Implementation of UNFCCC in Armenia: ongoing activities in the context of climate change mitigation measures

Implementation of UNFCCC in Armenia:
   ongoing activities in the context of
 climate change mitigation measures
                         Diana Harutyunyan
               Climate Change Programme Coordinator,
                 UNDP/Ministry of Nature Protection

                             Regional workshop
 “Development of Nationally Appropriate Mitigation Actions in South Caucasus
                                 Countries
                              9-10 July, Tbilisi

Armenia as a Party to UNFCCC
1993              Party to the Convention
2002              Party to the Kyoto Protocol
1998, 2010        1st and 2nd National Communication,
                  GHG Inventory for 1990 and 2000, and for series of 1990-2006

COP 6, COP 9, Statement of Head of Delegation, Minister of Nature Protection
COP15, COP18 .. On commitment to further enhance mitigation efforts in case
              of adequate TT and financial assistance provided…

2010              Association with Copenhagen Accords: priority sectors identified
                  without cost and GHG reduction estimates

2012-2014         Preparation of 3rd National Communication, and GHG Inventory
                  for 2010
2012              In cooperation with UNFCCC Secretariat was organised
                  Regional workshop on NAMAs in Yerevan for Asia and Pacifi
                  region

Country context
     Population: 3.2 million
     GDP: 9.37 bln USD
     GDP per capita: 3031 USD/person
     GHG emissions 2006: 6422 Gg

   Structure of primary energy sources                     Structure of final energy consumption
                                                                      in Armenia in 2010
               of Armenia for 2010
                                     Natural gas
                                                            6%      8%                 Population
     54,7%
                                     Nuclear power                       28%
                            24,5%                    16%                               Industry

                                     Hydro power                           16%         Transport
                     8,3%
             12,5%                                            26%                      Energy
                                     Oil products
                                                                                       Agriculture
0.002%                                Wind and                                         Other
                                    biogas

What is done so far
Policy and Measures

2004 – Feed-in-tariff for renewable energy and purchase guarantee
2005 – Law on Energy Saving and Renewable Energy
2007 – EE and RES National Programme
2010 - National Energy Efficiency Action Plan
2011 - Road Map for RES development and SHPP development
        scheme adopted by the Government
2011 - 5 year Action Plan on implementation of the UNFCCC
       commitments, including the development and approval of
       NAMA Programme
2012 - Atmosphere Protection Law amendment, provisions on
        banning of agriculture residues and pasture burning

What is done so far
Institutional strengthening

2005 - R2E2 fund is established and fully operating
2006 – Ministry of Nature Protection is authorized as Designated
       National Authority for CDM
2009 - Ministry of Nature Protection with support of UNDP
       supported Climate Change Center is regularly developing
       and publishing the Armenian Grid Emission Factor
2012 - Inter-agency Coordinating Council of Climate Change,
       Prime Minister Decree N 955A, and establishment of
       working group (the list adopted by the Minister of Nature
       Protection)

What is done so far
Projects
 Modernization of 2 TPPs (one with green ODA credit);
 Reduction of losses in high voltage and distribution grid;
 Development of SHPP with private investments, in 2005-2011, around
  US$85 million was invested in SHPP, which added around 135 MW of new
  SHPP capacity. As of December 31, 2010 the total RE based electricity
  production (without large hydro) in Armenia was about 417 million kWh
  or about 7.6% of total electricity production in the republic which comes
  from about 100 SHPPs with total installed power of 129 MW, one 2.64
  MW wind farm and one 0.8 MW biomass plant.
 Methane leakage reduction project in gas pipeline (CDM project registered
  Feb. 2013) and underground storage (EBRD);

What is done so far (cont.)
Projects

 Transformation of heating systems to gas fired centralized systems in
    public buildings, and individual gas fired appliances in apartment blocks,
    the share of households in multi-apartment buildings with safe gas-based
    heating increased from 13% in 2005 to 71% in 2010;
   Attraction of $16,4 million private investments in cogeneration based
    district heating rehabilitation (UNDP) in Avan district of Yerevan;
   Increase of proportion of natural gas-powered vehicles, approximately 50
    percent of the total vehicle fleet, due to expansion of gas distribution
    network;
   CDM projects: 6 registered, 8 LoAs issued;
   Piloting of alternative energy resources utilization (wind, solar water
    heating, biogas).

