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Lithuanian Experience in District Heating Reform

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... you throwing away the exhaust steam from your engines when people are willing to ... is necessary is to install our sytem of Underground Steam Heating Mains' ... – PowerPoint PPT presentation

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Title: Lithuanian Experience in District Heating Reform


1
Lithuanian Experience in District Heating Reform
Vytautas Stasiunas Lithuanian District Heating
Association President 21 October,
2005 International conference Heating Sector
Institutional Reform in the Former Soviet Union
Baku, Azerbaijan
2
  • WORLD
  • Why are you throwing away the exhaust steam from
    your engines when people are willing to pay you
    three times its cost of production for heating
    purposes? All that is necessary is to install our
    sytem of Underground Steam Heating Mains
  • (Birdsill Holly, who established the first
    district heating system in 1876 and a little
    later was granted a patent for the first combined
    heat and power plant)
  • LITHUANIA
  • In 1903 a low-pressure steam heating was
    installed in Vilnius Central Power Plant. This
    was the first district heating in Lithuania. Heat
    was delivered througout the premices of power
    plant machinery room, accumulator room,
    workshops, office and residential premises.

3
Main factors retaining DH undestroyed in Lithuania
  • Big investments during 1960-1990
  • Cold climate conditions, where heating season
    lasts for 6 -7 months/year
  • Big demand for heat energy for hot water
    preparation all-year-round
  • The effective and well-timed support from West
    European countries (particularly from
    Scandinavia)

4
DH market share in Europe
5
Members of LDHA DH companies
6
Key indicators of the DH sector
Unit 2001 2002 2003 2004
Heat delivered to the network GWh 10824 10623 10440 10300
Heat delivered to consumers GWh 8166 8244 8309 8140
Technological heat losses 21.1 18.8 18.1 17,8
Average cost of fuel EUR/toe 135 131 131 126
Turn over for heating mio. EUR 272 278 277 268


Average price EUR/MWh 33.3 33.7 33.3 32.9

7
DH Ownership structure, 2004
The lease of heat utilities to foreign and
domestic investors started in 2000
(ownership 100 in municipality)
(9.5 with JV)
8
Heat balance, 2004
9
Guidelines of DH Development
  • The share of CHP electricity would make up not
    less than 35 in 2020 (currently it makes about
    17.2)
  • The share of CHP heat would make up not less than
    75 in 2020 (currently it makes about 50)
  • Modernize CHP plants in Vilnius and Kaunas and
    construct a pilot CHP plant in Panevežys
  • Construct modern CHP plants in Siauliai,
    Klaipeda, Alytus, Marijampole and other cities
    until 2020

10
CHP electricity delivered to the network
11
Fuels used for DH production

It is foressen that production of heat using
local, renewable and waste resources would make
17 in general heat balance in 2010, and 23 - in
2020.
12
Fuel input for DH production 2004
  • DH companies more and more often go for
    installation of biofuel fired boilers. The total
    installed capacity of such boilers has reached
    more than 220MW.
  • Biofuel makes 10.0 in the general fuel balance
    and this share in the regional DH companies
    exceeded 21.

Lithuania
Sweden
13
Technological DH distribution loss
  • Main heat transfer lines in the network were
    installed 30-40 years ago and their operational
    resource is coming to the end.
  • In 2004 approx. 72 mio. LTL (about 21 of the
    total investment amount) invested in this field

14
Heat energy consumption, 2004
15
Heat users
16
Average DH tariff in Lithuania, 2004
  • The average price of heat is dropping down
  • it was 115.1 LTL/MWh in 2003,
  • while in 2003 113.5 LTL/MWh

17
(No Transcript)
18
National Energy Strategy - Heat Sector
Adopted by Seimas 10/10-2002
  • Strategy for the Heat Supply Development
  • Heat supply development plans for municipalities
  • CHP in DH systems (after the closure of Ignalina
    NPP)
  • Encourage use of local and renewable energy
    sources
  • Improve energy efficiency
  • Competition among heat producers
  • Procedure for independent heat producers
  • Modernise heat supply systems
  • Procedure for the purchase of CHP electricity

19
Energy Law
Adopted by Seimas 16/5-2002
  • Energy savings
  • Energy efficient use of primary energy sources
  • Reducing energy intensity
  • Diversification (fuel imports, indigenous fuels)
  • Promotion of indigenous fuels
  • Reliable and cost-effective production
  • Reducing effects on the environment
  • Forming legal and economic conditions for
    investments
  • Increase economic efficiency competition,
    private invest.

20
Heat Law
Adopted by Seimas 20/5-2003
  • Heat operator tasks (supply heat, maintain
    system)
  • Heat planning and zoning etc.
  • Relation with heat consumers (responsibilities)
  • New customer contract principles
  • Regulation of consumers disconnection options
  • Transparency for consumers
  • Access for external parties to supply heat
  • Separation from municipal economic activities

21
Competition in DH sector
  • The competition between the suppliers of
    alternative types of fuels.
  • The heat production shall be based on the
    competition between the heat producers.
  • The hot water preparation and supply shall be
    based on competition.
  • The state (municipalities) shall promote
    competition in the field of maintenance of
    heating and hot water systems inside the
    multy-family apartment houses.

