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15.10.2010 1 Riga City Sustainable Energy Action Plan for 2010–2020 15.10.2010 Dr.sc.ing. Maija Rubīna, REA Director

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Page 1: Riga City Sustainable Energy Action Plan for 2010–2020Lighting in the city streets and parks There are 1,510 illuminated streets, parks, small public gardens and residential areas

15.10.2010 1

Riga City Sustainable Energy Action Plan for 2010–2020

15.10.2010

Dr.sc.ing. Maija Rub īna, REA Director

Page 2: Riga City Sustainable Energy Action Plan for 2010–2020Lighting in the city streets and parks There are 1,510 illuminated streets, parks, small public gardens and residential areas

15.10.2010 2

Objective of the new European energy policy:

"20-20-20" by 2020- commitments of Riga under the signed Covenant of

Mayors of European cities.

30.09.200810.02.2009

Page 3: Riga City Sustainable Energy Action Plan for 2010–2020Lighting in the city streets and parks There are 1,510 illuminated streets, parks, small public gardens and residential areas

15.10.2010 3

Energy efficiency legislation

◙ Directive 2002/91/EC of the European Parliament and of the Council of 16 December 2002 on the energy performance of buildings

◙ Directive 2004/8/EC of the European Parliament and of the Council of 11 February 2004 on the promotion of cogeneration based on a useful heat demand in the

internal energy market

◙ Directive 2006/32/EC of the European Parliament and of the Council of 5 April 2006on energy end-use efficiency and energy services

◙ Directive 2008/50/EC of the European Parliament and of the Council of 21 May 2008 on ambient air quality and cleaner air for Europe

◙ Directive 2009/28/EC of the European Parliament and of the Council on the promotion of the use of energy from renewable sourc es

◙ Law on the Energy Performance of Buildings (2.04.2008)

◙ Energy End-use Efficiency Law (17.02.2010)

◙ Draft law on renewable energy

Page 4: Riga City Sustainable Energy Action Plan for 2010–2020Lighting in the city streets and parks There are 1,510 illuminated streets, parks, small public gardens and residential areas

15.10.2010 4

Link between the Action Plan and the strategic planning documents of Riga

• Riga Development Programme 2006–2012(updated version of 2010)

• Riga Long-term Development Strategy until 2025(updated version of 2010)

The Action Plan is a detailed management tool for t he local government to fulfil the objectives and tasks referred to in t he strategic planning documents of Riga.

Development of this Action Plan was envisaged by Pa ragraph 42 of the Investment Plan of 2010 of the Riga Development Pro gramme.

Page 5: Riga City Sustainable Energy Action Plan for 2010–2020Lighting in the city streets and parks There are 1,510 illuminated streets, parks, small public gardens and residential areas

15.10.2010 5

Outline of the Action Plan

◙ INITIAL REPORT ON CO2 EMISSIONS, CHOICE OF THE BASE LINE YEAR AND EMISSION PROJECTIONS UNTIL 2020

◙ MEASURES FOR REDUCTION OF ENERGY CONSUMPTION AND IMPROVEMENT OFENERGY EFFICIENCY

◙ USE OF RENEWABLE ENERGY SOURCES

◙ Management structures for implementation of the Act ion Plan

◙ Public involvement in implementation of the Action P lan

◙ Potential financial instruments and financial amoun ts for implementation of the Action Plan

◙ EU, national and municipal aid measures for impleme ntation of the Action Plan

◙ Legislative and regulatory documents required for i mplementation of the Action Plan

Page 6: Riga City Sustainable Energy Action Plan for 2010–2020Lighting in the city streets and parks There are 1,510 illuminated streets, parks, small public gardens and residential areas

15.10.2010 6

INITIAL REPORT ON CO2 EMISSIONS, CHOICE OF THE BASELINE YEAR AND EMISSION PROJECTIONS UNTIL 2020

Five-year intervals have been chosen to estimate CO2 e missions:

◙ current situation – as of 1990, 1995, 2000, 2005 (and 2008);◙ projections – for 2010, 2015 and 2020.

The year 1990 has been chosen for Riga as the basel ine or reference yearwhich matches the choice of the baseline year in most European cities.

