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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: Balvi (II), District heating renovation project

2) Participants/actors:

Item

Financier/Reporter

Co-reporter

Name of organisation(a):

Statens Energimyndighet

Vides Aizsardzîbas un Regionâlâs Attîstîbas Ministerija

Name of organisation (English):

Swedish National Energy Administration

Ministry of Environmental Protection and Regional Development of the Republic of Latvia

Department:

Division for Eastern Europe- EAES Programme

Environmental Protection Department

Acronym:

STEM

VARAM

Acronym (English):

STEM

Function within activity:

Assigned by the Swedish Government for Implementation including financing arrangements.

Assigned by the Latvian Government for activities implemented jointly

Street:

Kungsgatan 43

Peldu Str. 25

Post code:

S-117 86

LV 1494

City:

Eskilstuna

Riga

Country:

Sweden

Latvia

Telephone:

+46 16 544 20 00

+371-7 026 508

Fax:

+46 16 544 22 64

+371-7 820 442

E-mail:

klas.tennberg@stem.se

erna@varam.gov.lv

WWW-URL:

http://www.stem.se

Contact person (for this activity):

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

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

Surname:

Knutsson

Apene

First name, middle name:

Gudrun

Ingrid

Job title:

senior officer

senior official

Direct tel:

+46 16 544 20 72

+371-7 026 508

Direct fax:

+46 16 544 22 64

+371-7 820 442

Direct E-mail:

gudrun.knutsson@stem.se

erna@varam.gov.lv

Borrower

Name of organisation(a):

Balvu Pilsetas Dome

Name of organisation (English):

Balvi Town Council

Department:

Acronym:

Acronym (English):

Function within activity:

Borrower

Street:

Sporta Street 1

Post code:

LV-4501

City:

Balvi

Country:

Latvia

Telephone:

+371 (2) 45 22242

Fax:

+371 (2) 45 22242

E-mail:

WWW-URL:

Contact person (for this activity):

Surname:

Annuskans

First name, middle name:

Juris

Job title:

Chairman of the City Municipality

Direct tel:

+371 45 22830

Direct fax:

+371 45 222 42

Direct E-mail:

Item

Please fill in if applicable

Please fill in if applicable

Name of organization(a):

EKODOMA

ÅF International AB

Name of organization (English):

EKODOMA

AF International AB

Department:

Acronym:

ÅFE

Acronym (English):

AFE

Function within activity:

Local reporter

Technical support

Street:

Biskapa gate 6-1

Stensjögatan 3

Post code:

LV 1050

S-217 65

City:

Riga

MALMÖ

Country:

LATVIA

SWEDEN

Telephone:

+371-7 210 597

+46-40-37 50 00

Fax:

+371-7 210 597

+46 40 13 03 69

E-mail:

ekodoma@mail.bkc.lv

WWW-URL:

http://www.af.se

Contact person (for this activity):

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

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

Surname:

Kass

Mårtensson

First name, middle name:

Ilmars

Roland

Job title:

project manager

project leader

Direct tel:

+371 7 210 597

+46-40-37 51 04

Direct fax:

+372-7 210 597

+46-40-13 03 69

Direct E-mail:

ilmars-eko@mail.bkc.lv

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:

Balvi is a town where NUTEK/STEM has earlier financed one boiler conversion project. On the same side of the river there was one more coal-fired boiler plant with separate network. The energy price from this boiler plant was very high. The new pipeline was connected to the converted boiler

Type of project:a)

energy efficiency

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

state):

Balvi town

Balvi district

LATVIA

Activity starting date:

18 October 1994 (letter-of-intent)

In operation from:

December 1995

Expected activity ending date:

Loan expire date 30 September 2005

Stage of activity:b)

Complete

Lifetime of activity if different from ending date:c)

Expected technical lifetime is 15 years which means that the plant is expected to be in operation till 2010.

Technical data:d)

Integration of two separate district heating net-works, whereby an old coal-fired heating plant situated in the midst of a hospital area is closed down. In addition a newly installed timber drying plant at a saw-mill was connected to the district heating system, which provides the heating company a solid source of income and with demand for a large base load for the boiler. Installation of metering and control equipment in substations are also included in the project. Energy savings in the network are estimated at around 2 000 MWh annually.

a) For example, using Intergovernmental Panel on Climate Change (IPCC) classification: energy efficiency; renewable energy; fuel switching; forest preservation, restoration or reforestation; afforesta-tion; 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.

