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EUROPEAN INTEGRATION
EU-UKRAINE ENERGY COOPERATION
SECOND JOINT EU-UKRAINE REPORT
Implementation of the EU-Ukraine Memorandum of Understanding on Energy
Cooperation during 2007
CONTEXT
The Memorandum of Understanding (MoU) on co-operation in the field of energy
between the EU and Ukraine was signed on 1 December 2005 within the context of
implementation of the EU-Ukraine Action Plan. It sets out how the two sides plan to
organise their work to bring their energy markets closer together.
The MoU establishes a joint strategy towards the progressive integration of the
Ukrainian energy market with that of the EU and consists of road maps covering (1)
nuclear safety; (2) the integration of electricity and gas markets; (3) security of
energy supplies and the transit of hydrocarbons; (4) the coal sector. Since the MoU
was signed, a fifth roadmap has been developed for increasing co-operation in
energy efficiency and the promotion of renewable energies.
A first report on the progress achieved during 2006 was presented to the EU-Ukraine
Summit held in Helsinki on 27 October 2006. This second report highlights the
progress which has been achieved since then.
KEY PROGRESS DURING 2007
1.Working Group on Nuclear Safety
Agreement has been reached on the Terms of Reference for the joint European
Commission-International Atomic Energy Agency-Ukraine evaluation of the nuclear
safety of the Ukrainian Nuclear Power Plants (NPP) with a view to supporting the
implementation of the nuclear safety provisions of the Memorandum of Understanding.
. The Work Programme for the project covers the four main areas relevant to nuclear
safety, namely: design safety, operational safety, radioactive waste/decommissioning
and regulatory issues:
- The detailed Technical Guidelines for the design safety review (task 1) have been
agreed amongst the parties concerned and are annexed to the Terms of Reference
of the joint project.
- The operational safety task will be performed following the format, procedures and
guidelines of the IAEA OSART (International Atomic Energy Agency’s Operational
Safety Review Team) missions.
- For the radioactive waste/decommissioning task, the agreed Terms of Reference
indicate that the specific technical guidelines, which will include the questionnaires,
will be prepared by the IAEA and agreed by all parties involved in the kick-off meeting.
- For the regulatory issues task, the Terms of Reference indicate that the review will
be conducted by a team of international peers (senior regulators) and that the final
detailed scope of the work, including all procedural and organisational details, will be
fixed and agreed in the joint project kick-off meeting.
The Joint Project will be mainly supported by the Instrument for Nuclear Safety
Cooperation. The matter is currently under consideration within the Commission and
the project is expected to start in the third quarter of 2007.
After the project kick-off meeting, the Ukrainian side will resume the self assessments
according to the Technical Guidelines, at selected pilot Nuclear Power Plants, in order
to check whether an eventual revision of the Technical Guidelines will be required
prior to the evaluation of the remaining units.
2. Working Group on the Integration of Electricity and Gas Markets
At the second meeting of the implementing group on 23 March 2007, progress on the
legal approximation in the electricity and gas sectors was reviewed, along with the
implementation of the UCTE project on the integration of Ukraine into the UCTE and
the reform of electricity and gas tariffs.
Over the past year considerable progress has been made in Ukraine in moving
consumer prices towards cost recovery levels, although further progress is required
to ensure a full recovery of costs and to allow the further necessary investments,
bearing in mind the social impact of these measures.
With respect to the objective of reinforcing the independence of the National Energy
Regulatory Committee (NERC), the Ukrainian authorities have prepared a draft law
that has the objective of completely separating the regulator from the electricity and
gas industries, and ensuring that the NERC is funded through a special fund under
the state budget. The law is under examination in the Parliament and, once adopted,
the Ukrainian side will provide a copy to the Commission for a detailed examination of
its conformity with the relevant EU acquis.
In this context, a capacity-building Twinning project is underway to assist with
strengthening the regulatory and legal capacity of the NERC with respect to the
electricity sector. The project will, in particular, concentrate on strengthening the
NERC’s capacity in policy design and implementation in incentive regulation, quality of
supply standards, unbundling of distribution and supply, transmission pricing and
general support to the harmonisation of energy legislation with the EU energy acquis.
