This document summarizes renewable energy projects supported by UNDP in Europe and Central Asia. It discusses two strategies: supporting market transformation through policies to promote commercial renewable investments, and providing access to affordable energy through small-scale demonstration projects. Key lessons are that supportive policies are critical to promote renewable technologies, which are often available domestically. While financing is important, policies and investment climate are more so. Access to reliable energy is an emerging development issue, and demonstration projects show the potential for scaling up through dedicated policies, financing, and capacity building.

1. Renewable Energy in Europe and CIS: Results and Lessons Learnt from UNDP portfolio Presented by Marina OlshanskayaRegional Technical Advisor, Climate Change Astana, Kazakhstan May 2011 © 2011 UNDP. All Rights Reserved Worldwide. Not For Distribution Without Prior Written Permission.

3. Overview of UNDP portfolio

4. Project Examples

7. CIS:

8. Reliability of energy supply is an emerging development issue: e.g. in Tajikistan rural (73%) population consumes 8.6% of total electricity with no/limited power supply in November - March

9. Provision of social services (schooling and health-care) is affected

10. Land degradation due to unsustainable cutting of fuel-wood Dysfunctional water supply and sanitation systems Poor insulation resulting in high heat losses Up to 6-8 hrs/day spent to collect fuel wood by women/kids Deforestation (up to 90% forest loss) and soil erosion Inefficient cooking stoves - indoor pollution and health risk

11. UNDP’s work in Renewable Energy in Eastern Europe and CIS Small hydro: Montenegro, Georgia, Kyrgyzstan, Tajikistan Wind power: Kazakhstan Solar Water Heating: Albania, Armenia, Uzbekistan Biomass: Slovakia, Belarus, Poland, Slovenia, Latvia Biogas: Georgia, Kyrgyzstan Landfill Gas: Ukraine Solar PV: Uzbekistan, Georgia 4

13. Funding source: GEF

14. Key technologies:

15. Biomass,

16. Wind

18. Funding sources: UNDP’s own, bilateral donors, GEF Small Grant Program

20. The Plan is supported by committed funding of over USD 80 million from the state budget and innovation fundsVileyka biomass cogeneration plant Chips unload at fuel storehouse Installation of superheated steam boiler 15 MW Source: UNDP/GEF project in Belarus

24. Rehabilitation of the Ritseula small hydro power plant in the mountainous region of Racha, in western GeorgiaGeorgia has 26,000 rivers and a potential for 15,000 megawatts of hydroelectricity Source: UNDP/GEF Project in Georgia

26. Methodology for calculating costs for power from SHP

27. Contracting modalities for buying back electricity from SHPTwo small hydro power units (2 x 500 kW) Energy efficient retrofit of hospital, school and kindergarten PV system on the roof of hospital

29. attractive price (fixed feed-in tariff)

30. equitable access to energy grid for IPPs

31. clear governmental mandate

32. Technologies are available:

33. domestic supply chain for design, installation and maintenance

34. Resources availability can be tricky:

35. in general – plentiful (hydro, solar, wind, biomass)

36. but each case requires careful assessment

37. Financing is secondary to RE policies and investment climate:

38. private sector is keen to finance RE projects, but need to be able to manage risks (technology, resources, policies)

40. Vicious circle: poverty – lack of access to energy – pure social services – absence of productive opportunities – more poverty

41. Number of demo-projects proved successful => the way forward is to SCALE UP

42. Scaling up requires:

43. Dedicated policies

44. Dedicated financing from the government