DISTRICT ENERGY IN CITIES A GLOBAL INITIATIVE TO UNLOCK THE POTENTIAL OF ENERGY EFFICIENCY AND RENEWABLE ENERGY

Similar documents
District Energy in Chile DISTRICT ENERGY IN CITIES A GLOBAL INITIATIVE TO UNLOCK THE POTENTIAL OF ENERGY EFFICIENCY AND RENEWABLE ENERGY

Policies directed towards heating systems

District Energy in Chile Unlocking investments in sustainable heating solutions to improve air quality SANTIAGO

District Heating and Integration of Wind Power in Denmark

Financing Sustainable Communities in Urban & Rural Environments

MEMO 27 June District heating and combined heat and power in China

Promote District Energy for a Sustainable City Transformation

Linking Renewable Energy Promotion Policies with International Carbon Trade. Gareth Phillips Chief Climate Change Officer

CWP.07.UA B U I L D I N G P A R T N E R S H I P S F O R E N E R G Y S E C U R I T Y

COGENERATION THE SMART DECISION! Why and how cogeneration can make your company more profitable and energy efficient?

Financial Mechanism for Renewable Energy

Republic of Belarus. Vladimir KOUZMITCH, Energy Engineering & Consulting Company ENECA

POLICY TOOLS FOR INCENTIVIZING PRIVATE INVESTMENT IN RET TO PROMOTE ENERGY ACCESS IN IMPOVERISHED RURAL AREAS

Smart and Flexible 100 % Renewable District Heating and Cooling Systems for European Cities

German Energy Efficiency Policy - Building Sector - Sub Group 3 Meeting; New Delhi

TURNING WOOD WASTE INTO CLEAN ENERGY

Government Fund for ESCO Business (ESCO Fund)

The economics of distributed generation. Zoltán LONTAY Energy expert

How to deliver a renewable energy project. Jemma Benson CO2Sense

UNECE Activities in Energy Efficiency in Buildings and Housing Sector

Updates on Measures for Renewable Energy Promotion In Thailand

Industrial Renewables. Funded on-site Energy Centres for Intensive Energy users

COMBINED HEAT AND POWER by KARA

CURRENT STATUS AND PROSPECTS OF RES USE FOR ENERGY PRODUCTION IN LITHUANIA

DALKIA ENERGY EFFICIENT SERVICES

BIOENERGY: STRATEGIES AND POLICY IMPLEMENTATION IN KENYA. By ERICK F. N. AKOTSI

How to Approach a Biomass Project

Slovenia Energy efficiency report

Martynas Nagevicius, President of Lithuanian RE confederation B U I L D I N G P A R T N E R S H I P S F O R E N E R G Y S E C U R I T Y

The experience in Bosnia and Herzegovina

Biomass Association Upper Austria

Introduction of POLIS UNIVERSITY & Co-PLAN Institute for Habitat Development and key policy issues in the electricity sector of ALBANIA

Overview of DH pricing and regulation in Europe

DHC in Finland. Aalto University, Energy Technology Katja Kurki-Suonio, Jan. 12, 2017

Renewable Energy Is it feasible in a distillery environment?

France renewable energy policies

BIOENERGY VILLAGES (BIOVILL) - INCREASING THE MARKET UPTAKE OF SUSTAINABLE BIOENERGY

Framework conditions on small district heating and cooling grids in Croatia and Ozalj

Export & import possibilities and fuel prices

DANISH POLICIES AND OUTLOOK FOR DISTRICT HEATING

Deliverable 3.a (Combining former deliverables 3.1; 3.2; 3.5)

Technological opportunities in a low carbon green economy. WORKSHOP 2012 De Euskadi a Río + 20

RES-H Support Framework in Germany and its Current Development

IEF-OFID Symposium. LAC Experiences on Access to Modern Energy. Daniel Hugo Bouille

Microgeneration. Prospects, Policy and Perspectives. Presenter: Adam Hawkes, Grantham Institute for Climate Change, Imperial College London

The European Market for Woody Biomass Supply and Demand Drivers and Trends

Renewable Energy in Sweden an Overview

Power market integration, focusing on the CHP switch to biomass and electric heating to replace fossil-fuelled heating

SCANDRIA Workshop February The current political obstacles towards the introduction of biogas for the road transport

APPENDIX B: ENERGY-EFFICIENCY PROJECTS WITH POLICY COMPONENTS

Impact, Compliance and Control of EPBD Legislation in Germany

UGANDA COUNTRY REPORT; ENERGY POLICY

Preparation of a pilot biogas CHP plant integrated with a wood-chip fired DHP system

Geothermal Hot Water Supply of Saburtalo District in Tbilisi, Georgia

District Energy in Cities: Unlocking the potential of Energy Efficiency and Renewable Energy Tim Farrell Senior Advisor

District Heating in Denmark

Combined Heat and Power & District Heating Networks. For the East Midlands

Applying cogeneration in a company

Joint Session of the ECE Timber Committee and

Small Scale CHP Using the Organic Rankine Cycle

Policy and Legislation for Facilitation of Energy Efficiency Enhancement and Renewable Energy Sources Use in the Republic of Belarus

Renewable district heating: best practices & challenges from Litomerice and Brasov Lukas Kranzl, Camelia Rata, Jaroslav Klusák

Political and legal background Tariff system Economic instruments Administrative procedure

Slovenia Energy efficiency report

4 March 2014 Grid-Connected Photovoltaic (PV) in Indonesia and Thailand Berlin, Germany

Country profile and actions in BiogasAction. Latvia

Renewable & Alternative Energy Resources: What s the difference? 2

Overview of the Bioenergy Policy Landscape: Current Status, Future

Credit line to support energy efficiency in Slovak municipalities

Energy Efficiency Advisory Panel Technical Session Community Energy Systems August 23, 2016

Country Action Plan-Proposed Outline

SCALING-UP RENEWABLE ENERGY PROGRAM (SREP) COUNTRY INVESTMENT PLAN KENYA

GET FiT Programme: Leveraging private investments in renewable energy. Bank aus Verantwortung

Heat decarbonisation. May 2017

Experience of DEDE s ESCO Fund in financing RE projects in Thailand

DER Status and Way Forward in Korea

Microgrids: Project Economics & Financing Strategies NESEA Building Energy 2014 March 6-8, 2014

Heat transmission In Copenhagen. Jan Elleriis Vice-Director Metropolitan Copenhagen Heating Transmission Company

A Case for Energy Diversification and Efficiency in Zambia

Development of biomass fuel in Austria as the dominant heating fuel. Dr. Horst Jauschnegg

Renewable and low carbon energy in new developments. Will Rivers The Energy Saving Trust

3. Prepare pre-feasibility studies for increased power generation at these mills, showing financial and economic viability;

WindEurope considers that repowered projects could be further provided with a clear path-to-market via:

GOVERNMENT POLICIES ON GREEN TECH: CURRENT & FUTURE

Kuittila Power Small Scale Biomass CHP

How to promote energy efficiency in DH sector in Poland. dr. Dariusz Gulczynski Polish District Heating Chamber of Commerce (IGCP)

Improving the energy efficiency of Welsh homes: A National Infrastructure Priority

Andrea PONTA, Energy Manager of IREN S.p.A.

Climate and Energy Concepts in Germany

ME 217: Energy, Environment & Society Fall Energy efficiency. Mechanical Engineering ME217 Energy, Environment & Society

Romania Systematic Country Diagnostic

RENEWABLE ENERGY POLICY OF BANGLADESH

NATIONAL POLICY FOR ENERGY EFFICIENCY AND RENEWABLE ENERGY SOURCES

Biomass Strategy for England s Northwest Summary Report 2010

INTEGRATION OF RENEWABLE ENERGY IN DANISH DISTRICT HEATING SYSTEMS. Birger Lauersen Manager International Affairs Danish District Heating Association

Report on Progress in the Promotion and Use of Energy from Renewable Sources (in accordance with Article 22 of Directive 2009/28/EC) Slovak Republic

Bioelectricity production and prospects for Africa. Dr Smail Khennas Senior energy and climate change expert

DISTRICT HEATING ASSESSMENT FOR ALEWIFE CAMBRIDGE

National Grid s Growth in Energy Efficiency. Bruce Johnson, Director of Energy Efficiency Implementation

Georgian Energy Development Fund, JSC. Overview 2014

Transcription:

Designing and enabling framework for district energy in Chile DISTRICT ENERGY IN CITIES A GLOBAL INITIATIVE TO UNLOCK THE POTENTIAL OF ENERGY EFFICIENCY AND RENEWABLE ENERGY Celia Martinez, Technical Expert, District Energy in Cities Initiative, UN Environment

SUPPORT THE DEVELOPMENT OF A CITY ENERGY MASTER PLANNING A city-wide mapping and energy master plan will help the city to: map pollution, waste heat, heat/energy-use (fuel type and consumption), building types, technologies used (individual woodstoves, community stoves with central heating, boilers) establish priority zones for DH development and develop zonal policies and define license areas Define a city-wide strategy developing scenarios of pollution growth and energy use and analyze which technology would deliver best results in terms of pollution/ghg reductions..

DEVELOP FINANCIAL MECHANISMS TO FACILITATE INVESTMENT Unlocking investment by: Facilitating project development (e.g through grants for feasibility studies and project commercialization). could be refunded through a revolving fund. Making priority buildings for DH efficient and ready for connection Analyzing the risks of the different elements of a DH project (construction, load, cogeneration electricity revenues) and setting up a tailored made soft loan and/or guarantees programme to meet the returns on investment expected by each investor type.

DESIGN A SUSTAINABLE POLICY FRAMEWORK A sustainable policy framework would allow to: Level the playing field against alternative technologies Promote renewable and efficient district energy that addresses air pollution and fuel poverty Pollution regulations Incentivize CHP plants (e.g explore the possibility of FiT, tax incentives) Protect individual consumers from volatile new fuel prices Definition of rights-of-way for DH networks Delegate authority to municipalities to enable them define franchise zones/license areas Regulate the sale of heat (standard contracts, customer protection, tariff structures) Strengthen ongoing national initiatives on improving the local biomass supply changes

PANELS Panel 1 :Tackling air pollution and addressing the needs of the residential sector Panel 2 :What financial instruments would help kick-start the first district energy networks? Panel 3 :How to encourage the development of CHP plants within the Chilean electricity market?

Chile GCF Concept Development DISTRICT ENERGY IN CITIES A GLOBAL INITIATIVE TO UNLOCK THE POTENTIAL OF ENERGY EFFICIENCY AND RENEWABLE ENERGY

FINANCIAL INSTRUMENTS FOR DH INVESTMENT Policy objectives Manage urban air pollution Deliver low cost heating Energy efficiency By promoting: Investment in DH/ CHP with: Renewable/ waste heat energy efficient technology lower heating costs Heat sales DH CHP Energy source Waste heat Biomass Geothermal.etc Heat sales volume Connection subsidies Heat take off guarantees Area concession/ bidding VAT (renewable, energy efficiency target) Consumer protection Heat tariffs Service standards/ licencing Demand side efficiency subsidies Electricity feed in tariffs Electricity sales Power purchase agreements Project development cost Pre-Feasibility studies Commercialisation Project capital costs Feasibility/ commercialisation subsidy Capital programmes for desirable technologies Import subsidies Operating costs Removing/ reducing carbon intense fuel subsidies

Chile District Heating Initiative DES Delivery (coordination)unit at National Level Regulatory framework and devolvement of authority of DES for municipalities City Support and Master Energy Planning Alignment of the Sustainable Heating Programme Project Development Costs Project Capital Costs National Level DES Delivery Unit Regulatory Framework Subsidy removal (level playing field) Licencing Electricity tariffs for CHP (FiT) Tax incentives (VAT & import) Devolve City Level Authority for DES Alignment with SHP City Support and Master Planning Project Development Costs Project Capital Costs Feasibility Commercialisatio n Connection Building Efficiency Guarantees Loans good DH examples (efficiency (CHP); renewable; cost effectiveness City Support and Master Planning Project Development Costs Project Capital Costs Feasibility Commercialisatio n Connection Building Efficiency Guarantees Loans good DH examples (efficiency (CHP); renewable; cost effectiveness City Support and Master Planning Project Development Costs Project Capital Costs Feasibility Commercialisatio n Connection Building Efficiency Guarantees Loans good DH examples (efficiency (CHP); renewable; cost effectiveness

FINANCIAL MODELS Financial Instruments Feasibility Commercialisation Connection and building efficiency -low income groups/ ESCO Master planning zonal targeting Building efficiency Loans Capital programme for good DH examples (efficiency (CHP); renewable; cost effectiveness) Guarantees Heat off take Tariffs Stabilisation for heat pumps Stabilization of wood chip prices Feed in Tariffs Electricity sales back to grid Tax incentives VAT for DH heat sales VAT/ import tax for strategic equipment

FINANCIAL INSTRUMENTS FOR INVESTMENT Financial Instruments Regulatory Framework Master planning zonal targeting Feasibility Commercialisation Connection and building efficiency -low income groups/ ESCO Building efficiency Loans Capital programme for good DH examples (efficiency (CHP); renewable; cost effectiveness) Guarantees Heat off take Tariffs Stabilisation for heat pumps Stabilization of wood chip prices Feed in Tariffs Electricity sales back to grid Tax incentives VAT for DH heat sales VAT/ import tax for strategic equipment National Level/DES Delivery Unit City Support and Master Planning Project Development Costs Project Capital Costs Project Capital Costs Project Capital Costs Regulatory Framework Regulatory Framework Regulatory Framework

GCF Model Arguing for Loans

FINANCIAL MODELS Example Categories Building use and consumption patterns Building/ block density Heating technologies (existing and planned) Energy sources Example: Temuco Pre-feasibility work A. High potential areas (3 to 4 year payback) High density buildings/ blocks Central heating systems (for easy connection) B. Medium potential areas (payback period?) Lower density buildings Mixed heating technologies (central heating & woodstoves) C. Low potential areas Low density Wood stoves

FINANCIAL MODELS Key High potential areas - Change in payback period - Change emissions per capita Medium potential areas Low potential areas