A similar project for NERC to cover the gas sector is under preparation and is
expected to start before the end of the year.
With respect to the joint application of Ukraine and Moldova to join UCTE (Union for
the Co-ordination of Transmission of Electricity), a joint working group has been
established whichhas held regular meetings, with the last meeting on 26th June 2007
in Bucharest. On this occasion, the draft “Terms of Reference of the project for the
interconnection of Ukraine and Moldova with the electrical system of the UCTE was
presented and it is intended that this will be submitted for the consideration and
approval by the UCTE’s Steering Committee in September 2007. It is important to
ensure co-ordination between this work and the ongoing TACIS study to support the
progressive participation of Ukraine in the electricity Trans-European Networks
(TENs), as well as to ensure its relation with the wider study on the feasibility of a
possible synchronous interconnection of the UCTE and IPS/UPS systems.
Following the application of Ukraine to join the Energy Community Treaty, the
Commission presented a summary report on the status of the Ukrainian energy sector
and the feasibility of extending the Energy Community to Ukraine at the Ministerial
Meeting of the Energy Community on 29th June 2007. The Ministerial Council
requested the Commission to continue to coordinate Ukraine's eventual accession to
the Energy Community Treaty.
3. Working Group on the Security of Energy Supplies and the Transit of
Hydrocarbons
A list of priority projects in the electricity, gas and oil sectors for 2007 was prepared
and agreed by the two sides during 2006. Significant funding by the International
Financial Institutions has been secured to implement these projects and there is an
objective to have the financing for all these projects agreed by the end of 2007.
These projects include the initial batch of gas and oil metering stations on the borders
of Ukraine.
A preliminary audit of the Ukrainian gas transit network has been completed in the
framework of the EU’s technical assistance, which has identified the need for
substantial investments that have been estimated at around €2,500 million over the
period 2007-2013. Work is now underway to define a list of the necessary
investments to be considered for support at a pledging conference involving the
International Financial Institutions such as the EIB, EBRD and the World Bank, private
sector financial bodies, Ukraine and the national financial agencies of the EU Member
States and non-EU countries that could take place in late 2007 or early 2008. In line
with the MoU, the Parties have also agreed to organise a joint monitoring of the
progress of work on the rehabilitation of the Ukrainian oil and gas transit system.
Following the technical assistance provided by the EU to analyse the various options
for Ukraine’s eventual compliance with the Community acquis on oil stocks, a draft law
has been prepared and should be adopted by the end of 2007. Once adopted, the
Ukrainian side will provide a copy to the Commission for a detailed examination of its
conformity with the relevant EU acquis.
A capacity-building Twinning project is also now under preparation to assist
Ukratransnafta, the body designated to be in charge of the process to develop an oil
stocks mechanism. It is foreseen that Ukraine will establish an oil stock-holding
agency as a second step. In addition, further to a request from Ukratransnafta, the
Commission is providing technical expertise to address the managerial and financial
restructuring options for the company.
Following the support from the EU-funded technical assistance project which has
demonstrated the commercial viability of the extension of the Odessa-Brody pipeline
to Plock in central Poland, the Parties recognise the importance of moving ahead with
this important infrastructure project. A step forward was taken recently to enlarge the
Ukraine-Polish joint venture to include Azerbaijan, Georgia, Kazakhstan and Lithuania.
Following the inauguration of the Boyarka Gas Metrology Centre in December 2006,
the final work is underway to make the centre fully operational. Discussions are also
now ongoing to give the Centre a regional dimension and further work is expected to
begin before the end of the year to extend the scope of the Centre’s work to cover
crude oil and oil products, as well as to offer training facilities.
Upon a request from the Ministry of Fuel and Energy of Ukraine, a team of three
European experts has been recruited to provide technical assistance and advice on
issues related to hydrocarbons as well as on any other energy issue as appropriate.
