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ACTIVITIES IMPLEMENTED JOINTLY(AIJ)
 
Uniform Reporting Format:

Activities Implemented Jointly Under the Pilot Phase

Annex I

List of Projects

A. Description of project

1) Title of project: Valga III, District Heating Rehabilitation Project

2) Participants/actors:

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

Item Financier/Reporter 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).

Item Borrower

Name of organisation(a):

AS Valga Soojus

Name of organisation (English):

Valga Soojus LTd

Department:

Acronym:

Acronym (English):

Function within activity:

Project owner

Street:

Pärna puiestee 15

Post code:

689206

City:

Valga

Country:

ESTONIA

Telephone:

+372 76 411 19

Fax:

+372 76 411 19

E-mail:

valga.soojus@neti.ee

WWW-URL:

Contact person (for this activity):

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

Surname:

Piller

First name, middle name:

Toomas

Job title:

Manager

Direct tel:

+372 76 411 19

Direct fax:

+372 76 411 19

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

ÅF - 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:

elmupotter@hot.ee

Ulf.lindgren@mlm.pdn.af.se

  1. 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:

Valga town is the administrative and economic centre of Valga county, located in South Estonia. The number of inhabitants of Valga town is approx. 16000. There are several boiler plants and district heating networks. One small boiler house is operating with low efficiency with its own network.

STEM has earlier carried out one boiler conversion to renewable fuels and one heat substations reconstruction project. After good results in conversion project and in substation reconstruction project the local municipality has been motivated to continue projects to increase energy efficiency in district heating.

Type of project:a)

energy efficiency

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

state):

Valga town

Valga County

Estonia

Activity starting date:

18. June 1998 (Letter of Intent)

In operation from:

November 1998 (step 1)

July 1999 ( step 2)

Expected activity ending date:

30 September 2008

Stage of activity:b)

Completed

Lifetime of activity if different from ending date:c)

Expected technical lifetime is 25 years which means that the pipeline installation is expected to be in operation till 2024. The heat substations are expected to be in operation till 2014.

Technical data:d)

Valga Soojus' idea was to concentrate the heat production to the central boiler house and to close down the low efficient Kuperjanovi boiler house to reserve production or operate only during peak loads. According to these DH planning ideas the project comprises connection of the Kuperjanovi network to main network, reconstruction of 10 sub-stations and installation heat exchangers for domestic hot water. Reconstruction of 10 more substations, installation of a frequency converter to the DH pump in the central boiler plant and reconstruction of pipeline DN250 with the length 70 m (preinsulated pipes installation) are also included in the project. The estimated energy savings : 0,34 GWh/year from installation substations and 1,2 GWh/year from connection of networks. Estimated additional energy production from biofuels - 0,86 GWh/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.

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

ValgaIII

1998 1999 2000
0 1 2

Investment

1. Loan/debt to STEM

80000 147382 140221

2. Added costs

60000 7382 1509

3.Technical assistance

26000 0 0

AIJ/JI

4. Follow up

0 2267 2139

A. Sweden

costs

5. Reporting costs

0 744 301

6. Administration

0 0 0

7. Difference in interest

4% 5895 5609

8.Accum. costs for AIJ/JI

26000 34906 42956

9.Total costs

166000 182288 183177

Investment

1. Investment/Instalment

0 0 8670

2. Estonia

AIJ/JI

2. Reporting costs

0 0 0

costs

3. Other costs

0 0 0

4. Accum. costs for AIJ/JI

0 0 0

5. Total costs

0 0 8670

1 USD=

10

SEK

5) Mutually agreed assessment procedures:

Describe the procedures, including name of organisations involveda):

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 in to 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;

  1. 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 1999.

2) This report is a joint report:

Yes

  1. 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 emission reduction:

Projected 2000

877 ton CO2 1888 ton CO2

14,2 ton SO2 30,4 ton SO2

1,9 ton Nox 4,9 ton NOx

Do quantitative data exist for evaluation of environmental benefits?

No

Describe social/cultural benefits in detail:

More stable heat supply to customers

Increased motivation to pay the energy bills

More better company image

Do quantitative data exist for evaluation of social benefits?

Yes.

Valga Town Energy Plan, 1999

Describe economic benefits in detail:

Decreased energy consumption

Boiler house with lower efficiency will be in operation only during peak loads.

Do quantitative data exist for evaluation of economic benefits?

Yes.

Valga Town Energy Plan, 1999

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.

Status quo data:

Fuel

Mazout

Fossil fuel boilers efficiency

0,8

District heating system efficiency

0,56

Fill in the following tables as applicable:

Summary table: Projected emission reductions:

GHG

Year 1

=1998

Year 2

=1999

Year 3

=2000

Year 4

=2001

...

Year 16

=2013

...

