Norsk Energi is managing energy efficiency modernization of 85 buildings in Ukraine

Friday, 02 September 2016.

Norsk Energi signed in June a contract with NEFCO on construction management for energy efficiency upgrade of 85 municipal buildings in two municipalities in Ukraine. The contract is at 536,000 Euros (about 4.9 million NOK) and it lasts for three years.

Norsk Energi’ client is environmental bank NEFCO with office in Helsinki. It has recently granted a loan application from the municipalities of Ivano-Frankivsk and Chernovtsi totaling 13 million EURO (about 120 million NOK). The loan will be used for energy efficiency investments in 85 municipal buildings. We are talking about different types of buildings, such as schools, hospitals, a swimming pool etc. The energy efficiency measures include insulation of pipes for heat distribution, new ventilation systems, energy efficient lighting (LED), new doors and windows and other structural measures, etc.

The feasibility study performed in Ivano-Frankivsk estimates that these energy efficiency investments could reduce heat consumption by as much as 47% and electricity consumption by 13% in the buildings in consideration. The corresponding estimates for the second municipality, Chernivtsi assume a potential to reduce heat consumption by 53% and reduced and electricity consumption by 19% reduction. This will indirectly result in significant reductions in emissions of CO2, SO2, NOx and particulates. Thus, CO2 emissions reduction is estimated at 8,000 tons per year and the financial savings is estimated at 1.2 million EURO per year for the two municipalities together. The emission reductions are an important criterion for environmental bank NEFCO in their review of loan applications.

Norsk Energi shall have construction management over a three-year period. On behalf of Norsk Energi, acts senior consultant Sergei Faschevsky as team leader and head of department Hallstein Brandal as technical expert. The Norwegian company GK also takes part in the project to share its experience with implementation of similar projects in the Norwegian municipalities. The project team is international; it includes two local centres of expertise in Ukraine; consulting firm ITCon and Petroleum and Gas University of Ivano-Frankivsk.

- NEFCO has been an important client for Norsk Energi over the last decade. This is a very challenging project because energy efficiency measures will be implemented in a large number of buildings simultaneously. Neither municipalities nor local entrepreneurs have sufficient experience with such large energy efficiency programs, and therefore careful supervision and guidance from our side are required throughout the project period. It is therefore very satisfying that NEFCO have chosen us as a project manager for this project in competition with four other major international consulting firms, told team leader Sergei Faschevsky.

Sergei Faschevsky and Hallstein Brandal from Norsk Energi took part in project’s kick-off meetings in  Ivano Frankivsk and Chernivtsi 4-7 July 2016. Sergei Faschevsky and Hallstein Brandal from Norsk Energi took part in project’s kick-off meetings in Ivano Frankivsk and Chernivtsi 4-7 July 2016.