Deliverable 3.a (Combining former deliverables 3.1; 3.2; 3.5) City. Topusko. Supporting partner UNIZG FSB

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1 City Supporting partner Topusko UNIZG FSB Map showing local heating and cooling demand and supply Work so far: The group at the Department of Energy, Power Engineering and Environment at the Faculty of Mechanical Engineering and Naval Architecture, University of Zagreb has developed a heating and cooling demand map for Topusko. The results can be seen bellow: Figure 1 Useful heating demand distribution for Topusko GIS mapping and future work The map in Figure 1 presents the useful heating demand distribution for Topusko on a scale of m essentially showing the amount of useful heat required in kwh/10000m 2. The map is also available on a smaller scale (approximately 11 meter) but this was discussed with the city representatives and representatives of the DH company and it was determined that such a scale is too small and not realistically needed. A map demonstrating the heating demand on a scale of 11 km and can be utilized if necessary. Figure 2 presents the developed GIS based heating and cooling demand maps for Topusko. The maps were created using the data gathered and processed during the STRATEGO local mapping exercise following the methodology described below and using the ArcGIS tool. The future work relate to the GIS mapping will include, aside from the publication of the maps online, the expansion of the developed maps with additional layers such as excess heat locations, potential for the utilization of renewables, distribution of the district heating and gas grids and so on, pending the availability of such data and the support from the local stakeholders. Figure 2 GIS maps for Topusko

2 Mapping methodology H/C demand H/C infrastructure Sustainable H/C Excess heat Energy efficiency potential Geothermal Bio-energy Solar thermal City only Neighbourhood only Individual installation No details Additional Info Monitored data Method used: Figure 3 demonstrates a simplified representation of the method used in order to create the heating and cooling demand maps for Topusko. The initial step in the process is the utilization of the online building census that unfortunately only provides the locations and rooftop view areas of the buildings to create a matrix and with that a basic set of info telling us if a certain spot is covered by a building or not. After the initial step, the number of floors of every building is determined to calculate its total gross area, multiplying the area with the number of floors. This information was not available in the census and was collected partially from energy audits, where available, and info provided from the cities themselves. This data was very scares usually covering only public and public owned buildings that make a minority of the overall building stock. In order to complete this process, buildings on the initially developed map were color-coded based on the number of floors manually using google street view or other available data sets. Finally, the buildings were classified into 6 categories Figure 3 Simplified representation of the method used based on age and type; old house, new house, old apartment building, new apartment building, industrial facility and sky rise. These data were also collected the same way as the information on the number of floors. A coherent and publically available building census would drastically reduce the time intensity of this methodology and allow the user to develop such maps quickly, easily and with great detail.

