Modernization of District Heat Supply Systems of Vilnius and Kaunas

Modernization of District Heat Supply
Systems of Vilnius and Kaunas
Ignas Degutis
Head of finance unit
2015 09 29, Vilnius
Lietuvos energija Group
Power and heat
generation and
supply
Maintenance and
development of
the energy sector
Natural gas
trade and
distribution
ELECTRICITY, HEAT
PRODUCTION
ELECTRIC POWER TRADE
AND DISTRIBUTION
H1 2015
EMPLOYEES
NATURAL GAS TRADE
AND DISTRIBUTION
5552
MAINTENANCE OF
POWER PLANTS AND GRID
32,1
6%
€973
MILLION
GROUP REVENUE (2014)
EBITDA 217 m EUR
IN H1 2015
1.6 million
560 thousand
27,2
5%
159,8
29%
GROUP REVENUE
H1 OF 2015
153,9
28%
CONSUMERS
€548,3
MILLION
159,7
29%
Distribution of electricity
Gas sales and distribution
Produced electricity sales, trade and supply
PIMS of LEG
Connection of new customers
Balancing, regulation and power reserve
Heat energy
Other revenue
 LIETUVOS ENERGIJA IS ONE OF THE TOP 5
LARGEST COMPANIES BY THE SALES
REVENUES IN LITHUANIA
 LIETUVOS ENERGIJA IS THE 206TH LARGEST
COMPANY IN CENTRAL EUROPE (DELOITTE
2015).
The Structure of Lithuania‘s Energy Sector after EU 3th
Energy Package Implementation
Grid
maintenance
Real estate and
transport
Projects of modernization of
district heat supply systems of
Vilnius and Kaunas
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
Today’s NordPool Spot – Electricity market
Municipal waste treatment in the European Union countries
700
 Municipal waste
collected in Lithuania–
1.280.049 t;
 Incinerated – 7% (EU–
26%);
 Recycled – 21%
(forecast in 2016 –45%;
ES–28%);
400
300
200
100
0
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
 Kilograms per capita –
433 kg (EU–481 kg);
500
kg per capita 2012
 Landfilled – 64%
(forecast in 2016 –55%;
EU–31%);
600
Composted
Kita
Other Kompostuojama
8
Perdirbama
Recycled
Deginama
Incinerated
Sąvartynuose
Landfills
Waste management hierarchy
Up to 2016
9
20162018
From 2018
New
plants
NewCHP
CHP’s
in theinLargest Lithuanian Cities
Vilnius and Kaunas
Kaunas:
•
•
•
•
•
Population
District heating
Annual heat demand
Municipal waste (RDF)
Landfilling
Vilnius:
•
•
•
•
•
Population
District heating
Annual heat demand
Municipal waste (RDF)
Landfilling
•
•
•
542.664
90%
2,5 TWh
~145.000 t/yr.
~85%
Competitive electricity from local and RES
Cheaper heat, energy efficiency
Contribution to the waste management
301.296
90%
1,2 TWh
~200.000 t/yr.
~95%
Fuel in district heating system in Lithuania
100%
11%
90%
18%
6%
6%
6%
6%
5%
7%
6%
4%
5%
6%
7%
8%
20%
24%
12%
Vilnius and Kaunas biomass
and waste cogeneration
80%
45%
70%
61%
68%
60%
73%
84%
50%
40%
82%
80%
78%
77%
74%
74%
82%
76%
80%
72%
80%
30%
48%
20%
33%
27%
10%
0%
2%
4%
5%
7%
2000
2001
2002
2003
10%
12%
14%
16%
2004
2005
2006
2007
Renewable energy sources
11
18%
19%
19%
2008
2009
2010
Natural gas
22%
2011
2012
Heavy fuel oil and other
2013
2015F
2020F
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%
Vilnius high efficiency CHP
power plant
MWe
MWt
~88
~227
~325 mEur
BioCHP installation
WtE CHP installation
(fluidised bed steam boilers)
(grate-fired steam boiler)
MWe
~70
MWt
~174
RDF consumption
Biomass consumption
MWe
~18
MWt
~53
~ 140 kt/y
~500 kt/y
49%
Kaunas high efficiency CHP
WtE power plant
MWe
MWt
24
70
~150 mEur
RDF
~ 200 kt/y
Vilnius CHP project
2016
2015
EIA and territory
planning activities
EIA
2017
2018
EIA approved
Territory planning
activities
Start of works at site
Construction of PP
Financing
Regulation
Procurements
Engineering, design and EPC
Commissi
oning
Staid Aid/ EU funding
Structuring finance
NHSDP
National heat development plan
Legal basis for regulation of activity
• EIA. 2015-09-02 Environmental Protection Agency approved Environmental Impact
assessment;
• EPC. 2015-05-08 announced EPC tender. Qualification assessment should be finished
2015-09, preliminary first proposals to be received end November, final – beginning
2016.
• EU grant. 2015-04-14 EU DG Competition registered UAB Vilniaus kogeneracinė
jėgainė pre-notification documents.
13
Kaunas CHP project
2015
Project concept selection
2016
2017
2018
Selection,
negotiation
Start of works at site
Procurements
Construction of PP
Commissi
oning
Staid Aid/ EU funding
Financing
Regulation
Engineering, design and EPC
Structuring finance
NHSDP
National heat development plan
Legal basis for regulation of activity
• Partner. 2015-05-20 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 2015-10.
• EU grant. 2015-09-22 EU DG Competition registered UAB Kauno kogeneracinė jėgainė
pre-notification documents.
14
Expected results
Electricity production, GWh
(share of TSO demand)
District heat production,
GWh
(share of total production)
Decrease of Heat
production price
CO2 reduction, tones/year
Primary energy savings
15
Vilnius high
efficiency CHP
installation
Kaunas high
efficiency CHP
installation
400 (3,7%)
175 (1,2%)
1.240 (48,9%)
500 (17%)
>20%
>20%
~ 230.000
~ 70.000
~40 %
~ 46%
Thank you!
Ignas Degutis
Head of finance unit
[email protected]