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ACTIVITIES IMPLEMENTED JOINTLY (AIJ)
 

Uniform Reporting Format:

Activities Implemented Jointly Under the Pilot Phase

List of Projects

A. Description of project

1) Title of project: Talsi, District Heating Network Rehabilitation

2) Participants/actors:

Item

Financier/Reporter

Latvian co-reporter

Name of organisation(a):

Statens Energimyndighet

Vides Aizsardzîbas un Regionâlâs Attîstîbas Ministrija

Name of organisation (English):

Swedish National Energy Administration

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

Department:

Secretariat for Climate Policy and International Co-operation

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):

Name of organisation (English):

Ministry of Finance of the Republic of Latvia

Department:

Acronym:

Acronym (English):

Function within activity:

Borrower

Street:

Smilsu Street1

Post code:

LV1919

City:

Riga

Country:

Latvia

Telephone:

+371- 7 226 672

Fax:

+371-7 820 010

E-mail:

WWW-URL:

Contact person (for this activity):

Talsi Town Council and Talsi Bio-Energia SIA

Surname:

Zalupe

First name, middle name:

Juris

Job title:

Director of Talsi Bio-Energija

Direct tel:

+371-32-22736

Direct fax:

+371-35-32003

Direct E-mail:

bio@bioen.apollo.lv

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:

Talsi is a town located 150 km west of Riga with 13 000 inhabitants. The distribution system is an old worn out 4-pipe system. One boiler has been converted to biofuel financed by EBRD. Total energy production in town is 33 100 MWh.

Type of project:a)

District heating rehabilitation project

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

state):

Talsi Town

Talsi region

Latvia

Activity starting date:

August 18, 1997 (Letter of Intent)

In operation from:

October 1998

Expected activity ending date:

Loan expire date :September 30, 2003

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 2013.

Technical data:d)

24 new substations with heat exchangers for the domestic hot water production and temperature control equipment will be installed. The existing pipelines has been exchanged to pre-insulated pipeline of smaller dimensions. A total amount of 1,170 MWh heat is saved by the project. (1 600 MWH?)

a) For example, using Intergovernmental Panel on Climate Change (IPCC) classification: energy efficiency; renewable energy; fuel switching; forest preservation, restoration or reforestation; afforestation; fugitive gas capture; industrial processes; solvents; agriculture; waste disposal or bunker fuels.

b) Circle the appropriate option.

c) Methodological work will be required to define lifetime of activities.

  1. Methodological work will be required to determine for each type of activity what the minimum data requirements are.

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.

  1. 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

Talsi DH

1998

0

Investment

1. Loan/debt to STEM

196250

2. Added costs

0

3.Technical assistance

37500

AIJ/JI

4. Follow up

0

A. Sweden

costs

5. Reporting costs

2500

6. Administration

38750

7. Difference in interest

4%

8.Accum. costs for AIJ/JI

78750

9.Total costs

275000

Investment

1. Investment/amortization

0

Latvia

AIJ/JI

2. Reporting costs

0

3. Other osts

0

costs

4. Accum. costs for AIJ/JI

0

5. Total costs

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:

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:

Yes, Agreement with Latvian Ministry of Environmental Protection and Regional

Development was signed on March 1999.

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 o 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 emission reductions from savings by the project activity.

320 ton CO2

3.5 ton SO2

0.7 ton NOx

Do quantitative data exist for evaluation of environmental benefits?

Yes

data collected by EKODOMA, 1999

Describe social/cultural benefits in detail:

More stable energy supply.

Improved working conditions, increased motivation.

Better indoor climate in buildings.

Improved supply of domestic hot water to inhabitants.

Do quantitative data exist for evaluation of social benefits?

No.

Describe economic benefits in detail:

Decreased energy losses

Do quantitative data exist for evaluation of economic benefits?

Yes.

data collected by EKODOMA , 1999

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):

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:

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 reductions:

GHG

Year 1

=1998

Year 2

=1999

Year 3

=2000

...

Year 15

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

550

1,170

1,170

1,170

A) Project baseline scenario

CO2

160

320

320

320

CH4

N2O

other

B) Project activity scenarioa)

CO2

0

0

0

0

CH4

N2O

other

C) Effect ( B-A )

CO2

-160

-320

-320

-320

CH4

N2O

Other

D) Cumulative effect

CO2

-160

-480

-800

-4,640

CH4

N2O

Other

a) Includes indirect GHG leakages.

Summary table: Actual emission reductions:

GHG

Year 1

= 1998

Year 2

= 1999

Year 3

=2000

...

Year 15

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

400

1600

1600

1600

A) Project baseline scenario

CO2

110

440

440

440

CH4

N2O

other

B) Project activity scenarioa)

CO2

0

0

0

0

CH4

N2O

other

C) Effect ( B-A )

CO2

-110

-440

-440

-440

CH4

N2O

Other

D) Cumulative effect

CO2

-110

-550

-990

-6270

CH4

N2O

Other

  1. 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

333,333 USD

Grant from NUTEK/STEM for technical assistance

46,666 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 workshops, 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

Talsi Town Council

(DEV)

Municipality are looking for new possibilities to increase total efficiency of the heating system. Place can be used for co-generation implementation on bio-fuels.

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:

One part of the city is converted from 4-pipe heating network to 2-pipe heating network. New heat substations are installed in 24 houses. Substantial reduction of heat losses, reduced water leakages.

  1. Technical difficulties:
  2. 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:

  1. Other obstacles encountered:

It took very long time before the Latvian authorities approved Talsi's application for taking up a foreign loan. Finally the loan was granted through the intermediary of the Ministry of Finance

6) Other:


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