Additional data needs and facilitation on installation-level data collection

Assessment of data needs and facilitation on installation-level data collection to inform the development of low carbon policy in Ukraine Prepared for The United Nations Development Programme

By

THOMSON REUTERS POINT CARBON London, 10/12/2013

ACKNOWLEDGEMENTS This report has been prepared by Thomson Reuters Point Carbon as part of the work under the project “Capacity Building towards Low Carbon Development in Ukraine�. The report is partly prepared on the basis of, and incorporating material from, the reports of local consultants of UNDP Ukraine: Mr. Vladimir Laskarevsky and Mr. Aleksander Pavlyenko.

Thomson Reuters Point Carbon is grateful to the Ukrainian State Environmental Investment Agency for the strong support provided throughout the Project.

This project is kindly supported by the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety of Germany.

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CONTENTS Acknowledgements ..................................................................................................................................................... ii 1

Introduction ........................................................................................................................................................ 7 1.1

Ukraine’s data needs for the planning and modelling of low carbon policies .................................................. 8

Section 1: Review of existing MRV systems in Ukraine and worldwide ..................................................................... 10 2

Review of existing data collection and reporting procedures in selected countries worldwide ......................... 11 2.1

European Union Emission Trading System (EU ETS) ........................................................................................ 11

2.1.1

3

EU experiences with implementing installation-level MRV systems .......................................................... 13

2.2

Australia - National Greenhouse and Energy Reporting System (NGER) ......................................................... 18

2.3

US GHG Reporting Program ............................................................................................................................. 18

Review of monitoring and reporting in Ukraine ................................................................................................ 21 3.1.1

Sources of information for the development of annual national inventory of GHG emission and

absorption in Ukraine ............................................................................................................................................... 21 3.1.2 3.2

Long-term forecasting of GHG emissions in Ukraine .................................................................................. 23 Existing data sources at the plant level ........................................................................................................... 24

3.2.1

Form #2-tp (air) Report on air protection ................................................................................................... 24

3.2.2

Forms for reporting on the use of fuel and energy ..................................................................................... 24

3.2.3

Form #3-tech-TPP Technical and economic indicators of the performance of TPP equipment ................. 26

3.2.4

Form 6-tp (es) (annual) Report on the operation of the power plant ........................................................ 26

3.2.5

Form #1-tep (annual) Report on the supply of heat ................................................................................... 26

3.2.6

Form 1P-NPP (annual) Report on the production and sale of industrial products ..................................... 26

3.3

Main statistical publications on the use of energy materials .......................................................................... 26

3.4

Data sources for the development of energy balances ................................................................................... 26

4

Access to data and reports for planning and modelling low-carbon development in Ukraine ........................... 27

5

Conclusions ....................................................................................................................................................... 28

Section 2: Review of National System for GHG Monitoring, Reporting and Verification and links to low carbon development policy................................................................................................................................................... 30 6

Review of Draft Law on measures for organizing and implementing MRV of GHG emissions ............................ 31

7

Corresponding changes, improvements, and further actions required for elaboration and planning of low

carbon development policy ....................................................................................................................................... 36 8

Recommendations for identification and selection of activity types, and list of greenhouse gases to be covered

by the MRV system ................................................................................................................................................... 37 8.1

Recommendation for minimum values of yearly GHG emissions of an installation for inclusion to MRV

system in Ukraine .......................................................................................................................................................... 37 8.2

Recommendation for list of GHG and activity types for inclusion of installations into MRV system in Ukraine 37

9

Draft reporting data structure at the installation level ...................................................................................... 45 9.1

Possible monitoring methodologies ................................................................................................................ 45

9.2

Emissions calculation using standard methodology ........................................................................................ 45

9.3

Emissions computation according to mass balance methodology .................................................................. 46

9.4

Measurement-based methodology ................................................................................................................. 47

9.5

Combination of methodologies ....................................................................................................................... 47

9.6

Reporting Data Structure for Installations....................................................................................................... 47

9.6.1

Stationary Combustion of Fuels - standard methodology .......................................................................... 49

9.6.2

Activity- production of iron and steel ......................................................................................................... 49 4

10

9.6.3

Activity type - production of metallurgical coke ......................................................................................... 52

9.6.4

Activity type - ferroalloy production ........................................................................................................... 52

9.6.5

Activity type - cement production .............................................................................................................. 53

9.6.6

Activity type - ammonia production ........................................................................................................... 54

9.6.7

Activity type - lime production .................................................................................................................... 54

9.6.8

Activity Type - Production of Nitric Acid ..................................................................................................... 55

9.6.9

Activity type - production of adipic acid ..................................................................................................... 55

Proposals for the monitoring plan draft template and monitoring report template for installations ................ 56

10.1

Draft contents of monitoring plan ................................................................................................................... 56

10.2

Draft contents of monitoring report ............................................................................................................... 57

11

Proposals for reporting of GHG from sources which are not included in the GHG MRV system ......................... 59

Section 3: MRV and Allocation in an Emissions Trading Scheme ............................................................................... 60 12

Proposals for Pilot Phase of mrV ....................................................................................................................... 61

12.1

Basic requirements for the MRV system ......................................................................................................... 61

12.2

Key Terms and Definitions ............................................................................................................................... 61

12.3

Recommendations for the application of the MRV system in an ETS pilot ..................................................... 62

12.3.1

Scope of activity categories with MRV system, for GHG list and GHG emission limit values ................. 62

12.3.2

Time schedule for MRV implementation in Ukraine .............................................................................. 63

12.3.3

Classification of installations categories ................................................................................................. 67

12.3.4

Classification of flows “fuel, raw material-product" ............................................................................... 68

12.3.5

Data accuracy levels ................................................................................................................................ 68

12.3.6

Analysis of calculation factors discrepancy for different data accuracy levels ....................................... 69

12.4

Preliminary analysis of expediency of including methane and nitrous oxide emissions to the MRV system for

activity - Stationary Combustion of Fuels ..................................................................................................................... 72 12.5

Suggestions for applying data accuracy levels to installations categories ...................................................... 74

12.6

Treatment of confidential Information ........................................................................................................... 78

12.7

Estimated list of the NCA expenditures for implementation and operation of MRV system ......................... 78

13

Preliminary assessment of installations to be included in the MRV system during the proposed ETS pilot phase 78

13.1

Stationary Combustion of Fuels ...................................................................................................................... 78

13.2

Production of Iron and Steel............................................................................................................................ 81

13.3

Production of Ferroalloys ................................................................................................................................ 81

13.4

Production of metallurgical coke (offsite production of metallurgical coke) .................................................. 81

13.5

Cement Production.......................................................................................................................................... 82

13.6

Production of Ammonia .................................................................................................................................. 82

13.7

Production of Limestone ................................................................................................................................. 83

13.8

Production of Nitric Acid ................................................................................................................................. 83

13.9

Production of Adipic Acid ................................................................................................................................ 83

13.10

Utilization of Limestone and Dolomite ............................................................................................................ 84

13.11

Assessment of the minimum production or use of fuel and raw stock which causes emission of 25,000 t of

СО2 per year .................................................................................................................................................................. 84 13.12 14

Obligations of installation operators and the National Coordination Authority ............................................. 85

Preparation of National Allocation Plans........................................................................................................... 85

14.1

Review of free allocation in the EU ETS ........................................................................................................... 85

14.2

Alternatives to free allocation ......................................................................................................................... 87

14.3

Recommendations on national allocation ....................................................................................................... 87 5

15

Sources of information ...................................................................................................................................... 88

Appendix 1: Details of existing data collection .......................................................................................................... 91 Appendix 2. Example of Statistical form #2-tp (air) ................................................................................................... 95 Appendix 3. Statistical Form 11-mtp (annual) Report on the use of fuel, heat and electricity; .................................. 98 Appendix 4. Statistical form 4-mtp (annual) Report on the remains and use of energy materials and products of oil processing ............................................................................................................................................................... 102 Appendix 5. Form #3-tech-TPP Technical and economic indicators of TPP equipment operation ............................ 110 Appendix 6. Form #6-tp (es) (annual) Report on the operation of the power plant ................................................. 116 Appendix 7. Form #1-tep (annual) Report on the supply of heat ............................................................................. 120 Appendix 8. Form 1P-NPP (annual) Report on the production and sale of industrial products ................................ 123 Appendix 9: List of Ukrainian CHPs and CPPs .......................................................................................................... 127

6

1 INTRODUCTION Ukraine’s government is reviewing carbon pricing options including improving the existing greenhouse gas emissions charges under the Environmental Tax, and the introduction of emissions trading in the medium term. Monitoring Reporting and Verification (MRV) Systems are an essential element of both options.

The purpose of this report is to help to understand the existing data collection procedures in Ukraine and the uses of that data, to understand how these procedures could be improved and help to contribute towards the implementation of the National Environmental Protection Plan, and how these procedures could be integrated into the determination of a national allocation plan and annual reporting within an ETS. Accordingly, the report is split into the following sections: 1) Section 1 is an introductory section which provides a brief review of MRV systems in a number of other countries including the European Union and the United States. It then provides a more detailed review of the existing data collection procedures and the use of that data in Ukraine. This section includes references to existing regulations, and the accompanying appendices provide examples of some of the main forms which are currently in use in Ukraine.

2) Section 2 provides an assessment of the implications of the existing National Environment Protection Action Plan for 2011-2015 approved under Resolution of the Cabinet of Ministers of Ukraine dated 25 May 2011 №577-р (further referred to as the National Plan). Clause 60 of this Plan mandates the “Development and submitting to the Cabinet of Ministers for revision draft acts providing for functioning of the system for state recording, monitoring, reporting, and reliability checks of data related to anthropogenic emission of greenhouse gases; as well as for creating a national system for circulation and trade of carbon units in compliance with the legislation, and their adaptation to the requirements of the European Union Law within the framework of association between Ukraine and the European Union”. In order to fulfill this task, State Environmental Investment Agency of Ukraine (SEIA), which is responsible for these matters according to its Statute, developed the draft Law for introduction of a system for greenhouse gases monitoring, reporting and verification (MRV) in June 2013, and submitted it to the Ministry of Ecology and Natural Resources of Ukraine for approval. The Ministry has already provided their comments, part of which have been incorporated in the draft Law. At this time, (August-September 2013) the draft Law is being revised by the Ministry of Ecology and Natural Resources of Ukraine. This Law shall create framework conditions for the MRV system functioning. The details of its formation, implementation and functioning will be coordinated through subordinate by-law regulations.

3) Section 3 provides specific proposals and recommendations for the development of a monitoring reporting and verification system in conjunction with the implementation of an ETS pilot phase. This is highly relevant because the conclusion of the Association Agreement between Ukraine and the EU which was planned for the end of November, 2013 specifies that within 2 years of the agreement becoming effective, Ukraine shall execute the 1 following actions :  adoption of national legislation and designation of competent authority/ies;  establishment of a system for identifying relevant installations and for identifying greenhouse gases (Annexes I and II);  development of a national allocation plan to distribute allowances to installations (art. 9);  establishment of a system for issuing greenhouse gas emissions permits and issuance of allowances to be traded domestically among installations in Ukraine (art. 4 and 11 - 13);

1

http://www.kmu.gov.ua/docs/Agreement/Annex_XXVI_to_XLIII_to_Agreement.pdf

7



1.1

establishment of monitoring, reporting, verification and enforcement systems and public consultations procedures (art. 9, 14 – 17, 19 and 21);

UKRAINE’S DATA NEEDS FOR THE PLANNING AND MODELLING OF LOW CARBON POLICIES

Proper design and implementation of low carbon policy depends on accurate, verified data, both system-wide as well as at the individual polluter level. For policy design, understanding granular production, technology and emissions data can inform which sectors to target for low carbon policy. Data can also provide insight into aspects of policy, such as how large facilities should be in order to be covered by a policy, or how aggressive the measures should be.

The actual implementation of the policies also requires verified data in order to ensure they are functioning correctly.

Indeed many policies such as emissions caps or fees require a submission of emissions data in order to directly comply.

The low carbon policies that Ukraine may pursue are varied, and the data needs differ quite significantly depending on how and if they are implemented. Low carbon policies promote a cleaner economy through a combination of incentivization (subsidies, tax breaks), setting targets (emissions trading schemes, renewable targets, efficiency targets), regulating an activity, setting up carbon fees or taxes, or promoting new research and education. A leading set of recommendations for low carbon policies are shown in Table 1.

Across the different policy types, the policymaker beforehand should have data regarding: how much the relevant activity is occurring before implementation, how much the activity will increase/decrease after implementation, and the costs/benefits of the policy’s implementation. Once in place, there should be a system to verify that the policy is working, that parties benefiting from it are eligible. This may require documentation, certification of purchase or rd

investments, receipts, instrument readings, and periodic inspections or independent 3 party verifications. Tools used to measure the activities may need to be verified, or show proof of accuracy.

Policies that impose market-based targets and fees require more data gathering infrastructure and tend to be even more complex. An emissions trading scheme (ETS) is perhaps the most complex of all.

Emissions Trading Scheme As a background, an ETS sets a target for GHG emissions for the sectors that are covered, versus a baseline. For example, a target could mandate that eligible GHG emissions be reduced by 20% in 2020 versus what they were in the 2000 baseline year. Facilities that are part of the program (usually large point sources of GHGs in power and industrial sectors) have to turn in allowances at the end of compliance periods that equal their total emissions. The number of allowances that exist in the system equals the total cap. Entities can receive allowances free from the government (allocation), or they may need to purchase them at auctions or from third parties. They also can sell their allowances if they have a surplus.

For an ETS, it is crucial to understand facility-level data, both before the start of the program and of course when it is in place. The term for accurate data gathering is called monitoring, reporting and verification (MRV). For the design of the program prior to the commencement of the ETS, an understanding of the facility-level emissions, production and on the ground information is now seen as best practices. Verified facility-level emissions data beforehand is important in the design because: 8

a)

Verified installation level emissions will provide the most accurate historical emissions, which serve as the baseline and consequently the target. If this data is incorrect (as it was in phase 1 of the EU ETS), then targets can be set inappropriately.

b) Facility-level data provides insight into the size of different installations, allowing the policy-makers to optimize the threshold level for regulation. For instance, if 98% of emissions in the covered sectors came from facilities emitting more than 100,000 tCO2e per year, then it may make sense to use that as the threshold. c)

With the physical installation data combined with production and emissions information, policy-makers will have the necessary raw data to identify, calculate and eventually model future emissions as well as the costs and opportunities for mitigation.

d) Production and emissions data together allow policymakers to understand the emissions intensity and efficiency of different sectors. This can instruct both how much total allocations sectors should perhaps receive, as well as understand how to allocate within sectors. For instance, using production benchmarks is a leading methodology to allocate allowances. Benchmarking means that a facility will receive allowances based on how much they produce, not how much they emit. An example would be that a power facility would receive 1 allowance per MWh produced. Typically, benchmarks are based on average or best-in-class efficiency for the sectors, and accurate production data is crucial for the development and implementation of this type of allocation.

9

SECTION 1: REVIEW OF EXISTING MRV SYSTEMS IN UKRAINE AND WORLDWIDE

10

2 REVIEW OF EXISTING DATA COLLECTION AND REPORTING PROCEDURES IN SELECTED COUNTRIES WORLDWIDE 2.1 EUROPEAN UNION EMISSION TRADING SYSTEM (EU ETS) EU ETS was the first multinational trading system at installations level and is the biggest GHG emissions trading system worldwide. In the initial phase, EU ETS started functioning with limited GHG coverage and with relatively small coverage of activities that produce a significant input in the general volume of GHG emissions in order to reach the “critical mass”, and also: 

to have a simple MRV system;



obtain a liquid market.

Coverage: greenhouse gases selection EU ETS covers about 45% of the CO2 emissions in the EU. The main principle of GHG inclusion in the system is monitoring reliability. That is why at the beginning only one GHG was included in the system, namely CO 2. Starting in 2013, certain chemical substances, perfluorocarbons and nitrogen oxide (N 2O) were added to ETS. Coverage: sectors selection The EU ETS began with the biggest polluters, including companies generating power, heat and steam, refineries and metal manufacturers, pulp and paper industry and construction materials manufacturers (cement, etc.). Since 2012, aviation has been added, and since 2013 – production of aluminium and major chemical producers.

EU ETS does not extend to automobile transport, households, agriculture, forestry, waste management sector, as they have other instruments that are more effective for these activities.

GHG emissions threshold values for inclusion to the MRV system For an installation, a possibility to reject participation in the MRV system would be to satisfy a condition that emissions are lower than 25,000 tons of СО2equivalent in each of the 3 years preceding application to EU ETS. For installations burning fossil fuel, an additional limit of 20 MW capacity has been established.

Table 1. List of Types of Activities included to EU [9] №

Activities

GHG

Annex I to Directive 2003/87/EC (Consolidated) 1.

Combustion of fuels in installations with a total rated thermal input exceeding 20

Carbon dioxide

MW (except in installations for the incineration of hazardous or municipal waste) 2.

Refining of mineral

3.

Production of coke

4.

Metal ore (including sulphide ore) roasting or sintering, including pelletisation

Carbon dioxide

5.

Production of pig iron or steel (primary or secondary fusion) including continuous

Carbon dioxide

Carbon dioxide

casting, with a capacity exceeding 2,5 tonnes per hour 6.

Production or processing of ferrous metals (including ferro-alloys) where

Carbon dioxide

combustion units with a total rated thermal input exceeding 20 MW are operated. Processing includes, inter alia, rolling mills, re-heaters, annealing furnaces, smitheries, foundries, coating and pickling 7.

Production of primary aluminium

Carbon dioxide perfluorocarbons

8.

Production of secondary aluminium where combustion units with a total rated

Carbon dioxide

thermal input exceeding 20 MW are operated 9.

Production or processing of non-ferrous metals, including production of alloys,

Carbon dioxide 11

refining, foundry casting, etc., where combustion units with a total rated thermal input (including fuels used as reducing agents) exceeding 20 MW are operated 10.

Production of cement clinker in rotary kilns with a production capacity exceeding

Carbon dioxide

500 tonnes per day or in other furnaces with a production capacity exceeding 50 tonnes per day 11.

Production of lime or calcination of dolomite or magnesite in rotary kilns or in

Carbon dioxide

other furnaces with a production capacity exceeding 50 tonnes per day 12.

Manufacture of glass including glass fibre with a melting capacity exceeding 20

Carbon dioxide

tonnes per day 13.

Manufacture of ceramic products by firing, in particular roofing tiles, bricks,

Carbon dioxide

refractory bricks, tiles, stoneware or porcelain, with a production capacity exceeding 75 tonnes per day 14.

Manufacture of mineral wool insulation material using glass, rock or slag with a

Carbon dioxide

melting capacity exceeding 20 tonnes per day 15.

Drying or calcination of gypsum or production of plaster boards and other

Carbon dioxide

gypsum products, where combustion units with a total rated thermal input exceeding 20 MW are operated 16.

Production of pulp from timber or other fibrous materials

Carbon dioxide

17.

Production of paper or cardboard with a production capacity exceeding 20

Carbon dioxide

tonnes per day 18.

Production of carbon black involving the carbonisation of organic substances such

Carbon dioxide

as oils, tars, cracker and distillation residues, where combustion units with a total rated thermal input exceeding 20 MW are operated 19.

Production of nitric acid

Carbon dioxide and nitrous oxide

20.

Production of adipic acid

Carbon dioxide and nitrous oxide

21.

Production of glyoxal and glyoxylic acid

Carbon dioxide and nitrous oxide

22.

Production of ammonia

Carbon dioxide

23.

Production of bulk organic chemicals by cracking, reforming, partial or full

Carbon dioxide

oxidation or by similar processes, with a production capacity exceeding 100 tonnes per day 24.

Production of hydrogen (H2) and synthesis gas by reforming or partial oxidation

Carbon dioxide

with a production capacity exceeding 25 tonnes per day 25.

Production of soda ash (Na2CO3) and sodium bicarbonate (NaHCO3)

Carbon dioxide

26.

Capture of greenhouse gases from installations covered by this Directive for the

Carbon dioxide

purpose of transport and geological storage in a storage site permitted under Directive 2009/31/EC 27.

Transport of greenhouse gases by pipelines for geological storage in a storage site

Carbon dioxide

permitted under Directive 2009/31/EC 28.

Geological storage of greenhouse gases in a storage site permitted under

Carbon dioxide

Directive 2009/31/EC 29.

Aviation Flights which depart from or arrive in an aerodrome situated in the

Carbon dioxide

territory of a Member State to which the Treaty applies 12

2.1.1 EU experiences with implementing installation-level MRV systems The importance of the MRV scheme to the EU ETS is underlined by the fact that the first iteration was found to have problematic elements and needed revision. As the rules of the EU ETS evolve and the scheme grows in complexity, so the MRV system must be adapted. Indeed, an important aspect to this is that new rules that are introduced must be considered in the context of the MRV framework, specifically the following points: 

The availability of the underlying data required to implement that rule;



the ability of the operators to provide it;



the quality of the data, its accuracy and that it corresponds exactly to the intended activity to be monitored;



the collection of the data should be robust against manipulation (for example, to prevent incentives where operators may change their behaviour today in order to benefit commercially from the MRV data);



the ability to reasonably verify the fairness and accuracy of the data;



the competency of the verifiers to verify that the data reported by operators provides a fair and accurate representation of events.

The current situation is that the EU has split the monitoring and reporting (conducted by the operator) from the verification and accreditation of verifiers (conducted by verifier and national accreditation body).

The coordination of MRV processes are also critical to successful linking of emissions trading schemes. The level of granularity of the data and the rigour of the verification process should match in both schemes, so that there is mutual trust and credibility across both schemes planning to link.

In this section we describe the general framework for MRV in the EU ETS. We then set out a history of the reporting in the EU ETS and the major events along the way. We set out a table showing the progression of MRV over the different phases.

MRV framework in the EU ETS The MRV framework in the EU ETS governs the compliance cycle of the scheme, in other words the timing of the responsibilities charged to the different actors in the system and when they must meet those responsibilities.

The basis of the MRV framework is a series of principles. From the first iteration of the MRV guidance, the following principles were set out: 

Completeness, covering all sources and all data.



Consistency, so that data are comparable over time.



Transparency, so that the data allows for verifier and authorities to calculate total emissions.



Accuracy, so there is no significant over or under calculation , due diligence is applied and assurances given.



Cost effectiveness, balancing accuracy with costs.



Materiality, ie free from material misstatement, bias in the selection and presentation of information, and provide a “credible and balanced account” of emissions.



Faithfulness, so that a verified emissions report can be depended on to represent faithfully its contents.



Improvement of performance in monitoring and reporting emissions.

13

The simplest way of understanding how the framework functions is to consider the actor in each task. To help explain this, we set out the roles of the different actors based on a single year, termed “Y”. There are three stages in the compliance cycle; the period before year Y, the period during year Y and the period after year Y. Before year Y: Monitoring plan In the period before year Y, the operator (the entity whose emissions are covered by the EU ETS) must apply for a permit to operate and submit to the national authority a monitoring plan. The monitoring plan sets out how that operator intends to meet the requirements for monitoring their greenhouse gas emissions that they will put into practice for all years once the scheme has started or the operator joins the scheme, whichever is soonest. So it will perforce cover year Y. The monitoring plan is the sum of the different approaches an operator takes to either calculating or measuring its emissions. The monitoring plan should contain: 

— the exact definition of the installation and activities carried out by the installation to be monitored,



— information on responsibilities for monitoring and reporting within the installation,



— a list of sources for each activity carried out within the installation,



— a list of fuel and material streams to be monitored for each activity,



— a list of tiers to be applied for activity data, emission factors, oxidation and conversion factors for each of the activities and fuels types/materials,



— a description of the type, specification and exact location of the metering devices to be used for each of the sources and fuels types/materials,



— a description of the approach to be used for the sampling of fuel and materials for the determination of net calorific value, carbon content, emission factors, and biomass content for each of the sources and fuel types/materials,



— a description of the intended sources or analytical approaches for the determination of the net calorific values, carbon content or biomass fraction for each of the sources and fuels types/materials,



— a description of continuous emission measurement systems to be used for the monitoring of a source, i.e. the points of measurement, frequency of measurements, equipment used, calibration procedures and data collection and storage procedures (if applicable),



— a description of the quality assurance and quality control procedures for data management,



— where applicable, information on relevant links with activities undertaken under the Community ecomanagement and audit scheme (EMAS).

The monitoring plans must follow the various formulae for calculation, which are activity-specific variations on the following: CO2 emissions = fuel consumption (Tj) * emission factor (tCO2/Tj) * oxidation / conversion factor The different approaches under each activity are tiered. They are given a rating from 1a, 1b and so on to 4b. The higher the rating, the more accurate the approach. This system is used to ensure that variations taken on by operators are as accurate as peers, and that any variation from the proscribed approach is as least as accurate. They are also used to determine cost effectiveness, ie that the approach results in the most accurate outcome (tonnes of CO2) within available technology at reasonable cost.

14

This tier system allows for a requirement for a greater level of accuracy from activities where it is possible to do so; they tend to be higher emitting entities. To illustrate this, the combustion, refining and coke oven activities face as a minimum requirement tiers 3 and up to 4b. All other activities require tiers 1 and 2.

The national authorities (known as competent authorities) then approve the monitoring plans in order to issue permits to operate to the operators. In other words, it is a requirement of the permit to operate – without approval of the monitoring plan, the company cannot operate at all.

During year Y: Monitoring At the start of 1 January of year Y, the operator beings monitoring their emissions according to the monitoring plan.

The monitoring for year Y runs until midnight of 31 December of that year. The data gathered for that period, year Y, is a complete set.

The monitoring continues seamlessly into year Y+1, but the data captured forms part of the compliance for year Y+1.

Post-year Y: Verification and surrender The operator now must engage one of the verifiers accredited to verify emissions in the scheme to check its report.

The verifier has a series of principles and duties, as explained below. Ultimately, the verified report is brief, setting out the final figure (tonnes of CO2 emitted during covered activities by the operator over year Y).

The verifier is to assess whether the monitoring methodology has been kept to, that the first principles have been met and that the guidelines have been adhered to. On the basis of this assessment the verifier shall conclude as to whether the data within the emissions report contains omissions, misrepresentations or errors that lead to material misstatement of the reported information.

2

The operator has a deadline; by 31 March of year Y+1 it is to submit this verified report to the competent authority.

The operator then has another month to the end of April in Y+1 to surrender allowances that correspond to the total verified emissions figure in the verified report. The competent authority uses that report to determine that the correct number of allowances have been surrendered. Once that has been determined, the compliance cycle is complete.

2

In particular, the verifier faces the following tasks: — understand each activity undertaken by the installation, the sources of emissions within the installation, the metering equipment used to monitor or measure activity data, the origin and application of emission factors and oxidation/conversion factors, and the environment in which the installation operates, — understand the operator's data management system and overall organisation with respect to monitoring and reporting, and obtain, analyse and check the data contained within the data management system, — establish an acceptable materiality level in the context of the nature and complexity of the installation's activities and sources, — analyse the data risks which could lead to a material misstatement within the emissions report, based on the verifier's professional knowledge and the information submitted by the operator, — draw up a verification plan which is commensurate with this risk analysis and the scope and complexity of the operator's activities and sources, and which defines the sampling methods to be used with respect to that operator's installations, — carry out the verification plan by gathering data in accordance with the defined sampling methods, plus all relevant additional evidence, upon which the verifier's verification conclusion will be based, — check that the application of the monitoring methodology specified in the permit has delivered an accuracy level consistent with the defined tiers, — request the operator to provide any missing data or complete missing sections of audit trails, explain variations in the emissions data, or revise calculations, before reaching a final verification conclusion. Throughout the verification process, the verifier shall determine misstatements by assessing whether: — the quality assurance and control processes described in 7.1, 7.2 and 7.3 have been implemented, — there is clear and objective evidence obtained through the gathering of data to support the determination of misstatements.

15

Figure 1: Timing: For the calendar year 2013, the compliance deadlines are 31 March 2014 for the verified report and 30 April 2014 for the surrender of allowances.

Evolution of MRV in the EU ETS As already stated, the MRV rules have evolved from one phase to the next. In the first two phases, which ran from 2005-2007 and 2008-2012 respectively, the guidance reflected the fact that greater flexibility was afforded to Member States in terms of allocation of allowances and by extension the implementation of MRV guidance.

There were lessons learnt from this approach, with a disparity between Member States in their application of the rules on MRV, and on accrediting verifiers to be enabled to verify the emissions reports of entities in the scheme. As a result, differences in the quality of the application of the MRV process appeared and industry participants with assets across different Member States reported back that the differences in application had commercial implications; in other words unequal application meant there was not a level playing field from one Member State to another.

As a result, the MRV system for phase 3 was changed. It is now more prescriptive and harmonized at European level, emphasis on the use of templates for common use.

3

The MRV system is now split into two regulations, the first being the Monitoring and Reporting Regulation (MRR) , 4

and the Accreditation and Verification Regulation (AVR) .

Under the MRR, there are the following templates and guidance notes: o

Guidance document No. 1 - The Monitoring and Reporting Regulation – General guidance for installations

o

Template No. 1: Monitoring plan for the emissions of stationary installations

o

Template No. 4: Annual emissions report of stationary source installations

o

Template No. 7: Improvement report for stationary installations

o

Unreasonable costs determination tool

o

Exemplar checklist for assessing installation MPs

o

Exemplar monitoring plan

o

Exemplar improvement report

o

Exemplar monitoring plan update

o

Guidance document No. 2 - The Monitoring and Reporting Regulation – General guidance for aircraft operators

3

21/06/2012 - Commission Regulation 601/2012 on the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC of

the European Parliament and of the Council 4

21/06/2012 - Commission Regulation 600/2012 on the verification of greenhouse gas emission reports and tonne-kilometre reports and the

accreditation of verifiers pursuant to Directive 2003/87/EC of the European Parliament and of the Council Text with EEA relevance

16

o

Template No. 2: Monitoring plan for the emissions of aircraft operators

o

Template No. 3: Monitoring plan for the tonne-kilometre data of aircraft operators

o

Template No. 5: Annual emissions report of aircraft operators

o

Template No. 6: Tonne-kilometre data report of aircraft operators

o

Template No. 8: Improvement report for aircraft operators

o

Guidance document No. 3 - Biomass issues

o

Guidance document No. 4 - Uncertainty Assessment

o

GD No. 4a - Exemplar Uncertainty Assessment (for an installation with low emissions)

o

Guidance document No. 5 - Sampling and Analysis

o

Frequency of Analysis Tool

o

GD No. 5a – Exemplar Sampling Plan

o

Guidance document No. 6 - Data flow activities and control system

o

GD No. 6a – Risk assessment and control activities - examples

o

Tool for operator risk assessment

Under the (AVR), there are the following guidance notes and templates: o

The Accreditation and Verification Regulation - Explanatory Guidance Document No.1

o

Guidance document - Key guidance note II.1 on the scope of verification

o

Guidance document - Key guidance note II.2 on risk analysis

o

Guidance document - Key guidance note II.3 on process analysis

o

Guidance document - Key guidance note II.4 on sampling

o

Guidance document - Key guidance note II.5 on site visits concerning installations

o

Guidance document - Key guidance note II.6 on the verification report

o

Verification report template

o

Guidance document - Key guidance note II.7 on competence of verifiers

o

Guidance document - Key guidance note II.8 on the relation between EN ISO 14065 and AVR

o

Guidance document - Key guidance note II.9 on the relation between EN ISO/IEC 17011 and AVR

o

Guidance document - Key guidance note II.10 on information exchange

o

Information exchange template No. 1 - Notification template (Article 76 AVR) from the verifier to the National Accreditation Body/National Certification Authority (by 15 November each year)

o

Information exchange template No. 2 - Work programme (Article 70(1) AVR) from the National Accreditation Body/National Certification Authority to the Competent Authority (by 31 December each year)

o

Information exchange template No. 3 - Management report (Article 70(3) AVR) from the National Accreditation Body/National Certification Authority to the Competent Authority (by 1 June each year)

o

Information exchange template No. 4 - Information exchange (Article 72 AVR) from the Competent Authority to the National Accreditation Body/National Certification Authority (recommended by 30 September each year)

o

29/10/2012 - Guidance document - Key guidance note II.11 on certification

o

28/10/2013 – Guidance document – Key guidance note II.12 on time allocation in verification

o

22/11/2012 - The Accreditation and Verification Regulation - Verification Guidance for EU ETS Aviation (GD III)

o

Addendum: Quick guide to verification of small emitters (EU ETS Aviation)

17

The intention is for a greater level of harmonization across the different jurisdictions within the EU and other countries implementing the EU ETS. It also provides a template for countries considering setting up their own ETS with a view to possibly creating a link or integrating fully with the EU ETS.

2.2 AUSTRALIA - NATIONAL GREENHOUSE AND ENERGY REPORTING SYSTEM (NGER) NGER was put into effect by the Law adopted in 2007. The Law is targeted at supporting National emissions cadaster, and starting a GHG emissions trading system, as well as improvement of data collection.

Coverage: greenhouse gases selection

CO2, CH4, N2O, HFCs, PFCs, SF6 Coverage: sectors selection 

Power Generation ­

Fuel Combustion

­

Effluents



Industrial Processes



Waste

GHG emissions threshold values for inclusion to the MRV system For installations - 25,000 tons of CO2 (100 TJ)

2.3 US GHG REPORTING PROGRAM The program covers over 40 source categories for reporting, which amounts to 85-90% of the total GHG emissions volume in the USA. Basic principles of the program use: 

annual mandatory greenhouse gases reporting;



direct electronic reporting to the Environmental Protection Agency (EPA);



EPA checks emissions reports.