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

Balvi DH

1996

1997

1998

0

1

2

Investment

1. Loan/debt to STEM

339875

459250

480750

2. Added costs

97500

21875

21500

3.Technical assistance

0

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%

18370

19230

8.Accum. costs for AIJ/JI

50000

80058

102038

9.Total costs

487375

539308

582788

Investment

1. Investment/amortization

0

0

0

Latvia

AIJ/JI

2. Reporting costs

0

0

0

3. Other osts

0

0

0

costs

4. Accum. costs for AIJ/JI

0

0

0

5. Total costs

0

0

0

1 USD=

8

SEK

5) Mutually agreed assessment procedures:

Describe the procedures, including name of organizations involveda):

It is stated in agreement between STEM and Ministry of Environmental Protection and Regional Development of the Republic of Latvia that local organisation in Latvia, company EKODOMA is assigned for the data collection and evaluation of the climate effects of this project. After an initial work in cooperation with STEM’s assigned consultant, this local organisation would take the main responsibility the continued measuring 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 Swedish side considers that the project meets the following objectives in the Latvian Energy Law:

- efficient use of energy resources;

  • creation and usage of energy efficient technologies, fuel/energy consuming and diagnostic equipment, construction and insulation materials; energy flow metering and control devices, automated energy consumption control systems;

Latvia became a Party of the United nations Framework Convention on Climate Change (UN FCCC) in 1992. In accordance with Kyoto Protocol to the UN FCCC on 10 December 1997, Latvia individually or jointly should ensure, that its aggregate anthropogenic CO2 equivalent emissions of CO2, CH4, N2O, HFCs, PFCs and SF6 in 2008 - 2012 should be 8% below the 1990 level.

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:

4 000 ton CO2

17.7 ton SO2

3.9 ton NOx

The closing down of the coal-fired boiler in connection with the integration of the two networks means that a heat demand, corres-ponding to the burning of around 1000 tons of coal/year, is replaced with heat supplied from the biofuel-fired boiler, (7 500 MWh/year).

Do quantitative data exist for evaluation of environmental benefits?

Yes.

collected by EKODOMA 1999

Describe social/cultural benefits in detail:

More stable energy supply.

Improved working conditions, increased motivation..

Do quantitative data exist for evaluation of social benefits?

No.

Describe economic benefits in detail:

Decreased energy prices about 3 USD/MWh

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.

The comparison below is based upon that the base-line scenario represents a status quo solution.

Fill in the following tables as applicable:

Summary table: Projected emission reduction s:

GHG

Year 1

=1996

Year 2

=1997

Year 3

=1998

...

Year 15

Energy production at plant based upon the baseline/Energy savings (MWh/year)

A) Project baseline scenario

CO2

4000

4000

4000

4000

CH4

N2O

other

B) Project activity scenarioa)

CO2

0

0

0

0

CH4

N2O

other

C) Effect ( B-A )

CO2

-4000

-4000

-4000

-4000

CH4

N2O

Other

D) Cumulative effect

CO2

-4000

-8000

-12000

-60000

CH4

N2O

Other

a) Includes indirect GHG leakages.

Summary table: Actual emission reductions :

GHG

Year 1

= 1996

Year 2

= 1997

Year 3

=1998

...

Year 15

Factual energy production on biofuels/ saved energy (MWh/year)

2800

2700

2700

A) Project baseline scenario

CO2

2000

1300

1400

1400

CH4

N2O

other

B) Project activity scenarioa)

CO2

0

0

0

0

CH4

N2O

other

C) Effect ( B-A )

CO2

-2000

-1300

-1400

-1400

CH4

N2O

Other

D) Cumulative effect

CO2

-2000

-3300

-4700

-21500

CH4

N2O

Other

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.

Category of funding

(For each source one line)

Amount

(US dollars)

Loan from NUTEK/STEM

439 234 USD

Grant from NUTEK/STEM for technical assistance

105 319 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 district heating companies

i) technology transfer has taken place through NUTEK /STEMs technical specialist support to the local project leader and municipality.

ii) local companies participated in project implementation phase

iii) Personal from DH company has been invited to different seminars and work-shops, documentation for training has been handed over. The following seminars in Latvia have been organized by support from STEM:

  • "Environmentally Adapted Energy Systems in Baltic States and Eastern Europe", Cesis, 23 November, 1994;
  • "Prospects for small boiler conversion to biofuel in Latvia", Rauna, March, 1996
  • "Possibilities for wood fuel utilization in Latvia", Broceni, 17 April, 1997;
  • "Waste wood for boiler houses", Liepa municipality, 5 June, 1998
  • presentation of book translated from Swedish to Latvian "Environmentally adapted local energy systems", author Niels Moe (STEM), seminars in Balvi, Jelgava, Saldus, 6-8 May, 1998

Endogenous capacity supported or enhanced:

Endogenous capacity

(Name of organization1)

Development (DEV) /

enhancement (ENH)

Describe briefly

Balvi municipality

(ENH)

The municipality has developed a long-term energy plan for the city

1) Please ensure that detailed contact information for all organizations 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:

By installing the new pipeline it was possible to close down one coal fired boiler house. The existing boiler house could produce more heat on bio-fuel which means a good possibility to use the earlier installed biofuel firing equipment more efficiently.

  1. Technical difficulties:

The parallel network is still in operation, however there is possibility to connect existing consumers to the new network.

  1. Effects encountered:

The project realization gave:

  • reduced primary energy consumption;
  • improved environment;
  • more stable heat energy supply;
  • cooperation between Baltic and Nordic countries;
  • involvement of local companies for project implementation;
  • improved energy infrastructure

4) Impacts encountered:

5) Other obstacles encountered:

6) Other:

The delivery and installation of the pipeline was performed by the local representative of the Danish district heating pipeline manufacturer. The dismounting of the existing pipeline and the civil work was performed by personnel from local company.