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ACTIVITIES IMPLEMENTED JOINTLY(AIJ)

List of Projects

Uniform Reporting Format:

Activities Implemented Jointly Under the Pilot Phase

A. Description of projectA. Description of projectA. Description of projectA. Description of projectA. Description of projectA. Description of project

1) Title of project: Ludza, Latvia, fuel switch project

2) Participants/actors:

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

Item Reporter

Name of organization(a):

Essent Energie,

Business Unit Essent Duurzaam

Name of organization (English):

Essent Energie,

Business Unit Essent Duurzaam

Department:

Portfoliomanagement

Acronym:

Essent

Acronym (English):

Essent

Function within activity:

Investor

Street:

Dr. Van Deenweg 1

Post code:

8025 BP

City:

Zwolle

Country:

The Netherlands

Telephone:

+31 38 8524436

Fax:

+31 38 8524900

E-mail:

100733.3021@compuserve.com

WWW-URL:

http://www.essent.nl

http://www.ji4u.com

Contact person (for this activity):

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

Surname:

Van de Ven

First name, middle name:

Johannes M. W. A.

Job title:

International Business Developer

Direct tel:

+31 38 852 4936

Direct fax:

+31 38 852 4900

Direct E-mail:

100733.3021@compuserve.com

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.

Item Latvian co-reporter

Name of organization(a):

Vides Aizsardzîbas un Regionâlâs Attîstîbas Ministrija

Name of organization (English):

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

Department:

Environmental Protection Department

Acronym:

VARAM

Acronym (English):

Function within activity:

Assigned by the Latvian Government for activities implemented jointly

Street:

Peldu Str. 25

Post code:

LV 1494

City:

Riga

Country:

Latvia

Telephone:

+371-7 026 508

Fax:

+371-7 820 442

E-mail:

erna@varam.gov.lv

WWW-URL:

Contact person (for this activity):

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

Surname:

Apene

First name, middle name:

Ingrid

Job title:

senior official

Direct tel:

+371-7 026 508

Direct fax:

+371-7 820 442

Direct E-mail:

erna@varam.gov.lv

Item Local operator

Name of organization(a):

ESSENT Baltic

Name of organization (English):

ESSENT Baltic

Department:

Acronym:

Acronym (English):

Function within activity:

Project operator

Street:

Tallinas street 45

Post code:

LV 1012

City:

Riga

Country:

Latvia

Telephone:

+371 7 301 502

Fax:

+371 7 271 840

E-mail:

Essent.baltic@apollo.lv

WWW-URL:

www.essent.lv

Contact person (for this activity):

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

Surname:

Vigants

First name, middle name:

Edgars

Job title:

Manager

Direct tel:

+371 7 301 502

Direct fax:

+371 7 271 840

Direct E-mail:

Edgars.essent@apollo.lv

Item Please fill in if applicable

Name of organization(a):

Ludzas pilsetas dome

Name of organization (English):

Ludza Municipality

Department:

Acronym:

Acronym (English):

Function within activity:

Local project partner

Street:

Raina 16

Post code:

LV 5700

City:

Ludza

Country:

Latvia

Telephone:

+371 57 23630

Fax:

+371 57 23630

E-mail:

Ludzas_dome@apollo.lv

WWW-URL:

Contact person (for this activity):

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

Surname:

Lazovska

First name, middle name:

Valentina

Job title:

Municipality Major

Direct tel:

+371 57 23630

Direct fax:

+371 57 23630

Direct E-mail:

Ludzas_dome@apollo.lv

3) Activity:

Item Please fill in if applicable

General description:

Ludza is situated in east part of Latvia, 300 km from Riga, close to Russian border. The project concerns replacing of the boiler house fired by mazut fuel by a new one fired by biomass. Subsequently the project turns around the unsatisfactory district-heating situation into a more commercial viable and environmental sustainable district heating in Ludza city in Latvia. The implementation of technology methods by which the abundant locally available fuel for firing in the form of wood residues approved as commercially attractive as well as environmentally the most sustainable

Type of project:a)

Fuel switching

Location :

Ludza city, Latvia

Activity starting date:

February, 2001

Expected activity ending date:

February, 2016

Stage of activity:b)

Completed (Project is realised concerning the heat supply to the Heat Distribution Company, full technical commissioning expected in december 2001)

Lifetime of activity if different from ending date:c)

Technical data:d)

New boiler house has been built with two boilers inside -7 MW biomass boiler and 7 MW diesel boiler. Total capacity of boiler house is 14 MW. Main fuel is wood residues, diesel is used to cover the peak loads. It is estimated that diesel will be needed to cover around 10 % of the total heat demand. The project also comprises automatic fuel storage and flue-gas cleaning system.

