JOINT IMPLEMENTATION PROJECT MONITORING REPORT
Distribution of energy efficient light bulbs in public and private sectors of Ukraine
PERIODIC JI MONITORING REPORT FROM PRIMLIGHT LLC
For the period from 01.01.2008 to 31.12.2011
(for the part performed by PRIMLIGHT LLC)
Version 4
The 25th of September, 2012
“Distribution of energy efficient light bulbs in public and private sectors of Ukraine”
CONTENTS
A. General project and monitoring information
B. Key monitoring activities
C. Calculation of GHG emission reductions
JOINT IMPLEMENTATION PROJECT MONITORING REPORT
Distribution of energy efficient light bulbs in public and private sectors of Ukraine
page 2
Key Abbreviations/Terminologies
AIE
Accredited Independent Entity
CFL
Compact Fluorescent Lamp
ERU
Emission Reduction Unit
GHG
Greenhouse Gas
JI
Joint Implementation
PDD
Project Design Document
PSG
Project Sample Group
SECTION A. General project and monitoring information
A.1. Title of the project:
Distribution of energy efficient light bulbs in public and private sectors of Ukraine
A.2. JI registration number:
JI 0254
ITL Project ID: UA1000299
A.3. Sectoral scope:
3: Energy demand
A.4. Short description of the project activity:
The proposed joint implementation (JI) project involves distribution of energy efficient light
bulbs to various customers from public and private sectors. The project is conducted within the
geographical boundaries of Ukraine and it will be implemented and managed by PRIMLIGHT,
LLC.
JOINT IMPLEMENTATION PROJECT MONITORING REPORT
Distribution of energy efficient light bulbs in public and private sectors of Ukraine
page 3
The goal of the project is to enhance the energy efficiency of Ukraine’s lighting stock by
distributing over a period of 14 years up to 210,926,791 compact fluorescent lamps (CFLs) to
Ukrainian customers from private, as well as from public sectors. By doing so, the project abates
greenhouse gas (GHG) emissions through avoided electricity usage, significantly reduces
national electricity demand and stress on energy infrastructure, and saves customer’s money on
their electricity bills.
Although CFLs were introduced to the Ukrainian market as early as 2004, they have failed to
replace incandescent lamps as the largest component of the Ukrainian lighting stock. Moreover,
the sales of incandescent lamps accelerated during 2009 and 2010. The ubiquity of incandescent
lamps is attributed to their low cost combined with the relatively low wealth level of an average
Ukrainian citizen (in 2010, the average consolidated financial wealth per Ukrainian legally
employable person was equal to 947 USD)1.
Under the proposed JI project scheme, quality self-ballasted CFLs are distributed to residential
households, as well as to industrial, commercial and government organizations. Once the CFLs
have reached their end of life, or any CFLs which have failed prematurely during the project
period, the project team would arrange for the collection and disposal of CFLs as per applicable
environmental norms.
In order to create a rapid uptake of CFL use, the proposed JI project utilises one of two types of
incentives or their combination:
1) Discount;
The customers receive CFLs free of charge or at a heavily discounted price.
2) Rebate;
The customers pay full price of CFLs upfront and then are reimbursed gradually after certain
time periods in several instalments.
The incentives can vary for different types of consumers according to the marketing policies of
the project, and can be up to 50% or free of charge. In any case, the average (of all CFLs
distributed within the project for any given year) incentive will be no less than 20% of the
average market price of a CFL for that particular year. If in the future this condition is not met,
the project owner will re-evaluate the additionality of the project.
To bridge the cost differential between the market price of the CFLs and the price at which they
are distributed to the consumers, the JI mechanisms of Kyoto Protocol are harnessed. The project
owner covers the project cost through sale of GHG emission reductions.
Apart from the direct financial benefit to the project participants in terms of savings on their
electricity bills each year, the proposed JI project activity will also generate a range of less
tangible social outcomes in education, awareness and collateral energy saving measures. This
1
Global Wealth Databook, Research Institute of Credit Suisse, 2010, p. 72.