Further to a request from the Security Council of Ukraine, the Commission is currently
developing a technical assistance project to cooperate in the area of statistical and
forecasting methodologies and models for energy balances.
4. Working Group on the Coal Sector
The coal sector policy support project is being finalised following a second meeting of
the implementation group on 23 March 2007 and is foreseen to start in the end of
2007. The project will have three objectives, namely:
- To further develop and maintain a programme for the coal industry for the period
2007-2016, paying due respect to the role of the coal industry in Ukraine’s security of
energy supply strategy, the ongoing economic reforms and the government’s social
obligations;
- To provide the various stakeholders with the capabilities and means to implement
the coal sector reform programme;
- To improve coal mining safety.
The project has been divided into five components, namely:
- Institutional strengthening of the Ukrainian Coal Mining Industry;
- Elaboration of Master Plan for the development of the Ukrainian Coal Industry;
- Setting up a social development fund;
-Improving occupational safety;
- Development of the catalogue of contaminated Sites.
In addition, the importance of addressing the issue of the capture and use of methane
from the coal mines has been recognised by both Parties as a key area of
importance, both from an environmental and safety perspective. With the objective of
attracting external investments to address this issue, further technical assistance is
under preparation to address co-operation in this area. The possibility of cooperation
in clean coal technologies should also be further examined, particularly with respect
to thermal power plants.
5. Working Group on Energy Efficiency and Renewable Energies
Upon a proposal from the European Commission in January 2007, the European
Council of March 2007 adopted ambitious targets to improve energy efficiency and
promote renewable energy sources. These targets included a reduction of at least
20% in greenhouse gas emissions by 2020 compared to 1990, an objective of 20%
savings in energy compared to the projections for 2020, a binding target of a 20%
share of renewable energies in the overall EU energy consumption by 2020 and a
binding minimum target for all EU Member States of 10% of biofuels in overall EU
transport oil consumption, subject to second generation biofuels becoming
commercially available.
In this context, recognising the very significant opportunities for energy savings in
Ukraine and to fulfil the objective in the Memorandum of Understanding, subsequent
to a second meeting of the implementation group in February 2007, a roadmap on
energy efficiency, renewable energies and measures to tackle climate change, with
an initial focus on developing initiatives towards improving the energy efficiency of
buildings and on ensuring a continual exchange of information on energy efficiency
and renewable energy projects has been developed. The roadmap is attached to this
document for information.
In this context, TAIEX (Technical Assistance Information Exchange Instrument)
workshops for officials from Ukraine took place on 9th July 2007 on “financing
instruments available for promoting energy efficiency and renewable energy sources
in Ukraine” and on 17th July 2007 on “policy issues and practical details concerning
the raising of building standards for energy efficiency in Ukraine towards those in the
European Union”.
6. Commission support
With respect to the 2007 ENPI (European Neighbourhood and Partnership
Instrument) National Action Programme for Ukraine, the energy component will be
implemented in the form of a sector policy support programme (including sector
budget support) as all the necessary pre-conditions are met in this sector.
This support is linked to progress and the achievement of benchmarks in the
implementation of the energy component of the EU-Ukraine Action Plan, as well as the
MoU on co-operation in the field of energy. Out of a total budget of EUR 142 million
for the 2007 National Action Programme for Ukraine, the assistance linked to the
energy sector will amount to EUR 87 million.
In this context and in accordance with the second paragraph of the first joint EU-
Ukraine report on the implementation of the MoU and the aide memoire signed on
14th September 2006, both sides recognise the importance of investments in oil and
gas infrastructure, in particular the metering of oil and gas flows at Ukraine’s
international borders to improve transparency and in order to upgrade the existing
transit infrastructure.