To prepare a forecast for implementation of measures, the 3 following forecast scenarios have been chosen:

- minimum;- optimum;- maximum .

The minimum forecast scenario is assumed as the basis for commitment.

Ground: severe economic crisis in Latvia and the predictable, relatively slow economic recovery after the

crisis.

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15.10.2010 7

Balance of CO2 emissions for the period 1990–2020

47.922394295Maximum

46.323074295Optimum

44.723774295Minimum

Reduction against the base year,

%

Projected emissions for 2020,

thousands of t CO2

Actual emissions in 1990, thousands

of t CO2

Scenario

Commitments:

> 20 %

Implementation

forecast:

> 40 %

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15.10.2010 8

MEASURES FOR REDUCTION OF ENERGY CONSUMPTION AND IMPROVEMENT OF ENERGY EFFICIENCY

◙ Energy generation and transmission sector:- heating;- power supply;

- fuel consumption, including the decentralised heat ing sector.

◙ Energy consumption sector:- residential houses sector of the city;- public buildings sector of the city;- lighting in the city streets and parks;- city public transport.

◙ Urban planning measures for reduction of energy consum ption in the city The calculation of CO2 emissions does not take into account the energy consumption which is beyond the control and powers of the local government, for example, maritime and rail transport, all types of cargo transit, aviation services and use of agricultural and construction machinery.

Page 9: Riga City Sustainable Energy Action Plan for 2010–2020Lighting in the city streets and parks There are 1,510 illuminated streets, parks, small public gardens and residential areas

15.10.2010 9

Heating

thousands of MWh

Reduction of heat consumption against the level of 1996 – 40 %.

Page 10: Riga City Sustainable Energy Action Plan for 2010–2020Lighting in the city streets and parks There are 1,510 illuminated streets, parks, small public gardens and residential areas

15.10.2010 10

Power supplyGWh

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15.10.2010 11

Dynamics of power supply consumption

1 85

3.1

1 97

6.4

2 08

3.2

2 21

4.5

2 27

1.4

2 37

1.3

2 47

6.4

2 59

0.7

2 57

5.7

2 36

1.8

0.0

500.0

1 000.0

1 500.0

2 000.0

2 500.0

3 000.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

GWh

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15.10.2010 12

Dynamics of natural gas consumption

403455

483440 457 478 478 499 508

574612 621

584545

0

100

200

300

400

500

600

700

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

millions of nm³

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15.10.2010 13

Dynamics of natural gas consumption throughout the year

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15.10.2010 14

Energy efficiency measures for the heat production process

◙ Utilisation of flue-gas heat in the heat sources of Riga city

◙ Use of absorption heat pumps to increase energy eff iciency of a cogeneration unit

◙ Use of the trigeneration (production of electricity , heat and cooling energy) technology to increase energy efficiency

◙ Use of renewable energy sourcesBenefits from trigeneration – levelling of annual loads:

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15.10.2010 15

Residential houses sector of the city

Multi-apartment buildings in need of renovation –approx. 6000 with the total area of buildings amounting to 12 million m ² including:

- privatized municipal buildings – > 5000;- privatised apartment cooperative and public buildings – approx. 1000.

Renovation costs – LVL 40–60 per m ².

Funds necessary for renovation – LVL 615 million.

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15.10.2010 16

Page 17: Riga City Sustainable Energy Action Plan for 2010–2020Lighting in the city streets and parks There are 1,510 illuminated streets, parks, small public gardens and residential areas

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Energy efficiency level of the existing buildings

The average annual specific heat consumption is the following(according to the actual five-year consumption of buildings connected to the district

heating system):

1990 – 339 kWh/m²;

2006 – 231 kWh/m²;

2008 – 213 kWh/m² (reduced by 47 %).

The national energy efficiency strategy envisages th at:

in 2020 it will be reduced to 150 kWh/m².

