1. UNIDO-GEF Industrial Energy Efficiency Project in Macedonia
Ana Petrovska
National Project Manager
REC Country Office Macedonia
Marco Matteini
Industrial Development Officer
Department of Energy
UNIDO
14 December 2017
Skopje, Macedonia

2. Agenda Project overview Implementation Progress
Component 1
Component 2
Component 3
Planned activities - Jan-Jun 2018
Other issues 2

3. UNIDO & Executing Partners
Project at a Glance
Title:
Catalyzing market transformation for industrial energy efficiency and accelerate investments in best available practices and technologies in the FYR of Macedonia
Objective: Reduce greenhouse gases emissions of Macedonian industry through improved energy efficiency
Implementing Agency: UNIDO
Executing Partners: Min. of Environment & PP, Min. of Economy, Energy Agency, Macedonia Bank for Development and Promotion, REC Country Office Macedonia, Macedonian industries, Faculty of Technology and Metallurgy, USAID/Timel Proekt and others
Budget: USD 1,400, plus USD 5,900,000 co-financing
Duration:
UNDP will work together with EIE to serve the large industries and UNIDO wilt KOSGED to serve the SMEs.
UNIDO & Executing Partners 3 3

4. Fig. 1 Industrial energy use by energy source in 2014
Project Context
In industry accounted for about 30% of final energy use in Macedonia or ktoe (3rd NEEAP)
Industry generates ~ 28% of national GDP and it occupies ~ 30% of labour force
Iron and Steel, Glass and Construction materials, Food and Beverages account for ~ 85% of industrial energy consumption
Perceived potential energy savings without major technological changes in the range of 10-20%
Fig. 1 Industrial energy use by energy source in 2014 4 4

5. Operational in 18 countries
UNIDO IEE-EnMS-ESO Programme
Operational in 18 countries
Planned activities in 10 countries
Operational
South Africa
Moldova
Russia
Turkey
Ecuador
Malaysia
Thailand
Viet Nam
India
Philippines
Egypt
Indonesia
Iran
Ukraine
Colombia
Macedonia
Myanmar
Georgia
Planned activities
Energy Management Systems, together with energy system optimization, is the current main thematic area on UNIDO‘s interventions.
Other donors
Swiss State Secretariat for Economic Affairs
UK Department for International Development
Government of South Africa
Government of Italy 5

6. IEE Macedonia Project Structure
Component 1
Policy & Institutions
Energy Management Policy Programme
Personnel certification requirement for large energy consumers
EnM Practitioner Certification Scheme
Incentives for EnMS/ISO implementation
IEE best-practice information & dissemination programme
Industrial energy data management tool
Assessment of climate technologies for industry
Strengthening of IEE institutional expertise
Component 2
Market Services, Skills & Implem.
Training & qualification for local IEE consultants
Energy Management Systems (EnMS) in line with ISO50001
Steam System Optimization (SSO)
Compressed-air System Optimization (CASO)
Training for enterprises
Implementation of EnMS, SSO and CASO
Integration of ISO and ISO14001
Component 3
Enhancing Investments
Technical assistance facility for IEE investment proposals preparation and appraisal
Performance-based cash- premium for IEE investments
Training of local IEE consultants
Training of lending officers of Macedonian banks 6 6

7. Services, Skills & Implem.
Project Timelines
2015
2016
2017
2018
Component 1
Policy & Institutions
Working Group on EnMS Policy Programme
Working Group on Climate Change Mitigation Technologies
Component 2
Services, Skills & Implem.
Energy Management System (EnMS) Programme
Steam System Optimization (SSO) Programme
Compressed-air System Optimisation (CASO) Programme
Component 3
Investments
Technical assistance facility for IEE investments
Performance-based incentive for IEE investments
Jun
Sep
Dec
Apr
Jul
Sep
Dec
Apr
Jul
Sep
Dec
Time 7 7

