OPET CHP/DHC LIST OF RELEVANT MARKET ACTORS IN BIOMASS CHP/DHC SECTOR AND SUCCESSFUL CASE STUDIES IN SLOVENIA

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1 Project Title: OPET CHP/DHC Work Package 3 Conversion to Biomass CHP and District heating Deliverable No. 3.b. LIST OF RELEVANT MARKET ACTORS IN BIOMASS CHP/DHC SECTOR AND SUCCESSFUL CASE STUDIES IN SLOVENIA September 2003 European Commission (Directorate-General for Energy and Transport) Contract no. NNE5/2002/52: OPET CHP/DH Cluster

2 List of Relevant Market Actors in Biomass CHP/DHC Sector and Successful Case Studies in Slovenia Author(s): Evald Kranjčevič Organisation: Jozef Stefan Institute - Energy Efficiency Centre (EEC) Address: Jamova 39, SI-1000 Ljubljana, Slovenia Tel.: +386 (0) Fax: +386 (0) evald.kranjcevic@ijs.si Web: The project "OPET CHP/DH Cluster" has obtained financial support from the European Commission (Directorate-General for Energy and Transport) under the contract no. NNE5/2002/52 for Community Activities in the Field of the specific programme for RTD and demonstration on "Energy, Environment and Sustainable Development - Part B: Energy programme" The responsibility for the content on this publication lies solely with the authors. The content does not necessarily represent the opinion of the European Community and the Community is not responsible for any use that might be made of data appearing herein.

3 Contents 1. INTRODUCTION LIST OF MARKET ACTORS IN BIOMASS CHP/DHC SECTOR STATE ACTORS PARTY ACTORS ENVIRONMENTAL PROTECTION GROUPS ECONOMIC ACTORS DESCRIPTION OF SUCCESSFUL CASE STUDIES BIOGAS PLANT LETUŠ BIOGAS PLANT NEMŠČAK LANDFILL GAS BARJE LIST OF SOURCES OPET CHP/DHC Work Package 3 List of relevant market actors in Biomass CHP/DHC sector and Page 3 of 16

4 1. INTRODUCTION National policy related to biomass energy is a part of policy for renewable energy resources. The government sees renewable energy as one of the most important longterm sources of primary energy in Slovenia. In this document we would like to describe main actors in field of renewable energy sources especially biomass sector. Beside that, we present (Chapter 3) some recently developed biomass projects, which could be a good example for the future projects. OPET CHP/DHC Work Package 3 List of relevant market actors in Biomass CHP/DHC sector and Page 4 of 16

5 2. LIST OF MARKET ACTORS IN BIOMASS CHP/DHC SECTOR 2.1 State Actors The Ministry of Environment, Spatial Planning and Energy (Ministrstvo za okolje, prostor in energijo - MOP) responsible for energy in general. An Energy Office (headed by a State secretary) responsible for energy supply and demand actions, including preparation of policy instruments and measures. The Agency for Energy Efficiency (unit within the Ministry of Environment, Spatial Planning and Energy) responsible for the implementation of policy instruments. An Environmental Development Fund (established by MOP) responsible for environmental interventions (Soft loans) and implementation of some energy policy actions. The Agency for Efficient Use of Energy (Agencija za učinkovito rabo energije AURE) the Ministry's implementing office for an efficient use of energy and renewable energy use. AURE dispenses the funds allocated to renewable energy sources (RES) and Energy Efficiency actions by public tenders. It is also conducting awareness campaigns. Whereas AURE management prepares the annual budget and action programme, it does not have a broad mandate and general goals. The Minister takes decisions on each on an annual basis. 2.2 Party Actors The Committee for Infrastructure body within the Parliament responsible for energy matters. GLOBE Slovenia an organisation of the members of the Parliament (it is a member of Globe Europe and Globe International). GLOBE has organised several discussions, but GLOBE Slovenia has initiated no lawmaking motions in recent years. 2.3 Environmental protection Groups Slovenski E-Forum (SE-F) a society for energy economics and environment. It is a semi-professional NGO with individual (non-corporate) membership. Its activities address general energy and environmental issues (energy policies, energy efficiency, renewable energy sources, climate change, ). Project work includes climate change awareness programmes (primary and secondary schools). SE-F is a member of several international NGO networks. OPET CHP/DHC Work Package 3 List of relevant market actors in Biomass CHP/DHC sector and Page 5 of 16