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15.10.2010 18

12 buildings renovated by 2008

35 300.04Total:

2008869.0012. Ieriķu Street 44

20082051.0311. S. Eizenšteina Street 49

2004–20083992.1010. Lielvārdes Street 105 (cooperative "Bāka-2")

2004–20083948.179. Lielvārdes Street 103 (cooperative "Bāka-2")

2004–20083911.018. Lielvārdes Street 101 (cooperative "Bāka-2")

20082314.247. Kurzemes prospekts 4

20081684.336. Bebru Street 4

20082397.165. Kurzemes prospekts 14

20084136.904. D. Brantkalna Street 7

20073070.903. Mārcienas Street 3 (cooperative "Pavadonis")

20042969.302. Celmu Street 5

20013955.901. Ozolciema Street 46/3

Renovated inTotal area of apartments according to the heat supplier data

Address of the residential house

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15.10.2010 19

Houses renovated in Riga 2004–2008

Celmu Street 5Kurzemes prospekts 4

Kurzemes prospekts 14 and Bebru Street 4

Brantkalna Street 7

Ieriķu Street 44 (painted with the reflective paint TSM Ceramic )

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15.10.2010 20

It is possible to achieve a different result throug h house renovation:

Page 21: Riga City Sustainable Energy Action Plan for 2010–2020Lighting in the city streets and parks There are 1,510 illuminated streets, parks, small public gardens and residential areas

15.10.2010 21

Page 22: Riga City Sustainable Energy Action Plan for 2010–2020Lighting in the city streets and parks There are 1,510 illuminated streets, parks, small public gardens and residential areas

15.10.2010 22

Specific heat consumption (kWh/ m ²) of renovated houses to meet the heating needs within the last he ating

season

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15.10.2010 23

Standard solution for the internal heating system o f a multi-apartment house

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15.10.2010 24

Energy consumption structure of households

Source: presentation by SIA "MESA"

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15.10.2010 25

Temperature level maintenance in apartments

Page 26: Riga City Sustainable Energy Action Plan for 2010–2020Lighting in the city streets and parks There are 1,510 illuminated streets, parks, small public gardens and residential areas

15.10.2010 26Source: presentation by SIA "MESA"

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15.10.2010 27

Projected dynamics of multi-apartment house renovation

Intensity of renovation in Riga depends on how the Riga City Council will succeed in dealing with the basic issues – establish ment of a revolving fund and energy service companies (energy service compan y – ESCO, municipal energy service company – MESCO) and their involvemen t in house renovation!

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15.10.2010 28

House renovation activities in Riga 2009–2010

◙ In 2009, 2 houses of the apartment cooperative "B āka-2" were renovated.

◙ Also, additional 14 applications were submitted for funding from the Structural Funds. Out of those 14, contracts were concluded for 8 houses, 7 of which are still being reno vated or the renovation has been finished already.

◙ Insulation of the end walls of 20 multi-apartment ho uses managed by SIA “Juglas nami” has been carried out.

◙ More than 30 applications have been submitted to the Ministry of Economics for State aid to perform an energy audit, more than14 applications – to carry out a technical inspection , and more than 11 applications – to draft technical projects (the State aid resources have already been utilised).

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15.10.2010 29

Municipal public buildings sectorThe municipal public buildings sector comprises mor e than 400 buildings, 385 of which are connected to the district heating system that is pa id by the local government, and these buildings are structured according to their heated area:

The total area of these buildings amounts to 1.12 m illion m², including 138 buildings of pre-school educational establishments (PII) – 190,285 m² , 148 schools – 676,056 m², and

96 other buildings – 255,148 m².

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15.10.2010 30

Actual annual specific heat consumption of public buildingskWh/m²/a

Reduction: in PII – by 14 %; in schools – by 13 %; in o ther buildings – by 15 %.

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Energy efficiency improvement in the public buildin gs sector

◙ By 2008, windows and external doors were replaced in more than 200 educational establishments.

◙ An optimal temperature mode has been introduced – the temperature of heating and hot water is reduced during nights, weekends and holidays.

◙ In 2009 and 2010, 23 schools in Riga were renovated (costs –approx. LVL 4 million) by attracting funding of the Financial Instrument of Climate Change; also renovation of 6 PIIs was carried out.

◙ In 2010, the PII “Kastan ītis” was renovated by dismantling the coal-fired boiler house and constructing a heating system consisting of heat pumps with thermoprobes installed by deep drillin g (120 m) which was a demonstration object.

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15.10.2010 32

Educational establishments equipped with solid fuel heating systems

◙ It is planned to dismantle solid fuel boiler houses in educational establishments.◙ Also, it is planned to complete renovation of all municipal educational establishments by 2020.