8. Project Key Performance Indicators
KPI
Target
Project Objective
1. GHG emission reductions
133,000 ton CO2eq (7years)
2. Involvement of women in trainings
≥ 20%
3. Legal requirement for EnM personnel certification
Enacted
Component 1
Policy & Institutions
4. Certification program for EnM Practitioner
Established
5. Incentive for EnMS/ISO implementation
Pilot operational
6. IEE Best-Practice Dissemination Programme
Web-platform + Events
7. Industrial Climate Technologies study
Report
8. Number of EnMS implemented in enterprises 15
Component 2
Services, Skills & Implem.
9. Number of EnMS Experts Qualified 20
10. Number of ESO Experts Qualified 30
11. Number of enterprises trained in EnMS & ESO 50
Component 3
Investments
12. IEE investments mobilized
4,000, 000 USD 8 8

9. Project KPI - Progress KPI Target Progress 1. GHG emission reductions
Objective
1. GHG emission reductions
133,000 ton CO2eq
> 30,000 ton (2 yrs)
2. Involvement of women in trainings
≥ 20%
32.5% E, 19% S, 20% C
3. Legal requirement for EnM personnel certification
Enacted
Analysis & EED
Comp. 1
Policy &
Institutions
4. Certification program for EnM Practitioner
Established
Analysis & EED
5. Incentive for EnMS/ISO implementation
Pilot operational
Established
6. IEE Best-Practice Dissemination Programme
Web-platform + Events
Draft TOR
7. Industrial Climate Technologies study
Report
In Planning
8. Number of EnMS implemented in enterprises 15
12 Pilot + 7 Repl.
Comp. 2
Services,
Skills &
Implement.
9. Number of EnMS Experts Qualified 20
17 Pilot + 7 Repl.
10. Number of ESO Experts Qualified 30
11 S + 15 C trainees
11. Number of enterprises trained in EnMS & ESO 50
60+ EnMS , 31 ESO
325,000 EUR investments
Comp. 3
Enhancing
ivestments
12. IEE investments mobilized
4,000, 000 USD
Discussion with MBDP 9

10. Progress – Component 1 As of May 2016 Component 1
Policy & Institutions
Energy Management Policy Programme
Personnel certification requirement for large energy consumers
EnM Practitioner Certification Scheme
Incentives for EnMS/ISO implementation
IEE best-practice information & dissemination programme
Industrial energy data management tool
Assessment of climate technologies for industry
Strengthening of IEE institutional expertise
As of May 2016
Draft ToRs for Working Group (WG) developed and under discussion with key relevant counterparts.
Agreed cooperation with USAID
Financial incentives for EnMS/ISO implementation/certification established by the Ministry of Economy
Who is eligible: Processing industries, National Classification No. 2
What is eligible: Projects on EE and/or certification in line with ISO 50001; Projects for enhancing productivity and efficiency
What amount: 75% of total amount and < ,00 MKD (approx. 3,000 EUR) 10 10

11. Progress – Component 1 As of Dec 2017 Component 1
Policy & Institutions
Energy Management Policy Programme
Personnel certification requirement for large energy consumers
EnM Practitioner Certification Scheme
Incentives for EnMS/ISO implementation
IEE best-practice information & dissemination programme
Industrial energy data management tool
Assessment of climate technologies for industry
Strengthening of IEE institutional expertise
As of Dec 2017
Ministry of Economy established Working Group (WG) on Energy Efficiency Directive in Feb 2017
Training/Workshop for policy-makers and stakeholders on Art.7, Art.8 and Art.16 in Apr 2017
Energy Management Policy Programme to be integrated and supportive of EED transposition and implementation
Ongoing technical assistance to inform decision-making on transposition of Art.7, Art. 8 and Art. 16 of the EED
Draft Terms of Reference for IEE B-P information & dissemination programme discussed with Energy Agency
Continued collaboration and coordination with USAID
New coordination and collaboration with Energy Community 11 11

12. Progress – Component 1 As of Dec 2017 Component 1
Policy & Institutions
Energy Management Policy Programme
Personnel certification requirement for large energy consumers
EnM Practitioner Certification Scheme
Incentives for EnMS/ISO implementation
IEE best-practice information & dissemination programme
Industrial energy data management tool
Assessment of climate technologies for industry
Strengthening of IEE institutional expertise
As of Dec 2017
Draft ToRs for Working Group (WG) developed and under discussion with key relevant counterparts.
Preparation of ToRs for Assessment study started 12 12