GHG emissions limits for inclusion to the MRV system Any installation with emissions amounting to 25,000 tons of CO2 equivalent per year, or more.

Table 2. List of Types of Activities included in the US GHG Reporting Program 1.

Subpart A—General Provisions 2.

Subpart B—(Reserved)

3.

Subpart C—General Stationary Fuel Combustion Sources

4.

Subpart D—Electricity Generation

5.

Subpart E—Adipic Acid Production 18

6.

Subpart F—Aluminium Production

7.

Subpart G—Ammonia Manufacturing

8.

Subpart H—Cement Production

9.

Subpart I—Electronics Manufacturing

10.

Subpart J—Ethanol Production

11.

Subpart K—Ferroalloy Production

12.

Subpart L—Fluorinated Gas Production

13.

Subpart M—Food Processing

14.

Subpart N—Glass Production

15.

Subpart O—HCFC–22 Production and HFC–23 Destruction

16.

Subpart P—Hydrogen Production

17.

Subpart Q—Cast Iron and Steel Production

18.

Subpart R—Lead Production

19.

Subpart S—Lime Manufacturing

20.

Subpart T—Magnesium Production

21.

Subpart U—Miscellaneous Uses of Carbonate

22.

Subpart V—Nitric Acid Production

23.

Subpart W—Petroleum and Natural Gas Systems

24.

Subpart X—Petrochemical Production

25.

Subpart Y—Petroleum Refineries

26.

Subpart Z—Phosphoric Acid Production

27.

Subpart AA—Pulp and Paper Manufacturing

28.

Subpart BB—Silicon Carbide Production

29.

Subpart CC—Soda Ash Manufacturing

30.

Subpart DD—Use of Electric Transmission and Distribution Equipment

31.

Subpart EE—Titanium Dioxide Production

32.

Subpart FF—Underground Coal Mines

33.

Subpart GHG—Zinc Production

34.

Subpart HH—Municipal Solid Waste Landfills

35.

Subpart II—Industrial Wastewater Treatment

36.

Subpart JJ—Manure Management NOTE: EPA will not be implementing subpart JJ of Part 98. The FY 2013 House Subcommittee Report Section 421 continues a provision prohibiting the expenditure of funds for this purpose.

37.

Subpart KK—Suppliers of Coal

38.

Subpart LL—Suppliers of Coal-based Liquid Fuels

39.

Subpart MM—Suppliers of Petroleum Products

40.

Subpart NN—Suppliers of Natural Gas and Natural Gas Liquids

41.

Subpart OO—Suppliers of Industrial Greenhouse Gases

42.

Subpart PP—Suppliers of Carbon Dioxide

43.

Subpart QQ—Imports and Exports of Equipment Pre–charged with Fluorinated GHGs or Containing Fluorinated GHGs in Closed–cell Foams 19

44.

Subpart RR—Geologic Sequestration of Carbon Dioxide

45.

Subpart SS—Manufacture of Electric Transmission and Distribution Equipment

46.

Subpart TT—Industrial Waste Landfills

47.

Subpart UU—Injection of Carbon Dioxide

Below is a consolidated table for all MRV systems existing worldwide.

Table 3. Consolidated table: coverage of activity types and GHG by MRV systems [5]  CO2, some GHG starting 2013 EU ETS  Power generation and industry, aviation starting 2012  Approximately 11,500 installations  For an installation > 25,000 t of CO2-equivalent (20MW for fuel combustion), specific threshold production levels for industrial processes  CO2, CH4, N20, HFCs, PFCs, SF6 Australia  will gradually cover energy sector, transport, industry, waste. Voluntary for forestation.  Limit >25,000 t of CO2equivalent per year. Approximately 1,000 installations  CO2, CH4, N20, HFCs, PFCs, SF6 California  Power generation, industry, effluents  Approximately 600 installations, 85% of California emissions  Limit for industry >25,000 t of CO2equivalent per year  For Phase 1 only CO2, in the future, additional GHG possible.

Kazakhstan  Coverage: Production of Oil, Gas and Coal; Power Generation; Metallurgy; Chemical Industry;  transport and agriculture (in revision);  For an installation >20,000 t of CO2equivalent per year.  CO2 Regional  Only power generation Greenhouse Gas  Capacity > 25 MW Initiative  Power Generation and Industry Alberta  For an installation >100,000 t of CO2equivalent per year  CO2, CH4, N20, HFCs, PFCs, SF6 New Zealand  Coverage: Power Generation, Transport, Industry, Waste, Forestry and Agriculture  Threshold values are defined for each industry  CO2, CH4, N20, HFCs, PFCs, SF6 Western Climate  Coverage: Power Generation, Industry, Oil and Gas sectors, adopted by the decision of Initiative individual states  Emission threshold values >25,000 t CO2equivalent per year  CO2, CH4, N20, HFCs, PFCs, SF6 USA H.R.2454  Initially will cover Power Generation, Industry and Oil and Gas sectors. Agriculture and (Waxman Markey) forestry and waste sector are not included.  Emission threshold values >25,000 t CO 2equivalent per year. Approximately 7,400 installations covered.  CO2 United Kingdom (UK  State and private sector (for emissions that are not covered by climate agreements or EU CRC Energy ETS) Efficiency Scheme)  Entities consuming >6 000 MWh of power per year

20

Conclusions Currently, there are MRV systems worldwide that cover all direct-action GHGs and include those that are difficult to monitor, report and verify activities, namely emissions related to transport, agriculture, and waste.

Most of the MRV systems envisage a pilot phase with a limited coverage of GHGs and activity types with purpose of simplification and cheapening of the MRV system, gaining experience, improving the regulatory framework, expanding institutional capabilities with further expansion of the activities and GHGs coverage.

For all worldwide MRV systems, primary inclusion of two sectors with most GHG emissions is typical, namely Power Generation sector (stationary combustion of fossil fuel) and GHG emissions caused by industrial processes.

3 REVIEW OF MONITORING AND REPORTING IN UKRAINE Currently in Ukraine there are three types of reporting of data used to estimate the emission and absorption of greenhouse gases: 1.

2.

3.

National level, which is used for national inventory of GHG emission and absorption, for example, the forms of state statistical reporting #4-mtp and #11-mtp; Sector level, which is mainly used to determine the strategies and measures to reduce emissions and increase the absorption of greenhouse gases, and partly for the national inventory, for example, the information of relevant ministries and agencies; The level of enterprises, data that is used to develop statistic reports for two levels: national and regional.

The reliability of data at the national level is quite high. The national cadastre of Ukraine presents a level of indeterminacy of data. The table below presents an example for energy and industry sectors, as the key and largest sources of GHG emissions.

Table 4. Indeterminacy of GHG emissions for energy and industry ([1] Table 1.9) Sector

Share in the total amount of

The indeterminacy of

emissions,%

emissions in 2011,%

Energy

75.6

3.7

Industry

12.8

3.1

Currently in Ukraine there is a lack of reporting requirements for GHG emissions at the plants level. However, in accordance with existing orders of the State Statistics Service, enterprises that pollute the atmosphere should quarterly and annually report to statistics and environmental agencies on emissions of pollutants and greenhouse gases. Statistical form #2-tp (air) Report on air protection includes all major greenhouse gases of direct effect. Based on these data, the relevant environmental tax is calculated and collected.

Further details on the forms of state statistical observations for 2013 and form for the collection of statistics from the higher GHG emitting sectors of energy; production and distribution of electricity, heat, gas, water; and industrial production are provided in Appendix 1.

3.1.1 Sources of information for the development of annual national inventory of GHG emission and absorption in Ukraine At the national level, in order to improve the collection, elaboration of statistical information on the proper accounting of anthropogenic emission and absorption of GHG the Agreement on Exchange of Information between the State Environmental Investment Agency (SEIA) and the State Statistics Service of Ukraine (SSSU) was developed, which entered into force on October 29, 2012. Also, the SEIA provides for regular coordination of the collection, analysis and processing of information for the preparation of the national reports of Ukraine on climate change as well as the biennial report and their submission to the Secretariat of the UNFCCC.

21

The information and the list of sources used to develop the national inventory of GHG emissions and absorption in Ukraine are provided in the table below. This information is collected, processed and stored at the SEIA. Table 5. Summary information on the main sources of data on estimation of emission and absorption of GHG ([1] Table 1.3.)

Source of data

Data on the activity

State Statistics Service

Amount of fuel consumed;

of Ukraine

Heating capacity of the main fuels; The volume of production, import, export and change in stocks of fuel; The volume of oil and natural gas transportation through main oil and gas pipelines; Production, export and import of industrial products; The use of limestone in agriculture and for the production of sugar, soda and cement; Consumption of cast iron for steel production; Number of livestock by species and sex-age groups in the public and private sectors across Ukraine; Number of cows and other cattle by farms and households by regions; Consumption of fodder to feed cows, bulls – producers of dairy cattle and other cattle by farms and households across Ukraine and by regions; Milk yield of cows and sheep; The amount of wool per sheep; Gross yield, yield and harvested area of crops; Amount of nitrogen mineral and organic fertilizers added to soil across Ukraine and by regions; Grouping of farms by the availability of livestock; Area of felling in forestry (including types of felling by purpose by regions); Scale of forest fires in Ukraine; Information on the total area of forests and areas covered with forests in Ukraine; Amount of added to soil and the fertilized area of nitrogen and organic fertilizers based on crop species; Number of total and urban population; Amount of waste of I-III class of hazard from food industry and agro-industrial complex, located in landfills; Annual average consumption of protein by population in Ukraine.

Ministry of Energy and Coal

Amount of fuel consumed by TPP and CHP, as well as its heating capacity; extraction

Industry of Ukraine

of oil and natural gas; import/export of oil and oil products; mining, import/export of coal

Ukraine State Agency for

Production, export and import of industrial products;

Management of State

data on the percentage of carbon in coke, cast iron and steel.

Corporate Rights and Property Ministry of Defense of

Information on the volume of consumption of diesel fuel and aviation gas to meet

Ukraine

the needs of the army.

Ministry of Emergencies of

Data on the average annual air temperature by regions and stations of

Ukraine

meteorological network of State Hydro-Meteorological Centre 22

Industrial enterprises

Data of chemical, metallurgical production, production of cement, glass as well as data on the consumption of hydrofluorocarbons, sulfur hexafluoride.

Ministry of Regional

Data on the amount of solid waste removed to landfills; data on the amount of

Development, Construction

waste household water;

and Housing and Communal

Information on sanitation of settlements; data on wastewater management;

Services of Ukraine

Amount of fuel consumption by utilities.

Ministry of Ecology and

Amount and composition of waste burned at waste incineration plants of Ukraine;

Natural Resources of

data on methane recovery in landfills;

Ukraine

data on the morphological composition and density of waste; data on domestic wastewater.

State Agency of Land

Reporting data on quantitative accounting of land in Ukraine, including the report on

Resources of Ukraine

the availability of land and land allocation among owners by types of land use and economic activities; Land Cadastre of Ukraine.

National University of Life

Distribution of dung and manure of animals from systems of collection, storage and

and Environmental Sciences

use; data on the average live weight, average daily gain and the structure of the

of Ukraine

species composition of cattle; data on the average live weight of sheep.

NSC Institute of Agriculture

Value of the share of nitrogen in surface crop residues; data on the loss of nitrogen

of NAASU

due to evaporation as NH3 and NOx from added nitric fertilizers; data on nitrogen losses due to leaching/runoff from added fertilizers.

3.1.2 Long-term forecasting of GHG emissions in Ukraine In Ukraine there are ongoing efforts on the long-term forecasting of GHG emissions. The basic, background information for modeling is the information available at the national and sector levels. For example, the following are the main sources of information used in determining the energy flows TIMES-Ukraine [8].

The main sources of information on the volume and nature of energy flows TIMES-Ukraine are the reporting data of statistical observations: (forms: # 24 energy, #23-N, #6-tp, (hydro), #11-mtp); fuel consumption and conversion to other types of fuel and energy, use of fuel for non-energy goals, the final fuel consumption by types of activity - form #4-mtp; electricity consumption by types of activity - form #24-energy and #11-mtp; specific consumption of fuel, electricity and heat; production of electricity and heat by type of equipment; consumption of energy in the conversion to secondary forms by sectors; output and use of combustible waste - form #11-mtp. In addition, in order to disaggregate the structure of the energy sector and identify technological and cost parameters of energy processes, statistical data were used from the Ministry of Fuel and Energy of Ukraine, generation, electricity and gas supply companies as well as companies engaged in extraction of oil, gas and coal.

For the information content of the model were used: the volume of the formation and use by industrial technological processes of secondary raw materials and production waste - form #14-mtp; amount of supply heat, production of energy, fuel and other industrial products - form #1p-npp; amount of supply of natural gas - form #1-gas; amount of supply of heat - form #1-tep; the structure of a fleet of vehicles and their performance - form #4-TZ, form #51-avto, form #2-tr, form 2-etr, form #31-CA, form #1-zal.

23

3.2 EXISTING DATA SOURCES AT THE PLANT LEVEL The sections below provide detailed information on the forms of statistical reporting of plants.

3.2.1 Form #2-tp (air) Report on air protection One of the available sources of information for establishing a monitoring and reporting system in Ukraine could be a form of state statistical observations on air protection #2-tp (air) Report on air protection. But the analysis of this form proved the opposite, namely that this form cannot be used due to the large indeterminacy of reported data.

The forms #2-tp (air) present the data on emissions of pollutants and greenhouse gases from stationary sources, i.e. from a single production, technological process and plant. The data on emissions from mobile sources, including industrial, agricultural and other machinery, as well as cars and other modes of transport are not included in these forms. Comparison of calculations of greenhouse gas emissions in the National Cadastre of Ukraine and the available information on greenhouse gas emissions in the form #2-tp showed their complete noncompliance. The main reasons are the following:  noncompliance of methods of calculating greenhouse gas emissions, and  lack of implementation of procedures of quality control of background data used to calculate GHG emissions and reporting data.

Example of the statistical form #2-tp Amount of carbon dioxide emissions into the atmosphere from stationary sources in 2011 is provided in Appendix 2.

3.2.2 Forms for reporting on the use of fuel and energy Reports by the form #4-mtp (annual) [3] are developed by enterprises that are engaged in conversion of fuel and energy into other types of fuel and energy. Form #4-mtp (sv) (annual) is a simplified version of the form #4-mtp (annual) and is aimed for enterprises - consumers of primary fuels and products of their processing that are not engaged in conversion of fuel and energy into other types of fuel and energy.

Forms #4-mtp (annual) and #4-mtp (sv) (annual) are submitted by respondents cumulatively from the beginning of the year. Reports by form #4-mtp (annual) are developed by enterprises that are engaged in conversion of fuel and energy into other types of fuel and energy.

The form of state statistical observations #4-mtp (annual) consists of five sections; the form #4-mtp (sv) (annual) - four sections.

Section 1 of both forms presents the amount of remains of all types of energy materials and products of oil processing in possession of customers and suppliers at the beginning and end of the reporting period.

Section 2 presents the total amount of energy materials and products of oil processing consumed. Consumption by certain types of economic activity is detailed in Sections 3, 4 and 5: - Section 3 of the form #4-mtp (annual) includes indicators that characterize the use of energy materials and products of oil processing by energy sector for conversion to other types of energy or fuel products with details by type of conversion, as well as for consumption by energy sector; - Section 4 of the form #4-mtp (annual) and Section 3 of the form #4-mtp (sv) (annual) present final consumption of energy materials and products of oil processing with details by certain areas, as well as the use of energy for nonenergy purposes as raw material for production of chemical, petrochemical and other non-fuel products and materials for non-fuel purposes; - Section 5 of the form #4-mtp (annual) and Section 4 of the form #4-mtp (sv) (annual) present the losses of energy materials and products of oil processing by type of loss.

Reports by the form #4-mtp (monthly) are submitted by enterprises - legal entities and separate divisions of legal entities (hereinafter - enterprises) of all types of economic activity, irrespective of their size, legal form and subordination that use and have remains of energy materials and oil processing products.

24

The state statistical observation by forms #11-mtp (annual) On the use of fuel, heat and electricity, #11-er (annual) On consumption of fuel, heat and electricity, #11-mtp (fuel) (annual) Actual fuel consumption for production of certain products and works, #11-mtp (ver) (annual) Formation and utilization of secondary energy resources is carried out with the established qualification requirement and annual periodicity and covers enterprises - legal entities and separate divisions of legal entities (hereinafter - enterprises) of all types of economic activity irrespective of size, legal form and subordination.

Forms #11-mtp (annual) and #11-er (annual) are submitted by respondents cumulatively from the beginning of the year.

Reports by form #11-mtp (annual) are developed by enterprises with average daily fuel consumption of 2 t and more, or 15 Gcal and more of heat, or with electrical output of 100 kW and more, which use fuel and energy for production of certain products and works and utilities of the enterprise. However, if the enterprise or its separate division corresponds to one of the specified qualifications, it must report by form #11-mtp (annual) and fill out all sections of reports, even if during the reporting period some of the indicators are below the established qualification.

Form of state statistical observation #11-mtp (annual) consists of three sections: first section - Fuel, second section Heat, third section - Electricity. These sections present the actual amounts and specific consumption of fuel, heat and electricity per unit of output (work) for each type of output (work) by the list established by the State Statistics Service.

The 11-mtp (annual), #11-er (annual), #11-mtp (fuel) (annual), #11-mtp (ver) (annual) are developed by legal entities or separate divisions of legal entities of all types of economic activity under the following conditions: #4-mtp (annual), #4-mtp (sv) (annual), #4-mtp (monthly) – that use and have remains of energy materials and products of oil processing; #11-mtp (annual), #11-er (annual), #11-mtp (fuel) (annual) – that use fuel and energy for production of certain products and works as well as utility needs of the enterprise in accordance with the qualification of consumption; #11-mtp (ver) (annual) - that produce and use heat and combustible secondary resources.

These forms are submitted in hard copy to the state statistics agencies at the place of work of the respondent within the timeframe specified in the forms. If the respondents submit report forms electronically, their submission to the state statistics agencies is carried out in accordance with the approved by the SSS Procedure for submission of electronic reports to the state statistics agencies.

At all levels of processing after the receipt of the above forms from respondents, their analysis, inclusion to the corresponding complex of electronic processing of statistical information, logical and arithmetic control (of both incoming and outgoing data array) and transfer of considered information to a higher level of development are performed.

The development of forms #4-mtp (sv) (annual) and #11-er (annual) is not carried out separately. At the entering of their data into the relevant complex of electronic processing of statistics at the regional level the reports by form #4mtp (sv) are put into the sheet of form #4-mtp, reports by form #11-er – to the sheet of the form #11-mtp and submitted to the state level in a modified version.

The electronic processing of statistical information is provided for two levels: national and regional. The results of state statistical observations on the use of energy resources, products of oil processing, heat, electricity are provided as follows: – at the regional level: a summary for the region as a whole, by districts, types of economic activity, fuels and energy, main organizational and legal forms of business, areas of fuel and energy use, by groups of entities under the conditions described above; – at the national level: a summary for the country as a whole, by regions (Autonomous Republic of Crimea, oblasts, Kyiv and Sevastopol), by types of economic activity, fuel and energy, main organizational and legal forms, areas of fuel and energy use, by groups of entities under the conditions described above.

Examples of forms #11-er (annual) and #4-mtp (sv) (annual) are provided in Appendix 3 and 4.

25

3.2.3 Form #3-tech-TPP Technical and economic indicators of the performance of TPP equipment To the data of operational departmental reporting of the Ministry of Energy and Coal Industry of Ukraine by each TPP by form #3-tech the data at the level of plants are included, that meet the requirements of the third level of data accuracy, that is the data obtained at the enterprise level by analyzing the taken samples of fuel.

Example of form #3-tech is presented in Appendix 5. The data highlighted in yellow were obtained at the level 3 - heat losses from boilers with chemical and mechanical underburning.

3.2.4 Form 6-tp (es) (annual) Report on the operation of the power plant To the form of state statistical observation #6-tp (es) (annual) Report on the operation of power plant the technical and economic indicators of the performance of power plants with capacity of 500 kW and more are entered. Example of the form #6-tp (es) (annual) is provided in Appendix 6.

3.2.5 Form #1-tep (annual) Report on the supply of heat Legal entities, separate divisions of legal entities (TPP, CHP, HPP, SDPP, NPP, enterprises of heating networks and other enterprises and organizations) that have boilers and heating networks and supply heat and hot water to the population and for utilities submit an annual form #1-tep (annual) Report on heat supply. Example of form #1-tep (annual) is presented in Appendix 7.

3.2.6 Form 1P-NPP (annual) Report on the production and sale of industrial products Legal entities, separate divisions of legal entities engaged in industrial activities submit an annual form 1P-NPP (annual) Report on the production and sale of industrial products. Example of form 1P-NPP (annual) is presented in Appendix 8.

3.3 MAIN STATISTICAL PUBLICATIONS ON THE USE OF ENERGY MATERIALS The main statistical publications on the use of energy materials, products of oil processing, heat and electricity by enterprises and organizations of the country are:  statistical bulletins Remains and use of energy materials and products of oil processing of _____;  statistical bulletins Results of use of fuel, heat and electricity of ______;  economic reports On the use of energy materials and products of oil processing in ___;  economic reports Effectiveness of use of fuel and energy resources for _____ / in ___;  express reports On the use of energy materials and products of oil processing for _____;  monthly Statistical Bulletin #1;  statistical digests: Ukraine in figures in ___, Ukraine ___, Regions of Ukraine, Statistical yearbook of Ukraine, Fuel and Energy Resources of Ukraine;  tables for the State Statistics Service website.

3.4 DATA SOURCES FOR THE DEVELOPMENT OF ENERGY BALANCES Data for development of energy balances are generated from the following sources [4]: 26



 

statistical observations of producers, vendors, distributors of primary and conversed energy as well as importers and exporters of energy resources (state statistical observations by forms #1P - NPP (annual) Report on production of industrial products; 24 - energy (annual) Electric balance, composition of power equipment and report on power plants operation (electric generators), 6-tp (es) (annual) Report on the operation of power plant; 1-gas (annual) Report on the supply of natural (liquefied) gas, 1-tep (annual) Report on the supply of heat, as well as data on the study of households as regards the amount of consumption of energy materials based on self-production); 4-mtp (annual) Report on remains and use of energy materials and products of oil processing; 11-mtp (annual) Report on the use of fuel, heat and electricity; 11-mtp (fuel) (annual) Actual fuel consumption for production of certain products and works; 11mtp (ver) (annual) Production and use of secondary energy resources; 1-torg (oil products) (monthly) On sale of light oil products; 1-opt (annual) Report on the sale and stocks of commodities (products) in wholesale trade, as well as the data on the export (import ) of goods; administrative information (data of NJSC Naftogaz, NERC, Ministry of Energy and Coal Industry, Customs Service of Ukraine); evidence-based additional calculations and expert evaluations.

4 ACCESS TO DATA AND REPORTS FOR PLANNING AND MODELLING LOW-CARBON DEVELOPMENT IN UKRAINE The Strategy for the Development of State Statistics by 2017, which was approved by the Ordinance of the Cabinet of Ministers of Ukraine of March 20, 2013 #145-r envisages a number of measures aimed at improving the quality of government statistics [7], in particular:  harmonization of legislation in the field of state statistics and allied fields with relevant international standards and legal regulations of the EU;  introduction of statistical procedures based on the methodology, classifications and registers harmonized with EU and international standards;  ensuring evaluation of the quality of data of the state statistical observations based on the criteria of the European Statistical System;  introduction of the methodology of statistical accounting of GHG emissions into the atmosphere aiming at ensuring the implementation of Ukraine’s obligations under the KP. More information on environmental statistics is presented in the table below.

Table 6: Further information on environmental statistics Environmental statistics State Statistics Introduction of the methodology of statistical accounting of GHG 50

emissions into the atmosphere for ensuring the implementation of Ukraine’s obligations under the KP

Service Ministry of Ecology and Natural

2014—2015

Resources of Ukraine State Statistics

51

Bringing statistical accounting of waste in compliance with

Service

international standards

Ministry of Ecology

2013—2014

and Natural 27

Resources of Ukraine 52

Introduction of the system of environmental accounts

—“—

2013—2015

—“—

2013—2017

Establishment of an information system of environmental statistics 53

as part of a national information system of environmental protection in accordance with the principles of the shared European environment information system

Further actions to improve energy statistics [2]  Approval of methodologies on the energy balance formation;  Formation of the national commodity and energy balances based on the statistics reporting and administrative data;  Collection of the monthly reporting data on fuel consumption based on the selective observation method These actions are generally consistent with the recommendations from the International Energy Agency which recommends that the Government should:  Adopt international standards for constructing energy balances and the definition of sectors to enable international comparisons. An accurate energy balance is a cornerstone for assessing historic trends in energy production, supply and consumption.  Improve the availability and reliability of disaggregated energy statistics to facilitate development of meaningful energy efficiency indicators. Ensure the collection and use of end-use data based on international experience and data collection efforts, particularly the International Energy Agency’s annual statistical questionnaires and the energy efficiency data template. This includes establishing a robust system of indicators for monitoring progress in the area of energy efficiency and energy savings.

5 CONCLUSIONS Currently in Ukraine there is no reporting on GHG types at the level of plants. The form of state statistical observations on air protection #2-tp (air) Report on air protection cannot be used due to the large indeterminacy of reported data on GHG emissions as well as due to:  inconsistency of methods of calculating greenhouse gas emissions,  non-implementation of quality control of background data used to calculate GHG emissions;  non-performance of internal and external control of reporting data.

5

The provisions of the Law On State Statistics with regard to confidential information make it impossible to obtain the data on the volume of production (consumption) of raw materials at the level of plants.

The data by the forms of statistical observations at the level of plants are filed in the regional offices of the State Statistics Service of Ukraine. In case of obtaining permission to access the reporting forms at the level of plants it is 5

Article 21. Guarantees of state statistics agencies on ensuring the statistical data confidentiality.

Primary data collected by state statistics agencies from the respondents during statistical observations and administrative data on the respondents received by the state statistics agencies from bodies engaged in activities related to the collection and use of administrative data constitute confidential information that is protected by law and is used solely for statistical purposes in the consolidated impersonal form.

The dissemination of statistical information on the basis of which it is possible to identify confidential statistical information about a particular respondent is prohibited.

28

difficult to use them for efficient processing of background data and for the development of policy of low-carbon development of Ukraine for the following reasons:  complex format of forms;  different data media (paper, electronic);  large number of reporting enterprises, which can lead to unnecessary costs for processing information etc.

Bearing these early conclusions in mind the following sections of this report provide further detail on how an MRV system could be designed and piloted in conjunction with an Emissions Trading Scheme.

29

SECTION 2: REVIEW OF NATIONAL SYSTEM FOR GHG MONITORING, REPORTING AND VERIFICATION AND LINKS TO LOW CARBON DEVELOPMENT POLICY

30

6 REVIEW OF DRAFT LAW ON MEASURES FOR ORGANIZING AND IMPLEMENTING MRV OF GHG EMISSIONS Resolution of the Cabinet of Ministers of Ukraine dated 25 May 2011 №577-р approved the National Environment Protection Action Plan for 2011-2015 (further referred to as the National Plan). Clause 60 of the Plan points out: “Development and submitting to the Cabinet of Ministers for revision draft acts providing for functioning of the system for state recording, monitoring, reporting, and reliability checks of data related to anthropogenic emission of greenhouse gases; as well as for creating a national system for circulation and trade of carbon units in compliance with the legislation, and their adaptation to the requirements of the European Union Law within the framework of association between Ukraine and the European Union”. The terms for completion of this plan clause are defined as June 2011 – December 2015.

In order to fulfill this Clause 60 of the National Plan, the State Environmental Investment Agency of Ukraine (SEIA), which is responsible for these matters according to its Statute, developed the Draft Law for introduction of a system for greenhouse gases monitoring, reporting and verification (MRV) in June 2013, and submitted it to the Ministry of Ecology and Natural Resources of Ukraine for approval. The Ministry has already provided their comments, part of which have been incorporated in the draft Law. At this time, (August-September 2013) the Draft Law is being revised by the Ministry of Ecology and Natural Resources of Ukraine. This Law shall create framework conditions for the functioning of the MRV system. The details of its formation, implementation and functioning will be coordinated through subordinate by-law regulations.

Here, we include the main provisions of the draft Law “On measures for organizing and implementing monitoring, reporting and verification of greenhouse gases emissions”.

This document defines basic terminology related to the MRV, namely:  verification report – a document compiled by an independent expert organization based on results of greenhouse gases emissions verification conducted by the organization;  verification – process of verifying data on volumes of greenhouse gases emission volumes reflected in the report on emissions monitoring as implemented by an independent expert organization;  greenhouse gases emissions – release into air of greenhouse gas or its mixture produced by an installation which falls under this Law;  monitoring report – document produced by installation operator based on results of fulfilling the monitoring plan for each installation individually that contain, in particular, information on emissions for the reporting calendar year;  monitoring – process of systematic collection, processing and archiving information according to monitoring plan with purpose of determining actual volumes of greenhouse gases emissions from given plant;  independent expert organization – a legal entity or individual entrepreneur, resident or non-resident which has been granted right by a duly accredited authority for conformity assessment to provide services in monitoring report verification;  installation operator – legal entity or individual entrepreneur that owns or legally operates a given installation in the territory of Ukraine;  monitoring plan – measures developed, approved and implemented by the installation operator and targeted at tracking, assessment and/or measurement of actual greenhouse gases emissions produced by the installation within a period;  installation – a stationary workshop, assembly or any other object of economic activity whose functioning causes greenhouse gases emissions Article 5 of the Draft Law defines government control bodies in monitoring, reporting and verification of greenhouse gases emissions, namely:  State Control in monitoring, reporting and verification of greenhouse gases emissions, is implemented in compliance with the Law by the following authorities: 31



Cabinet of Ministers of Ukraine;



the central body of executive power that forms and secures implementation of the State Policy in Environment protection (today - Ministry of Ecology and Natural Resources of Ukraine);



central body of executive power implementing State Policy in the field of climate change and securing compliance with the UN Framework Convention on Climate Change and the applicable Kyoto Protocol (today - State Environmental Investment Agency of Ukraine);



other central bodies of executive power in the corresponding areas of activity authorized by the President of Ukraine in the manner prescribed by Law.

The following articles establish the authority of the central bodies of executive power in implementation and operation of the MRV system in Ukraine.

Article 6. Authority of the Cabinet of Ministers of Ukraine in monitoring, reporting and verification of greenhouse gases emissions The Cabinet of Ministers of Ukraine shall coordinate formation and implementation of state policy in monitoring, reporting and verification of greenhouse gas emissions.

Cabinet of Ministers of Ukraine: 1. procedure for state recording of the installations emitting greenhouse gases; 2. procedure of monitoring, reporting and verification of greenhouse gases emissions; 3. procedure of state control over monitoring, reporting and verification of greenhouse gases emissions.

Article 8. Authority of the central body of executive power implementing state policy in the field of climate change and secures compliance with the UN Framework Convention on Climate Change and the applicable Kyoto Protocol in the field of monitoring, reporting and verification of greenhouse gases emissions The central body of executive power which implements state policy in the field of climate change and secures compliance with the UN Framework Convention on Climate Change and the applicable Kyoto Protocol (further referred to as the National Coordinating Authority - NCA) in the field of monitoring, reporting and verification of greenhouse gases emissions: shall make proposals in manner prescribed by law in regard to: 1. state recording of installations; 2. implementing monitoring and reporting of greenhouse gases emissions; 3. procedure of the monitoring report verification by the independent expert organization; 4. state control over compliance with the Law in monitoring, reporting and verification of greenhouse gases emissions; 5. requirements for the monitoring plan; 6. requirements for monitoring and the verification report; 7. methodologies for measurements or calculations of greenhouse gases emission by installations; shall implement: 1. state recording of installations; 2. review and registration of the monitoring report and verification report; 3. based on assessment of conformity, shall appoint independent expert organizations for reviewing monitoring plans and verifying reports on monitoring; 4. shall create and ensure operation of the electronic database of greenhouse gases information provided by installation operators based on monitoring results; 5. shall approve the monitoring plan.

Article 9 of the Law Draft defines organization and implementation of monitoring, reporting and verification of greenhouse gases emissions, namely:

32

The monitoring shall be executed by installation operator according to the monitoring plan approved by the central body of executive power which implements State Policy in the field of climate change and secures compliance with the UN Framework Convention on Climate Change and the applicable Kyoto Protocol.

Based on the monitoring results, the installation operator shall prepare the monitoring report in compliance with the plan of monitoring.

The monitoring report is subject to mandatory verification by the independent expert organization.

The operator shall submit the verified monitoring report and the verification report for approval by the central body of executive power implementing state policy in the field of climate change and securing compliance with the UN Framework Convention on Climate Change and the applicable Kyoto Protocol each year, but not later than March 31 of the year following the reporting.

Thus, the draft law of Ukraine “On measures for organizing and implementing monitoring, reporting and verification of greenhouse gases emissions� establishes the general measures for implementation of the MRV system in Ukraine.

The authority of the central bodies of executive power in implementation and operation of the MRV system in Ukraine is described in the flow diagram in Figure 1, whilst the flow diagram of the MRV system proposed in this draft law is presented in Figure 2 below:

33

Figure 2 Flow diagram of authority of the central bodies of executive power in implementation and operation of the MRV system in Ukraine

34

Figure 3 Flow diagram of the MRV system operation Thus, as it has been stated before, the first SEIA developed draft of the Law of Ukraine “On certain matters for organizing and implementing monitoring, reporting and verification of greenhouse gases emissions� has a framework nature and establishes the general principles and algorithm of the MRV system implementation. Development, approval and provision for adoption of a number of by-laws for implementing said draft law.

