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ACTIVITIES IMPLEMENTED JOINTLY (AIJ)
 

Uniform Reporting Format:

Activities Implemented Jointly Under the Pilot Phase

List of Projects

A. Description of project

1) Title of project: Adavere, District Heating Renovation Project

2) Participants/actors:

Item Financier/Reporter Estonian co-reporter

Name of organisation(a):

Statens energimyndighet

Eesti Vabariigi Keskkonnaministeerium

Name of organisation (English):

Swedish National Energy Administration(*

Ministry of the Environment of the Republic of Estonia

Department:

Secretariat for Climate Policy and International Co-operation

International Relations Department

Acronym:

STEM

EKM

Acronym (English):

STEM

MoE

Function within activity:

Assigned by the Swedish Government for implementation including financing arrangements.

Estonian Climate responsible Organisation

Street:

Kungsgatan 43

Toompuiestee 24

Post code:

BOX 310, S-631 04

10149

City:

Eskilstuna

Tallinn

Country:

Sweden

Estonia

Telephone:

+46 16 544 20 00

+372 62 62 800

Fax:

+46 16 544 22 64

+372 62 62 801

E-mail:

klas.tennberg@stem.se

min@ekm.envir.ee

WWW-URL:

http://www.stem.se

http://www.envir.ee

Contact person (for this activity):

-------------------------------------

-------------------------------------

Surname:

Knutsson

Kratovits

First name, middle name:

Gudrun

Andres

Job title:

Head of Section, Climate Investment Programme

Counsellor

Direct tel:

+46 16 544 20 72

+372 62 62 841

Direct fax:

+46 16 544 22 64

+372 62 62 845

Direct E-mail:

gudrun.knutsson@stem.se

andres@ekm.envir.ee

(* From 1 January, 1998, the new Swedish National Energy Administration has taken over the responsibility for the Programme for an Environmentally Adapted Energy System in the Baltic region and Eastern Europe (EAES Programme) from NUTEK (Swedish National Board for Industrial and Technical Development).

Borrower

Name of organisation(a):

OÜ AVESOO

Name of organisation (English):

AVESOO Ltd

Department:

Acronym:

Acronym (English):

Function within activity:

Project owner

Street:

Post code:

48001 Adavere

City:

Jõgeva county

Country:

ESTONIA

Telephone:

+372 77 69 255

Fax:

+372 77 51 418

E-mail:

WWW-URL:

Contact person (for this activity):

-------------------------------------

Surname:

Teas

First name, middle name:

Valdek

Job title:

Managing direktor

Direct tel:

+372 77 69 255

Direct fax:

Direct E-mail:

Item Please fill in if applicable Please fill in if applicable

Name of organisation(a):

Sihtasutus Regionaalsed Energiakeskused

ÅF International

Name of organisation (English):

Regional Energy Centres in Estonia

ÅF International

Department:

Võru office

AF - International

Malmö

Acronym:

SA REK

ÅFI

Acronym (English):

REC

AFI

Function within activity:

Local reporter

Technical support

Street:

Liiva 12C

Stensjögatan 3

Post code:

65602, Võru P.O., BOX 43

S-217 65

City:

Võru

MALMÖ

Country:

ESTONIA

SWEDEN

Telephone:

+372 78 282 30

+46-40-37 50 00

Fax:

+372 78 282 31

+46-40-13 03 69

E-mail:

WWW-URL:

http://www.af.se/ens/english/rec

http://www.af.se

Contact person (for this activity):

-------------------------------------

------------------------------------

Surname:

Potter

Lindgren

First name, middle name:

Elmu

Ulf

Job title:

Consultant

project leader

Direct tel:

+372 78 282 30

+46-40-37 50 97

Direct fax:

+372 78 282 31

+46-40-13 03 69

Direct E-mail:

elmu@regen.werro.ee

Ulf.lindgren@mlm.pdn.af.se

a) Organisation includes: institutions, ministries, companies, non-governmental organisations, 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:

The village Adavere with around 750 inhabitants is located in the centre of Estonia. The distance from Tallinn is 120 kilometers. Adavere is a former agricultural kolkhoz administrative centre, and has a small district heating system with a heat output of about 2 MW to supply heat mainly to the residential buildings. Today, the collective farm is privatised and several smaller enterprises are established. They are now disconnected from district heating. In 1993 the investment projects became actual and it was caused by high price of heavy fuel oil and bad availability of oil. The World Bank has financed the conversion of the heating plant to biofuel firing. The converted boiler is in operation from autumn 1995. Another necessary investment project was started by STEM (former NUTEK) in 1994 with the aim to secure the heat delivery, install equipment to control both heat and domestic hot water supply in the buildings as well as introduce commercial delivery terms by metering.

