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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: Valga II, District Heating Renovation Project

2) Participants/actors:

Please fill in one table for each participant/actor. For individuals fill in as from item Function within activity".

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).

Item

Borrower

Name of organisation(a):

AS Valga Soojus

Name of organisation (English):

Valga Soojus LTd

Department:

Acronym:

Acronym (English):

Function within activity:

Project owner

Street:

Pärna puiestee 15

Post code:

689206

City:

Valga

Country:

ESTONIA

Telephone:

+372 76 411 19

Fax:

+372 76 411 19

E-mail:

WWW-URL:

Contact person (for this activity):

-------------------------------------

Surname:

Piller

First name, middle name:

Toomas

Job title:

Manager

Direct tel:

+372 76 411 19

Direct fax:

+372 76 411 19

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

  1. 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:

Valga town is the administrative and economic centre of Valga county, located in South Estonia. The number of inhabitants of Valga town is approx.16000. There are several boiler plants and district heating networks.

In one of them STEM has earlier carried out a boiler conversion to renewable fuels. There were no possibilities to regulate heat at end-users and some customers who didn’t have domestic hot water instead used water directly from heat radiators. For this reason water losses were very high. After good results in conversion project the local municipality has been motivated to continue with a project to decrease energy and water losses and to get higher water quality.

Type of project:a)

Energy saving in distribution and at end-users

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

state):

Valga town

Valga County

Estonia

Activity starting date:

23. September 1994 (Letter of Intent)

In operation from:

June 1995 (step 1)

December 1995 (step 2)

Expected activity ending date:

30 September 2005

Stage of activity:b)

completed

Lifetime of activity if different from ending date:c)

Expected technical lifetime is 20 years which means that the installations is expected to be in operation till 2014.

Technical data:d)

Installation of control equipment and heat exchangers in 79 substations aiming at reducing the water losses in the system. In connection with the boiler conversion the boilers were changed over from steam to hot water production which called for new water treatment equipment. The new water treatment has been taken into operation.

The substation installations are estimated to save 1.5 GWh of heat and to reduce the water losses corresponding to 0.5 GWh annually.

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.

d) 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

Valga II (DH)

1995

1996

1997

1998

0

1

2

3

Investment

1. Loan/debt to STEM

142500

342125

357250

312625

2. Added costs

0

199625

15125

0

3.Technical assistance

80000

0

0

0

AIJ/JI

4. Follow up

0

10250

10625

2750

A. Sweden

costs

5. Reporting costs

0

0

1063

0

6. Administration

66250

0

0

0

7. Difference in interest

4%

13685

14290

12505

8.Accum. costs for AIJ/JI

146250

170185

196163

211418

9.Total costs

288750

512310

553413

524043

Investment

1. Investment/Instalment

0

0

0

44625

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

0

0

44625

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;

  1. 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.
  1. 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 emission reduction:

Projected: 1998

915 ton CO2 1678 ton CO2

14 ton SO2 26 ton SO2

1 ton Nox 1 ton NOx

The substation installations are estimated to save 1.5 GWh of heat and to reduce the water losses corresponding to 0.5 GWh annually.

Do quantitative data exist for evaluation of environmental benefits?

Yes. Some measurements have carried out.

Describe social/cultural benefits in detail:

More stable heat supply to customers

Increased motivation to pay the energy bills

Do quantitative data exist for evaluation of social benefits?

Yes . Some reports have been produced

Describe economic benefits in detail:

Decreased energy consumption

Prolonged lifetime for boilers and district heating network through rising water quality

Do quantitative data exist for evaluation of economic benefits?

Yes. Some reports have been produced.

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 reductions:

GHG

Year 0

=1994

Year 1

=1995

Year 2

=1996

Year 3

=1997

Year 1

=1995

...

Year 15

Planned energy savings MWh/year

0

980

2000

2000

2000

2000

A) Project baseline scenario

CO2

0

415

915

915

915

915

CH4

-

-

N2O

-

-

other

-

-

B) Project activity scenarioa)

CO2

0

0

0

0

0

0

CH4

-

-

N2O

-

-

other

-

-

C) Effect ( B-A )

CO2

0

- 415

-915

-915

-915

-915

CH4

-

-

N2O

-

-

Other

-

-

D) Cumulative effect

CO2

0

- 415

-1330

-2246

-3161

-14142

CH4

-

-

N2O

-

-

Other

-

-

a) Includes indirect GHG leakages.

Summary table: Actual emission reductions:

GHG

Year 0

= 1994

Year 1

=1995

Year 2

=1996

Year 3

=1997

Year 4

=1998

...

Year 15

Factual energy savings MWh/year

0

480

1670

2535

3530

3530

A) Project baseline scenario

CO2

0

235

779

1190

1678

1678

CH4

-

-

N2O

-

-

other

-

-

B) Project activity scenarioa)

CO2

0

0

0

0

0

0

CH4

-

-

N2O

-

-

other

-

-

C) Effect ( B-A )

CO2

0

-235

-779

-1190

-1678

-678

CH4

-

-

N2O

-

-

Other

-

-

D) Cumulative effect

CO2

0

-235

-1015

-2205

-3882

-24015

CH4

-

-

N2O

-

-

Other

-

-

a) Includes indirect GHG leakages.

  • For year 1995 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

346666 USD

Grant from NUTEK for technical assistants

85343 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 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"

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 Aprill, 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 (incl. From Russia, baltic Coutries) to exchange of experience.

Endogenous capacity supported or enhanced:

Endogenous capacity

(Name of organisation1)

Development (DEV) /

enhancement (ENH)

Describe briefly

Valga Soojus AS

(DEV)

In Valga a co-operation concerning customer contacts and supplier-customer agreements have been developed and Valga is today one of the forerunners in Estonia as regards information to customers.

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:

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

2) Technical difficulties:

3) Effects encountered:

In some building too much emphasis was put on reduction of heat consumption and limiting the heat bill. The persons adjusting the equipment concentrated more on limiting the metered heat consumption than an maintaining an acceptable indoor temperature.

4) Impacts encountered:

Better indoor climate in the most of the buildings and improved domestic hot water supply .

The value of the flats, when sold has been higher in the buildings with good energy management.

5) Other obstacles encountered:

6) Other: