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Annex I



List of Projects

A. Description of project

1) Title of project:

Jekabpils Boiler Conversion

2) Participants/actors:

Please fill in one table for each participant/actor. For individuals fill in as from item Function within activity".

Item Please fill in if applicable
Name of organization(a): Närings- och Teknikutvecklingsverket
Name of organization (English): Swedish National Board for Industrial and Technical Development
Department: Environmental Energy System in the Baltic Region and Eastern Europe.
Acronym: NUTEK
Acronym (English): NUTEK
Function within activity: Assigned by the Swedish Government for Implementation including financing arrangements.
Street: Liljeholmsvägen 32
Post code: S-117 86
City: Stockholm
Country: Sweden
Telephone: +46-8-681 96 07
Fax: +46-8-681 96 67
Contact person (for this activity): -------------------------------------
Surname: Liib
First name, middle name: Aili
Job title:
Direct tel: +46-8-681 96 72
Direct fax: +46-8-681 96 67
Direct E-mail:

a) Organization includes: institutions, ministries, companies, non-governmental organizations, etc. involved in the activity, i.e. research institutes associated with the project, auditors, government agency closely following the activity.

3) Activity:

Item Please fill in if applicable
General description: Jekabpils is a town in south-east of Latvia with several boilerplants and district heating networks. There is one smaller network with one boilerplant which annual energy production is 7500 MWh.
Type of project:a) conversion to renewable energy
Location (exact, e.g. city, region,


Jekabpils town

Jekabpils district


Activity starting date: 17. October 1995 (letter of Intent)
Expected activity ending date: 30. september 2005
Stage of activity:b) Complete
Lifetime of activity if different from ending date:c)
Technical data:d) In this project, a conversion to bio fuel has been made by the installation of a completely new boiler (1.5 MW) to replace one of the old ones. The installation is made up of a fuel storage with an automatic fuel handling system, combustion equipment and flu-e gas cleaning system. Estimated energy production 7000 MWh/year.

a) For example, using Intergovernmental Panel on Climate Change (IPCC) classification: energy efficiency; renewable energy; fuel switching; forest preservation, restoration or reforestation; afforestation; fugitive gas capture; industrial processes; solvents; agriculture; waste disposal or bunker fuels.

b) Circle the appropriate option.

c) Methodological work will be required to define lifetime of activities.

d) Methodological work will be required to determine for each type of activity what the minimum data requirements are.

4) Cost (to the extent possible):

Item Year 0

= 1995

Year 1

= 1995

Year 2

= 1996


3 -9

Year 10
Cost of the project in US$: 189330
AIJ component in US$: 189330 6.700 6.700
US$ per avoided ton of CO2 equivalent: 7,9 15,1

Describe briefly how costs are determined:

The investment proper is calculated to be 113.333 USD and technical support 75.997 USD.

The lifetime or the project is foreseen to be minimum 10 years (corresponding to the maturity period of the loan). The following definitions are used:

Cost for the project in year 0:

Costs for investment (= loan from NUTEK) and technical assistance (= grant from NUTEK) are summarized over the investment period (up to the time for commissioning) and stated for year 0, being the year of the date for commissioning.

Cost for the project in consequtive years:

Costs (i e possible costs for investment and costs of AIJ component character) are shown per calender year. Year 1 represents part of the calender year after the date of commissioning.

AIJ component in year 0:

The costs for technical assistance up to commissioning have a clear character of AIJ component. The costs for the investment can also be maintained to have the an AIJ character, as the loan is a cost for the host country, and as the loan represents a business risk for the financier, NUTEK.

AIJ component in consequtive years:

Consist a o of the following parts:

1. Costs for follow-up after the date of commissioning (information exchange to secure a high utilisation of the investment + costs for measuring and reporting to FCCC). The cost for follow-up for the years up to and including 1996 is calculated by dividing NUTEKs total costs for follow-up by the total years of operation of all NUTEK-financed projects.

2. Difference between a market interest rate and the favourable interest rate (STIBOR) which NUTEK applies. This can be settled between the co-reporting parties annually.

3. Business risk.

US $ per avoided ton of CO2 equivalent equals:

- at year 0 the cost of the project/AIJ component cost divided by the projected decrease in CO2 emission over the 10 year lifetime of the project

- for consequtive years the cost of the project/AIJ component divided by actual figure for decrease of CO2 emission for each of the years 1 - 10.

