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Elaboration of Technical Project Concept of the fuel switch to biomass in Mionica including economic evaluation and recommendations for implementation structure of district heating grid Prepared for: Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Dag-Hammerskjöld Weg 1-5 Postfach/ P.O.Box 5180 65760 Eschborn prepared by: Marko Milošević 10 th November 2016

Elaboration of Technical Project Concept of the fuel switch to … · 2017-08-29 · Primary school "Milan Rakić" 3.600 522 10 Kneza Grbovića 29A Secondary school Mionica 1.550

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Page 1: Elaboration of Technical Project Concept of the fuel switch to … · 2017-08-29 · Primary school "Milan Rakić" 3.600 522 10 Kneza Grbovića 29A Secondary school Mionica 1.550

Elaboration of Technical Project Concept of the fuel switch to biomass in Mionica including economic evaluation and

recommendations for implementation structure of district heating grid

Prepared for:

Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH

Dag-Hammerskjöld Weg 1-5

Postfach/ P.O.Box 5180

65760 Eschborn

prepared by:

Marko Milošević

10th November 2016

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TABLE OF CONTENTS

1. EXECUTIVE SUMMARY ................................................................................................................ 9

2. INTRODUCTION .......................................................................................................................... 12

3. GENERAL INFORMATION .......................................................................................................... 14

3.1 MIONICA MUNICIPALITY ................................................................................................... 14

3.2 TOWN MIONICA ................................................................................................................. 16

4. EXISTING HEATING SYSTEM .................................................................................................... 20

5. BIOMASS MARKET ANALYSES .................................................................................................. 44

6. TECHNICAL DESIGN CONCEPT ................................................................................................ 50

6.1 TECHNICAL SOLUTIONS AND SIZING OF THE BOILER ................................................. 50

6.2 FUEL CONSUMPTION AND UNIT PRICE OF FUEL-ENERGY .......................................... 56

6.3 HEATING PLANT, LOCATION AND FACILITIES ............................................................... 57

6.4 CONCEPT OF DISTRICTS HEATING NETWORK ............................................................. 58

6.5 CONCEPT OF HEAT SUBSTATIONS ................................................................................ 70

7. PRELIMINARY COST ESTIMATES ............................................................................................. 73

7.1 PRELIMINARY COST ESTIMATES, SCENARIO 1 ............................................................. 74

7.2 PRELIMINARY COST ESTIMATES, SCENARIO 2 ............................................................ 75

7.3 PRELIMINARY COST ESTIMATES, SCENARIO 3 ............................................................ 76

8. PRELIMINARY FINANCIAL ANALYSIS ....................................................................................... 77

8.1 PRELIMINARY FINANCIAL ANALYSIS, SCENARIO 1 ...................................................... 77

8.2 PRELIMINARY FINANCIAL ANALYSIS, SCENARIO 2 ...................................................... 79

8.3 PRELIMINARY FINANCIAL ANALYSIS, SCENARIO 3 ...................................................... 80

9. PROJECT EVALUATION ............................................................................................................. 84

10. INSTITUTIONAL ANALYSES ...................................................................................................... 85

11. ENVIRONMENTAL IMPACTS ..................................................................................................... 87

12. ENERGY EFFICIENCY MEASURES AND CONCLUSION ......................................................... 90

13. APPENDIX .................................................................................................................................. 92

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List of tables Table 1 - The structure of the territory of Mionica municipality, (Source: Development

strategy of Mionica municipality, april 2008)………………………………………… 15 Table 2 - From 1961 to 2011 Population Census data (Source:

http://popis2011statrs/?page_id=2134)................................................................. 16 Table 3 - From 1961 to 2011 Population Census data for town Mionica (Source:

http://popis2011statrs/?page_id=2134)................................................................. 16 Table 4 - Basic information about the public buildings (Source: information provided by

municipality administration)…………………………………………………………… 18 Table 5 - Microclimate data (Source: RetScreen International & NASA Software, updated

2014)…………………………………………………………………………………….. 20 Table 6 - Data on heated buildings with a central boiler room……………………………….. 21 Table 7 - Data of facility and its parts on cadastral parcel 114/3…………………………….. 26 Table 8 - Data of facilities of primary and secondary school………………………..……….. 28 Table 9 - Data of facilities in health center “Mionica”………………………………………….. 30 Table 10 - Data of facilities kindergarten “Neven”………………………………………………. 32 Table 11 - Data of facilities at address “Mite Rakića 1,3”………………………………………. 33 Table 12 - Data of facilities at address “Vojvode Mišića 52, 54”………………………………. 35 Table 13 - Data of facilities at address “Dr Jove Aleksića 2, 4”……………………………….. 36 Table 14 - Overview of Data and consumption of facilities by phases……………………….. 38 Table 15 - Phase I current situation, Energy and fuel consumption, price , CO2 emission… 39 Table 16 - Phase II current situation, Energy and fuel consumption, price , CO2 emission.. 41 Table 17 - Energy and costs efficiency Indicators………………………………………………. 42 Table 18 - Requirements for wood chips according to ÖNORM M 7133…………………….. 43 Table 19 - The classification of wood chips based on the moisture content according to

ÖNORM M 7133……………………………………………………………………….. 43 Table 20 - Requirements for wood chips according to CEN/TS 14961:2005, Part 4……….. 44 Table 21 - Capacity data of forest farm “Boranja-Loznica”, public company “Srbije Šume”,

Source: http://wwwsrbijasumers/loznicahtml........................................................ 44 Table 22 - The energy potential of green chips from forestry, without wood waste from

sawmill industry, in the Nova Varos, Priboj and Prijepolje………………………… 46 Table 23 - The energy potential of biomass from forest farm “Boranja-Loznica”, Source:

own calculate…………………………………………………………………………… 46 Table 24 - Characteristics of wood chips depending on the type of primary wood………….. 46 Table 25 - Characteristics of energy crops Source: Possibilities of using biomass

originating from the fast-growing cane Miscanthus×giganteus…………………… 48 Table 26 - Unit price of wood chips depending on the type of quality wood…………………. 49 Table 27 - Comparative analysis of the cost of existing fuel and biomass…………………… 49 Table 28 - Data by connection

phases…………………………………………………………….. 52 Table 29 - Calculate capacity of heating plant…………………………………………………… 53 Table 30 - Calculation of power biomass boiler and heating plant……………………………. 55 Table 31 - Participation fuel by phases in produced energy…………………………………… 55 Table 32 - Calculation of unit price of fuel by phases…………………………………………… 56 Table 33 - Sizing the pipe network by routes……………………………………………………. 68 Table 34 - Calculation of operation point of network pump…………………………………….. 69

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Table 35 - Review substation facilities at Phase I………………………………………………. 71 Table 36 - Investment costs for scenario 1 (Source: Own calculations)……………………… 73 Table 37 - Operational costs for scenario 1 (Source: Own calculations)…………………….. 73 Table 38 - Investment costs for scenario 2 (Source: Own calculations)……………………… 74 Table 39 - Operational costs for scenario 2 (Source: Own calculations)…………………….. 74 Table 40 - Investment costs for scenario 3 (Source: Own calculations)……………………… 75 Table 41 - Operational costs for scenario 3 (Source: Own calculations)…………………….. 75 Table 42 - Costs of energy production, SCENARIO 1; (Source: Own Calculations)……….. 76 Table 43 - Costs of energy production, SCENARIO 2; (Source: Own Calculations)……….. 77 Table 44 - Planned of connecting facilities of Phase II, SCENARIO 3; (Source: Own

