The need for changes in municipal energy planning of Ukrainian cities
photo: online resource
A brief overview of the European REPowerEU plan
In May 2022, the European Commission presented the REPowerEU plan - its response to the difficulties and disruptions in the global energy market caused by Russia's invasion of Ukraine. The plan was needed for two reasons:
- to end the EU's dependence on Russian fossil fuels, which are used as an economic and political weapon and cost European taxpayers almost €100 billion a year, and
- to overcome the climate crisis.
Six months after the proposal for the REPowerEU plan was put forward, EU negotiators concluded an agreement on its financing, as well as an update of the EU strategy to overcome the energy crisis and phase out Russian fuel from the market. EU governments were asked to quickly add new targets to their economic recovery plans. The REPowerEU plan is not a new climate strategy, and although it includes elements to accelerate the energy transition, its main idea is to phase out fossil fuels (primarily Russian).
The main ideas of the plan:
1) The European Commission approves a plan for the EU's rapid transition to green energy and the rejection of Russian energy resources.
2) REPowerEU requires about €300 billion by 2030 for its implementation.
3) According to this plan, EU countries should increase the share of renewable energy from 32% to 45% and reduce energy consumption by 13%.
4) Reducing imports of Russian fossil fuels could also save Europe almost €100 billion a year.
By 2030, the following goals should be achieved:
- Increasing the energy efficiency target from 9 to 13% as part of the Fit for 55 package;
- increasing the target for the share of renewable energy sources in the EU energy system from 40% to 45% (the goal is 10 million tonnes of domestic production of renewable hydrogen and 10 million tonnes of imports by 2030);
- acceleration of certification procedures for renewable energy sources and related infrastructure;
- mandatory installation of solar panels on the roofs of new commercial and public buildings by 2025, and on the roofs of new residential buildings by 2029 (the goal is to double the capacity of solar photovoltaic energy by 2025 and reach 600 GW by 2030);
- Member States are committed to reducing net greenhouse gas emissions by at least 55% by 2030.
In order to achieve the 13% energy efficiency target, the European Commission recommends that EU member states introduce preferential systems to encourage energy saving. This includes reducing VAT rates on energy-efficient heating systems, building insulation and energy-saving appliances.
Vision of the necessary changes in municipal energy and climate planning for Ukrainian cities
The methodology of municipal energy and climate planning in Ukrainian cities, which has been developed over the past 12 years (MEP, SEAP), is rapidly becoming outdated and practically useless, especially in wartime and post-war conditions. New EU decisions over the past 3 years have highlighted this futility for the period of post-war recovery of our country.
The current plans for modernisation of buildings, transport and energy in cities under the MEP and SEAP (2015-2020) lead our cities to stagnation in development and programmed backwardness for many decades to come. We need to carry out synchronised planning with the European Union and comply with its plans and goals.
I would like to highlight the following key changes in the energy and climate planning of EU countries and cities that are not present in Ukraine:
- transition to the construction of ONLY zero-energy buildings and a ban on new construction of buildings that do not meet these standards;
- BAN on the use of gas boilers in new construction and a gradual transition to renewable heating, cooling and hot water supply in cities and buildings;
- MANDATORY use of rooftop solar power plants for new buildings of all types.
The rapid transformation of the previously existing development plans of EU countries and cities in accordance with the new EU plan - REPowerEU - forces us to take a fresh look at the goals and objectives of municipal energy and climate planning in Ukraine. We need to recognise the need for direct and synchronised compliance with the European Commission's decisions for Ukrainian cities when developing their post-war recovery plans.
Today, municipal energy planning in Ukraine lags far behind the new EU plans, especially in the energy and buildings sectors. It is important to make the necessary changes now, so that the post-war recovery planning for Ukrainian cities does not differ from the new EU canons.
Source: https://ec.europa.eu/commission/presscorner/detail/ua/IP_22_3131
Renewable heating and cooling (RHC) in the EU
The decarbonisation of the heating and cooling sector in the climate and energy sector is an important milestone in achieving the European Union's ambitious goals. In fact, heating and cooling accounts for around half of Europe's total energy demand and is by far the largest energy-consuming sector.
The latest data show that the annual consumption of heat in Europe is around 5,600 TWh, compared to 2,700 TWh for electricity and 4,000 TWh for the transport sector (EUROSTAT, 2017). However, in 2017, only 19.5 per cent of heat in Europe was produced from renewable sources, and there are significant differences between EU Member States (EUROSTAT).
In the Communication "EU Strategy for Heating and Cooling" (COM (2016) 51 final) published in February 2016, the Commission highlighted the role of the heating and cooling sector in the decarbonisation process. This new aspect has led to a 1.3% average annual increase in renewable energy in the heating and cooling sector, as foreseen in the updated 2018 Renewable Energy Directive (Directive 2018/2001). About 40% of the 32% share of renewable energy in total energy consumption set in the directive is projected to come from the heating and cooling sector.
The evolution of climate-related policies is thus giving renewed impetus to renewable heating and cooling (RHC) technologies. To effectively decarbonise the heating and cooling sector, it is necessary to act quickly, as the window of opportunity is quite narrow. In fact, the sector's technologies (both conventional and renewable energy sources) are designed for a relatively long service life, on average 25-30 years, so decisions made by 2030 will affect the sector's development prospects until 2050.
At the same time, due to the high level of decentralisation of heating and cooling solutions, low awareness of alternatives to fossil fuel technologies, lack of significant economies of scale and a wide variety of renewable heating and cooling technologies, stimulating energy transformation is a challenge.
The EU renewable heating and cooling sector - moving to a new level of efficiency for society
Heating and cooling in residential and industrial buildings account for more than half of the EU's energy demand. Heating dominates cooling in terms of energy demand, but the demand for cooling is growing steadily and is expected to become even more important in the future. The use of renewable sources as well as excess heat and cold for heating and cooling is a key element on the road to a fossil-free society.