Signed:
Andris Piebalgs EC Commissioner for Energy
Benita Ferrero-Waldner EC Commissioner for External Relations and European
Neighbourhood Policy
Yuri Boyko Ukrainian Minister of Fuel and Energy
ANNEX
DRAFT (June 2007)
EU-Ukraine Working Group on Energy Efficiency, Renewable Energies and
Measures to Tackle Climate Change
Roadmap
1. The improvement of normative and legal frameworks in the sphere of energy
efficiency, alternative and renewable energy sources and approximation of relevant
Ukrainian legislation with that of the EU acquis
- Review of progress in the implementation of the existing action programmes as well
as the Ukraine Energy Strategy until 2030 in the field of energy efficiency and
alternative and renewable energy sources. Take stock of existing plans in this area.
- The Ukrainian side will provide copies of the existing action programmes as well as
copies of the relevant draft laws that are under preparation, notably the draft laws on
biofuels and energy savings. The EU side will provide comments on these documents
with a view to share experience and best practises and make recommendations for
approximation with the EU acquis.
2. Priority areas of co-operation to promote energy efficiency and the introduction of
energy efficient technologies.
- Review of progress in the implementation of existing plans for improving energy
efficiency in the Ukrainian building sector. Development of new proposals in this area
accompanied by financing plans and timetables for implementation. The Ukrainian
side will provide the EU side with the current Ukrainian regulatory framework in this
area as well as any relevant draft legislation by […].The parties will jointly organise a
workshop for Ukrainian officials on the EU experience of implementing building
standards and improving energy efficiency in the EU building sector by July 2007. The
Ukrainian side will initiate and complete an inventory of energy efficiency in the
Ukrainian building sector by the end of 2008.
- Elaboration of methodology for the improvement of the domestic metering system.
The Ukrainian side will provide the EU side with the current regulatory framework,
administrative practises and state of play in this area by […]. The EU side will review
the situation and make suggestions for improvements by […]
- Creation of an information system covering energy production and consumption and
a single energy audit system. The Ukrainian side will provide the EU side with the
current regulatory framework and the administrative practises in this area by […] and
the EU side will review the current system and make recommendations for
improvements by […].
- Support and promote the establishment and development of energy services
companies (ESCO).
- Development of a twinning project – currently under identification – for the national
Agency of Ukraine on Ensuring Efficient Energy Resources Management (NAER) on
the optimization of administrative structures and procedures in the domain of energy
efficiency (precise scope to be confirmed). With the assistance provided through a
FWC to be managed by the Delegation, NAER will draft an application for the 1st
semester of 2008 which will then be reviewed by the EU side and submitted to the
relevant institutions.
3. Priorities to promote and facilitate the commercial production and use of renewable
and alternative energy sources in Ukraine
- Development of proposals for switching heat supply systems of public buildings
(schools, hospitals and other institutions) to use local fuels, including synthesis-gas.
Take stock of existing programmes for the improvement of heat supply systems for
housing and communal services. The Ukrainian side will provide the EU side with
information on ongoing projects in this area by […].
- Development of a database of projects for the promotion of alternative energy
sources, in particular biomass, accompanied by financing plans, estimated production
costs, and timetables for implementation. This shall also include a programme for the
rehabilitation and use of small local hydro power plants and a review of potential
projects for wind energy in Ukraine. The EU side will consider supporting and
participating in a workshop in Ukraine, whose aim shall be to help Ukrainian decision-
makers develop a full understanding of the potential contribution that various
renewable energy sources can make to Ukraine’s energy balance, and of what would
need to be done on the policy side to make effective progress in this regard.
- Review of progress in developing alternative fuels in the transportation sector,
including biofuels. Cooperate on regulatory standardisation in this field. The Ukrainian
side will provide the EU side with relevant legislative measures and applicable
standards in this field by […].The EU side will share information on the development
of sustainability requirements.
4. Cooperation with International Financial Institutions and other donors in the field of
energy efficiency and Renewable energy sources.
- Ensure a continued exchange of information on energy efficiency and renewable
energy projects, including those implemented with the help of financing from
International Financial Institutions and other donors.
-Organisation of a workshop on the financing of energy efficiency and renewable
energy sources projects at country, regional and local level by July 2007 with a view
to help Ukraine to take advantage of available funding for the preparation of lending
operations in the energy efficiency and renewable energy sources fields in Ukraine.