Type of project:a)

energy efficiency

Location (exact, e.g. city, region,

state):

Adavere village

Jõgeva county

Estonia

Activity starting date:

14. september 1994 (Letter of Intent)

In operation from:

Autumn 1995

Expected activity ending date:

31. March 2005

Stage of activity:b)

Completed

Lifetime1)of activity if different from ending date:c)

Expected technical lifetime is 15 years which means that the plant is expected to be in operation till 2011.

Technical data:d)

The corroded main pipeline, a 450 m long part, has been replaced by a pre-insulated DN125 pipeline. Nearly all substations were rebuilt. The district heating network remained directly connected to the radiator system, but the heat supply can now be adjusted to the actual heat demand. This is made by installing a mixing pump with control valve, where the supply temperature is controlled as a function of the ambient temperature. Also some substations received control equipment in order to keep a constant domestic hot water temperature. New heat meters were installed in 14 substations.

The estimated energy saving: 0,4 GWh/hear from substations and 0,15 GWh/hyear from network.

Previous fuel (before boiler conversion): Mazut ( high-sulphur content heavy fuel oil)

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.

) The lifetime criteria has been arranged in different groups depending on type of implemented activities. This classification assumes a level of operation and maintenance which is normal in western countries.

Lifetime of activity

Heat production plants (bio fuel)

25 years

New installation of all main equipment parts (fuel handling system, firing equipment and boiler) and modernisation of secondary equipment.

15 years

Conversion of existing boiler but new installation fuel handling system and firing equipment. Modernisation of secondary equipment.

10 years

Limited installation of new equipment (only one part of the three main parts, normally the firing equipment). Modernisation of other equipment.

Heat distribution systems and sub-stations

25 years

Pre-fabricated pipes and installations using certified contractors and supervisor according to EN norms and applicable district heating practise

15 years

Pre-fabricated pipes and installations without using certified contractors and supervisor

10 years

Modernisation of existing pipes.

Energy efficiency in buildings

25 years

Additional insulation roofs walls etc. with Scandinavian technology.

New installed heating systems.

15 years

Renovation and balancing of heating systems including thermostat valves.

10 years

Weather stripping windows, doors etc.

* if a combination of measures is done a reasonable lifetime for the project have to be calculated.

4) Cost (to the extent possible):

To the investment costs are referred the cost of the investment proper and the accumulated interest during the grace period, generally 2 years.

The AIJ/JI cost items are the costs for:

  • Technical assistance, a technical and administrative support from consultants, during the period from definition of the project till commissioning. These costs are paid by STEM.
  • Follow-up, an annual technical and economic follow-up by consultants, hired by STEM, of the operating results of the plant with the objective to improve on its techno-economic sustainability and its climate effect. The cost indicated is an average cost per project.
  • Administration –Costs for seminars, handbooks, education (capacity building) and average costs of STEM staff per project.
  • Difference in interest rates. STEM applies for its loans generally an interest rate corresponding to 6-month STIBOR (Stockholm InterBank Rate, in April 1999 3,0 %). Assuming a normal lending rate of 7 % means that this loan is associated with a cost of 4 % in relation to normal lending rate.

Investment/instalment = the borrower’s possible own financing of the investment, followed by the borrower’s repayment of the loan.

All costs in USD

Country

Adavere (DH)

1995 1996 1997 1998 1999
0 1 2 3 4

Investment

1. Loan/debt to STEM

133625 144953 138953 120453 101918

2. Added costs

828 10500 3250 0 0

3.Technical assistance

67500 0 0 0 0

AIJ/JI

4. Follow up

0 10250 10625 2750 2834

A. Sweden

costs

5. Reporting costs

0 0 1063 0 930

6. Administration

66250 0 0 0 0

7. Difference in interest

4% 5798 5558 4818 4077

8.Accum. costs for AIJ/JI

133750 149798 167044 174612 182452

9.Total costs

268203 294751 305997 295065 284371

Investment

1. Investment/Instalment

0 0 9250 18500 18535

2. Estonia

AIJ/JI

2. Reporting costs

0 0 0 0 0

costs

3. Other costs

0 0 0 0 0

4. Accum. costs for AIJ/JI

0 0 0 0 0

5. Total costs

0 0 9250 27750 46285

1 USD=

8

SEK

5) Mutually agreed assessment procedures:

Describe the procedures, including name of organisations involveda):

The Ministry of the Environment of Estonia is a central Estonian authority responsible on reporting of JI projects. This authority assigns a local institution, which is involved into the evaluation of the climate effects of this project and takes the main responsibility to continue measuring, results collecting for JI-reporting.

a) Please ensure that detailed contact information for all organisations 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:

  • * Subsequent reports:

Third report. First report was submitted 1997.