JOINT IMPLEMENTATION PROJECT MONITORING REPORT
Distribution of energy efficient light bulbs in public and private sectors of Ukraine
page 4
energy efficiency project will create an opportunity for collective action on climate change,
enhancing a sense of responsibility for the future of our planet.
A.5. Monitoring period:

Monitoring period starts on 01.01.2008 at 00:00 (for the part performed by PRIMLIGHT LLC)

Monitoring period ends on 31. 12. 2011 at 00:00 (for the part performed by PRIMLIGHT LLC)
A.6. Intended deviations or revisions to the determined PDD
There have been no revisions to the determined PDD.
A.7. Intended deviations or revisions to the determined monitoring plan
Based on the principles of conservatism in the calculation of GHG emission reductions under the
project was submitted coefficient which equals 0,889 taking into account the demand for CFL in
the absence of the project activity. The study, conducted by the project participant showed
distribution by types of lamps in Ukraine, the results of which are presented in Appendix 2 of the
PDD version 1.5 and in Table 1.
Table 1: Distribution by types of lamps
Type
Incandescent
Compact fluorescent lamps
High pressure gas discharge lamps
Other (not compact fluorescent, LED, etc)
Percentage
80%
10%
2%
8%
As the high pressure gas discharge lamps and other lamps (industrial spotlights, LED bulbs, etc.)
have a different cartridge and require additional hardware to install compared to an incandescent
lamp they cannot be considered in the process of baseline forming.
Eliminating the lamp provided above, we obtain the following ratio for the types of lamps in
Ukraine without the JI project: Incandescent - 88.9%, CFL - 11.1%. This ratio can draw the
following conclusions:
-
in the distribution of CFLs based on the needs of light, both in private and in the
commercial and public sectors, 11.1% of lamps that were installed before the project and
were replaced under the project activity was CFL or similar lamps;
JOINT IMPLEMENTATION PROJECT MONITORING REPORT
Distribution of energy efficient light bulbs in public and private sectors of Ukraine
-
page 5
in case of absence of the JI project, which provided favorable conditions for purchasing a
CFLs for consumers
-
11.1% of lighting power are still amounted the CFL or similar lamps.
From the above it follows that the reduction of GHG emissions occur only at 88.9% set by the
project activity CFL. Since the activities under this project will definitely affect statistics Market
lighting equipment Ukraine, this factor is taken unchanged during the term of the project, and is
equal to 0.889.
A.8. Implementation status of the project
Distribution to the households has been delayed due to time consuming infrastructure
development.
The total number of the distributed CFLs is presented in the following table and graph
Table 1: Yearly distributions of CFLs
Year
Planed
Fact (Gazotron)
Fact (Primlight)
Fact (total)
2008
2009
2010
2011
Total
(pieces)
1 078 644
1 140 776
707 371
8 000 000
10 926 791
(pieces)
152 254
112 785
129 011
394 050
(pieces)
1 089 143
1 901 839
680 146
3 671 128
(pieces)
1 241 397
2 014 624
809 157
4 065 178
Figure 1: Estimate and factual CFL distributions (millions)
JOINT IMPLEMENTATION PROJECT MONITORING REPORT
Distribution of energy efficient light bulbs in public and private sectors of Ukraine
page 6
The monitoring for the above mentioned period (01.01.2008 - 31.12.2011) has been conducted
by two entities, namely “Primlight LLC” and “Gazotron –Lux” Ltd. The CFLs from their
databases clearly traceable and totally different which excludes double counting.
The first periodic monitoring report for the period from 01.01.2008 to 31.12.2010 was based on
the data from “Gazotron –Lux” Ltd. And it was submitted on the 19th of September 2011. The
present monitoring report is based on the data from “Primlight” LLC with a separate database
which is an essential part of the report. Primlight electronic database is supported by
corresponding paper documentation such as invoices, contracts, etc. The CFLs reflected in this
monitoring report are only those installed until the end of 2010.
