DKTI Development of a Sustainable Bioenergy Market in Serbia. Current biomass projects in Serbia

Transcription

1 DKTI Development of a Sustainable Bioenergy Market in Serbia Current biomass projects in Serbia page 1

2 Facts about the GIZ DKTI programme Objective: Funded by: To strengthen capacities and create an enabling environment for sustainable use of bioenergy in Serbia German Federal Ministry for Economic Cooperation and Development (BMZ) under the German Climate Technology Initiative (DKTI) In Cooperation with: Public Investment Management Office Ministry of Agriculture, Forestry and Water Management Ministry of Mining and Energy Ministry of Environmental Protection Duration: January 2018 December 2020 (2 nd phase) (1 st phase from 2013 till 2017) Rainer Schellhaas page 2

3 Structure of the programme: Policy advice Biomass supply Project development KeepWarm GIZ: Support to harmonization of laws and regulations to EU standards Support to policy definition and strategy implementation KfW: Advise to investments in district heating companies. GIZ: Support to the creation of a sustainable supply with bioresources GIZ: Advise to the implementation of cost efficient and innovative bioenergy projects Technology and knowlege transfer GIZ: Improvement of efficiency in district heating systems co-financed by EU under Horizon 2020 programme Cross-cutting theme: Sustainability Rainer Schellhaas page 3

4 GIZ contribution to the development of the bioenergy market in Serbia in the medium term Supporting political partners in realization of additional biomass utilization projects as best practice examples Building capacities to implement bioenergy projects at different levels from implementing institutions to operators Developing sustainable biomass utilization concepts customized to the Serbian context, like BLTCs, utilization of roadside vegetation, wood processing residues etc. Environmental aspects (reduction of emissions and ground water pollution) Rural economic development by creation of new local jobs along the supply chains, in the biogas sector and supporting services Macroeconomic effects on local income and trade balance Rainer Schellhaas page 4

5 Development of sustainable supply chains for district heating companies (DHC) to switch from fossil fuel to biomass 18 active municipalities first projects are going into realization in 2019 combined heat and power projects and heat only boilers financed by KfW, commercial banks or private/ppp utilisation of woody and agricultural biomass Public Investment Management Office is requesting support for additional DHCs KfW offers 2 nd tranche of credit for additional DHCs negotiations ongoing additional pre-feasibility studies are planned Rainer Schellhaas page 5

6 Developing sustainable supply chains location and development status of DHCs to switch to biomass start of construction in 2018/19? KfW financed Valjevo, Mali Zvornik, Bajina Bašta, Priboj, Prijepolje, Nova Varoš, Novi Pazar, Majdanpek, Kladovo start of construction in 2019 commercial credit or PPP Kruševac, Boljevac start of construction in 2019 commercial credit, state fund or PPP Šabac, Knjaževac, Bor, Mionica, Svilajnac, Medvedja, Prokuplje, Smederevo next potential DHCs Vranje, Pirot, Gornji Milanovac, Senta Rainer Schellhaas page 6

7 Fuel switch in public buildings for municipalities, schools and hospitals, partly with local heat network 35 active municipalities first projects are going into realization in 2018 most cases wood chip boilers financed by state funds Technical concepts published ESCO-PPP-project realized Rainer Schellhaas page 7

8 Fuel switch in public buildings location and development status financed by state funds start of construction in 2018 Priboj, Svilajnac, Despotovac, Mali Zvornik, Mionica, Arilje, Prijepolje, Nova Varos, Sokobanja start of construction in 2019 Osečina, Pirot, Kosjeric, Losnica, Smederevo, Aleksinac, Senta, Valjevo, Surdulica, Vranje, Gornji Milanovac start of construction in 2020 Lajkovac, Vrbas, Sremska Kamenica, Žagubina, Jagodina, Čačak, Vršac, Razanj, Velika Plana, Petrovac na Mlavi. Rainer Schellhaas page 8

9 Development of biogas projects for farmers and cooperatives 8 projects 5 projects are realized 3 in planning phase Technical concepts published support of Serbian Biogas association Rainer Schellhaas page 9