It should be pointed out that the draft law does not provide for independent verification of the monitoring plan developed by the installation operator. This requires from SEIA significant financial, technical and institutional expenditures for approval of the monitoring plan, particularly within the initial years of implementing the MRV system in Ukraine.

Judging from analysis of the leading international practice in implementing administrative, fiscal and market instruments of state policy in regulating negative anthropogenic effect on climate, creating and providing functioning of the MRV system for GHG emissions is necessary, which requires proper legal regulation even today.

35

7 CORRESPONDING CHANGES, IMPROVEMENTS, AND FURTHER ACTIONS REQUIRED FOR ELABORATION AND PLANNING OF LOW CARBON DEVELOPMENT POLICY The draft law of Ukraine “On measures for organizing and implementing monitoring, reporting and verification of greenhouse gases emissions” only establishes the general (framework) measures for implementation of the MRV system in Ukraine. Thus the main task of the regulatory documents proposed in this section is to define the scope of the object of regulation - monitoring, reporting, and verification of GHG emissions for installations, as well as defining main rules and procedures for such regulations.

The list of recommended regulatory documents for introduction of MRV system for GHG emissions in Ukraine is presented below.

1.

Law of Ukraine “On measures for organizing and implementing monitoring, reporting and verification of greenhouse gas emissions”.

Purpose of the Law: to introduce a MRV system for installations where GHG emissions take place.

2.

Procedure of monitoring, reporting and verification of greenhouse gases emissions

Target: to establish requirements and procedures at installation level for developing monitoring plan, preparing reports on monitoring GHG emissions, and verification by an independent expert organization of reports on GHG emissions monitoring. To envisage simplified requirements to monitoring plan, report on monitoring and a simplified procedure of monitoring reports verification for installations with low GHG emissions.

3.

Procedure of accreditation of independent expert organizations which perform verification of reports on monitoring of GHG emissions

Target: to establish requirements for independent expert organizations and procedure of their accreditation to perform verification of reports on GHG emissions monitoring at installations.

4.

Procedure for state recording of the installations emitting GHG

Target: to establish requirements and procedures for state recording of installations included in the MRV system in Ukraine.

5.

Procedure of state control over monitoring, reporting and verification of GHG emissions

Target: to establish procedure of state control over monitoring, reporting and verification of GHG emissions at installations.

To provide for reliable, successful and transparent functioning of the MRV system in Ukraine, it is recommended that the following additional regulatory documents are developed and approved: 1.

Methodology for definition of GHG emissions (according to types of activities included in the MRV system);

2.

Monitoring plan template (preferably with examples according to activity types), a template for simplified monitoring plan for installations with insignificant GHG emissions;

3.

Template of report on GHG emission monitoring, template of simplified monitoring report for installations with insignificant GHG emissions;

The above list of regulatory documents shall be adjusted in conformity with the requirements that will be incorporated in the approved “Procedure for monitoring, reporting, and verification of greenhouse gas emissions”, and other corresponding documents regarding functioning of the MRV system in Ukraine.

As in the initial pilot phase of MRV system operation in the Ukraine, such activity will be new for all participants in the MRV system, it will require significant technical, institutional, financial and other expenditures both on part of the monitoring report verifiers, and on part of the National Coordinating Authority (NCA). That is why it is very important 36

to develop guidance documents that will assist the installations operators in developing monitoring plans, carrying out monitoring and developing monitoring reports and in undergoing verification of monitoring reports.

Preliminary list of such guidance documents is provided below.

1.

Example of standard procedure for organizing monitoring at installation level.

2.

General guidelines in GHG emissions monitoring and reporting.

3.

Guidelines in interpretation of installations’ activity types.

4.

Guidelines for lab testing frequency.

5.

Guidelines for sampling and samples testing.

6.

Guidelines for data management and data control system.

7.

Guidelines for estimation of uncertainty.

8.

Guidelines for utilization of biomass.

The above list of documents shall be adjusted in compliance with the latest requirements of the MRV system in Ukraine.

8 RECOMMENDATIONS FOR IDENTIFICATION AND SELECTION OF ACTIVITY TYPES, AND LIST OF GREENHOUSE GASES TO BE COVERED BY THE MRV SYSTEM 8.1 RECOMMENDATION FOR MINIMUM VALUES OF YEARLY GHG EMISSIONS OF AN INSTALLATION FOR INCLUSION TO MRV SYSTEM IN UKRAINE Most of MRV systems reviewed in the previous section establish the lower limit of GHG emissions at level of 25 thousand tons СО2 per year.

We propose to also use the lower limit of GHG emissions at an installation of 25 thousand tons СО2 per year in Ukraine.

Thus, it is proposed to include in the MRV system installations for activity type - stationary combustion of fossil fuels, that burn per year more than: 

13 million m of natural gas, or



12 thousand tons of coal, or



8 thousand tons of furnace oil.

3

8.2 RECOMMENDATION FOR LIST OF GHG AND ACTIVITY TYPES FOR INCLUSION OF INSTALLATIONS INTO MRV SYSTEM IN UKRAINE This section presents the principal approach to selection of GHG and activities for the pilot phase of MRV introduction in Ukraine.

It is reasonable to start introduction of MRV in Ukraine from a pilot phase with limited coverage of both greenhouse gases and activity types, which will involve a relatively small number of activities for which a simple, transparent and reliable monitoring system can be created with significant contribution into the overall volume of GHG emissions. It will allow the introduction of a small MVR system, generate experience, expose all inefficiencies of data collection and 37

reporting, and test all the system's elements at relatively low cost in terms of time and financial resources. In phase two, using the experience generated, it may be possible to increase the MRV system’s coverage of activities with mandatory consideration of the simplicity and reliability of monitoring possibility for the newly introduced activity types.

Analysis of GHG emissions in breakdown by activities (categories of GHG emission sources) has been carried out based on results of the National GHG emissions inventory in Ukraine for 2011 [14].

Table 7 below shows list of the key categories based on GHG emission level and their input in the total GHG emission in Ukraine in 2011.

38

Table 7. List of key categories based on GHG emission level in 2011. ([14] Table П1.7.)

Emissions in 2011, IPCC categories

Greenhouse Gas

thousand tons of СО2-equivalent

1.А.1, 1.A.2, 1.A.4, 1.A.5 Stationary Combustion

Percentage of total emissions in 2011

CO2

123,500.65

31.0%

CO2

93,351.73

23.0%

1.A.3.b Road transport

CO2

30,620.91

8.0%

2.C.1 Cast Iron and Steel Production

CO2

23,716.70

6.0%

4.D.1 Direct emissions from agricultural soil

N2O

22,066.17

6.0%

1.B.1.a Coal production and handling

CH4

21,565.38

5.0%

1.B.2.b Natural Gas

CH4

19,557.00

5.0%

4.A Intestinal fermentation

CH4

8,761.94

2.0%

CO2

7,166.06

2.0%

CO2

6,755.92

2.0%

CH4

5,768.13

1.0%

1.A.3.e. Other types of transport

CO2

4,856.18

1.0%

2.А.3 Utilization of limestone an dolomite

CO2

4,018.70

1.0%

2.А.1 Cement production

CO2

3,839.93

1.0%

2.В.2 Nitric acid production

N2O

3,231.26

1.0%

4.В Manure disposal, storage and utilization

N2O

3,108.75

1.0%

of solid fuel 1.А.1, 1.A.2, 1.A.4, 1.A.5 Stationary combustion of gas fuels

1.А.1, 1.A.2, 1.A.4, 1.A.5 Stationary liquid fuel combustion 2.B.1 Ammonia production 6.А.2 Uncontrolled residential solid waste landfills

For the pilot phase of the MRV system introduction in Ukraine, it is recommended to introduce monitoring and reporting of CO2 emissions from all key emission sources, except transport (considering the difficulty in implementing a monitoring and reporting system for this activity) and include N 2O emissions produced by nitric acid production.

The following GHGs are not proposed for inclusion to the pilot phase of MRV system introduction in Ukraine: СН 4, HFC, PFC, SF6 due to complication and rising cost of its implementation, as well as significant costs of its setup and full startup.

Analysis of GHG emissions from industrial processes (table below, CRF - Table 2 (I) S1) shows that in Ukraine, significant СО2 emissions are generated by two other activities (over 2 mil. tone per year), that were not included in the list of the key sources of GHG emission, namely, limestone production and ferroalloys production. These types of activity are proposed for inclusion into MRV system at the pilot stage of its implementation.

Table 8. GHG emissions from industrial processes in Ukraine in 2011 CO2 GHG and IPCC Categories

CH4

N2O

(thousand tons)

Total Industrial Processes

43,788.79

37.27

11.25

A. Minerals production

10,982.80

-

39

1. Cement production

3,839.93

2. Limestone production

2,804.46

3. Utilization of limestone and dolomite

4,018.70

4. Soda ash production

166.43

7. Other

153.28

-

-

Glass production

153.28

-

-

B. Chemical Industry

6,824.69

11.28

11.25

1. Production of ammonia

6,755.92

-

-

2. Production of nitric acid 3. Production of adipic acid 4. Production of carbide 5. Other

10.42 68.76

0.33

-

10.95

Technical carbon Olefiant gas

-

0.19

-

0.32 -

9.80

C. Metallurgical Industry

25,981.30

25.99

1. Production of Gray Iron and Steel

23,716.70

25.99

2. Production of ferroalloys

-

0.65

Methanol Coke

0.82

2,264.60

Also, as N2O emissions caused by production of nitric acid are proposed for inclusion in the MRV system implementation, there are good reasons to additionally include N 2O emissions caused by adipic acid production, because additional cost of methodological support and monitoring will not be high due to similarity with the methodology related to nitric acid production.

Thus, the table below presents recommended list of IPCC categories to be used in formation of the list of activities for the pilot phase of MRV introduction in Ukraine.

40

Table 9. Recommended list of IPCC categories for the pilot phase of MRV introduction in Ukraine №

Emissions in 2011, IPCC Categories

Greenhouse Gas

thousand tons of СО2-equivalent

Stationary Combustion of fuels

1.

1.А.1, 1.A.2, 1.A.4, 1.A.5 Stationary combustion of solid fuels 1.А.1, 1.A.2, 1.A.4, 1.A.5 Stationary combustion of liquid fuel 1.А.1, 1.A.2, 1.A.4, 1.A.5 Stationary combustion of gas fuel

CO2

224,018

2.

2.C.1 Cast Iron and Steel Production

CO2

23,717

3.

2.B.1 Ammonia production

CO2

6,756

4.

2.А.3 Utilization of limestone and dolomite

CO2

4,019

5.

2.А.1 Cement production

CO2

3,840

6.

2.В.2 Nitric acid production

N2O

3,231

7.

2.B.3 Production of adipic acid

N2O

254

8.

2.A.2 Production of lime

CO2

2,804

9.

2.C.2 Production of ferroalloys

CO2

2,265

Total 2011 emissions for the recommended list of IPCC categories for the pilot phase of MRV introduction in Ukraine amount to 271 thousand tons of СО2-equivalent , which makes 68.7% of the total GHG emissions. Such coverage of GHG sources by MRV system in Ukraine is significant and representative.

Harmonization of IPCC categories and activities for inclusion in the MRV system in Ukraine All IPCC categories recommended for inclusion in the pilot phase of the MRV system in Ukraine can be used for titles of installations activities in MRV system except category 2.А.3 Utilization of limestone and dolomite.

According to IPCC-2006 [7], Volume 3: Industrial processes and product use, Chapter 2.1: It is good practice to allocate emissions from the use of limestone, dolomite and other carbonates to the industrial source category where they are emitted (e.g., iron and steel production).

Therefore CO2 emissions in IPCC Category 2.А.3 Utilization of limestone and dolomite at the installation level will be recorded in all activities where utilization of limestone and dolomite takes place. In other words, “Utilization of limestone and dolomite” is not a separate activity, but is a separate “fuel, raw stock - product” flow for which the emissions are assessed for the installation if such flow takes place. Below is example of activity types (processes) where utilization of limestone and dolomite takes place: 

Production of gray iron and steel.



Production of cement.



Production of lime.



Production of glass.

41

Production of metallurgical coke Pursuant to [14], table П.5.1 presents detailed information about categories, for which GHG inventory was not carried out in Ukraine. The reason for not including to СО2 emissions register for category “2.С.1.4. Production of coke” is stated as: IPCC Methodology unavailable.

According to Chapter 4.2 Iron & steel and metallurgical coke production (IPCC Guidelines for National Greenhouse Gas Inventories, 2006, Volume 3: Industrial Processes and Product Use): The production of iron and steel leads to emissions of carbon dioxide (CO2), methane (CH4) and nitrogen oxide (N2O).

The iron and steel industry broadly consists of:  primary facilities that produce both iron and steel; 

secondary steelmaking facilities;



iron production facilities and;



offsite production of metallurgical coke.

Therefore, if the accounting of СО2 emissions during metallurgical coke production is included in the methodology for activity “Production of iron and steel”, then the MRV system will not provide coverage for off-site production of metallurgical coke.

According to [20] Chapter 4: Metal Industry Emissions TABLE 4.1 TIER 1DEFAULT CO2 EMISSION FACTORS FOR COKE PRODUCTION AND IRON &STEEL PRODUCTION, the Coke Ovens emission factors are given, equaling 0.56 tons CO2 per ton of coke produced.

Reference: in Ukraine, metallurgical coke is produced by 12 large-scale coking plants. According to the State Statistical Service, in 2011, Ukrainian coking plants produced 19.6 million tons of coke, which is 1 mil tons more than in 2010.

Therefore, the preliminary assessment of СО 2 emissions at Ukrainian coking plants in 2011 amounts to approximately 11 million tons СО2.

Thereby, activity type Production of metallurgical coke is recommended for inclusion to the pilot phase of MRV implementation in the Ukraine.

List of IPCC categories / activity types for additional analysis In order to reduce the cost of introducing MRV system in Ukraine, it is reasonable to include for reporting other GHGs and IPCC categories/ activities after a respective analysis of these activities with consideration for the experience gained by MRV system’s operation throughput the pilot phase has been performed. Their input into the total GHG emissions in Ukraine will have to be evaluated while including these emissions forecast, cost of inclusion in MRV system, accessibility and reliability of the required data at the installation level, as well as difficulty in implementing the monitoring methodology.

Emissions connected with effluents First of all, additional analysis should be provided for the sector “Emissions due to effluents”, which in Ukraine amounted to 41.6 million tons of СО2-equivalent in 2011.

Table 10. Emissions in category “Emissions connected with effluents” ([14] Table 3.16) 2011 IPCC Categories

million tons of СО2equivalent

Emissions connected with effluents

41.6

1.B.1 Solid fuels

20.1

1.B.2 Oil and Natural Gas

21.5

42

The main source of effluents in category 1.В.1 “Solid Fuels” are methane emissions that take place during coal production in underground coal mines, they amount on average to 88-90% of the GHG in this category for period 1990-2011.

Transport The table below presents СО2 emissions in transport sphere in 2011. The largest input to GHG emissions is made by road transport emissions – 84.5%.

Table 11. GHG emissions in “Transport” category ([14] table 3.10) 2011 IPCC Categories

million tons of СО2equivalent

1.А.3 Total transport 1.A.3.a Civil Aviation 1.A.3.b Road transport 1.A.3.c Rail transport 1.A.3.d Sea and river transport 1.A.3.e Other transportation, including 1.A.3.e.i Pipeline transport

36.7 0.2 31.0 0.5 0.1 4.9 4.9

Waste The table below shows GHG emissions from waste in 2011. According to [1], 10-12 million tons of solid residential waste (SRW) is placed in 6000 landfills existing in Ukraine per year.

Table 12. GHG emissions in Waste sector in Ukraine in 2011, thousand tons ([14] CRF, Table6) IPCC Categories 4 Waste, total 4 A. Disposal of solid waste 1. Controlled solid waste landfills 2. Uncontrolled solid waste landfills

CO2

CH4 473.03

-

346.83

-

72.16

NA

274.67

B. Wastewater discharge and treatment 1. Treatment and discharge of household wastewater 2. Treatment and discharge of industrial wastewater C. Waste combustion

N2O

0.48

3.59

126.19

3.59

40.53

0.26

85.67

3.33

-

0.00

0.48

The tables below provide information for activities that were not recommended for inclusion in the pilot phase of introduction of MRV system in Ukraine, for which the emission volumes are relatively low or nonexistent.

Table 13. GHG emission categories with relatively low emissions in percentage to the total GHG emissions in Ukraine 2011 IPCC Categories

thousand tons of СО2equivalent 43

2.А.4 Production and use of sodium bicarbonate

166.43

2.А.7 Production of glass.

153.28

2.В.4 Production and use of carbide

68.764

2.D.2 Production of foods and beverages

Direct action GHGs are not emitted

The table below presents sources with no GHG emissions in Ukraine in 2011 Table 14. GHG emission sources with no emissions in Ukraine in 2011 IPCC Categories 2.С.3 Production of aluminium

Comment According to the only producer of aluminium in Ukraine, in 2010, aluminium production was suspended

2.С.4 Use of SF6 in aluminium and magnesium

According to the Ministry of Industry Policy of Ukraine, sulphur

casting

hexafluoride is not used in aluminium and magnesium production in Ukraine

2.D.1 Production of pulp and paper

Since 2010 production of pulp is non-existent in Ukraine.

During production of paper, direct action GHGs are not emitted

2.E Production of perfluorocarbons,

HFCs, PCFs and SF6 are not produced in Ukraine

hydrofluorocarbons and SF6 2.E Use of perfluorocarbons, hydrofluorocarbons

HFCs, PCFs and SF6 are not produced in Ukraine

and SF6

Emissions are insignificant, less than 1% of total industry emissions

Conclusions For the pilot phase of MRV operation in Ukraine, it is recommended to include: Installations coverage with MRV system It proposed to establish the lower threshold for installations included in the MRV system in the amount of 25 thousand tons СО2 equivalent per year.

GHG coverage by MRV system СО2 and N2O emissions from nitric and adipic acid production are recommended for inclusion in the MRV system during the pilot phase.

MRV system coverage of activity types Nine (9) types of activity are proposed for inclusion into MRV system at the pilot stage of its implementation, namely: 1.

Stationary Combustion of Fuels

2.

Production of Iron and Steel

3.

Production of Ferroalloy

4.

Metallurgical Coke (off-site metallurgical coke production)

5.

Production of Cement

6.

Production of Ammonia

7.

Production of Limestone 44

8.

Production of Nitric Acid

9.

Production of Adipic Acid

9 DRAFT REPORTING DATA STRUCTURE AT THE INSTALLATION LEVEL Generally, the reporting data structure at the installations level according to the MRV system proposed in Ukraine depends on the monitoring methodology selected for participation in the MRV system and on other requirements to monitoring and reporting that are to be developed and approved.

The selection on monitoring methodology by operator will require approval of the National Coordinating Authority as a part of the monitoring plan approval.

9.1 POSSIBLE MONITORING METHODOLOGIES It should be noted, that use of the following monitoring methodologies is possible: 1.

calculation-based methodology:  

standard methodology (characteristic for combustion of fuels and technological effluents); and mass balance methodology.

2.

continuous measurement methodology;

3.

monitoring methodology not based on data accuracy levels (alternative methodology);

4.

combination of the above methodologies.

Important: calculation-based methodologies also require measurements to be conducted. Here, measurements are usually applied to such parameters as consumption of fuel or raw stock at the installation input, while continuous measurement methodology always includes immediate measurement of greenhouse gases.

When using calculation-based methodology, the operator shall determine, in terms of monitoring, which methodology (the standard or mass balance methodology) will be used, considering selection of the appropriate data accuracy level in conformity with the MRV system requirements.

9.2 EMISSIONS CALCULATION USING STANDARD METHODOLOGY According to the standard methodology, the operator must calculate combustion emissions for each flow “fuel, raw stock - product” by multiplying data about activity connected with quantity of fuel burnt by the corresponding emission factor expressed in CO2 tonnage per terajoule (t СО2/TJ), by fuel NCV and by oxidation factor.

If the emission factor for level 1 or 2 already includes the effect of chemical reaction incompleteness, the oxidation 6

factor should equal 1 .

6

The default emission factors according to IPCC Guidelines-2006 include the incomplete chemical reaction factor 45

Figure 1. Standard Methodology Schematic

9.3 EMISSIONS COMPUTATION ACCORDING TO MASS BALANCE METHODOLOGY The mass balance methodology, like the standard methodology, is a methodology based on computation of GHG emissions from installations. The standard methodology is simple for use in those cases when fuel or raw stock or product is directly related to GHG emissions. But in such cases as metallurgical plants with full production cycle and chemical industry processes, often, it is difficult to directly relate effluents with a separate raw material at the installation input because the product and waste contain significant amount of carbon (e.g. bulk organic matter, soot, etc.). Thus, computing the volume of carbon released in air through oxidation factor or emission factor is not enough.

Instead, full carbon balance at input and output is utilized.

Figure 2. Mass Balance Methodology Schematic

46

9.4 MEASUREMENT-BASED METHODOLOGY In contrast to methodology based on GHG emissions calculation, for the methodology based on continuous measurement of gases released by the installation, GHG emissions themselves are the measurement object. It is difficult in installations with numerous emission points (chimneys) or impossible where effluents must be taken into account. On the other hand, the advantage of continuous measurement methodology lies in the independence from the quantity of different types of fuels and raw material utilized (for example, where many different fuels are burnt), and their independence from the stoichiometric relations (that is why N2O should be controlled on a continuous monitoring basis).

Figure 3. Continuous Measurement Methodology Schematic

9.5 COMBINATION OF METHODOLOGIES Operator may combine different methodologies above, provided that there are no data gaps and no double computation takes place. If the proposed approach results in similar level of data accuracy, the operator may use other criteria for selection of the methodology such as: Đ°) which methodology provides more reliable results, meaning where more reliable measurement instruments are used, or less measurements are required, etc. Đą) which method has lower inherent risk, i.e. which methodology allows to easier control the other data source; where are there less possibilities for an error or an omission

9.6 REPORTING DATA STRUCTURE FOR INSTALLATIONS The following sections provide data structures examples required for determining GHG emissions under the standard methodology at the level of installations for activities recommended for inclusion to the pilot phase of the MRV system implementation in Ukraine.

Structure of reporting data for installations which choose the mass balance monitoring methodology, data structure for computing CO2 emissions depends on the specific technologies incorporated within the installation, on raw material and fuel utilized in the processes, as well as the final product.

2006 IPCC Guidelines for National Greenhouse Gas Inventories are used as the basis for determining GHG emissions at the installations level.

The final data structure may be determined after approval of the monitoring methodologies according to activities for installations to be included in the MRV system in Ukraine.

The reporting data structure for all activities shall include contact information and the installation production data for the reporting period. Example data structure is presented in the following tables.

Title and legal address 47

Operator title Installation description Business Registration Code State Classifier of Business Activities (KVED) Address Phone Fax Email Address Reporting year Production of major products for the reporting year No

Product description

Measurement units

Values

48

9.6.1 Stationary Combustion of Fuels - standard methodology Table 14: Data structure for calculation of CO2 for activity: stationary combustion of fossil fuel No 1.

Parameter Use of i - type fuel

2.

Net Calorific Value of i - type fuel

3.

СО2 emissions factor for i - type fuel

4.

Oxidation factor for i - type fuel

Measurement units

Values

3

t/per year or m /year kcal/kg or kcal/m

3

tons СО2/gJ %

Brief description of sources of values “Net Calorific Value of i - type fuel”, “СО2 emissions factor for i - type fuel (carbon content)”, “Oxidation factor for i - type fuel”.

(Laboratory analysis, fuel supplier certificate data, measurement instruments, national inventory, etc.)

Level 2 envisages using country-specific computational factors (national level).

Level 3 envisages using installation-specific computational factors (company level).

9.6.2 Activity- production of iron and steel The operator shall include at least the following СО2 emission sources: raw material (burning-out of limestone, dolomite, and carbonate iron ores including FеCO 3), traditional fuel types (natural gas, coal and coke), reducing agents (including coke, coal and plastics), process gases (coke gas, furnace gas and gas produced in oxygen converters), graphite electrodes consumption, other types of fuel and released gases.

For monitoring emissions produced by iron and steel production, the operator may use mass balance or standard methodology, avoiding incomplete data recording or dual accounting of emissions.

Table 15: Data structure for calculation of CO2 emitted by iron and steel production No 1.

Parameter volume of coke used for production of iron and steel (not accounting sinter)

2.

content of carbon in coke used for production of iron and steel (not accounting sinter)

3.

volume or by-product and coke production used in blast furnaces

4.

carbon content in by-product of coke production used in blast furnaces

5.

volume of coke gas used in blast furnaces

6.

carbon content in coke gas used in blast furnaces

7.

volume of coal directly used in blast furnaces

8.

carbon content in coal directly used in blast furnaces

9.

volume of limestone used in production of iron and steel

10.

carbon content in limestone used in production of iron and

Measurement units

Values

tons tons C/ton of coke tons tons C/ton of product tons tons C/ton of coke gas

steel

tons tons C/ton of coal tons tons C/ton of limestone 49

11.

volume of dolomite used in production of iron and steel

12.

carbon content in dolomite used in production of iron and steel

tons tons C/ton of dolomite

13.

quantity of carbon electrodes used in electric arc furnaces

tons

14.

quantity of carbon electrodes used in electric arc furnaces

tons C/electrode

15.

volume of other carbonaceous product j utilized for production of iron and steel

16.

volume of other carbonaceous product j utilized for production of iron and steel

17.

volume of chamber kiln gas used in blast furnace during production of iron and steel

tons tons C/ton of product 3

m (GJ)

18.

volume of iron and steel production

19.

carbon content in steel

20.

volume of iron not converted into steel

21.

carbon content in iron not converted into steel

tons C/ton of iron

22.

volume of blast-furnace gas transferred off-site

tons

23.

carbon content in blast-furnace gas transferred off-site

tons tons C/ton of steel tons

tons C/ton of blastfurnace gas

24.

volume of carbon accumulation (charge or x products)

tons C/ton

Brief description of sources of the above parameters (Laboratory analysis, fuel supplier/ raw material supplier certificate data,, measurement instruments, etc.)

Table 16: Data structure for calculation of CO2 from direct reduced iron production based on fuel consumption and the carbon content of fuels No 1.

Parameter volume of coke breeze purchased or produced on-site

2.

carbon content in the coke breeze purchased or produced on-site

3.

volume of coke gas consumed during blast furnace production of sinter

4.

carbon content in coke gas consumed during blast furnace production of sinter

5.

volume or by-product and coke and sinter production consumed in blast furnaces

6.

carbon content in by-product of coke and sinter production

Measurement units

Values

tons tons C/ton of coke breeze tons tons C/ton of coke gas tons tons C/ton of

consumed in blast furnaces

product

7.

volume of blast furnace gas consumed for sinter production

m (GJ)

8.

volume of blast-furnace gas transferred off-site

9.

carbon content in blast-furnace gas transferred off-site

3

tons tons C/ton of blastfurnace gas

10.

volume of sinter gas transferred off-site

11.

carbon content in sinter gas transferred off-site

tons tons C/ton sinter gas

12.

volume of carbon accumulation (in charge or x products)

tons C/ton 50

Brief description of sources of the above parameter values (Laboratory analysis, fuel supplier/ raw material supplier certificate data,, measurement instruments, etc.)

Table 17: Data structure for calculation of CO2 emissions from direct reduced iron production No 1.

Parameter

Measurement units

volume of natural gas used for direct reduced iron

GJ

production 2.

amount of coke breeze used for direct reduced iron

GJ

production 3.

amount of metallurgical coke used in direct reduced iron

GJ

production 4.

carbon content of metallurgical coke used in direct reduced iron production

5.

carbon content of coke breeze used for direct reduced iron production

6.

carbon content of metallurgical coke used for direct reduced iron production

Values

tons C/GJ tons C/GJ tons C/GJ

Brief description of sources of the above parameters (Laboratory analysis, fuel supplier/ raw material supplier certificate data,, measurement instruments, etc.)

Level 2 envisages using country-specific computational factors (national level).

Level 3 envisages using installation-specific computational factors (company level).

Table 18: Data structure for calculation of CO2 emissions from on-site coke production (metallurgical production) No 

Parameter amount of coking coal used for coke production



carbon content in coking coal



amount of i material (for example, natural gas or oil), coking coal used for coke production



carbon content in i material



volume of blast furnace gas consumed in blast furnaces



carbon content in blast furnace gas



amount of coke produced



carbon content in coke



amount of coke gas transferred off-site



carbon content in coke gas transferred off-site



amount of by-products j from coke ovens transferred offsite



carbon content in by-products j from coke ovens transferred off-site

Measurement units

Values

tons tons C/ton tons tons C/ton 3

m (GJ) tons C/ton tons tons C/ton tons tons C/ton tons tons C/ton

Brief description of sources of the above parameter values (Laboratory analysis, fuel supplier/ raw material supplier certificate data,, measurement instruments, etc.)

51

9.6.3 Activity type - production of metallurgical coke Table 19: Data structure for calculation of CO2 emissions from off-site coke production by other industries No 1.

Parameter amount of coking coal used for off-site coke production by other industries

2.

carbon content in coking coal used for off-site coke production

3.

amount of i material (for example, natural gas or oil), coking coal used for off-site coke production

4.

carbon content in i material used for off-site coke production

5.

amount of off-site produced coke

6.

carbon content in off-site produced coke

7.

amount of off-site produced coke gas that is transferred to other facilities

8.

carbon content in off-site produced coke gas that is transferred to other facilities

9.

amount of by-products j from off-site coke ovens transferred to other facilities

10.

carbon content in by-products j from off-site coke ovens transferred to other facilities

Measurement units

Values

tons tons C/ton tons tons C/ton tons tons C/ton tons tons C/ton tons tons C/ton

Brief description of sources of the above parameter values (Laboratory analysis, fuel supplier/ raw material supplier certificate data,, measurement instruments, etc.)

Level 2 Approach envisages using country-specific computational factors (national level).

Level 3 Approach envisages using installation-specific computational factors (company level).

9.6.4 Activity type - ferroalloy production Emissions of СО2 are calculated based on known factory activity data for specific reducing agents, exhaust gases and other process materials and products.

Table 20: Data structure for calculation of CO2 emissions from ferroalloy production No 1.

reducing agent weight i

Parameter

2.

carbon content in reducing agent i

Measurement units

Values

tons tons CO2/ton of reducing agent

3.

weight of ore і

4.

carbon content in ore i

5.

Mass of slag forming material і

6.

carbon content in slag forming material і

7.

mass of product i

8.

carbon content in product i

tons tons CO2/ton of ore tons tons CO2/ton of slag tons tons CO2/ton of product 52

9.

mass of by-product i

10.

carbon content in by-product i

tons tons CO2/ton of product

Brief description of sources of the above parameter values (Laboratory analysis, fuel supplier/ raw material supplier certificate data,, measurement instruments, etc.)

Level 2 Approach envisages using country-specific computational factors (national level).

Level 3 Approach envisages using installation-specific computational factors (company level).

9.6.5 Activity type - cement production Emissions of CO2 occur during clinker production which serves as auxiliary product in production of cement. The raw material for clinker production is limestone, a sedimentary rock mainly composed of calc-spar with admixes of argillaceous material, silica, iron oxides, and others. Calcite, or calc-spar - is a calcium mineral of carbonate class (CaCO3). In production of clinker, limestone, which is mainly calcium carbonate (CaCO3), is heated, (calcined) to produce lime (CaO) and CO2 as a by-product. The lime then reacts with silica, alumina, and iron oxide in the raw materials to make the clinker minerals, but these reactions are not accompanied by carbon dioxide emission.

Table 21: Data structure for calculation of CO2 emissions from cement production No 1.

Parameter amount of i type carbonate consumed

2.

amount of i type carbonate calcined

Measurement units

3. emissions factor for i type carbonate 4.

5.

weight of loss in cement dust part of carbonates within loss in cement dust

6. emissions factor from uncalcined carbonate 7.

part of calcined carbonate within loss

8. amount of k raw material containing organic carbon 9. emissions factor for kerogen from k raw materials 10.

part of organic carbon in k - raw materials

Values

tons fraction

*

tons CO2/ton of carbonate tons fraction

*

tons CO2/ton of carbonate fraction

*

***

tons

tons CO2/ton of carbonate fraction

***

* Calcination percentage: in the absence of actual data, it may be assumed that, at the temperatures and residence times achieved in cement (clinker) kilns, the degree of calcination achieved for all material incorporated in the clinker is 100% or very close to 100%. ** Because calcium carbonate is overwhelmingly the dominant carbonate in the raw materials, it may be assumed that it makes up 100% of the carbonate remaining in the CKD not recycled to the kiln. It is thus acceptable to set it as equal to the calcium carbonate ratio in the raw material feed to the kiln. *** The CO2 emissions from non-carbonate carbon (e.g., carbon in kerogen, carbon in fly ash) in the nonfuel raw materials can be ignored if the heat contribution from kerogen or other carbon is < 5% of total heat (from fuels).

Brief description of sources of the above parameter values (Laboratory analysis, fuel supplier/ raw material supplier certificate data,, measurement instruments, etc.)

53

Level 2 Approach envisages using country-specific computational factors (national level).