A.9. Changes since last verification
Not applicable
A.10. Person(s) responsible for the preparation and submission of the monitoring report
Table 2: Responsible for the preparation and submission of the monitoring report
PRIMLIGHT, LLC
Organisation:
Street/P.O.Box:
Shkilna Street
Building:
25-A, Office #10-A
City:
Petropavlivska Borschagivka
State/Region:
Kiev Region
Postal code:
08130
Country:
Ukraine
Phone:
38 067 231 19 29
Fax:
E-mail:
URL:
JOINT IMPLEMENTATION PROJECT MONITORING REPORT
Distribution of energy efficient light bulbs in public and private sectors of Ukraine
Represented by:
George Tikhonov
Title:
Vice – CEO
Salutation:
Last name:
George
Middle name:
Andrianovich
First name:
Tikhonov
Department:
Phone (direct):
Fax (direct):
Mobile:
38 067 231 19 29
Personal e-mail:
[email protected]
page 7
JOINT IMPLEMENTATION PROJECT MONITORING REPORT
Distribution of energy efficient light bulbs in public and private sectors of Ukraine
page 8
SECTION B. Key monitoring activities
B. 1. Project implementation status
The project activity started on 26.11.2007. The project currently at the phase of distribution of
CFLs, combined with monitoring activity (please see PDD section A.4.2. and corresponding
diagram – figure2). Apart from overlapping described in section A.7. of this report, there have
been no special events or amendments to project activities.
B. 2. Monitoring plan
The key points of monitoring plan are listed below.
Collection of CFL Nameplate Data
The project coordinator keeps a record of the power rating of the CFLs distributed during the
project activity and uses this to determine the weighted average power rating for the project
devices. CFLs distributed under the JI project are marked with a logo to ensure that they can be
unambiguously differentiated from other light bulbs.
Monitoring Use of Project Devices
Monitoring a sample of distributed CFLs to determine average hours of utilisation or total energy
consumption has been undertaken by installing metering equipment to consumers belonging to
the Project Sample Group (PSG). PSG size is 100 participants.
The annual operating hours of monitored devices are used to determine the energy baseline. The
average hours of use of light bulbs found in the PSG are directly extrapolated to all consumers
involved in the project. The purpose of establishing the PSG is to create a representative sample
of all other project consumers. It is not possible to monitor all consumers involved in the project,
and it is a fundamentally agreed scientific and statistical procedure to apply mean values
obtained through sampling to the broader population. Therefore, for each monitoring period a
mean value is obtained for the time of use t yon then statistically corrected to a confidence level of
95% (similar to AM0046 version 2), and extrapolated across the total number of bulbs Q j , y
operating during that monitoring period. This is used in the calculations of emission reductions
as stipulated in the equations provided in section C below.
Establishment of Project Sample Group
The procedure to determine the sample of CFLs ensures that they adequately represent the
broader population, minimizing sampling error. Given that participation in the project is
voluntary, determination of the exact population of participating consumers prior to
establishment of the PSG is not possible. In addition, because the project coordinator cannot
force consumers to participate in sample groups, the devices monitored in the resulting sample
JOINT IMPLEMENTATION PROJECT MONITORING REPORT
Distribution of energy efficient light bulbs in public and private sectors of Ukraine
page 9
are to a degree, self-selected rather than purely random. Despite these limitations, the project
owner ensures that devices sampled are representative of the broader population of measures in
participating consumers.
As discussed above, the results obtained from the sampling process are directly
extrapolated across the entire population of consumers participating in the project.
Therefore, the proportion of CFLs installed at PSG and continuing to function as
determined through the check is taken to be representative of the pattern occurring to all
consumers.
Project Database
The project owner develops and manages a project database that records all information
relevant to project activities and monitoring, including:
- A list of participating consumers, including information to identify consumers by name and
address.
- A record of the CFLs (date, number, type and power) provided to each consumer.
- A list of participants included in the PSG, including information to identify participants (name,
address and date added to the sample group).
- The following data relating to monitored CFLs and equipment:
o Identification number for each piece of equipment;
o Type of monitoring equipment and date of installation;
o Confirmation at each check that monitoring equipment is functioning;
o Confirmation at each check that the monitored CFL is functioning;
o Utilization data (hours of use and/or electricity consumption).
All current equipment was initially provided with international certification from manufacturer2.
Ukrainian National Center of Standardization, Metrology, Certification and Consumer Right
Protection confirmed compliance issuing Certificate of State Metrological Attestation on
08.07.20113
2
Certificate of conformity with compliance standards EN 61326:2002 for equipment for measure control and
laboratory use.
