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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: Valka, Boiler conversion project

2) Participants/actors:

Item Financier/Reporter Co-reporter

Name of organisation(a):

Statens energimyndighet

Vides Aizsardzîbas un Regionâlâs Attîstîbas Ministrija

Name of organisation (English):

Swedish National Energy Administration

Ministry of Environmental Protection and Regional Development of the Republic of Latvia

Department:

Secretariat for Climate Policy and International Co-operation

Environmental Protection Department

Acronym:

STEM

VARAM

Acronym (English):

STEM

Function within activity:

Assigned by the Swedish Government for Implementation including financing arrangements.

Assigned by the Latvian Government for activities implemented jointly

Street:

Kungsgatan 43

Peldu Str. 25

Post code:

S-117 86

LV 1494

City:

Eskilstuna

Riga

Country:

Sweden

Latvia

Telephone:

+46 16 544 20 00

+371-7 026 508

Fax:

+46 16 544 22 64

+371-7 820 442

E-mail:

klas.tennberg@stem.se

erna@varam.gov.lv

WWW-URL:

http://www.stem.se

Contact person (for this activity):

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

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

Surname:

Knutsson

Apene

First name, middle name:

Gudrun

Ingrid

Job title:

Head of Section, Climate Investment Programme

senior official

Direct tel:

+46 16 544 20 72

+371-7 026 508

Direct fax:

+46 16 544 22 64

+371-7 820 442

Direct E-mail:

gudrun.knutsson@stem.se

erna@varam.gov.lv

Borrower

Name of organisation(a):

Valkas Pilsetas Dome

Name of organisation (English):

Valka Town Council

Department:

Acronym:

Acronym (English):

Function within activity:

Borrower

Street:

12, Talavas Street

Post code:

LV-4701

City:

Valka

Country:

Latvia

Telephone:

+371 47 24601

Fax:

+371 47 22203

E-mail:

WWW-URL:

Contact person (for this activity):

Surname:

Lapins

First name, middle name:

Maris

Job title:

Director

Direct tel:

+371 47 22 297

Direct fax:

+371 47 22 203

Direct E-mail:

Item Please fill in if applicable Please fill in if applicable

Name of organization(a):

EKODOMA

ÅF International

Name of organization (English):

EKODOMA

Department:

AF – International, Malmö

Acronym:

ÅFI

Acronym (English):

AFI

Function within activity:

Local reporter

Technical support

Street:

Noliktavas 3-3

Stensjögatan 3

Post code:

LV 1010

S-217 65

City:

Riga

MALMÖ

Country:

LATVIA

SWEDEN

Telephone:

+371-7 323212

+46-40-37 50 00

Fax:

+371-7 323210

+46-40-13 03 69

E-mail:

ekodoma@bkc.lv

WWW-URL:

http://www.ekodoma.lv

http://www.af.se

Contact person (for this activity):

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

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

Surname:

Kass

Lindgren

First name, middle name:

Ilmars

Ulf

Job title:

project manager

project leader

Direct tel:

+371 7 323212

+46-40-37 50 97

Direct fax:

+372-7 323210

+46-40-13 03 69

Direct E-mail:

ilmars-eko@bkc.lv

ulf.lindgren@pdn.af

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:

Valka is an old town in the north east of Latvia with about 8000 inhabitants. There are several boiler plants and district heating networks in Valka. In one of them there are four mazout boilers that provide district heating not only to a part of the living-houses the city, but also to the hospital (not yet a client). Annual energy consumption in this network is about 9 000 MWh.

Type of project:a)

Fuel switching to renewable

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

state):

Valka town

Valga district

LATVIA

Activity starting date:

2 July 1996 (letter of Intent)

In operation from:

November 1996

Expected activity ending date:

Loan expire date 31 March 2006

Stage of activity:b)

Complete

Lifetime of activity if different from ending date:c)

Expected technical lifetime is 25 years which means that the plant is expected to be in operation till 2021.

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 flue gas cleaning system. Estimated energy production 9000 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.

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

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.
  • Reporting costs – i e costs in connection with the annual reporting of the project’s climate effects to UNFCCC. 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

Valka BC

1996 1997 1998 1999
0 1 2 3

Investment

1. Loan/debt to STEM

138500 178625 171250 148431

2. Added costs

0 40125 4000 0

3.Technical assistance

31250 0 0 0

AIJ/JI

4. Follow up

0 10625 2750 2834

A. Sweden

costs

5. Reporting costs

0 1063 0 930

6. Administration

50000 0 0 0

7. Difference in interest

4% 7145 6850 5937

8.Accum. costs for AIJ/JI

81250 100083 109683 119384

9.Total costs

219750 278708 280933 267815

Investment

1. Investment/amortization

0 0 11375 22819

Latvia

AIJ/JI

2. Reporting costs

0 0 0 0

3. Other osts

0 0 0 0

costs

4. Accum. costs for AIJ/JI

0 0 0 0

5. Total costs

0 0 11375 34194

1 USD=

8

SEK

5) Mutually agreed assessment procedures:

Describe the procedures, including name of organizations involveda):

It is stated in agreement between STEM and Ministry of Environmental Protection and Regional Development of the Republic of Latvia that local organisation in Latvia, company EKODOMA is assigned for the data collection and evaluation of the climate effects of this project. After an initial work in cooperation with STEM’s assigned consultant, this local organisation would 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:

  • * Subsequent reports:

Third report. First report was submitted 1997.

2) This report is a joint report:

  • Yes, Agreement with designated national authority was signed 1997.

