Ukraine Denmark Energy Centre

a bilateral government cooperation on strategic energy planning

Ukraine – Denmark Energy Center I

The UDEC government cooperation started in 2015 with first phase completed by end of 2017 according to MoU between the Ministry of Foreign Affairs of Denmark and the Ministry of Energy and Coal Industry of Ukraine signed 22 December 2014. The cooperation was defined during 2014 shortly after the Euromaidan revolution. The Ukrainian government changed, relations with Russia froze and similarities with the oil crisis in the Western World concerning the energy supplies became obvious. Against that background Ukraine defined areas of importance where Danish experience could contribute to solutions. Activities/outputs were identified as the energy balance and forecasting, support to preparation of the final draft of the New Energy Strategy for Ukraine until 2035, monitoring of energy efficiency for all sectors, integration of renewables into the electricity grid, application of renewables in the heating sector (on national and on city level), GHG monitoring and reporting to the UNFCCC and modelling of future energy scenarios for the Ukrainian energy system.

According to the Development Engagement Document which is a part of the MoU, the work was organized in six working groups, one for each of the following outputs:

1&5 Output Methodology for long-term forecast modelling of the national energy balance

Support of National Energy Strategy  finalization 

Modeling and support to development of the NES 2035 Roadmap:

  • Adaptation of the STREAM model according to NES 2035 goals
  • Calculations use 2015 as the base year based on the national statistics data and scenarios are calculated till 2035
  • Assessment of achievement the key indicators of the effectiveness of the Energy Strategy of Ukraine till 2035 with TIMES-Ukraine model
  • Strengthen the quality of the national energy balance according IEA for 2014-2016
  • Support to creation of Energy Ombudsman
  • Strategic enviroment impact assesment of NES 2035 that includes a description of the current state of the environment, health of the population, living conditions and expected changes in environment due to implementation of the Action Plan for the NES 2035. It proposes improvements to the NES Action Plan to reduce the environmental and social impacts.

Output 2 Methodology for greenhouse gas inventory and United Nations Framework Convention on Climate Change (UNFCCC) reporting

  • Danish specific solutions to recommendations from the UNFCCC to Ukraine to improve quality of emissions calculations, recommendations for improvement of reporting of the national GHG emission
  • Calculations of greenhouse gas emissions from coal combustion in thermal power plants for 1990-2015, including improvement of the calculation of the GHG emission
  • Verification of motor fuels consumption volumes by transport sector within the context of annual preparation Ukraine’s GHG Inventory that includes analysis of the energy statistics in transport sector of Ukraine and development of approaches to reconstruct missing data for energy efficiency coefficients; verification of data regarding motor fuels consumption in transport sector categories of Ukraine’s GHG Inventory, 1990-2015; calculation of energy efficiency indicators for passenger and freight vehicle transport in the country, as well as development of recommendations for the SSSU on improvement of the National GHG Inventory and energy efficiency estimates for transport sector.
  • Development of an open electronic data base of energy statistics of Ukraine and GHG emission calculations for the years 1990-2015, analysis of the energy balances of Ukraine issued by SSSU and the IEA for use in the national GHG inventory and development of recommendations for energy statistic improvements in Ukraine

Output 3 Monitoring system for energy efficiency at industrial sub-sector level

Energy Efficiency indicators

SAEE with support of UDEC developed methodology for monitoring of energy efficiency indicators for industry, households, transport, agriculture and service sector. Energy efficiency indicators can thus be calculated for all sectors.

Activities on stimulation of energy efficiency investments in industry:

  • Development of a concept for energy and CO2 emission tax and financially supporting energy efficiency for industry
  • Development of Voluntary agreement scheme for manufacturing industry in Ukraine(possibility to obtain tax reduction and subsidy for industry)

Output 4 Power sector – integration of renewable

  • Development of short term forecasting of power generation from wind turbines, experience from DTU on development of meteorological system “Predictor model”
  • Tools for balancing RE generation in regional grids

6 Output Analysis of options for increased use of biomass, biogas and municipal waste for heat generation

  • Dissmination of experience on gas replacement to alternative fuels and development of renewable energy
  • Developing the strategic energy plans for 4 cities (Drohobych, Stebnyk, Boryslav, and Sambir)of Lviv region based on Danish model District Heating Assessment Tool
  • Activities on improvement of the investment attraction conditions into renewable energy and energy efficiency sectors within UAMAP platform, development of consolidated recommendations for investors in terms of implementation of projects on heat and electricity production from biomass in Ukraine
  • The Analysis of Options for increased use of Renewable Energy in Heating Sector in Ukraine
  • Development of a financial model on construction of new biomass fired CHP
  • Creation of a biomass market for supply of fuels for new CHP plants and a general high increase of biomass for energy
  • Waste incineration for production of district heating