3 Current challenges - opportunities Topusko is small Croatian municipality situated on the edge of Sisačko-Moslavačka county, between the areas of Kordun and Banovina. It has 2985 inhabitants on 198,3 km 2 with average population density of 15 inhabitants per square kilometre. There is a small river Glina nearby, and the municipality is surrounded by woodlands and farming fields between two hills, Petrova gora in the west and Zrinska gora in the south-east. It is connected through traffic roads to the nearby cities of Glina (13 km), Petrinja (35 km), Sisak (47 km) and Karlovac (55km) as shown in Figure 4. It is well known for its geothermal water sources that emerge from the depth of 1500 m and are of volcanic origin. In 1980 s four boreholes TEB-1 (20 l/s), TEB-2 (15 l/s), TEB-3 (16 l/s) and TEB-4 (100 l/s), as shown in Table 1, were drilled and put into usage for medical purposes, such as rehabilitation and tourism, and as heat source for municipality s small DH (district heating) network in the mid 1980 s. Since the beginnings of exploitation many problems regarding sustainability of production on several boreholes have been Figure 4 Geographical location of municipality of Topusko spotted, so the production capacities of TEB 1 and TEB 3 were reduced by 50 % while the TEB 2 has been shut down and can no longer be used for exploitation. Recent studies from 2007 and 2014 have shown that there is additional potential for the fifth borehole TEB-5 (12 l/s) in the area of natural wells Livadski izvori, some 200 m south-east of the TEB 1 and 300 m south of the TEB 4, which have earlier been used for filling the swimming pools in the rehabilitation centre. Currently northern district Novo naselje and houses alongside road Ribnjak are connected to the borehole TEB-3, while the thermal rehabilitation centre, two schools, kindergarten, industrial complex TIM dalekovod and houses alongside road Glinska are connected to municipality s main DH network which is connected to the two boreholes TEB-1 and TEB-4. Although TEB-1 has two output lines, where one is directly connected to the main DH network and other to the consumers in the south part of the Table 2 Heated surface area and heat consumption Heat source Heated surface area (m 2 ) Heat consumption (MWh/a) Specific heat consumption (kwh/m 2 a) Geothermal heating , Geothermal medical ,5 - Other , Table 1 Borehole capacites Bore hole Capacity [m 3 /a] Capacity [l/s] TEB TEB-2 Shut down TEB TEB Total TEB Potential village, only the second one is currently being used because of the high heat loses, about 75 %, due to lack of thermal pipe insulation. There is also the problem of increased temperature difference, more than 10 C, between waste water, about C, that is being released into the river Glina and the river Glina, between 4 and 20 C depending on the season. Current heated surface area, heat consumption and specific heat consumption in village of Topusko are shown in Table 2.

4 The main challenges: - High heat loses of 75 % due to the lack of insulation in the pipes connected to the bore hole TEB-1 - Lack of heating capacity to cover the heat demand from the village - High waste water temperatures which are released back in to the river. The main opportunities: - Thermal insulation of pipes connected to the bore hole TEB-1 and extension of the current DH network - Exploitation of a new bore hole TEB-5 and its connection to the DH network - Exploitation of HP s for lowering the waste water temperature by 10 C so it can be released back to the river Areas of priorities The map in Figure 6 shows regions that are supplied by each bore hole. Blue region is covered by the TEB- 1, red region by the TEB-3 and green region by the TEB-4. Yellow region represents the small residential district that could potentially be covered by the new geothermal borehole TEB-5 or trough new pipeline connection that connects it to the existing DH network. Heat capacity of the DH network could be higher if the pipes that connect borehole TEB-1 to the DH station were properly insulated. The main priority for improving the current situation in the municipality is the reduction of heat loses trough installation of proper pipe insulation. Properly insulated pipes are shown in Figure 5. Another area of priority is drilling of fifth geothermal bore hole TEB-5 that is located in the natural wells Figure 6 Areas of Topusko that are suplied by each borehole Livadski izvori and that has estimated capacity of 12 l/s that could potentially be enough to cover most of the heat demand from the new consumers in the yellow district in Figure 6. Third area of priority is the integration of HP s that could be used as main heat source for the industrial complex in the north-east part of the village. This could benefit the whole village because waste water temperature could be lowered from 40 C to down to 10 or 15 C that should be low enough for meeting the maximal temperature difference of 10 C, prescribed by the EU environmental directives, between waste water temperature and the river temperature into that it is being released. Figure 5 Mike1024 (2007). Insulated pipes to connect a new building to University of Warwick's campus-wide combined heat and power system. [Online image]. Retrieved March from