Direct use of these resources brings significant benefits to society and the energy system:
- Efficiency: A significant portion of energy consumption can be saved by promoting more efficient use of primary energy and by facilitating the introduction of RHC technologies. According to exergy analysis, the levels of energy supply quality and energy demand must be matched so that energy losses are kept to a minimum. Current heating and cooling systems are characterised by low levels of exergy, which can be compared to energy losses and the low cost of heat from renewable sources, ambient heat and waste heat (e.g. for low-temperature heating in residential and commercial buildings). Improving the energy efficiency of systems leads to more efficient use of energy and allows energy sources such as electricity to be freed up for other purposes.
- Decarbonisation: RHC technologies play an important role in the development of a carbon-neutral building and industrial stock in Europe, thus making a fundamental contribution to the EU's climate goals. Technologies already on the market, including heat pumps and district heating and cooling systems, have enormous potential to support a carbon-free economy. These sources make a significant contribution to the overall renewable energy portfolio and thus overcome the limitations of renewable energy sources such as wind and photovoltaics in favour of, for example, mobility and applications in cities and industry.
- Flexibility: Cost-effective thermal energy storage solutions and thermal inertia in buildings can compensate for temporary mismatches between heating/cooling demand and the availability of heating/cooling sources. They provide a high degree of flexibility in heating and cooling systems, allowing demand to be met at different scales (up to the level of cities or industrial processes) and in different time periods (hourly or seasonally). Furthermore, the benefits of thermal energy storage extend beyond the heating and cooling sector to the entire power sector; thermal energy storage helps to provide flexibility and balance the grid when there are high levels of generation variability in renewable energy systems.
- Reliability and safety: RHC solutions are largely based on high technology, which ensures reliable heating and cooling at low maintenance and operating costs. In addition, they are based on publicly available resources and can be optimised for almost any climate in Europe. Thus, RHC technologies not only allow for the extraction of local resources, but also free EU member states from importing fossil fuels in strategically important sectors.
- Extra value: Many renewable heating and cooling technologies are affordable for a single country or many, and their massive integration leads to increased socio-economic value through the demand for new jobs needed for development, production, deployment and maintenance.
Source: https://www.euroheat.org/wp-content/uploads/2019/10/RHC-VISION-2050-WEB.pdf
Recommendations for the development of the first municipal plan REPower UA - REPower Slavutych
The need for a rapid energy transition is underlined by the threat of a complete halt in natural gas transmission through Ukraine at the end of 2024 (due to the expiration of the existing contract). The second threat to Ukrainian cities is the expected shortage of heat and electricity and a sharp rise in their cost for the population. The possibility of state budget support for low tariffs in the medium and long term is extremely low and cannot be the basis for municipal planning.
The simplest solution to the new problems would be to develop a municipal energy plan in 2 stages. Let's take the case of Slavutych as an example. At the first stage, it is recommended to develop a quick plan according to the simplified REPowerEU methodology for residential and public buildings in the city, and to switch the energy supply of buildings to renewable heat and electricity sources. At the second stage, the city is encouraged to continue and finalise the development of a municipal energy plan for industry and transport.
As a pilot project for Ukrainian cities, it is suggested to develop (for the period up to 2030) a REPower Slavutych plan that meets the following goals:
1) Decarbonisation of the city's energy supply systems (electricity, heating, hot water and cooling), including residential and public buildings.
2) Abandoning the use of natural gas in the city's electricity and heat supply systems, switching to renewable heating and cooling of buildings. Natural gas will remain a backup fuel for Slavutych's electricity and heat supply systems.
3) Transition to the use of biofuel boilers and heat pumps in centralised and autonomous heating, cooling and hot water supply systems for residential and public buildings.
4) Use of a biofuel boiler house and CHP plant, ground-based solar power plant, and rooftop solar power plants for basic electricity and heat supply to Slavutych buildings. The power system remains a backup and peak source of electricity for the city.
5) Ensuring energy security of Slavutych in case of failure of the centralised gas and electricity supply systems. One of the main elements of the REPower Slavutych plan is to ensure the energy security of the city in case of failure of the centralised gas and electricity supply systems. It is proposed to adopt a hybrid energy supply system for Slavutych, which includes centralised, decentralised and autonomous sources of heat and electricity. The basic energy supply of residential and budgetary buildings in the city should be provided by renewable sources, while backup and peak sources of electricity and heat may use natural gas in limited volumes for a limited time.
The following elements of Slavutych's energy security can be identified:
1) For public sector buildings (primarily hospitals), the transition to heat pumps in combination with rooftop solar power plants provides maximum security guarantees.
2) For cottages and low-rise buildings, heat pumps in combination with rooftop solar power plants provide maximum safety guarantees.
3) For multi-storey buildings, the maximum safety guarantees are created by using heat pumps in combination with solar power plants. Biofuel CHP, solar power plants and biofuel boilers also provide safety guarantees, but to a lesser extent.
4) The most vulnerable are centralised electricity, heat and gas supply systems. Therefore, the transition of cities and buildings to autonomous and decentralised sources of heat and electricity from renewable sources is a top priority for Ukraine in terms of their energy and climate efficiency and security.
The second key element of REPower Slavutych should be the gradual elimination of energy poverty. In the period up to 2030, tariffs for system electricity and natural gas are expected to rise sharply in Ukraine. The transition to renewable sources (biofuels and solar) during this period will reduce the burden on the city budget and household budgets, and after the return of investments, stop the growth of tariffs forever.
Vasyl Stepanenko, Director of ESCO ECOSYS, August 2023