Level 3 Approach envisages using installation-specific computational factors (company level).

9.6.6 Activity type - ammonia production In Ukraine, the ammonia is produced from natural gas as raw material.

If СО2 in ammonia production is used as raw material for production of urea or other chemicals, or transferred off-site for some use, but not for transport with purpose of long-term geological storage, the corresponding amount of CO 2 emitted by the installation shall be calculated.

Table 22: Data structure for calculation of CO2 emissions from ammonia production No 1.

Parameter ammonia production using fuel type i in process type j

2.

fuel requirement per unit of output for fuel type i in process type j

3.

total fuel requirement for fuel type i

4.

carbon recovered for other production use (urea

Measurement units

Values

tons gJ/ton of ammonia GJ kg

production) 5.

carbon content factor of the fuel type i

kg C/GJ

6.

carbon oxidation factor for i - type fuel

fraction

Brief description of sources of the above parameter values (Laboratory analysis, fuel supplier/ raw material supplier certificate data,, measurement instruments, etc.)

Level 2 Approach envisages using country-specific computational factors (national level).

Level 3 Approach envisages using installation-specific computational factors (company level).

9.6.7 Activity type - lime production The approach to СО2 emission calculation is based on data about molecular weight and composition of all carbon containing raw materials, emission factors for each source of carbonates and the calcination percentage achieved.

Table 23: Data structure for calculation of CO2 emissions from lime production No 1.

Parameter

Measurement units

amount of i type carbonate consumed

tons

2.

emissions factor for i - type carbonate

tons CO2/ton of

Values

carbonate 3.

part of i type carbonate calcined

4.

weight of loss in dust

5.

part of carbonates within loss in dust

fraction

6.

part of calcined carbonate within loss

fraction

7.

emissions factor from uncalcined carbonate

fraction

*

tons *

tons CO2/ton of carbonate

* Calcination percentage: in the absence of actual data, it may be assumed that, the degree of calcination is 100% or very close to 100%.

Brief description of sources of the above parameters values (Laboratory analysis, fuel supplier/ raw material supplier certificate data, measurement instruments, etc.)

54

Level 2 Approach envisages using country-specific computational factors (national level).

Level 3 Approach envisages using installation-specific computational factors (company level).

9.6.8 Activity Type - Production of Nitric Acid During the production of nitric acid (HNO3), nitrous oxide (N2O) is generated as a by-product of the high temperature oxidation of ammonia (NH3). N2O is also generated in other industrial processes that use nitrogen oxides or nitric acid as feedstocks, e.g. the manufacture of caprolactam or glyoxal.

Table 24: Data structure for calculation of N2O emissions from nitric acid production No 1.

Parameter production of nitric acid for technology type i

2.

destruction factor for abatement technology type j

3.

abatement system utilization factor for abatement technology type j

Measurement units

Values

tons fraction fraction

Brief description of sources of the above parameters and values (Laboratory analysis, fuel supplier/ raw material supplier certificate data,, measurement instruments, etc.)

It should be noted that the requirements of the European Trading System envisage using only measurement methodology for nitrous oxide (N2O) emissions monitoring [8]: The operator shall execute monitoring of N2O emissions from nitric acid production employing continuous measurement of emissions. The operator shall monitor N 2O emissions from production of adipic acid, caprolactam or glyoxal and glyoxalic acid employing measurement of emissions that pass through abatement and the methodology based on computations (mass balance methodology) for temporary unabated emissions.

9.6.9 Activity type - production of adipic acid Adipic acid production which is a dibasic carboxylic acid is carried out in two stages. Upon that, nitrous oxide is a byproduct of oxidation of cyclohexane or cyclohexanol by nitric acid.

Table 25: Data structure for calculation of N2O emissions from adipic acid production No 1.

Parameter production of adipic acid for technology type i

2.

destruction factor for abatement technology type j

3.

abatement system utilization factor for abatement technology type j

Measurement units

Values

tons fraction fraction

Brief description of sources of the above parameter values (Laboratory analysis, fuel supplier/ raw material supplier certificate data,, measurement instruments, etc.)

55

10 PROPOSALS FOR THE MONITORING PLAN DRAFT TEMPLATE AND MONITORING REPORT TEMPLATE FOR INSTALLATIONS 10.1 DRAFT CONTENTS OF MONITORING PLAN GHG emissions monitoring plan should at least include the following: 1. General information about the installation:

a) Monitoring plan version number; b) Operator’s contact information and identification number; c) Description of installation subject to monitoring, and the activity carried out using the installation including list of emission sources and flows “fuel, raw materials - product” to be monitored, and satisfies the following criteria: 

the description should be sufficient to demonstrate absence of incomplete accounting or dual accounting of GHG emissions;



with purpose of simplifying the installation description, a simple diagram of emission sources and flows “fuel, raw materials - product”, sampling stations and measurement instruments, any other installation parts related to the monitoring methodology including systems of monitoring data management and control systems should be provided;

d) Description of procedure for management of the personnel duties distribution in the installation monitoring and reporting, advanced training for the personnel in charge, etc. ;

e) Description of the procedure for regular assessment of the monitoring plan covering at least the following: 

checking the list end ensuring completeness of emission sources and flows “fuel, raw materials - product”, and checking for all corresponding changes in the installation and its operation to be included in the monitoring plan;



assessment of compliance with the threshold values of uncertainty for the data on the installation operation and other parameters where possible for the employed data accuracy levels for each “fuel, raw materials - product” flow and emission source;



f) g)

assessment of the potential actions targeted at improving the monitoring methodology employed; Description of written procedures according to the data management system including clarification diagrams when applicable; Description of the written procedure for the control activity;

h) if applied, interconnection of the written procedure with respective procedures employed by the company in conformity with ISO 9001, ISO 14001, ISO 50001 standards.

2. Detailed description of the calculation-based methodology employed inclusive of:

a) Detailed description of the calculation-based methodology, list of input data and computation formulas utilized, list of data accuracy levels applied to output data, and all corresponding factors for each of the “fuel, raw materials - product” flows subject to monitoring;

b) When applicable, and when the operator intends to use simplifications for insignificant and minimum “fuel, raw materials - product” flows;

c) Description of the measurement systems employed and their measurement and uncertainty range, exact location of the measurement devices to be used for each of the “fuel, raw materials - product” flows subject to monitoring; 56

d) Where applicable, default values used for computation factors indicating the factor value source or the corresponding source that will be used to periodically determine the factor or each “fuel, raw materials product” flow;

e) Where applicable, list of sample analysis methods to be employed for determining all respective computation factors for each “fuel, raw materials - product” flow, as well as written description of the procedure for such analysis;

f) Where applicable, description of procedures in the plan for fuel and feedstock sampling with testing purpose; procedures employed for reviewing the sampling plan conformity;

g) Where applicable, list of laboratories involved in the corresponding tests, and if such lab is not certified, description of the procedure employed to demonstrate their conformity with the equivalent requirements; 3. In case of employing an alternative monitoring methodology, a detailed description of the methodology for all “fuel, raw materials - product” flows or emission sources, and description of the written procedure of the uncertainty analysis.

4. Detailed description of the continuous measurement methodology employed inclusive of the following:

a) Description of the measurement method including description of all corresponding procedures for measurement and: 

computational formulae for data aggregation and for determining the annual emissions or each emission source;



Method for substitution of unavailable data for each parameter;

b) List of all corresponding emission points during standard operation, and during restricted or transition phases excluding laying-offs or commissioning; the list shall be accompanied by a flow diagram if required by the competent authority;

c) If gases emitted are engaged in the computations, the written description of such computations for each emission source included in the monitoring under continuous measurement methodology;

d) List of all corresponding equipment with indication of the measurement frequency, operating range and uncertainty;

e) List of standards employed and any deviations from such standards; f) Description of the written procedure for carrying out confirmation calculations where it is employed;

10.2 DRAFT CONTENTS OF MONITORING REPORT The annual monitoring report for an installation shall contain the following information: 1. Operator’s contact information and identification number; 2. Contact information of the installation monitoring report verifier; 3. Reporting year; 4. Version number of the last approved monitoring plan for the installation; 5. Corresponding changes in the installation operation, as well as changes and temporary deviations in the monitoring plan that occurred within the reporting period, including temporary or constant changes in the data accuracy levels, reasons for such changes, dates of the start and the termination of such changes; 6. Information for all GHG emission sources and “fuel, raw materials - product” flows including:

a)

Total emissions amount, tons of CO2equivalent;

b)

continuous measurement methodology or calculations based methodology;

c)

data accuracy level applied; 57

d)

Data about activity: 

data provided for fuel: consumption volume (in tons or nm ) and net calorific value (GJ/t 3 or GJ/m );



for all other materials - in tons or nm ;

3

3

e)

emission factors, oxidation and recalculation factors;

f)

If mass balance methodology is utilized, the carbon consumption and contents for each flow “fuel, raw materials - product” into and out of the installation, when required, net calorific value

g)

If continuous measurement methodology is employed:

 average hourly concentrations of greenhouse gases, and gas emissions volumes per year; 7. In case of gaps occurred in data that were appended with replacement data:

a) flow “fuel, raw materials - product” or emission source; b) reasons for the absence of data; c) the starting and the ending data and time of each data gap situation; d) emissions volume computed based on replacement data; e) in case it has not yet been included in the monitoring plan, the evaluation method for the replacement data, detailed description of the evaluation method including proof that the methodology does not result in understatement of the emission volume for a certain time period; 12. Any other changes in the installation throughout the reporting period that impact the GG Emissions throughout the reporting year;

58

11 PROPOSALS FOR REPORTING OF GHG FROM SOURCES WHICH ARE NOT INCLUDED IN THE GHG MRV SYSTEM Analysis of the reporting of CO2 emissions based on data collected from â&#x20AC;&#x153;Form #2-tp (air) Report on air protectionâ&#x20AC;? showed that 80% of total annual emissions of CO2 from SSP are emitted by largest SSP, which is less than 1% of all SSP who had actual CO2 emissions in the reporting year. At the same time, about 300 SSP (or about 5% of SSP who had actual CO2 emissions in the reporting year) carry 95% of the actual CO 2 from SSP. Coverage with reporting (statistics) of 95% of total actual emissions of CO2 is an effective practice that on the one hand allows the capture of a significant amount of emissions, and on the other it allows the reduction of the overhead costs of economic agents (usually a large number of businesses that have few emissions of PS) and the reduction of government spending on report administration.

Figure 6 - Coverage by state statistical reporting of entities in terms of CO2 emissions Currently in the region of 11,000 facilities complete Form #2-tp (air) Report on air protection which is used for the determination of the payment of environmental taxes including a fee for the emissions of greenhouse gases. Whilst around 300 of these sources are responsible for 95% of the emissions, the remaining facilities will continue to report under the existing requirements of the Tax Code of Ukraine.

Elsewhere it has been proposed that these entities continue to report in on GHG emissions and that the tax on these emissions is linked to the cost of allowances under an ETS. This would result in increasing costs of emissions over time which in turn would focus attention on the MRV procedures associated with the tax. It is therefore proposed, in conjunction with the increase in tax level, that entities are increasingly exposed to strengthened MRV procedures which will include some of the key provisions of the MRV system, including prescribed measuring and calculation procedures, reporting templates and less onerous verification procedures.

Proposals for these procedures are not elaborated in this report but it is proposed that they would draw heavily on the MRV system.

59

SECTION 3: MRV AND ALLOCATION IN AN EMISSIONS TRADING SCHEME

60

12 PROPOSALS FOR PILOT PHASE OF MRV 12.1 BASIC REQUIREMENTS FOR THE MRV SYSTEM In order to promote trust and create a level playing field for the reporting of emissions from selected installations, monitoring systems should deliver results which are comparable (between installations), complete (including all relevant GHG), consistent (enabling comparison from year to year), accurate (free from bias) and transparent (such that a verifier or other third party can re-construct the emissions report from available data).

The respective documents governing operation of Phase Three of the European Union Emission Trade System (EU ETS), the largest GHG emissions trading system worldwide with the longest experience of its operation, are proposed to be used as basis for development of the MRV system requirements.

Conclusion of the Association Agreement between Ukraine and the EU was planned for the end of November, 2013.

7

Within 2 years after the Agreement becoming effective, Ukraine shall execute the following actions :  adoption of national legislation and designation of competent authority/ies;  establishment of a system for identifying relevant installations and for identifying greenhouse gases (Annexes I and II);  development of a national allocation plan to distribute allowances to installations (art. 9);  establishment of a system for issuing greenhouse gas emissions permits and issuance of allowances to be traded domestically among installations in Ukraine (art. 4 and 11 - 13);  – establishment of monitoring, reporting, verification and enforcement systems and public consultations procedures (art. 9, 14 – 17, 19 and 21); Below is the list of the basic regulatory documents which incorporate experience of the phase one and phase two of EU ETS implementation: 

DIRECTIVE 2003/87/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 13 October 2003.

Establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC.



COMMISSION REGULATION (EU) No 601/2012 of 21 June 2012 on the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC of the European Parliament and of the Council



COMMISSION REGULATION (EU) No 600/2012 on the verification of greenhouse gas emission reports and tonne-kilometre reports and the accreditation of verifiers pursuant to Directive 2003/87/EC of the European Parliament and of the Council

12.2 KEY TERMS AND DEFINITIONS Below are examples of the key terms utilized within MRV system for description of an installation and the methodology for calculation of greenhouse gases (GHG) emissions.  installation – a stationary workshop, assembly or any other object of economic activity whose functioning causes greenhouse gases emissions.  installation operator – legal entity or individual entrepreneur that owns or legally operates a given installation in the territory of Ukraine;  emission source - separately identified parts of an installation or a process within an installation, from where GHGs are emitted.  flow “fuel, raw materials - product” means one of the listed below:

7

http://www.kmu.gov.ua/docs/Agreement/Annex_XXVI_to_XLIII_to_Agreement.pdf

61

o

  

a specific type of fuel, raw stock or product, during consumption or production of which GHGs are emitted in one or several emission sources; o a specific type of fuel, raw stock or product that contains carbon and is included in the calculation of GHG emissions with using mass balance methodology. measurement point means an emission source to which a monitoring system is applied. Therefore, it is a point where continuous monitoring system tolls are installed.

GHG emission point - is a place (within an installation), where GHG is physically emitted into the air. computation factors – factors used for GHG emissions computation such as net calorific value (NCV) of fuel, GHG emission factor, oxidization factor, reduction factor, carbon content or biomass fraction.

12.3 RECOMMENDATIONS FOR THE APPLICATION OF THE MRV SYSTEM IN AN ETS PILOT 12.3.1 Scope of activity categories with MRV system, for GHG list and GHG emission limit values For the pilot phase of MRV operation in Ukraine, it is recommended to include the following activity categories, GHG listing and GHG emission limit values.

Installations coverage with MRV system It proposed to establish the lower threshold of GHG emissions for installations as the amount of 25 thousand tons СО2 equivalent per year for installations included in the MRV system.

GHG coverage by MRV system The following GHG emissions are recommended for inclusion in the MRV system during the pilot phase: 

СО2 from stationary combustion and industrial processes.



N2O from nitric and adipic acid production.

MRV system coverage of activity types For the pilot phase of MRV operation in Ukraine, it is recommended to include nine types of activities which produce direct GHG emissions at installations, namely: Table 26. List of activities proposed No. Activities 1.

2.

3.

4.

5.

6.

stationary Combustion of Fuels production of Iron and Steel production of ferroalloys metallurgical Coke (off-site metallurgical coke production) cement production production of ammonia 62

7.

8.

9.

limestone production production of nitric acid production of adipic acid

For the purpose of easing the MRV system functioning during the pilot phase and reducing its implementation and support costs, introduction of simplified requirements to installations with insignificant emissions, and relatively simple GHG emission methodologies are proposed.

Primarily, it is related to numerous utility boiler houses which mainly utilize natural gas as fuel. The methodology of GHG emissions calculation for â&#x20AC;&#x153;Stationary Combustion of Fuelsâ&#x20AC;? activity is rather simple and will not produce any difficulties in utilization for the installation operators. Data about boiler-house activity is fuel consumption. In their current practice, operators maintain fuel consumption accounting according to national and industry standards and regulatory documents. That is why, for obtaining these data during GHG emissions monitoring, the operators will not need to develop and implement any new procedures, rules and guidelines. Majority of boiler-houses consumes natural gas. Typically, the natural gas consumption is accounted by the continuous measurement system: gas meters that have rather high a degree of accuracy.

12.3.2 Time schedule for MRV implementation in Ukraine The table below outlines the preliminary time schedule for MRV implementation in Ukraine.

It is proposed that during year one, development and adoption of the respective regulatory framework for MRV system functioning and training of NCA personnel to MRV supervision for activity type - Stationary Combustion of Fuels - is conducted.

It is proposed to limit the number of installations to be first included in the MRV system during the pilot phase is limited before certain experience has been gained, namely, only power generating installations with capacity exceeding 20 MW supplying power to the Integrated Power System of Ukraine shall be included in the system. During first half of year two of the system implementation, monitoring plans for power generating installations with capacity over 20 MW should be developed and approvals of the monitoring plans for the installations shall be obtained. During the second half of year two, the power generating installations shall monitor GHG emissions according to the monitoring plan approved. The thoroughness and the level of detail in development of all documents related to the start of the MRV system pilot phase is of particular importance. That is why it is recommended to utilize the additional time (first half of year) for refinement of all the required documents and collaboration with the operators in respect of development and approval of the monitoring plans and gaining initial experience of inclusion of the activity type in the MRV system. During year two, it is planned to develop related documents for inclusion of the approved activities of the relevant industrial processes within year three of the MRV system operation. Also, during year two, the training of NCA personnel to supervision of MRV for industrial processes, compilation of the installations register shall be conducted, and accreditation of verifiers shall be commenced.

For the duration of the first quarter of year three of the MRV system implementation, development of monitoring reports for power generating installations with capacity over 20 MW, and verification of the monitoring reports is planned. The review and registration with NCA of the monitoring reports and verification reports for the second halfyear for power generating installations with capacity over 20 MW is planned for the duration of Quarter 2. Also, it is proposed to perform analysis of the experience gained in obtaining approvals of the monitoring plans, revision and registration of monitoring reports and verification reports, and to commence development of monitoring plans for 63

industrial process installations. During Quarter 4 of year three of MRV system implementation, monitoring plans for industrial process installations shall be approved, and necessary modifications of the additional regulatory documents and guidelines related to MRV system operation shall be introduced and approved. During year three, the installations register is planned to be commissioned.

During year four, monitoring of GHG emissions at installations covered by MRV system, and relevant actions in NCA institutional empowerment shall be conducted.

During year five, work related to operation of the full-scale MRV system shall be conducted, in particular:       

development of monitoring reports for the previous year for all installations included in the MRV system; verification of the monitoring reports; the revision and registration with NCA of the monitoring reports and verification reports for installations covered by the MRV system; development of monitoring plans for installations; analysis of the experience obtained in obtaining approvals for monitoring plans, revision and registration of monitoring reports and verification reports for installations covered by the MRV system; approval of the plans for installations monitoring; implementation of the state recording of installations, etc.

At the end of year five of the MRV implementation pilot phase, adoption of the final version of the MRV system regulatory framework is planned.

The table below presents a proposed time schedule of the pilot phase of the MRV implementation in Ukraine.

64

Year 1

Year 2

Year 3

Year 4

Year 5

Adoption of the MRV regulatory

First half-year

Quarter 1

Conduct monitoring at

Quarter 1

framework:

Development of monitoring plans

Development of reports on

installations covered by the MRV

Development of monitoring

6.

Law of Ukraine â&#x20AC;&#x153;On measures for organizing and implementing monitoring, reporting and verification of greenhouse gases emissionsâ&#x20AC;?

for power generating installations

monitoring for power generating

system

reports for installations covered

with capacity over 20 MW -

installations with capacity over 20

by the MRV system

Stationary Combustion of Fuel*

MW

Verification of the monitoring

Approval of monitoring plans for

Verification of the monitoring

reports

power generating installations

reports

Quarter 2

7.

Procedure of monitoring, reporting and verification of greenhouse gases emissions

with capacity over 20 MW

Quarter 2

Examination and registration with

The revision and registration with

NCA of the monitoring reports

Second half-year

NCA of the monitoring reports

and verification reports for

Monitoring at power generating

and verification reports for the

installations covered by the MRV

installations with capacity over 20

second half-year for power

system

MW

generating installations with

Quarter 3

capacity over 20 MW

Development of monitoring plans

Quarter 3

for installations

Analysis of the experience gained

Analysis of the experience gained

in approvals of monitoring plans,

in approvals of monitoring plans,

revision and registration of

revision and registration of

monitoring reports and

monitoring reports and

verification reports

verification reports for

Development of monitoring plans

installations covered by the MRV

for industrial process installations

system

Quarter 4

Quarter 4

Approval of the plans for

Approval of the plans for

industrial process installations

installations monitoring

monitoring

Introduction and approval of

Approval of monitoring plans for

necessary modifications of the

power generating installations

additional regulatory documents

with capacity over 20 MW

and guidelines

8.

Procedure of accreditation of independent expert organizations which perform verification of reports on monitoring of GHG emissions 9.

Procedure for state recording of GHG-emitting installations 10.

Procedure of state control over monitoring, reporting and verification of GHG emissions

65

Introduction and approval of necessary modifications of the additional regulatory documents and guidelines Elaboration and approval of the

Elaboration and approval of the

Relevant follow-up of the MRV

Relevant follow-up of the MRV

Adoption of the final version of

additional regulatory documents

additional regulatory documents

system regulatory documents

system regulatory documents

the MRV system regulatory

for activity - Stationary

for industrial processes

***

framework

Combustion of Fuel *** Development of the Guideline

Development of installations

Putting the installations register

Implementation of the state

Implementation of the state

Documents****

register

to operation

recording of installations

recording of installations

Training of NCA personnel to

Training of NCA personnel to

Institutional empowerment of

Institutional empowerment of

Institutional empowerment of

MRV supervision for activity -

MRV supervision for industrial

the NCA

the NCA

the NCA

Stationary Combustion of Fuels

installations Training of NCA

accreditation of verifiers

accreditation of verifiers

accreditation of verifiers

personnel to installations register maintenance accreditation of verifiers

66

* Estimation of the potential installations quantity: There are 42 CHPs and CPPs with capacity of 20 MW and above operating in Ukraine. The list of CHP and CPP is presented in Annex 4 ** Activities for industrial processes (preliminary inventory) 10. Production of Iron and Steel 11. Production of ferroalloys 12. Production of metallurgical coke (Offsite production of metallurgical coke) 13. Cement production 14. Production of ammonia 15. Production of limestone 16. Production of nitric acid 17. Production of adipic acid ***Elaboration and approval of the additional regulatory documents 18. Methodology for definition of GG emissions.

19. Monitoring plan template 20. Monitoring plan template for installations with insignificant GHG emissions.

21.

GHG emission monitoring report template.

22.

Template of simplified monitoring report for installations with insignificant GHG emissions.

**** List of governing documents 23. Example of standard procedure for organizing monitoring at installation level.

24. General guidelines in GHG emissions monitoring and reporting.

25. Guidelines in interpretation of installations’ activity types.

26. Guidelines for lab testing frequency.

27. Guidelines for sampling and samples testing.

28. Guidelines for data management and data control system.

29. Guidelines for estimation of uncertainty.

30. Guidelines for utilization of biomass.

12.3.3 Classification of installations categories Each installation can be classified according to the following categories: 

category А - GHG emissions below 50,000 t of CO2 equivalent per year;



category B - GHG emissions below 500,000 t of CO2 equivalent per year, but more than emissions under category A;



category C: GHG emissions equal or over 500,000 t of CO 2 equivalent per year.

The operator shall classify each installation’s category in the monitoring plan and in the monitoring report. This is necessary for identifying possibilities of applying simplified requirements to Monitoring, Reporting and Verification.

67

12.3.4 Classification of flows “fuel, raw material-product" The operator shall classify each “fuel, raw material-product” flow according to one of the following categories while comparing it to the total GHG emissions of the installation: а) insignificant flows - the “fuel, raw material-product” flow selected by the operator corresponds to one of the indicators, which in absolute terms is: - below 5,000 t of CO2 equivalent per year, - below 10% of total CO2 emission, but not exceeding 100,000 tons of CO2 per year; b) minimum flows - the “fuel, raw material-product” flow selected by the operator corresponds to one of the indicators, which in absolute terms is: - below 1,000 t of CO2 equivalent per year, - below 2% of total CO2 emission, but not exceeding 20,000 tons of CO2 per year; c) key flows - the “fuel, raw material-product” flows that do not fall under any category listed under paragraph a) and paragraph b).

For example, for Ukrainian CHPs, the key “fuel, raw material-product” flow will be “coal combustion” (the portion of coal utilization at Ukrainian CHPs makes 93% - 99%), and the “natural gas combustion” and “oil combustion” flows will be insignificant.

12.3.5 Data accuracy levels Each parameter required for identifying GHG emissions may be accepted by means of using different data with different level of uncertainty. These parameters include data about the installation activity and the calculation factors (GHG emission factors, net calorific value, oxidization factors, etc.). Data Accuracy levels must be applied to these data.

Utilization of such levels is illustrated in the table below where levels that may be selected for identifying GHG levels from fuel when using calculation-based methodologies.

In general, it can be noted that lower levels represent methods with lower requirements and are less accurate than higher levels.

The same number levels (for instance, levels 2a and 2b) are considered equivalent.

Table4 . Exemplification of data accuracy levels use Volumes of fuel consumption Level 1 Level 2

NCV

Emission factor

Oxidization factor

Level 1

Level 1

Level 1

Level 2a / 2b

Level 2a / 2b

Level 3

Level 3

Level 3 Level 4

Level 2 Level 3

Higher levels are considered more complex and costly than the lower ones (for example due to use of more expensive measurement equipment). That is why lower levels, as a rule, are required for lesser GHG emission levels, that is, for insignificant and minimum flows, and, respectively, for smaller scale installations. Therefore, the economically effective approach to identifying GHG emissions for installations is secured.

Generally, the data accuracy levels are determined as follows: Level 1 - use of default calculation factors (for example, according to 2006 IPCC Guidelines for National Greenhouse Gas Inventories or best industry practices).

68

Level 2 - use of calculation factors identified at the national level (for example, those presented in the national inventory as submitted to the UNFCCC secretariat).

Level 3 - use of calculation factors identified at the installation level (for example, those identified by means of laboratory analysis, continuous measurement, etc.).

The table below presents example of maximum admissible error for each activity data level used in the EU ETS. Table5 . Levels for activity data (max possible error for each level)

Activity/ “fuel, raw materials - product” flow

Parameter to which uncertainty is applied

Level 1

Level 2

Level 3

Level 4

± 7,5 %

±5%

± 2,5 %

± 1,5 %

± 7,5 %

±5%

± 2,5 %

± 1,5 %

± 7,5 %

±5%

± 2,5 %

± 1,5 %

Fuel Combustion and fuel used as raw stock 3

Standard commercial fuel

fuel volume [t] or [nm ]

Other fuel gas or liquid fuel

fuel volume [t] or [nm ]

Solid fuel

volume of fuel [t]

3

12.3.6 Analysis of calculation factors discrepancy for different data accuracy levels The assessment of calculation factors discrepancy for different data accuracy levels used in calculation of GHG emissions from stationary combustion of fuel at CHPs of Ukraine is presented below.

The analysis of calculation factors discrepancy for different data accuracy levels used in calculation of GHG emissions from stationary combustion of fuel at CHPs of Ukraine during combustion of coal has been conducted according to the results of the National GHG emission and absorption inventory of Ukraine for 2011, submission 2013, version 1.1 [51].

The values of data accuracy level two for “Stationary Combustion of Fuel” activity are presented in the Unified Reporting Format (URF) of the National Inventory of Ukraine in Table1.A (b) worksheet [51].

Table6 . Emission factor of CO2 and oxidization Emission factor, tons of CO2equivalent/TJ URF 26.33

Coal

Oxidization factor

IPCC 2006

URF

default values 25.8

0.97

According to [1], for calculation of GHG emissions from Ukrainian CHPs for 2003-2011, detailed data received from each CHP and from SOE “UkrNDІvuglezbagachennia” were used, and national factors of carbon content in coal, coal oxidization and net calorific value were computed ([51] Paragraph 2.4.2, Paragraph2.5, Paragraph 2.7 of Annex 2).

These emission factors correspond to level three of the requirements for data accuracy, namely, to the installation level.

Table7. Content of carbon in coal at CHPs of Ukraine, t/TJ ([51] Table Paragraph 2.10) CHP name Zaporіz`ka Krivorіz`ka Pridnіprovs`ka Zuivs’ka Kurakhіvs`ka

Coal grade G+D (Gas Coal + Long Flame Coal) T (lean coal) А+Т (anthracite coal + lean coal) G+D (Gas Coal + Long Flame Coal) G+D (Gas Coal + Long

2011 25.2 26.6 27.9 25.5 25.4 69

Flame Coal) Lugans`ka Slovyans`ka Starobeshіvs`ka

А+Т (Anthracite Coal + Lean Coal) А+Т (Anthracite Coal + Lean Coal) А+Т (Anthracite Coal + Lean Coal)

27.4 27.9 27.9

A+T+Zh (Anthracite Burshtins`ka

Coal + Lean Coal +

25.2

Fat Coal) G+D+Zh (Gas Coal + Dobrotvіrs`ka

Long Flame Coal +

25.2

Fat Coal) Ladizhins`ka Vuglegіrs`ka Zmіїvs`ka Tripіls`ka Mironіvs`ka

G+D (Gas Coal + Long Flame Coal) G+D (Gas Coal + Long Flame Coal) А+Т (Anthracite Coal + Lean Coal) А+Т (Anthracite Coal + Lean Coal) A+D (Anthracite Coal + Long Flame Coal)

25.3 25.1 27.3 27.6 27.4

The discrepancy of СО2 coal combustion emission factors for data accuracy level 3 (installations level) and data accuracy level 2 (national values and level 1 (IPCC default values) is provided in the table below.

70

Table8. Difference of factors of СО2 emission from coal combustion for data accuracy level 1, 2 and 3 Level 3 to 2 CHP name

Level 3 to 1 IPCC 2006

URF

default values

Zaporіz`ka

-4.5%

-2.4%

Krivorіz`ka

0.8%

2.8%

Pridnіprovs`ka

5.6%

7.5%

Zuivs’ka

-3.3%

-1.2%

Kurakhіvs`ka

-3.7%

-1.6%

Lugans`ka

3.9%

5.8%

Slovyans`ka

5.6%

7.5%

Starobeshіvs`ka

5.6%

7.5%

Burshtins`ka

-4.5%

-2.4%

Dobrotvіrs`ka

-4.5%

-2.4%

Ladizhins`ka

-4.1%

-2.0%

Vuglegіrs`ka

-4.9%

-2.8%

Zmіїvs`ka

3.6%

5.5%

Tripіls`ka

4.6%

6.5%

Mironіvs`ka

3.9%

5.8%

5.6%

7.5%

Maximum discrepancy

The discrepancy between СО2 coal combustion emission factors for data accuracy level 3 (installations level) and data accuracy level 2 (national values and level 1 (IPCC default values) is shown in the table below.

Table9. Discrepancy between oxidization factor for combustion of coal for data accuracy levels 2 and 3 CHP name Zaporіzka Krivorіz`ka Pridnіprovs`ka Zuivska Kurakhіvs`ka Lugans`ka Slovyans`ka Starobeshіvs`ka Burshtins`ka Dobrotvіrs`ka

Coal grade G+D (Gas Coal + Long Flame Coal) T (lean coal) А+Т (Anthracite Coal + Lean Coal) G+D (Gas Coal + Long Flame Coal) G+D (Gas Coal + Long Flame Coal) А+Т (Anthracite Coal + Lean Coal) А+Т (Anthracite Coal + Lean Coal) А+Т (Anthracite Coal + Lean Coal) A+T+Zh (Anthracite Coal + Lean Coal + Fat Coal) G+D+Zh (Gas Coal + Long Flame Coal + Fat Coal)

2011 [1] Table Paragraph 2.12.

0.997 0.962 0.922 0.997 0.98 0.946 0.951 0.937 0.988 0.986

Discrepancy

2.7% -0.8% -5.2% 2.7% 1.0% -2.5% -2.0% -3.5% 1.8% 1.6% 71

G+D (Gas Coal + Long

Ladizhins`ka

0.997

Flame Coal) G+D (Gas Coal + Long

Vuglegіrs`ka

0.997

Flame Coal) А+Т (Anthracite Coal +

Zmіїvs`ka

А+Т (Anthracite Coal +

-0.3%

0.923

Lean Coal) A+D (Anthracite Coal +

Mironіvs`ka

2.7%

0.967

Lean Coal)

Tripіls`ka

2.7%

-5.1%

0.989

Long Flame Coal)

**1.9%

Maximum discrepancy

-5.2%

Therefore, based on the analysis the following conclusions can be made:  evaluation of the discrepancy of calculation factors applied at level 3 - company level and level 2 – national level, reaches above 5% (and for the level 1 default factor reaches 7.5%);  the СО2 emissions at the Ukrainian CHPs amount to millions of tons per year, which is why the discrepancy appearing when different data accuracy levels are applied may result in error of hundreds of thousand tons СО2 per year;  for phase three of operation (2013 – 2020 ) According to the universal rule of the European GHGemissions trading system, the operator must use higher accuracy level for each parameter. For operators with significant emissions within category B (> 50 thousand tons of CО 2-equivalent per year) and C (> 500 thousand tons of CО2-equivalent per year), this rule is mandatory.