Calculations)…………………………………………………………………………… 78 Table 45 - Unit annual cost of heating in Mionica, year 2016………………………………… 80 Table 46 - Costs of energy production, SCENARIO 3; (Source: Own Calculations)………. 80 Table 47 - Unit cost heat energy (Source: Own calculations)………………………………… 82

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List of figures Figure 1 - Location of the Kolubara District in the territory of the Republic of Serbia,

(Source: https://srwikipediaorg/sr/Колубарски_управни_округ)......................... 14 Figure 2 - Municipalities belonging to the Kolubara district, (Source:

https://srwikipediaorg/sr/Колубарски_управни_округ)........................................ 14 Figure 3 - Energy consumption by fuel, Phase I – current situation…………………………. 39 Figure 4 - Emission CO2 by fuel, Phase I – current situation………………………………… 40 Figure 5 - Annual energy cost by fuel, Phase I – current situation…………………………… 40 Figure 6 - Unit price energy by fuel, Phase I – current situation……………………………… 41 Figure 7 - Forest’s area in the total area of municipalities (Source: Statistical yearbook of

Republic of Serbia 2012)……………………………………………………………… 45 Figure 8 - State and private forest’s by ratio by administrative districts (Source: Statistical

yearbook of Republic of Serbia 2012)………………………………………………. 45 Figure 9 - Annual energy cost by fuel, Phase I – comparison with biomass………………... 50 Figure 10 - Unit price energy by fuel, Phase I – comparison with biomass…………………... 50 Figure 11 - Diagram of the annual distribution of the heat capacity of the heating plant by

phases………………………………………………………………………………….. 53 Figure 12 - Situation plan of heating plant……………………………………………………….. 56 Figure 13 - Position of the drawings heating network…………………………………………… 59 Figure 14 - Drawing No1 of the heating network………………………………………………… 60 Figure 15 - Drawing No2 of the heating network………………………………………………… 61 Figure 16 - Drawing No3 of the heating network………………………………………………… 62 Figure 17 - Drawing No4 of the heating network………………………………………………… 63 Figure 18 - Drawing No5 of the heating network………………………………………………… 64 Figure 19 - Drawing No6 of the heating network………………………………………………… 65 Figure 20 - Drawing No7 of the heating network………………………………………………… 66 Figure 21 - Drawing No8 of the heating network………………………………………………… 67 Figure 22 - Scheme of compact substation DSA 1 Mini Danfoss, (Source: Website of the

company Danfoss) ……………………………………………………………………. 70 Figure 23 - Substation DSA 1 Mini Danfoss, Source: Website of the company Danfoss…… 71 Figure 24 - Substation DSP-MAXI Danfoss, Source: Website of the company Danfoss……. 71 Figure 25 - Diagram of the annual increase capacity of consumers…………………………... 79 Figure 26 - Planned production of energy in the period 2018 – 2037…………………………. 79 Figure 27 - Emission CO2 – Compare to fuel……………………………………………………. 87 Figure 28 - Comparative analysis of cost heat energy and saving, scenario 1………………. 91 Figure 29 - Return of investment, scenario 1…………………………………………………….. 92 Figure 30 - Comparative analysis of cost heat energy and saving, scenario 2………………. 93 Figure 31 - Return of investment, scenario 2 ……………………………………………………. 94 Figure 32 - Saving from fuel switch and earning from phase II, scenario 3…………………... 95 Figure 33 - Operational costs and depreciation, scenario 3……………………………………. 96 Figure 34 - Return of investment, scenario 3…………………………………………………….. 97

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List of pictures

Picture 1 - Municipal boiler room………………………………………………………………… 21 Picture 2 - Boilers model Vitoplex100 by Viessmann…………………………………………. 21 Picture 3 - Circulating pump on boiler…………………………………………………………… 22 Picture 4 - Individual circulation pumps on connections………………………………………. 22 Picture 5 - Residential building at „Kolubarske bitke 13“……………………………………… 22 Picture 6 - Supply pipeline for residential building at „Kolubarske bitke 13“………………… 23 Picture 7 - Supply pipeline for municipal buildings at „Živojina Mišića 28,30“ and police

station at „Živojina Mišića 26“……………………………………………………….. 23 Picture 8 - Main municipality building at „Vojvode Mišića 30“………………………………… 23 Picture 9 - The entry of hot water pipes to main municipality building Vojvode Mišića 30… 24 Picture 10 - Municipality building at „Vojvode Mišića 20“………………………………………. 24 Picture 11 - The entry of hot water pipes to municipality building at „Vojvode Mišića 28“….. 24 Picture 12 - Police station building at „Vojvode Mišića 26“…………………………………….. 25 Picture 13 - Tank capacity 40m3………………………………………………………………….. 25 Picture 14 - Part of building at address “Učitelja Čede Protića 5”……………………………... 26 Picture 15 - Electric boiler at “Učitelja Čede Protića 5”…………………………………………. 27 Picture 16 - Part of building at address “Učitelja Čede Protića 1 and 3”……………………… 27 Picture 17 - Part of building at address “Učitelja Čede Protića 7”……………………………... 27 Picture 18 - Building on parcel 114/3……………………………………………………………… 27 Picture 19 - Primary school “Milan Rakic”………………………………………………………… 28 Picture 20 - Primary school from schoolyard…………………………………………………….. 28 Picture 21 - Boiler room…………………………………………………………………………….. 28 Picture 22 - Secondary school from schoolyard…………………………………………………. 29 Picture 23 - Cast iron boiler “Radijator Zrenjanin” ………………………………………………. 29 Picture 24 - Steel boiler “Termomont”…………………………………………………………….. 29 Picture 25 - Old circulation pumps………………………………………………………………… 29 Picture 26 - Porch for storing coal…………………………………………………………………. 30 Picture 27 - Health center “Mionica”………………………………………………………………. 30 Picture 28 - Fuel oil boiler in Health center “Mionica”…………………………………………… 31 Picture 29 - Pumps in Health center “Mionica”…………………………………………………... 31 Picture 30 - Fuel tank in Health center “Mionica”………………………………………………... 31 Picture 31 - Electric boiler for fuel oil……………………………………………………………… 31 Picture 32 - Discarded boilers after reconstruction……………………………………………… 32 Picture 33 - Kindergarten “Neven”………………………………………………………………… 32 Picture 34 - Facilities at “Mite Rakića 1,3” from back side……………………………………… 33 Picture 35 - Facilities at “Mite Rakića 1,3” from street side…………………………………….. 33 Picture 36 - Rusty entrance to the boiler room…………………………………………………... 34 Picture 37 - Boiler room not in use………………………………………………………………… 34 Picture 38 - Entrance to the office of directorate………………………………………………… 34 Picture 39 - Electric boiler in office of directorate………………………………………………... 34 Picture 40 - Facilities at address “Vojvode Mišića 52, 54”……………………………………… 35 Picture 41 - Facilities at address “Vojvode Mišića 54”………………………………………….. 35 Picture 42 - Boiler at address “Vojvode Mišića 52”……………………………………………… 36

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Picture 43 - Cultural center Mionica………………………………………………………………. 36 Picture 44 - Theater hall under construction…………………………………………………….. 36 Picture 45 - Electric boiler for Cultural center and offices without theater hall………………. 37 Picture 46 - Building at “Dr. Jove Aleksića 2”……………………………………………………. 37 Picture 47 - Rhizome of Miscanthus………………………………………………………………. 47 Picture 48 - Plant of Miscanthus…………………………………………………………………… 47 Picture 49 - Miscanthus as a fuel, chips………………………………………………………….. 48 Picture 50 - Phase II, residential building with more apartments………………………………. 51 Picture 51 - Phase II, residential family houses………………………………………………….. 51 Picture 52 - Cadastral parcel 115/1 town Mionica……………………………………………….. 56 Picture 53 - Pre-insulated pipes for the district heating network (Source: Website of the

company Konvar doo Belgrade)…………………………………………………….. 58

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List of abbreviations

EUR - Euro (currency) CO2 - Carbon Monoxide

RS - Republic of Serbia CAPEX - Capital Expenditure OPEX - Operating Expenditure LUC - Leveled Unit Costs (F)IRR - (Financial) Internal Rate of Return (E)IRR - Economy Internal Rate of Return (F)NPV - (Financial) Net Present Value (E)NV - (Economy) Net Present Value

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1. EXECUTIVE SUMMARY

This study elaborated technical concept on the construction of a biomass boiler and construction

of heating grids. In this system are connecting buildings with public institutions and residential

and commercial buildings in Mionica. Public facilities have primary importance and their

connecting to the new heating grid are treated as Phase I..