13. Market Services, Skills & Implem.
Progress – Component 2
Component 2
Market Services, Skills & Implem.
Training & qualification for local IEE consultants
Energy Management Systems (EnMS) in line with ISO50001
Steam System Optimization (SSO)
Compressed-air System Optimization (CASO)
Training for enterprises
Implementation of EnMS, SSO and CASO
Integration of ISO and ISO14001
As of Dec 2017
1st EnMS Capacity Building and Implementation programme completed
17 National EnMS Experts qualified (11 M; 6 F)
11 Enterprise EnMS Practitioners certified
2nd EnMS Capacity Building and Implementation programme started n April 2017 (Replication)
75% National trainers; 25% Intern. Trainers
6+1 new enterprises + 7 Expert trainees
4 papers presented at international conference by qualified national EnMS experts
Master thesis related to EnMS under development
Discussion with FTM and FME on introduction of EnMS curriculum elements in under/post graduate courses 13 13

14. Market Services, Skills & Implem.
Progress – Component 2
Component 2
Market Services, Skills & Implem.
Training & qualification for local IEE consultants
Energy Management Systems (EnMS) in line with ISO50001
Steam System Optimization (SSO)
Compressed-air System Optimization (CASO)
Training for enterprises
Implementation of EnMS, SSO and CASO
Integration of ISO and ISO14001
As of Dec 2017
Steam System Optimization (SSO) EXPERT programme completed
11 National SSO Experts qualified (9M; 2F)
6 Enterprises
Steam System measuring equipment procured (from Macedonian supplier) and made available to SSO trainees/experts for use free of charge
5+6 Steam System Assessments carried out in program
After end of the programme
6 qualified national SSO experts used measuring equipment kit (75 working days)
7 steam system assessments made + 10 Action Plans
Discussion with FTM and FME on introduction of SSO curriculum elements in under/post graduate courses 14 14

15. Market Services, Skills & Implem.
Progress – Component 2
Component 2
Market Services, Skills & Implem.
Training & qualification for local IEE consultants
Energy Management Systems (EnMS) in line with ISO50001
Steam System Optimization (SSO)
Compressed-air System Optimization (CASO)
Training for enterprises
Implementation of EnMS, SSO and CASO
Integration of ISO and ISO14001
As of Dec 2017
Compressed-air System Optimization (CASO) EXPERT programme started in Sep 2017
15 National CASO Expert Trainees (12M; 3F)
7 Enterprises participating
1st training module delivered in Nov 2017
Baseline study of local compressed-air system market carried out
Compressed-air systems measuring equipment being procured from Macedonian supplier
……. 15 15

16. Market Services, Skills & Implem.
Progress – Component 2
Component 2
Market Services, Skills & Implem.
Training & qualification for local IEE consultants
Energy Management Systems (EnMS) in line with ISO50001
Steam System Optimization (SSO)
Compressed-air System Optimization (CASO)
Training for enterprises
Implementation of EnMS, SSO and CASO
Integration of ISO and ISO14001
As of Dec 2017
USER training (2-day) delivered
6 EnMS (jointly with USAID) + 1
100 + participants
80 organizations
3 STEAM System Optimization
35 participants
20 organizations
1 COMPRESSED-AIR System Optimization
34 participants
20 companies/organizations 16 16

17. Market Services, Skills & Implem.
Progress – Component 2
Component 2
Market Services, Skills & Implem.
Training & qualification for local IEE consultants
Energy Management Systems (EnMS) in line with ISO50001
Steam System Optimization (SSO)
Compressed-air System Optimization (CASO)
Training for enterprises
Implementation of EnMS, SSO and CASO
Integration of ISO and ISO14001
As of Dec 2017
EnMS implemented in 12 enterprises during 1st Program
Enterprises performance
5 - Excellent
1 - Good
2 – Satisfactory
4 - Unsatisfactory
Energy Savings (2016): GWh (63% no cost)
GHG Emission reductions (2016): 11,700 ton CO2
Money savings (2016): 862,000 USD (52% at no cost)
Investments triggered by EnMS (2016): 325,000 EURO 17 17

18. Market Services, Skills & Implem.
Progress – Component 2
Component 2
Market Services, Skills & Implem.
Training & qualification for local IEE consultants
Energy Management Systems (EnMS) in line with ISO50001
Steam System Optimization (SSO)
Compressed-air System Optimization (CASO)
Training for enterprises
Implementation of EnMS, SSO and CASO
Integration of ISO and ISO14001
As of Dec 2017
EnMS implemented in 7 new enterprises  Replication Program
Enterprises
EVN Macedonia
Adient
Balcan Energy Group
Sistina
Sasa
Toranica
Zletovo
Total Annual Energy Consumption (2016): > 60 GWh
EnMS Commitment Module and EnMS Planning Module delivered 18 18