6 Zveza društev za biomaso Slovenije (Society for Biomass of Slovenia) its activities are mainly in field of promotion of Biomass use. Slovenski nacionalni komite WEC (SNK-WEC; National committee of the World Energy Council) mostly represent supply side interests. Institutional members are mainly energy supply companies. In recent years ( ) SNK-WEC held several contracts for preparation of an extensive background document for the National Energy Programme. Elektrotehniška zveza Slovenije (ETZS; Professional society of electrical engineers) issues a professional journal and organises topical discussions on electric power sector issues. Zveza strojnih inženirjev Slovenije (ZSIS, Society of mechanical engineers of Slovenia) professional organisation of mechanical engineers. In 2001 and 2002 it held a contract to organise a broad technical (Internet based) discussion on the national energy programme (in preparation). Slovensko društvo za daljinsko energetiko (SDDE, Slovenian society for district heating) two sectors are most active: district heat supply and gas supply. Biomass based heat and CHP suppliers are also present. It holds a successful annual conference. Regular professional meetings, addressing also RES issues, are organised by the Slovensko društvo CIGRE / CIRED (Slovenian chapters of the international societies for transmission and distribution) and by the University of Maribor»Komunalna energetika/power engineering«. 2.4 Economic Actors Power sector companies Holding Slovenskih elektrarn (HSE, Power Plants holding company) Energy service and RES companies Engineering and architect-engineering companies have a full range of technical capabilities. However, they generally do not venture in complex project development. Commercial companies, in most cases single-project companies have completed small district heating systems based on biomass (wood). One company (ELTEC- Mulej, Bled) is established in the market as a developer and biomass district-heating operator. OPET CHP/DHC Work Package 3 List of relevant market actors in Biomass CHP/DHC sector and Page 6 of 16

7 2.4.3 Local energy supply companies Generally, municipalities establish heat supply companies as public service companies. This is an institutional barrier for a more active development of projects that may lie outside the immediate service area. Some municipality owned companies seek new biomass heating projects (e.g. Energetika Ljubljana). The recent privatisation of several municipal/industrial DH companies (e.g. Energetika Ravne now operated by the Slovenian Oil Company Petrol) has brought new actors to the (biomass) district energy market Industrial companies Paper and pulp factories, wood sawmills, wood-parts and furniture companies operate biomass heat and power plants of traditional design (backpressure and/or condensing steam turbines). In a few cases, this potential has been expanded to provide service to the nearby settlements (e.g. Železniki district heating scheme, expanded in 2002) Equipment manufacturers/suppliers There are few companies (e.g. INEA d.o.o., IMP d.d., ) that supply equipment for Cogeneration objects. These companies usually represent foreign manufacturers on Slovenian market Consultants and research Institutions Jožef Stefan Institute (IJS) a multi-department national institute of advanced research and technology. IJS provided some policy studies and background studies for RES support scheme (the feed-in-tariff), CO 2 tax and climate change mitigation strategies. IJS is the national contact point of several European networks, such as OPET (Organisation for promotion of energy technologies); jointly with the Faculty of mechanical engineering in Ljubljana and the Buildings Research centre (Inštitut za gradbeništvo) and ENER (European Network for Energy Economic Research) and interst groups, such as COGEN-Europe. Elektroinštitut»Milan Vidmar«(EIMV, Milan Vidmar electrical institute) consulting and research institute; traditionally the R&D base of the power sector. OPET CHP/DHC Work Package 3 List of relevant market actors in Biomass CHP/DHC sector and Page 7 of 16