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 in USD (to the extent possible):

Costs of acquiring equipment, systems or technologies

1362500

Costs for construction

400000

  • maintenance

250000

  • energy

1500

  • raw materials

35000

  • labour costs

3500

Third party costs

23000

Training costs

350

Other costs

70000

Total

AIJ Baseline study and Monitoring costs

310000

Costs during the course of project (USD)

1st year

2nd year

3rd year

Acquisition

104500

104500

104500

Operations

450000

473000

515750

Third parties

42500

42500

42500

Monitoring

38000

38000

38000

Other

23000

23000

23000

Total costs

US$ per avoided ton of CO2 equivalent:

16,7*

*The total contribution for AIJ activities development is about 500 000 USD.

The price for ton of CO2 is calculated by dividing of above-mentioned contribution by the tons of CO2 reduction during period 2008-2012.

5) Mutually agreed assessment procedures:

Describe the procedures, including name of organizations involved):

Subsequent JI monitoring will be carrying out by Essent Baltic. The results will be promoted using the Internet site www.ji4u.com, as well as by reporting to UNFCCC.

The following activities will be executed during the term of the project:

  • a base-line study
  • back-up first measurement
  • monitoring measurements

For monitoring activities the PRIVA Monitoring System will be used.

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

2) This report is a joint report:

  • Yes, forward copy of agreement/endorsement by the designated national authorities involved

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

C. Compatibility with and supportiveness of national economic development and socioSeconomic 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 Netherlands side considers that the project meets the following objectives in the Latvian Energy Policy:

  • A stable and transparent environment for the energy sector, which will provide for the sector`s liberalisation and energy efficiency improvements
  • Support for investments, which ensure that energy systems are appropriately maintained and developed, anticipating the involvement of strategic investor.
  • Efficiency improvements in the whole chain of the energy system – from production, transmission and distribution to final consumption
  • A favourable environment for private investments in efficient energy systems (co-generation), utilisation of domestic and renewable energy resources as well as energy efficiency
  • Efficient utilisations of domestic energy resources, replacing energy imports
  • Support for the development of environmentally friendly energy sources as wel as new and efficient technologies.

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

Item Please fill in

Describe environmental benefits in detail:

Annual emission reductions calculated on the baseline scenario with an estimated heat production of 30,000 MWh based on wood residues.

12 900 ton CO2

210 ton SO2

Wood residues from surounding areas can be used, that was landfilled before

Do quantitative data exist for evaluation of environmental benefits?

Yes, fuel consumption and heat production figures.

Describe social/cultural benefits in detail:

More stable and higher quality heat supply.

Improved working conditions and increased motivation.

Improved national economic trade balance.

Do quantitative data exist for evaluation of social benefits?

No

Describe economic benefits in detail:

Heat production cost price has been reduced by around 16 EURO/MWh

Do quantitative data exist for evaluation of economic benefits?

Yes,

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):

Present data reflect emission reductions using status quo (emissions in the period before the conversion to renewable fuel) for the baseline case. Calculations are based on data from previous years:

  • Produced heat (MWh/y)
  • Mazut consumption
  • Boiler efficiency
Unit 1995 1996 1997 1997/98
Mazut consumption t 4195 4212 4456 3693
Produced heat MWh 45510 37930 35450 33320
Boiler house efficiency % 80 76.5 67 69.6

Emissions of greenhouse gases prior to the start of the project (baseline information 97’)

Greenhouse gases

tons

GWP

tons of CO2 equivalent

CO2

13710

1

13710

CH4

0.537

21

11.28

N2O

0.108

310

33.31

Total

14650

2) Estimated emissions with the activity:

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.

Emissions of greenhouse gases after the project implementation with the proposed reduction measures (prognoses)

Greenhouse gases

1st year

tons (2001)

2nd year

tons

3rd year

tons

CO2

1272

1367

2035

CH4 (CO2 ekv.)

60.63

65.47

70.81

N2O (CO2 ekv.)

120.4

130.02

141.09

Total (CO2 ekv.)