3
Certificate of State Metrological Attestation N 11-00/206 d.d.08.07.2011
JOINT IMPLEMENTATION PROJECT MONITORING REPORT
Distribution of energy efficient light bulbs in public and private sectors of Ukraine
page 10
B.3. Responsibilities of the monitoring team
Responsibilities of the monitoring team are presented in the following table.
Table 3: Personnel responsible for monitoring
Responsibility
Staff
General guidance
George Tikhonov
Vice- CEO (Primlight)
Selection & recruitment of
sample groups
Irina Kapinis, Liliya Slivchenko, Aleksey Ivanov, Leonid
Nevedomsky, Sergey Korniets
Sales managers (Primlight)
Periodic collection of
monitoring data
Irina Kapinis, Liliya Slivchenko, Aleksey Ivanov, Leonid
Nevedomsky, Sergey Korniets
Sales managers (Primlight)
Data base supervision
Miroslav Rudich
Financial Director (Primlight and Lummax)
Preparation of monitoring
reports for emission
reduction verification
Alexander Alexandrov
Head Analyst (Primlight)
Apart from monitoring activities the project involves a range of other operational activities.
These operations have been divided into seven broad categories and defined the management
responsibilities for each as detailed in the table below:
Table 4: Operational categories and management responsibilities of the project
Operational Category
Management Responsibilities and Arrangements
JOINT IMPLEMENTATION PROJECT MONITORING REPORT
Distribution of energy efficient light bulbs in public and private sectors of Ukraine
Product Supply
page 11
- Ensure timely production and supply of CFLs for the project
(responsible: George Tikhonov, Vice CEO, Primlight,
Sergei Pateichuk, Supply Director, Primlight)
Transport and Storage
Logistics
- Arrange transport of CFLs from the supply partner
- Arrange storage prior to distribution
- Delivery of CFLs to distribution hubs
(Yanislav Patsevich, Logistic Director, Primlight)
Distribution to Households
- Management of distribution points; stock; customer
transactions and staff
- Household data collection
(Oleg Timenko, Director of Sales, Primlight)
Distribution to Legal
Entities
- Management of stock and customer
transactions
- Company data collection
(Oleg Timenko, Director of Sales, Primlight)
Data Management
- Management of the database of distributed CFLs
(Nina Shashkina, Administrative Assistant, Primlight)
Monitoring Emission
Reductions
- Selection & recruitment of sample groups (Irina Kapinis
Manager of Regional Development, Primlight)
- Periodic collection of monitoring data
(Liliya Slivchenko, Sales Manager, Freelance)
Aleksey Ivanov, Leonid Nevedomsky, Sergey Korniets, Sales
Managers, Primlight)
- Preparation of monitoring reports for emission
reduction verification (Alexander Alexandrov, Head
Analyst, Primlight)
JOINT IMPLEMENTATION PROJECT MONITORING REPORT
Distribution of energy efficient light bulbs in public and private sectors of Ukraine
End-of-life Product
Disposal
- Arrangement and management of proper bookkeeping and
disposal
of end-of-life CFLs
Primlight)
Legal support
page 12
(Vice CEO, George Tikhonov
- Monitoring consistency of contracts and legal documentation
with Ukrainian laws and general commercial practice
(Constantine Kravchenko, Head of Legal Department,
Primlight).
JOINT IMPLEMENTATION PROJECT MONITORING REPORT
Distribution of energy efficient light bulbs in public and private sectors of Ukraine
page 13
SECTION C. Calculation of GHG emission reductions
The GHG reduction emissions are achieved due t o difference in energy consumption between CFLs and incandescent lamps. Power consumption
conversion table presented below:
Table 5: Conversion table between incandescent and fluorescent lamp power outputs
Incandescent
CFL
(Watts)
(Watts)
Wattage
difference
(Watts)
500
300
200
150
120
105
68
55
40
30
32
20
23
16
18
13
15
9
11
5
7
395
232
145
110
90
88
80
77
59
57
47
45
31
29
20
18
100
75
60
40
25
JOINT IMPLEMENTATION PROJECT MONITORING REPORT
Distribution of energy efficient light bulbs in public and private sectors of Ukraine
page 14
The lumen outputs of the CFLs that are used within the project are equal or exceed the corresponding lumen outputs of incandescent lamps (as per
table above). This means that the CFL that changes an incandescent lamp has the same or better “brightness”. This is confirmed by CFL certificates
and is a part of the project database presented in the Excel file which accompanies this report .