8 Several small companies are active in renewable consulting, of which of the longest standing is the agency for Energy Restructing (ApE, a private company), now active in the following areas: wind, biomass, photovoltaics and local energy concepts. The less favourable situation for small-scale energy projects in the market has resulted in a relative weakening of existing consultant companies and an increase in a number of those seeking fortune in new areas. OPET CHP/DHC Work Package 3 List of relevant market actors in Biomass CHP/DHC sector and Page 8 of 16

9 3. DESCRIPTION OF SUCCESSFUL CASE STUDIES Recently, some new biomass installations have been built in Slovenia. Here is a description of three successful case studies: 3.1 Biogas Plant LETUŠ 1 Project Name Biogas Plant Letuš 2 Project Brief: 2.1 Location Letuš, Smartno ob Paki, Slovenia 2.2 Technology Concerned CHP 120 kw electricity power installation 2.3 Type of Financing Feed-in tariff The project was subsidised by the Agency for Efficient Use of Energy in the amount of 120 thousands Euro. Agricultural farm in Letuš (Family Anton Flere) has 10 ha land; on lease 20 ha land, 45 milk cow and 20 cattle (about 70 fullgrown livestock). 2.4 Executive Summary Biogas plant will use liquid manure of cattle and poultry, silage of corn, straw and household s food wastes. A combined heat and power system (CHP) (two gas motors- BHKW) has been installed in the biogas plant. Production of heat will be used for heating of houses (small district heating system) in winter, for drying of straw in summer and heating of greenhouse in autumn and spring. The produced electricity will be sold to the grid (electricity network). OPET CHP/DHC Work Package 3 List of relevant market actors in Biomass CHP/DHC sector and Page 9 of 16

10 3 Case Description Case Study Background Case Study Farmer Flere has been informed about the EU indicative about RES, the energy situation in Slovenia (high degree of energy dependence) and the protection of environment. He decided to install a biogas plant with CHP using animal and agricultural wastes as sources. Besides he wants to increase family income. The project started in 2001 and the official opening will be in September The biogas plant has 2 anaerobic ferments (digesters) using animal liquid manure, agricultural and food wastes The plant is connected to the electricity network. The heat production will be used for heating households. 2 Gas motors (BHKW): 30 kw and 75 kw electrical power Technical data Electrical efficiency: 30 % Heat efficiency: 45 % Fuel: biogas from animal wastes Costs The total investment was The investment cost includes biogas plant and mini district heating network. 5 Lessons Learned The heat and electricity production beside other agricultural activities will contribute to the economy of the farm. Use of mix of animal wastes, agricultural and food wastes improved the production of the gas plant and decreased the emission of GHG and protected water sources. 6 Key contact Mr. Anton Frele Owner Telephone: Address: Letuš, Smartno ob Paki, Slovenia OPET CHP/DHC Work Package 3 List of relevant market actors in Biomass CHP/DHC sector and Page 10 of 16

11 3.2 Biogas Plant NEMŠČAK 1 Project Name Biogas plant Nemščak 2 Project Brief: 2.1 Location Nemščak pig farm, Ižakovci, Slovenia 2.2 Technology Concerned 120 kw Biogas power plant installation 2.3 Type of Financing 2.4 Executive Summary Feed-in tariff Soft loan Eco-fund Agricultural farming Rakican has two pig-breeding farms: Nemscak in Izakovci and Jezero in Rakican. The total quantities of pig slurry from both farms are about 700 m 3 per day. The pig slurry from Jezero pig farm is transported to Nemscak farm by 2 cisterns. The reconstruction of the pre-treatment plant was considering an anaerobic digestion technology. The produced biogas will be used for heating the digester (ferment) and electricity production by gas motor. 3 Case Description Case Study Background The main problem is an ecological problem. The animal wastes are a source of greenhouse gases and water pollution. The solution of the ecological problems is to build a treatment plant to clean wastewater from pig farms to acceptable condition. The reconstruction of treatment of liquid pig manure took in consideration the use of anaerobic technology and production of biogas and electricity. The biogas was in operation in OPET CHP/DHC Work Package 3 List of relevant market actors in Biomass CHP/DHC sector and Page 11 of 16