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

Yes, Agreement with Latvian Ministry of Environmental Protection and Regional Development was signed on March 1999.

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 Swedish side considers that the project meets the following objectives in the Latvian Energy Law:

- efficient use of energy resources;

  • creation and usage of energy efficient technologies, fuel/energy consuming and diagnostic equipment, construction and insulation materials; energy flow metering and control devices, automated energy consumption control systems;

Latvia became a Party of the United nations Framework Convention on Climate Change (UNFCCC) in 1992.

In accordance with Kyoto Protocol to the UN FCCC on 10 December 1997, Latvia individually or jointly should ensure, that its aggregate anthropogenic CO2 equivalent emissions of CO2, CH4, N2O, HFCs, PFCs and SF6 in 2008 - 2012 should be 8% below the 1990 level.

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:

1630 ton CO2

5 ton SO2

0.2 ton NOx

Lower pollution.

Better silviculture

Do quantitative data exist for evaluation of environmental benefits?

Yes.

Data collected by EKODOMA

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 4 USD

Do quantitative data exist for evaluation of economic benefits?

No.

Data collected by EKODOMA

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.

The comparison below 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

=1997

Year 2

=1998

Year 3

=1999

...

Year 15

Energy production at plant based upon the baseline (MWh/year)

7000

7000

7000

7000

A) Project baseline scenario

CO2

2300

2300

2300

2300

CH4

N2O

other

B) Project activity scenarioa)

CO2

0

0

0

0

CH4

N2O

other

C) Effect ( B-A )

CO2

-2300

-2300

-2300

-2300

CH4

N2O

Other

D) Cumulative effect

CO2

-2300

-4600

-6900

-34 500

CH4

N2O

Other

a) Includes indirect GHG leakages.

Summary table: Actual emission reductions:

GHG

Year 1

= 1997

Year 2

= 1998

Year 3

=1999

...

Year 15

Factual energy production on biofuels/ saved energy (MWh/year)

7100

6870

4960

6310*

A) Project baseline scenario

CO2

2400

2250

1630

2093*

CH4

N2O

other

B) Project activity scenarioa)

CO2

0

0

0

0

CH4

N2O

other

C) Effect ( B-A )

CO2

-2400

-2250

-1630

-2093

CH4

N2O

Other

D) Cumulative effect

CO2

-2400

-4650

-6280

-31400

CH4

N2O

Other

* - average figure for previous full years of operation

a) Includes indirect GHG leakages. CO2 emission level is 0 because only produced energy on bio fuels is taken into account.

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/STEM

172.500

Grant from NUTEK/STEMfor technical assistance

31.250

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 NUTEK/STEMs 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"

i) technology transfer has taken place through

NUTEK/STEMs technical specialist support to the local project leader and municipality as well as boiler plant staff.

ii) local companies took part in the project implementation phase - (groundworks, building, civil engineering works), the main contractor for the equipment delivery has been company Tamult AS (Estonia). Boiler was produced by the company Orions (Latvia)

iii) Special training courses for boiler house operators were arranged by main contractor to give lessons on operation/maintenance of wood fuel burning plant. Translation of manuals and safety regulations for boiler operation.

Staff from the boiler plant has been invited to different seminars and workshops, documentation for training has been handed over. The following seminars in Latvia have been organized by support from STEM:

  • "Environmentally Adapted Energy Systems in Baltic States and Eastern Europe", Cesis, 23 November, 1994;
  • "Prospects for small boiler conversion to biofuel in Latvia", Rauna, March, 1996
  • "Possibilities for wood fuel utilization in Latvia", Broceni, 17 April, 1997;
  • "Waste wood for boiler houses", Liepa municipality, 5 June, 1998
  • presentation of book translated from Swedish to Latvian "Environmentally adapted local energy systems", author Niels Moe (STEM), seminars in Balvi, Jelgava, Saldus, 6-8 May, 1998

iv) Specialists of other boiler houses have visited the boiler plant, the staff has an exchange of experience with other boiler plants. Management was active in "bio-club" established in 1994, now is member of Bioenergy Association. Association was founded on December 1998 with the support from STEM and is aimed to closer relations among the plant owners, municipalities, equipment suppliers and consultants.

Endogenous capacity supported or enhanced:

Endogenous capacity

(Name of organization1)

Development (DEV) /

enhancement (ENH)

Describe briefly

Valka Siltums

Tamult AS (supplyer, Estonia)

SIA ORIONS (boiler producer, Latvia)

(DEV)

ENH

Development of knowledge about wood fuel handling and burning

Cooperation between companies from two countries has been established. The cooperation has resulted in a new pre-furnace

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 Heating company hasbeen provided with new modern technology based on wood fuel utilization. Boiler house operators got new knowledges about burning of wood fuel. It is possible to use different wood fuel: wood-chips, sawdust, as well as residues from the wood processing companies that was dumped out before project realization.

The costs for the project were lover because of involvement of local companies.

One of the first small scale (1,5 MW) boiler conversion project in Latvia, that was repeated for other places. Place is used as demonstration plant.

  1. Technical difficulties: No
  1. Effects encountered:

The project realization gave:

  • reduced fuel costs;
  • improved environment;
  • new working places for fuel supply, and plant operation;
  • reduced dependence from the imported fuel;
  • better economy for the local regional level;
  • cooperation between Baltic and Nordic countries;
  • involvement of local companies for project implementation;
  • ideas for new fuel conversion projects.

4) Impacts encountered:

5) Other obstacles encountered:

6) Other:


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