1453.03

1562.49

2247.0

Fill in the following tables as applicable:

Summary table: Projected emission reductions:

GHG

Year 1 (2001)

Year 2

Year 3

Year (2016)

A) Project baseline scenario

CO2

13710

13710

13710

13710

CH4

11.28

11.28

11.28

11.28

N2O

33.31

33.31

33.31

33.31

other

B) Project activity scenarioa)

CO2

1272

1367

2035

CH4

60.63

65.47

70.81

N2O

120.4

130.02

141.09

other

C) Effect ( B-A )

CO2

12438

12343

11675

CH4

- 49.35

-54.15

-59.53

N2O

-87.09

-96.71

-107.78

Other

D) Cumulative effect

CO2

CH4

N2O

Other

a) Includes indirect GHG leakages.

Summary table: Actual emission reductions:

GHG

Year 1 (2001)

Year 2

Year 3

Year (2016)

A) Project baseline scenario

CO2

13710

13710

13710

13710

CH4

11.28

11.28

11.28

11.28

N2O

33.31

33.31

33.31

33.31

other

B) Project activity dataa)

CO2

CH4

N2O

other

C) Effect ( B-A )

CO2

CH4

N2O

Other

D) Cumulative effect

CO2

CH4

N2O

Other

a) Includes indirect GHG leakages.

F. Bearing in mind that the financing of activities implemented jointly shall be additional 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

Source of project funding

including pre-feasibility phase

(For each source one line)

Amount

(in US dollars)

(1 US$ = NLG 2,50)

Pre-feasibility Study

- SENTER Internationaal

(estimates)

140,000 (total)

Investment

Essent Energie

(project realisation has not been finalised yet)

- 1,520,000

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

The economic effects can be divided in city, regional and national levels:

  • City level - Having applied modern, energy efficient and environmental friendly technologies in the modern boiler house, properly isolated underground heating pipe- lines, substations and heat meters in each building, increases fuel consumption efficiency, reduces heat losses in the links of whole the centralized heating system and considerably reduces environmental pollution.
  • Regional level – The use of local fuel increases employment around Ludza city and reduces environmental pollution with wood residues. Additional incomes will give a possibility for wood processing plants and local forestry companies to diversify markets and develop production further.
  • National level – Imported fuel (mazut) substitution by local fuel (wood residues) reduces capital flow out of the state, thus, letting it "work" in Latvia. The demonstration pilot project provide a transfer of technology which will provide:
  • a higher standard of education of the population;
  • a way to disseminate the technology of fuel switching.

When the technology of fuel switching will be used in a great part of Latvia, it is possible that the international co-operation between different countries will be intensified.

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 boiler house manager and operational staff are in general pleased with the new installations. The project realisation has however not been realised yet for 100%, because necessary changes in:
  • The wood boiler system must be changed, in order to meet the nameplated capacity
  • The storage facilities for wood residues must be optimalised, to reduce the impact of snow and ice on the performance
  • The above mentioned improvements will be done in 2001.

2) Technical difficulties:

It was difficult to reach full capacity in the first months of operation on biomass boiler. It depends also on the quality of the wood residues. To cover the heat demand additional diesel fuel has been used, so that the heat supply towards the heat distribution system was secured.

3) Negative impacts and/or effects encountered:

Item Please fill in

Describe environmental negative impacts/effects in detail:

In general the environment benefits from the new installation. Reduction of air pollution as well as no soil pollution. Also safety has been improved a lot. Possible negative effects are increased traffic from trucks and potential wood particles in the air. Positive is that the landfilling of wood residues is reduced, as a new purpose is found.

Do quantitative data exist for evaluation of environmental negative impacts/effects?

Not yet, improved covering of wood residues storage will likely reduce the wood residues particles. Improved logistic plan will also reduce the amount of truck traffic to the site.

Describe social/cultural negative impacts/effects in detail:

Although a significant reduction in heat production costs has been realised, this is not directly visible for the population, as a large part of the previous heat costs were subsidised.

Do quantitative data exist for evaluation of social negative impacts/effects?

Yes/no

An representative survey has been carried out in May 2001.

Describe economic negative impacts/effects in detail:

Negative impact only to the suppliers of heavy fuel oil products

Do quantitative data exist for evaluation of economic negative impacts/effects?

No

4) Other obstacles encountered:

5) Other: