The success of Lithuanian DH sector : from imported fossil fuels to local biomass
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1 38 th Euroheat & Power Congress May 2017, Glasgow, United Kingdom The success of Lithuanian DH sector : from imported fossil fuels to local biomass Rimantas Germanas The Chairman of the Board Lithuanian District Heating Association Organised by
2 LITHUANIA Population: 3 mio Area: km² 2
3 Majority of Lithuanian population reside in apartments houses, which are the main DH consumers
4 The majority of Lithuanian population reside in apartments houses, which are the main DH consumers 4
5 Iceland 64% 61% 57% Latvia Denmark Lithuania Estonia Finland Sweden Poland Czech Rep. Slovakia Austria Romania Bulgaria Slovenia Germany Croatia France Italy Netharlands Switzerland UK Norway Percentage of citizens served by District Heating in Europe 100% 90% 92% 80% 70% 60% 54% 50% 48% 50% 40% 41% 38% 36% 30% 20% 10% 0% 21% 19% 17% 15% 12% 10% 7% 5% 5% 4% 1% 1%
6 TWh DH production balance in Lithuania ( ) 16 Heat deliverd to the DH network DH delivered to consumer 15 15, , ,24 8,89 11,30 10,19 8,25 7,54 10,70 10,63 10,44 10,30 8,16 8,24 8,31 8,14 10,11 10,39 9,67 9,60 8,13 8,55 7,96 7,95 9,27 7,75 9,80 8,17 8,80 9,01 9,01 7,29 7,52 7,51 8,57 9,07 8,28 6,99 6,83 7,
7 kg o.e./mwh Comparative fuel consumption of DH sector ( ) 103,0 101,70 101,0 99,0 97,0 95,0 100,19 100,20 100,07 99,60 99,30 99,10 98,30 98,70 98,99 97,70 97,60 93,0 91,0 89,0 87,0 94,38 93,61 92,12 91,20 89,60 85,
8 % DH transmission losses in networks (%) 35,00 32,30 30,00 25,00 26,50 23,70 22,50 21,40 21,00 20,00 19,60 17,50 17,30 16,70 15,70 15,70 16,60 16,10 15,75 16,40 16,10 15,20 15,00 10,00 5,00 0, Years
9 % RES and natural gas inputs for DH production in total fuel balance ( ) 90,0 80,0 70,0 60,0 50,0 40,0 30,0 20,0 10,0 0,0 68,5 52,5 44,1 59,1 38,1 80,1 72,0 75,5 82,3 83,6 81,7 79,6 77,6 77,0 73,7 74,4 73,1 68,2 61,0 47,0 48,6 36,1 33,4 27,3 27,2 22,7 17,2 18,7 17,7 19,3 19,3 22,4 17,0 9,7 7,25,6 10,0 12,0 14,0 16,2 4,6 4,0 5,0 4,2 4,4 4,1 5,4 4,6 1,23,0 2,01,5 2,0 2,0 2,7 2,8 0,8 2,2 2,5 0,6 1,3 0,8 0,8 0,8 2,1 2,0 1,5 3,4 1,2 1,7 1,7 1,8 1,7 1,9 1,01,6 0,6 2,0 1,02,0 33,4 61,3 64, (prog.) 80,0 Natural gas Fuil oil Biomass and municipal waste Other fuil 9
10 The use of biofuel for the production of heat in DH sector in Lithuania, 2011, 2016 and Fuel oil 2,7% Other fuel 1,8% Biofuel ~22,0% Natural gas 73,1% Other fuel 2,0% Fuil oil 0,2% Natural gas 33,5% Natural gas ~12,0% Fuel oil ~2,0% Other fuel ~1,5% Biomass and municipal waste 64,3% Biofuel and. mun. waste ~85,0%
11 January 2008 January 2009 January 2010 January 2011 January 2012 January 2013 January 2014 January 2015 January 2016 January 2017 January Eur/toe Natural gas (including transportation and capacity fee) and biomass price comparison in Lithuania Natural gas Biofuel
12 Development of Green DH supply in Lithuania The first biomass boiler of 6 MW heat capacity was build in 1988 in Birzai City. In 1994 there was constructed boiler of 4 MW heat capacity in Molėtai City. In 2006 Vilniaus energija invested into building a new 60 MW biofuel boiler at Vilnius CHP Plant No. 2, which at present remains the largest in Lithuania. The introduction of such largescale bio CHP Plant led to substantial improvement of biomass production, logistics and quality assurance infrastructure. This was an impulse to create a new industry branch biofuel production and supply.
13 Financial support funds ( ) for DH sector projects implementation in Lithuania Total allocated support was 141 mio. Eur incl. 127 mio Eur from EU Structural Funds EU SF: 67 mio. Eur for DH networks modernization 60 mio. Eur for biofuel based CHP and HOB 1 mio Eur for energy efficiency in DH generation sources 2 mio. Eur 11 mio. Eur 128 mio. Eur Lietuvos Lithuanian aplinkos Environmental apsaugos Investment investicijų Fund Program fondo programa ( ) ( ) Klimato Special Program kaitos ofspecialiosioji Climate Change programa ( ) lėšos ( )
14 The main advantages of biofuel vs natural gas use in DH Energy security contribution to the EU and the Lithuanian energy's strategic objectives to reduce the dependence on imported fossil fuels by ensuring the security of supply. Economic benefit Use of Lithuanian local resources saving financial resources of the country, as the price of biofuel is about 3 times smaller than natural gas (money paid for fuel remains within the country); taxes (especially for profit) will remain in municipal and state budgets % of the total forecasted biofuel price consists of funds that remain in Lithuania: Estimation of the part of biofuel price remaining in Lithuanian economy (assumption): Forecasted price of wood chips, depending on demand (based on 2025 costs level) 208 (EUR/t.o.e) Macroeconomical price (excluding the funds which are left in Lithuania): 38 (EUR/t.o.e) 14
15 The Average DH price
16 Greenhouse gas (CO2) emissions in DH Sector: 16
17 The largest potential of DH savings are managed by consumers Reduction of heat loss 1% DH production DH transmission DH consumption Reserve of heat loss reduction!!! 17
18 Vilnius City January, 2012 (District Heating) Outside temp. -19 C
19 THANK YOU FOR YOUR ATTENTION! For more information 19
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