Note: Possible costs for organisations in the host country may be suggested by the co-reporter in the host country.

5) Mutually agreed assessment procedures:

Describe the procedures, including name of organizations involveda):
It is intended that upon agreement with a central Latvian authority on reporting of JI-projects, this authority will assign a local organisation, which will be involved in the evaluation of the climate effects of this project. After an initial work in cooperation with NUTEKís assigned consultant, this local organisation will take the main responsibility the continued measuring for JI-reporting.

a) Please ensure that detailed contact information for all organizations mentioned is reported under

section A.2 above.

B. Governmental acceptance, approval or endorsement

Bearing in mind that all activities implemented jointly under this pilot phase require prior acceptance, approval or endorsement by the Governments of the Parties participating in these activities, which shall be shown as follows:

(a) In the case of joint reporting, the report is submitted by the designated national authority of one participating Party with the concurrence of all other participating Parties as evidenced by attached letters issued by the relevant national authorities;

(b) In the case of separate reporting, the reports are submitted separately by the designated national authority of each and every participating Party. Information will only be compiled once reports have been received from all participating Parties.

1) For the activity:

* First report and joint reporting: Agreement with designated national authority is planned to be signed summer or autumn 1997.

* Subsequent reports:

Activity was: suspended

terminated earlier


2) This report is a joint report:

Yes, Agreement with designated national authority is planned to be signed summer or autumn 1997.


3) General short comment by the government(s) if applicable:

Comment by the Swedish government

The Swedish Parliament decided already in 1993 to establish a program for what was later to be known as AIJ projects.

The decision stemmed from the perception that Swedish mitigation costs were relativeliy high when compared to most countries especially some of our neighbouring countries Acccordingly, Swedish policy against climate change should include promotion of activities in these countries.

The relatively high mitigation costs in Sweden are caused by a high share of non-fossil energy in the energy balance, efficient use of energy due to high carbon dioxide taxes and programmes for the introduction of renewables as well as for increased energy efficiency. (The background is more fully described in the Swedish national report to the FCCC)

In the bill leading to the establishment of the programme now reported the minister of energy in 1993 declared that Sweden immediatelly should take action to assist the Baltic countries to make their energy system more efficient. Such actions were seen to be in accordance with the notion of JI as conveyed in the FCCC. They should also contribute to the cost-effectiveness of Swedish measures against climate change . The minister also underlined in his message to the Parliament that Sweden should have a pragmatic approach in her climate change policy

That the criteria for JI were not yet determined when the programme was launched was not to be considered as any obstacle for the promotion and introduction of Swedish climate change policy initiatives in the Baltic countries, Poland and other East European countries. Such measures should be seen as an initial step towards an efficient, sustainable and equitable international climate strategy.

In the Swedish energy agreement of 1997 it was concluded that "Sweden shall, as a member of the European Union, work towards a common climate policy and should actively promote international cooperation in the climatic field. In particular, Sweden shall engage in the development of efficient policy means within the framework of the climate policy of EU and the Framework Convention on Climatic Change. Sweden should also cooperate with other countries in the way envisaged by the Climate Comvention, through so called joint implementation."

C. Compatibility with and supportiveness of national economic development and socio economic and environment priorities and strategies

Describe (to the extent possible) how the activity is compatible with and supportive of national economic development and socio economic and environment priorities and strategies
The project meets with a o the following objectives in the Government Policy of the Republic of Latvia:

- priority to a o projects with use of local energy sources

-saving and efficient use of energy is in the focus of govenment attention. Special attention is paid to measuring, records and statistics of energy production and consumption.

- reduction of the volume of pollutant emissions and residues will be carried out gradually and purposefully with regard to the existing technological level of energy utilities and the actual economical possibilities.

D. Benefits derived from the activities implemented jointly project

Whenever possible, quantitative information should be provided. Failing that, a qualitative description should be given. If quantitative information becomes available, it could be submitted using the update(s). (If the amount of quantative information is too large, the source could be indicated.)

Item Please fill in
Describe environmental benefits in detail: Annual emissions reduction:

2400 ton CO2

37.0 ton SO2

1.0 ton NOx

Lower pollution.

Sawmill waste can be used

Do quantitative data exist for evaluation of environmental benefits? No.
Describe social/cultural benefits in detail: More stable energy supply.

Improved working conditions, increased motivation

Improved trade balance.

