NNE5/2002/52: OPET CHP/DH
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1 WP 1 Development of CEEC DH systems Phase 1 - Company/Project Level Guidelines for screening of DH/CHP projects including Joint Implementation projects October 2003 European Commission (Directorate-General for Energy and Transport) Contract no. NNE5/2002/52: OPET CHP/DH Cluster
2 TITLE Author(s): Tomáš Avramov Organisation: Energy Centre eské Budjovice Address: Nám. Pemysla Otakara II. 87/25, eské Budjovice, CZ Tel.: Fax: eccb@eccb.cz 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 1. Introduction This company level report is divided into two parts. We give in first part some information that can lead to better knowledge of the situation CHP/DH sector here in Czech Republic. This information can be considered as answers to questions from guidelines of the project. The second part gives a report about a specific project of CHP plant in Trhove Sviny in South Bohemia. European Commission (Directorate-General for Energy and Transport) Contract no. NNE5/2002/52: OPET CHP/DH Cluster
4 2. Initial screening ofdh/chp project possibilities 2.1. DH boilers The fuel used in boilers in CR is gas, biomass and biogas. A typical priority for an investment is the conversion of gas central boilers into co-generation boilers, especially from the point of view of lowest costs. The efficiency of improved boilers could grow up of 20-30%. To avoid barriers for making boiler changes, it is important to set up the plan of economic returnability, while keeping contemporary appliances (instead of changing boilers for new ones). For the conversion of boilers into CHP units, to have a long-term guarantee, it is necessary to have approved the law of purchase of electricity from CHP units. Other solution is to set environmental taxes for purchase from traditional sources. 2.2 DH Network refurbishment As for DH Network projects, it is preferable to have projects of renovation. One of the conditions of projects realization is to solve the question of ownership of grounds - there is a tendency to build individual family houses with their own gas boilers, that is not suitable for DH because of large dispersion of settlings. 2.3 Consumer Installations The consumer installations are owned by organizations of heat management, by housing associations or renters associations. Consumer installations are maintained by heat management associations (or by heating plants associations main distribution frames). The heat supply comes from supplier (Heat management association) to the gauge point of the house, where the heat is distributed in the house through exchangers. 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.
5 What is the share of flats that receive bills based on measurement of consumption (rather than per m2 or m3)? At present time there is valid a costs account regulation (372/2001 Sb) of Ministry for local development, that establishes rules for costs calculation of heat energy for heating and of hot water supply among consumers. It is divided in a principal constituent (40-50%) based on square meters and the rest that is consumer constituent (mainly the meter subtract). It is valid for all consumers. What is the share of non-payment in the system? If the question is about the losses in the distribution system, then the payment of losses in a house itself is shared by leaseholders and as for the losses from main pipelines, distributor (heating association) calculates them into the price of energy (GJ). European Commission (Directorate-General for Energy and Transport) Contract no. NNE5/2002/52: OPET CHP/DH Cluster
6 3. Project The following project of CHP plant in Trhove Sviny is very unique as for our country, because it does not exist here yet. It is not so common even in European context. The company Tepelna energetika s.r.o. is very progressive and it tries to make the way for new and modern energy technologies by its own example. Trhove Sviny is little town in South Bohemia (about 5000 inhabitants) situated 20 km from Austrian borders in nice, hilly landscape. There was, as in most of such towns in Czech Republic, a district heating based on energy generated from coal. There was a small heating plant with four boilers (4x2500 kw), type Slatina, in very bad, inefficient condition. In 1994 two of the boilers were taken away, two were stopped and replaced with two new gas boilers (2x3000 kw), type Slatina. In 1999 two remaining coal boilers were replaced with one boiler for biomass (2500 kw), type Kohlbach. In 2000 two CHP units were installed, the used fuel is gas and they produce 2x22 kw of power and 2x40 kw of heat, however the electricity is used only for the company itself. Nowadays, the company supplies with heat all the buildings belonging to the municipality (five schools, three clinics, town offices, sport hall, culture house etc.) and 400 apartments. The company is Ltd. and it is owned by the municipality (100%) the company develops the project of large CHP production based on biomass energy. Positive consequences of the project: - promotion of the use of modern technologies among experts and public - practical display of ORC system advantages in comparison to steam system will help to increase the number of possibilities for more such realisations - first realisation of ORC system made according to experiences of established producers (Kohlbach, Turboden) will set a standard for other projects as for emission limits, efficiency and safety of operation - a functioning realisation will help to convince doubting investors about promising value of power from biomass - this project will help to decrease the market price of initial investment in order to make such a project more affordable to other investors and 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.
7 also it can help to convince Czech producers to produce such system in Czech Republic, which would be much cheaper and accessible Other advantages of the project: - it will be used permanently whole year - fuel conversion into biomass - it is DH company with heating network in the city - company has managed to have in future the supply of fuel for many years and for very good price - company is owned by the town - company has already proved during the first period (first boiler Kohlbach) the ability of financing and operating of the project. The new present project was already previewed during a first phase, so its costs will be lower - there is already build up a technical and constructional background (storage area, fuel supply engines, enough space, chimney with corresponding capacity, fuel transportation, heating pipelines network, experienced workers) European Commission (Directorate-General for Energy and Transport) Contract no. NNE5/2002/52: OPET CHP/DH Cluster
8 Emission issues: -emission measures at present time: Czech norm in mg/m3 (11% O2) company measures CO ,02 NOx ,76 SO ,50 solid subst CxHy 50 15,67 Emissions meet also much more strict Austrian norm (3x lower then Czech one) Describe the equipment and fuels used presently in the process, where you want to make the investment: Boiler Kohlbach (2500 kw) biomass Boilers Slatina VVV 2500 I (2910kW) gas Which technology and fuels will be introduced as a consequence of the investment? Second boiler Kohlbach (2800 kw) biomass CHP unit ORC MODUL (Turboden T 600) biomass There will be savings of EUR/year due to full conversion from gas to biomass. 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.
9 Estimated cost of project: 2,8 mil EUR Estimated project duration (meaning the time of realisation): 12 month Estimated lifetime of project (years): 20 years Fuel issues What is the price of the fuels used now and in future (if project intends to switch fuels)? Gas: 0,27 EUR/m3 (without tax) Wood residue: 3,33 EUR/space meter (without tax) Mention any additional benefits that may arise from the project (for instance lower emissions of particles) The heating plant will be conversed into CHP plant using RES. The emissions will be lower due to full conversion of plant from gas to biomass Please mention additional activities that could be carried out at little extra costs that you consider relevant for the project (for instance energy saving activities at consumer side) Possible renovation of the pipelines network. 3.4 Market & consumer issues Installed heat capacity 2800 kw Heat sold GJ in GJ in GJ in GJ in GJ in 2003 Heat produced GJ in GJ in GJ in GJ in GJ in 2003 European Commission (Directorate-General for Energy and Transport) Contract no. NNE5/2002/52: OPET CHP/DH Cluster
10 Please give a short description of the competition in the heat market (market share of DH, identify competition - describe the situation in your own words) Main rivals are gas companies (in South Bohemia it is South Bohemian Gas Company). For example, one big factory was disconnected last year and has converted to gas. Share of unpaid heat bills with consumers, and development in this share There are more less no unpaid heat bills in region of Trhove Sviny. Heat prices (in EUR/GJ) for: Housing blocks 10,10 EUR/GJ 12,30 EUR/GJ (with tax) in 2003 Industrial consumers 11,45 EUR/GJ 13,95 EUR/GJ (with tax) in 2003 Electricity sales: there was no sale yet, it will be 600 kw/h (0,08 EUR/kWh) Subsidies and special taxes Please indicate important types of subsidies and taxes. Please mention any legal obligation of the company towards consumers groups (maximum prices etc.) There is no special tax. As for subsidies, there was for the past project a subsidy from Czech Energy Agency (15%) and from Austrian Ministry of Environment (15%). For the next project there is already approved a subsidy from the State Found of Environment (50% grant, 30% free loan). 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.
11 3.5 Local planning, licences and permits Are there any restrictions or requirements that project must fulfil? None Does your company need approval/licence for starting a project? The company has a licence for the heat production. As for the electricity they have an agreement with the South bohemian Energy Company who will purchase the electricity from the company. The licence for the electricity production will be made after the realisation of project. If yes, what will the procedure be for getting approval? The fulfilled apply with many certification is sent to Energy Office that is authorized to approve it. How long time can project approval be expected to take? 1 6 months Do you believe that your proposed project will be influenced by local planning procedures in your region? More less in a positive way because the company is owned by the municipality. Please give additional information, if you think other issues are important As a consequence of the project will be realised an enlargement of heat distribution network of approx m. 3.6 Company issues Name of company Type of company (share, limited, public ownership) Tepelne hospodarstvi mesta Trhove Sviny s.r.o. Limited, owned by municipality If private shareholders, indicate % Are changes underway? (privatisation, major loans undertaken) (if yes, please write which) Description of commercial activities (heat, electricity..) sale of heat European Commission (Directorate-General for Energy and Transport) Contract no. NNE5/2002/52: OPET CHP/DH Cluster
12 Contact information Name of person responsible for submitting information Name Name and position Jiri Stojdl Managing director Company mailing details Company name Street address and number City code Name of city Country Tepelne hodpodarstvi Mesta Trhove Sviny s.r.o. Pekarenska Trhove Sviny Job description Area of responsibility of the person in question Personal contact details Telephone no. Fax. no. Personal or company Managing director fax: Name of person to be contacted in future concerning further discussions (if different from above) Name Company mailing details Job description Personal contact details Name and position Company name Street address Street number City code Area of responsibility of the person in question Telephone no. Fax. no. Personal or company Name of city Country 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.
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