12.4 PRELIMINARY ANALYSIS OF EXPEDIENCY OF INCLUDING METHANE AND NITROUS OXIDE EMISSIONS TO THE MRV SYSTEM FOR ACTIVITY STATIONARY COMBUSTION OF FUELS The preliminary analysis of expediency of including methane and nitrous oxide emissions to the MRV system coverage during the pilot phase for the “Stationary Combustion of Fuels” activity has been executed for the emission factor values suggested by the 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Chapter 2: Stationary Combustion of Fuels, table 2.2 “DEFAULT EMISSION FACTORS FOR STATIONARY COMBUSTION IN THE ENERGY INDUSTRIES” [2].

The evaluation of the CH4 and N2O emissions correlation with CO2 emissions was performed for three major fuel types within activity “stationary combustion of fuels”.

Emission factors values and factors of correlation between methane and nitrous oxide emissions and СО 2 are presented in the tables below.

Table10. Default Emission Factors for Stationary Combustion in the Energy Industries Fuel

kg CO2/TJ

kg CH4/TJ

kg N2O/TJ

Residual Fuel Oil

77 400

3.00

0.60

Coal

96 100

1.00

1.50

Natural Gas

56 100

1.00

0.10

Table11. Correlation between methane and nitrous oxide emissions and СО2

Fuel

Factor of correlation

Factor of correlation

between CH4

between N2O

emissions and CO2

emissions and CO2

emissions

emissions

Factor of correlation of the sum of CH4 and N2O to CO2 emissions 72

Residual Fuel Oil

0.08%

0.24%

0.32%

Coal

0.02%

0.48%

0.51%

Natural Gas

0.04%

0.06%

0.09%

Therefore, CH4 emissions do not exceed 0.1% of CO2 emissions from Residual Fuel Oil combustion, and the CH4 emissions from combustion of coal and natural gas are even lower. N2O emissions do not exceed 0.5% of CO2 emissions from coal combustion.

The largest portion of CH4 and N2O cumulative emissions in equivalent of CO2 reaches 0.51% of CO2 emissions from combustion of coal which is three times less than the maximum level 3 data accuracy requirement of 1.5% which is ten times less than the requirements according to level 1, which equals 5% of uncertainty. Thus the maximum share of CH4 and N2O total emission in the equivalent of CO2 is three times less than the maximum requirement for the uncertainty factor.

It should be noted that the emission factor values for CH4 and N2O at level 3 (which depends on the combustion technology) are even lower that the default emission factors. Therefore, application of CH4 and N2O emissions at level 3 will result in even lower volumes of CH4 and N2O emissions.

The emissions factors for level 3 are given in the table below.

Table 12. Utility Source Emission Factors (Table 2.6. [52]) Basic technology

CH4,

N2O,

kg/TJ

kg/TJ

8

Residual Fuel Oil/Shale Oil Boilers

r 0.8

0.3

Dry Bottom, wall fired

0.7

r 0.5

Dry Bottom, tangentially fired

0.7

r 1.4

Wet Bottom

0.9

r1.4

r1

n 1

Solid fuels

Natural Gas Boilers

9

An example of actual data-based GHG emission computation for one Ukrainian CHP and applying of level 2 (national level) for computational factors for СО2 emissions and the default emission factors for CH4 and N2O is presented in the table below.

Table 13. Example of GHG emission computation based on actual data

Description

Fuel consumption, TFOE

Coal 2,281,035 Natural Gas 9,320 Residual Fuel Oil 37,279 Total, emissions from combustion

8 9

tons СО2 6,260,459 15,117 83,683 6,359,259

CH4, tons of СО2equiv 1,404 6 69 1,410

N2O, tons of СО2equiv 31,086 8 203 31,094

r indicates an emission factor that has been revised since the IPCC 1996 Guidelines n indicates a new emission factor which was not present in the IPCC 1996 Guidelines

73

Table 14. Factor of correlation of CH4 and N2O emissions to CO2 emissions

Coal Natural Gas Residual Fuel Oil Total emissions ratio

Correlation between CH4 emissions and CO2 emissions 0.02% 0.04% 0.08% 0.02%

Correlation between N2O emissions and CO2 emissions 0.50% 0.06% 0.24% 0.49%

Correlation of CH4 and N2O to CO2 emissions 0.52% 0.09% 0.33% 0.51%

Based on the preliminary analysis of expediency of inclusion of methane and nitrous oxide from the “Stationary Combustion of Fuels” activity into MRV coverage during the pilot phase, it can be concluded that inclusion of CH 4 and N2O is inexpedient due to the fact that these emissions are by several orders lower than СО2 emissions, and do not exceed the materiality level requirement which makes 5% of the total emission volume for the reporting period for A 10

and B category installations, and 2% for C category installations .

12.5 SUGGESTIONS FOR APPLYING DATA ACCURACY LEVELS TO INSTALLATIONS CATEGORIES For A-category installations, according to the requirements of the data accuracy levels use, Level 1 may be applied and default calculation factors may be used (2006 IPCC Guidelines for National Greenhouse Gas Emission and Absorption Inventories or best industry practices). If the National Coordination Authority (NCA) approves and proposes to operators the new level 2 (national) calculation factors, the operators will use these factors instead of the default factors.

For B-category installations, according to the requirements of the data accuracy levels use, Level 2 (national level) may be applied for determining the calculation factors. Operators may use national emission factors for fuel and oxidization rates that are applied in Ukraine during annual GHG emission and absorption inventory (latest national inventory submitted to UNFCCC secretariat) or those suggested by the NCA. Relative to the fuel net calorific value (NCV), the installation operators may use values indicated in the commercial invoice for supply of given fuel.

Thus, it will be possible to maintain the balance between reliable reporting and proportional cost for operators with low emissions, i.e. for A and B Category installations.

The figure below shows requirements to installation operators for the recommended accuracy levels and activities that are not included in MRV system, but may be included in the “Low Carbon Growth in Ukraine” system of reporting. As it has been already mentioned in the prior reports (Research Notes No.1 and No.2), at the very beginning of the MRV system operations, the installations that allow applying rather accurate monitoring should be included in the system. This will allow implementing MRV system more efficiently and will not undermine the trust in the system in general.

For the activities not yet covered by the MRV system, it is recommended that information is provided according to “Low Carbon Growth in Ukraine” format as provided in the Research Note No.2. This is also very important from the technological advance and new technology introduction standpoint. Even in the near-term perspective, it is difficult to say which technology will be developed and implemented. Thus, covering almost all installations within all activities,

10

COMMISSION REGULATION (EU) No 600/2012 of 21 June 2012 , Article 23, Materiality level 74

even with the most simplified reporting system, will allow Ukraine to make more efficient use of financial, manpower and technical resources during MRV system expansion upon completion of the pilot phase.

For stationary combustion installations and industrial process installations, not only the simplified monitoring procedure, but also a simplified procedure of the monitoring report examination and registration by the NCA directly, without involvement of verification performed by an independent expert organization is recommended. For such installations, simple and transparent rules can be established that will allow saving time and funds, and will not require involvement of third-party consultants. The procedure which includes preparation of mandatory report on GHG emissions monitoring, its submission to the NCA for revision, implementation of necessary corrections and registration of the report with the NCA is required. Thus the operator will avoid requirement to undergo inspection by an independent third party which might result in significant financial and time loss.

For Category B installations for stationary combustion of fuel, it is proposed to identify and establish a simplified verification procedure, i.e. without visit to the installation, with minimized data required for verification, without involvement of additional experts, etc.

The most transparent detailed and approved procedure must be implemented for Category C installations for stationary combustion of fuel and Category B and C installations for industrial processes (see figure below). For such installations, the verification procedure may appear costly both financially and time-wise.

Currently, it is difficult to assess the quantity of stationary fuel combustion installations that will comply with the requirement of the GHG emission limit volume of 25,000 t СО2 per installation and will be covered by the MRV system.

In the table below, the main indices of the system for decentralized heat supply in Ukraine as of 2011 are presented.

Table 15. Main indices of the system for decentralized supply of thermal energy in Ukraine as of 2011 Total number of boilerBoiler-houses

35,073.0

100.0%

30,616.0

87.3%

3,625.0

10.3%

120,298.4

100.0%

up to 3 MW

21,883.3

18.2%

from 3 to 20 MW

26,619.3

22.1%

Total production

104,688.6

100.0%

up to 3 MW

11,087.8

10.6%

from 3 to 20 MW

17,321.8

16.5%

houses up to 3 MW from 3 to 20 MW Total capacity

Capacity, MW

Heat energy production, thousand Gcal/year

Housing and Public Utilities (HPU) consume close to 40% of heat energy resources [60]. The energy resource loss in HPU throughout all phases of its production and transportation to consumers is 45%, which equals to 3.7 billion cubic meters of natural gas wasted [61].

Considering the assessment made in section 2.1, natural gas consuming boiler houses of total capacity above 35 MW will fall under the MRV system reporting. Therefore, a large number of boiler houses will not be covered by the MRV system. Considering that this installations segment is very important from the standpoint of low carbon policy of Ukraine’s development, it is proposed to consider possibility of implementing reporting for installations and activities that are not covered by the MRV system in accordance with the “Low Carbon Growth in Ukraine” data format.

For example, reporting of natural gas (coal, petroleum products, etc.) suppliers to end users in the commercial and residential sectors.

Thus, NCA will be able to receive and analyze GHG emission data at small-size facilities, and from sectors that are not obliged to report in compliance with the MRV system.

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The figure below demonstrates the MRV system requirements for different installation categories.

76

  Category C installations for Stationary Combustion of Fuels Category B and C installations for Industrial Processes

  

  Category B installations for Stationary Combustion of Fuels

 

  Category A installations for Stationary Combustion of Fuels Category A installations for Industrial Processes

For the activities not yet covered by the MRV system

 



Monitoring plan development Submission of the monitoring plan to NCA for review and registration Monitoring report preparation Monitoring report verification Submission of the monitoring report and verification report to NCA for examination and registration

Monitoring plan development Submission of the monitoring plan to NCA for examination and registration Development of monitoring report and simplified verification.

Submission of the monitoring report and verification report to NCA for examination and registration

Monitoring report preparation Submission of the monitoring report to NCA for examination and registration Closure of NCA comments if required Submission of the renewed monitoring report to NCA for reexamination and registration

Submission of information according to “Low Carbon Growth in Ukraine” data format

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12.6 TREATMENT OF CONFIDENTIAL INFORMATION The data identified as confidential business information will be protected in compliance with the effective regulations and will not be disclosed. To that end, rules should be developed to be published at the NCA website in regard to identification of what data will be regarded as confidential.

Attention should be given to the data that is considered to be confidential and that which should be disclosed in the interests of stakeholders and potential investors. For example, investors and potential investors in the Ukrainian economy may wish to be able to form an opinion as to the exposure of particular industries to future ETS or other emission regulation. Without access to good quality data, they are unable to form such opinions and as a consequence, share prices may not be capable of reflecting the future value of low carbon investments or the impact of high emission technology on future profits, taking away a vital component of the investment decision making process.

The framework Law on MRV system implementation cannot provide for confidentiality. That is why it has been proposed to create a division within NCA that will be issuing the list of non-public data.

12.7 ESTIMATED LIST OF THE NCA EXPENDITURES FOR IMPLEMENTATION AND OPERATION OF MRV SYSTEM The following table presents preliminary estimation of the tentative NCA expenditures items within the first pilot phase of the MRV system implementation. Regardless of which organization will be appointed as NCA, the financial and manpower resources according to the following items will need to be identified:         

development and approval of the relevant regulatory framework for MRV system operation; development and maintenance of the state inventory of installations included in the MRV system in Ukraine; training of NCA personnel in the register operation support; development and support of the GHG emissions database and the relevant software; training of NCA personnel in maintenance of the GHG emissions database; collection, verification and approval of GHG emission monitoring plans and reports on monitoring, organization of a service/department for installations operators support; archiving and storage of monitoring and verification reports; recruiting, training of NCA personnel and experts in specific matters; engagement of consultants and technical experts.

13 PRELIMINARY ASSESSMENT OF INSTALLATIONS TO BE INCLUDED IN THE MRV SYSTEM DURING THE PROPOSED ETS PILOT PHASE 13.1 STATIONARY COMBUSTION OF FUELS According to the research [53] based on the existing quantity of companies and organization operating in the power industry of Ukraine, one can estimate the approximate quantity of installations or organizations that fall under MRV system implementation according to the GHG emissions reporting threshold of 25,000 tons СО2 per year.

There are 42 CHPs and CPPs [53] with capacity of 20 MW and above operating in Ukraine. The list of CHP and CPP is presented in Appendix 9.

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According to the renewed energy strategy of Ukraine for the period till 2030, no significant changes both in quantity of installations, and in power generation at CHP and CPP plants which utilize fossil fuels are foreseen before 2020. The structure of the capacities and the power generation forecast is presented in the table below.

Table 16. Structure of capacities and production according to different scenarios (I - pessimistic, II - basic, III optimistic) 2010

2015 I

Installed capacity, GW, including 11

CHP – coal

2020

II

III

I

II

III

29.6

28.8

28.8

28.8

26.2

26.2

28.2

19.5

18.7

18.7

18.7

16.1

16.1

18.1

3.8

3.8

3.8

3.8

3.8

3.8

3.8

6.3

6.3

6.3

6.3

6.3

6.3

6.3

86

93

103

103

81

97

104

68

73

82

82

60

75

82

-

2

2

2

2

2

2

18

18

19

19

19

20

20

CHP – gas CPP and isolated generating plants Production, TW*year, including CHP – coal CHP – gas CPP and isolated generating plants

Further, the assessment of the minimum annual fuel consumption and minimum average electrical load of power generating installations to be potentially included in the MRV system in Ukraine in conformity with the recommended GHG emission threshold of 25, 000 t СО2 per year per installation is presented.

The following assumptions were used for the purpose of the assessment:  

hour of operation per year – 8,760; specific fuel consumption – 360 TFOE /kW*hour.

Table 17. Assessment of the yearly fuel consumption and total electric load of the power generating installations to be included in the MRV system Average electric

Fuel type

load, MW

Coal

Power

Fuel

Fuel

generation,

consumption,

consumption,

MW*year

TFOE

GJ

Emissions, tons CO2

Fuel consumption, t/thousand m

3

3

26,280

9,461

277,273

25,966

12,899

3.5

30,660

11,038

323,486

24,777

8,230

5

43,800

15,768

462,122

25,576

13,704

Residual Fuel Oil Natural Gas

Thus, the residual oil consuming power generating installations with average annual load of 3.0 MW and above per year, coal consuming installations with load of 3.5 MW per year, and natural gas consuming installations of 5 MW per year produce СО2 emissions of about 25,000 t per year and must be included in the MRV pilot phase in Ukraine.

Below, assessment of the minimum annual fuel consumption and minimum total capacity of heat generating installations to be potentially included in the MRV system in Ukraine is presented.

The following assumptions were used for the purpose of the assessment: 

11

standard heating period – 192 days;

The CHP capacity is indicated without consideration for inactive thermal generating sets and generating sets

under restoration 79

 

average annual load – 70%; boilers efficiency – 90%.

Table 18. Assessment of the yearly fuel consumption and total capacity of the thermal energy generating installations to be included in the MRV system

Fuel type

Energy generation, MW*year

Capacity, MWthermal energy

Fuel consumption, GJ

Emissions, tons CO2

Fuel consumption, t/thousand m3

Coal

20

64,512

258,048

24,165

12,005

Residual Fuel Oil

25

80,640

322,560

24,706

8,206

Natural Gas

35

112,896

451,584

24,993

13,392

Beside the thermal and electric power generating installations in various branches of Ukraine’s economy, potential installations to be included in the MRV system in Ukraine may be gas compression stations (GCS) installed within the gas transport system (GTS) of Ukraine.

In the table below, brief summary of Ukraine GCSs as of 2012 is presented.

Table 19. Information on Ukrainian GCSs

12

Description

Values

Quantity of gas compressor stations (GCS)

74

Quantity of compressor departments

108

Quantity of gas compressor units

702

Including gas turbine powered

448

electrically powered

158

gas engine compressors

96

Compressor Stations Capacity, MW Fuel gas consumption (2012), million m

5,440 3

СО2 emissions for fuel gas combustion, tons СО2

1,682.40 3,146,088

Average GCS capacity, MW Average СО2 emissions per GCS, t

73.6 42,515

Acknowledging the experience of the Australian MRV system [49] which envisages possibility for the National Coordination Authority to identify the concept of installation (reporting subject), it can be proposed that all of the Ukrainian GCSs are identified within MRV system in Ukraine as a single installation controlled by a single operator, namely Ukrtransgaz, PJSC. Thus the installation operator (Ukrtransgaz, PJSC) will be obliged to develop one monitoring plan and obtain NCA approval for it, and prepare one monitoring report, have this monitoring report verified and have the monitoring report and the verification report registered with the NCA. In order to use the funds effectively and in view of the standard nature of all actions relevant to the requirements of GHG emission monitoring at each GCS, such approach will not result in degradation of monitoring data accuracy, and in order to simplify and reduce cost of the verification effort, the independent expert organization may appoint visits to individual GCSs as the measurement instrumentation used for obtaining activity data (volumes of fuel gas consumed) is standard for all GCSs and features high measurement parameters accuracy.

Thus the activity in natural gas combustion within the gas transport system of Ukraine which results in СО 2 emissions exceeding 3 million tons per year (according to 2012 data) will be included in the MRV system of Ukraine.

12

Source: http://www.utg.ua/uk/activities/ 80

13.2 PRODUCTION OF IRON AND STEEL A preliminary list of the largest metallurgy plants of Ukraine is presented in the table below.

Table 20. List of Largest Metallurgical Plants No.

Company Name

1

Yenakiieve Iron and Steel Works, PJSC

2

Azovstal Iron & Steel Works, PJSC

3

Donetsksteel — metallurgical plant, PrSC

4

Ilyich Iron and Steel Works, PJSC

5

Alchevsk Iron & Steel Works, PJSC

6

ArcelorMittal Kryvyi Rih, PJSC

7

Dneprovsky Integrated Iron&Steel Works named after Dzershinsky, PJSC

9

EVRAZ-DMZ іm. Petrovskogo, PJSC

10

Dneprospetsstal, PJSC

According to the National Inventory [1], the general national emission factor for iron production equals 0.672 t СО 2 per ton of iron, and for steel production, it equals 0.124 t СО2 per ton of steel. Thus, if an installation produces iron and steel in the volumes as per the table below, this results in emissions of 25,000 tons of СО 2.

Minimum Production of Iron, tons per year

37,188

Minimum Production of Steel, tons per year

200,803

13.3 PRODUCTION OF FERROALLOYS Statistical data on ferroalloys production provided by the State Statistics Service and four ferroalloy plants of Ukraine covering over 87% of the total ferroalloy production in Ukraine were used as the activity data for the purpose of the National GHG emission inventory [1].

The list of potential installations - ferroalloy plants to be included in the MRV system in Ukraine is listed in the table below.

Table 21. List of Ferroalloy Plants No. 1

Zaporozhye Ferroalloy Plant, PJSC

2

Nikopol Ferroalloys Plant, PJSC

3

Stakhanov Ferroalloys Plant, PJSC

4

Pobuzky Ferroalloy Plant, PJSC

Company Name

According to the National Inventory [1], the general national emission factor for ferroalloys production equals 1.6 t СО2 per ton of ferroalloys. Therefore annual production of ferroalloys per year of about 15,600 tons results in emission of 25,000 tons of СО2.

13.4 PRODUCTION OF METALLURGICAL COKE (OFFSITE PRODUCTION OF METALLURGICAL COKE) Coke production occupies an intermediary position in the coal-coke-metal process. About 85-90% of coke produced in Ukraine is utilized for production of iron, which is why blast furnaces capacity utilization determines the demand for coke. According to the State Statistical Service, in 2011, Ukrainian coking plants produced 19.6 million tons of coke, which is 1 mil tons more than in 2010, but the same amount less than in the pre-crisis 2007.

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The list of potential installations - coke plants as offsite production of metallurgical coke to be included in the MRV system in Ukraine is listed in the table below.

Table 22. List of Metallurgical Coke Plants No.

Company Name

1

Avdiivka Coke Plant

3

Yasinivka Coke Plant

4

Makeevka Coke Plant

5

Enakievskiy Koksohimprom Coke Plant

6

JSC Donetskchark (Donetsk)

7

Gorlivka Coke Plant

8

Kramatorsk Coke Plant

9

Dzerzhinsky Coke Plant

10

Alchevsky Coke Plant

11

EVRAZ Dniprodzerzhinsk Coke Plant

12

EVRAZ Bagliykoks Coke Plant

According to the National Inventory [1], the general national factor for coke utilization emission equals 316 tons of СО2 per ton of coke. Therefore annual production of ferroalloys of about 8,060 tons results in emission of 25,000 tons of СО2.

13.5 CEMENT PRODUCTION In Ukraine, cement is produced by 11 companies[51]. One of the companies uses imported clinker.

The list of potential installations - cement plants to be included in the MRV system in Ukraine.

Table 23. List of Cement Plants

No. 1 2 3 4 5 6 7 8 9 10 11

Company Name Volyn-cement, PJSC Mykolaiv-cement, PJSC Podilsky Cement, PJSC Heidelberg Amvrosievka, PJSC Heidelberg Krivyi-Rih, PJSC Heidelberg Dniprodzerzhinsk, PJSC Pivden Cement, PJSC Ivano-Frankivskcement, PJSC Eurocement Ukraine, PJSC Bakhchisaray Cement, CJSC Cement (Odessa), LLC

According to the National Inventory [51], the general national emission factor from clinker production equals 0.513 t СО2 per ton of clinker. Therefore annual production of clinker of about 49,000 tons results in emission of 25,000 tons of СО2.

13.6 PRODUCTION OF AMMONIA With purpose of enhancing accuracy of the СО2 emissions during ammonia production for the 2011 National Inventory [51], consumption of natural gas as raw material was calculated based on data provided by six ammonia producing companies.

82

List of potential installations - ammonia production plants to be included in the MRV system in Ukraine.

Table 24. List of Ammonia Production Plants

No. 1 2 3 4 5 6

Company Name Stirol Concern, PJSC Dniproazot, PJSC Rivneazot, PJSC Odessa Port Plant, PJSC Azot (Cherkasy), PJSC Severodonetsk Azot Plant, PJSC

According to the National Inventory [51], the general national emission factor from ammonia production equals 1.28 t СО2 per ton of ammonia. Therefore annual production of ammonia of about 19,500 tons results in emission of 25,000 tons of СО2.

13.7 PRODUCTION OF LIMESTONE Lime is used construction, agriculture and in industry for production of steel, magnesium, copper, soda ash and sugar.

Many companies operating in construction, metallurgy industries, building and agriculture have own limestone production.

According to the National Inventory [51], the general national emission factor from limestone production equals 0.643 t СО2 per ton of limestone. Thus, annual production of limestone of about 39,000 tons results in emission of 25,000 tons of СО2.

13.8 PRODUCTION OF NITRIC ACID In Ukraine, nitric acid is produced by five companies [51] under two technology methods: in medium pressure lines 2

2

with fixed system pressure (7.3 kg/cm ) and in low pressure systems (3.5 kg/cm ) under combined methodology.

Table 25. List of Nitric Acid Plants

No. 1 2 3 4 5

Company Name Stirol Concern, PJSC Dniproazot, PJSC Rivneazot, PJSC Odessa Port Plant, PJSC Azot, PJSC

According to the National Inventory [51], the general national emission factor from nitric acid production equals 1.4 t of СО2 equivalent per ton of acid. Thus, annual production of nitric acid of about 18,000 tons results in emission of 25,000 tons of СО2.

13.9 PRODUCTION OF ADIPIC ACID In Ukraine, adipic acid is produced by two companies. In Ukraine, during production of adipic acid, the technology of N2O thermal breakdown is utilized.

According to the National Inventory [1], the general national emission factor from adipic acid production equals 4.123 t of СО2 equivalent per ton of acid. Thus, annual production of adipic acid of about 6,630 tons results in emission of 25,000 tons of СО2.

83

13.10 UTILIZATION OF LIMESTONE AND DOLOMITE Limestone and dolomite are the main raw material for a number of industrial processes. СО 2 emissions from utilization of limestone occur during production of cement, lime, calcium acetylide, glass, and in agriculture. There are no emissions occurring during soda ash, paper and sugar production in Ukraine.

Dolomite is mainly used in metallurgy (as fluxing stone) and during production of glass.

According to the National Inventory [51], the general national emission factor for limestone utilization equals 0.43 t СО2 per ton of limestone, and for dolomite utilization, it equals 0.46 t СО 2 per ton of dolomite. Thus, preliminarily, utilization of limestone or dolomite in the volumes as per the table below results in emissions of 25,000 tons of СО2.

Minimum utilization of limestone, t/year

57,670

Minimum utilization of dolomite, t/year

53,821

13.11 ASSESSMENT OF THE MINIMUM PRODUCTION OR USE OF FUEL AND RAW STOCK WHICH CAUSES EMISSION OF 25,000 T OF СО2 PER YEAR Below presented is the summary table of the minimum production or use of fuel and raw stock which causes emission of 25,000 t of СО2 per year. It should be noted that the requirement for inclusion to the MRV system in Ukraine of an installation with minimum emission of 25,000 t of СО2 per year is product of sum of emissions from all sources and flows “fuel, raw material-product” within the installation. That is why the operators need to make an assessment of emissions from all sources and flows “fuel, raw material - product” within an installation.

The table below is presented with purpose of demonstration.

Table 26. Summary table of the minimum production or use of fuel and raw stock for inclusion of installations in the MRV system No.

Description of “fuel, raw materials - product” flow

Mass (t)

Combustion of Coal

12,000

Combustion of Residual Fuel Oil

8,200

Combustion of Natural Gas, thousand m3

13,400

Production of Iron

37,200

Production of Steel

200,800

Utilization of Coke

8,000

Production of ferroalloys

15,600

Production of Clinker

49,000

Production of ammonia

19,500

Production of Limestone

39,000

Production of Nitric Acid

18,000

Production of Adipic Acid

6,630

Utilization of Limestone

57,670

Utilization of Dolomite

53,821

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13.12OBLIGATIONS OF INSTALLATION OPERATORS AND THE NATIONAL COORDINATION AUTHORITY The preliminary tentative list of installation operator’s obligations is presented below.  Development of GHG emissions monitoring plan using standard template of monitoring plan for identifying the relevant information: data about activity, emission/oxidization/recalculation factors.  Conducting monitoring during the respective reporting period for obtaining bottom-line result of GHG emission from all GHG emission sources/ “fuel, raw material - product” flows, etc.  Development of the annual GHG emissions monitoring report for the installation during the reporting period using the standard template.  Engagement of accredited verifiers for verification of the annual GHG emission monitoring report.  Granting verifier access to all necessary information for checking.  Submission of the annual GHG emissions monitoring report for the installation, and the verification report during the relevant reporting period to the National Coordination Authority.  Keeping the relevant information on GHG emissions at the installation for at least 10 years (for recalculation as it may be necessary).



According to the measurement and reporting principles, and for securing most accurate reporting, a data system, a quality management, control, and assurance system, and data analysis and verification system shall be installed and properly maintained.

The preliminary tentative list of NCA obligations:  development and approval of the requirements for the MRV system;  state recording of installations;  development of relevant guidelines, GHG emission calculation methodologies for installation activities, monitoring plan and monitoring report templates, etc.;  approval of monitoring plan;  examination and registration of the monitoring report and verification report;  development and ensuring of operation of the electronic database of GHG emission information provided by installation operators based on monitoring results.

14 PREPARATION OF NATIONAL ALLOCATION PLANS 14.1 REVIEW OF FREE ALLOCATION IN THE EU ETS Free allocation of allowances in ETS has been used for a number of reasons including some or all of the following:  Protecting industry from the immediate costs of the introduction of an ETS;  Helping industries learn how many allowances they will need and how much they can afford to pay for them;  Protecting emission intensive trade exposed industries from international competition  Discouraging leakage where industries may decide to move to locations where they are not charged for GHG emissions; and  Effectively buying the support of large emitters by delaying the impacts of the regulations.

Prior knowledge of the fact that historic data will be used as a basis for any form of allocation or grandfathering can incentivize emitting entities to inflate their emissions data, on the basis that if an allocation is calculated as a percentage of historic emissions, then those who emitted more in the past will receive more allowances to emit in the future.

The EU ETS [45] led the way in the process of grand-fathering allowances to industry and in the first phase, it was widely recognized that allowances had been generously distributed. Only two countries, Germany and UK, required baseline data to be verified and hence worked from a much better quality data set. As a result, during the second year of the first phase, it became obvious that the system was over-supplied and the price fell to zero. Because there was no banking between the first and second phases, there was no carry over. Had there been banking, the price would 85

not have fallen to zero but the over-allocation would have impacted the continued operation of the EU ETS during the second phase.

Free allocation continued in the second phase of the EU ETS, with only power companies having to purchase a small proportion of their allowances at auction. Despite the fact that the second phase allocation was based on verified data collected during the first phase, in the end the free ex ante allocations remained generous and were later exacerbated by the global economic collapse from 2008 onwards. The price of EU Allowances fell to as low as EUR2.5 but did not collapse to zero because banking is now permitted between the second and third phase. However, the excess of EUAs in the system has continued to impact upon price projections and kept prices low during the start of Phase 3.

In Phase 3 of the EU ETS, the majority of allowances are auctioned with free allocations only being given to industries that are classed as Energy Intensive Trade Exposed (EITE). Allocations are now calculated on the basis of benchmarks, which attempt to reflect the emissions intensity of different products produced by a measure of the best available or most efficient technologies.

The European Parliament recently approved the “backloading” measure whereby 900 million allowances have been temporarily taken out of the auction schedule to be re-introduced at the end of phase 3.

Looking forward the European Commission has proposed the introduction of a Market Stability Reserve whereby 100 million allowances will be taken off the market when there is an excess of over 400 million in the market and reintroduced when the price rises significantly above the long term average. Meanwhile, commentators have observed that ETS driven leakage seems to be extremely rare, with no definite examples of industries closing down and relocating to other jurisdictions because of the additional costs of the ETS. Some of the lessons learnt from the EU ETS are that:  If free allocation is to be based on historic data (known as grandfathering), then the quality of that historic data is very important. In order to be an effective means of allocation the data must be verified and the allocation process must take into consideration the fact that industry may well be aware of the future use of the data and have acted to over-estimate or inflate emissions data;  Where free allocations are provided, careful attention should be given to the role of banking. If there is no banking then any over allocation has a limited impact, but as we now see in the case of the EU ETS, historic over-allocation alone or combined with other events which contribute to an excess of allowances in the marketplace, can shape the future development of the scheme;  Ex ante allocations are not considered to be effective against leakage and ex post allocation adjusted for actual production are considered to be more appropriate. This latter approach compensates producers for the marginal costs of production rather than projected production.  The impact of leakage should not be over-estimated. There are significant barriers to relocation of industries and as more industrialized countries implement ETS, a greater proportion of export products will be competing against other producers who are likewise captured in an ETS. In contrast to the EU ETS, the proposed Australian Carbon Pricing Mechanism [49] (which is currently not planned to be implemented) avoided free allocation by starting with what amounted to a tax on GHG emissions combined with an extensive re-distribution programme to return the revenues from the tax scheme back into the economy. The first phase of the Australian CPM was a non-trading phase. All captured entities were required to surrender allowance equal to their annual emissions and allowances were available for purchase at a fixed and rising price. This makes the ETS effectively into a tax, but at the same time, gets participants used to the process of acquiring allowances, monitoring, reporting and verification and surrender or cancellation of allowances. The CPM also allowed for the use of offsets for certain land use and farming activities in Australia. In the second phase, the CPM was scheduled to become a fully trading ETS with the auction of allowances.

Although the CPM is not now being implemented, it offers a very interesting alternative approach to the way in which an ETS is introduced and how the scheme can progress to auctioning and price discovery.

86

14.2 ALTERNATIVES TO FREE ALLOCATION As explained above, free allocation could be seen to have had significant negative impacts upon the evolution of the EU ETS and early decisions on allocation may continue to shape the scheme for many years to come. One alternative to allocation is to move much more rapidly towards auctioning combined with ex post support for EITE industries.

In the planned Australian Carbon Pricing Mechanism, the ETS was introduced via a tax so that the impact of the scheme was less dramatic and critically, because entities have already been reporting and paying tax on their emissions, by the time the trading component of the ETS would have started in July 2015, they would have known how much carbon they would need to buy and what they could afford to pay for it.

Ukraine already taxes entities with GHG emissions above relatively small thresholds to the extent that over 11,000 entities pay the tax. By increasing the tax and then phasing it into an ETS, the Ukrainian authorities could follow the route proposed by the Australian CPM and a) avoid the sudden imposition of a new cost and b) ensure that entities know how much they need to buy at auction by the time the trading function of the ETS commences.

14.3 RECOMMENDATIONS ON NATIONAL ALLOCATION 1) Based upon the EU ETS experience of free allocation, it is recommended that free allocation of allowances is avoided if at all possible and replaced with 100% purchase of allowances in the first phase moving to 100% auctioning of allowances in the second and subsequent phases combined with banking of allowances.

2) Relief for EITE industries should be granted via an ex post production based adjustment which addresses the marginal impact of the cost of allowances on the cost of production.

3) The impact of the cost of allowances on goods and services in Ukraine should be addressed via the redistribution of revenues to affected industries and the exposed sectors of the population.

