CC:INFO/AIJ: Mustamäe I, Vilde tee Energy Efficiency Project

Uniform Reporting Format:

Activities Implemented Jointly Under the Pilot Phase

A. Description of project

1) Title of project: Mustamäe I, Vilde tee Energy Efficiency Project

2) Participants/actors:

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
WWW-URL:	http://www.stem.se
Contact person (for this activity):	-------------------------------------	-------------------------------------
Surname:	Knutsson	Kratovits
First name, middle name:	Gudrun	Andres
Job title:	Senior officer	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).

	Borrower
Name of organisation(a):	Tallinna Linnavalitsus
Name of organisation (English):	Tallinn City Government
Department:	Mustamäe Linnaosa Valitsus
Acronym:
Acronym (English):
Function within activity:	Project owner
Street:	Tammsaare tee 135
Post code:	12915
City:	Tallinn
Country:	Estonia
Telephone:	+372-6-507 511
Fax:	+372-6-507 577
E-mail:	k.leetmaa@mustamae.tallinnlv.ee
WWW-URL:
Contact person (for this activity):
Surname:	Kröönström
First name, middle name:	Jüri
Job title:	deputy manager
Direct tel:	+372-6-507 511
Direct fax:	+372-6-507 577
Direct E-mail:	j.kroonstrom@mustamae.tallinnlv.ee

Item	Please fill in if applicable	Please fill in if applicable
Name of organization(a):	Võru Regionaalne Energiakeskus
Name of organization (English):	Regional Energy Centres in Estonia Võru Regional Energy Centre	ÅF International AB
Department:
Acronym:	Võru REK
Acronym (English):	Võru REC
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 78 201 45	+46-40-37 50 00
Fax:	+372 78 201 45	+46-40-13 03 69
E-mail:		energikonsult@ens.af.se
WWW-URL:	http://www.af.se/ens/english/rec	http://www.af.se
Contact person (for this activity):	-------------------------------------	-------------------------------------
Surname:	Potter	Mårtensson
First name, middle name:	Elmu	Roland
Job title:	Consultant	Project leader
Direct tel:	+372 78 201 45	+46-40-37 51 04
Direct fax:	+372 78 201 45	+46-40-13 03 69
Direct E-mail:	elmu@regen.werro.ee	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:	Mustamäe District of Tallinn was built in the 1960`s and 1970`s. There live about 80 000 persons in 20 000 flats. The actual buildings were built in 1964-65. The framework is precast concrete elements and walls are of plastered light weight concrete. The roof is flat and had many leaks causing considerable energy losses. The buildings have one-pipe heating systems connected to district heating. No regulation of incoming heat or for the local heat and hot water inside the buildings. Ventilation consist of natural draught. This project consist of four buildings, 320 flats and owned by municipality.
Type of project:a)	energy efficiency
Location (exact, e.g. city, region, state):	Mustamäe district Tallinn town ESTONIA
Activity starting date:	13. January 1994 (Letter of Intent)
In operation from:	January 1995
Expected activity ending date:	31 March 2004
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 2010.
Technical data:d)	Renovation and insulation of the roof, weather stripping of windows, new ventilation regulators in shower rooms, new substation including heat exchangers, domestic hot water circulation, expansion tanks, main pipe control valves and balancing the heating system, exchanging old and leaking pipes including new insulation. Also new entrance doors are included. Calculated energy savings: 1150 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.

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

The life time 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		Vilde tee EE(Mustamäe)	1995	1996	1997	1998
			0	1	2	3
	Investment	1. Loan/debt to STEM	322500	321500	281250	241000
		2. Added costs	17125	25250	0	0
		3.Technical assistance	142500	0	0	0
	AIJ/JI	4. Follow up	8750	10250	10625	2750
A. Sweden	costs	5. Reporting costs	0	0	1064	0
		6. Administration	63750	0	0	0
		7. Difference in interest	4%	12860	11250	9640
		8.Accum. costs for AIJ/JI	215000	238110	261049	273439
		9.Total costs	554625	559610	542299	514439
	Investment	1. Investment/Instalment	0	43375	40250	40250
2. Estonia	AIJ/JI	2. Reporting costs	0	0	0	0
	costs	3. Other costs	0	0	0	0
		4. Accum. costs for AIJ/JI	0	0	0	0
		5. Total costs	0	43375	83625	123875
1 USD=	8	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;

(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:

Second 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: 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 and the Long-term Development Plan for the Estonian Fuel and Energy Sector:

- efficient 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.

