4"12-Z 1 - part - usaid

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• 5906-01/02A/BURSHTYN/5117/95
2.0 BACKGROUND
Twelve Newly Independent States (NIS) emerged from the collapse of the former SovIet Umon
in 1991. USAID is addressmg and managing assistance to these countnes through the newly
formed Bureau for Europe and the New Independent States (USAID/ENI).
Funding actIvIties m the energy sector supports the cost of techmcal aSSIstance, trammg, and
limited capital aSSIstance in support of energy-related equipment and cooperation WIth local
institutions.
UkraIne, with a population of 52 mIllion, is considered one of the most energy intensIve states.
Imtial aSSIstance has shown that there are many opportumtIes to reduce energy consumption and
to reduce environmental degradation. The breakup of the SOVIet Umon has resulted m the cutoff
of supplies and spare parts reqUIred by the Ukraiman Energy SupplIers, WhICh threatens the
reliability of major power plants ThIS situatIOn is compounded by lack of hard currency
exchange to pay for needed supplIes and fuels.
Most of the thermal power plants are coal fired units that are co-fired WIth mazut and natural
gas, complimented by natural gas and mazut fired units in populated areas.
These units often supply hot water to dIStriCt heatmg and steam for mdustnal use. Decreasmg
coal supplies and declImng quality of coal supplies is affectmg the abilIty of Ukraine to meet ItS
needs for electricIty. Also, electncity and dIstrict heatmg supplIes are threatened because
Ukraine IS unable to pay for imported coal, oil and gas at prices approachmg world fuel pnces
2.1 Objectives of Enere;y Savine; Proe;ram
USAID/KJ.ev has Implemented an expanded energy program in UkraIne to enhance the relIabilIty
of power generation and reduce dependency on Imported oil and gas and Improve energy
productivity.
The purpose of these efforts will be to proVIde services and, where appropriate, U.S. and local
products, dIrected toward improvmg energy and operatmg effiCIenCIes in power generatIOn, and
in the equipment and controls reqUIred to use energy effiCIently and cost-effectIvely.
The purpose of the work is to improve bOIler effiCIency at seven power plants and/or combmed
power and dIStnCt heating plants which have been selected by USAID/KJ.ev m consultatIOn WIth
the Mimstry of Energy and ElectnficatIOn. These plants are fired WIth natural gas, fuel 011 or
coal. The objectIves are to (1) foster Improved management of bOller/ plant operations by
identIfymg and ImplementIng Immediately cost-effectIve "low cost - no cost" effiCIency
improvements; (2) provide eqUIpment support to Implement low-cost operatIons, Improve
monitonng and energy management; (3) proVIde operatIOn traImng
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