5 Identified projects List of considered projects: Thermal insulation of pipes and expansion of the DH network Drilling of a new geothermal bore hole TEB-5 and expansion of the DH network Integration of HP s for reduction of waste water temperature Project 1 The only geothermal borehole that is used to cover heat demand from the blue region in Figure 7 is TEB-1. It has capacity of 12 l/s with constant water temperature throughout the year of around 65 to 68 C. There are two pipelines connected to the TEB-1 but currently, because of high heat loses of nearly 75% due to lack of thermal insulation, the second pipeline, that is directly connected to the DH station, is out of use. All of the consumers in the blue region, including postal office, local government buildings, few residential houses, a bank, health centre and one small swimming pool, that are directly connected to the TEB-1 trough first pipeline, consume about 28 % of its maximal heat production capacity, about 3,5 l/s or kwh per heating season. Given that the maximum capacity of TEB-1 is about m 3 /a, difference of about m 3 /a or kwh per season could be used for space heating of additional buildings that could be connected to the existing DH network. Since most of the buildings in the village of Topusko have no thermal insulation, their yearly specific heat consumption ranges between 220 and 300 KWh/m 2. If all of the buildings remain unrefurbished, mainly because of poor social status of its inhabitants, there could potentially be 80 new households, with average surface area of 75 m 2, connected to the network. The new area, where DH could be offered as alternative for wood heating, is highlighted in yellow in Figure 7. In order to verify economical value of such a project, a case study with three different Figure 7 Area for expansion of the DH network scenarios for three different equipment prices, has been conducted. Equipment prices of all three scenarios that represent minimal, maximal and average capital cost of main and ancillary pipelines from DH network, their maintenance and thermal insulation costs are, according to Assessment of the Costs, Performance, and Characteristics of UK Heat Networks (2015), represented in Table 3. It is estimated that one fourth of the surface area will be used by commercial sector while the rest of it will be used by residential sector. Comparison of current geothermal heat prices in village of Topusko and couple of other DH networks in Croatia are shown Table 3 Capital costs of the equipment Gross capital cost Minimal Maximal Average DH network maintenance ( /m) Main pipeline ( /m) Ancillary pipeline ( /m) Thermal insulation ( /m 2 ) in diagrams in Figure 8. From those two diagrams it can be seen that current heat energy prices are the lowest in Croatia while the capacity prices are among the more expensive ones. In all analysed scenarios current heat energy prices were optimized so that the NPV of the project equals 0 after 30 years, which is expected equipment lifetime, including main and ancillary pipelines, digging costs, pipeline maintenance and pipeline insulation costs. Insulating the second pipeline that connects TEB-1 to the DH station opens

6 Prices ( /kwh/month) Prices ( /kwh) 0,070 0,060 0,050 0,040 0,030 0,020 0,010 0,000 3,500 3,000 2,500 2,000 1,500 1,000 0,500 0,000 0,024 Residental sector Industrial and commercial sector 0,045 0,021 0,045 0,045 0,045 0,041 0,039 0,022 Figure 8 Comparison of heat and capacity prices in Croatian cities somewhere in the middle of those two so the third scenario that includes average prices is also analysed. Results from it show that heat energy prices could potentially be increased by up to 191%. Even in worst case scenario heat energy prices could still be cheapest in Croatia, so investment in this project could still potentially be cost effective. Energy prices in croatian cities 0,064 0,063 0,056 0,066 0,050 0,049 0,058 0,009 0,007 Sisak Osijek Zagreb Velika Slavonski Virovitica Karlovac Rijeka Varaždin Topusko gorica, Samobor, Zaprešić brod 2,227 Residental sector Industrial and commercial sectors 1,719 2,034 2,227 Capacity prices in croatian cities 2,014 1,498 1,498 2,889 2,889 3,151 2,626 2,626 2,534 2,612 2,363 Sisak Osijek Zagreb Velika Slavonski Virovitica Karlovac Rijeka Varaždin Topusko gorica, Samobor, Zaprešić brod 1,654 up space for additional 7000 to m 2 for residential sector, or about 100 to 150 houses with average heated surface area of 75 m 2, and up to 4000 m 2 for industrial and commercial sectors. In order to connect the new potential consumers from the yellow region in the Figure 7 DH network needs to be expanded by approx. 450 m of which 150 m represent main DH pipeline while the rest represents ancillary pipelines that are connected directly to the consumers. Results of all three analysed scenarios, that also include water exploitation costs of 0,213 /m 3, are represented in Table 4. Results show that in best case scenario, when prices of all equipment are the cheapest, there should be no need for increase in heat energy prices, while in the worst case scenario when the prices are most expensive heat energy prices could potentially increase by up to 287%. In reality equipment prices, because of the relatively small DH network capacity, could be Table 4 Results of the analysed scenarios Scenario Min Max Average Households energy prices ( /kwh) 0,0034 0,0162 0,0099 Business energy prices ( /kwh) 0,0061 0,0188 0,0125 Total pipeline investment cost ( ) Insulation investment cost ( ) 4.911, IRR 5% 5% 5%