Do quantitative data exist for evaluation of social benefits? No.
Describe economic benefits in detail: Decreased fuel costs about 3 USD
Do quantitative data exist for evaluation of economic benefits? No.

E. Calculation of the contribution of activities implemented jointly projects that bring about real, measurable and long-term environmental benefits related to the mitigation of climate change that would not have occurred in the absence of such activities

1) Estimated emissions without the activity (project baseline):

Description of the baseline or reference scenario, including methodologies applied:

The reference scenario represents at status quo situation. The decrease in energy consumption that followed after 1990 is assumed to have reached full impact, meaning a stable heat consumption over the life-time of the project. Loan from NUTEK is so far one of the very few sources to finance this type of investments for municipalities in Latvia. As this would imply that an alternative investment would not have taken place, neither the consequence of another investment, nor the consequence of an alternative technical solutions are considered.î

2) Estimated emissions with the activity:

Description of the scenario, including methodologies applied:

Cf. E.1. above.

Fill in the following tables as applicable:

Summary table: Projected emission reductions:

GHG Year 1

= 1996

Year 2 ... Year 10
A) Project baseline scenario CO2 2400 2400 2400
CH4 -
N2O -
other -
B) Project activity scenarioa) CO2 0 0 0
CH4 -
N2O -
other -
C) Effect ( B-A ) CO2 -2400 -2400 -2400
CH4 -
N2O -
Other -
D) Cumulative effect CO2 -2400 -4800 -24000
CH4 -
N2O -
Other -

a) Includes indirect GHG leakages.

Summary table: Actual emission reductions:

GHG Year 1

= 1996

Year 2

= 1997

... Year X
A) Project baseline scenario CO2 1700
CH4 -
N2O -
other -
B) Project activity scenarioa) CO2 0
CH4 -
N2O -
other -
C) Effect ( B-A ) CO2 -1700
CH4 -
N2O -
Other -
D) Cumulative effect CO2 1700
CH4 -
N2O -
Other -

a) Includes indirect GHG leakages.

F. Additionality to financial obligations of Parties included in Annex II to the Convention within the framework of the financial mechanism as well as to current official development assistance flows

Please indicate all sources of project funding.

Category of funding

(For each source one line)


(US dollars)

Loan from NUTEK 113333 USD
Grant from NUTEK for technical assistance 75997 USD

1 USD = 7.50 SEK

G. Contribution to capacity building, transfer of environmentally sound technologies and know-how to other Parties, particularly developing country Parties, to enable them to implement the provisions of the Convention. In this process, the developed country Parties shall support the development and enhancement of endogenous capacities and technologies of developing country Parties

Transfer of environmentally sound technologies and know-how Describe briefly
Schematically, the transfer of knowledge involves the following activities over time:

i) Technology transfer through NUTEKs technical specialist during the implementation of the project.

ii) Technology transfer through cooperation between foreign supplier and local partner

iii) Conferences, seminars, documentation and training.

iv) Stimulate înet-workingî for the exchange or experience between plant owners with similar problems, e g îbio-clubsî.

technology transfer has taken place through

i) NUTEKs technical specialist support to the local project leader and municipality.

iii) personal from boilerplant has been invited to different seminars and work-shops, documentation for training has been handed ower

iv) boilerplant has has an exchange of experience with other boiler plants.

Endogenous capacity supported or enhanced:

Endogenous capacity

(Name of organization1)

Development (DEV) /

enhancement (ENH)

Describe briefly
SIA Orion ,

HOTAB, Kazlu Ruda metalas

(DEV) A new boiler and prefurnace has been developped together with NUTEKs concultant ÅF Energikonsult to implement smaller conversion projects in the Baltic States and Russian

1) Please ensure that detailed contact information for all organizations listed is reported under section A.2 above.

H. Additional comments, if any, including any practical experience gained or technical difficulties, effects, impacts or other obstacles encountered

Fill in as appropriate:

1) Any practical experience gained: The goal for the project was to use as much local production as possible. The result is over all positive. Smaller co-ordination problems have occurred.

2) Technical difficulties: Different contractors for control resp mecanical delivieries has caused problem with co-ordination.

3) Effects encountered:

4) Impacts encountered: During the first year of production stops depending upon technical reasons. Co-ordination problems between three main suppliers ( Boiler, prefurnace and control system) . Also lack of education and information.

5) Other obstacles encountered: Smaller units need more support in the start-up phase and local qualified support should be used.

6) Other: Building work, and start up was delayed because of the hard winter .