2) This report is a joint report:

  • Yes.

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

cf. Annex II, section B

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 the following objectives in the Estonian Energy Law, Estonian National Environmental Strategy, Estonian National Environmental Action Plan, Act on Sustainable Development and the Long-term Development Plan for the Estonian Fuel and Energy Sector:

- efficient and sustainable use of energy resources;

- to increase the share of renewable energy sources in the primary energy demand from present 8% to 13% to the year 2010;

- to reduce the environmental damage arising from fuel and energy production, transport, conversion and distribution;

- to create the reliable energy conservation system stimulating the implementation of energy conservation measures by consumers;

- creation and usage of energy efficient technologies, fuel/energy consuming and diagnostic equipment;

- stimulation of environmental awareness and environmentally friendly consumption patterns;

- to attract foreign investments for projects which ensure better use natural resources as well as environmental improvement;

- to develop co-operation between Baltic, Nordic and Central European countries

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 quantitative information is too large, the source could be indicated.)

Item Please fill in

Describe environmental benefits in detail:

Annual emissions reduction:

Projected: 1999

258 ton CO2 466 ton CO2

4,2 ton SO2 7,5 ton SO2

0,7 ton NOx 1,2 ton NOx

Do quantitative data exist for evaluation of environmental benefits?

Yes. Some measurements have been carried out.

Describe social/cultural benefits in detail:

More stable heat supply to customers

Possibilities to regulate heat in apartments (no more overheated houses and high energy bills)

Domestic hot water at a sufficient and stable temperature (+55°C)

Increased motivation to pay energy bills

Do quantitative data exist for evaluation of social benefits?

Yes . Some reports have been produced.

PHARE programme Estonia. Energy Sector: Post Implementation Performance Analysis for Energy Investments, 1998.

Describe economic benefits in detail:

Decreased energy consumption

Reinvestment in boiler has been avoided

Energy use can now be charged by measured figures

Do quantitative data exist for evaluation of economic benefits?

Yes. Some reports have been produced.

PHARE programme Estonia. Energy Sector: Post Implementation Performance Analysis for Energy Investments, 1998.

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:

Present data reflect emission reductions using status quo (emissions in the period before the conversion to renewable fuel) for the baseline case. Calculations, according to the top-down method, for emissions from different types of projects in the baseline case are being made. The changed calculation method will result in a change in emission reduction.

The new data will be introduced as soon as available.

2) Estimated emissions with the activity:

Description of the scenario, including methodologies applied:

Emission reductions are calculated using the IPCC Guidelines, using the Carbon Emission Factor (CEF) for different types of fuel, using actual system efficiency. For boiler conversion, the decrease in emissions is calculated in relation to the amount of fossil fuel replaced (status quo).

For an energy efficiency project the decrease in emissions reflects the amount of fuel that is saved through the project. In the case that the system uses renewable fuels, the reduction is calculated comparing the amount of fossil fuels that was used before the conversion to renewable fuels.

Below comparison is based upon that the base-line scenario represents a status quo solution.

Fill in the following tables as applicable:

Summary table: Projected emission reductions:

GHG

Year 1

=1996

Year 2

=1997

Year 3

=1998

Year 4

=1999

...

Year 15

=2010

Planned energy saving from installation substations, MWh/year

400

400

400

400

400

Planned energy saving from network rehabilitation, MWh/year

150

150

150

150

150

A) Project baseline scenario

CO2

258

258

258

258

258

CH4

N2O

other

B) Project activity scenarioa)

CO2

0

0

0

0

0

CH4

N2O

other

C) Effect ( B-A )

CO2

-258

-258

-258

-258

-258

CH4

N2O

Other

D) Cumulative effect

CO2

-258

-517

-775

-1033

-3874

CH4

N2O

Other

a) Includes indirect GHG leakages.

Summary table: Actual emission reductions:

GHG

Year 1

= 1996

Year 2

= 1997

Year 3

=1998

Year 4

=1999

...