Boiler using firewoodJaunciems 4th cross lineRiga Elementary School No. 78

Coal-fired boiler houseZvārdes Street 17Riga Pārdaugava pre-school educational establishment

7

Coal-fired boiler houseSkrindu Street 1O. Kalpaks Riga Applied Arts Elementary School

6

Coal-fired boiler houseMargrietas Street 4Riga Evening (Shift) Secondary School No. 14

5

Coal-fired boiler houseBišu Street 5Riga pre-school educational establishment No. 209

4

Coal-fired boiler houseStokholmas Street 3aRiga pre-school educational establishment No. 108

3

Coal-fired boiler houseBiešu Street 2Riga pre-school educational establishment No. 149

2

Coal-fired boiler houseVentspils Street 13aRiga pre-school educational establishment No. 132

1

NotesAddressName of establishmentNo.

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15.10.2010 33

Lighting in the city streets and parks◙ There are 1,510 illuminated streets, parks, small p ublic gardens and residential areas in Riga with the total length of lighting line s amounting to more than 1,700 km.

◙ Yet there are still 167 streets (95.79 km) or 10 % o f the total number of streets without lighting.

Dynamics of power consumption:

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15.10.2010 34

Energy efficiency measures for street lighting

◙ The city has completed the transition to the use of the technology of high pressure sodium bulbs.◙ One of the most recent lighting trends is light-emitt ing diode (LED) bulbs and lamps.

For comparison:

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15.10.2010 35

Energy efficiency measures for street lighting (2)

◙ The local government of Riga city together with the Riga Technical University (RTU) and other cooperation partners wor k on an international project dealing with the use of LED bulbs.

◙ It is planned to reduce voltage and lighting during night hours according to the following scheme:

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15.10.2010 36

City public transport

← Dynamics of the number of passengers carried by the city public transport

Proportion of passengers carried within the city transport network in breakdown by modes of transport in 2005:

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Dynamics of power consumption by the urban electric transport

84

68,8 72,9 68,8

0

10

20

30

40

50

60

70

80

90

1995 2000 2005 2008

The city has 253 trams, including 1 low-floor tram, and 9 tram routes.

The trolleybus service is ensured by 303 trolleybuses, including 214 low-floor trolleybuses, and 20 trolleybus routes.

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15.10.2010 38

Public road transport of the city

The city has 53 bus routes serviced by 478 buses incl uding 386 low-floor buses.

◙ Directive 2009/28/EC of the European Parliament and of the Council on the promotion of the use of energy from rene wable sources stipulates that by 2020 the use of biofuel must reach a share of at least 10 % in the transport sector;

◙ the Biofuel Law of the Republic of Latvia states th at by 31 December 2010 the share of biofuel shall increase to at least 5.75 % in the transport sector.

The bus fleet of Riga uses fuel from the fuel distrib ution network with a certain share of biofuel ensured by fuel distri butors.

Legal framework for biofuels:

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15.10.2010 39

Introduction of electric cars and hybrid cars in the city

Impact of electric cars on environment – in comparison:

◙ Development and implementation of a pilot project with 5 electric cars or hybrid cars

(+ LVL 7,000 to the costs of a standard car).

◙ Establishment of a network of charging stations for electric cars and hybrid cars in Riga city.

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Use of renewable energy sources

Key measures:

◙ use of biogas for energy production;

◙ energy production by incineration of solid household w aste;

◙ use of biomass for heat production;

◙ biomass production;

◙ use of heat pumps in the heat supply system of the city;

◙ possibilities of using geothermal energy in Riga city ;

◙ use of solar energy in the power supply system of the city;

◙ use of waste water heat for heat production by applyin g high-capacity heat pumps.

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15.10.2010 41

Biogas

Biogas cogeneration plants:

◙ at the waste water treatment plant “Daugavgr īva” (SIA “Rigens”) – 2.1 MW el.;

2.6 MWth;

◙ at the solid waste landfill SIA “Getli ņi EKO” – 5.3 MW el.; 6.8 MWth.

Amount of electricity produced and sold by SIA “Get liņi EKO”:

It is planned:

- to install an economiser of condensation of complex flue gases;

- to install special gas engines for using biogas with lower methane concentration.