4) In the event that free allocation is used, the data used for the allocation calculations must be monitored and reported using pre-defined methodologies and reporting templates and verified by independent verification bodies in order to ensure that the data is accurate, complete, comparable and transparent. Ideally, data would be collected over a number of years and would also be consistent.

87

15 SOURCES OF INFORMATION 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

22.

23.

24.

25.

26.

27.

28.

29.

Inventory 2011, Submission 2013 v1.1, UKRAINE Presentation: ENERGY STATISTICS OF UKRAINE, Kyiv, 11 October 2011, Valentyna Kruglyak Deputy Director of the Trade Statistics Department, State Statistics Committee of Ukraine METHODOLOGICAL GUIDELINES ON THE ORGANIZATION OF STATE STATISTICAL OBSERVATIONS ON THE USE OF FUEL AND ENERGY, Order of the State Statistics Service of Ukraine of 03.10.2011 # 250 METHODOLOGICAL GUIDELINES ON THE FORMATION OF ENERGY BALANCE, APPROVED by the Order of the State Statistics Service of Ukraine of 23.12.2011 # 374 State Statistics Service of Ukraine - http://www.ukrstat.gov.ua/ Measurement, reporting and verification of greenhouse gas emissions at the level of plants of energy sector of Ukraine, U.S. Agency for International Development (USAID). February 2013.

The strategy of development of the state statistics by 2017, the Ordinance of the Cabinet of Ministers of Ukraine of March 20, 2013 #145-r Determination of GHG reduction potential related to the implementation of policies and measures for low-carbon development and the cost of their implementation, Fund of Target Environmental (Green) Investments, LLC, Analytical Report, within the project Capacity Building for Low Carbon Growth in Ukraine), August 2013.

NZ ETS : http://www.climatechange.govt.nz/emissions-trading-scheme/ RGGI : http://www.rggi.org/rggi California ETS : http://www.arb.ca.gov/regact/2010/capandtrade10/capandtrade10.htm Australia Carbon Pricing Mechanism: http://www.cleanenergyfuture.gov.au/ Tokyo Can and Trade Program: http://www.kankyo.metro.tokyo.jp/en/climate/cap_and_trade.html Inventory 2011, Submission 2013 v1.1, UKRAINE Presentation: ENERGY STATISTICS OF UKRAINE, Kyiv, 11 October 2011, Valentyna Kruglyak Deputy Director of the Trade Statistics Department, State Statistics Committee of Ukraine METHODOLOGICAL PROVISIONS FOR ORGANIZING STATE STATISTICAL OBSERVATIONS OVER UTILIZATION OF FUEL AND ENERGY, Order of the State Statistics Committee of Ukraine dated 03.10.2011 № 250 METHODOLOGICAL PROVISIONS FOR ENERGY BALANCE FORMATION, Order of the State Statistics Committee of Ukraine dated 23.12.2011 № 374 Reviewing Existing and Proposed Emissions Trading Systems, OECD/IEA Nov 2010 “Measurement, reporting and verification of the greenhouse gases emission at the level of energy sector entities of Ukraine”, US International Development Agency (USAID). February 2013 IPCC Guidelines for National Greenhouse Gas Inventories, 2006 ANALYTICL REPORT “Main indices of the system for decentralized heat supply in Ukraine” DIRECTIVE 2003/87/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 13 October 2003 COMMISSION REGULATION (EU) No 601/2012 COMMISSION REGULATION (EU) No 600/2012 Template No. 1: Monitoring plan for the emissions of stationary installations Template No. 4: Annual emissions report of stationary source installations http://ec.europa.eu/clima/policies/ets/monitoring/documentation_en.htm Guidance Document, The Monitoring and Reporting Regulation – General guidance for installations MRR Guidance document No. 1, Version of 16 July 2012 Guidance on Interpretation of Annex I of the EU ETS Directive (excl. aviation activities), 18 March 2010 Ukraine 2012, IEA, 2012 ENERGY POLICIES OF UKRAINE 2012 REVIEW, IEA, 2012 88

30. REVIEWING EXISTING AND PROPOSED EMISSIONS TRADING SYSTEMS, IEA, Nov 2010 31. EMISSIONS TRADING: TRENDS AND PROSPECTS, IEA, December 2007 32. Status of the Domestic Emissions Trading Scheme in Ukraine, THOMSON REUTERS, POINT CARBON, February 2013 33. Mandatory Reporting of Greenhouse Gas Emissions: Instructional Guidance for Operators, California Environmental Protection Agency, December 2008 34. Federal Register / Vol. 75, No. 106 / Thursday, June 3, 2010 / Rules and Regulations 35. Federal Register / Vol. 75, No. 242 / Friday, December 17, 2010 / Rules and Regulations 36. Federal Register / Vol. 74, No. 209 / Friday, October 30, 2009 / Rules and Regulations 37. Technical Support Document for Stationary Fuel Combustion Emissions: Proposed Rule for Mandatory Reporting of Greenhouse Gases, Office of Air and Radiation U.S. Environmental Protection Agency, January 30, 2009 38. Tool for Market Readiness Proposal (MRP), Guidance Document (Version 2) 39. Domestic Emissions Trading: Existing and Proposed Schemes, PMR Technical Note 2, April 10, 2012 40. The World’s Carbon Markets: A Case Study Guide to Emissions Trading – California, EDF, IETA, May, 2013 41. The World’s Carbon Markets: A Case Study Guide to Emissions Trading – European Union, EDF, IETA, May, 2013 42. The World’s Carbon Markets: A Case Study Guide to Emissions Trading – Kazakhstan, EDF, IETA, May, 2013 43. Solving the MRV challenge for new market-based mechanisms: What can past experience teach us?, Öko-Institut e.V., Institut für Politikwissenschaft (IPZ), 23 November 2011 44. Greenhouse Gas Monitoring Plan, (Template), McWane, Inc., December 8, 2009 45. EU ETS : http://ec.europa.eu/clima/policies/ets/index_en.htm 46. NZ ETS : http://www.climatechange.govt.nz/emissions-trading-scheme/ 47. RGGI : http://www.rggi.org/rggi 48. California ETS : http://www.arb.ca.gov/regact/2010/capandtrade10/capandtrade10.htm 49. Australia Carbon Pricing Mechanism: http://www.cleanenergyfuture.gov.au/ 50. Tokyo Can and Trade Program: http://www.kankyo.metro.tokyo.jp/en/climate/cap_and_trade.html 51. 2011 National GHG Emissions Inventory in Ukraine, submission 2013 v1.1 52. IPCC Guidelines for National Greenhouse Gas Inventories, 2006 53. “Measurement, reporting and verification of the greenhouse gases emission at the level of energy sector entities of Ukraine”, US International Development Agency (USAID). February 2013 54. DIRECTIVE 2003/87/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 13 October 2003 55. COMMISSION REGULATION (EU) No 601/2012 56. COMMISSION REGULATION (EU) No 600/2012 57. Template No. 1: Monitoring plan for the emissions of stationary installations Template No. 4: Annual emissions report of stationary source installations http://ec.europa.eu/clima/policies/ets/monitoring/documentation_en.htm 58. Guidance Document, The Monitoring and Reporting Regulation – General guidance for installations MRR Guidance document No. 1, Version of 16 July 2012 59. Guidance on Interpretation of Annex I of the EU ETS Directive (excl. aviation activities), 18 March 2010 60. Policy and steps towards a low carbon growth strategy for Ukraine / Prepared for United Nations Development Programs. Thomson Reuters Point Carbon, London, 2013 – 63 pages 61. ANALYTICAL REPORT “Main indices of the system for decentralized heat supply in Ukraine”, Ukrainian Environment Protection Society 2013.

62. Ukraine 2012, IEA, 2012 89

63.

64.

65.

66.

67.

68.

69.

70.

71.

72.

73.

ENERGY POLICIES OF UKRAINE 2012 REVIEW, IEA, 2012 REVIEWING EXISTING AND PROPOSED EMISSIONS TRADING SYSTEMS, IEA, Nov 2010 EMISSIONS TRADING: TRENDS AND PROSPECTS, IEA, December 2007 Status of the Domestic Emissions Trading Scheme in Ukraine, THOMSON REUTERS, POINT CARBON, February 2013 Mandatory Reporting of Greenhouse Gas Emissions: Instructional Guidance for Operators, California Environmental Protection Agency, December 2008 Federal Register / Vol. 75, No. 106 / Thursday, June 3, 2010 / Rules and Regulations Federal Register / Vol. 75, No. 242 / Friday, December 17, 2010 / Rules and Regulations Federal Register / Vol. 74, No. 209 / Friday, October 30, 2009 / Rules and Regulations Technical Support Document for Stationary Fuel Combustion Emissions: Proposed Rule for Mandatory Reporting of Greenhouse Gases, Office of Air and Radiation U.S. Environmental Protection Agency, January 30, 2009 Tool for Market Readiness Proposal (MRP), Guidance Document (Version 2) Domestic Emissions Trading: Existing and Proposed Schemes, PMR Technical Note 2, April 10, 2012

74. The World’s Carbon Markets: A Case Study Guide to Emissions Trading – California, EDF, IETA, May, 2013 75. The World’s Carbon Markets: A Case Study Guide to Emissions Trading – European Union, EDF, IETA, May, 2013 76. The World’s Carbon Markets: A Case Study Guide to Emissions Trading – Kazakhstan, EDF, IETA, May, 2013 77. Reviewing Existing and Proposed Emissions Trading Systems, OECD/IEA 2010 78. EU ETS : http://ec.europa.eu/clima/policies/ets/index_en.htm 79. NZ ETS : http://www.climatechange.govt.nz/emissions-trading-scheme/ 80. RGGI : http://www.rggi.org/rggi 81. California ETS : http://www.arb.ca.gov/regact/2010/capandtrade10/capandtrade10.htm 82. Australia Carbon Pricing Mechanism: http://www.cleanenergyfuture.gov.au/ 83. Tokyo Can and Trade Program: http://www.kankyo.metro.tokyo.jp/en/climate/cap_and_trade.html 84. ISO 14064-1:2006 Greenhouse gases - Part 1: Specification with guidance at the organizational level for quantification and reporting of greenhouse gas emissions and removals (IDT) 85. National Greenhouse and Energy Reporting Act 2007, No. 175, 2007, Australia 86. ISO 14064-3:2006 Greenhouse gases - Part 3: Specification with guidance for the validation and verification of greenhouse gas assertions (IDT)

90

APPENDIX 1: DETAILS OF EXISTING DATA COLLECTION Table 27. Overall table (list) of forms of state statistical observations for 2013 Statistics on industrial production Statistics on production and distribution of electricity, heat, gas, water Statistics on construction permits Statistics on construction enterprises activities Statistics on capital investment Statistics on foreign economic activity investments Statistics on investment projects Statistics on fixed assets Statistics on agriculture Statistics on fisheries Statistics on market non-financial services Statistics on transport Statistics on communications and informatics Statistics on science Statistics on innovations Statistics on domestic trade Statistics on energy Statistics on foreign trade in goods Statistics on foreign trade in services Statistics on consumer prices Statistics on producer prices Statistics on enterprisesâ&#x20AC;&#x2122; finances Structural surveys of enterprises Environment statistics Statistics on forestry, hunting industry and natural protected areas Statistics on real estate Legal and political statistics Statistics on education Statistics on healthcare Statistics on culture Statistics on employment Statistics on wages and social and labor relations Household Survey Statistics on business activity of enterprises Statistics on tourism Statistics on defense and industrial complex Maintenance of the register of statistical units The tables below present the forms of statistical reporting on energy and industry sectors where there are the highest GHG emissions in Ukraine.

91

Table 28. Statistics on energy #

Form

Form index

Frequency

Report on remains and use of 1

energy materials and products of oil processing

4-mtp

annual

(05.09.2011 №222) Report on remains and use of 2

energy materials and products of oil processing

4-mtp (sv)

annual

(05.09.2011 №222)

Submitting entity

Submitted to

Legal entities, separate divisions of legal entities of all types of

The state statistics

economic activity that use and have remains of energy materials

agency at the place

and products of oil processing

of work

Legal entities, separate divisions of legal entities of all types of

The state statistics

economic activity that use and have remains of energy materials

agency at the place

and products of oil processing

of work

Timeframe not later than January 20

not later than January 20

not later than Report on remains and use of 3

energy materials and products of oil processing

4-mtp

monthly

(05.09.2011 №222)

and electricity

11- mtp

annual

(05.09.2011 №222)

and electricity

6

production of certain products and works (05.09.2011 №222) Formation and utilization of

7

11-er

agency at the place

the reporting

and products of oil processing

of work

economic activity the average daily standard fuel consumption of which is 2 t or more, or 15 Gcal and more of heat, or with

annual

economic activity the average daily standard fuel consumption of which is less than 2 tons of standard fuel, or heat less than 15 Gcal or with electrical output of less than 100 kW

11-mtp annual (fuel) 11-mtp

secondary energy resources (15.07.2010 №281)

economic activity that use and have remains of energy materials

Legal entities, separate divisions of legal entities of all types of

(05.09.2011 №222) Actual fuel consumption for

2nd day after

electrical output of 100 kW and more

Report on the use of fuel, heat 5

The state statistics

Legal entities, separate divisions of legal entities of all types of

Report on the use of fuel, heat 4

Legal entities, separate divisions of legal entities of all types of

annual (ver)

Together with the report by form #11-mtp - legal entities, separate units of legal entities of all types of economic activity

Together with the report by form #11-mtp - legal entities, separate units of legal entities of all types of economic activity

The state statistics

month

not later than

agency at the place of work The state statistics

January 20 not later than

agency at the place of work The state statistics

January 20

not later than

agency at the place of work The state statistics

January 20 not later than

agency at the place of work

January 20 92

Table 29. Statistics on production and distribution of electricity, heat, gas, water #

Form

Form

Frequenc

index

y

natural (liquefied) gas

Submitted to

Legal entities, separate

Report on the supply of 1

Submitting entity

1-gas

annual

(01.09.2010 №371)

divisions of legal entities

The state statistics

that supply gas to the

agency by location

population and to utilities

Timeframe

not later than January 20

Legal entities, separate divisions of legal entities (TPP, СРP, HPP, SDPP, NPP, enterprises of heat Report on the supply of 2

heat

networks and other 1-tep

annual

(01.09.2010 №371)

enterprises and organizations) that have

The state statistics agency by location

not later than January 20

boilers and heat networks and supply heat and hot water to the population and to utilities Legal entities (enterprises), separate divisions of legal entities

Report on the operation of water supply 3

(separate water supply network)

that have water supply, 1-water supply

annual

separate water supply

The state statistics

networks and supply

agency by location

water to the population

(01.09.2010 №371)

not later than January 20

and enterprises, institutions, organizations for domestic needs

Report on the operation 4

of power plant (09.10.2012 №413)

Legal entities with power 6-tp (es)

annual

plants of 500 kW and more

The state statistics agency by location

not later than January 20

93

Table 30. Statistics on industrial production #

Form

Form index

Frequency

Submitting entity

Submitted to

Timeframe

Legal entities,

1

Report on the

separate divisions

The state statistics

production and sale of

of legal entities

agency by location

engaged in

(site of production

industrial

activities)

industrial products

1P-NPP

Annual

(07.08.2012 â&#x201E;&#x2013;331)

not later than February 9

activities Legal entities,

Urgent report on industrial production (goods and services), 2

by type

1-P

Monthly

not later th

separate divisions

The state statistics

than 4

of legal entities

agency by location

day after

engaged in

(site of production

the

industrial

activities)

activities

period

(01.08.2012 â&#x201E;&#x2013;325) Individual entrepreneurs engaged in industrial activities

reporting

not later th

The state statistics

than 4

agency by location

day after

(site of production

the

activities)

reporting period

Monthly report on economic indicators by types of economic

Legal entities,

activity related to mining and quarrying, 3

processing, supply of electricity, gas, steam and conditioned air, water supply, sewage,

1-PE

Monthly

not later

separate divisions

The state statistics

than 12th

of legal entities

agency by location

day after

engaged in

(site of production

industrial

activities)

activities

the reporting period

waste management (26.11.2012 â&#x201E;&#x2013;482)

94

APPENDIX 2. EXAMPLE OF STATISTICAL FORM #2-TP (AIR) The amount of carbon dioxide emission to the atmosphere from stationary sources in 2011

Total, t

All types of economic activity

Increase/

Distribution,

In % by

decrease (-)

amount of

2010

compared with

emissions,

2010

%

Share in the total amount of emissions, %

202221962.2

122.5

37180174.78

100

4623.3

824008.404

120.8

142070.379

0.4

1102.8

790456.302

121.6

140438.832

0.4

1087.5

33552.102

105.1

1631.547

0

1649.3

535.614

327.4

372.039

0

882.1

Mining industry

3795628.338

156.8

1375293.798

1.9

443.4

Extraction of fuel and energy minerals

2340098.401

110.7

225462.447

1.2

314.8

Mining of coal, lignite and peat

1456978.964

122.3

265652.217

0.7

206.3

857069.976

95.7

-38102.999

0.4

2386.3

26049.461

92.6

-2086.771

0

2191

minerals

1455529.937

476.1

1149831.351

0.7

1290.6

Extraction of metal ores

1309511.382

866.8

1158432.714

0.6

1412.8

Agriculture, hunting industry, forestry Agriculture, hunting industry and related services Forestry and related services Fishing, fish breeding

Extraction of carbohydrates and related services Mining of uranium and thorium ores Mining of minerals, except for fuel and energy

Other sectors of mining industry

146018.555

94.4

-8601.363

0.1

726.8

89501083.23

151.3

30327472.25

44.3

6451.8

products

2674291.342

107.2

178768.609

1.3

8377.8

Production of food, beverages

2655507.949

107.3

180245.743

1.3

8348.8

18783.393

92.7

-1477.134

0

16443.3

fur goods

38927.573

103

1144.697

0

4148.1

Textile production

31593.538

107

2068.596

0

4417.6

7334.035

88.8

-923.899

0

3284.9

11246.287

87

-1687.592

0

2785.7

322285.043

115.8

43949.712

0.2

8215.2

wooden goods, except furniture

322285.043

115.8

43949.712

0.2

8215.2

Pulp and paper industry, publishing

291284.929

105.3

14703.446

0.1

5239.3

284798.853

105.4

14646.835

0.1

5407.5

6486.076

100.9

56.611

0

2214.6

and nuclear materials

5749870.84

99.1

-49825.801

2.8

6170.1

Chemical production

7190732.972

124.5

1413855.396

3.6

10610.7

48094.286

41.7

-67204.882

0

1470.9

Processing industry Production of food, beverages and tobacco

Production of tobacco products Textile industry, production of clothes, fur and

Production of clothes, fur and fur goods Production of leather, leather goods and other materials Processing of timber and production of wooden goods, except furniture Processing of timber and production of

Production of paper pulp, paper, paperboard and related goods Publishing, printing and reproduction of recorded media Production of coke, products of oil processing

Production of rubber and plastic products

95

Production of other non-metallic mineral products

7035735.043

200.6

3528084.035

3.5

12716.8

fabricated metal products

64073136.96

162.3

24586898.24

31.7

5812.9

Metallurgical production

64005412.11

162.3

24578694.33

31.7

5823.5

Production of fabricated metal products

67724.847

113.8

8203.906

0

2128.2

Production of machinery and equipment

1198847.042

241

701372.265

0.6

11588.5

383069.928

95.3

-18946.998

0.2

9696.6

1863.907

106.7

117.652

0

17071.9

358591.344

97.4

-9470.251

0.2

9592.8

4047.975

68.4

-1869.416

0

13789.3

18566.702

70.6

-7724.983

0

10783.5

426460.253

107.4

29213.422

0.2

6380.9

33143.02

105.2

1633.053

0

4352.7

393317.233

107.5

27580.369

0.2

6641.7

Metallurgical production and production of

Production of electrical, electronic and optical equipment Production of office equipment and computers Production of electrical machinery and equipment Production of equipment for radio, television and communication Production of medical, measuring and optical instruments, watches Production of vehicles and equipment Production of motor vehicles, trailers and semitrailers Production of other vehicles Other industries

57100.729

63.5

-32852.297

0

3411.7

Production of furniture; other goods

33260.959

132.3

8124.384

0

3638.8

23839.77

36.8

-40976.681

0

3138.4

100537627.8

105.1

4860919.953

49.7

5569.1

100369375.3

105.1

4863497.358

49.6

5579.5

water

168252.491

98.5

-2577.405

0.1

2641.7

Construction

601818.787

87.7

-84061.453

0.3

2965.9

678401.7

283.8

439362.995

0.3

4984.2

451379.47

10089.5

446905.704

0.2

10425.2

176754.557

96.5

-6369.269

0.1

2093.1

Treatment of waste Production of electricity, gas and water Production and distribution of electricity, gas, steam and hot water Collection, purification and distribution of

Sale, repair of motor vehicles, household appliances and individual supplies Sale of motor vehicles and motorcycles, their maintenance and repair Wholesale trade and mediation in wholesale trade Retail trade, repair of household appliances and individual supplies

50267.673

97.7

-1173.44

0

6007.9

Operation of hotels and restaurants

10520.452

106.1

603.901

0

4923.7

Transport and communication

5711039.524

102

110720.669

2.8

2922.7

Ground-based transport

5215052.875

101.2

61514.872

2.6

2886.7

Water transport

1248.895

77.6

-360.335

0

697.6

Air transport

2614.909

124.7

517.423

0

2333.6

483952.747

111.1

48405.514

0.2

3400.2

Post and telecommunication

8170.098

108.5

643.195

0

3724.8

Financial activity

6549.654

741.3

5666.07

0

35981.2

Monetary and financial intermediation

6549.654

741.3

5666.07

0

35981.2

233128.126

119.9

38681.851

0.1

4047.8

Additional transport services and auxiliary operations

Real estate operations, lease, engineering and

96

services for entrepreneurs Real estate operations

149364.921

122.4

27369.802

0.1

8691

Renting of machinery and equipment, lease of household appliances and individual supplies Informatization activities Research and development

457.353

98.5

-6.867

0

5792.2

98.316

117.9

14.911

0

930.3

59894.387

101.5

909.483

0

11657.3

Legal services, accounting, engineering, services for entrepreneurs

23313.149

180.5

10394.522

0

664.5

144158.802

102.7

3740.542

0.1

2611.8

53786.491

126.3

11185.041

0

2420.3

116330.522

84.2

-21757.679

0.1

2561.3

7344.687

19.6

-30095.574

0

239.6

2700.065

9.1

-27099.984

0

94.4

recreation and entertainment

3099.294

55.9

-2447.098

0

2461

Individual services

1545.328

73.8

-548.492

0

1968

Public administration Education Health care and social assistance Utility and individual services, activity in the field of culture and sport Sanitary services, garbage collection and waste destruction Activity in the field of culture and sport,

97

APPENDIX 3. STATISTICAL FORM 11-MTP (ANNUAL) REPORT ON THE USE OF FUEL, HEAT AND ELECTRICITY; Statistical reporting form #11-mtp Report on fuel, heat and electricity use Example for category 40.11 Sheet

1319

Report on the use of fuel, heat and electricity in 2011 40.11

Ukraine Production of electricity

1. Fuel (in conversion to standard-7000 kcal/kg) form 11-mtp table 1 ----------------------------------------------------------------------------------------------------------------------| | | Produced | Actual consumption |Consumption for all produced output | | | products | per unit of | (works) in the reporting | | | | (works) | production (work),kg| period, tsf | | Products and | | |---------------------|----------------------------------| | works | # | in |in the | in |by actual | | decrease | | |line | the |correspond| the |specific | | (-) | | | | reporting|ing period|reporting |consumption| actual |increase | | | | period| of the | period |in the | | (+) | | | | | previous| |correspond.| | of actual| | | | | year | |period of | |consumption | | | | | |the prev.year | | ----------------------------------------------------------------------------------------------------------------------| | А | B | 1 | 2 | 3 | 4 | 5 | 6 | ----------------------------------------------------------------------------------------------------------------------Electricity produced by CHP of general use working on organic fuel, thous. kWh 16010 12983071 307.4 306.8 3990348 3983418 -6930 Electricity produced by CHP working on fossil fuel,block plants, thous. kWh 16011 45243 270.5 243.4 12240 11011 -1229 Electricity produced by CHP working on Fossil fuel not connected to the grid, thous. kWh 16012 1886 221.6 180.3 418 340 -78 Electricity produced by thermal power plants of general use, except for CHP working on fossil fuel, thous. kWh 16013 67448412 396.9 394.5 26772727 26610179 -162548 Heat produced and supplied by power plants, Gcal 16020 21303693 156.3 155.3 3328853 3309149 -19704 Heat produced and supplied by boilers, Gcal 16030 8868835 157.5 157.1 1396626 1393118 -3508 Ceramic, non – fire resistant construction brick, except for goods made of firestone flour or diatomaceous earth, thous.units of standard brick 18003 657 153.7 109.6 101 72 -29 Other production consumption 19010 X X X 17079 16994 -85 Total production consumption of fuel 19100 X X X 35520419 35324702 -195717 Consumption of fuel as raw material and for non-fuel needs 19150 X X X 950 841 -109 including as raw material 19151 X X X 126 126 0 Total fuel consumtion (lines 9100+9150) 19300 X X X 35521369 35325543 -195826 ---------------------------------------------CF

Sheet

1320

Report on the use of fuel, heat and electricity for 2011 40.11

Ukraine Production of electricity

2. Heat (steam and hot water) form 11-mtp table 1 ----------------------------------------------------------------------------------------------------------------------| | | Produced | Actual consumption | Consumption for all produced | | | | products |per unit of | output (works) in the reporting | | | | (works) | production(work), megacal | period, gigacal | Products and | | |---------------------|----------------------------------| | works | # | in the| in the | in | by actual | | decrease | | |line | reporting|correspond| the | specific | | (-) | | | | period |ing period|reporting |consumption| actual | increase | | | | | of the | period | in the | | (+) | | | | | previous | |correspond.| | of actual| | | | | year | | period of | |consumption | | | | | |the prev.year | | ----------------------------------------------------------------------------------------------------------------------| | А | B | 1 | 2 | 3 | 4 | 5 | 6 | ----------------------------------------------------------------------------------------------------------------------Losses of heat in main heating networks of energy systems of the Minisrtry of Energy and Coal Industry of Ukraine, gigacal 20050 25392335 17.2 17.7 4356806 4483068 126262 Other production consumption 29010 X X X 282627 266788 -15839 Total consumption of heat 29100 X X X 378459 383283 4824 In addition, supplied(sold) total 29650 X X X X 26957446 from line 9650: supplied from own sources 29655 X X X X 26957446 sources of inflow from own production at power plants, gigacal 29710 22553916 X X X X in boilers, gigacal 29720 8868835 X X X X in electric boilers, gigacal 29730 132 X X X X in other plants, gigacal 29760 352724 X X X X from other sources: from other enterprises and organizations, gigacal 29810 47639 X X X X

|

---------------------------------------------CF

Sheet

1321

Report on the use of fuel, heat and electricity

98

in 40.11

2011

Ukraine Production of electricity

3. Electricity form 11-mtp table 1 ----------------------------------------------------------------------------------------------------------------------| | | Produced | Actual consump. per | Cosumpt. for all produced output | | | | products | unit of production | (works) in the reporting | | | | (works) | (work), kWh | period, thous. kWh | | Products and | | |---------------------|----------------------------------| | works | # | in the| in the | in | by actual | | decrease | | |line | reporting|correspond| the | specific | | (-) | | | | period |ing period|reporting | consumpt. | actual | increase | | | | | of the | period | of the | | (+) | | | | | previous | |correspond.| | of actual| | | | | year | | period of | |consumpt. | | | | | | |the prev.year | | ----------------------------------------------------------------------------------------------------------------------| | А | B | 1 | 2 | 3 | 4 | 5 | 6 | ----------------------------------------------------------------------------------------------------------------------Losses of electricity in the grids of energy systems of the Minisrtry of Energy and Coal Industry of Ukraine, thous. kWh 30040 23213421 11.9 11.4 2759024 2648285 -110739 Electricity produced by CHP of common use working on fossil fuel, thous. kWh 36010 760556 68.3 70.5 51958 53615 1657 Electricity produced by TPP of common use, except for CHP working on fossil fuel, thous. kWh 36013 15985 37.0 37.0 592 592 0 Heat produced and supplied by power plants, Gcal 36020 478607 71.1 58.5 34035 27980 -6055 Heat produced and supplied by boilers, Gcal 36030 1546442 26.6 27.3 41078 42241 1163 Liquid air, compressed air (except for 40.30.