Year 15

=2010

Factual energy saving from installation substations, MWh/year

330

368

754

809

809

Factual energy saving from network rehabilitation, MWh/year

150

150

150

150

150

A) Project baseline scenario

CO2

223

242

438

466

466

CH4

N2O

other

B) Project activity scenarioa)

CO2

0

0

0

0

0

CH4

N2O

other

C) Effect ( B-A )

CO2

-223

-242

-438

-466

-466

CH4

N2O

Other

D) Cumulative effect

CO2

-223

-465

-903

-1368

-6490

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)

Amount

(US dollars)

Loan from NUTEK

133.679

Grant from NUTEK for technical assistance

67.500

1 USD = 8,00 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 STEM 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 "net-working" for the exchange of experience between plant owners with similar problems, e g "bio-clubs"

Technology transfer has taken place through:

  1. STEM technical specialist support to the local project leader and municipality;

Knowledge in negotiations to foreign companies;

Knowledge in managing and planning of projects;

Transferring of environmental issues to the local parties;

Transferring of knowledge in operation and maintenance issue.

  1. Personal involved in the project has been invited to different seminars and workshops and, documentation for training has been handed over.

There were arranged seminars through close cooperation between STEM and Estonian partners:

  • Environmentally Adapted Energy Systems in the Baltic Region and Eastern Europe - seminar in Tallinn , 14-15 April, 1994;
  • Environmentally Adapted Energy Systems in the Baltic Region and Eastern Europe - seminar and workshops in Tartu , 25 November, 1994 (prepared information by topics in Estonian more than 150 pages);
  • EAES Programme District Heating Day in Vändra, 27 July, 1995;
  • Environmentally Adapted Local Energy Systems - seminar and presentation of translated into Estonian booklet "Environmentally Adapted Local Energy Planning" in Rakvere, 11 November, 1998 and in Tartu, 12 November, 1998;
  • Energy efficiency projects in Mustamäe residential buildings - seminar in Tallinn, 16 September, 1996.

iv) Activities have been supported by STEM to stimulate cooperation with local experts, consultants, project owners to achieve two-way communication and to find respect for chosen solutions from both sides.

The Project has been visited by specialist of other areas for exchange of experience.

Endogenous capacity supported or enhanced:

Endogenous capacity

(Name of organisation1)

Development (DEV) /

enhancement (ENH)

Describe briefly

OÜ AVESOO

(DEV)

The staff of the boiler plant has got experience in installation and exploitation of modern western technology.

1) Please ensure that detailed contact information for all organisations 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 training of the local staff is necessary for operation and maintenance of the heat substations. The motivation of the staff to learn is very important to get good results.

0ne of the lessons learnt is that it is important to have persons responsible for the adjustment of the equipment for each building and that they have good understanding of the consequences of their actions.

Maintenance service of heat substations is necessary to develop.

2) Technical difficulties:

The high rate of change of the district heating supply temperature and week correlation between the supply temperature and outdoor air temperature. The service life of the district heating network is longer and the need for maintenance is lower if the rate of change of the temperature in the district heating network is slow.

In the substation units there are lack of pipe insulation and temperature meters.

The domestic hot water has been too hot. This is not necessary a consequence of the investment because the control of hot water has remained unchanged in most of the buildings. In some buildings there are installed a self-operated control valve with a setpoint not correct.

3) Effects encountered:

In the school the control unit of radiator network was out of use and the heating was manually controlled. The reason for this was to cut the heating costs!

At the end of year 1999 there was installed in the Pargi str. project building local boiler and the inhabitants will not use more district heating service.

4) Impacts encountered:

Better indoor climate in the most of the buildings and improved domestic hot water supply .

5) Other obstacles encountered:

The problems with the converted boiler (World Bank financing) and probably caused a "stripped down" version due to low budget will decrease the positive effect of the present district heating rehabilitation project. The pre-furnace needs some repairing and at the same time OÜ Avesoo has to keep its expenditures on minimum level, as the clients are in difficulties to pay their heat bills ( low income in the agricultural sector). There is risk that the clients will start disconnecting from district heating with a rising heat price.

6) Other:

The district heating plant in Adavere is down outside the heating season. This means corrosion problems for the boilers and the pipeline. The heating season is started too late and ended too early.

Calculations of the volume of emissions of sulphur dioxide and nitrogen oxide in the section D are revised and new emissions values are calculated according to the Regulation No. 33 of 17. March 1999 of the Ministry of the Environment "The procedure and methods of determination of the volume of pollutants from combustion plants to the air".


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