SECOND JOINT EU-UKRAINE REPORT
Implementation of the EU-Ukraine Memorandum of Understanding on Energy
Cooperation during 2007
CONTEXT
The Memorandum of Understanding (MoU) on co-operation in the field of energy
between the EU and Ukraine was signed on 1 December 2005 within the context of
implementation of the EU-Ukraine Action Plan. It sets out how the two sides plan to
organise their work to bring their energy markets closer together.
The MoU establishes a joint strategy towards the progressive integration of the
Ukrainian energy market with that of the EU and consists of road maps covering (1)
nuclear safety; (2) the integration of electricity and gas markets; (3) security of
energy supplies and the transit of hydrocarbons; (4) the coal sector. Since the MoU
was signed, a fifth roadmap has been developed for increasing co-operation in
energy efficiency and the promotion of renewable energies.
A first report on the progress achieved during 2006 was presented to the EU-Ukraine
Summit held in Helsinki on 27 October 2006. This second report highlights the
progress which has been achieved since then.
KEY PROGRESS DURING 2007
1.Working Group on Nuclear Safety
Agreement has been reached on the Terms of Reference for the joint European
Commission-International Atomic Energy Agency-Ukraine evaluation of the nuclear
safety of the Ukrainian Nuclear Power Plants (NPP) with a view to supporting the
implementation of the nuclear safety provisions of the Memorandum of Understanding.
. The Work Programme for the project covers the four main areas relevant to nuclear
safety, namely: design safety, operational safety, radioactive waste/decommissioning
and regulatory issues:
- The detailed Technical Guidelines for the design safety review (task 1) have been
agreed amongst the parties concerned and are annexed to the Terms of Reference
of the joint project.
- The operational safety task will be performed following the format, procedures and
guidelines of the IAEA OSART (International Atomic Energy Agency’s Operational
Safety Review Team) missions.
- For the radioactive waste/decommissioning task, the agreed Terms of Reference
indicate that the specific technical guidelines, which will include the questionnaires,
will be prepared by the IAEA and agreed by all parties involved in the kick-off meeting.
- For the regulatory issues task, the Terms of Reference indicate that the review will
be conducted by a team of international peers (senior regulators) and that the final
detailed scope of the work, including all procedural and organisational details, will be
fixed and agreed in the joint project kick-off meeting.
The Joint Project will be mainly supported by the Instrument for Nuclear Safety
Cooperation. The matter is currently under consideration within the Commission and
the project is expected to start in the third quarter of 2007.
After the project kick-off meeting, the Ukrainian side will resume the self assessments
according to the Technical Guidelines, at selected pilot Nuclear Power Plants, in order
to check whether an eventual revision of the Technical Guidelines will be required
prior to the evaluation of the remaining units.
2. Working Group on the Integration of Electricity and Gas Markets
At the second meeting of the implementing group on 23 March 2007, progress on the
legal approximation in the electricity and gas sectors was reviewed, along with the
implementation of the UCTE project on the integration of Ukraine into the UCTE and
the reform of electricity and gas tariffs.
Over the past year considerable progress has been made in Ukraine in moving
consumer prices towards cost recovery levels, although further progress is required
to ensure a full recovery of costs and to allow the further necessary investments,
bearing in mind the social impact of these measures.
With respect to the objective of reinforcing the independence of the National Energy
Regulatory Committee (NERC), the Ukrainian authorities have prepared a draft law
that has the objective of completely separating the regulator from the electricity and
gas industries, and ensuring that the NERC is funded through a special fund under
the state budget. The law is under examination in the Parliament and, once adopted,
the Ukrainian side will provide a copy to the Commission for a detailed examination of
its conformity with the relevant EU acquis.
In this context, a capacity-building Twinning project is underway to assist with
strengthening the regulatory and legal capacity of the NERC with respect to the
electricity sector. The project will, in particular, concentrate on strengthening the
NERC’s capacity in policy design and implementation in incentive regulation, quality of
supply standards, unbundling of distribution and supply, transmission pricing and
general support to the harmonisation of energy legislation with the EU energy acquis.
