Modernization of District Heat Supply Systems of Vilnius and Kaunas Ignas Degutis Head of finance unit

Transcription

1 Modernization of District Heat Supply Systems of Vilnius and Kaunas Ignas Degutis Head of finance unit , Vilnius

2 Lietuvos energija Group Power and heat generation and supply Maintenance and development of the energy sector Natural gas trade and distribution

3 H EMPLOYEES 5552 ELECTRICITY, HEAT PRODUCTION ELECTRIC POWER TRADE AND DISTRIBUTION NATURAL GAS TRADE AND DISTRIBUTION MAINTENANCE OF POWER PLANTS AND GRID 973 M I L L I O N GROUP REVENUE (2014) EBITDA 217 m EUR CONSUMERS IN H million 560 thousand 153,9 28% 32,1 6% 27,2 5% GROUP REVENUE H1 OF ,3 MILLION 159,7 29% 159,8 29% LIETUVOS ENERGIJA IS ONE OF THE TOP 5 LARGEST COMPANIES BY THE SALES REVENUES IN LITHUANIA LIETUVOS ENERGIJA IS THE 206 TH LARGEST COMPANY IN CENTRAL EUROPE (DELOITTE 2015). Distribution of electricity Produced electricity sales, trade and supply Connection of new customers Heat energy Gas sales and distribution PIMS of LEG Balancing, regulation and power reserve Other revenue

4 The Structure of Lithuania s Energy Sector after EU 3 th Energy Package Implementation Grid maintenance Real estate and transport

5 Projects of modernization of district heat supply systems of Vilnius and Kaunas

6 VILNIUS AND KAUNAS CHP PRJECTS Lithuania s Energy Sector Outlook One of the biggest importer of electricity among EU countries (~ 70 proc.); No local natural gas/coal/oil available; No financial incentives to use conventional fuel based cogeneration; I. Introduction Ineffective waste management, more than 70% of waste are landfilled; Existing power generation capacities are almost depreciated. Long term risk security of energy supply

7 Today s NordPool Spot Electricity market

8 Cyprus Malta Greece Lithuania Turkey Croatia Bulgaria Romania Spain Bosnia and Herzegovina Hungary Serbia Latvia Portugal Slovakia Ireland Italy Poland Czech Republic UK Iceland Finland EU Slovenia France Luxembourg Estonia Austria Denmark Norway Netherlands Belgium Germany Sweden Switzerland kg per capita 2012 Municipal waste treatment in the European Union countries Municipal waste collected in Lithuania t; Landfilled 64% (forecast in %; EU 31%); Kilograms per capita 433 kg (EU 481 kg); Incinerated 7% (EU 26%); Recycled 21% (forecast in %; ES 28%); Kita Other Kompostuojama Composted Perdirbama Recycled Incinerated Deginama Landfills Sąvartynuose 8

9 Waste management hierarchy Up to From

10 New CHP plants in New CHP s in the Largest Lithuanian Cities Vilnius and Kaunas Kaunas: Population District heating 90% Annual heat demand 1,2 TWh Municipal waste (RDF) ~ t/yr. Landfilling ~95% Vilnius: Population District heating 90% Annual heat demand 2,5 TWh Municipal waste (RDF) ~ t/yr. Landfilling ~85% Competitive electricity from local and RES Cheaper heat, energy efficiency Contribution to the waste management

11 Vilnius and Kaunas biomass and waste cogeneration Fuel in district heating system in Lithuania 100% 90% 18% 24% 20% 11% 6% 6% 6% 6% 5% 7% 6% 4% 5% 6% 7% 8% 12% 80% 70% 45% 60% 50% 82% 84% 82% 80% 78% 77% 74% 74% 73% 68% 61% 40% 80% 72% 76% 80% 30% 20% 10% 0% 48% 33% 27% 22% 10% 12% 14% 16% 18% 19% 19% 2% 4% 5% 7% F 2020F Renewable energy sources Natural gas Heavy fuel oil and other 11

12 CHP s projects at the glance Ministry of Energy Ministry of Finance Ministry of Finance 100% - control EU funds Vilnius Kaunas <164mEUR <69mEUR 100% 51% 49% Vilnius high efficiency CHP power plant MWe MWt ~88 ~227 ~325 meur Kaunas high efficiency CHP WtE power plant MWe MWt ~150 meur RDF ~ 200 kt/y BioCHP installation (fluidised bed steam boilers) MWe MWt ~70 ~174 RDF consumption Biomass consumption WtE CHP installation (grate-fired steam boiler) MWe MWt ~18 ~53 ~ 140 kt/y ~500 kt/y

13 Vilnius CHP project EIA and territory planning activities EIA EIA approved Territory planning activities Start of works at site Construction of PP Procurements Engineering, design and EPC Commissi oning Financing Staid Aid/ EU funding Structuring finance Regulation NHSDP National heat development plan Legal basis for regulation of activity EIA Environmental Protection Agency approved Environmental Impact assessment; EPC announced EPC tender. Qualification assessment should be finished , preliminary first proposals to be received end November, final beginning EU grant EU DG Competition registered UAB Vilniaus kogeneracinė jėgainė pre-notification documents. 13

14 Kaunas CHP project Project concept selection Selection, negotiation Start of works at site Construction of PP Procurements Engineering, design and EPC Commissi oning Financing Staid Aid/ EU funding Structuring finance Regulation NHSDP National heat development plan Legal basis for regulation of activity Partner selected partner Fortum signed cooperation agreement. EPCM. Project is expected to be implemented by procuring EPCM (engineering, procurement, construction and management) services. Preliminary procurement will be organized splitting plant contractors into 5-10 lots (EPC contracts). It is expected to start procurement procedures in EU grant EU DG Competition registered UAB Kauno kogeneracinė jėgainė pre-notification documents. 14

15 Expected results Electricity production, GWh (share of TSO demand) District heat production, GWh (share of total production) Decrease of Heat production price Vilnius high efficiency CHP installation Kaunas high efficiency CHP installation 400 (3,7%) 175 (1,2%) (48,9%) 500 (17%) >20% >20% CO 2 reduction, tones/year ~ ~ Primary energy savings ~40 % ~ 46% 15

16 Thank you! Ignas Degutis Head of finance unit