Year 26

=2023

Planned energy production increasing on biofuels, MWh/year

0

860

860

860

860

860

Planned energy savings MWh/year:

360

1540

1540

1540

1540

1200

A) Project baseline scenario

CO2

183

877

877

877

877

710

CH4

-

-

-

-

-

N2O

-

-

-

-

-

other

-

-

-

-

-

B) Project activity scenarioa)

CO2

0

0

0

0

0

0

CH4

-

-

-

-

-

N2O

-

-

-

-

-

other

-

-

-

-

-

C) Effect ( B-A )

CO2

-183

- 877

- 877

- 877

- 877

-710

CH4

-

-

-

-

-

N2O

-

-

-

-

-

Other

-

-

-

-

-

D) Cumulative effect

CO2

-183

- 1061

-1938

-2815

-13345

-20445

CH4

-

-

-

-

-

N2O

-

-

-

-

-

Other

-

-

-

-

-

  1. Includes indirect GHG leakages.

Summary table: Actual emission reductions:

GHG

Year 1

= 1998

Year 2

=1999

Year 3

=2000

...

Year 16

=2013

...

Year 26

=2023

*)Factual energy production increasing on biofuels, MWh/year

0

0

0

0

0

Factual energy savings MWh/year

1293

2554

5281

5281

4946

A) Project baseline scenario

CO2

463

931

1888

1888

1722

CH4

-

-

-

-

-

N2O

-

-

-

-

-

other

-

-

-

-

-

B) Project activity scenarioa)

CO2

0

0

0

0

0

CH4

-

-

-

-

-

N2O

-

-

-

-

-

other

-

-

-

-

-

C) Effect ( B-A )

CO2

-463

-931

-1888

-1888

-1722

CH4

-

-

-

-

-

N2O

-

-

-

-

-

Other

-

-

-

-

-

D) Cumulative effect

CO2

-463

-1394

-3283

-27831

-45051

CH4

-

-

-

-

-

N2O

-

-

-

-

-

Other

-

-

-

-

-

a) Includes indirect GHG leakages.

*)The factual energy production increasing on biofuels is included in the earlier converted boiler (STEM boiler conversion project) heat production. In reality the converted boiler heat production has increased after pipelines connection some 900 MWh/year.

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

175.000

Grant from NUTEK for technical assistance

32.500

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 NUTEK/STEM technical specialist during the implementation of the project.

ii) Technology transfer through co-operation 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 work-shops and, documentation for training has been handed over.

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

  • Environmentally Friendly Energy Systems in the Baltic Region and Eastern Europe - seminar in Tallinn , 14-15 April, 1994;
  • Environmentally Friendly Energy Systems in the Baltic Region and Eastern Europe - seminar and workshops in Tartu , 25 November, 1994 (prepared information by topics in Estonian over 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 rojects have been visited by specialists of other areas (incl. From Russia, Baltic Countries) to exchange of experience.

Endogenous capacity supported or enhanced:

Endogenous capacity

(Name of organisation1)

Development (DEV) /

enhancement (ENH)

Describe briefly

Valga Soojus AS

(ENH)

The earlier transferred knowledge

during STEM heat substation project has extended to the company specialists

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:

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.

More reliable heat supply after connection of the networks.

Maintenance service of heat substations is necessary to develop. Regularly heating company specialists will check heat substations components and recommend to the house owners necessary maintenance work.

2) Technical difficulties:

3) Effects encountered:

In some building too much emphasis was put on reduction of heat consumption and limiting the heat bill. The persons adjusting the equipment concentrated more on limiting the metered heat consumption than maintaining an acceptable indoor temperature.

After installation DH main pump frequency converter the electricity consumption has decreased 188 MWh/year in 1999 compared with 1998 according to the pumps electricity comsumption measurements.. Electricity saving is not included in the CO2 emissions calculation.

The total heat production in the Central boilerplant (with converted boiler) has increased about 900 MWh per year after networks connection.

Improved and more stable hydraulic situation in the network. The pressure drop in the heat substations is controlled by DH main pump frequency converter.

4) Impacts encountered:

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

The value of the flats, when sold has been higher in the buildings with good energy management.

Good possibilities to connect more clients to the district heating, e.g. local hospital.

The project has inspired AS Valga Soojus management to continue district heating rehabilitation according to the Valga Town Energy Plan.

The reliable operation of the connected network is inspired some heat consumers to start to use district heating service.

5) Other obstacles encountered:

Overcoming of psychological obstacles to change a lot of inhabitants mind to start implementation of energy efficiency improvement measures. One thing is to state the need for energy saving, but another - to implement measures.

Regular quality checks of the work of some local contractors were necessary by AS Valga Soojus staff and consultants.

The heat substation installation companies had got some problems with some house owners to get substation room keys in time. The house owners have not trusted to do installation work without their supervision.

6) Other:

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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