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ACTIVITIES IMPLEMENTED JOINTLY(AIJ)

List of Projects

Uniform Reporting Format:

Activities Implemented Jointly Under the Pilot Phase

Annex I

A. Description of project

1) Title of project: Daugavgriva (Riga Siltums), Boiler Conversion project

2) Participants/actors:

Item Financier/Reporter Latvian 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):

AS RIGAS SILTUMS

Name of organisation (English):

JSC Riga Siltums

Department:

Riga City Council

Acronym:

Acronym (English):

Function within activity:

Borrower

Street:

Cesu street 3

Post code:

LV-1539

City:

Riga

Country:

Latvia

Telephone:

+371 7320680

Fax:

+371 7220785

E-mail:

WWW-URL:

Contact person (for this activity):

Surname:

Krilovs

First name, middle name:

Nikolajs

Job title:

Boiler House Manager

Direct tel:

+371 2 432397

Direct fax:

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:

Blumberga

Lindgren

First name, middle name:

Andra

Ulf

Job title:

Directress

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:

andra@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:

Daugavgriva, a part of Riga town, is situated west of the river Daugava and close to the Gulf of Riga. The boiler house supplies the inhabitants of Daugagriva region with heat but was earlier also energy centre for the Russian submarine base. The plant consists of four identical oil fired steam boilers DKVR-10/13 and two oil fired hot water boilers KGVM10. The annual heat production is about 80 000 MWh.

Type of project:a)

Fuel switching to renewable

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

state):

Daugagriva

Riga

LATVIA

Activity starting date:

2. June 1995 (Letter of Intent)

In operation from:

May 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 15 years, which means that the plant is expected to be in

operation until 2010.

Technical data:d)

One of the DKVR 10-13 boilers has been converted to biofuels, through the installation of a moving inclined grate in a separate pre-furnace. The project also comprises automatic fuel storage, flue-gas cleaning and a wood chipper. After conversion the output power of the boiler is estimated to 6 MW, with an estimated annual heat production based on bio-fuel of 40 000 MWh.

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.

  1. 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 – 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

Daugagriva BC

1996 1997 1998 1999 2000
0 1 2 3 4

Investment

1. Loan/debt to STEM

584000 611200 585500 507350 433875

2. Added costs

600 27200 13400 0 4674

3.Technical assistance

70000 0 0 0 0

AIJ/JI

4. Follow up

0 8500 2200 2267 2139

A. Sweden

Costs

5. Reporting costs

0 850 2000 744 301

6. Administration

40000 0 0 0 0

7. Difference in interest

4% 24448 23420 20294 17355

8.Accum. costs for AIJ/JI

110000 143798 171418 194723 214519

9.Total costs

694600 754998 756918 702073 648394

Investment

1. Investment/amortization

0 0 39100 78150 78150

Latvia

AIJ/JI

2. Reporting costs

0 0 0 0 0

3. Other osts

0 0 0 0 0

Costs

4. Accum. costs for AIJ/JI

0 0 0 0 0

5. Total costs

0 0 39100 117250 195399

1 USD=

10

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 emission reductions calculated on the baseline scenario with an estimated heat production of 40,000 MWh based on biofuel.

13 000 ton CO2

210 ton SO2

22 ton NOx

Wood waste from board factory can be used

Do quantitative data exist for evaluation of environmental benefits?

Yes.

Collected by EKODOMA

Describe social/cultural benefits in detail:

More stable energy supply.

Improved working conditions and increased motivation.

Improved trade balance.

Do quantitative data exist for evaluation of social benefits?

No.

Describe economic benefits in detail:

Decreased fuel costs approx. 6 USD/MWh.

Do quantitative data exist for evaluation of economic benefits?

Yes.

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):

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

=1996

Year 2

=1997

Year 3

=1998

Year 4 =1999

Year 5 =2000

...

Year 15

=2010

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

40000

40000 Yes, Agreement with Latvian Ministry of Environmental Protection and Regional Development was signed on March 1999.

40000

40000

40000

40000

A) Project baseline scenario

CO2

13000

13000

13000

13000

13000

13000

CH4

N2O

other

B) Project activity scenarioa)

CO2

0

0

0

0

0

0

CH4

N2O

other

C) Effect ( B-A )

CO2

-13000

-13000

-13000

-13000

-13000

-13000

CH4

N2O

Other

D) Cumulative effect

CO2

-13000

-26000

-39000

-52000

-65000

-195000

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 5

=2000

...

Year 15

=2010

Factual energy production on biofuels/ (MWh/year)

27260

32220

31000

35230

30820

31306*

A) Project baseline scenario

CO2

9400

11110

10700

12150

10630

10798*

CH4

N2O

other

B) Project activity scenarioa)

CO2

0

0

0

0

0

0

CH4

N2O

other

C) Effect ( B-A )

CO2

-9400

-11110

-10700

-12150

-10630

-10798

CH4

N2O

Other

D) Cumulative effect

CO2

-9400

-20510

-31210

-43360

-53990

-161970

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

778.731 USD

Grant from NUTEK/STEM for technical assistance

92.781 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 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 KMW Energi AB (Sweden)

iii) Special training courses for boiler house operators were arranged by the main contractor on operation/

maintenance of wood fuel burning plant.

Translation of manuals and safety regulations for boiler operation.

The staff from boiler plant has been invited to different seminars and work-shops, 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. The management was active in the "bio-club" established in 1994 and is now 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

Daugavgriva

SIA UZNEMEJS

DEV

ENH

A feasibility study has been made for co-generation based on biofuels. It is probable that the co-generation project will be implemented with assistance from STEM.

New type of project for the local civil engineering company.

1) Please ensure that detailed contact information for all organizations listed are 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 boiler house manager has become very skilled with biofuel fired plants and is often hired by other plant owners to give advice about, adjust and optimise their equipment.

The plant has a good location for visitors. Students from Riga Technical University are making practical works and measurements at the site.

2) Technical difficulties:

The project building/erection phase took place during harsh winter conditions. Low temperatures resulted to some delay in the project's time schedule.

3) 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:

The heat supply to the customers has become more stable.

5) Other obstacles encountered:

At the end of the project the ownership of the plant was transferred to Riga City Council and leased to the newly created heating company for the whole of Riga City, Riga Siltums. They were not interested in the converted boiler and did not want to take over the loan. The commission of the boiler was delayed for 6 months, before the problem was solved.

6) Other: