CC:INFO/AIJ: Energy saving project in Saldus, Latvia

Your location: Home

ACTIVITIES IMPLEMENTED JOINTLY(AIJ)

List of Projects

Decision 8/CP.10

Annex I

UNIFORM REPORTING FORMAT:

ACTIVITIES IMPLEMENTED JOINTLY UNDER THE PILOT PHASE

A. Description of project

1) Title of project:

Energy saving project in Saldus, Latvia

2) Participants/actors:

Item	Financier/Reporter	Latvian co-reporter
Name of organisation(a):	Statens Energimyndighet
Name of organisation (English):	Swedish National Energy Administration	Ministry of Environmental Protection and Regional Development of the Republic of Latvia
Department:	Division for Eastern Europe- EAES Programme	environmental protection Department
Acronym:	SNEA
Acronym (English):	SNEA
Function within activity:	Assigned by the Swedish Government for Implementation including financing arrangements.	Latvian Climate Responsible Organisation
Street:	Liljeholmsvägen 32	Peldu Str. 25
Post code:	S-117 86	LV 1494
City:	Stockholm	Riga
Country:	Sweden	Latvia
Telephone:	+46-8-681 96 07	+371-7 026 508
Fax:	+46-8-681 96 67	+371-7 820 442
E-mail:	gudrun.knutsson@stem..se	erna@varam.gov.lv
WWW-URL:	http://www.stem.se
Contact person (for this activity):	-------------------------------------	-------------------------------------
Surname:	Westermark	Apene
First name, middle name:	Sune	Ingrid
Job title:	senior officer	senior official
Direct tel:	+46-8-681 95 39
Direct fax:	+46-8-681 96 67
Direct E-mail:	sune.westermark@stem.se

	Borrower
Name of organisation(a):	Saldus Pilsetas Pasvaöldibas Uznemums "Saldus Siltums"
Name of organisation (English):	Saldus Town Municipal Enterprice "Saldus Siltums"
Department:
Acronym:
Acronym (English):
Function within activity:	Borrower
Street:	Maza Street 6
Post code:	LV3800
City:	Saldus
Country:	Latvia
Telephone:	+371- 38-23874
Fax:	+371-38-38063
E-mail:
WWW-URL:
Contact person (for this activity):
Surname:	Zutauts
First name, middle name:	Leons
Job title:	Director
Direct tel:	+371-38-23874
Direct fax:	+371-38-38063
Direct E-mail:

Item	Please fill in if applicable	Please fill in if applicable
Name of organization(a):		ÅF Energikonsult Syd AB
Name of organization (English):	Riga Technical University
Department:
Acronym:
Acronym (English):
Function within activity:	Project evaluator	Technical support
Street:	Kronovalda Boulv. 1	Stensjögatan 3
Post code:	LV 4100	S-217 65
City:	Riga	MALMÖ
Country:	LATVIA	SWEDEN
Telephone:	+371-7 089 923	+46-40-37 50 00
Fax:	+371-7 089 923	+46-40-13 90 38
E-mail:
WWW-URL:
Contact person (for this activity):	-------------------------------------	-------------------------------------
Surname:	Blumberga	Mårtensson
First name, middle name:	Dagnija	Roland
Job title:	Professor	project leader
Direct tel:	+371 7 210 597	+46-40-37 51 04
Direct fax:	+372-7 210 597	+46-40-13 03 69
Direct E-mail:	eko@mail.bkc.lv	rmn@ens.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:	Saldus, a middle size town in western part of Latvia, has several boiler plants and district heating networks. In one of the smaller networks new pre-insulated pipes have been installed, as a first step in connecting all net to one common network. In the school a new substation, new insulation in the attic and new smaller better insulated windows have been installed.
Type of project:a)	Energy saving project
Location (exact, e.g. city, region, state):	Saldus town Saldus region Latvia
Activity starting date:	July 4, 1997 (Letter of Intent)
Expected activity ending date:	Loan expire date 31 March 2007
Stage of activity:b)	Completed
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 till 2012.
Technical data:d)	Installation of pre-insulated pipelines, new substations with heat exchangers for both domestic hot water and heating, and refurbishment of the existing attic insulation for five buildings, the school included. The calculated energy savings is 454 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.

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

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 including western installation supervision
15 years	Pre-fabricated pipes including local installation supervision
10 years	Modernisation of existing pipes.

Cost (to the extent possible):

The cost analysis is based on a model developed within the framework of an expert group set up by the Nordic Council of Ministers and presented in the report TemaNord:564. The calculations include:

1. How would the CO₂ emissions have developed without the investment from the investor country, i.e. determination of a reference alternative.

2. The investment cost of the project.

3. Differences in operation costs before and after the investment.

4. Changes in other economic conditions, e-g- reduction of other environmentally damaging emissions.

5. The time before the project would have been implemented anyhow, or the economic lifetime of the project if it is reasonable to expect that the project alternatively would not have been implemented within the period in question.

The more detailed calculations are found in the table enclosed as the last page to this project report.

Swedish National Energy Administration's costs
NPV(Swedish net costs)/	6,81	US$/ton	defined as NPV of costs for NUTEK/SNEA
Emission Reduction comp. base-line			per tonne of CO₂ saved compared to baseline scenario during the project's economic life
recipient's costs
NPV(recipient's net costs)/	18,18	US$/ton	defined as NPV of costs for recipient's action - baseline case
Emission Reduction comp. base-line	(NOTE! negative value is profit)		per tonne of CO₂ saved compared to baseline scenario during the project's economic life
recipient country's economic costs
NPV(recipient country's economic costs) /	0,00	US$/ton	defined as NPV of costs for recipient country's action case - baseline case
Emission Reduction comp. base-line	(NOTE! negative value is profit)		per tonne of CO₂ saved compared to baseline scenario during the project's economic life
total costs in recipient country
NPV(recipient country's total costs) /	18,18	US$/ton	defined as NPV of costs for recipient's and recipient country's action case - baseline
Emission Reduction comp. base-line	(NOTE! negative value is profit)		per tonne of CO₂ saved compared to baseline scenario during the project's economic life
Overall costs

5) Mutually agreed assessment procedures:

Describe the procedures, including name of organisations involveda):

It is from the Swedish side intended that upon agreement with a central Latvian authority on reporting of JI-projects, this authority will assign a local organisation, which will be involved in the evaluation of the climate effects of this project. After an initial work in cooperation with SNEA’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:

First report.

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 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;

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 compared with the baseline scenario: 150 ton CO2 2.4 ton SO2 0.3 ton NOx
Do quantitative data exist for evaluation of environmental benefits?	No.
Describe social/cultural benefits in detail:	Improved working conditions, increased motivation. Better indoor climate in the buildings. Improved supply of domestic hot water to inhabitants.
Do quantitative data exist for evaluation of social benefits?	No.
Describe economic benefits in detail:	Decreased energy losses.
Do quantitative data exist for evaluation of economic benefits?	No.

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):

Without the activity the heat losses would have continued to be at the former level. It is not probable that the level of the losses would be lower during the years to come. The heat production is based on mazout.

Emissions are calculated from the elementary analysis of the assumed fuel, in this case mazout.

Estimated emissions with the activity:

The calculated energy saving from the measures is 545 MWh of heat. The total CO2 reduction during the life time of the investment is 1,980 ton.

Emissions are calculated from the ultimate analysis of the assumed fuel in this case mazout.

Fill in the following tables as applicable:

Summary table: Projected emission reduction s:

	GHG	Year 1 =1997	Year 2 =1998	Year 3 =1999	...	Year 15
Energy savings at plant based upon the baseline MWh/year)		270	545	545
A) Project baseline scenario	CO2	75	150	150
	CH4
	N2O
	other
B) Project activity scenarioa)	CO2	0	0	0
	CH4
	N2O
	other
C) Effect ( B-A )	CO2	-75	-150	-150
	CH4
	N2O
	Other
D) Cumulative effect	CO2	-75	-225	-375
	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 saved energy (MWh/year)
A) Project baseline scenario	CO2
	CH4
	N2O
	other
B) Project activity scenarioa)	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. 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	266,666 USD
Grant from NUTEK for technical assistance	37,333 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 NUTEKs 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

i) NUTEK’s technical specialist support to the local project leader and municipality.

iii) personal from boiler plant has been invited to different seminars and work-shops. They have also arranged seminars in energy efficiency.

Endogenous capacity supported or enhanced:

Endogenous capacity (Name of organization1)	Development (DEV) / enhancement (ENH)	Describe briefly
	(DEV)

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:

Any practical experience gained:

Technical difficulties:

Effects encountered:

4) Impacts encountered:

5) Other obstacles encountered:

6) Other:

Saldus has also received a Danish softloan. This loan has been used for installing pre-insulatyed pipelines and building substation. The two loan, the Danish soft loan and the loan from STEM have complemented each other very well.