A similar project for NERC to cover the gas sector is under preparation and is
expected to start before the end of the year.
With respect to the joint application of Ukraine and Moldova to join UCTE (Union for
the Co-ordination of Transmission of Electricity), a joint working group has been
established whichhas held regular meetings, with the last meeting on 26th June 2007
in Bucharest. On this occasion, the draft “Terms of Reference of the project for the
interconnection of Ukraine and Moldova with the electrical system of the UCTE was
presented and it is intended that this will be submitted for the consideration and
approval by the UCTE’s Steering Committee in September 2007. It is important to
ensure co-ordination between this work and the ongoing TACIS study to support the
progressive participation of Ukraine in the electricity Trans-European Networks
(TENs), as well as to ensure its relation with the wider study on the feasibility of a
possible synchronous interconnection of the UCTE and IPS/UPS systems.
Following the application of Ukraine to join the Energy Community Treaty, the
Commission presented a summary report on the status of the Ukrainian energy sector
and the feasibility of extending the Energy Community to Ukraine at the Ministerial
Meeting of the Energy Community on 29th June 2007. The Ministerial Council
requested the Commission to continue to coordinate Ukraine's eventual accession to
the Energy Community Treaty.
3. Working Group on the Security of Energy Supplies and the Transit of
Hydrocarbons
A list of priority projects in the electricity, gas and oil sectors for 2007 was prepared
and agreed by the two sides during 2006. Significant funding by the International
Financial Institutions has been secured to implement these projects and there is an
objective to have the financing for all these projects agreed by the end of 2007.
These projects include the initial batch of gas and oil metering stations on the borders
of Ukraine.
A preliminary audit of the Ukrainian gas transit network has been completed in the
framework of the EU’s technical assistance, which has identified the need for
substantial investments that have been estimated at around €2,500 million over the
period 2007-2013. Work is now underway to define a list of the necessary
investments to be considered for support at a pledging conference involving the
International Financial Institutions such as the EIB, EBRD and the World Bank, private
sector financial bodies, Ukraine and the national financial agencies of the EU Member
States and non-EU countries that could take place in late 2007 or early 2008. In line
with the MoU, the Parties have also agreed to organise a joint monitoring of the
progress of work on the rehabilitation of the Ukrainian oil and gas transit system.
Following the technical assistance provided by the EU to analyse the various options
for Ukraine’s eventual compliance with the Community acquis on oil stocks, a draft law
has been prepared and should be adopted by the end of 2007. Once adopted, the
Ukrainian side will provide a copy to the Commission for a detailed examination of its
conformity with the relevant EU acquis.
A capacity-building Twinning project is also now under preparation to assist
Ukratransnafta, the body designated to be in charge of the process to develop an oil
stocks mechanism. It is foreseen that Ukraine will establish an oil stock-holding
agency as a second step. In addition, further to a request from Ukratransnafta, the
Commission is providing technical expertise to address the managerial and financial
restructuring options for the company.
Following the support from the EU-funded technical assistance project which has
demonstrated the commercial viability of the extension of the Odessa-Brody pipeline
to Plock in central Poland, the Parties recognise the importance of moving ahead with
this important infrastructure project. A step forward was taken recently to enlarge the
Ukraine-Polish joint venture to include Azerbaijan, Georgia, Kazakhstan and Lithuania.
Following the inauguration of the Boyarka Gas Metrology Centre in December 2006,
the final work is underway to make the centre fully operational. Discussions are also
now ongoing to give the Centre a regional dimension and further work is expected to
begin before the end of the year to extend the scope of the Centre’s work to cover
crude oil and oil products, as well as to offer training facilities.
Upon a request from the Ministry of Fuel and Energy of Ukraine, a team of three
European experts has been recruited to provide technical assistance and advice on
issues related to hydrocarbons as well as on any other energy issue as appropriate.