7 Business model of project 1 Key Partnerships Local DH system Municipality of Topusko Key Resources Geothermal borehole TEB-1 Grant funding Knowledge Key Activities Reduction of heat loses through pipe insulation, Extension of DH network into the new neighbourhood Value Proposition Cheap geothermal energy; Increase of market share; Increased energy security Reliable supply. Channels Word of mouth or direct contact Conduct case studies Telephone service City s webpage Customer Relationships Heat with Trust Customer segments Single family houses Commercial houses Public buildings Industrial facilities Cost structure Investment cost for DH pipeline: Investment cost for insulation: Revenue Streams Capacity fees Sale of heat Investment grants Bank loans Costumer Segment About small to medium sized residential houses covering some to m 2, and some additional 7000 m 2 for industrial and commercial businesses. Value Proposition Utilization of cheap geothermal energy that could be offered to the new consumers in the southern part of the municipality. Because of the newly installed capacities, the overall DH system is more reliable and energy supply is secure. Channels Since this is a small municipality with under 2000 inhabitant s communication should be organized with house owners on an individual bases where all the information could be shared and case studies presented. All the information should be available on the municipality s official website or through telephone service. Customer Relationship Since the proposed project covers the whole DH network different customers expect different relationships but all would benefit from the increased security of supply. Trust should be developed separately, commercial customers should be approached professionally while small building owners should be approached personally through small letters or flyers containing the description of the project. Revenue Streams Heating bills that include capacity fees and buying cheap heat from the geothermal utilities are main recurring income streams. Secondary revenue is through investment grants and bank loans for building and expanding the DH network. Key Resources Banks could be interested in offering a specific loan with reduced interest rate. There is also possibility that EU funds would be interested in such project because it offers utilization of carbon free heat production from the geothermal wells. The knowhow is another key resource that offers energy savings and implementation of optimal technology.

8 Key Activities Reduction of heat losses through proper thermal insulation of the main pipeline connected to the DH station and expansion of the current DH network in to the new area. Key Partners DH system owned by the municipality of Topusko. Topusko would be the only investor since the DH system is 100% owned by the municipality. Cost Structure Investment costs in DH pipelines is in range from to g and is capacity dependent. Investment costs in thermal insulation amounts to Project 2 Natural wells Livadski izvori, that are located some 200 m south-east of TEB 1 and 300 m south of TEB 4, and have earlier been used for filling the swimming pools in the rehabilitation centre, are now out of use. The potential of these wells is similar to those of the TEB-1 and amounts up to 20 l/s. Recent studies have shown that real exploitation capacity of these wells could be somewhere in range from 10 to 12 l/s or some m 3 /a. If the thermal capacity of these wells is to be exploited new bore hole TEB-5 needs to be drilled. Depth of the borehole is expected to be somewhere between 150 and 250 m. Yearly heat energy potential of the TEB-5 is around MWh/a and could be enough to supply m 2 in residential sector, or about 250 houses with average surface area of 75 m 2, and additional m 2 of industrial and commercial sectors. The region with potential new consumers is highlighted yellow in Figure 9. In order to verify the economic value of this project a case study, including two scenarios where each one has three subcases, has been conducted. These two scenarios represent two cases for different depths of the borehole. In Scenario 1, which represents best case scenario, drilling of the borehole of 150 m has been analysed. In Scenario 2, which represents worst case scenario, drilling of the borehole of 250 m has been analysed. In both of these scenarios three cases, that according to Assessment of the Costs, Performance, and Characteristics of UK Heat Networks (2015), represent minimal, maximal and average prices per meter of borehole depth, have been analysed. Prices of main and ancillary pipelines and DH network maintenance costs are also shown Table 5 Equipment and DH maintenance costs Scenario Minimum Maximum Average Bore hole price ( /m) DH network maintenance ( /MWh) 0,483 1,448 0,965 Main pipeline ( /m) Ancillary pipeline ( /m) Figure 9 Expansion potential of current DH network in the Table 5. Since the TEB-5 is located some 100 m south of the DH station a new pipeline connection between those two has to be established. Another pipeline connection of additional 450 m, that extends the DH network into the yellow region from Figure 9, also has to be established. The investment costs of these two new pipelines, depending of the analysed cases in both scenarios, represent between 42 and 72% of total investment cost of this project. In both scenarios 95 % of the total investment costs were financed through bank loan with interest rate of 5 % and the rest was financed through own founds, while the current heat energy prices were optimised so that the NPV of the project equals 0 after 40 years.

