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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: Combined fuel conversion and distribution renovation project
in Kuressaare, Estonia
2) Participants/actors:
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Item
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Financier/Reporter
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Estonian co-reporter
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Name of organisation(a):
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Statens Energimyndighet
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Eesti Vabariigi Keskkonnaministeerium
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Name of organisation (English):
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Swedish National Energy Administration(*
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Ministry of the Environment of the Republic of Estonia
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Department:
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Secretariat for Climate Policy and International Co-operation
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International Relations Department
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Acronym:
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STEM
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EKM
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Acronym (English):
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STEM
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MoE
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Function within activity:
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Assigned by the Swedish Government for implementation including financing arrangements.
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Estonian Climate responsible Organisation
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Street:
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Kungsgatan 43
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Toompuiestee 24
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Post code:
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BOX 310, S-631 04
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10149
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City:
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Eskilstuna
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Tallinn
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Country:
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Sweden
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Estonia
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Telephone:
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+46 16 544 20 00
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Fax:
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+46 16 544 22 64
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E-mail:
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klas.tennberg@stem.se
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WWW-URL:
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http://www.stem.se
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Contact person (for this activity):
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-------------------------------------
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-------------------------------------
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Surname:
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Knutsson
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Kratovits
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First name, middle name:
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Gudrun
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Andres
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Job title:
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Senior officer
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Counsellor
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Direct tel:
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+46 16 544 20 72
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+372 62 62 841
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Direct fax:
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+46 16 544 22 64
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+372 62 62 845
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Direct E-mail:
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gudrun.knutsson@stem.se
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andres@ekm.envir.ee
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(* 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).
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Borrower
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Name of organisation(a):
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AS Kuressare Soojus
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Name of organisation (English):
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Kuresssare Soojus Ltd
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Department:
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Acronym:
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Acronym (English):
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Function within activity:
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Borrower
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Street:
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Kalevi 1a
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Post code:
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93815
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City:
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Kuressaare
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Country:
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Estonia
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Telephone:
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+372-45-31 260
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Fax:
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+372-45-31 265
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E-mail:
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ksoojus@tt.ee
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WWW-URL:
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Contact person (for this activity):
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Surname:
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Mehik
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First name, middle name:
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Jaan
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Job title:
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Technical director
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Direct tel:
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+372-45-312 61
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Direct fax:
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+372-45-31 265
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Direct E-mail:
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Item
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Please fill in if applicable
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Please fill in if applicable
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Name of organisation(a):
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Võru Regionaalne Energiakeskus
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Name of organisation (English):
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Regional Energy Centres in Estonia
Võru Regional Energy Centre
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ÅF International AB
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Department:
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Acronym:
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Võru REK
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Acronym (English):
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Võru REC
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Function within activity:
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Local reporter
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Technical support
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Street:
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Liiva 12C
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Stensjögatan 3
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Post code:
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65602, Võru P.O., BOX 43
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S-217 65
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City:
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Võru
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MALMÖ
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Country:
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ESTONIA
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SWEDEN
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Telephone:
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+372 78 201 45
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+46-40-37 50 00
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Fax:
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+372 78 201 45
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+46-40-13 03 69
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E-mail:
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energikonsult@ens.af.se
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WWW-URL:
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http://www.af.se/ens/english/rec
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http://www.af.se
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Contact person (for this activity):
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-------------------------------------
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-------------------------------------
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Surname:
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Potter
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Mårtensson
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First name, middle name:
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Elmu
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Roland
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Job title:
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Consultant
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Project leader
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Direct tel:
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+372 78 201 45
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+46-40-37 51 04
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Direct fax:
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+372 78 201 45
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+46-40-13 03 69
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Direct E-mail:
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elmu@regen.werro.ee
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rmn@ens.af.se
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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:
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Item
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Please fill in if applicable
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General description:
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Kuressare town is the administrative and economic centre of the biggest Estonian island Saaremaa
(Ösel). Saaremaa is an attractive area for tourists. A wood fuel fired boiler has been installed in
the main boiler house in Kuressaare town.
The equipment consists of, fuel storage, fuel conveyors, pre-furnace, flue gas cleaning equipment, boiler
and ash handling system.
