National heating and cooling strategies the role of renewables

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1 National heating and cooling strategies the role of renewables Vidmantas Macevičius, Vice-minister of energy of the Republic of Lithuania

2 CURRENT SITUATION IN LITHUANIAN HEAT SECTOR Individual heat suply District heating participants 45% 49 DH suppliers supplies to the network 6058 GWh 55% 37 Independet heat producers supplies to the network 2508 GWh District heating 2

3 THE STRUCTURE OF PRIMARY FUELS FOR DISTRICT HEAT PRODUCTION IN other 18% biomass 2% n. gas 80% 3

4 DYNAMIC OF N.GAS AND BIOMASS PRICES, EUR/MWh 50,0 45,0 biomass n. gas 46Eur/MWh 40,0 35, ,0 >2,5 times 25,0 20,0 19 Eur/MWh 15,0 10,0 13 5,0 0,

5 BIOMASS USAGE IN DISTRICT HEATING:

6 FINANCIAL SUPPORT FOR DH SECTOR IN mil. EUR 2 mil. EUR EU 128 mil. EUR 6

7 BALTPOOL ENERGY EXCHANGE THE FIRST AND ONLY BIOMASS EXCHANGE IN EUROPE BRIEF HISTORY: 2010 Established operated Power Exchange in Lithuania (Nord Pool Spot trading platform was introduced) Energy Resource Exchange license obtained August in-house developed biomass trading platform launched July 200th member was registered in Biomass Exchange january 256 (70 b.+186 s) THE TARGETS ARE: to increase transparency of biomass sector to involve more market players into trading process an efficient stimulation of market competition to ensure efficiency of trading and settlement processes implement product and process standardization to increase sustainability of biomass sector a fair market price determination. THE MAIN TARGET OF BIOMASS EXCHANGE IS A TRANSPARENT, EFFICIENT, OPEN AND COMPETITIVE BIOMASS MARKET. 7

8 ENSURING TRANSPARENCY AND COMPETITIVE PRICES 8

9 COMPETITION LEVEL INCREASED SIGNIFICANTLY Low concentration in biomass supply side in biomass exchange (Y2015) Data: Energy Exchange Baltpool UAB 9

10 RENOVATION OF BUILDINGS Energy and CO2 savings Multi-apartment buildings Renovated till now 976 Renovating 1748 Planing to renovate 3658 Public buildings Renovated till now 912 Renovating now 30 Planing to renovate GWh and t CO2 350 GWh and t CO2 731 GWh and t CO2 182 GWh and t CO2 6 GWh and t CO2 60 GWh and t CO2 In total 1525 GWh t CO2 10

11 THE NATIONAL HEAT SECTOR DEVELOPMENT PROGRAM (1) IN 2021 Reduce the heat price and environmental pollution giving priority to local and renewable resources in a fuel balance in order to increase local competitive electricity output, promote high efficiency cogeneration reduce heat generation plants pollution and ensure the development of renewable energy sources usage to set the transparent district heating systems development planning and regulatory rules To reduced heat price by 20%. Renewable and (or) local energy resources part in district heating fuel balance 80 percent. 11

12 THE NATIONAL HEAT SECTOR DEVELOPMENT PROGRAM (2) IN 2021 Reduce transmission losses modernization of worn heat transmission networks, to ensure a reliable and highquality heat transfer Update 330 km network Reduce transmission losses up to 14 percent Promote trade in energy resource exchange To set the obligation for regulated energy companies to acquire solid biomass in Baltpool energy exchange Year % Year % Year % of total consumption. 12

13 NEXT PERSPECTIVES FOR BIOMASS m. EU funds for RES development 124 mln. EUR Fossil fuel-fired boiler modernization Promotion of high efficiency cogeneration in Vilnius Low-power cogeneration biofuel promotion 13

14 MODERNIZATION OF HEATING FACILITIES IN VILNIUS AND KAUNAS CITIES DISTRICT AREAS ENVIRONMENTAL AND ECONOMIC BENEFITS INCREASED EFFICIENCY Vilnius and Kaunas CHP project would reduce methane and CO2 emissions from landfills and district heating sectors - Vilnius and Kaunas CHPs Project would result in more than ~ tons of CO2 emission reduction annually Reduced landfill Decrease the prices of thermal energy production Vilnius and Kaunas CHP project would increase energy efficiency of using primary energy by ~ 40 % Increase the usage of local and renewable energy sources: STRENGTHENED LITHUANIA S ENERGY INDEPENDENCE Vilnius CHP Kaunas CHP MWe MWt MWe MWt Waste and biomass Waste 14

15 CONCLUSIONS: 15

16 SOCIO-ECONOMICS ASPECTS Stable and low price of biomass-lower price of heat for customers Increasing number of jobs (now more than 6500) Development of technologies Improved cooperation of science and business Rural development Improved foreign trade balance (export of technological equipment more than 50 mil Euro in 2015, expect 300 in 2020) Biomass consumption growing in industry (1300 GWh 30% of energy in 2015, expect 55% in 2020) 16

17 NATIONAL ENERGY STRATEGY DRAFT GUIDELINES IN DH 17

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19 THANK YOU FOR YOUR ATTENTION! 19