Further to a request from the Security Council of Ukraine, the Commission is currently
developing a technical assistance project to cooperate in the area of statistical and
forecasting methodologies and models for energy balances.
4. Working Group on the Coal Sector
The coal sector policy support project is being finalised following a second meeting of
the implementation group on 23 March 2007 and is foreseen to start in the end of
2007. The project will have three objectives, namely:
- To further develop and maintain a programme for the coal industry for the period
2007-2016, paying due respect to the role of the coal industry in Ukraine’s security of
energy supply strategy, the ongoing economic reforms and the government’s social
obligations;
- To provide the various stakeholders with the capabilities and means to implement
the coal sector reform programme;
- To improve coal mining safety.
The project has been divided into five components, namely:
- Institutional strengthening of the Ukrainian Coal Mining Industry;
- Elaboration of Master Plan for the development of the Ukrainian Coal Industry;
- Setting up a social development fund;
-Improving occupational safety;
- Development of the catalogue of contaminated Sites.
In addition, the importance of addressing the issue of the capture and use of methane
from the coal mines has been recognised by both Parties as a key area of
importance, both from an environmental and safety perspective. With the objective of
attracting external investments to address this issue, further technical assistance is
under preparation to address co-operation in this area. The possibility of cooperation
in clean coal technologies should also be further examined, particularly with respect
to thermal power plants.
5. Working Group on Energy Efficiency and Renewable Energies
Upon a proposal from the European Commission in January 2007, the European
Council of March 2007 adopted ambitious targets to improve energy efficiency and
promote renewable energy sources. These targets included a reduction of at least
20% in greenhouse gas emissions by 2020 compared to 1990, an objective of 20%
savings in energy compared to the projections for 2020, a binding target of a 20%
share of renewable energies in the overall EU energy consumption by 2020 and a
binding minimum target for all EU Member States of 10% of biofuels in overall EU
transport oil consumption, subject to second generation biofuels becoming
commercially available.
In this context, recognising the very significant opportunities for energy savings in
Ukraine and to fulfil the objective in the Memorandum of Understanding, subsequent
to a second meeting of the implementation group in February 2007, a roadmap on
energy efficiency, renewable energies and measures to tackle climate change, with
an initial focus on developing initiatives towards improving the energy efficiency of
buildings and on ensuring a continual exchange of information on energy efficiency
and renewable energy projects has been developed. The roadmap is attached to this
document for information.
In this context, TAIEX (Technical Assistance Information Exchange Instrument)
workshops for officials from Ukraine took place on 9th July 2007 on “financing
instruments available for promoting energy efficiency and renewable energy sources
in Ukraine” and on 17th July 2007 on “policy issues and practical details concerning
the raising of building standards for energy efficiency in Ukraine towards those in the
European Union”.
6. Commission support
With respect to the 2007 ENPI (European Neighbourhood and Partnership
Instrument) National Action Programme for Ukraine, the energy component will be
implemented in the form of a sector policy support programme (including sector
budget support) as all the necessary pre-conditions are met in this sector.
This support is linked to progress and the achievement of benchmarks in the
implementation of the energy component of the EU-Ukraine Action Plan, as well as the
MoU on co-operation in the field of energy. Out of a total budget of EUR 142 million
for the 2007 National Action Programme for Ukraine, the assistance linked to the
energy sector will amount to EUR 87 million.
In this context and in accordance with the second paragraph of the first joint EU-
Ukraine report on the implementation of the MoU and the aide memoire signed on
14th September 2006, both sides recognise the importance of investments in oil and
gas infrastructure, in particular the metering of oil and gas flows at Ukraine’s
international borders to improve transparency and in order to upgrade the existing
transit infrastructure.