10 Biogas projects location and development status financed by commercial banks in operation Sombor, Žabalj, Čestereg, Potaje, Aleksinac start of operation 2019 Verušić, Selenča, Botoš (extension and heat usage), Rainer Schellhaas page 10

11 Further considerations expected investments in the bioenergy arena is huge up to 50 million EUR for biomass supply up to 140 million EUR for district heating systems million EUR for biomass heating systems in public buildings up to 80 million EUR for biogas plants domestic mazut production will stop this year (July 2018) restrictions following the EU directive on medium sized combustion plant will hit most of industrial boiler, requiring desulphurization, DeNOx and dedusting equipment Rainer Schellhaas page 11

12 well then, easy going..? Rainer Schellhaas page 12

13 How to proceed? technical documentation for 9 DHCs in preparation Europe-wide tender starting end of 2018 technical documentation for (some) public buildings available technical concepts for local heat networks available e.g. see GIZ website an example Rainer Schellhaas page 13

14 Implemented by: Concept of the fuel switch to biomass in Mionica including economical evaluation and recommendations for district heating grid page 14

15 Implemented by: Task of the study Assignment of the study is to establish: Technical concept for fuel switch to biomass heating for public buildings, Phase I Designing the system for future connection of residential buildings, Phase II Installation of a wood chip heating plant Installation of distribution system including grid and substations Reduction of CO2 emissions page 15

16 Implemented by: Evaluation of current situation Public buildings Public buildings and buildings with public institutions of Mionica are located around the town at a great distance. Technical parameters of public buildings are: heated area 13,426 m 2 capacity 1,931 kw page 16

17 Implemented by: Evaluation of current situation Residential buildings By type in Mionica there are residential buildings: with more apartments family houses Reserve provided for residential buildings are: heated area 12,917 m 2 capacity 1,615 kw page 17

18 Implemented by: Evaluation of current situation Existing heating systems Existing heating systems Crude oil boilers Coal boilers Electric boilers Local electric heaters Public buildings Public and residential Public and residential Public and residential page 18

19 Implemented by: Technical design concept Heating plant - capacity New heating plant contain biomass boiler assisted by the existing boilers with fuel oil during periods of high consumption. This would reduce the investment costs The existing boilers and their installation would be relocate from main municipality building. The existing boilers with fuel oil have a power of 750 and 900 kw Phase Calculate Heating Plant participation biomass Capacity of boiler Heating Plant capacity boiler Biomass Oil Oil capacity (kw) (kw) (kw) (kw) (kw) I % I+II % page 19

20 Implemented by: Technical design concept Heating plant - location Location intended for the construction of new power plant located on cadastral plot 115/1 KO town Mionica, surface 1,950m 2. The location is in the central town area and an existing access road. page 20

21 Implemented by: Technical design concept District heating network Heating network is designed to connect objects in first and second phase, and to enable the connection of new users. Since new users will later be added, pipe network is designed for larger capacity than needed in phase I and II The network of pipes consists of preinsulated steel pipes that direct the flow at pre-prepared soil Temperature regime of heating network is 110/70 o C page 21

22 Implemented by: Technical design concept Heat substations District heating transfer stations provide the link between district heating suppliers and customers systems Substations are designed for installation in areas which are currently housing boiler rooms The operating pressure in the primary part of the substation will amount to a maximum of 6 bar and will correspond to the parameters of the heating network, while the temperature range will be 110/70 in the primary part and 80/60 in the secondary part Danfoss substations page 22

23 Implemented by: Preliminary investment analysis Three scenarios In order to find the best solutions and determine the viability of the investment, the preliminary cost analysis consists of three scenarios: Scenario 1; Scenario is conditioned by the assumption that there is a heating grid on which the related facilities of public administration of the municipality Mionica are connected to. Scenario 2; Scenario includes the construction of the heating grid that would be dimensioned only for public administration of the municipality Mionica (Phase I). Scenario 3; This scenario includes the construction of the heating grid that would have been dimensioned for connection of public administration of the municipality Mionica and subsequent connection of residential and commercial buildings (Phase I + II). page 23