20 in pipelines), t 36390 53576 130.0 123.4 6965 6610 -355 Carbon electric steel for casting, t 36450 1247 1083.4 1618.3 1351 2018 667 Carbides of defined and indefinite composition, t 37270 771 5189.4 5099.9 4001 3932 -69 Ceramic, non – fire resistant construction brick, except for goods made of firestone flour or diatomaceous earth, thous.units of standard brick 38003 657 307.5 307.5 202 202 0 Water distribution services, thous. cubic m 38930 21302 950.5 966.5 20247 20589 342 Purified wastewater, thous. cubic m 38935 4482 556.0 557.6 2492 2499 7 Collection and treatment of wastewater, thous. cubic m 38936 7373 662.4 664.5 4884 4899 15 Other production consumption 39010 X X X 1914329 1914370 41 Total consumption of electricity 39100 X X X 2121231 2118870 -2361 In addition, supplied (sold) total 39650 X X X X 191516813 from line 9650: supplied from own sources 39655 X X X X 174237345 sources of inflow: from own production thous. kWh 39700 175894135 X X X X X from other sources: from other enterprises and organizations, thous. kWh 39800 20389833 X X X X X

---------------------------------------------CF

Sheet

1322

Sheet

1323

Number of enterprises included in the report and results of use of fuel and energy resources in 2011 Ukraine 40.11 Production of electricity ----------------------------------------------------------------------------------------------------| Indicators | # | | | | | |line | Fuel | Heat | Electricity | ----------------------------------------------------------------------------------------------------| | А | B | 1 | 2 | 3 | ----------------------------------------------------------------------------------------------------Total number of enterprises 61000 50 20 53 including those with excess consumption 62000 18 2 8 Consumption for all produced output by actual specific consumpt. in the corresponding period of the previous year 63000 7158388 22201 342939 Actual consumption by enterprises with excess consumption 64000 7237149 27816 346506 ---------------------------------------------CF

Actual consumption of fuel for production of certain types of products and works in 2011 40.11

Ukraine Production of electricity

form 11-mtp(fuel) table 1 -------------------------------------------------------------------------------------------------------------------------------| | | | Including by types | | | | |---------------------------------------------------------------------------------------| | | | | coal | | peat |briquettes| coke | | | | | Consumed |--------------------------------| | non | pellets |and semi | other | | | | fuel, | hard | | firewood| agglome |from hard | coke | types | | Products and | # | total, t |---------------------| | for | rated |and brown |from hard | of solid | | works |line | standard | |including | brown | heating |fuel | coal |coal, | fuel | | | | fuel | total | for | (lignite)| | | | gas | | | | | | |coking | | | | (lignite)| coke | | -------------------------------------------------------------------------------------------------------------------------------| | А | B | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | -------------------------------------------------------------------------------------------------------------------------------Electricity produced

by CHP of common use,

99

t sf 46010 Electricity produced

by CHP – block plants, t sf 46011 Electricity produced

by CHP not connected to energy system, t sf 46012 Electricity produced

by TPP of common use, except for CHP, t sf 46013 Heat produced by power plants, t sf 46020 Heat produced by boilers, t sf 46030 Other production consumption 49010 Total production consupmt. of fuel 49100 Consumpt. of fuel as raw material and for non-fuel needs 49150 including, as raw material 49151 Total consumpt. of fuel in conversion to standard (lines 9100+9150) 49300 Total consumpt. of fuel (in actual measurement) 49580 Average caloric equivalents for conversion of natural fuel to standard 49590

3983418

1210272

0

0

0

0

0

0

0

11011

0

0

0

0

0

0

0

0

340

0

0

0

0

0

0

0

0

26610179

26001429

0

0

0

0

0

0

0

3309149

361618

0

0

0

0

0

0

0

1393118

1213

0

0

0

0

0

0

0

17066

15184

0

0

0

0

0

55

0

35324702

27589867

0

0

0

0

0

55

0

841

536

0

0

0

0

0

154

0

126

0

0

0

0

0

0

0

0

35325543

27590403

0

0

0

0

0

209

0

X

37991876

0

0

0

0

0

220

X

X

0.726

0.000

0.000

0.000

0.000

0.000

0.950

X

--------------------------------------------Sheet

1324

Sheet

1325

Actual consumption of fuel for production of certain types of products and works in 2011 40.11

Ukraine Production of electricity

form 11-mtp (fuel) table 1 -------------------------------------------------------------------------------------------------| | | Including by types | | | |---------------------------------------------------------------------| | | | crude | gas | light | burning | diesel | other | | Products and | # | oil |condensate| oil | heavy | fuel | heavy | | works |line | | | products | fuel | (gasoil) | oil | | | | | | | oil | | products | | | | | | | | | | | | | | | | | | | -------------------------------------------------------------------------------------------------| | А | B | 10 | 11 | 12 | 13 | 14 | 15 | -------------------------------------------------------------------------------------------------Electricity produced

by CHP of common use, t sf 46010 0 0 0 687 0 0 Electricity produced

by CHP – block plants, t sf 46011 0 0 0 10948 63 0 Electricity produced

by CHP not connected to energy system, tsf 46012 0 0 0 0 0 0 Electricity produced

by TPP of common use, except for CHP, t sf 46013 0 0 0 54015 43 0 Heat produced by power plants, tsf 46020 0 0 0 4564 0 0 Heat produced by boilers, t sf 46030 0 0 0 44 0 0 Other production consumption 49010 0 0 0 96 652 0 Total production consupmt. of fuel 49100 0 0 0 70622 758 0 Consumpt. of fuel as raw material and for non-fuel needs 49150 0 0 1 0 7 87 including, as raw material 49151 0 0 1 0 7 87 Total consumpt. of fuel in conversion to standard (lines 9100+9150) 49300 0 0 1 70622 765 87 Total consumpt. of fuel (in actual measurement) 49580 0 0 X 51445 524 X Average caloric equivalents for conversion of natural fuel to standard 49590 0.000 0.000 X 1.373 1.460 X ---------------------------------------------

Actual consumption of fuel for production of certain types of products and works

100

in 2011 40.11

Ukraine Production of electricity

form 11-mtp (fuel) table 1 ---------------------------------------------------------------------------------------------| | | Including by types | | | |-----------------------------------------------------------------| | | | | | |combustible |gas obtained|other types | | Products and | № | natural | coal | blast | synthetic|during |of oil | | works |line | gas |gas | furnace | and |converter |products | | | | | | gas | other |steel |and other | | | | |(in coke | | offgases |making |combustible| | | | |ovens) | | | |and offgases| ---------------------------------------------------------------------------------------------| | А | B | 16 | 17 | 18 | 19 | 20 | 21 | ---------------------------------------------------------------------------------------------Electricity produced

by CHP of common use, t sf 46010 2772459 0 0 0 0 0 Electricity produced

by CHP – block plants, t sf 46011 0 0 0 0 0 0 Electricity produced

by CHP not connected to energy system, tsf 46012 340 0 0 0 0 0 Electricity produced

by TPP of common use, except for CHP, t sf 46013 554692 0 0 0 0 0 Heat produced by power plants, tsf 46020 2942967 0 0 0 0 0 Heat produced by boilers, t sf 46030 1391861 0 0 0 0 0 Other production consumption 49010 1037 0 0 0 0 42 Total production consupmt. of fuel 49100 7663358 0 0 0 0 42 Consumpt. of fuel as raw material and for non-fuel needs 49150 0 0 0 0 0 56 including, as raw material 49151 0 0 0 0 0 31 Total consumpt. of fuel in conversion to standard (lines 9100+9150) 49300 7663358 0 0 0 0 98 Total consumpt. of fuel (in actual measure 49580 6547774 0 0 X X X Average caloric equivalents for conversion of natural fuel to standard 49590 1.170 0.000 0.000 X X X

---------------------------------------------CF

Sheet

1326

Sheet

1327

Formation and utilization of secondary energy resources in 2011 Ukraine Production of electricity I. Secondary fuel resources form 11-mtp(ver) table 1 ----------------------------------------------------------------------------------------------------| | |Output and utilization of secondary fuel resoures,| | | | t of standard fuel | | | |--------------------------------------------------| | Indicator | # | | actually | | | | |line | annual |used at the | sold | losses | | | | output | | | | | | | |enterprises | | | ----------------------------------------------------------------------------------------------------| | А | B | 1 | 2 | 3 | 4 | ----------------------------------------------------------------------------------------------------Total secondary combustible resources 10001 11 11 0 0 of them: waste wood 10007 5 5 0 0 other types 10008 6 6 0 0 40.11

---------------------------------------------CF Formation and utilization of secondary energy resources in 2011 Ukraine Production of electricity III. The use of waste energy potential of technological processes (cogeneration) form 11-mtp (ver) table 1 ---------------------------------------------------------------------------------------------------------------------------| | | | |Duration of operation, | Volume of production | | | | | | years | per year | | | # | Plant | Number of |------------------------|-----------------------| | Indicator |line | capacity, | plants, | up to 10 | 10 years |electricity| heat, | | | | rW | units | years | and more | | | | | | | | | | thous. kWh| Gcal | ---------------------------------------------------------------------------------------------------------------------------| | А | B | 1 | 2 | 3 | 4 | 5 | 6 | ----------------------------------------------------------------------------------------------------------------------------Waste heat utilization plants 30003 1130 2 2 0 1886 2309 40.11

101

APPENDIX 4. STATISTICAL FORM 4-MTP (ANNUAL) REPORT ON THE REMAINS AND USE OF ENERGY MATERIALS AND PRODUCTS OF OIL PROCESSING Example for the Section – Ukraine total sheet -

1

REPORT ON THE REMAINS AND USE OF ENERGY MATERIALS AND PRODUCTS OF OIL PROCESSING for 2011 SECTION 1. REMAINS AND USE OF ENERGY MATERIALS AND PRODUCTS OF OIL PROCESSING form 4-MTP (semi-annual), table 1 00 UKRAINE 0 Total ---------------------------------------------------------------------------------------------------------------------------------| | | | |Rem. at the beg. of report. period | Rem. at the end of report. period | | Type of fuel | Unit of |Line| Code by NPP|-----------------------------------|------------------------------------| | | measure |code| | total | among | among | total | among | among | | | | | | |consumers |suppliers | |consumers | suppliers | |------------------------|-----------|------------------------------|------------------------------------------------------------| | А | B | C | D | 1 | 2 | 3 | 4 | 5 | 6 | ---------------------------------------------------------------------------------------------------------------------------------Hard coal – total tonnes 100 10.10.10.010 7469717.8 4882962.2 2586755.6 7988084.9 6001928.1 1986156.8 of it: hard coal for coking tonnes 101 10.10.11.300 566188.3 565404.1 784.2 609806.4 609477.4 329.0 antracite tonnes 102 10.10.11.500 1436961.6 468418.6 968543.0 1514257.4 716854.1 797403.3 Briquettes, pelettes and similar types of solid fuel from hard coal tonnes 110 10.10.12 262.3 262.3 0.0 250.7 250.7 0.0 Brown coal (lignite) tonnes 115 10.10.10.020 3471.3 1142.0 2329.3 1993.3 1619.3 374.0 Briquettes, pelettes and similar types of solid fuel from brown coal (lig nite) tonnes 120 10.20.10.500 2182.0 2047.7 134.3 1018.6 913.8 104.8 Non agglomerated peat fuel tonnes 130 10.30.10.011 134249.0 103388.7 30860.3 206383.8 169668.8 36715.0 Peat briquettes and semi briquettes tonnes 140 10.30.10.020 34409.9 32711.3 1698.6 31810.9 29542.7 2268.2 Crude oil tonnes 150 11.10.10.310 204039.4 121839.6 82199.8 286415.6 208795.9 77619.7 Gas condensate tonnes 160 11.10.10.500 19893.6 12617.8 7275.8 27247.7 16888.0 10359.7 Natural gas thous.cub.m 170 11.10.20.020 16594652.6 527.1 16594125.5 12752201.8 974.3 12751227.5 Combustible shales tonnes 180 11.10.40.100 0.1 0.1 0.0 0.0 0.0 0.0 Firewood for heating solid cub.m 190 02.01.14.100 513844.5 320461.2 193383.3 537524.5 360503.1 177021.4 Other types of primary fuel t sf 200 24521.6 23460.0 1061.6 42094.4 33091.9 9002.5 Industrial products and sludge of concentration plants of steel industry tonnes 210 17164.2 17164.2 0.0 22959.8 22959.8 0.0 Coke and semicoke from hard coal, brown coal and peat tonnes 220 23.10.10 274356.4 273218.5 1137.9 285922.6 285591.7 330.9 Aviation gasoline tonnes 230 23.20.11.400 138.7 138.7 0.0 308.1 308.1 0.0 Motor gasoline tonnes 240 23.20.11.500 374770.9 70122.2 304648.7 311316.8 69694.4 241622.4 Jet gasoline fuel tonnes 250 23.20.12.000 96.1 95.1 1.0 39.8 39.1 0.7 Other light fractions tonnes 260 23.20.13 3649.5 2830.5 819.0 8175.1 7616.8 558.3 Kerosene-type jet fuel tonnes 270 23.20.14.010 18636.6 2398.0 16238.6 21100.8 4274.7 16826.1 Kerosene for tech purposestonnes 280 23.20.14.021 2528.9 2516.9 12.0 2021.0 2002.2 18.8 Lighting kerosene tonnes 290 23.20.14.022 442.9 442.9 0.0 583.7 583.7 0.0 Gasoils (diesel fuel) tonnes 300 23.20.15 420733.2 245635.7 175097.5 459765.7 265304.8 194460.9 Other medium fractions tonnes 310 23.20.16 9442.8 9364.2 78.6 7024.2 6931.2 93.0 Burning heavy fuel oil tonnes 320 23.20.17 336678.2 238809.0 97869.2 331223.2 243497.9 87725.3 Lubricating oils for purification tonnes 330 23.20.18.300 89.3 30.2 59.1 167.8 50.3 117.5

sheet -

2

REPORT ON THE REMAINS AND USE OF ENERGY MATERIALS AND PRODUCTS OF OIL PROCESSING for 2011 SECTION 1. REMAINS AND USE OF ENERGY MATERIALS AND PRODUCTS OF OIL PROCESSING Form 4-MTP (semi-annual), table 1 UKRAINE 0 Total ---------------------------------------------------------------------------------------------------------------------------------| А | B | C | D | 1 | 2 | 3 | 4 | 5 | 6 | ---------------------------------------------------------------------------------------------------------------------------------Lubricating oils tonnes 335 23.20.18.500 47586.0 32549.0 15037.0 49588.3 29667.3 19921.0 Motor oils tonnes 340 23.20.18.510 20447.2 10767.2 9680.0 18985.2 10347.3 8637.9 Hydraulic oils tonnes 350 23.20.18.520 1561.0 1271.6 289.4 1756.2 1442.4 313.8 Industrial oils tonnes 360 23.20.18.530 10224.3 8416.6 1807.7 7251.9 4713.8 2538.1 Electrical insulating oilstonnes 370 23.20.18.540 2278.8 2197.2 81.6 2073.9 2000.6 73.3 Transmission oils tonnes 380 23.20.18.550 1440.5 1046.5 394.0 1645.9 1345.6 300.3 Compressor and turbine oils tonnes 390 23.20.18.560 3748.8 3404.1 344.7 4339.8 4014.1 325.7 Lubricating oils used for petrochemistry processes tonnes 400 23.20.18.570 1.6 0.3 1.3 2.6 1.6 1.0 Grease oils tonnes 410 23.20.18.580 2998.9 2219.2 779.7 3674.9 2623.1 1051.8 Other oils tonnes 420 23.20.18.590 4884.9 3226.3 1658.6 9857.9 3178.8 6679.1 Liquefied propane and 00

102

butane tonnes Ethylene, propylene, butylene, butadiene and other oil gases or gaseous carbohydrates, except natural gas tonnes Petroleum vaseline, paraffin, ozokerite, other mineral waxes tonnes Petroleum and shale coke tonnes Petroleum and shale bitumen tonnes Waste oils tonnes Additives to oils and fuel tonnes Other types of oil products tsf Fuel briquettes tonnes Other fuel products tsf Fuel – total tsf

430

23.20.21

20180.0

3579.1

16600.9

23310.5

3039.0

20271.5

440

23.20.22

142.3

2.9

139.4

192.6

1.9

190.7

450 460

23.20.31 23.20.32.400

134.8 5609.5

133.7 5058.1

1.1 551.4

150.9 3585.4

148.0 3496.5

2.9 88.9

470 480

23.20.32.500 23.20.40.000

29391.6 3661.5

16617.5 3339.4

12774.1 322.1

28186.4 3018.6

17124.3 2790.8

11062.1 227.8

490 500 510 630 999

24.66.32

1714.8 1509.3 9.6 6066.5 27273194.7

1572.8 994.4 9.6 5783.3 5149324.3

142.0 514.9 0.0 283.2 22123870.4

1998.0 1742.6 312.1 7704.6 23393784.2

1996.1 696.2 312.1 7067.1 6200162.5

1.9 1046.4 0.0 637.5 17193621.7

15.41.31.001

sheet -

3

REPORT ON THE REMAINS AND USE OF ENERGY MATERIALS AND PRODUCTS OF OIL PROCESSING for 2011 SECTION 2. USE OF ENERGY MATERIALS AND PRODUCTS OF OIL PROCESSING Form 4-MTP (semiannual), UKRAINE 0 Total ---------------------------------------------------------------------------------| | | |Used – total | From column 1-| | Type of fuel | Unit of |Line| in actual |used as customer-| | | measure |code| measurement | supplied raw | | | | | | materials | |--------------------------------------------------------------------------------| | А | B | C | 1 | 2 | ---------------------------------------------------------------------------------Hard coal – total tonnes 100 71261575.5 530748.4 of it: hard coal for coking tonnes 101 23652043.2 508007.7 antracite tonnes 102 5105233.2 0.0 Briquettes, pelettes and similar types of solid fuel from hard coal tonnes 110 1212.2 0.0 Brown coal (lignite) tonnes 115 9177.1 0.0 Briquettes, pelettes and similar types of solid fuel from brown coal (lig nite) tonnes 120 5041.8 0.0 Non agglomerated peat fuel tonnes 130 430741.9 0.0 Peat briquettes and semi briquettes tonnes 140 75366.3 0.0 Crude oil tonnes 150 8374692.0 3785345.0 Gas condensate tonnes 160 876570.8 134096.4 Natural gas thous.cub.m 170 39832869.0 227979.7 Firewood for heating solid cub.m 190 923055.7 0.0 Other types of primary fuel t sf 200 582990.1 487.6 Industrial products and sludge of concentration plants of steel industry tonnes 210 2329169.9 0.0 Coke and semicoke from hard coal, brown coal and peat tonnes 220 16789577.0 1245.0 Aviation gasoline tonnes 230 773.9 0.0 Motor gasoline tonnes 240 1020799.5 774.4 Jet gasoline fuel tonnes 250 189.0 0.0 Other light fractions tonnes 260 14466.9 64.2 Kerosene-type jet fuel tonnes 270 343278.9 282.6 Kerosene for tech purposestonnes 280 17243.9 0.0 Lighting kerosene tonnes 290 2776.5 0.0 Gasoils (diesel fuel) tonnes 300 4392284.2 40261.3 Other medium fractions tonnes 310 41101.5 0.0 Burning heavy fuel oil tonnes 320 850530.3 47706.3 Lubricating oils for purification tonnes 330 213.4 0.6 Lubricating oils tonnes 335 258798.8 4509.0

table 1

00

sheet -

4

REPORT ON THE REMAINS AND USE OF ENERGY MATERIALS AND PRODUCTS OF OIL PROCESSING for 2011 SECTION 2. USE OF ENERGY MATERIALS AND PRODUCTS OF OIL PROCESSING Form 4-MTP (semi-annual), table 1 00

UKRAINE 0 Total ---------------------------------------------------------------------------------| А | B | C | 1 | 2 | ---------------------------------------------------------------------------------Motor oils tonnes 340 82348.7 0.2 Hydraulic oils tonnes 350 7674.0 0.0 Industrial oils tonnes 360 75828.3 0.0 Electrical insulating oilstonnes 370 21016.4 0.0 Transmission oils tonnes 380 12627.2 0.0 Compressor and turbine oils tonnes 390 13228.1 0.0 Lubricating oils used for

103

petrochemistry processes tonnes Grease oils tonnes Other oils tonnes Liquefied propane and butane tonnes Ethylene, propylene, butylene, butadiene and other oil gases or gaseous carbohydrates, except natural gas tonnes Petroleum vaseline, paraffin, ozokerite, other mineral waxes tonnes Petroleum and shale coke tonnes Petroleum and shale bitumen tonnes Waste oils tonnes Additives to oils and fuel tonnes Other types of oil products tsf Fuel briquettes tonnes Hard coal gas, obtained through distillation in coke ovens thous.cub.m Blast furnace gas thous.cub.m Other gas not included in the listed groups thous.cub.m Other fuel products t sf Fuel – total t sf

400 410 420

12.3 21577.8 24486.0

0.0 0.0 4508.8

430

135547.0

9.9

440

387575.1

133597.7

450 460

1446.1 114142.9

25.8 59883.0

470 480

328354.2 7503.1

3516.4 0.0

490 500 510

13491.8 11708.4 8936.7

0.0 0.0 0.0

600 610

7571126.2 42760052.6

0.0 0.0

625 630 999

274250.1 389513.3 153038523.7

0.0 0.0 6661537.2

sheet -

5

REPORT ON THE REMAINS AND USE OF ENERGY MATERIALS AND PRODUCTS OF OIL PROCESSING for 2011 SECTION 3. USE OF ENERGY MATERIALS AND PRODUCTS OF OIL PROCESSING BY ENERGY SECTOR Form 4-MTP (semiannual), 00

table 1

UKRAINE Total

0 (details of column 1 of section 2) -----------------------------------------------------------------------------------------------------------------------| | | | | including by types of energy enterprises | | | Unit of |Line| Consumed |---------------------------------------------------------------| | | measure |code| for |enterprises | enterprises| gas | blast | oil | | Type of fuel | | |conversion |for | for |enterprises | furnace | processing | | | | | total |production |production | | ovens |enterprises | | | | |gr(2+...+11)|of briq. |of coke | | | | |------------------------|-----------|----|------------|------------|------------|------------|-----------|------------| | А | B | C | 1 | 2 | 3 | 4 | 5 | 6 | -----------------------------------------------------------------------------------------------------------------------Hard coal – total tonnes 100 66677904.9 0.0 27480150.6 0.0 0.0 0.0 of it: hard coal for coking tonnes 101 23341005.9 0.0 23333893.6 0.0 0.0 0.0 antracite tonnes 102 4092636.7 0.0 0.0 0.0 0.0 0.0 Briquettes, pelettes and similar types of solid fuel from hard coal tonnes 110 139.0 0.0 0.0 0.0 0.0 0.0 Brown coal (lignite) tonnes 115 1719.0 0.0 0.0 0.0 0.0 0.0 Briquettes, pelettes and similar types of solid fuel from brown coal (lig nite) tonnes 120 3123.5 0.0 0.0 0.0 0.0 0.0 Non agglomerated peat fuel tonnes 130 374587.0 335726.8 0.0 0.0 0.0 0.0 Peat briquettes and semi briquettes tonnes 140 42328.8 0.0 0.0 0.0 0.0 0.0 Crude oil tonnes 150 8353184.8 0.0 0.0 0.0 0.0 8353074.3 Gas condensate tonnes 160 874617.1 0.0 0.0 1585.2 0.0 873031.9 Natural gas thous.cub.m 170 19951853.6 0.0 0.0 224574.2 0.0 75396.8 Firewood for heating solid cub.m 190 503337.1 0.0 0.0 0.0 0.0 0.0 Other types of primary fuel t sf 200 473743.4 0.0 0.0 0.0 0.0 487.6 Industrial products and sludge of concentration plants of steel industry tonnes 210 2320829.7 0.0 2320239.4 0.0 0.0 0.0 Coke and semicoke from hard coal, brown coal and peat tonnes 220 8592081.1 0.0 0.0 57950.0 8534130.1 0.0 Motor gasoline tonnes 240 74.9 0.0 0.0 0.0 0.0 0.0 Other light fractions tonnes 260 6738.6 0.0 0.0 0.0 0.0 6402.8 Kerosene for tech purposestonnes 280 0.0 0.0 0.0 0.0 0.0 0.0 Lighting kerosene tonnes 290 0.0 0.0 0.0 0.0 0.0 0.0 Gasoils (diesel fuel) tonnes 300 139513.4 1.1 0.0 0.0 0.0 129116.1 Other medium fractions tonnes 310 18577.0 0.0 0.0 0.0 0.0 0.0 Burning heavy fuel oil tonnes 320 691906.7 0.0 0.0 0.0 0.0 527715.6 Liquefied propane and butane tonnes 430 13.9 0.0 0.0 0.0 0.0 0.0 Ethylene, propylene, butylene, butadiene and other oil gases or gaseous carbohydrates, except natural gas tonnes 440 221478.7 0.0 0.0 0.0 0.0 164867.0 sheet -

6

REPORT ON THE REMAINS AND USE OF ENERGY MATERIALS AND PRODUCTS OF OIL PROCESSING for 2011 SECTION 3. USE OF ENERGY MATERIALS AND PRODUCTS OF OIL PROCESSING BY ENERGY SECTOR Form 4-MTP (semiannual),

table 1

104

00 0

UKRAINE Total

(details of column 1 of section 2) -----------------------------------------------------------------------------------------------------------------------| А | B | C | 1 | 2 | 3 | 4 | 5 | 6 | -----------------------------------------------------------------------------------------------------------------------Petroleum and shale coke tonnes 460 73637.0 0.0 0.0 0.0 0.0 73637.0 Waste oils tonnes 480 377.6 0.0 0.0 0.0 0.0 206.4 Additives to oils and fuel tonnes 490 38.7 0.0 0.0 0.0 0.0 38.7 Other types of oil products tsf 500 2866.0 0.0 0.0 0.0 0.0 434.7 Fuel briquettes tonnes 510 8436.9 0.0 0.0 0.0 0.0 0.0 Hard coal gas, obtained through distillation in coke ovens thous.cub.m 600 2005917.8 0.0 28479.5 0.0 0.0 0.0 Blast furnace gas thous.cub.m 610 9186194.2 0.0 0.0 0.0 0.0 0.0 Other gas not included in the listed groups thous.cub.m 625 200803.3 0.0 0.0 0.0 0.0 0.0 Other fuel products tsf 630 165089.7 0.0 0.0 0.0 0.0 0.0 Fuel – total tsf 999 100362056.7 114484.5 21790121.7 316912.5 8303708.6 14525906.8

sheet -

7

REPORT ON THE REMAINS AND USE OF ENERGY MATERIALS AND PRODUCTS OF OIL PROCESSING for 2011 SECTION 3. USE OF ENERGY MATERIALS AND PRODUCTS OF OIL PROCESSING BY ENERGY SECTOR Form 4-MTP (semiannual), 00

table 1

UKRAINE Total

0 Section 3 continued ------------------------------------------------------------------------------------------------------------------------| | | | including by types of energy enterprises | Consumption| | | Unit of |Line|----------------------------------------------------------------| by | | | measure |code| power plants| power |CPP | boilers |other | energy | | Type of fuel | | | of common | plants of | | |enterprises| sector | | | | | use |enterprises| | |and plants | | | | | | | | | | | | |------------------------|-----------|----|-------------|-----------|------------|-------------|-----------|------------| | А | B | C | 7 | 8 | 9 | 10 | 11 | 12 | ------------------------------------------------------------------------------------------------------------------------Hard coal – total tonnes 100 36152550.7 33263.7 1635507.4 1304405.2 72027.3 417865.5 of it: hard coal for coking tonnes 101 0.0 0.0 0.0 7112.3 0.0 0.0 antracite tonnes 102 3362892.8 6094.0 627340.4 90031.1 6278.4 7911.9 Briquettes, pelettes and similar types of solid fuel from hard coal tonnes 110 0.0 0.0 0.0 67.7 71.3 0.0 Brown coal (lignite) tonnes 115 0.0 0.0 0.0 1529.3 189.7 0.0 Briquettes, pelettes and similar types of solid fuel from brown coal (lig nite) tonnes 120 0.0 0.0 0.0 2786.6 336.9 0.0 Non agglomerated peat fuel tonnes 130 0.0 0.0 0.0 32345.6 6514.6 705.2 Peat briquettes and semi briquettes tonnes 140 0.0 0.0 0.0 34871.5 7457.3 429.1 Crude oil tonnes 150 0.0 0.0 0.0 110.5 0.0 1497.0 Gas condensate tonnes 160 0.0 0.0 0.0 0.0 0.0 0.0 Natural gas thous.cub.m 170 531208.4 1969077.7 5156379.1 11701180.3 294037.1 750627.5 Firewood for heating solid cub.m 190 0.0 0.0 0.0 427256.9 76080.2 478.6 Other types of primary fuel t sf 200 0.0 43290.0 0.0 421636.7 8329.1 178.4 Industrial products and sludge of concentration plants of steel industry tonnes 210 0.0 590.3 0.0 0.0 0.0 0.0 Coke and semicoke from hard coal, brown coal and peat tonnes 220 0.0 0.0 0.0 1.0 0.0 1.0 Motor gasoline tonnes 240 0.0 1.6 0.0 0.0 73.3 103.6 Other light fractions tonnes 260 0.0 0.0 0.0 335.8 0.0 0.0 Kerosene for tech purposestonnes 280 0.0 0.0 0.0 0.0 0.0 804.6 Lighting kerosene tonnes 290 0.0 0.0 0.0 0.0 0.0 0.9 Gasoils (diesel fuel) tonnes 300 0.0 370.8 43.8 4529.3 5452.3 8567.7 Other medium fractions tonnes 310 0.0 0.0 0.0 18546.9 30.1 1.8 Burning heavy fuel oil tonnes 320 39203.6 16354.6 33220.3 75236.7 175.9 29453.6 Liquefied propane and Butane tonnes 430 0.0 0.0 0.0 0.0 13.9 699.6 Ethylene, propylene, butylene, butadiene and other oil gases or gaseous carbohydrates, except natural gas tonnes 440 0.0 3463.0 43168.0 9980.7 0.0 139980.2

sheet -

8

REPORT ON THE REMAINS AND USE OF ENERGY MATERIALS AND PRODUCTS OF OIL PROCESSING for 2011 SECTION 3. USE OF ENERGY MATERIALS AND PRODUCTS OF OIL PROCESSING BY ENERGY SECTOR Form 4-MTP (semiannual), 00 0

table 1

UKRAINE Total

Section 3 continued ------------------------------------------------------------------------------------------------------------------------| А | B | C | 7 | 8 | 9 | 10 | 11 | 12 | ------------------------------------------------------------------------------------------------------------------------Petroleum and shale coke tonnes 460 0.0 0.0 0.0 0.0 0.0 0.0 Waste oils tonnes 480 0.0 0.0 0.0 167.2 4.0 30.8 Additives to oils and

105

fuel tonnes Other types of oil products tsf Fuel briquettes tonnes Hard coal gas, obtained through distillation in coke ovens thous.cub.m Blast furnace gas thous.cub.m Other gas not included in the listed groups thous.cub.m Other fuel products tsf Fuel – total tsf

490 500 510

0.0 0.0 0.0

0.0 0.0 0.0

0.0 0.0 0.0

0.0 2409.6 8143.1

0.0 21.7 293.8

0.0 719.6 0.0

600 610

0.0 0.0

1380919.3 8424950.0

30474.0 227407.0

566045.0 533837.2

0.0 0.0

3190650.1 548576.0

625 630 999

0.0 0.0 27417486.3

0.0 26323.1 4405687.1

0.0 0.0 7300609.6

200803.3 137555.2 15751242.9

0.0 1211.4 435896.7

0.0 61914.9 3403751.8

sheet -

9

REPORT ON THE REMAINS AND USE OF ENERGY MATERIALS AND PRODUCTS OF OIL PROCESSING for 2011 SECTION 4. END USE OF ENERGY MATERIALS AND PRODUCTS OF OIL PROCESSING Form 4-MTP (semiannual), 00

table 1

UKRAINE Total

0 (details of column 1 of section 2) ----------------------------------------------------------------------------------------------| | | | Used for | | including | | | Unit of |Line|non-energy | End |-------------------------| | | measure |code|purposes | use |for |for | | Type of fuel | | | | | industrial |agricultural| | | | | |gr(3+...+8) |production |works (pro | | | | | | | |ducts) | |------------------------|-----------|----|---------------------------------------------------| | А | B | C | 1 | 2 | 3 | 4 | ----------------------------------------------------------------------------------------------Hard coal – total tonnes 100 317014.7 3825703.7 3460707.2 3295.0 of it: hard coal for coking tonnes 101 0.0 311037.3 311037.3 0.0 antracite tonnes 102 221573.5 770337.9 741169.1 2.0 Briquettes, pelettes and similar types of solid fuel from hard coal tonnes 110 1023.4 49.8 0.0 0.0 Brown coal (lignite) tonnes 115 2541.5 4916.6 4580.3 0.0 Briquettes, pelettes and similar types of solid fuel from brown coal (lig nite) tonnes 120 0.0 1918.3 0.0 0.0 Non agglomerated peat fuel tonnes 130 479.0 54026.7 53596.0 0.0 Peat briquettes and semi briquettes tonnes 140 4650.0 26527.3 1506.5 228.6 Crude oil tonnes 150 8970.7 536.1 536.1 0.0 Gas condensate tonnes 160 1917.1 36.6 9.6 16.0 Natural gas thous.cub.m 170 6472051.2 11795016.4 8421142.3 171583.1 Firewood for heating solid cub.m 190 35474.3 383765.6 46257.9 4741.1 Other types of primary fuel t sf 200 10399.1 98669.2 84227.3 1364.5 Industrial products and sludge of concentration plants of steel industry tonnes 210 5322.0 3018.2 3018.2 0.0 Coke and semicoke from hard coal, brown coal and peat tonnes 220 424130.9 7773364.0 7773297.8 0.0 Aviation gasoline tonnes 230 6.9 767.0 190.9 255.0 Motor gasoline tonnes 240 353.3 1019751.5 9857.3 89653.6 Jet gasoline fuel tonnes 250 0.0 189.0 0.1 0.0 Other light fractions tonnes 260 5950.7 1777.6 687.1 689.6 Kerosene-type jet fuel tonnes 270 212.1 342997.6 5076.4 6.7 Kerosene for tech purposestonnes 280 2802.8 13636.5 1359.7 58.5 Lighting kerosene tonnes 290 1391.2 1384.4 1323.5 19.6 Gasoils (diesel fuel) tonnes 300 150658.5 4093177.7 329437.3 1211367.5 Other medium fractions tonnes 310 262.3 22254.4 17411.1 3439.7 Burning heavy fuel oil tonnes 320 5230.3 123939.7 102417.6 842.1 sheet -

10

REPORT ON THE REMAINS AND USE OF ENERGY MATERIALS AND PRODUCTS OF OIL PROCESSING for 2011 SECTION 4. END USE OF ENERGY MATERIALS AND PRODUCTS OF OIL PROCESSING Form 4-MTP (semi-annual), table 1 00 0

UKRAINE Total

(details of column 1 of section 2) ----------------------------------------------------------------------------------------------| А | B | C | 1 | 2 | 3 | 4 | ----------------------------------------------------------------------------------------------Lubricating oils for purification tonnes 330 196.1 17.3 0.0 2.4 Grease oils tonnes 335 254364.5 4430.0 1701.7 1411.8 Motor oils tonnes 340 79897.8 2446.8 256.1 1260.3 Hydraulic oils tonnes 350 7397.4 276.6 160.9 50.0 Industrial oils tonnes 360 74774.4 1053.8 912.7 29.4 Electrical insulating oilstonnes 370 20945.1 71.3 33.0 0.0 Transmission oils tonnes 380 12568.1 59.1 16.0 14.1 Compressor and turbine oils tonnes 390 13009.7 218.4 204.1 0.0 Lubricating oils used for petrochemistry processes tonnes 400 12.3 0.0 0.0 0.0 Grease oils tonnes 410 21474.7 103.1 35.3 28.3 Other oils tonnes 420 24285.0 200.9 83.6 29.7

106

Liquefied propane and butane tonnes Ethylene, propylene, butylene, butadiene and other oil gases or gaseous carbohydrates, except natural gas tonnes Petroleum vaseline, paraffin, ozokerite, other mineral waxes tonnes Petroleum and shale coke tonnes Petroleum and shale bitumen tonnes Waste oils tonnes Additives to oils and fuel tonnes Other types of oil products tsf Fuel briquettes tonnes Hard coal gas, obtained through distillation in coke ovens thous.cub.m Blast furnace gas thous.cub.m Other gas not included in the listed groups thous.cub.m Other fuel products t sf Fuel – total t sf