9 Table 7 Results from Scenario 1 New increased heat energy Scenario 1 Min Max Average prices, investment costs of laying the pipeline and drilling Households energy prices ( /kwh) 0,0050 0, ,0134 the borehole, as well as the Business energy prices ( /kwh) 0,0077 0,0223 0,0160 amount of loan and own Pipeline investment costs ( ) , , ,12 founds are represented in Bore hole investment costs ( ) Loan ( ) Own founds ( ) , , , , , , , , ,66 Table 7 and Table 6. Results show that in both scenarios increase in current heat energy prices is unavoidable and varies between 77% for the minimal equipment costs in Scenario 1 to up to 366 % for the maximal equipment costs in Scenario 2. As mentioned in Project 1 even if the prices were increased by 366% they would still be below average heating prices in Croatia so from that point of view this project could also potentially be cost effective. Table 6 Results from Scenario 2 Scenario 2 Min Max Average Households energy prices ( /kwh) 0,0078 0,0240 0,0167 Business energy prices ( /kwh) 0,0104 0,0267 0,0193 Pipeline investment costs ( ) , , ,12 Bore hole investment costs ( ) , , ,42 Loan ( ) , , ,32 Own founds ( ) , , ,23 Business model of project 2 Key Partnerships Local DH system Municipality of Topusko Key Resources Geothermal borehole TEB-5 Grant funding Knowledge Key Activities Drilling of new geothermal borehole TEB-5 Extension of DH network into the new neighbourhood Value Proposition Cheap geothermal energy; Increase of market share; Increased energy security Reliable supply. Channels Word of mouth or direct contact Conduct case studies Telephone service City s webpage Customer Relationships Heat with Trust Customer segments Single family houses Commercial houses Public buildings Industrial facilities Cost structure Pipeline investment cost: Borehole Investment cost: Revenue Streams Capacity fees Sale of heat Investment grants Bank loans Costumer Segment About 250 small to medium sized residential houses covering some m 2, and some additional m 2 for industrial and commercial businesses. Value Proposition Utilization of cheap geothermal energy that could be offered to the new consumers in the southern part of the municipality. Because of the newly installed capacities, the overall DH system is more reliable and energy supply is secure.