22
Municipal Heat Plans
  • The municipalities shall manage the heat sector
    in conformity with the special Municipal Heat
    Plans.
  • The main objective of the Municipal Heat Plans
    shall be to satisfy the consumers heat demand on
    least costs.
  • The Municipal Heat Plans shall be in conformity
    with the state strategy, national objectives in
    the energy industry.
  • The government may provide assistance and support
    in implementing the Municipal Heat Plans.

23
There are 60 municipalities in Lithuania
24
Heat Supply License
  • The heat suppliers shall obtain the heat supply
    license.
  • The heat supply license to the heat supplier
    supplying not less than 5 GWh of heat/year is
    issued by the National Control Commission for
    Prices and Energy.
  • The heat supply license to the heat supplier
    supplying less than 5 GWh of heat/year is issued
    by Municipalities

25
Heat pricing
  • The heat and hot water prices shall be the single
    - component or the double - component.
  • The heat and hot water prices might be
    differential depending on the heat supply system,
    consumer groups, volume of heat consumption,
    season of consumption.

26
Heat consumption in old and new erected houses
Build in Consumed heat amount, kWh Consumed heat amount, kWh Consumed heat amount, kWh Consumed heat amount, kWh Price 1 m2 LTL (excluding VAT) Period
Build in Total For heating For hot water preparation Space heating of 1m2 (kWh/m2) Price 1 m2 LTL (excluding VAT) Period
40 flats multy-family apartment house (heating area 1756 m2) 1962 23000 18054 4946 10,28 1,04 10/2003
40 flats multy-family apartment house (heating area 1756 m2) 1962 38000 33891 4109 19,30 1,95 11/2003
40 flats multy-family apartment house (heating area 1756 m2) 1962 41000 36704 4296 20,91 2,12 12/2003
40 flats multy-family apartment house (heating area 1756 m2) 1962 62000 58011 3989 33,04 3,35 1/2004
40 flats multy-family apartment house (heating area 1756 m2) 1962 65230 61307 3923 34,92 3,52 2/2004
40 flats multy-family apartment house (heating area 1756 m2) 1962 43300 39567 3733 22,54 2,28 3/2004
40 flats multy-family apartment house (heating area 1756 m2) 1962 28000 23649 4351 13,47 1,36 4/2004
40 flats multy-family apartment house (heating area 1756 m2) 1962 154,46 2,23
102 flats multy-family apartment house (heating area 6923 m2 2001 37000 11967 13608 1,73 0,18 10/2003
102 flats multy-family apartment house (heating area 6923 m2 2001 75000 46508 17067 6,72 0,69 11/2003
102 flats multy-family apartment house (heating area 6923 m2 2001 58000 32998 13578 4,77 0,49 12/2003
102 flats multy-family apartment house (heating area 6923 m2 2001 106000 75181 19395 10,86 1,12 1/2004
102 flats multy-family apartment house (heating area 6923 m2 2001 106000 77716 16860 11,22 1,16 2/2004
102 flats multy-family apartment house (heating area 6923 m2 2001 82000 51926 18650 7,50 0,77 3/2004
102 flats multy-family apartment house (heating area 6923 m2 2001 58000 32777 13799 4,73 0,49 4/2004
102 flats multy-family apartment house (heating area 6923 m2 2001 47,53 0,70
27
Long-term renovation program Lets renovate
dwelling- renovate City
  • On June 2004 Vilnius City Municipality started
    the implementation of long term renovation
    program Lets renovate dwelling - renovate
    City.
  • World fund for Environmental Protection gave a
    loan of 6,5 million USD (3 million USD is
    intended for building renovation).
  • Pilot project overall renovation of 3
    multi-family apartment buildings - is implemented
    within this project framework.

28
Legal Acts on Renovation of Multy-family
Apartment Houses
  • Lithuanian Housing Strategy (Adopted on
    21-01-2004)
  • Support Programme on Renovation of Multy-family
    Apartment Houses (Adopted on 23-09-2004, modified
    on 21-06-2005)
  • Measures and terms of implementation of Directive
    2002/91/EC of the European Parliament and of the
    Council on the energy performance of buildings
    (Adopted on 27-12-2004)
  • Law on State Support for Housings Procure or
    Rent and Modernization of Multy-family Apartment
    Houses (Adopted with modifications on 24-03-2005)

29
Bilateral Danish Support
  • Support from the Danish Energy Authority for
    implementation of Lithuanian DH Training
    Network project
  • Project duration 2001 2004 y.
  • Project results
  • 11 training programmes prepared
  • 25 employees from DH companies were trained
  • 6 guidelines prepared
  • LDHA strategy for 2004 developed

30
EU Structural funds support for LDHA
  • Support from the EU Structural Funds for project
    Training of District Heating Companies
    implementation
  • Project duration 24 months
  • Project value 204 900 Lt
  • Funding 150 842 Lt
  • LDHA funding 54 058 Lt

31
Project Training of District Heating Companies
  • Project Goal increase skills and knowledge of
    the employees of the District Heating Companies
    in the area of management, marketing, finance
    management and accounting, EU energy policy
  • Projected group 47 high level and middle level
    managers and accountants from heat supply
    companies

32
DISTRICT HEATING - CITY WITHOUT CHIMNEYS
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