Facilities that are connected in phase I and phase II are given in the review:

Ma

rk

Institution Address Building

Phase I Phase II

heated heated

area capacity area capacity

m2 kW m2 kW

1 Building of municipality Vojvode Mišića 30 2.248 364

2 Building of municipality Vojvode Mišića 28 432 54

3 Police station Vojvode Mišića 26 613 77

4 Residential building Kolubarske bitke 13 600 75

5 Public water and sanitary comp.

Učitelja Čede Protića 5 275 40

6 Residential building Učitelja Čede Protića 1 155 26

7 Office building Učitelja Čede Protića 3 155 26

8 Office Health protection Učitelja Čede Protića 7 115 19

9 Primary school "Milan Rakić"

Kneza Grbovića 29 3.600 522

10 Secondary school Mionica

Kneza Grbovića 29A 1.550 225

11 Health center "Mionica" Kneza Grbovića 65 1.700 247

12 Kindergarten "Neven" Dr. Živorada Višića 29 750 94

13

Directorate for building Mionica

Mite Rakića 1 198 25

Commercial offices Mite Rakića 1

172 22

Residential apartments Mite Rakića 1

1.250 156

14 Commercial offices Mite Rakića 3

370 46

Residential apartments Mite Rakića 3 1.250 156

15 Residential building Vojvode Mišića 52 1.250 156

16 Commercial offices Vojvode Mišića 54 220 28

17 Cultural center and cinema hall

Dr. Jove Aleksića 4 590 99

18 Commercial offices Dr. Jove Aleksića 2 850 89

19 Residential buildings 8.000 1.000

Summary by phases 13.426 1.931 12.917 1.615

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Connecting Phase II is defined as a future connection of residential buildings, with or

without own heating system, and for this purpose is provided in the reserve capacity of

the heating grid and the biomass boiler room.

As shown in the review, public buildings now have independent heating systems and use

different types of fuel to obtain thermal energy. Some of these systems are in good condition and

functioning effectively, and some of them do not.

Good examples are the buildings that used by services municipality Mionica and the police

station, using community modern fuel oil boilers, completely automated and in working condition.

Bad example are objects of primary and secondary school, that use a unique coal boilers, which

does not include systems for monitoring and load management systems where water treatment

plants are not in operation.

The choice of the technical concept that would be the most advantageous and analysis of

investment justification based at three scenarios.

Scenario 1: Public institutions of Mionica are not located in a single or in several buildings at a

short distance. They are part of the buildings, which are distributed around the town at a great

distance. Thus, positioned objects prevent making simple solution by forming a single boiler

biomass, which would connect public buildings. This scenario assumes that there is heating

grid only for public buildings (Phase 1)

With the assumption that there is a heating grid that there are linked only public buildings,

scenario 1 shows that the switch fuel to biomass generate financial savings.

Scenario 2: This scenario considers the construction of the biomass boiler and heating

grid, only for public institutions of Mionica.

Considering that public institutions are located in buildings spread throughout the town,

the construction of a biomass boiler and pipe systems for district heating needs of public

institutions is financially unsustainable because of the large investment costs.

Scenario 3: This scenario plans to build a biomass boiler and heating grid for the needs of public

institutions and residential buildings in Mionica. Construction of the heating grids with greater

capacity as the infrastructure facility is for future connection of residential buildings.

Scenario 3 with the construction of a biomass boiler and pipe systems for district heating

and dimensioned for future connection of residential buildings, is the only viable solution

to reduce the costs of heating public institutions. This investment is the largest but the

connection of new users has made additional financial profit that this system has made

sustainable.

Construction of the heating grid dimensioned for connection of housing and commercial buildings

represents the construction of the infrastructure system, which is good for the entire local

community. The system defined in scenario 3, use existing two fuel oil boilers, power

750+900 kW, and resources from municipalities boiler room. Fuel oil boilers and resources from

municipality’s boiler room, under scenario 3, would be relocated and used as part of new power

plants. These boilers would be used to cover the maximum needs of the system, while as the

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main generator of heat used by the woodchip boiler 2.500 kW power. Thus, conceived plant can

be connected to 25.000 m2 heated area.

For facilities of public administration, would be planned installation of substations, which are

equipped with devices for measurement of thermal energy and devices for power management

depending on the outside temperature. Based on these results, the construction of a power plant

with boiler for burning wood chips (biomass of forest origin) and construction of heating grid for

public, residential and commercial buildings is proposed scenario 3.

Prerequisites that have to be met for the successful operation of the facility are as follows:

Selection of an appropriate financing model (from own funds, credit line or public-private

partnership); Enter into long-term contracts for the supply of the biomass; Provide autonomy to

the fuel storage according to the consumption in the coldest month of the year; During the

construction phase train the personnel who would take over the management and maintenance

of the boiler plant; Ensure high quality maintenance of the specific equipment in cooperation with

the supplier of the equipment.

This investment will achieve the following benefits:

- Lower costs of heat energy,

- Low levels of emission of harmful substances in the exhaust gas,

- Reduction of CO2 emissions - burning wood biomass the CO2 released is "neutral",

- Raising the level of safety and operational availability of the energy block,

- Raising the comfort for all future consumers in District heating center Mionica.

Techno-economic indicators of the future energy system with wood chips are as follows:

Heat capacity of boilers 1 x 2.500 kW

Fuel wood chips, M30 according to CEN/TS 14961:2005

(1) General requirements and (4)

Annual production of thermal energy 3.768 MWhth /a

Annual fuel consumption 1.118 t/a

Efficiency on the threshold of the heat plant 0,90 x 0,90

Annual reduction in CO2 emission 996,65 t/a

CAPEX 905.400 €

OPEX (the amortization period) 2.955.617 €

LUC 51,20 EUR/MWh

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2. INTRODUCTION

The program ‘Development of a Sustainable Bioenergy Market in Serbia’ (GIZ DKTI) is

implemented jointly by the KfW (financing component) and GIZ (technical assistance

component). It is funded by the German Federal Ministry for Economic Cooperation and

Development (BMZ) under the German Climate Technology Initiative (DKTI). The main

implementing partner and beneficiary of the technical assistance (TA) component is the Serbian

Ministry of Agriculture, Forestry and Water Management (MAFWM). The general objective of the

project is to strengthen capacities and create an enabling environment for the sustainable use of

bioenergy in Serbia. The TA component includes the following five activity areas:

1) Policy advice: Assessment of bioenergy potentials and regulatory framework for creating

and enabling environment for private sector investment in bioenergy projects etc.