The GHGs included in the project boundary are summarised in the following table.
Table 6: Summary of gases and sources included in the project boundary and justification / explanation where gases and sources are not
included
Baseline
Power plants
servicing the
electricity grid
Project
Activity
Source
Power plants
servicing the
electricity grid
Gas
Included Justification / Explanation
?
CO2
Yes
Major source.
CH4
No
Minor source.
N2O
No
Minor source.
CO2
Yes
Major source.
CH4
No
Minor source.
N2O
No
Minor source.
If electricity demand drops, the first power plants that reduce production are the fossil fuels burning plants. By burning fossil fuels, power plants emit
CO2 as the main product of combustion process. Other GHGs are only emitted in relatively small quantities or not emitted at all. Advocating
conservative approach, the project team is not taking into consideration reductions of the GHGs other from CO2.
The data variables used for emission reductions are presented in the following table:
JOINT IMPLEMENTATION PROJECT MONITORING REPORT
Distribution of energy efficient light bulbs in public and private sectors of Ukraine
page 15
Table 7: Data variables
Data
Source of
variable
data
Data unit
Measured (m),
calculated (c),
estimated (e)
Recording
frequency
Proportion
of data to
be
monitored
How is the
data be
archived?
(electronic/
paper)
Comment
S
Project data
base
pieces
M
Real time
continuous
recording
100%
Electronic
Direct counting
Metering
devices of
the sample
group
hours
M
Monitored
continuously
with annual
recording and
aggregation
Project
sample
group
Electronic and
paper
Checks of the pieces
sample group
and
distribution
functions of
different
types of CFLs
M
Monitored
continuously
with annual
recording and
aggregation
Project
sample
group
Electronic and
paper
Total number
of CFLs
distributed
tˆ on
Average
operating
hours
Q
The number
of operational
CFLs
JOINT IMPLEMENTATION PROJECT MONITORING REPORT
Distribution of energy efficient light bulbs in public and private sectors of Ukraine
k
Wattage
difference
between CFL
and
corresponding
incandescent
lamps
EFCO 2, ELEC
Emission
factor
4
Direct
counting
Watts
m/e
State
Environmenta
l Investment
Agency of
Ukraine
tons of CO2 Not applicable
equivalent /
megawatt
hours
http://www.neia.gov.ua/nature/doccatalog/document?id=127171
page 16
Real time
continuous
recording
100%
Electronic and
paper
Please refer to table #3
Published
annually by
State
Environmental
Investment
Agency of
Ukraine
Not
applicable
Electronic
For the year 2008 4 -1,219
For the year 2009 5 - 1,237
For the year 2010 6 - 1,225
For the year 2011 7 - 1,227
As soon as a new baseline
emission factor of the
Ukrainian
electricity
system is published, the
project owner will make
appropriate modifications
of emission reduction
calculations at the stage of
monitoring
repot
development
JOINT IMPLEMENTATION PROJECT MONITORING REPORT
Distribution of energy efficient light bulbs in public and private sectors of Ukraine
Calculations of GHG emission reductions is divided in three steps:
5
http://www.neia.gov.ua/nature/doccatalog/document?id=127172
6
http://www.neia.gov.ua/nature/doccatalog/document?id=126006
http://www.neia.gov.ua/nature/doccatalog/document?id=127498
7
page 17
JOINT IMPLEMENTATION PROJECT MONITORING REPORT
Distribution of energy efficient light bulbs in public and private sectors of Ukraine
page 18
Step1 Calculation of hours of utilization
t ion, y  tˆion
,y  z 
 i, y
ni , y
y ;
(1)
Where
t ion, y - average operating time of CFLs in buildings of type i during period y , adjusted to 95%
confidence interval and measurement error (hours);
y - the time interval. For the first periodic monitoring report y =1(first time interval, starting on
01.01.2008 ending 31.12.2010);
z - standard normal for confidence level (z =1,96 for 95% confidence);
 y - average error of metering equipment for period y (hours);
tˆson, y - average operating time of CFLs in buildings of type i, during period y , from metering
devices readings (hours);
ni , y
ol , i , y
l 1
ni , y
tˆion
,y  
(2)
;
Where
ni,y is the number of metering devices for monitoring period y in buildings of type i;
oi , y - readings from the metering devices in period y in buildings of type i.