10 Channels Since this is a small municipality with under 2000 inhabitant s communication should be organized with house owners on an individual bases where all the information could be shared and case studies presented. All the information should be available on the municipality s official website or through telephone service. Customer Relationship Since the proposed project covers the whole DH network different customers expect different relationships but all would benefit from the increased security of supply. Trust should be developed separately, commercial customers should be approached professionally while small building owners should be approached personally through small letters or flyers containing the description of the project. Revenue Streams Heating bills that include capacity fees and buying cheap heat from the geothermal utilities are main recurring income streams. Secondary revenue is through investment grants and bank loans for building and expanding the DH network. Key Resources Banks could be interested in offering a specific loan with reduced interest rate. There is also possibility that EU funds would be interested in such project because it offers utilization of carbon free heat production from the geothermal wells. The knowhow is another key resource that offers energy savings and implementation of optimal technology. Key Activities Drilling of the new geothermal borehole TEB-5 that would be connected to the DH station and expansion of the current DH network in to the new area. Key Partners DH system owned by the municipality of Topusko. Topusko would be the only investor since the DH system is 100% owned by the municipality. Cost Structure Investment costs in DH pipelines ranges from to and is capacity dependent. Investment costs for drilling the new borehole TEB 5 range from to and depend from the depth of the borehole. Project 3 According to recent studies thermal pollution of the river Glina in municipality of Topusko is unattended. It is believed that already used geothermal water from boreholes TEB-1, TEB-3 and TEB-4 with average temperature of about 45 C is, trough waste water hub, being released into the main canal, highlighted green in Figure 10. Geothermal water from the wells Livadski izvori with average output temperature of about 55 C is also, through purple canal, being released into the main sewage canal. There are also three side canals that contain relatively cold rain water from the nearby farming fields. The water from those canals is used for cooling the waste water in the main canal. It is questionable if the water from the side canals is cold enough to reduce waste water temperature to prescribed values of maximal temperature difference of 10 C between the released waste water and the river Glina, especially in winter months when the difference between those two is even greater than 25 C. In order to control the waste water temperature a case study that analyses implementation of HP with waste water from the boreholes as main heat source is being conducted. In this case study reduction of waste water temperature from 40 to 15 C is being analysed trough usage of HP s with double reduction cycle. In the first cycle temperature is being reduced from 40 to 25 C and in the second cycle from 25 to 15 C. Amount of heat power that could potentially be extracted by both cycles from all three boreholes sums up to about 8000 kw. If all the available heat from the used water is being extracted, three HP s attached to all three boreholes are being needed. Two smaller ones, that are connected to the TEB-1 and TEB-3 with heat output of 1,3

11 Prices ( /kwh) Figure 10 Waste water canals in Topusko MW, and one larger, that is connected to the TEB-4 with heat output of 7,8 MW, are being analysed. All three HP s, according to Bohdan Soroka s Application Note - Industrial Heat Pumps have minimal COP factor of 3,2. Techno economic data for the two types of HP s are shown in the Table 10. Analysed case study consists of two scenarios that have different models for electricity prices. In Scenario 1 impact of electricity prices from newly opened cheap electricity market CROPE, which is expected to operate in similar price range as HUPE and SouthPool from neighbouring countries like Hungary and Slovenia, is being analysed while in Scenario 2 impact of electricity prices from HEP s (Croatian electric power industry) double tariff model for business is being analysed. Electricity prices for both Table 9 Electricity prices used in analysed scenarios Scenario 1 Scenario 2 Min Max Min Max Aver Price ( /kwh) 0,101 0,186 0,005 0,145 0,041 that according to the electricity prices from Scenario 2 minimal price for heat energy should be at least 0,0583 /kwh and 0,0273 /kwh according to electricity prices from Scenario 1. Diagram in the Figure 11 shows comparison of prices from the analysed two scenarios, highlighted in orange and blue, with the heat energy prices from other Croatian cities, highlighted in yellow and purple, which also have DH. Even in the worst case scenario prices of heat 0,070 0,060 0,050 0,040 0,030 0,020 0,010 0,000 0,024 Residental sector Industrial and commercial 0,045 0,021 0,045 0,045 0,041 0,039 scenarios are shown in Table 9. Techno-economic and ecological results from the analysed scenarios that include PBP (payback period), investment costs, minimal heat energy price and CO 2 emissions are shown in Table 10. Results show Figure 11 Heat energy prices from other Croatian cities and analysed scenarios 0,064 Sisak Osijek Zagreb Slavonski brod Table 8 Results from analysed scenarios Results Scenario 1 Scenario 2 HP investment costs ( ) PBP (years) 15,8 15,8 Heat energy price ( /kwh) 0,0273 0,0583 CO 2 emissions (t) 2,718 2,718 Table 10 Techno economic data for both types of HP HP type HP >1 MW HP >4 MW Heat output (MW H ) Heat input (MW H ) 1 6 Electricity (WM E ) COP 3,2 3,2 Temperature regime ( C) 60/40 60/25 60/40 60/25 Specific price ( /kw H ) Energy prices in croatian cities 0,056 0,063 0,066 0,050 0,049 0,049 0,058 0,027 Virovitica Karlovac Rijeka Varaždin Topusko S1 0,058 Topusko S2