The project also includes automation and rebuilding of two DE 16-14 boilers in boiler house no 4, as well
as partly rebuilding of the network. PC software are all delivered by Estonian companies
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Type of project:a)
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System project
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Location (exact, e.g. city, region,
state):
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Kuressaare town
Saare county
Estonia
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Activity starting date:
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6 March 1997 ( Letter of Intent)
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In operation from:
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March 1998
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Expected activity ending date:
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Loan expire date 31 March 2007
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Stage of activity:b)
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Completed
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Lifetime of activity if different from ending date:c)
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Expected technical lifetime is 25 years which means that the plant is expected to be in operation till
2023.
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Technical data:d)
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Boiler type: Hot water boiler
Boiler output : 5,0 MW
Prefurnace: Free standing
Flue gas cleaning: Multicyclone < 300 mg/Nm3
Fuel type: Wood chips, sawdust, bark 35-55 % RH
Previous fuel: Mazut (High-sulphur-heavy oil)
Estimated heat production from wood fuel boiler: 34000 MWh/year
Energy saving through energy efficiency: 1900 MWH
Total heat production of the boiler plant: 65000 MWh/year
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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.
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.
Lifetime of activity
Heat production plants (bio fuel)
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25 years
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New installation of all main equipment parts (fuel handling system, firing equipment and boiler) and
modernisation of secondary equipment.
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15 years
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Conversion of existing boiler but new installation fuel handling system and firing equipment. Modernisation
of secondary equipment.
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10 years
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Limited installation of new equipment (only one part of the three main parts, normally the firing
equipment). Modernisation of other equipment.
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Heat distribution systems and sub-stations
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25 years
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Pre-fabricated pipes and installations using certified contractors and supervisor according to EN norms and
applicable district heating practise
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15 years
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Pre-fabricated pipes and installations without using certified contractors and supervisor
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10 years
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Modernisation of existing pipes.
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Energy efficiency in buildings
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25 years
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Additional insulation roofs walls etc. with Scandinavian technology.
New installed heating systems.
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15 years
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Renovation and balancing of heating systems including thermostat valves.
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10 years
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Weather stripping windows, doors etc.
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* 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
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Country
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Kuressaare (BC)
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1998
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0
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Investment
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1. Loan/debt to STEM
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825625
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2. Added costs
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61875
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3.Technical assistance
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112500
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AIJ/JI
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4. Follow up
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0
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A. Sweden
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costs
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5. Reporting costs
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2500
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6. Administration
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38500
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7. Difference in interest
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4%
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8.Accum. costs for AIJ/JI
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153500
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9.Total costs
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1041000
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Investment
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1. Investment/Instalment
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0
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2. Estonia
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AIJ/JI
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2. Reporting costs
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0
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costs
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3. Other costs
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0
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4. Accum. costs for AIJ/JI
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0
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5. Total costs
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0
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1 USD=
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8
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SEK
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5) Mutually agreed assessment procedures:
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Describe the procedures, including name of organisations involveda):
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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.
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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 Part 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 Parts. Information will only be compiled once reports have been received from all
participating Parties.
1) For the activity:
First report
2) This report is a joint report:
- Yes, Endorsement letter was submitted 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
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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
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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
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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.)
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Item
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Please fill in
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Describe environmental benefits in detail:
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Annual emission reduction:
Projected: 1998
12079 ton CO2 7145 ton CO2
184 ton SO2 109 ton SO2
4 tons NOx 2 tons NOx
Lower pollution in district
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Do quantitative data exist for evaluation of environmental benefits?
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Yes, Tallinn Technical University have made environmental measurements in spring 1998. Report available
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Describe social/cultural benefits in detail:
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More stable energy supply.
Improved working conditions, increased motivation
More employment (local fuel companies)
Improved trade balance in the island
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Do quantitative data exist for evaluation of social benefits?
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No
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Describe economic benefits in detail:
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There will be less import of heavy oil, to a cost of about 320.000 Usd/year. The total savings are 170.000
Usd/year. All the wood fuel is bought local to a cost of 225.000 Usd/year.
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Do quantitative data exist for evaluation of economic benefits?
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Yes
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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:
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GHG
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Year 0
=1997
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Year 1
=1998
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Year 2
=1999
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...
