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ACTIVITIES IMPLEMENTED JOINTLY(AIJ)
 

Uniform Reporting Format:

Activities Implemented Jointly Under the Pilot Phase

List of Projects

ACTIVITIES IMPLEMENTED JOINTLY UNDER THE PILOT PHASE

A. Description of project

1) Title of project: Võru II, District Heating 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):

AS Võru Soojus

Name of organisation (English):

Võru Soojus Ltd

Department:

Acronym:

Acronym (English):

Function within activity:

Project owner

Street:

Vabaduse 4

Post code:

65609

City:

Võru

Country:

ESTONIA

Telephone:

+372 78 213 69

Fax:

+372 78 210 26

E-mail:

WWW-URL:

Contact person (for this activity):

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

Surname:

Narusk

First name, middle name:

Ilmar

Job title:

director

Direct tel:

+372 78 213 69

Direct fax:

+372 78 210 26

Direct E-mail:

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:

Võru town is the administrative and economic centre of Võru county, located in South-Eastern Estonia. The number of inhabitants of Võru town is approx. 16500.

Võru is a town with several boiler houses. In the Võrusoo boiler house STEM has earlier converted one boiler to biofuels and EBRD has financed the installation of heat metering equipment to all heat customers as well as substations to the 43 buildings. New substations and two district heating networks have been integrated to give a possibility to supply more heat from biofuel fired boilerhouse.

Type of project:a)

Energy saving in distribution and at end-users

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

state):

Võru town

Vöru County

Estonia

Activity starting date:

29. September 1994 (Letter of Intent)

In operation from:

October 1995 (new pipeline)

October 1996 (consumers installations)

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 15 years which means that the plant is expected to be in operation till 2012.

Technical data:d)

Supplying the 85 buildings with sub-stations and control equipment for heat and hot tap-water from almost all of these substations. The project also comprises interconnection of two separate district heating networks with 700 m long pre-insulated pipeline and with the diameter DN250. A new district heating circulation pump with the capacity 500 m3/h has been intalled.

The installations in the substations are estimated to save around 2 GWh of heat.

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

Võru II (DH)

1996

1997

1998

0

1

2

Investment

1. Loan/debt to STEM

436625

675500

591000

2. Added costs

267000

45875

0

3.Technical assistance

81250

0

0

AIJ/JI

4. Follow up

0

10625

2750

A. Sweden

costs

5. Reporting costs

0

1063

0

6. Administration

50000

0

0

7. Difference in interest

4%

27020

23640

8.Accum. costs for AIJ/JI

131250

169958

196348

9.Total costs

834875

845458

787348

Investment

1. Investment/Instalment

0

74000

84500

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

74000

158500

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 organizations mentioned is reported under

section A.2 above.

B. Governmental acceptance, approval or endorsement

Bearing in mind that all activities implemented jointly under this pilot phase require prior acceptance, approval or endorsement by the Governments of the Parties participating in these activities, which shall be shown as follows:

(a) In the case of joint reporting, the report is submitted by the designated national authority of one participating Party with the concurrence of all other participating Parties as evidenced by attached letters issued by the relevant national authorities;

(b) In the case of separate reporting, the reports are submitted separately by the designated national authority of each and every participating Party. Information will only be compiled once reports have been received from all participating Parties.

1) For the activity:

  • * Subsequent reports:

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

4394 ton CO2 3847 ton CO2

68 ton SO2 59 ton SO2

2 ton Nox 1 ton NOx

The integration of the two networks means that a further amount of 10 000 MWh of the heat demand, corresponding to the burning of 1330 tons of heavy oil/year, can be supplied from the biofuel-fired boiler.

Do quantitative data exist for evaluation of environmental benefits?

Yes. Some measurements has been have been carried out.

Describe social/cultural benefits in detail:

More stable heat supply to customers

Possibilities to regulate the house heat consumption (no more overheated houses and high energy bills)

Increased motivation to pay 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

Increased possibility to use biofuel boiler decreases fuel costs. The company has started with loan amortisation prematurely.

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

=1995

Year 1

=1996

Year 2

=1997

Year 3

=1998

...

Year 15

Planned energy production increasing on biofuels, MWh/year

0

10000

10000

10000

Planned energy savings, MWh/year

0

650

2000

2000

2000

A) Project baseline scenario

CO2

0

3755

4394

4394

947

CH4

N2O

other

B) Project activity scenarioa)

CO2

0

0

0

0

0

CH4

N2O

other

C) Effect ( B-A )

CO2

0

-3755

-4394

-4394

-947

CH4

N2O

Other

D) Cumulative effect

CO2

0

-3755

-8150

-12544

-62777

CH4

N2O

Other

a) Includes indirect GHG leakages.

Summary table: Actual emission reductions:

GHG

Year 0

=1995

Year 1

=1996

Year 2

=1997

Year

=1998

...

Year 15

Factual energy production increasing on biofuels, MWh/year

Factual energy savings MWh/year

0

2000

5574

8128

8128

A) Project baseline scenario

CO2

0

947

2638

3847

3847

CH4

N2O

other

B) Project activity scenarioa)

CO2

0

0

0

0

0

CH4

N2O

other

C) Effect ( B-A )

CO2

0

-947

-2638

-3847

-3847

CH4

N2O

Other

D) Cumulative effect

CO2

0

-947

-3585

-7432

-57448

CH4

N2O

Other

a) Includes indirect GHG leakages.

*The factual energy production increasing on biofuels is included in the earlier converted boiler (STEM boiler conversion project) heat production.

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

765654 USD

Grant from NUTEK for technical assistance

86666 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:

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

The project has been visited by specialists of other areas (incl. from Russia, Baltic Countries) for exchange of experiences.

Endogenous capacity supported or enhanced:

Endogenous capacity

(Name of organization1)

Development (DEV) /

enhancement (ENH)

Describe briefly

(DEV)

1) Please ensure that detailed contact information for all 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

More reliable heat supply after connection of the networks.

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:


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