2) Biomass supply: Accompany investments in biomass-fired district heating plants in up to

three pilot regions with TA to secure a reliable and cost-effective supply of biomass in a

sustainable manner.

3) Efficient firewood utilization at household level: Increase the efficiency of firewood

consumption for heating at household level through the promotion of firewood drying and

efficient stoves/ovens.

4) Project development: Support in cooperation with the national and international private

sector the development and the implementation of feasible bioenergy projects – from biogas

or straw combustion plants in the industry sector to wood based heating boilers in private and

public buildings.

5) EU-Project BioRES – Regional Supply Chains for Woody Bioenergy: BioRES aims at

introducing the innovative concept of Biomass Logistic and Trade Centres (BLTCs) in Serbia,

Croatia, and Bulgaria based on cooperation with technology leaders from Austria, Slovenia,

Germany, and Finland. The BLTCs as regional hubs will help increasing local supply and

demand for wood bioenergy products in these countries.

The development of a biomass supply is required only if there are liable regional consumers of

biomass. As a supporting institution, GIZ DKTI has received a Letter of Expression of Interest

signed by the mayor of Serbian municipality Mionica to declare their demand for guidance, legal

and technical assistance in the process of the development of a fuel switch of public buildings in

Mionica to biomass. This switch will be organized with one biomass boiler of the capacity range

2-3 MW. Heating grid will have to be planned. The grid will have to have greater capacity in order

to allow for additional buildings, including residential to be connected in the second phase.

This fuel switch from electricity, coal and oil to biomass should provide savings in the budget of

the municipality by strengthening local incomes with local produced wood fuel and should reduce

emissions of the renewed heating system.

The aim of this study was to establish technical concept for switching to biomass heating, the

installation of a wood chip heating plant including storage recipient and design of the distribution

system including grid and substations.

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In addition, it is necessary to estimate the investment costs of the plant, distribution system,

perform financial evaluation of savings from woodchip heating system (compared to current

situation) regarding fuel costs, efficiency, investment and operation costs, cash-flow analysis

through savings and sensitivity analysis regarding fuel prices, investment cost and boiler

efficiency.

The study includes the following:

- Assessment of the current energy situation in public buildings in Mionica regarding

heated area, boiler capacity and current performance, energy consumption and cost

efficiency, condition of distribution system and connections.

- Techno-economic analysis of the proposed system for the production of thermal

energy by burning biomass (wood chips), and distribution system with heating grid

and substations which should include:

Proposal of a technical concept for central woodchip heating system including boiler, feeding system, storage unit and grid installation taking into consideration future efficiency measures in the buildings.

Financial evaluation of savings from woodchip heating system (compared to current situation) regarding fuel costs, efficiency, investment and operation costs, cash-flow analysis through savings and sensitivity analysis regarding fuel prices, investment cost and boiler efficiency.

An assessment of CO2 emissions reduction. The recommendation concerning the quality and availability of wood chips to

supply the plant in the future, taking into account the prices and local suppliers of wood chips.

Technical concept and preliminary design for heating grid in Mionica, substations and further necessary equipment, including losses, connected to planned biomass CHP.

Estimation of overall investment costs for the heating grid, substations and further necessary equipment.

Financial evaluation of heat prices compared to current situation taking into account

fuel costs, efficiency, investment and operation costs

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3. GENERAL INFORMATION

3.1 MIONICA MUNICIPALITY

Kolubara district covers the northwestern part of Serbia, and covers an area of 2.474 km2, of which the largest area and population of the district has a center, and it is a town of Valjevo. Kolubara district includes:

1. Municipality Valjevo 2. Municipality Mionica 3. Municipality Ub 4. Municipality Lajkovac 5. Municipality Ljig 6. Municipality Osečina

Figure 1- Location of the Kolubara District in the territory of the Republic of Serbia

Figure 2 – Municipalities belonging to the Kolubara district

(Source: https://sr.wikipedia.org/sr/Колубарски_управни_округ)

(Source: https://sr.wikipedia.org/sr/Колубарски_управни_округ)

From the capital town Belgrade, municipality Mionica is located 80 km to the south and it

is bounded from the south by mountains Maljen and Suvodor, and to the north with right coast of

river Kolubara. Municipality Mionica cover an area 392 km2.

The municipality is located near the Ibar main road and regional roads Divci-Mionica-Ljig

and Bogovadja-Mionica-Divčibare. Regional roads connect municipality Mionica with town

Valjevo and with the main regional rail intersection “Lajkovac” in the direction Belgrade-Bar.

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The municipality has a favorable geographic location and configuration of the terrain. The

Municipality of Mionica and the territory of the district which it belongs, is rich in forests and

pastures. They are characterized by closeness mountain ranges Maljen and Suvobor the south

and wide openness to rivers Kolubara, Sava and the Pannonian Plain to the north.

The total area of forests and forestland in municipality Mionica is 9.978 ha. The forest coverage

of the municipality is 28 % and it is slightly more the percentage of forest cover in Serbia, which

is 27.4 %. The degree of utilization of this resource is well below the national average. Mionica is

dominated by mixed composition of forests (58 % by area) and make them beech, sessile oak,

birch, Hungarian oak, hornbeam, oak. Forests with a uniform type (37 % by area) are forests of

beech, oak, birch, acacia, Austrian pine, spruce.

Surface area of Fertile land ha 29.984

Arable land ha 13.100

Orchard land ha 3.000

Forest land ha 9.978

Other ha 4.816

Table 1 - The structure of the territory of Mionica municipality

(Source: Development strategy of Mionica municipality, april 2008)

Basic features of the climate temperate is continental type. Through municipality Mionica pass

small rivers Ribnica and Toplica. The altitude of municipality Mionica is from 140 to 1.103 m,

and the altitude of town Mionica is 175-185 m. The highest peak is “The king’s table” on the

mountain Maljen with an altitude 1103m above sea level.

The basic meteorological data (average annual values) of Kolubara district:

- Insulation: 164.7 hours/month, i.e. 1.976,5 hours/year,

- The amount of rainfall: 1.062 mm/year,

- Air temperature: 11,6°C, Relative humidity: 72,3 %,

- Daily solar radiation on a horizontal surface: 3,51 kWh/m2 day,

- Atmospheric pressure: 96,8 kPa,

- Wind speed: 1,3 m/s (measured at 10 m from the ground),

- Ground temperature: 11,5°C

- Degree day heating: 2.784

- Heating days: 192

- Average temperature during heating days: 5,5°C

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• The population of the municipality Mionica

Number Census year

of 1961 1971 1981 1991 2002 2011

Inhabitants: 22.359 20.560 19.297 17.368 16.513 14.335

Households: 4.863 5.024 5.172 5.144 5.091 4.616

Table 2 – From 1961 to 2011 Population Census data for municipality Mionica

(Source: http://popis2011.stat.rs/?page_id=2134)

3.2 TOWN MIONICA

Town Mionica organized in the direction northwest - southeast. Town Mionica is the

transportation center and the center of the municipality, and as such, the holder of the

administrative, healthcare, educational and cultural functions, as well as a center of trade and

service industries.

River Ribnica flows through the town in the direction northwest - southeast. On the left bank of

the river, residential part of the town is located with a central square and with institutions of public

importance. Buildings and facilities of public importance are not only in the central part of the

town, but extending in the direction northwest - southeast where town itself extends. On the right

bank of the river, there are residential buildings and industrial zones. The most important

company in the industrial zone is the factory of packaging and decorative Styrofoam "Fima". In

the industrial zone there is also a steel castings company "Cimos" (formerly “Krušik Mionica”), as

well as companies in bankruptcy, like construction company "Termoelektro-GM" and the firm for

freezing and processing of fruits and vegetables "Mediterranean 92". At the entrance to the town

from Valjevo there is a catering facility "Lepenica" with two swimming pools with thermal water.

Habitation is organized mostly in family houses with one or two floors. In the town, except family

houses there are residential buildings with maximum five floors.

• The population of the town Mionica

Number Census year

of 1961 1971 1981 1991 2002 2011

Inhabitants: 860 1.227 1.438 1.679 1.776 1.620

Table 3 – From 1961 to 2011 Population Census data for town Mionica

(Source: http://popis2011.stat.rs/?page_id=2134)

The formation of the town Mionica began in the second half of the 19th century, when it started

the construction of public buildings. In the center is a building from 1903. in which administration

of the municipality with services is located. Due to population growth in the period 1970-1990, the

buildings that built were primary school, secondary school, health center and residential

buildings.

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Due to the individual construction buildings of public institutions, their heating systems are not

centralized, but they are mostly independent in buildings or in their parts.

room room

area height capacity area height capacity

m2

m kW m2

m kW

1Building of

municipality

Vojvode

Mišića 302.248 3,5 364

2Building of

municipality

Vojvode

Mišića 28432 2,7 54

3 Police stationVojvode

Mišića 26613 2,7 77

4Residential

building

Kolubarske

bitke 13

Local el.

heaters600 2,7 75

5Public water and

sanitary comp.

Učitelja Čede

Protića 5

Electric

boiler275 2,7 40

6Residential

building

Učitelja Čede

Protića 1

Local el.

heaters155 2,7 26

7 Office buildingUčitelja Čede

Protića 3

Local el.

heaters155 2,7 26

8Office Health

protection

Učitelja Čede

Protića 7

Local el.

heaters115 2,7 19

9Primary school

"Milan Rakić"

Kneza

Grbovića 293.600 2,7 522

10Secondary

school Mionica

Kneza

Grbovića 29A1.550 2,7 225

11Health center

"Mionica"

Kneza

Grbovića 65Crude oil 1.700 2,7 247

12Kindergarten

"Neven"

Dr. Živorada

Višića 29

Electric

boiler750 2,7 94

Directorate for

building MionicaMite Rakića 1

Electric

boiler198 2,7 25

Commercial

officesMite Rakića 1

Local el.

heaters172 2,7 22

Residential

apartmansMite Rakića 1

Local el.

heaters1.250 2,7 156

Phase II

Crude oil

Ma

rk

InstitutionAddress of

building

Type of

energy

13

Coil

Phase I

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room room

area height capacity area height capacity

m2

m kW m2

m kW

Commercial

officesMite Rakića 3

Local el.

heaters370 2,7 46

Residential

apartmansMite Rakića 3

Local el.

heaters1.250 2,7 156

15Residential

building

Vojvode

Mišića 521.250 2,7 156

16Commercial

offices

Vojvode

Mišića 54220 2,7 28

17Cultural center

and cinema hall

Dr. Jove

Aleksića 4

Electric

boiler590 4,3 99

18Commercial

offices

Dr. Jove

Aleksića 2

Local el.

heaters850 2,7 89

19Residential

building

Local

systems8.000 2,7 1.000

13.426 1.931 12.917 1.615

14

Coil

Summary by phases

Phase I Phase II

Ma

rk

InstitutionAddress of

building

Type of

energy

Table 4 - Basic information about the public buildings (Source: information provided by municipality administration)

Planning acts, which define the direction of development of the municipality and town Mionica

are:

- "Development Strategy of Mionica", April 2008, produced by "Institute of Agricultural

Economics" - Belgrade

- "General regulation plan of the town Mionica", September 2015, produced by "Arhiplan"

- Arandjelovac.

This document presents the natural, economic, tourism and energy resources of the municipality

as well as the rules of building infrastructure corridors and facilities. The municipality has not

done gasification. According to the planned development of gasification and medium term-plan of

company "Serbia gas", following planned to be built:

- Gas Pipeline of steel pipe pressure up to 50 bar, from the border to the main measuring and regulation station (MMRS) "Mionica";

- MMRS "Mionica", the capacity of 7.500 m³/h, which would be conducted by reduction of pressure at 4 bar (gas supply of Mionica) and 16 bar (gas supply Ljig);

- Distribution pipeline steel pipe pressure up to 16 (12) bar, from MMRS "Mionica" to measuring and regulation selector station (MRS) "Ljig";

- Gas distribution network of polyethylene pipes for operating pressure up to 4 bar, which will serve for the supply of natural gas to households and industrial consumers.

The most significant energy potential, which ensures sustainable development, is the use of

biomass. As agriculture and forestry are primary industries, it represents a good basis for the

collection of biomass, the purpose of solving the energy needs for buildings of public institutions

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and residential buildings in the town. Solution for energy requirements of buildings are based on

the development of district heating network and the biomass boiler.

The problem is the fact that the planning acts do not include the construction of a central heating

source using forest biomass as a fuel and thus as part of energy efficiency measures. The

planning acts do not provide for the heating network, so the first step in implementing the heating

system and using biomass is the modification of the planning acts, the development strategy and

general regulation plan for Mionica.

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4. EXISTING HEATING SYSTEM

Institutions of Mionica and other public institutions that are of importance to the residents of the

municipality are located in separate buildings in the town of Mionica. Heating in the objects are

enabled through existing individual boilers using coal and crude oil, or over the separate electric

boilers and local electric heaters. The management of individual boilers, which owned by the

municipality, was given to a public utility company "Čistoća Mionica". A particular problem is the

use of the heavy fuel oil and coil due to the negative environmental effects the combustion

produces.

Under certain microclimate conditions, the allowed emission limits certainly exceeded, which

could lead to a ban on the heat source.

In some office-residential buildings, some apartments have turned off the heating system, due to

the high price of heating through individual heating on fuel oil.

In all buildings radiator heating system is applied with radiators for temperature regime of

90/70°C in the outer design temperature for the town of Valjevo -20°C, which corresponds to the

radiators for temperature regime of 80/60°C in the outer design temperature for town Valjevo -

14,4°C.

Microclimate data

Air temperature

Relative humidity

Daily insulation

Atmospheric pressure

Wind speed

Soil temperature

(°C) (%) (kWh/m2) (kPa) (m/s) (°C)

January 0,5 81,4 1,44 97,1 1,0 -1,0

February 2,5 73,4 2,26 96,9 1,3 0,7

March 6,8 67,1 3,26 96,7 1,5 5,9

April 11,5 66,5 4,11 96,4 1,6 11,4

May 16,6 66,6 5,12 96,6 1,4 17,1

June 20,1 67,5 5,67 96,6 1,3 20,8

July 21,9 66,6 5,91 96,6 1,3 23,5

August 21,7 65,9 5,26 96,7 1,3 23,5

September 16,8 73,3 3,82 96,8 1,2 18,1

October 12,2 76,6 2,54 97 1,2 12,3

November 6,0 80,3 1,46 96,9 1,2 5,2

December 1,7 82,2 1,16 97 1,2 0,1

Year 11,6 72,3 3,51 96,8 1,3 11,5

Table 5 - Microclimate data (Source: RetScreen International & NASA Software, updated 2014.)