What is in the process
Policy and Measures

 Revision of energy sector legislation aimed at facilitation of
  energy efficiency and RES;
 The EE targets and measures must be further defined for the
  period of 2013-2020 under National EE Action Plan;
 The list and implementation deadlines are set (Feb. 2013) for
  harmonization of legislation including ones which can ensure
  low carbon development path according the European
  Neighborhood Partnership Instruments
 Currently only 7 EU/ISO energy efficiency standards are
  transposed and adaptation of Building Code is in process
  /UNDP-GEF project/

What is in the process
Projects
Energy sector
 Financing RES projects (World Bank Group, EBRD, ADB, KfW),
 Technical assistance for introduction of energy efficiency in
  industrial sector (IFC), financial assistance Armenian Commercial
  Banks;
 RES Small scale RES support in rural areas aimed at poverty
  reduction (UNIDO);
 Improving of energy statistics and development of Energy Balance
  of Armenia for 2010 and capacity building for continues actions
  (can serve as base for MRV, USAID);
 March 2012 Armenia was ranked in the list of priority countries
  selected as eligible for CIF programme “Scaling-up Renewable
  Energy Program in Low Income Countries, indicative allocation of
  up to $40 million, to be implemented by R2E2 fund;

What is in the process(cont.)
Projects
Urban sector
 Energy efficiency in urban sector through introduction of new building code,
  certification of construction materials (UNDP), introduction of financial schemes
  for retrofitting public buildings (EBRD);
 Green Urban lighting (UNDP);
Transport
 Road construction for optimization of traffic (national budget, ADB), shifting from
  mini-buses to high capacity public buses (Yerevan Municipality); energy efficiency
  measures in Yerevan metro, shifting from diesel and petrol to compressed natural
  gas
LULUCF
 Improvement of municipal landfill management (ADB, EC, KFW);
 Illegal logging control enhancement and reforestation projects (FREC, Tree
  Project, UNDP, WWF),
 Enhance carbon storage in mountainous grasslands (EC), REDD+ project
  (UNDP-GEF) .

Challenges ahead
Energy sector
 An emerging supply gap: Armenia will need at least 850 MW of new
  generating capacity as old, under-maintained energy infrastructure is
  retired, and demand continues to grow steadily. Energy consumption
  continues to lag far behind 1988 (3.5 GW), the energy use in 2010 was
  on average below 1.2 GW.
 Maintaining energy security: Heavy reliance on imported fuels and
  the old and under-maintained transmission and distribution assets put
  Armenia at risk of supply interruptions.
 Maintaining affordable tariffs. Rising fuel prices and the need for
  new, more expensive generating units make energy less affordable for
  low-income consumers.

Challenges ahead
UNFCCC implementation
 Development and adoption of national GHG emissions limitation
  targets, 2015
 Development of NAMA, before 2015
 Development of NAP, before 2015
 Establish institutional framework for biannual GHG inventory
  development
 National capacity building for MRV
 Investigate ways of promoting GHG mitigation in non-Energy
  sectors
 Ensure conditions for urban low carbon development

NAMA implementation co-benefits for
Armenia
 Ensure energy security;
 Ensure around 1.21 mln. toe energy saving (eq. 4,25% or
  GDP) through EE implementation;
 Improvement of the urban air quality and reduction of
  traffic congestion;
 Reduce costs/mitigate cost increase for utility services for
  the population;
 Contribute to SD, rural poverty reduction, improvement of
  ecosystem services through sustainable forest and land
  management;

NAMA implementation challenges and gaps
 Setting baselines and targets – i) sectoral, or ii) national;
 Evaluation of the GHG emission potential and opportunities in-line with sectoral
 policies;
 Establishing system for monitoring and reporting of GHG emission reductions,
 improvement of national statistics;
 Establishment of coordination scheme for NAMA implementation and monitoring;
 Demand side EE measures implementation in some aspects is not in benefit of
 energy supply monopolies;
 Low awareness on NAMA concept and opportunities both on institutional and
 professional level;
 Limited knowledge of international carbon funding opportunities and
 requirements for effective identification and formulation of attractive projects;
 Limited capacities for formulation and utilization of the international public and
 private financing opportunities;
 Limited information on Fast-start Funding assistance to Armenia

Questions to be discussed under NAMA
    concept and implementation
 How to consider the suppressed demand for energy services
    in the baseline, and how to build BAU scenario to reflect real
    demand for energy services?
   How the impact of policies and long–term measures be
    measured and reported?
   How the cross effects between sectoral policies can be
    assessed and measured?
   Can CDM projects GHG emission reductions be counted in the
    countries commitments or not (double counting)?
   How the concept of the ‘best available technology’ will be
    applied in the sectoral baseline identification (IP issue,
    technology transfer)?
   How to include power exchange in the regional grid in NAMA?

NAMAProject example: District Heating rehabilitation,
                    UNDP-GEF Project 2005,-2012
New legal and regulatory framework for
rehabilitation of DH systems, and tariff
setting for useful heat demand based
small scale cogeneration

USD 16,4 mln direct foreign (private)
investments leveraged into new DH
system (Avan district of Yerevan, 76
buildings, 10.000 residents);

System features combined heat and                 Energy center, 4 MW(E) and 4.36 MW(T)
power facility, reconstructed heat supply
and distribution network and apartment
level metering and regulation, 2 part tariff
for heat energy

400 new contracts siged between
customers and heat supply companies in
the demo/pilot areas based on apartment
level heat meters.
                                                                                             16
                                               Heat meter installed at the entrance to an apartment

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