Total increase in capacity – 1 MW.

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Use of solid household waste for energy production

Amount of solid household waste deposited in Getli ņi:

Breakdown of waste (data of 2002):

◙ 524,520 m³ or 47 % may be deposited;

◙ 446,400 m³ or 40 % may be incinerated;

◙ 55,800 m³ or 5 % are secondary raw materials;

◙ 89,280 m³ or 8 % are inert waste.

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Increase in use of biomass for energy production:

The use of woodchips is envisaged for: HP “Daugavgr īva”, HP “Ziepniekkalns”, HP “Vecm īlgr āvis”.

Current and projected consumption ofwood-chips for heat and electricity production

41 023 35 816 36 878 35 638

57 886

85 886 85 886

198 096

33 839

0

25 000

50 000

75 000

100 000

125 000

150 000

175 000

200 000

225 000

2004/2005

2005/2006

2006/2007

2007/2008

2008/2009

2009/2010

2010/2011

2011/2012

2012/2013

bulk m³

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Biomass production

SIA “R īgas meži” which owns 56,000 ha of forest territories inter alia expands their economic activity by introducing assortments of thin-dimension quick-growing osiers from which wood-chips are made. In Pictures – activities inthe forest district of Olaine.

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Use of heat pumps in the heat supply system of the c ity

◙ Installation of first heat pumps with thermoprobes installed by deep drilling inthe public buildings sector under urban conditions ( PII “Kastan ītis”) in 2010 – a demonstration project with the performance rate of > 3.2.

◙ Sharing the experience (500/1000/1500)until 2020.

◙ Development of a demonstration project involving air source heat pumps to evaluate their operation range.

Page 46: Riga City Sustainable Energy Action Plan for 2010–2020Lighting in the city streets and parks There are 1,510 illuminated streets, parks, small public gardens and residential areas

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Possibilities of usinggeothermal energy in Riga city

Map of the area of geological anomalies of Latvia:

Layout of isotherm surfaces of hot dry rocks (hot m inerals of the land's crystalline foundation rocks) with tempe rature of 100°C in Latvia at a depth of 2.75 km or less calculate d according to the sea level.

Page 47: Riga City Sustainable Energy Action Plan for 2010–2020Lighting in the city streets and parks There are 1,510 illuminated streets, parks, small public gardens and residential areas

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Scheme of the general principle of a cogeneration plant using hot dry rock energy:

Plant in Basel – 3 MWel.; 30 MWth. →

◙ Pilot project for development of a cogeneration plant using hot dry rock energy with capacity of 3–4 MW el. and 30–40 MWth. in Riga.

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Monthly global solar radiation values on a horizontal plane in Northern Europe

(kWh/m2):

The average calculated intensity of solar radiation in Latvia is 1109 kWh/m² per year.

0

50

100

150

200

250

Jan

Feb Mar Apr

May Ju

n Jul

Aug Sep OctDec

Berlin

Helsinki

Stockholm

Copenhagen

Riga

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• Solar collectors for hot water production:- with vacuum tubes;

- flat plate

for common work with the district heating system.

Introduction of renewable energy sources in the heat supply systems of houses

◙ Development of a demonstration project on the roof of a multi-apartment house (3 social houses with the hot water load of 16 MWh per month) for common work with the district heating system.

◙ Sharing the experience (30/200/500 houses).

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◙ Development of a demonstration project by installing solarbatteries (PV) on the roof of a municipal building equipped with an air conditioning system to produce electricity for inter-connected operation with the building's power supply system.

Solar batteries (PV) for production of electricity

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Scheme of management structures for implementation of the Action Plan

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Financial instruments for implementation of the Action Plan

◙ EU Structural Funds and Cohesion Funds (Ministry of Economics (MoE),

Investment and Development Agency of Latvia (LIAA));

◙ Support initiatives of EU Funds – JASPERS, JESSICA (not implemented in Latvia);

◙ Green investment schemes;

◙ Revolving fund;

◙ Third-party funding schemes:

- leasing;

- energy service companies (ESCO);

- a model for establishment of a municipal energy ser vice company

(MESCO);

- public and private partnership (PPP);

◙ National and municipal aid mechanisms;

◙ EU aid programme ELENA for preparation of measures.