Signed:
Andris Piebalgs EC Commissioner for Energy
Benita Ferrero-Waldner EC Commissioner for External Relations and European
Neighbourhood Policy
Yuri Boyko Ukrainian Minister of Fuel and Energy
ANNEX
DRAFT (June 2007)
EU-Ukraine Working Group on Energy Efficiency, Renewable Energies and
Measures to Tackle Climate Change
Roadmap
1. The improvement of normative and legal frameworks in the sphere of energy
efficiency, alternative and renewable energy sources and approximation of relevant
Ukrainian legislation with that of the EU acquis
- Review of progress in the implementation of the existing action programmes as well
as the Ukraine Energy Strategy until 2030 in the field of energy efficiency and
alternative and renewable energy sources. Take stock of existing plans in this area.
- The Ukrainian side will provide copies of the existing action programmes as well as
copies of the relevant draft laws that are under preparation, notably the draft laws on
biofuels and energy savings. The EU side will provide comments on these documents
with a view to share experience and best practises and make recommendations for
approximation with the EU acquis.
2. Priority areas of co-operation to promote energy efficiency and the introduction of
energy efficient technologies.
- Review of progress in the implementation of existing plans for improving energy
efficiency in the Ukrainian building sector. Development of new proposals in this area
accompanied by financing plans and timetables for implementation. The Ukrainian
side will provide the EU side with the current Ukrainian regulatory framework in this
area as well as any relevant draft legislation by […].The parties will jointly organise a
workshop for Ukrainian officials on the EU experience of implementing building
standards and improving energy efficiency in the EU building sector by July 2007. The
Ukrainian side will initiate and complete an inventory of energy efficiency in the
Ukrainian building sector by the end of 2008.
- Elaboration of methodology for the improvement of the domestic metering system.
The Ukrainian side will provide the EU side with the current regulatory framework,
administrative practises and state of play in this area by […]. The EU side will review
the situation and make suggestions for improvements by […]
- Creation of an information system covering energy production and consumption and
a single energy audit system. The Ukrainian side will provide the EU side with the
current regulatory framework and the administrative practises in this area by […] and
the EU side will review the current system and make recommendations for
improvements by […].
- Support and promote the establishment and development of energy services
companies (ESCO).
- Development of a twinning project – currently under identification – for the national
Agency of Ukraine on Ensuring Efficient Energy Resources Management (NAER) on
the optimization of administrative structures and procedures in the domain of energy
efficiency (precise scope to be confirmed). With the assistance provided through a
FWC to be managed by the Delegation, NAER will draft an application for the 1st
semester of 2008 which will then be reviewed by the EU side and submitted to the
relevant institutions.
3. Priorities to promote and facilitate the commercial production and use of renewable
and alternative energy sources in Ukraine
- Development of proposals for switching heat supply systems of public buildings
(schools, hospitals and other institutions) to use local fuels, including synthesis-gas.
Take stock of existing programmes for the improvement of heat supply systems for
housing and communal services. The Ukrainian side will provide the EU side with
information on ongoing projects in this area by […].
- Development of a database of projects for the promotion of alternative energy
sources, in particular biomass, accompanied by financing plans, estimated production
costs, and timetables for implementation. This shall also include a programme for the
rehabilitation and use of small local hydro power plants and a review of potential
projects for wind energy in Ukraine. The EU side will consider supporting and
participating in a workshop in Ukraine, whose aim shall be to help Ukrainian decision-
makers develop a full understanding of the potential contribution that various
renewable energy sources can make to Ukraine’s energy balance, and of what would
need to be done on the policy side to make effective progress in this regard.
- Review of progress in developing alternative fuels in the transportation sector,
including biofuels. Cooperate on regulatory standardisation in this field. The Ukrainian
side will provide the EU side with relevant legislative measures and applicable
standards in this field by […].The EU side will share information on the development
of sustainability requirements.
4. Cooperation with International Financial Institutions and other donors in the field of
energy efficiency and Renewable energy sources.
- Ensure a continued exchange of information on energy efficiency and renewable
energy projects, including those implemented with the help of financing from
International Financial Institutions and other donors.
-Organisation of a workshop on the financing of energy efficiency and renewable
energy sources projects at country, regional and local level by July 2007 with a view
to help Ukraine to take advantage of available funding for the preparation of lending
operations in the energy efficiency and renewable energy sources fields in Ukraine.
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