24 Implemented by: Preliminary investment analysis Preliminary cost investment by scenarios Investment expenses would include the purchase of equipment and boilers, necessary civil works, mechanical works and electrical works on the construction of a new boiler, the heating grid, the relocation of the existing boiler with fuel oil, and connecting objects to a new distribution system. Investment costs by scenario ( ) 1. SCENARIO SCENARIO SCENARIO page 24

25 Implemented by: Preliminary financial analysis Cost estimate is for the period of 20 years Annual costs include costs for biomass, heavy fuel oil, ashes, electricity, water, labor costs, maintenance, insurance, depreciation Scenario 3 is different from the scenarios 1 and 2, due to the larger heating capacity which users of district heating systems have It is expected that the connection of facilities in Phase II (residential buildings) will be achieved in a period of 7 years. In the first year since of project it is not expected to join any object. It is expected that the largest number of buildings is connected in the fourth and fifth year of the commencement of work page 25

26 Implemented by: Preliminary financial analysis Overview of investments and costs according to the scenario For period of 20 years Investnent Total operating and fuel costs for Earnings from Saving Existing systems New biomass system Phase II Total a b c d=(b-c) e d+e-a Scenario Scenario Scenario page 26

27 Implemented by: Preliminary financial analysis Within the scenario 3, financial benefits are savings from replacing the existing fuel and sales of thermal energy to future users ( /m 2 a) Coal Heavy fuel Resident space 7,24 9,96 Buisniess space 10,85 16,42 After the construction of the distribution of heating systems, assumption is that the price of heating unit will remain the same as the current price for a residential area that is heated by coal furnace Scenario 3 assumes that in the period of 7 years all objects from the phase II will be connected, which would create additional financial income The advantage of this scenario is that the municipality formed a sustainable infrastructure system for district heating, which increases the quality of life and a creates a positive effect on the environment. page 27

28 Implemented by: Project evaluation Based on the analysis of three proposed scenarios, the construction of a biomass boiler and district heating system would be justified under the condition that with the connection of public facilities make the connection of a large number of residential and commercial buildings possible in the shortest time frame. SCENARIO 3 - Unit cost heat energy Unit Value The investment value - Capex Annual production of heat energy (first year of operation) MWh / a Total heat production (20 years) MWh The operation value (20 years) - Opex LUC - Levelized Unit Costs / MWh 51,2 page 28

29 Implemented by: Conclusion Scenario 1: This scenario assumes that there is heating grid only for public buildings (Phase 1). Scenario 1 shows that the switch fuel to biomass generate financial savings Scenario 2: This scenario considers the construction of the biomass boiler and heating grid, only for public institutions of Mionica. Considering that public institutions are located in buildings spread throughout the town, the construction of a biomass boiler and pipe systems for district heating needs of public institutions is financially unsustainable because of the large investment costs Scenario 3 with the construction of a biomass boiler and pipe systems for district heating and dimensioned for future connection of residential buildings, is the only viable solution to reduce the costs of heating public institutions. This investment is the largest but the connection of new users has made additional financial profit that this system has made sustainable. page 29

30 Rainer Schellhaas page 30

31 How to proceed? technical documentation for 9 DHCs in preparation Europe-wide tender starting end of 2018 technical documentation for (some) public buildings available technical concepts for local heat networks available e.g. see GIZ website contacting TOPS (association of district heating companies in Serbia) contacting Serbian Biogas association Rainer Schellhaas page 31

32 As a public-benefit federal enterprise service provider with worldwide operations in the field of international cooperation for sustainable development, GIZ works together with its partners to develop effective and sustainable solutions. Publisher: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Registered Offices: Bonn and Eschborn, Germany DKTI Programme Development of a Sustainable Bioenergy Market in Serbia Rainer Schellhaas Component Leader Biomass Supply rainer.schellhaas@giz.de In Cooperation with Public Investment Management Office Ministry of Agriculture, Forestry and Water Management Ministry of Mining and Energy Ministry of Environmental Protection Bože Jankovića Belgrade Serbia page 32