19. Enhancing Investments
Progress – Component 3
Component 3
Enhancing Investments
Technical assistance facility for IEE investment proposals preparation and appraisal
Performance-based cash- premium for IEE investments
Training of local IEE consultants
Training of lending officers of Macedonian banks
As of Dec 2017
First draft of Work-Flow for TA Facility developed
First draft of Work-flow for Performance-based cash- premium developed
First draft of collaboration agreement between UNIDO and MBDP developed 19 19

20. Project KPI - Progress KPI Target Progress 1. GHG emission reductions
Objective
1. GHG emission reductions
133,000 ton CO2eq
> 30,000 ton (2 yrs)
2. Involvement of women in trainings
≥ 20%
32.5% E, 19% S, 20% C
3. Legal requirement for EnM personnel certification
Enacted
Analysis & EED
Comp. 1
Policy &
Institutions
4. Certification program for EnM Practitioner
Established
Analysis & EED
5. Incentive for EnMS/ISO implementation
Pilot operational
Established
6. IEE Best-Practice Dissemination Programme
Web-platform + Events
Draft TOR
7. Industrial Climate Technologies study
Report
In Planning
8. Number of EnMS implemented in enterprises 15
12 Pilot + 7 Repl.
Comp. 2
Services,
Skills &
Implement.
9. Number of EnMS Experts Qualified 20
17 Pilot + 7 Repl.
10. Number of ESO Experts Qualified 30
11 S + 15 C trainees
11. Number of enterprises trained in EnMS & ESO 50
60+ EnMS , 33 ESO
325,000 EUR investments
Comp. 3
Enhancing
ivestments
12. IEE investments mobilized
4,000, 000 USD
Discussion with MBDP 20

21. Project KPI - Progress KPI Target Progress
Objective
1. GHG emission reductions
133,000 ton CO2eq
> 30,000 ton (2 yrs)
1. Cumulative Energy Savings ( )
(only 12 pilot enterprises, no replication companies)
> 40,000 MWh
3rd NEEAP Energy Savings target for Industry
(Cumulative )
UNIDO-GEF IEE Project Energy Savings
( )
19.8 ktoe = GWh
40 GWh (17.9%) 21

22. Project KPI - Progress KPI Target Projection
Objective
1. GHG emission reductions
133,000 ton CO2eq
> 60,000 ton (3 yrs)
1. Cumulative Energy Savings ( )
(only 12 pilot enterprises, no replication companies)
> 70,000 MWh
3rd NEEAP Energy Savings target for Industry
(Cumulative )
UNIDO-GEF IEE Project Energy Savings
( )
19.8 ktoe = GWh
70 GWh (31.3%) 22

23. Planned Activities – Jan-Jun 2018
Issue contract for IEE B-P Information & Dissemination programme
Submission on Art.7, Art.8 and Art.16 research and analytical report for EED transposition to Ministry of Economy
Expert IEE advice in Energy Efficiency Law
Assessment study of Climate Technologies in industry
Development of EnM Practitioner Certification
Identification and prioritization of 1-2 by-laws to support
Jan-Feb
Comp. 1
Policy &
Institutions
Jan-Feb
Jan-Mar
Feb-Jun
Apr----
Apr-Jun
Comp. 2
Services,
Skills &
Implement.
2nd Training Module of CASO EXPERT Programme
CASO assessments by EXPERT Trainees
Implementation Training Module (EnMS Replication Programme)
Checking Training Module (EnMS Replication Programme)
May
Mar-Jun
Mar
(Sep)
Comp. 3
Enhancing
ivestments
Finalization of Collaboration Agreement UNIDO-MBDP
Processing of contracts for fund transfer
Establishment of the TA Facility and Cash Premium Schemes
Feb-Mar
Mar-Apr
May---- 23

24. Other Issues Extension of the Project Completion till 31 December 2019
Repurposing of some project funds taking into account cost-efficiency and achievements under Project Component 2 24

25. THANK YOU!