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Observation of Municipality boiler room

Central individual boiler powered with heavy fuel oil supplies thermal energy facilities:

Ma

rk

Institution Address

Cadastral

parcels town

Mionica

Heated

area

Heating

capacity

Working

timeConnection

(m2) (kW) phase

1Building of

municipalityVojvode Mišića 30 53/1 2.248 364 07-16 I

2Building of

municipalityVojvode Mišića 28 53/5 432 54 07-19 I

3 Police station Vojvode Mišića 26 53/5 613 77 00-24 I

4 Residental building Kolubarske bitke 13 54/8 600 75 00-24 II

Table 6 - Data about facilities connected to municipal boiler room

The municipal boiler room reconstructed in 2011. The building boiler room is located behind the

main building of the municipality.

Picture 1– Municipal boiler room There are two boilers for crude oil model Vitoplex100 produced by Viessmann. Boilers are power

780kW and 950kW and they are defined by the temperature regime 90/70°C and operating

pressure of 6 bar-a

Picture 2– Boilers model Vitoplex100 by

Viessmann

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On the boilers there are circulating pumps to create water circulation through the boilers in order to protect the boilers from the "cold start".

Picture 3– Circulating pump on boiler

The boilers are connected to the collectors of which are

carried out two connections of hot water pipes. The

circulation of water through piping from the heating

system is made with constant flow pumps.

Picture 4– Individual circulation pumps on connections

One supply pipeline connects residential

building at "Kolubarske bitke 13" with boiler

room. This supply line is now closed because

the building is excluded from the heating

system.

Picture 5– Residential building at „Kolubarske bitke 13“

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Picture 6– Supply pipeline for residential

building at „Kolubarske bitke 13“

Picture 7– Supply pipeline for municipal buildings at

„Živojina Mišića 28,30“ and police station at „Živojina

Mišića 26“

Picture 8 – Main municipality

building at „Vojvode Mišića 30“

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The second supply line is for hot water piping for

municipal buildings at "Vojvode Mišića 28,30” and

the police station at “Vojvode Mišića 26”. The entry

of hot water pipes in the main building of the

municipality at "Vojvode Mišića 30” is on the back

side of the building from the courtyard.

Picture 9 – The entry of hot water pipes to main

municipality building at „Vojvode Mišića 30“

Picture 10 – Municipality building at

„Vojvode Mišića 20“

The entry of hot water pipes in the building of the

municipality at "Vojvode Mišića 28” is on the side of

the building from the courtyard.

Picture 11 – The entry of hot water pipes to

municipality building at „Vojvode Mišića 28“

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Picture 12 – Police station building at „Vojvode

Mišića 26“

Right next to the boiler room there is located

above ground 30 m3 tank for crude oil. The

water heater, with connection to hot-water

collector or connecting to an electric boiler,

heats crude fuel oil. Heavy fuel oil used as fuel

may contain up to 3 % of sulfur (S) according

to the SRPS ISO 8754 Standard and the lower

heating value is Hd = 40 MJ/kg, according to

DIN51603.

Picture 13 – Tank capacity 40 m3

In all buildings was applied two pipe radiator heating system without local temperature control on

radiators. Facilities without temperature control of allowing uncontrolled consumption of thermal

energy and higher costs.

Chemical water treatment is through the industrial system for water treatment. The equipment in

the boiler room is in good condition and functional.

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Observation of building at address “Učitelja Čede Protića 1,3,5,7”

The building on cadastral parcel 114/3 is a unique building units and has four street numbers.

The building is in the direction northwest - southeast and has three parts.

Ma

rk

Institution Address

Cadastral

parcels town

Mionica

Heated

area

Heating

capacity

Working

timeConnection

(m2) (kW) phase

5Public water and

sanitary comp.

Učitelja Čede

Protića 5114/3 275 40 07-16 I

6 Residental buildingUčitelja Čede

Protića 1114/3 155 26 00-24 II

7 Office buildingUčitelja Čede

Protića 3114/3 155 26 07-16 II

8Office Health

protection

Učitelja Čede

Protića 7114/3 115 19 07-16 II

Table 7 - Data of facility and its parts on cadastral parcel 114/3

The central part of the building has one

floor with public utility companies

"Vodovod Mionica" and the company

"Čistoća Mionica". The central part of the

building has an address “Učitelja Čede

Protića 5".

Picture 14 – Part of building at address

“Učitelja Čede Protića 5”

In the offices of the company, "Vodovod

Mionica" there is radiator systems of heating via electric

boiler. On radiators, there are no thermostatic valves to

regulate the air temperature. Through individual electric

heaters are realized heating offices of "Čistoća Mionica".

Picture 15 – Electric boiler at “Učitelja Čede Protića 5”

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Picture 16 – Part of building at address “Učitelja Čede Protića 1 and 3”

On the northwest side of the building, there are two floors, where there is no installation of

radiator heating. On the ground floor, there are shops and on the first floor there are residential

apartments. This part of the building has an address of "Učitelja Čede Protića 1,3". Connection of

this part of the building, to the new heating system, would be in the second phase, if owners of

premises agree.

On the southeast side of the building, there are ground

level where there is no installation of radiator heating.

In this part of the building that has the address "Učitelja

Čede Protića 7" are the Office of the Public Health

Institute.

Picture 17 – Part of building at address “Učitelja Čede

Protića 7”

Picture 18 – Building on parcel 114/3

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Observation of heating system in primary and secondary school

Ma

rk

Institution Address

Cadastral

parcels town

Mionica

Heated

area

Heating

capacity

Working

timeConnection

(m2) (kW) phase

9Primary school

"Milan Rakić"Kneza Grbovića 29 139/3 3.600 522 07-20 I

10Secondary school

MionicaKneza Grbovića 29A 139/3 1.550 225 07-20 I

Table 8 - Data of facilities of primary and secondary school

Facilities of primary school "Milan Rakic" and secondary school "Mionica" are on the cadastral parcel 139/3. Within the building of primary school, boiler room with coal boilers is located. Secondary school is connected to the heating system with underground hot water pipeline.

Picture 19 – Primary school “Milan Rakic” Picture 20 – Primary school from schoolyard

Facility of kindergarten "Neven" and a system of domestic hot water for elementary school warmed earlier from this boiler room. Picture 21 – Boiler room

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Picture 22 – Secondary school from schoolyard

Two boilers, power 400 kW each, made by cast iron are manufactured by “Radijator-Zrenjanin”. The third boiler is steel boiler manufactured by "Termomont" -Šimanovci power 500 kW, which is not operational11. Picture 23 – Cast iron boiler “Radijator Zrenjanin”

Picture 24 – Steel boiler “Termomont”

Water circulation achieved through old circulators. The expansion of water during warming up, accept dilapidated closed expansion vessels. The system for the chemical treatment of water is not in use. Picture 25 – Old circulation pumps

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Picture 26 – Porch for storing coal In addition to building boiler room there is a porch for storing coal for a period of three months. In facilities, there is two-pipe radiator system, which has no thermostat valves for controlling air temperature. Equipment and installations in the boiler room are in poor and bad condition.

Observation of heating system in health center “Mionica”

Ma

rk

Institution Address

Cadastral

parcels town

Mionica

Heated

area

Heating

capacity

Working

timeConnection

(m2) (kW) phase

11 Health center "Mionica" Kneza Grbovića 65 852/21 1.700 247 00-24 I

Table 9 - Data of facilities in health center “Mionica”

The building of health

center “Mionica” is

located at address

“Kneza Grbovića 65”

on cadastral parcel

852/21.

Picture 27 – Health center “Mionica”

The building heated from its own boiler room, with crude oil boiler power 250 kW product by

"Topling heating" and it was reconstructed in year 2015. The circulation of water in the heating

system made by outdated circulating pumps with constant flow.