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Year 25
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Planned energy production on biofuels, MWh/year
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27000
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34000
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34000
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Planned saving from project, MWh/year
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1900
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1900
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1900
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1900
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A) Project baseline scenario
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CO2
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639
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9724
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12079
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12079
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CH4
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N2O
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|
|
|
|
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other
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B) Project activity scenarioa)
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CO2
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0
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0
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0
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0
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CH4
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|
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|
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N2O
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|
|
|
|
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other
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|
|
|
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C) Effect ( B-A )
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CO2
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-639
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-9724
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-12079
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-12079
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CH4
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|
|
|
|
|
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N2O
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|
|
|
|
|
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Other
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|
|
|
|
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D) Cumulative effect
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CO2
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-639
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-10363
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-22443
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-300267
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CH4
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|
|
|
|
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N2O
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|
|
|
|
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Other
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- Includes indirect GHG leakages.
Summary table: Actual emission reductions :
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GHG
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Year 0
= 1997
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Year 1
= 1998
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Year 2
=1999
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...
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Year 25
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Factual energy production on biofuels, MWh/year
Factual saving from project, MWh/year
|
|
0
1500
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19534
1700
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19534
1700
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19534
1700
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A) Project baseline scenario
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CO2
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505
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7145
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7145
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7145
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CH4
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|
|
|
|
|
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N2O
|
|
|
|
|
|
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other
|
|
|
|
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B) Project activity scenarioa)
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CO2
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0
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0
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0
|
|
0
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CH4
|
|
|
|
|
|
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N2O
|
|
|
|
|
|
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other
|
|
|
|
|
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C) Effect ( B-A )
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CO2
|
-505
|
-7145
|
-7145
|
|
-7145
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|
CH4
|
|
|
|
|
|
|
N2O
|
|
|
|
|
|
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Other
|
|
|
|
|
|
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D) Cumulative effect
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CO2
|
-505
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-7649
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-21939
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|
-179121
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CH4
|
|
|
|
|
|
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N2O
|
|
|
|
|
|
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Other
|
|
|
|
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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.
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Category of funding
(For each source one line)
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Amount
(US dollars)
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Loan from NUTEK
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946660
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Grant from NUTEK for technical assistance
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100000
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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
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Transfer of environmentally sound technologies and know-how
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Describe briefly
|
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Schematically, the transfer of knowledge involves the following activities over time:
i) Technology transfer through SNEA’s 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"
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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 bigger industrial projects;
Transferring of environmental issues to the local parties;
Transferring of knowledge in computer- and control system;
Operation and maintenance software was introduced to the plant-owners.
- Personal from boiler plant has been invited to different seminars and work-shops and several
presentations about company experience have made, 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.
A conference for the Estonian District Heating Association is hold local, to give information about the
project. The benefits, difficulties, problems, environmental and economical were then discussed.
iv)Activities have been supported by STEM to establish Estonian Biofuels Association: meetings
representatives of plant owners and consultants were arranged in Haabneeme, Valga, Võru, Tartu,
Pärnu and Viljandi.
The boiler plant has been visited by specialists of other boiler plants, the staff has an exchange of
experience with other boiler plants. Estonian Biofuels Association is established in 1998 ( mainly by
"bio-club" and local experts) and the company is a member.
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Endogenous capacity supported or enhanced:
|
Endogenous capacity
(Name of organisation1)
|
Development (DEV) /
enhancement (ENH)
|
Describe briefly
|
|
AS Kuressaare Soojus
Tallinn Technical University
|
(DEV)
(DEV)
|
The operators has got knowledge of modern equipment
Technical evaluation
|
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:
An Estonian company has got more experience in planning, erection and start up of bigger industrial projects.
The manager of the company has got high experience in managing bigger industrial projects.
Good training and experience of the staff is necessary to operate biofuel boiler at full capacity.
-
Technical difficulties:
-
Effects encountered:
Several local companies have participated in the project
Execution of the follow up and monitoring activities to get feedback to the programme and for evaluation of the
results of the different measures.
Consulting support from both Swedish and Estonian side, also after commissioning.
4) Impacts encountered:
-
Other obstacles encountered:
There were big problems to support the establishment of a wood fuel company.
Local wood fuel market is not yet developed. There have been short brakes in supplying wood fuel.
Lack of a strong national focal point to support and promote biomass energy activities.
-
Other:
About 60 % of the project costs are spent local.
Improving the positive image of the Kuressaare town (attractive area for tourists) as "green town"
promoting environmentally friendly measures and practices and thereby increasing its value for tourism .
No subsidies to renewables, taxation policy is not in support of biofuel use.
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