Helio International Reports

(2002) Energy and Sustainable Development in Ukraine
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(PDF: 801 Ko / 32 p.)

and Olexi Pasyuk opasyuk@bankwatch.org

Executive Summary

This report was prepared for SEW, the SustainableEnergy Watch of Helio International (www.helio-international.org)to assess Ukrainian energy use in relation to the impact on Global Climate.SEW methodology is used for assessment based on 8 indicators.

The Ukraine became independent in 1991following the break-up of the former USSR. Since then the Ukrainian economyhas experienced a dramatic decline. Slow economic and political reformsso far have not facilitated the economic recovery. Last year, however,the Ukrainian GDP showed growth for the first time in ten years.

Ukraine inherited from the USSR a fairlydeveloped energy sector with wide network of electricity, heat and gasdelivery. On the other hand, the 'command and control' economy of the SovietUnion diminished the role of economic sense, leading to inefficient energyuse. Economie decline led to decline in overall energy demand. Today, theUkraine consumes half of the energy it consumed in 1990. The country'sGDP today is less than half of 1990 level.

The economic crisis created a situationwhere Ukrainian emissions of CO₂ today are lower than the 1990level. However, when the recovery of the economy finally takes place, theUkraine will easily rise above the current target set by the Kyoto Protocol.This will occur, for one reason, because highly energy intensive industriessuch as metallurgy are a core of the current Ukrainian economy.

Even still, the Ukrainian economy consumesmuch more energy than the average in the world. The tendency in the pastwas to increase energy consumption. Ukrainian government has declared energysaving as a major energy strategy. However, this decision has hardly beenimplemented. Energy consumers lack of incentives for effective use of resources.End-use consumers often pay too little or do not pay at all for the energyconsumed.

Renewables are seen as one of the majorways to reduce the country's dependence on energy import. Ukraine heavilydepends on Russia in delivery of all energy products, except coal. However,Ukrainian coal is of bad quality leading to low efficiency and leads tothe fast degradation of the coal-fired power plants. At the same time,Ukraine has tremendous potential for developing wind power generation andsmall hydro. Developing local renewable sources would decrease dependenceon energy imports. Due to the electricity shortage many Ukrainian provincesexperience rolling blackouts. Small local renewable sources will help localauthority gain independence from central electricity grid.

To summarize, most of the positive trendsdescribed in this report are misleading and are caused by the economiccrisis in Ukraine. The only exception is development of electricity grid.Ukraine requires urgent steps to reduce it's energy intensity and developrenewable sources of energy.

Eight Indicators of Energy Sustainabilityfor Ukraine

	Eight Indicators of Energy Sustainabilityfor Ukraine
	1990		1999 (1995)			% of Change
	Metric	Vector	Metric	Vector	Year	Metric	Vector
1. Carbon emissions	3,512 kgC/cap	4.011	1,541 kgC/cap	1.520	1999	-56.12	-62.10
2. Local pollutant(SO₂)	48.7 kg/cap	1.100	15.3 kg/cap	0.349	1999	-68.58	-68.27
3. Households electrification	99%	0.010	99%	0.010	1999	0	0
4. Clean energyinvestment	0	1.000	30 m USD	0.960	1998	-	-0.04
5. Resilience:energy import	5,350.5 PJ	0.600	3,130.8	0.510	1995	-41.49	-0.15
6. Government investment	n.a.	~0.400	1.25 bln USD	0.380	1999	-	-0.05
7. Energy productivity(energy consumption/GDP)	67.97MJ/ USD	6.980	97.95 MJ/ USD	10.120	1995	69.39	31.02
8.Renewable energy	0%	1.100	0.08%	1.099	1999	0.08	-0.001

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Table of Contents

Introduction (PDF: 219 Ko / 5 p.)

Table: Ukraine and the Energy Sector at a Glance
General Discussion of Ukraine
Energy policy
Environmental policy
Map 1. Major Power Stations and Transmission lines in Ukraine

Environmental Sustainability (PDF: 188 Ko / 6 p.)

Indicator 1: Per Capita Energy Sector CO2 Emissions

Figure 1.1. Ukraine's trade by product group
Figure 1.2. GDP energy intensity by international comparison
Table 1.1. Structure of Ukraine's industrial output within the
two groups of sectors
Table 1.2. Two scenarios of structural changes in Ukraine's industry
Figure 1.3. Forecasts of carbon emissions in accordance with BAU
and "clean" scenarios

Indicator 2: Most Significant Energy-related Local Pollutants

Table 2.1. GDP as a key macroeconomic indicator (% change from previous year)
Table 2.2 Dynamics of SO2, NOx, hydrocarbons and VOCs emissions in fuel and power industry in 1997-1998
Table 2.3. Dynamics of SO2, NOx, hydrocarbons and VOCs emissions in fuel and power industry in 1997-1998
Table 2.4. Selected emission taxes/charges of EU Member States and Ukraine (1999)
(PDF: 188 Ko / 6 p.)

Social Sustainability (PDF: 161 Ko / 4 p.)

Indicator 3: Households with Access to Electricity

Indicator 4: Investments in Clean Energy

Table 4.1. Capital investments in Ukraine's fuel and energy sector in 1990
Table 4.2. Target investments in fuel and energy complex
Table 4.3. Ukraine capital stock in power sector in 2000

Economic Sustainability (PDF: 152 Ko / 3 p.)

Indicator 5: Energy Resilience

Table 5.1. Energy import and consumption in Ukraine

Indicator 6: Burden of Energy Investments

Technological Sustainability (PDF: 129 Ko / 4 p.)

Indicator 7: Energy Productivity

Table 7.1. Changes of energy use and economic development of Ukraine in 1990-1995

Indicator 8: Renewable Energy Deployment

Table 8.1. Ukraine's net generation of electricity in 1999
Table 8.2. Installed wind mills (1999)

Star for Ukraine (PDF: 42 Ko / 1 p.)

Conclusions (PDF: 52 Ko / 2 p.)

List of Relevant Literature (PDF: 71 Ko / 1 p.)

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