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Picture 28 – Fuel oil boiler in Health center “Mionica” Picture 29 – Pumps in Health center

“Mionica”

In the yard behind the building, there is underground fuel oil tank of unknown volume. In recent years, due to the heavy rains, it often came to flooding of the fuel tank. Heating of fuel oil from the tank, is via water heater with the heating system, or via separate electric boiler.

Picture 30 – Fuel tank in Health center “Mionica” Picture 31 – Electric boiler for fuel oil

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During the reconstruction of the heating system in the house in 2015, old fuel oil boilers were

dismantled and reconstructed. During the reconstruction of radiator heating pipe network and

radiators not replaced. On radiators, there are no thermostats valves for temperature air control.

Equipment and installations in the boiler room are in poor but functional condition.

Picture 32 – Discarded boilers after reconstruction

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Observation of heating system in facility kindergarten “Neven”

Ma

rk

Institution Address

Cadastral

parcels town

Mionica

Heated

area

Heating

capacity

Working

timeConnection

(m2) (kW) phase

12 Kindregarten "Neven" Dr. Živorada Višića 29 363/7 750 94 06-17 I

Table 10 - Data of facilities kindergarten “Neven”

The building in which there is a kindergarten "Neven" is located at address Dr.Živorada Višića 29 on cadastral parcel 363/7. Facility reconstructed and energy rehabilitation performed using the donation from the Japanese Government. Insulation of buildings and placement of new energy efficient windows were done as a part of reconstruction. Heating of the building enabled through a new set of two-pipe radiator heating systems without thermostats on radiators for regulating air temperature.

Picture 33 – Kindergarten “Neven” Observation of heating system in facility at address “Mite Rakića 1, 3”

Ma

rk

Institution Address

Cadastral

parcels town

Mionica

Heated

area

Heating

capacity

Working

timeConnection

(m2) (kW) phase

Directorate for

building MionicaMite Rakića 1 139/86 198 25 07-16 I

Commercial offices Mite Rakića 1 139/86 172 22 07-16 II

Residental

apartmansMite Rakića 1 139/86 1.250 156 00-24 II

Commercial offices Mite Rakića 3 139/86 370 46 07-16 II

Residental

apartmansMite Rakića 3 139/86 1.250 156 00-24 II

13

14

Table 11 - Data of facilities at address “Mite Rakića 1, 3”

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Picture 34 – Facilities at “Mite Rakića 1, 3” from back side Facilities at address “Mite Rakića 1, 3” have

offices on the ground floor and residential

apartments from the first to the fifth floor.

Facilities are on the cadastral plot 139/86 and

were built in 1999.

Picture 35 – Facilities at “Mite Rakića 1, 3” from

street side

Radiator heating system in the facilities connected to

the boiler room in the building. In the boiler room, there

are two boilers to light fuel oil, but they are not in

function.

Picture 36 – Rusty entrance to the boiler room

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Behind the building, there is an underground tank of fuel oil from which piping fuel to the boiler in

the house is derived. Heating system has been in operation only in the first year when the

investor bought the fuel.

Picture 37 –Boiler room not in use

Offices of Directorate for

Planning and Construction of

Mionica are located on the

ground floor at “Mite Rakića 1”.

The office has implemented a

new installation of radiator

heating powered with electric

boiler. The offices do not have

thermostatic radiator valves to

regulate the air temperature.

Picture 38–Entrance to the office of directorate Picture 39–Electric boiler in office of

directorate

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Observation of heating system in facilities at address “Vojvode Mišića 52, 54”

Ma

rk

Institution Address

Cadastral

parcels town

Mionica

Heated

area

Heating

capacity

Working

timeConnection

(m2) (kW) phase

15 Residental building Vojvode Mišića 52 157/1 1.250 156 00-24 I

16 Commercial offices Vojvode Mišića 54 157/2 220 28 08-20 I

Table 12 - Data of facilities at address “Vojvode Mišića 52, 54”

Facilities at address “Vojvode Mišića

52, 54” were built in 1981. and they are

heated by community boiler which is

located at the ground floor of the

building at “Vojvode Mišića 52”. On the

ground floor at “Vojvode Mišića 52’,

there are offices, stores and resident

apartments from first to fourth floor.

Picture 40 – Facilities at address “Vojvode Mišića 52, 54”

From the boiler room, overhead heating pipeline

system for the building at “Vojvode Mišića 54”

designed. At “Vojvode Mišića 54” there are offices at

ground and first floor with radiators.

Picture 41 – Facility at address “Vojvode Mišića 54”

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Overhead heating pipeline system for the building at “Vojvode Mišića 54” is designed. Boilers

have power of 450 kW, they are made of cast iron and they are a product of “Radijator-

Zrenjanin”. The circulation of water in the heating system water realized by outdated circulating

pumps with constant flow.

Equipment and installations in the boiler room are in poor and bad condition.

Picture 42 – Boiler at address “Vojvode Mišića 52” Observation of heating system in facilities at address “Dr. Jove Aleksića 2, 4”

Ma

rk

Institution Address

Cadastral

parcels town

Mionica

Heated

area

Heating

capacity

Working

timeConnection

(m2) (kW) phase

18Cultural center and

cinema hallDr. Jove Aleksića 4 101 590 99 10-20 I

19 Commercial offices Dr. Jove Aleksića 2 101 850 89 08-20 II

Table 13 - Data of facilities at address “Dr. Jove Aleksića 2, 4”

The building on cadastral parcel 100 is a single unit with address “Dr. Jove Aleksića 2, 4”. In the northern part of the building, which is kept at “Dr. Jovo Aleksic 4” is a Cultural center with a theater hall Mionica and business offices. Cultural Centre Mionica and business offices have radiator systems with electric boiler. Theater hall is not in use and is under reconstruction.

Picture 43 – Cultural center Mionica Picture 44 – Theater hall under construction

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Picture 45 – Electric boiler for Cultural center and offices without theater hall

Picture 46 – Building at “Dr. Jove Aleksića 2”

The building at “Dr. Jovo Aleksic 2” consists of business offices and premises in which there is no unique radiator system, rooms heated by individual electric heaters.

Complete Observation

Based on the displayed, heating systems differ by fuel type and by the type and number of users. Heating systems with electric boilers in buildings are not connected to a separate measure of electricity. Due to the complex heating system, it cannot be possible to collect data of energy consumption, so that energy consumption calculated according to the following:

yeHDDtt

QH

epi

C

24

H - Estimated consumption

QC - Capacity of heating installation

ti - internal temperature (20°C)

tep - external project temperature (-14,4°C)

HDD - Degree days of heating (2784)

e - correction for the effect of wind and heating switch

y - correction for the effect of daily consumption profile

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Based on these equations calculated values shown in the table:

Table 14 – Overview of Data and consumption of facilities by phases

Type of Calc. Calc.

Building Boiler room energy from to consum. consum.

h h h m2

kW kWh/a m2

kW kWh/a

1Building of

municipality

Vojvode Mišića

306 19 138 I 2.248 364 388.594

2Building of

municipality

Vojvode Mišića

286 19 138 I 432 54 57.649

3 Police stationVojvode Mišića

266 19 138 I 613 77 82.203

4Residential

building

Kolubarske

bitke 13Local el.

heaters7 20 192 II 600 75 111.398

5Public water &

sanitary comp.