- 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 emissions reduction: Projected: 1998 384 ton CO2 397 ton CO2 2 ton SO2 2 ton SO2 0,7 ton Nox 0,7 ton NOx
Do quantitative data exist for evaluation of environmental benefits?	No.
Describe social/cultural benefits in detail:	The inhabitants have become much more aware of environmental aspects. Tenants and neighbours find that they can see "the light in the tunnel" - they have common positive issues to discuss. This creates of course unity and identity. The process gives also as result a form of self-identity and pride to take part in the evolution. Looking at the actors in the process from local manager to architects, engineers, suppliers they receive an example how to act commercially and at the same time keep the ethics in business. A much better living comfort is created.
Do quantitative data exist for evaluation of social benefits?	Yes, some studies have been carried out i.a. in SEI case study, 1998
Describe economic benefits in detail:	Energy bill decreases by about 20 %.The experiences from this project encouraged the actors to go further with new projects.
Do quantitative data exist for evaluation of economic benefits?	Yes, some studies have been curried out SEI case study, 1998

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.

Fill in the following tables as applicable:

Summary table: Projected emission reduction s:

	GHG	Year 1 =1995	Year 2 =1996	Year 3 =1997	Year 4 =1998	...	Year 15
Planned energy saving MWh/year		1150	1150	1150	1150		1150
A) Project baseline scenario	CO2	384	384	384	384		384
	CH4
	N2O
	other
B) Project activity scenarioa)	CO2	0	0	0	0		0
	CH4
	N2O
	other
C) Effect ( B-A )	CO2	-384	-384	-384	-384		-384
	CH4
	N2O
	Other
D) Cumulative effect	CO2	-384	-767	-1151	-1535		-5755
	CH4
	N2O
	Other

a) Includes indirect GHG leakages.

Summary table: Actual emission reductions :

	GHG	Year 1 = 1995	Year 2 = 1996	Year 3 =1997	Year 4 =1998	...	Year 15
Factual energy saving MWh per year		425	440	1191	1191		1191
A) Project baseline scenario	CO2	142	147	397	397		397
	CH4
	N2O
	other
B) Project activity scenarioa)	CO2	0	0	0	0		0
	CH4
	N2O
	other
C) Effect ( B-A )	CO2	-142	-147	-397	-397		-397
	CH4
	N2O
	Other
D) Cumulative effect	CO2	-142	-289	-686	-1084		-5456
	CH4
	N2O
	Other

a) Includes indirect GHG leakages.

*Corrections for plausible increased indoor temperature have not been made.

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

343.967 USD

Grant from NUTEK for technical assistance

151.555 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"

Technology transfer has taken place through:

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.

ii) technology transfer through cooperation between foreign consultants, supplier and local consultant and building constructor.

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 Adapted Energy Systems in the Baltic Region and Eastern Europe - seminar in Tallinn , 14-15 April, 1994;
Environmentally Adapted Energy Systems in the Baltic Region and Eastern Europe - seminar and workshops in Tartu , 25 November, 1994 (prepared information by topics in Estonian more 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.
information and meetings with personal involved in the project and the tenants

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 projects have been visited by specialists of other areas (incl. from Russia, Baltic Countries) to exchange of experience.

Involving professional groups besides energy experts i. e. architects, construction engineers, fire security experts and so on to achieve optimal solutions and to secure other aspects such as aesthetic view.

Endogenous capacity supported or enhanced:

Endogenous capacity

Name of organisation1)

Development (DEV) /

enhancement (ENH)

Describe briefly

Mustamäe District Administra-

tion of City Tallinn

(DEV)

The local project leader has been an important person who continues the energy efficiency projects in larger scale and informs others interested.

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:

Any practical experience gained:

The experiences gained at this project are once again underling the importance of adjusting and adapting the measures in a building to what is required in that particular building rather than using standard applications which might well result in the desired energy savings but at necessary high costs.

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.

A comparison of the data for the municipally owned and cooperatively owned residential buildings shows that the latter have managed energy consumption more efficiently than the former.

Technical difficulties:
Effects encountered:

The value of the flats , when sold , are about 3 times higher than flats where no measures have yet been undertaken.

The project has inspired other house owners to undertake measures.

4) Impacts encountered:

The experiences from the project in the houses in Mustamäe have formed the basis for a renovation plan for the entire building stock in the district, presented by the municipal authorities of Mustamäe for the years 1995 - 2005.

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.

Other:

Based on the experiences from projects, the Mustamäe District Council has elaborated guidelines for measuring energy efficiency in 12 different types of residential buildings common in Estonia and the other Baltic states.

Due to the conditions of the buildings there are also measures carried out that are not directly of energy conservation type. The renovation measures seemed however necessary for good result from the energy measures.

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