bankable solutions).
The TMEL Project team is planning to start a large scale information distribution program based
on experience gained.
Page 11 of 16
2012
ANNUAL REPORT
United Nations Development Programme in Ukraine
TRANSFORMING THE MARKET FOR EFFICIENT LIGHTING PROJECT
4. COMPONENT 4: EE LIGHTING PRODUCTS PENETRATION INTO THE RESIDENTIAL
SECTOR
THIS COMPONENT PROMOTES ENERGY EFFICIENT LIGHTING IN RESIDENTIAL SECTOR AND INCLUDES
PROVIDING CO-FINANCING, CONDUCTING PR CAMPAIGNS AND IMPLEMENTATION OF DEMONSTRATION
PROJECTS.
It implies the following objectives:
•
In cooperation with local and international EE lighting manufactures, consumer banks,
and national retailer networks - develop and implement EE lighting information
distribution program within the residential sector;
•
Introduce EE lighting and Green Light Labelling component into the school curriculum.
•
Develop and implement municipal PR campaigns for EE lighting while implementing
demonstration projects;
•
Adopt globally run CFLs promotional campaigns to Ukrainian consumer market
cooperating closely with lighting product suppliers.
To set out the information distribution program in residential sector, first we needed to set up a
baseline of consumer’s awareness and attitude to EE lighting. We also needed to select the
most suitable technology applicable for residential sector both technically and economically,
whereas the Project Document dates back to 5 years ago and LED technologies have appeared
only a recently.
So, first we have conducted the study that sets up a baseline of consumers’ awareness level
showing that Ukrainian consumers are not aware of EE lighting technologies, their advantages
and economic benefits gaining therefrom.
Page 12 of 16
2012
ANNUAL REPORT
United Nations Development Programme in Ukraine
TRANSFORMING THE MARKET FOR EFFICIENT LIGHTING PROJECT
In order to improve the awareness, subject to provisions of the Component 5, All-Ukrainian
Awareness Campaign is planned to be conducted in 2013.
To select the best technologies for residential sector we have produced a map of lighting
products manufactures and dealers currently present on Ukrainian market, their technologies
and market shares as well as consumer attitude to their products.
Thereafter we have conducted a series of round table discussions with Ukrainian key players on
EE lighting market to learn their opinion on which technology is considered the most suitable.
Component 2 provides for assessment of technological feasibility of each technology present on
Ukrainian market; however, unfortunately, due to some technical issues aforesaid assessment
has been rescheduled for 2013. Nevertheless, the economical feasibility is already in progress
and the results will be obtained in late December - early January.
In addition to the awareness and PR campaigns planned for 2013, we are also planning to
prepare educational materials for students and pupils based on the studies already conducted.
We will also carry out a pilot project in the residential sector and establish cooperation with retail
outlets to develop a plan for replication and dissemination program.
5. COMPONENT 5: THIS COMPONENT PROVIDES FOR REPLICATION AND
DISSEMINATION OF THE PROJECT RESULTS.
IT INCLUDES THE FOLLOWING OBJECTIVES:
•
Develop dedicated website covering the Project’s current activity, works completed,
results achieved and activities planned for the future.
Page 13 of 16
2012
ANNUAL REPORT
United Nations Development Programme in Ukraine
TRANSFORMING THE MARKET FOR EFFICIENT LIGHTING PROJECT
•
In cooperation with the schools participated in the Project, develop educational
booklets/brochures for pupils on energy-efficient lighting.
•
Prepare the second phase of the demonstration project covering at least 20
municipalities across Ukraine.
•
Support organizations and entities focusing on energy efficiency in Ukraine’s public
sector/municipalities by involving them into the relevant Project’s components
developing thereby their capabilities for further successful actions in other regions of
Ukraine and to expand their clientele and supporters.
•
Arrange for and conduct seminars and workshops in the municipalities dedicated to how
Low Carbon Finance and other alternative financial profiles can be instrumental to
financing other EE lighting projects in Ukraine
Page 14 of 16
2012
ANNUAL REPORT
United Nations Development Programme in Ukraine
TRANSFORMING THE MARKET FOR EFFICIENT LIGHTING PROJECT
In 2012 Project website was created and it is planned to turn it into a Portal that will be a
knowledge champion in EE lighting.
All actual accomplishments of the Project (i.e. 4 pilots in Berdyansk, Sadjawa, Lugansk and
Dobromyr as well as round tables with manufactures, etc.) were widely highlighted by various
media outlets including TV, newspapers and internet.
In 2012 we have conducted several round-table discussions with NGOs specializing in EE
technologies to lean their needs and scope of activities. In 2013 we are planning to establish a
small grants program to support them and coordinate their activities.
In 2013 we are also planning, in line with the Component 4, to arrange for printing of
educational materials for pupils and students to be distributed in schools and higher education
institutions to run a large-scale PR Campaign promoting energy efficient lighting.
6. PARTNERSHIP
This Project provides for establishment of formal partnership with NGOs, local/regional
authorities/municipalities by signing MoUs and/or entering into partnership agreements to
formalize the role and commitment of the partners and to provide an official basis to work with
community organizations.
Upon the commencement of the Project we have received over forty (40) official letters from the
various municipalities and NGOs. All letters propose partnership and/or cooperation in
implementing of various energy-efficient lighting projects. Based upon these letters three (3)
Memorandums of Understanding for cooperation in aforesaid area have already been signed.
We have also entered into a partnership with GEF SGP where TMEL project provided expert
assistance.
Page 15 of 16
2012
ANNUAL REPORT
United Nations Development Programme in Ukraine
TRANSFORMING THE MARKET FOR EFFICIENT LIGHTING PROJECT
In 2013 in order to explicitly demonstrate the savings achieved by introduction of energy
efficient lighting, as provided by the Component 4, it is planned to establish the partnership with
relevant municipal authorities under whose economic jurisdiction the completed Pilot Projects
currently are. Aforesaid will be done in order to obtain available data related to the street lighting
of areas covered by aforesaid projects for a specific period prior to and after a particular Pilot
Project implementation. Thereafter such data/indicators will be incorporated into comparative
tables clearly showing the savings achieved.
7. FIELD VISITS
In course of the Project implementation the Project team, with the purpose of exchange of
experience, visited Ukrainian leading LED manufacturer Gasotron Lux (Lummax) based in the
city of Rovno (Rivne), Ukraine; and Russian leading LED manufacturer EnergoSpetsStroy LLC
based in the city of Saratov, Russia.
These visits have been exceptionally instrumental in understanding of further Project course of
implementation, as well as possible pitfalls to be avoided in rendering assistance and support to
local companies willing to start LED manufacture in Ukraine.
8. APPLICATION OF FUNDS
In order to discharge obligations provided for by the Project Document and to carry out the
activities set out herein the Project Team have used $502,000.00US.
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