12 energy for industrial and commercial sectors could still be attractive for the business owners. If the analysed HP would buy electricity from the electricity market as shown in Scenario 2 price of heat energy for industrial and commercial sectors would still be the cheapest from all of the mentioned cities. If local government also offered subsidies trough reduced local rate for the industrial area, highlighted blue in Figure 10, new business owners could be lurked to the municipality. That could potentially increase standard of local population through new job opportunities. Business model of project 3 Key Partnerships Local DH system Municipality of Topusko Key Resources Waste heat HP s Grant funding Knowledge Key Activities Reduction of waste water temperature to environmentally prescribed values Installation of HP Value Proposition Cheap geothermal energy; Increase of market share; Increased energy security Reliable supply. Channels Word of mouth or direct contact Conduct case studies Telephone service City s webpage Customer Relationships Heat with Trust Customer segments Industrial facilities Public buildings Cost structure HP investment cost: Revenue Streams Capacity fees Sale of heat Investment grants Bank loans Costumer Segment Mostly new costumers that are interested in investing in industrial facilities. About 8MW of heat power are available that could also potentially be used for space heating in public buildings Value Proposition Production of heat from renewable energy sources through implementation of HP s that could be offered to the new consumers in the industrial part of the municipality. Because of the newly installed capacities, the overall DH system is more reliable and energy supply is secure. Channels All the information should be available on the municipality s official website or through telephone service. Potential investors should be lurked to the municipality and approached individually through offering of subsidies for the first couple of years. Customer Relationship Since the proposed project covers the whole DH network different customers expect different relationships but all would benefit from the increased security of supply. Trust with potential consumers should be developed so that customers from the industrial sector should be approached professionally. Revenue Streams Heating bills that include capacity fees and buying heat from the HP s are main recurring income streams. Secondary revenue is through investment grants and bank loans for building and expanding the DH network.

13 Key Resources Banks could be interested in offering a specific loan with reduced interest rate. There is also possibility that EU funds would be interested in such project because it offers utilization of low carbon heat if electricity needed for powering the HP s comes from renewable sources, and offers reduction of waste water temperature. The knowhow is another key resource that offers energy savings and implementation of optimal technology. Key Activities Reduction of waste water temperature to the prescribed values that don t endanger river biology and installation of double reduction HP s for heat production. Key Partners DH system owned by the municipality of Topusko. Topusko would be the only investor since the DH system is 100% owned by the municipality. Cost Structure Investment costs in HP amounts up to Results of the stakeholder meeting Date December 16th 2014 Participants Tomislav Novosel, Vlado Muža The meeting related to the WP3 activities within the STRATEGO project was organized on the 16th of December at the offices of the County of Topusko. One member of UNIZG FSB and a representative of the County of Topusko have attended the meeting. Main focus of the meeting: Demonstrate the goals of the project; Current and future work; Mapping methodology and possible implementation; Assistance in the data gathering. Input into the local heating and cooling plan The primary interest of the representatives of the county of Topusko as well as the local district heating plant operators are the expansion of the existing grid in order to increase the revenue provided by the operation of the plant and with that enable additional projects and investments.