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ACTIVITIES IMPLEMENTED JOINTLY(AIJ)

List of Projects

Uniform Reporting Format:

Activities Implemented Jointly Under the Pilot Phase

A. Description of project

1) Title of project: Orissaare district heating pipeline renovation 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):

Orissaare Soojus AS

Name of organisation (English):

Orissaare Soojus Ltd

Department:

Acronym:

Acronym (English):

Function within activity:

Project owner

Street:

Ranna pst. 5

Post code:

94601 Orissaare

City:

Saare county

Country:

Estonia

Telephone:

+372 45 453 27

Fax:

+372 45 453 27

E-mail:

osoojus@tt.ee

WWW-URL:

Contact person (for this activity):

Surname:

Ahti

First name, middle name:

Mäe

Job title:

Manager

Direct tel:

+372 45 453 27

Direct fax:

+372 45 453 27

Direct E-mail:

Item

Please fill in if applicable

Please fill in if applicable

Name of organisation(a):

Võru Regionaalne Energiakeskus

Name of organisation (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:

Orissaare is a municipality situated in the north-easten part of the biggest island of Estonia, Saaremaa (Ösel). The municipality has a administrative centre at the seaside withthe same name and with about 1200 inhabitants. Saaremaa is the attractive area for tourists. Orissaare has several networks and three boiler plants. Tsentraal boiler house has earlier been converted to biofuel firing. The other boiler plants used coal. Total energy production in village for district heating is approx. 3600 MWh.

Type of project:a)

Energy efficiency

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

state):

Orissaare village

Saare county

Estonia

Activity starting date:

17 September 1996 (Loan agreement)

In operation from:

November 1996

Expected activity ending date:

31. March 2006

Stage of activity:b)

Completed

Lifetime of activity if different from ending date:c)

Expected technical lifetime is 25 years which means that the plant is expected to be in operation till 2022.

Technical data:d)

A new pipeline with pre-insulated pipes was laid to connect the network of Tsentraal boiler house with two other networks of two smaller boiler houses. This connection enabled the closing down of the two smaller boiler houses. The 4-pipe system in the old networks was also changed into a 2-pipe one by replacing old pipes with 2 new pre-insulated. The project resulted in savings due to the conversion to biofuel and the improved energy efficiency when producing heat , as well as reduced heat losses from the replaced pipelines.

Length of pipeline trench: 366 m DN 124

138 m DN 100 86 m DN 65

48 m DN 50

Type of pipeline: Steel 37,0 media pipe

PUR insulation, series 1

PEHD outer jacket

Leakage detection system

Additional energy production on biofuels (energy saving): 2400 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.

  1. 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.
  • 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 –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

Project

1996

1997

1998

0

1

2

Investment

1. Loan/debt to STEM

80250

99500

95375

2. Added costs

0

19250

2250

3.Technical assistance

37500

0

0

AIJ/JI

4. Follow up

0

0

2750

A. Sweden

costs

5. Reporting costs

0

1063

0

6. Administration

58750

0

0

7. Difference in interest

4%

3980

3815

8.Accum. costs for AIJ/JI

96250

101293

107858

9.Total costs

176500

200793

203233

Investment

1. Investment/Instalment

0

0

6375

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

6375

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:

2) This report is a joint report:

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

1356 ton CO2 1514 ton CO2

6 ton SO2 7 ton SO2

1 ton Nox 1 ton NOx

Decrease of local pollution (two coalfired boilerplants has been closed down, the energy is supplied from biofuel fired boilerplant)

Do quantitative data exist for evaluation of environmental benefits?

No

Describe social/cultural benefits in detail:

More stable heat supply to customers

Do quantitative data exist for evaluation of social benefits?

No

Describe economic benefits in detail:

Decreased energy consumption

Energy use can now be billed, based upon measured figures

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):

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 0

=1995

Year 1

=1996

Year 2

=1997

Year 3

=1998

...

Year 25

Planned energy production on biofuels ( energy savings ), MWh/year

0

450

2400

2400

2400

A) Project baseline scenario

CO2

0

254

1356

1356

1356

CH4

N2O

other

B) Project activity scenarioa)

CO2

0

0

0

0

0

CH4

N2O

other

C) Effect ( B-A )

CO2

0

-254

-1356

-1356

-1356

CH4

N2O

Other

D) Cumulative effect

CO2

0

-254

-1610

-2966

-34147

CH4

N2O

Other

a) Includes indirect GHG leakages.

Summary table: Actual emission reductions :

GHG

Year 0

= 1995

Year 1

= 1996

Year 2

=1997

Year 3

=1998

...

Year 15

Factual energy production on biofuels ( energy savings ), MWh/year

0

450

2681

2681

2681

A) Project baseline scenario

CO2

0

254

1514

1514

1514

CH4

N2O

other

B) Project activity scenarioa)

CO2

0

0

0

0

0

CH4

N2O

other

C) Effect ( B-A )

CO2

0

-254

-1514

-1514

-1514

CH4

N2O

Other

D) Cumulative effect

CO2

0

-254

-1768

-3283

-38112

CH4

N2O

Other

a) Includes indirect GHG leakages.

*For year 1996 factual data were not available.

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

142.882 USD

Grant from NUTEK for technical assistans

53.333 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 STEM 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:

  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 achive two-way communication and to find respect for chosen solutions from both sides.

Projects has been visited by specialist of other areas to exchange of experience.

Endogenous capacity supported or enhanced:

Endogenous capacity

Name of organisation1)

Development (DEV) /

enhancement (ENH)

Describe briefly

Orissaare Soojus AS

(DEV)

The staff of the boiler plant has got experience in installation and exploitation of modern western technology.

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:
  2. Technical difficulties:
  3. Effects encountered:

More reliable heat supply after installation new pipelines. The network repairing and maintenance costs have decreased. Significantly reduced water losses in the network.

4) Impacts encountered:

Increased level of the satisfaction of the district heating consumers with the offered service. More stable consumers to the district heating company.

5) Other obstacles encountered:

The domestic hot water is not supplied to the customers during summertime. Too many large temperature variations in the pre-insulated pipes may cause damages in the pre-insulated pipelines.

6) Other:

The company has started the monitoring and analysing of the energy production and consumption data.

It was well-timed investment to improve the technical level of the district heating distribution system.