 o
2
ni , y
 i, y 
l 1
l ,i , y
 tˆ
ni , y
on
i, y

;
(3)
Where
 i, y is standard deviation of CFL’s operating time for period y in building i .
JOINT IMPLEMENTATION PROJECT MONITORING REPORT
Distribution of energy efficient light bulbs in public and private sectors of Ukraine
ny
 l, y
l 1
ny
y 
page 19
(4)
;
Where
 l , y maximum error of metering device l.
Step 2 Calculation of net electricity saving
ny
NES y 
i 1
my
Q
j 1
i, j, y
 k j  t ion, y / 1,000,000 ;
(5)
Where
my number of types of CFLs;
k j wattage difference between CFL and corresponding incandescent lamp (as per conversion
table 2) i.e. difference between project and baseline scenario (Watts);
t yon average operating time of CFLs during period y (hours);
Qi , j , y number of operational CFLs of type j in buildings of type i during monitoring period y.
The detailed calculation of the electricity saving is presented in the Excel file which
accompanies this report.
The final electricity saving for the monitoring report is:
NES 2 = 2 278 071
megawatt-hours
Step 3 Calculation of total emission reductions
ERy  0,889  NES y  EFCO 2, ELEC , y
Where
NES y - net electricity saving for period y (megawatt* hours),
JOINT IMPLEMENTATION PROJECT MONITORING REPORT
Distribution of energy efficient light bulbs in public and private sectors of Ukraine
page 20
0,889 - correction factor for baseline share CFL which were installed outside the project activity
EFCO 2, ELEC, y - emission factor (tons of CO2 equivalent /megawatt* hours).
The following three values of emission factors for years 2008, 2009, 2010, 2011 according to the
data from the National Environmental Investment Agency of Ukraine are:
EFCO 2, ELEC ,1 = 1,219 (tonnes CO2 еq /MW*h) for 2008
EFCO 2, ELEC, 2 = 1,237 - for 2009
EFCO 2, ELEC,3 = 1,225 - for 2010
EFCO 2,ELEC, 4 = 1,227 - for 2011
The detailed calculation of the emission reduction is presented in the Excel file which
accompanies this report.
The final emission reduction for this monitoring report is:
ER 2 = 2 486 627
tons of CO2 equivalent
With the yearly breakdown :
Table 9: Emission reductions for the period from 01.01.2008 to 31.12.2011
Year
Ex-ante
Reductions
(tons of CO2
equivalent)
2008
2009
2010
2011
Total
57 689
178 997
275 432
741 088
1 253 206
Monitored
reductions 1st
report
(tons of CO2
equivalent)
30 596
69 846
107 478
207 920
Monitored
reductions present
report
(tons of CO2
equivalent)
144 652
495 455
830 079
1 016 442
2 486 627
Total monitored
reductions for the
period from
01.01.2008 to
31.12.2011
175 248
565 301
937 557
1 016 442
2 694 547
JOINT IMPLEMENTATION PROJECT MONITORING REPORT
Distribution of energy efficient light bulbs in public and private sectors of Ukraine
page 21
There is a relatively large discrepancy between the ex ante emission reductions and the
monitored reductions (by both the first and the second reports). This discrepancy is attributed to
the difference between the theoretical hours of utilization and real ones. The default value for exante calculations was 3,7 operating hours (highly conservative), while monitored average value
was 8,43 operating hours. It can also be explained by the fact that during this period of
distribution mostly legal entities (offices, commercial buildings, manufacturing facilities, etc.)
were targeted, rather than individual households.