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Financial instruments for implementation of the Action Plan (2)

Green Investment Schemes – (GIS) is a global international measure oriented towards reduction of greenhouse gas emissions by compensating emissions of these gases in one location with implementing certain measures for reduction of gas emissions in another location.

A revolving fund is a long-term financial instrument established for implementation of investment projects by ensuring funding for projects mainly in the form of a l oan (in some cases – in the form of a grant) with low to zero i nterest rates.

The funding is granted to projects with guaranteed retu rns (mainly for renovation of multi-apartment houses) an d not-too-distant crediting periods re-using the repaid amoun ts for crediting of next projects.

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Scheme of the general principle of a revolving fund

An example of establishing a revolving fund of LVL 30 million.

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Third-party funding schemes

Energy service companies (ESCO) – is a type of business which provides a wide range of energy-related services, including implementation of energy saving projects, provision of energy infrastructure outsourcing services, production and supply of energy, as well as risk management.

ESCO contributes to renovation of real estate properties which cannot be funded by the municipality. ESCO can be a company or a group of companies of any industry with free financial resources and possibilities to guarantee loans with low interest rates, as well as with an interest to operate in the field of energy efficiency.

A model for establishment of a municipal energy ser vice company (MESCO) is a company owned by the local government which is operating according to the ESCO principles and using both financial resources of the local government and other attracted funding, including from a revolving fund.

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Third-party funding schemes (2)

Public and private partnership (PPP) is public-private cooperation characterised by the following:

- the cooperation is ensured between one or several public partners and one or several private partners involved in the public and private partnership procedure to meet public needs when carrying out construction works or rendering services;

- it is a long-term cooperation which can last up to 30 years, or even longer, if the law prescribes so;

- the public and private partner pools and uses resources available to them (for example, property, financial resources, knowledge and expertise);

- responsibility and risks are shared between the public partner and privatepartner.

In Latvia, the public and private partnership is regulated by the Public–PrivatePartnerships Law which is in effect since 1 October 2009.

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EU aid programme ELENA

ELENA is the new programme of the EU within the fra mework of the second Intelligent Energy Europe (IEE II) programme , developed in 2009 to render technical and financial assistance to local governments which have signed the Covenant of Mayors of European cities (but not limited to that) in faster implementation of their investment programmes regarding improvement of energy efficiency and use of renewab le energy sources to meet the 20-20-20 commitments.

The programme ELENA covers 90 % of eligible expendit ure for preparation of a clearly defined, specific investment programme. The eligible expendi ture include all types of technical support measures required for the specific investment progr amme – feasibility and market studies, structuring of the programme, drafting of business plans, energy audits, preparation of procurement procedures and contracting, formation o f project implementation groups. Costs incurred by the newly recruited staff carrying out this work – actual salary, social security payments and other costs, also form a part of the e ligible expenditure. And also VAT is included in this expenditure, if it can be proved t hat the grant recipient cannot reclaim this tax. However, eligible expenditure excludes procurements of measurement equipment and computers or costs related to office premises.

An important provision of ELENA is a minimum levera ge factor of 25 meaning that the amount of the grant awarded is not larger than 1/25 of the agreed investments of the programme. If this leverage will not be obtained during the implementa tion of the programme, then the received grant will have to be recovered in part or in full. Implementation period of the programme – 3 years.

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Municipal aid measures for implementation of the Action Plan

◙ Annual funding ensured by the investment plan of th e municipal budget (as far as possible)

◙ Drafting of the binding regulations of the Riga Cit y Council envisaging the following aid measures for complex renovation o f multi-apartment houses:

- establishment and use of a revolving fund;

- establishment of a municipal energy service company (MESCO);

- provision of co-funding to conduct energy audits du ring the period when other sources of funding do not provide such c o-funding;

- land (property) tax allowances (reduction) for the renovated multi-apartment houses for a period set to repay the loan ;

- coverage of the co-funding payment of low-income re sidents from the social funds of the local government during the per iod, when owner of an apartment has acquired the status of a low-incom e person.

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Contact details:[email protected].: 26403004

Thank you for your attention!