430

591.6

132724.1

6247.6

6101.2

440

55.7

24892.6

24866.4

0.0

450 460

1439.2 40472.1

6.9 33.8

5.7 9.6

0.0 0.0

470 480

252575.8 6126.6

75651.2 968.1

59850.0 703.2

0.0 0.0

490 500 510

13452.6 122.5 0.0

0.5 7985.6 499.8

0.3 7873.1 249.0

0.0 59.2 0.0

600 610

0.0 76495.0

2374558.3 32948787.4

2335681.3 32944426.4

0.0 0.0

625 630 999

4330.4 154141.4 9304257.8

69116.4 8367.3 38936774.7

66056.0 7251.9 26910112.7

217.0 0.0 2111876.4 sheet -

11

REPORT ON THE REMAINS AND USE OF ENERGY MATERIALS AND PRODUCTS OF OIL PROCESSING for 2011 SECTION 4. END USE OF ENERGY MATERIALS AND PRODUCTS OF OIL PROCESSING Form 4-MTP (semiannual), 00

table 1

UKRAINE Total

0 Section 4 continued ----------------------------------------------------------------------------------------------------------| | | | including | Supplied to | | | Unit of |Line|-------------------------------------------------| population | | | measure |code| for | for | for | other | (including | | Type of fuel | | | transport |construction|sales, | needs | staff of the| | | | | | | | |enterprise) | | | | | | | restaurants| | | | | | | | | | | | |---------------------------------------------------------------------------------------------------------| | А | B | C | 5 | 6 | 7 | 8 | 9 | ----------------------------------------------------------------------------------------------------------Hard coal – total tonnes 100 7036.7 208.8 583.5 353872.5 1229464.5 of it: hard coal for coking tonnes 101 0.0 0.0 0.0 0.0 0.0 antracite tonnes 102 0.0 0.0 51.8 29115.0 283119.4 Briquettes, pelettes and similar types of solid fuel from hard coal tonnes 110 0.0 0.0 0.0 49.8 0.0 Brown coal (lignite) tonnes 115 0.0 0.0 0.0 336.3 534.0 Briquettes, pelettes and similar types of solid fuel from brown coal (lig nite) tonnes 120 0.0 0.0 0.0 1918.3 0.0 Non agglomerated peat fuel tonnes 130 0.0 0.0 76.1 354.6 11827.0 Peat briquettes and semi briquettes tonnes 140 0.0 0.0 312.4 24479.8 53195.1 Crude oil tonnes 150 0.0 0.0 0.0 0.0 0.0 Gas condensate tonnes 160 6.8 0.0 0.0 4.2 170.4 Natural gas thous.cub.m 170 2447212.2 3153.9 16998.5 734926.4 17585615.6 Firewood for heating solid cub.m 190 199.3 50.2 5621.7 326895.4 1574787.7 Other types of primary fuel t sf 200 35.3 11.0 199.9 12831.2 32319.2 Industrial products and sludge of concentration plants of steel industry tonnes 210 0.0 0.0 0.0 0.0 0.0 Coke and semicoke from hard coal, brown coal and peat tonnes 220 0.0 2.1 0.0 64.1 55.7 Aviation gasoline tonnes 230 321.1 0.0 0.0 0.0 0.0 Motor gasoline tonnes 240 905504.5 7516.5 4239.0 2980.6 0.0 Jet gasoline fuel tonnes 250 188.9 0.0 0.0 0.0 0.0 Other light fractions tonnes 260 90.1 281.0 0.0 29.8 34.0 Kerosene-type jet fuel tonnes 270 337881.9 0.0 0.0 32.6 4.6 Kerosene for tech purposestonnes 280 11982.0 16.4 0.0 219.9 0.0 Lighting kerosene tonnes 290 5.9 7.1 0.0 28.3 0.0 Gasoils (diesel fuel) tonnes 300 2426244.4 102581.1 9108.2 14439.2 3.5 Other medium fractions tonnes 310 0.0 83.7 0.0 1319.9 0.0 sheet -

12

REPORT ON THE REMAINS AND USE OF ENERGY MATERIALS AND PRODUCTS OF OIL PROCESSING for 2011 SECTION 4. END USE OF ENERGY MATERIALS AND PRODUCTS OF OIL PROCESSING Form 4-MTP (semi-annual), table 1 00 0

UKRAINE Total

Section 4 continued ---------------------------------------------------------------------------------------------------------| А | B | C | 5 | 6 | 7 | 8 | 9 | ---------------------------------------------------------------------------------------------------------Burning heavy fuel oil tonnes 320 11306.4 2814.6 0.0 6559.0 21.0 Lubricating oils for purification tonnes 330 14.9 0.0 0.0 0.0 3.5

107

Lubricating oils tonnes Motor oils tonnes Hydraulic oils tonnes Industrial oils tonnes Electrical insulating oilstonnes Transmission oils tonnes Compressor and turbine oils tonnes Lubricating oils used for petrochemistry processes tonnes Grease oils tonnes Other oil tonnes Liquefied propane and butane tonnes Ethylene, propylene, butylene, butadiene and other oil gases or gaseous carbohydrates, except natural gas tonnes Petroleum vaseline, paraffin, ozokerite, other mineral waxes tonnes Petroleum and shale coke tonnes Petroleum and shale bitumen tonnes Waste oils tonnes Additives to oils and fuel tonnes Other types of oil products tsf Fuel briquettes tonnes Hard coal gas, obtained through distillation in coke ovens thous.cub.m Blast furnace gas thous.cub.m Other gas not included in the listed groups thous.cub.m Other fuel products t sf Fuel – total t sf

335 340 350 360 370 380

1208.7 888.9 50.4 108.4 8.3 28.5

32.7 28.7 1.4 0.2 0.0 0.3

4.5 2.6 0.2 0.0 0.0 0.0

70.6 10.2 13.7 3.1 30.0 0.2

2096.9 1768.3 6.2 84.2 0.0 20.0

390

5.6

0.0

0.0

8.7

0.0

400 410 420

0.0 36.1 82.5

0.0 0.4 1.7

0.0 0.0 1.7

0.0 3.0 1.7

0.0 34.8 183.4

430

116300.3

777.4

820.5

2477.1

294004.2

440

9.2

7.2

0.0

9.8

0.0

450 460

0.0 0.0

0.0 0.0

0.0 0.0

1.2 24.2

0.0 0.0

470 480

7.0 0.4

15427.9 0.0

0.0 15.7

366.3 248.8

78.5 4.5

490 500 510

0.0 0.0 0.0

0.0 0.0 0.0

0.0 0.0 0.0

0.2 53.3 250.8

0.0 0.0 0.0

600 610

0.0 0.0

0.0 0.0

0.0 0.0

38877.0 4361.0

0.0 0.0

625 630 999

110.4 0.0 8395106.8

0.0 0.0 190273.4

0.0 0.0 42687.2

2733.0 1115.4 1286718.5

0.0 0.0 22078648.6 sheet -

13

REPORT ON THE REMAINS AND USE OF ENERGY MATERIALS AND PRODUCTS OF OIL PROCESSING for 2011 SECTION 5. LOSSES OF ENERGY MATERIALS AND PRODUCTS OF OIL PROCESSING AT EXTRACTION AND PRODUCTION, CONVERSION, PROCESSING, TRANSPORTATION AND DISTRIBUTION Form 4-MTP (annual), table 1 00 UKRAINE 0 Total -----------------------------------------------------------------------------------------------------------------------| | | | | including | | | Unit of |Line| Losses of|---------------------------------------------------------------| | | measure |code| fuel | Losses at | Losses at | Of the total amount of | Losses due | | Type of fuel | | | | extraction |transporta | used fuel | to non-use | | | | | total | and |tion, distri|------------------------| lack of | | | | | |production |bution and | losses at | losses at | accounting | | | | | | |storage |conversion |conversion | and other | | | | | | | | |to non-fuel | reasons | | | | | | | | |products | | |------------------------|-----------|----|----------------------------------------------------------------------------| | А | B | C | 1 | 2 | 3 | 4 | 5 | 6 | -----------------------------------------------------------------------------------------------------------------------Hard coal – total tonnes 100 2172251.0 2149164.3 23086.7 0.0 0.0 0.0 of it: antracite tonnes 102 2002798.7 1990025.5 12773.2 0.0 0.0 0.0 Non agglomerated peat fuel tonnes 130 3744.0 2800.0 944.0 0.0 0.0 0.0 Peat briquettes and semi briquettes tonnes 140 1460.1 29.0 1431.1 0.0 0.0 0.0 Crude oil tonnes 150 78863.7 6290.5 10503.4 62069.8 0.0 0.0 Gas condensate tonnes 160 16126.6 1704.2 0.0 14422.4 0.0 0.0 Natural gas thous.cub.m 170 948788.9 33468.6 863320.3 35933.3 0.0 16066.7 Firewood for heating solid cub.m 190 0.1 0.0 0.1 0.0 0.0 0.0 Other types of primary fuel t sf 200 1750.7 0.0 0.0 14.6 0.0 1736.1 Motor gasoline tonnes 240 590.2 0.0 516.2 0.0 0.0 74.0 Other light fractions tonnes 260 0.1 0.0 0.0 0.0 0.1 0.0 Kerosene-type jet fuel tonnes 270 69.2 0.0 69.2 0.0 0.0 0.0 Gasoils (diesel fuel) tonnes 300 705.0 0.2 366.9 308.6 0.0 29.3 Other medium fractions tonnes 310 6.0 0.0 6.0 0.0 0.0 0.0 Burning heavy fuel oil tonnes 320 4072.9 0.0 0.0 4072.9 0.0 0.0 Lubricating oils tonnes 335 4.3 0.0 4.3 0.0 0.0 0.0 Motor oils tonnes 340 4.1 0.0 4.1 0.0 0.0 0.0 Industrial oils tonnes 360 0.1 0.0 0.1 0.0 0.0 0.0 Other oil tonnes 420 0.1 0.0 0.1 0.0 0.0 0.0 Liquefied propane and Butane tonnes 430 1517.8 0.0 1517.8 0.0 0.0 0.0 Ethylene, propylene, butylene, butadiene and other oil gases or gaseous carbohydrates, except natural gas tonnes 440 2312.4 0.0 1167.9 1144.5 0.0 0.0 Petroleum and shale bitumen tonnes 470 127.2 0.0 127.2 0.0 0.0 0.0 Waste oils tonnes 480 4.4 0.0 0.0 4.4 0.0 0.0 Other types of oil products tsf 500 14.7 0.0 14.7 0.0 0.0 0.0 Hard coal gas, obtained through distillation in coke ovens thous.cub.m 600 585391.9 0.0 0.0 5319.6 0.0 580072.3 Blast furnace gas thous.cub.m 610 4272890.4 0.0 0.0 0.0 0.0 4272890.4 sheet -

14

108

REPORT ON THE REMAINS AND USE OF ENERGY MATERIALS AND PRODUCTS OF OIL PROCESSING for 2011 SECTION 5. LOSSES OF ENERGY MATERIALS AND PRODUCTS OF OIL PROCESSING AT EXTRACTION AND PRODUCTION, CONVERSION, PROCESSING, TRANSPORTATION AND DISTRIBUTION Form 4-MTP (semiannual), table 1 00 UKRAINE 0 Total -----------------------------------------------------------------------------------------------------------------------| А | B | C | 1 | 2 | 3 | 4 | 5 | 6 | -----------------------------------------------------------------------------------------------------------------------Gas obtained during converter steel producion thous.cub.m 620 1380228.6 0.0 0.0 0.0 0.0 1380228.6 Other gas not included in the listed groups thous.cub.m 625 451867.8 0.0 0.0 0.0 0.0 451867.8 Fuel – total t sf 999 4391012.1 1641272.6 1031685.6 161497.0 0.1 1556556.8

109

APPENDIX 5. FORM #3-TECH-TPP TECHNICAL AND ECONOMIC INDICATORS OF TPP EQUIPMENT OPERATION Statistical reporting form #3-tech "Report on Thermal Power Plant Operation. Performance Parameters" Example for TPP ***MINISTRY OF ENERGY AND COAL INDUSTRY OF UKRAINE***

TECHNICAL AND ECONOMIC INDICATORS OF

EQUIPMENT OPERATION TPP

XXX

for 2010:1 - 2010:12

І. General indicators

Indicator

Form No3-tech-TPP Total for

Reserve

the plant

of tsf

Identifier

Dimension

Code of equipment group

KOD_GR

-

4

Code of the type of project fuel

PR_TOP

-

1

Installed electric capacity

Ninst

MW

Installed heat capacity

Qinst

Gcal/h

Maximum electric capacity

Nе.m

MW

Electricity output

E

thous. kWh

5888396

Electricity supply

Еsup

thous. kWh

5461058

- total

Qsup

Gcal

- waste steam of turbines

Lwaste.

%

100

- with hot water

Lh.w.

%

100

- from PHWB

Lphwb

%

0

Ve

tsf

1905535

Vhe

tsf

4120

su.f

g/kWh

348.93

- nominal

se.nom

g/kWh

353.05

- norm

se.n

g/kWh

354.47

she.f

kg/Gcal

169.4

- nominal

she.nom

kg/Gcal

171.54

- norm

she.n

kg/Gcal

171.54

1232.6 372 971.2

Heat supply:

Consumption of standard fuel to supply: - electricity - heat

24321

Specific standard fuel consumption: for supplied electricity: - fact

supplied heat: - fact

-30244

-53

Consumption of electricity for own needs: - total

Eon

% 7.3

- for production of electricity: - fact - norm - supply of heat: - fact - norm - for heating installation Consumption of electricity for the own turbines: - fact - norm Consumption of electricity for the own boilers: - fact - norm Feedwater flow

Еe.pr

%

7.24

Еe.pr.n

%

7.38

Еhe.su

kWh/Gcal

39.02

Еhe.su.n

kWh/Gcal

39.02

Еheat

kWh/Gcal

22

Еt.on.f

%

4.03

Еt.on.n

%

4.17

Еb.on.f

kWh/Gcal

15.6

Еb.on.n

kWh/Gcal

15.6

Gfw

thous.t

-2867 0

18523.1 110

Non-return of condensate from the heat consumers

Gnonr

%

0

Internal losses of condensate: - fact

Gloss.f

%

2

Gloss.n

%

2

Coefficient of heat flow

C.he

%

98.8

Coefficient of heat loss during its supply

Lloss.sup

%

1

Calorific value of combustion of solid fuel

Qh.l.s.f

kcal/kg

4718

Ash content of solid fuel

Ac.s.f

%

23.66

Humidity of solid fuel

Wh.s.f

%

12.51

Sulfur content in solid fuel

Sc.s.f

%

1.03

Calorific value of combustion of liquid fuel

Qn.l.f.

kcal/kg

8763

Humidity of liquid fuel

Wl.f.

%

10.89

Sulfur content in liquid fuel

Ss.c.

%

1.74

Calorific value of combustion of natural gas

Qn.r.g

kcal /m3

8076

- norm

111

Identifier Indicator

Reserve

Total Dimension

Plant N1

Plant N2

Plant N3

Plant N4

of

for the

tsf

plant Code of equipment group

KOD_GR

-

4

4

4

4

4

Code of the type of project fuel

PR_TOP

-

1

1

1

1

1

Average electrical load of a turbine

Nav

MW

256.4

256

245.1

238.8

249.5

- cumulative

Qt

Gcal

137706

142814

156822

109591

546933

- from production extraction section (backpressure)

Qp.e

Gcal/h

0

0

0

0

0

- from unregulated extraction sections

Qu.e

Gcal/h

22.7

24.2

22.6

23.4

23.2

- from heating extraction sections

Qh.e

Gcal/h

0

0

0

0

0

- from the condenser

Qc

Gcal/h

0

0

0

0

0

Еhc

%

1

1.1

1

1

1

- on the steam of production extraction section

Wp

kWh/ Gcal

0

0

0

0

0

- on the steam of heating extraction sections

Wh

kWh/Gcal

0

0

0

0

0

Coefficient of use: - electric capacity of turbine

Кu.е

%

0

0

0

0

54.5

Kc.t

%

0

0

0

0

16.8

Tt

h

6078

5899

6951

4675

23603

Tt.1b

h 0

0

0

0

0

Heat supply from the extraction section of the turbine:

Output of electricity in the heating cycle

- heat capacity of turbine Number of hours of turbine operation: - total - in one boiler Number of hours of idle time of turbine in reserve

Tres

h

1354

1116

872

1529

4809

Number of start-ups of the turbine - total

n.t

-

24

22

15

20

81

n.t.p

-

20

19

15

17

71

773.8

796.6

793.8

770.7

784.8

- planned Consumption of fresh steam per turbine

Do

t/h

Pressure of fresh steam at the turbine: - fact

Pо.f

kgf/cm2

214

210.6

223.7

215.8

216.3

Pо.n

kgf/cm2

240

240

240

240

240

Рp

kgf/cm2 0

0

0

0

0

0

0

0

0

0

- norm Pressure of steam in the production extraction section of the turbine: - fact - norm

Рp.n

kgf/cm2

0 0

-2590

0

112

Pressure of steam in the heat extraction section of the

Рt

kgf/cm2

turbine: - fact - norm Temperature of fresh steam at the turbine: - fact - norm Temperature of steam after resuperheating: - fact - norm Pressure of steam in the condenser: - fact - norm Water temperature: - at the entrance to condenser - at the exit of condenser Temperature driving force in the condenser: - fact - norm

0

0

0

0

0

0

0

0

0

0

Рt.n

kgf/cm2

tо.f

оС

540

541

544

542

542

tо.n

оС

540

540

540

540

540

trh.f

оС

541

541

540

539

540

trh.n

оС

540

540

540

540

540

P2.f

kgf/cm2

0.053

0.049

0.054

0.055

0.053

P2.n

kgf/cm2

0.05

0.046

0.051

0.05

0.049

t1

оС

18.4

16.8

18.9

18

18.1

t2

оС

27.9

25.4

27.1

26.6

26.8

dt.f

оС

6.8

8

7.6

11

8.2

dt.n

оС

4.6

4.8

4.7

4.7

4.7

Air inflow to the vacuum system

dGair

kg/h

20.2

25.6

24.7

23.2

23.5

Feed water temperature by HPH: - fact

tfw.f

оС

249

259

256

257

255

tfw.n

оС

255

258

257

255

256

qt.f

kcal/kWh

1915

1900

1976

1960

1937

qt.n

kcal/kWh

1976

1909

1987

1984

1964

- norm Specific gross heat consumption per turbine: - fact - norm Heat consumption for own needs

qh.on

%

0

0

0

0

3.4

Consumption of heat for ZTN, GCal

Qztn

%

3.3

3.2

3.3

3.3

3.3

Еcp.f

%

1.99

1.85

2

2.06

1.97

Еcp.n

%

2.14

1.99

2.08

2.21

2.1

Consumption of electricity for feeding pumps: - fact

Еfep.f

kWh/t f

0.2

0.3

0.1

0.3

0.2

- norm

Еfep.n

kWh/t f

0.2

0.3

0.1

0.3

0.2

qt.n.f

kcal/kWh

0

0

0

0

2086

qt.n.n

kcal/kWh

0

0

0

0

2114

Identifier

Dimension

Consumption of electricity for circulation pumps: - fact - norm

Specific net heat consumption per turbine: - fact - norm

Indicator

Plant N1

Plant N2

Plant N3

Plant N4

0 -1521 -79 7074

7074

755 -25987

-2620 0

Reserve Total

of

for the

tsf 113

plant Code of equipment group

KOD_GR

-

4

4

4

4

4

Code of the type of project fuel

PR_TOP

-

1

1

1

1

1

Average consumption of feed water

Gfw

t/h

774

797

794

771

785

Average heat load

Qk

Gcal/h

519

517

513

498

513

Number of hours of boiler operation

Tb

h

6078

5899

6951

4675

23603

Temperature: - cold air

tca

оС

27

23

28

24

26

tin.ah

оС

27

23

28

24

26

Temperature of exhaust gases: - fact

texh.f

оС

154

149

153

155

153

- norm

texh.n

оС

164

162

165

162

163

- at the air heater inlet

Coefficient of excess air in the intersection: - fact

Lr.f

-

1.2

1.19

1.19

1.19

1.19

- norm

Lr.n

-

1.21

1.22

1.22

1.22

1.21

dLrvid

%

33.6

36.5

36.8

36

35.7

dLrvid.n

%

38.3

38.5

38.6

39.1

38.5

Air inflow in the. last heating surface - smoke exhauster

dLrvid

%

5.2

6.2

7.7

8

6.7

Content of combustible components in the advection: -

Гadv

% 0.8

0.8

0.8

0.9

0.8

Air inflow in the regime of first.-last heating surface: -fact - norm

fact - norm Number of boiler ignitions: - total - planned Consumption of standard fuel: - total

Гadv.n

%

0.9

0.9

0.9

0.9

0.9

n.b

-

24

22

15

20

81

n.b.p

-

20

19

15

17

71

В

tsf

498098

480856

561376

369325

1909655

- solid

вsf

%

98.7

98.7

99

98.3

98.7

- gas

вg

%

1.3

1.3

1

1.6

1.3

- fuel oil

вfo

%

0

0

0

0

0

q2

%

7.76

7.74

7.7

8.08

7.8

q2.n

%

8.71

8.86

8.73

8.9

8.79

q3+q4

%

0.4

0.39

0.4

0.41

0.4

q3+q4.n

%

0.3

0.29

0.3

0.31

0.3

qінші

%

1.3

1.31

1.08

1.5

1.3

-11602 0 -1539

1220

Loss of heat by boilers: with exhaust gases: - fact - norm with chemical and mechanical air-dried brick: - fact - norm other

2067

114

Gross boiler efficiency by return balance: - fact - norm

E.br.f

% 90.47

90.56

90.83

90

90.51

E.br.n

%

90.13

90.03

90.2

90.14

90.13

Gross boiler efficiency by direct balance

E.br.p

%

90.53

90.46

90.64

89.89

90.42

Consumption of power for thrust and blast: - fact

etd.f

kWh/Gcal

8.2

8.2

8.2

7.9

8.1

etd.n

kWh/Gcal

8.2

8.2

8.2

11

8.7

Consumption of power for dust preparation: - fact

edp.f

kWh/tnp

25.3

25.5

25.4

25.8

25.5

- norm

edp.n

kWh/tnp

25.3

25.5

25.4

25.8

25.5

qb.on.f

%

0

0

0

0

1

qb.on.n

%

0

0

0

0

1

Consumption of heat to drive the TPD

qtpd

%

0

0

0

0

0

Additional amount of heat put into the furnace

qvn

%

0

0

0

0

0

Net efficiency of the boiler: - fact

E.n.f

%

0

0

0

0

86.46

E.n.n

%

0

0

0

0

86.25

dBfo

tsf

0

0

0

0

0

- norm

Heat consumption for own needs of boilers: - fact - norm

- norm Excessive use of fuel oil

-8108

-2584 0 0

115

APPENDIX 6. FORM #6-TP (ES) (ANNUAL) REPORT ON THE OPERATION OF THE POWER PLANT ID USREOU State Statistical Observation Confidentiality of statistical information is provided by Article 21 of the Law of Ukraine On State Statistics Violation of the procedure of submission or use of data of state statistical observations entails responsibility stipulated by Article 186Âł of the Code of Ukraine on Administrative Offences

REPORT ON THE OPERATION OF THE POWER PLANT

13

for __________ (submitted for each plant separately)

Submitted by:

Timeframe

# 6-tp (es)(annual)

Legal entities with

APPROVED

power plants with capacity of 500 kW and more;

Order of State Statistics Service

power plants irrespective of capacity that are

not later

included or (and) carried out electricity supply to the

than January 20

of 30.06.2011 #167

United Energy Systems of Ukraine (UES) - the state statistics agency by location Respondent: Name: _____________________________________________________________________________________ Location (legal address): _________________________________________________________________ _________________________________________________________________________________ (zip code, region /AR of Crimea, district, settlement, street / alley, square etc., No of house / building, No of apartment / office)

Address of performance of work in respect of which the reporting form is submitted (actual address)_________________________ ______________________________________________________________________ (zip code, region /AR of Crimea, district, settlement, street / alley, square etc., No of house / building, No of apartment / office)

1. General Information Underline as necessary: Code of power plant type: 1Đľ (thermal power plant aimed to produce electricity); 1k (combined heat and power plant (thermal power plant with combined cycle of production of electricity and heat)); 2 (hydroelectric power plant); 3 (nuclear power plant); 13

Source of information: http://www.ukrstat.gov.ua/ 116

4 (wind power plant); 5 (pumped storage power plant); 6 (solar power plant); 7 (geothermal power plant); 8 (other (specify the type)_____________________________________________________________________).

Power plant is a part of UES: yes,

no.

Power plant carried out supply to the UES: Power plant was used on a rental basis:

yes,

no.

yes (from______________to______________),

no.

Name of the power plant:

Installed capacity of the power plant

Capacity available at the power plant as of January 1 of the year

as of January 1 of the year following the reporting one

following the reporting one

electric,

heating by turbine units,

electric,

heating by turbine units,

kW

Gcal/h

kW

Gcal/h

1

2

3

4

Specify: reasons of the change of installed capacity compared to capacity as of January 1 of the reporting year:

reasons of he gap between the installed and available capacity of the power plant:

117

2. Performance data

Indicators

Unit of measure

Line code

Actual

А

B

C

1

thous.kW·h

01

-"-

02

Gcal

03

thous.kW·h

04

-"-

05

-"-

06

Losses of electricity related to its supply

-"-

07

Consumption of electricity by PSP for charge etc

-"-

08

Electricity produced Electricity supplied (line.01 – (line.04 + line.05 – line.06) – line.07) Heat supplied to external consumers Consumption of electricity for own production needs for production of electricity for supply of heat Purchased electricity for own production needs of the power plant (line.06≤line.04+line.05)

Clarification:

___________________________________________ Signature of administrator (owner) and/or person

________________________________________ (full name)

Responsible for the reliability of submitted information ___________________________________________

_______________________________________ (full name) 118

telephone: _____________________ fax: ____________________ e-mail: ____________________________

119

APPENDIX 7. FORM #1-TEP (ANNUAL) REPORT ON THE SUPPLY OF HEAT ID USREOU State Statistical Observation Confidentiality of statistical information is provided by Article 21 of the Law of Ukraine On State Statistics Violation of the procedure of submission or use of data of state statistical observations entails responsibility stipulated by Article 186³ of the Code of Ukraine on Administrative Offences

Report on heat supply

14

for ________ Submitted by:

Timeframe

legal entities, separate divisions of legal entities (TPP, СРP,

# 1-tep (annual)

HPP, SDPP, NPP, enterprises of heat networks and other enterprises and organizations) that have boilers and heat networks and supply heat and hot water to the

APPROVED not later

Order of State Statistics Service

than January 20

of 01.09.2010 #371

population and to utilities - state statistics agency by location Respondent: Name:_______________________________________________________________________________________ Location (legal address): __________________________________________________________________ ____________________________________________________________________________________________________ (zip code, region /AR of Crimea, district, settlement, street / alley, square etc., No of house / building, No of apartment / office)

Address of performance of work in respect of which the reporting form is submitted (actual address):____________________________________ ____________________________________________________________________________________________________ (zip code, region /AR of Crimea, district, settlement, street / alley, square etc., No of house / building, No of apartment / office)

Specify the are to which the heat is supplied: region/AR of Crimea _______________________________________ district ______________________________________________ city ____________________________________________ settlement ______________________________________ village (or their list)______________________________________________________________________

14

Source of information: http://www.ukrstat.gov.ua/ 120

Type of source of heat generation (underline as necessary): 1) boiler stations; 2) separate boilers (conventional boilers); 3) energy units; 4) other source ________________________________________________________________________________; 5) mixed (energy units, boiler stations, separate boilers and other).

Indicators

#

(specify)

Unit of measure

Actuual

B

C

1

01

од

up to 3

02

--"--

from 3 to 20

03

--"--

from 20 to 100

04

--"--

100 and more

05

--"--

solid fuel

06

--"--

liquid fuel

07

--"--

gaseous fuel

08

line А

1. Sources of heat supply, their capacity and number of boilers Number of boiler stations at year-end (line.02 + line.03 + line.04 + line.05) Including with capacity (Gcal/h):

From line 01 boiler stations working on (line.01 ≥ line.06 + line.07 + line.08):

Cumulative cpacity of boiler stations at year-end (line.10 + line.11 + line.12 + line.13)

09

--"-Gcal/h (with decimals)

including with capacity (Gcal/h): up to 3

10

--"--

from 3 to 20

11

--"--

from 20 to 100

12

--"--

100 and more

13

--"--

14

units

14.1

--"--

Umber of installed boilers (energy units) at year-end (line.14 ≥ line.14.1) of them with lifetime of more than 20 years 2. Heat networks Length of two-pipe heat and steam networks

km

at year-end (line.15 ≥ line.16)

15

(with decimals)

of them rundown and in critical condition 3. Production and supply of heat annually Heat produced (line.17 ≥ line.18 + line.19 + line.20 + line.21)

16

--"-Gcal

17

(with decimals)

up to 3

18

--"--

from 3 to 20

19

--"--

from 20 to 100

20

--"--

100 and more

21

--"--

Heat received from external sources

22

--"--

Heat consumed for own production needs of the boiler station

23

--"--

Heat supplied (line.25 + line.29)

24

--"--

Heat supplied to own consumers (line.26 + line.27 + line.28)

25

--"--

including by boiler stations with capacity (Gcal/h):

including: 121

Indicators

#

Unit of measure

Actuual

B

C

1

to population (directly of through local public utilities)

26

--"--

for utility needs

27

--"--

for production needs of the enterprise

line А

28

--"--

Supplied to other enterprise (dealer)

29

--"--

Heat losses (line.17 – line.23 + line.22 – line.24)

30

--"--

4. consumption of fuel:

t of standard

by norm

fuel 31

(with decimals)

actual

32

--"--

Specific consumption of standard fuel for production of 1 Gcal of heat

33

kg of standard fuel

(line.32 х 1000 : (line.17 – line.23))

/Gcal (with decimals)

Note. Data from line 33 should be within 160–250 kg of standard fuel per 1 Gcal (significant deviation from the specified data or the previous year should be clarified).

Clarification:

_______________________________________________ _______________________________________________ Signature of administrator (owner) and/or person

(full name)

responsible for the reliability of submitted information

_______________________________________________ (full name)

telephone: ____________________ fax: ____________________ e-mail: ____________________________

122

APPENDIX 8. FORM 1P-NPP (ANNUAL) REPORT ON THE PRODUCTION AND SALE OF INDUSTRIAL PRODUCTS

ID USREOU State Statistical Observation Confidentiality of statistical information is provided by Article 21 of the Law of Ukraine On State Statistics Violation of the procedure of submission or use of data of state statistical observations entails responsibility stipulated by Article 186続 of the Code of Ukraine on Administrative Offences

REPORT ON THE PRODUCTION AND SALE OF INDUSTRIAL PRODUCTS

15

for 20___ Submitted by:

Timeframe

legal entities, separate divisions of legal entities engaged in industrial activity - state statistics agency by location (place of work)

# 1P-NPP not later

(annual)

than February

APPROVED

9

Order of State Statistics Service of 07.08.2012 #331

15

Source of information: http://www.ukrstat.gov.ua/ 123

Respondent: Name: ____________________________________________________________________________________________________________________________ Location (legal address): ___________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________ (zip code, region / AR of Crimea, district, settlement, street / alley, square etc ,

_____________________________________________________________________________________________________________________________________________ No of house / building, No of apartment / office)

Address of performance of work in respect of which the reporting form is submitted (actual address): __________________________________________________________________ _____________________________________________________________________________________________________________________________________________ (zip code, region /AR of Crimea, district, settlement, street / alley, square etc., No of house / building, No of apartment / office)

I. Production and sale of industrial products Produced in fact Sold products made of own raw

within a reporting year

materials within the reporting year Name of products

Unit of

Code of

based on the Classification of industrial product

measure

product

(CIP)

by CIP

by CIP

including from customer-supplied total

raw materials

value,

within the previous year

quantity

thous. UAH

(if there data in column 4

(гр.2 ≤ гр.1)

provide the data in colum 5 and vice versa)

15.1.1.1.1.1.1

А

B

C

124

1

2

3

4

5

Produced in fact Sold products made of own raw

within a reporting year

materials within the reporting year Name of products

Unit of

Code of

based on the Classification of industrial product

measure

product

(CIP)

by CIP

by CIP

including from customer-supplied total

raw materials

value,

within the quantity

previous year

thous. UAH

(if there data in column 4

(гр.2 ≤ гр.1)

provide the data in colum 5 and vice versa)

15.1.1.1.1.1.1

А

B

C

1

2

3

4

5

II. Availability of power plants with capacity of not less than 500 kW, their capacity and production of electricity

Type of the power plant #

(generating facility) (steam turbine, diesel, locomobile etc.) and location (region, settlement etc.)

А

Code of the type of power plant

Stationary – “1”, mobile – “2”

B

C

D

Total

х

х

of them mobile

х

2

125

Number of power plants 1

Installed capacity of the power plant as of January 1 of the year following the reporting one, kW 2

Electricity produced within a year,

Clarification

thous.kWh 3

4

_____________________________________________ ____________________________________________ Signature of administrator (owner) and/or person,

(full name)

responsible for the reliability of submitted information _____________________________________________ ______________________________________________ (full name) telephone: ________________ fax: ________________ e-mail: _________________________________

126

APPENDIX 9: LIST OF UKRAINIAN CHPS AND CPPS No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Name Vuglegіrs`ka CHP Zaporіzka CHP Krivorіz`ka CHP Burshtins`ka CHP Zmіїvs`ka CHP Starobeshіvs`ka CHP Ladizhins`ka CHP Tripіls`ka CHP Pridnіprovs`ka CHP Kurakhіvs`ka CHP Lugans`ka CHP Zuivska CHP Slovians`ka CHP Kyїvs`ka CPP-5 Dobrotvіrs`ka CHP Kharkivs’ka CPP-5 Kyїvs`ka CPP-6 Kharkіvs`ka CPP-2 ESKHAR Severodonets`ka CPP Kremenchuts`ka CPP

21 22

Capacity, MW 3,600 3,600 3,000 2,350 2,325 1,940 1,800 1,800 1,740 1,460 1,425 1,200 880 700 600 540 500

23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42

474 270 255

127

Cherkas`ka CPP Chernіgіvs`ka CPP Darnitska CPP (Kyivs’ka CPP-4) Bіlotserkіvs`ka CPP Kramators`ka CPP Svema Company CPP Mironіvs`ka CHP Kalus`ka CPP Khersons`ka CPP Dnіprodzerzhins`ka CPP Oleksandrіys`ka CPP-3 Pervomais`ka CPP Sіmferopols`ka CPP Zasyadka Mine CPP Sevastopols`ka CPP Sums`ka CPP Lisichans`ka CPP Zaporizhstal Plant CPP Stirol Plant CPP Odes’ka CPP Lvivs’ka CPP-1 Mikolayivs`ka CPP

230 210 160 120 120 115 100 80 80 61.6 59.5 48 40 36.35 33 28 27.2 25 25 24 20 20

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