12 The biogas plant from pig slurry was built with 2 anaerobic LEMNA ASBR reactors. Case Study The investment was supported by the ecological fund of the Republic of Slovenia (soft loan). The construction took in consideration the old buildings, too. Biogas power plant is in operation (production of electricity) in Lemna ASBR technology: Biogas production: 1500 m3/day Technical data Gas motors (BHKW): 120 kw electricity power Fuel: biogas from animal manure: 76% Methane The total investment cost was Costs The total investment includes the investment cost of treatment plant of the pig liquid manure and biogas plant (electricity production). 5 Lessons Learned Anaerobic digestion is a good solution in pig farms to reduce greenhouse gases, odour and water pollution. 6 Key contact Agricultural farming Rakičan Operator Contact person: Mr. Matjaz Duric Telephone: matjaz.duric@kg-rakican.si OPET CHP/DHC Work Package 3 List of relevant market actors in Biomass CHP/DHC sector and Page 12 of 16

13 3.3 Landfill gas BARJE 1 Project Name Landfill Gas Barje 2 Project Brief: 2.1 Location Ljubljana, Slovenia 2.2 Technology Concerned kw Landfill gas power installation 2.3 Type of Financing Feed-in tariff The main project goal is to reduce the ecological impact of landfill site or reduction of the emission of methane. The landfill site is under control of the public company Snaga. The landfill gas includes about 50 % of methane and has about 4,5 kwh/nm 3 and it is appropriate to be used for electricity production in gas motors. 2.4 Executive Summary The goal of the project is to install CHP system by gas motors beside other two gas motors with power capacity of 1240 kw, installed on the landfill site Barje. The area of landfill site (old and new) is about 50 ha and its depth is between 10 to 24 m. There are now 200 gas sounds installed to pump out the landfill gas. The power capacity of the new gas motor is 1040 kw and expected electricity production of 4 GWh per year. 3 Case Description OPET CHP/DHC Work Package 3 List of relevant market actors in Biomass CHP/DHC sector and Page 13 of 16

14 Case Study Background Case Study The landfill sites have to pump out landfill gas (methane) and fire it or use for energy purposes. On the landfill site of Ljubljana two gases motors with capacities of 2 x 620 kw have been installed and they are connected to the grid (electricity network). The total electricity production was more than 9 GWh per year. The installation of the third CHP-gas motor with power capacity of 1040 kw will increase the electricity sold to the public network for additional 4 GWh per year. The place of the plants is far from the urban part of city, because the use of heat is limited to heating the business building in the same place. The project has been carried out in September 2002 and finished in February The gas motor with power capacity of 1040 kw was installed in a standard box (container) like the other two. The container contains the gas motor, generator with adequate control panel. Gas motor Jenbacher Power capacity: 1048 kw Technical data Heat capacity: 629 kw Electrical efficiency : 39,9% Landfill gas: about 52 % Methane and 39 % CO 2 The total investment cost is about 1 million Euro. Costs The investment cost includes the investment costs of working out technical documentation, gas motor and generator, electrical installations and works. 5 Lessons Learned The energy exploitation of landfill gas is recommended. The environmental problems of methane emission can be changed in profit. The installation of a mobile (container) unit is a good solution. OPET CHP/DHC Work Package 3 List of relevant market actors in Biomass CHP/DHC sector and Page 14 of 16

15 6 Key contact Public Company SNAGA Contact person: Mitja Praznik Telephone: mitja.praznik@snaga.si OPET CHP/DHC Work Package 3 List of relevant market actors in Biomass CHP/DHC sector and Page 15 of 16

16 4. LIST OF SOURCES [1] Danyel Reiche (ed.) - Handbook of Renewable Energies in the European Union II; Peter Lang, 2003 [2] F- Al-Mansour: Project: Thematic Network on research and Technological Development on Combined Heat and Power CHAPNET; Cogeneration in Slovenia [3] Project: OPET RES-e Case Studies, Jožef Stefan Institute, Energy Efficiency Centre, 2003 OPET CHP/DHC Work Package 3 List of relevant market actors in Biomass CHP/DHC sector and Page 16 of 16