Učitelja Čede

Protića 5

Učitelja Čede

Protića 5

Electric

boiler07-15 7 16 138 I 275 40 29.563

6Residential

building

Učitelja Čede

Protića 1

Local el.

heaters7 20 192 II 155 26 38.618

7 Office buildingUčitelja Čede

Protića 3

Local el.

heaters8 20 138 II 155 26 25.622

8Office Health

protection

Učitelja Čede

Protića 7

Local el.

heaters7 15 138 II 115 19 12.482

9Primary school

"Milan Rakić"

Kneza

Grbovića 298 19 128 I 3.600 522 437.366

10Secondary

school Mionica

Kneza

Grbovića 29A8 19 128 I 1.550 225 188.520

11Health center

"Mionica"

Kneza

Grbovića 65

Kneza

Grbovića 65Crude oil 00-24 6 19 192 I 1.700 247 366.871

12Kindergarten

"Neven"

Dr. Živorada

Višića 29

Dr. Živorada

Višića 29

Electric

boiler06-16 6 16 138 I 750 94 77.193

Directorate for

building MionicaMite Rakića 1 Mite Rakića 1

Electric

boiler07-15 7 15 138 I 198 25 16.424

Commercial

officesMite Rakića 1

Local el.

heaters7 15 138 II 172 22 14.453

Residential

apartmansMite Rakića 1

Local el.

heaters7 20 192 II 1.250 156 231.708

Commercial

officesMite Rakića 3

Local el.

heaters7 15 138 II 370 46 30.220

Residential

apartmensMite Rakića 3

Local el.

heaters7 20 192 II 1.250 156 231.708

15Residential

building

Vojvode Mišića

527 20 192 I 1.250 156 231.708

16Commercial

offices

Vojvode Mišića

548 20 138 I 220 28 27.592

Cultural center

and offices

Dr. Jove

Aleksića 4

Dr. Jove

Aleksića 4

Electric

boiler08-20 8 20 138 I 240 25 24.636

Theater hallDr. Jove

Aleksića 4

Dr. Jove

Aleksića 4

Local el.

heaters17 21 25 I 350 74 4.404

18Commercial

offices

Dr. Jove

Aleksića 2

Local el.

heaters8 20 138 II 850 89 87.705

19Residential

building

Kneza

Grbovića 12

Local el.

heaters 7 20 192 II 8.000 1.000 1.485.308

13.426 1.931 1.932.722 12.917 1.615 2.269.222

No Institution Address

Kneza

Grbovića 29Coil

A Q

Op

era

t.

tim

e

Ph

as

e

A Q

Op

era

t.

da

ys PHASE II

time

PHASE I

Summary by phases

17

Useing

13

14

Vojvode

Mišića 52Coil

Crude oil 05-22

05-20

05-22

Vojvode

Mišića 30a

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Phase I (municipal and public institutions) current situation

Liquid Electricity Solid Total

Unit Crude oil "Dry Vreoci"

Consumption of energy (kWh) 895,316 152,220 885,186 1,932,722

Emission CO2 (kg) 250,688 50,233 292,111 593,033

Efficiency of system (%) 83% 100% 68%

Consumption of fuel (t) 98 310

Heated area (m2) 4,993 1,813 6,620 13,426

Unit fuel price (€/t), (€/kWh) 410 0.05 110

Annual energy cost (€) 40,206 7,611 34,093 81,910

Unit price of energy (€/m2) 8.05 4.20 5.15 6.10

Unit price of energy (€/MWh) 44.91 50.00 38.52 42.38

Energy produce byPHASE I current

situation

Table 15 – Phase I current situation, Energy and fuel consumption, price, CO2 emission

From the I-phase, the largest numbers of buildings heated through fuel oil. Buildings that are heated through fuel oil and electricity are reducing the consumption of energy in periods where there is no need for heating. Primary and secondary schools have limited heating during the winter holidays. Heating needs of each building conditioned by work time of institution that is in it. Due to the

rational use of heating systems in institutions, specific energy consumption is lower than

consumption in residential buildings.

Figure 3 – Energy consumption by fuel, Phase I – current situation

0

500,000

1,000,000

1,500,000

2,000,000

Liquid Electricity Solid Total

895,316

152,220

885,186

1,932,722

Consumption of energy (kWh)

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Figure 4 – Emission CO2 by fuel, Phase I – current situation

Figure 5 – Annual energy cost by fuel, Phase I – current situation

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Liquid Electricity Solid Total

40,206

7,611

34,093

81,910

Annual energy cost (€)

0

100,000

200,000

300,000

400,000

500,000

600,000

Liquid Electricity Solid Total

250,688

50,233

292,111

593,033

Emmision CO2 (kg)

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Figure 6 – Unit price energy by fuel, Phase I – current situation

Facilities that planned to be connect in the second phase:

- Residential building at address „Kolubaske bitke 13”, residential and office space in the house at address “Mite Rakića 1, 3”

- Residential and office space at "Učitelja Čede Protića 1,5,7” and commercial building with office space at address “Dr. Jove Aleksića 2”.

- Residential buildings and single houses in town Mionica

Facilities which are planned to be connect to district heating system, into the second phase, are

heated by local electric heaters and local heating systems. Offices are heats during working

hours and living spaces are heats all day with smaller daily breaks.

PHASE II Energy

current situation Unit electricity

Consumption of energy (kWh) 2.269.222

Emission CO2 (kg) 748.843

Heated area (m2) 12.917

Average Unit price (€/kWh) 0,06

Annual energy cost (€) 136.153

Unit price of energy (€/m2) 10,54

Unit price of energy (€/MWh) 60,00

Table 16 – Phase II current situation, Energy and fuel consumption, price, CO2 emission

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

50.00

Liquid Electricity Solid Averge

8.05

4.20 5.15 6.10

44.91

50

38.52

42.38

Unit price of energy (€/m2), (€/MWh)

(€/m2) (€/MWh)

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Unit consumption of energy

Daily heating time Season heating days

average in total average HDD

(kWh/m2) (kWh/kW) (h) (h) (day) (day)

Phase I 144 1001 11 of 17

136 of 192

Phase II 176 1.405 11 165

Table 17 – Energy and costs efficiency Indicators

The conclusion is that the presented annual energy of the facilities in the first phase was

144 kWh/m2, seemingly just a little below the recommendations of the Government of the

Republic of Serbia of 140 kWh/m2. That assumption is wrong. Low consumption level is caused

by work time limitations and stopping heating facilities. If using the facilities were more than work

time, then the annual consumption would be up to 200 kWh/m2, which is extremely inefficient.

Based on energy efficiency indicators, local heating systems of public facilities in town Mionica

are very inefficient. The energy efficiency of the local heating systems depends on the efficiency

of the following systems:

- System for the production of thermal energy - heat source

- Piping systems for hot water distribution

- The heating system in the buildings connected to the heating system, as well as energy

efficiency of buildings.

The systems for thermal energy production that use boilers on crude oil or electric energy, are an

energy-efficient but not economically viable systems. Almost all buildings, except kindergartens

“Neven” and the building of the cultural center Mionica are without thermal insulation, without the

possibility of regulating the heating system and without the control of the air temperature, which

make these buildings and their heating systems energy inefficient. The energy efficiency

measures undertaken for the purpose of thermal insulation reconstructions on buildings will

certainly lead to a reduction consumption of heating energy.

The use of coal-fired boilers in the central city area and in the school boiler room was

unacceptable due to environmental pollution and high CO2 emissions.

Increase in energetic, economic and environmental efficiency of heating systems in public

buildings of the town Mionica, could be achieved by:

- Forming the central town boiler that will use cheaper fuel with low CO2 emissions

- Forming the district heating system for all town area

- By connecting a greater number of residential buildings to the district heating system,

due to increased utilization of the district heating system and a large number of operating hours.

Biomass as fuel instead of light oil, electricity and coil, will lead to higher economic efficiency and

decrease of environmental pollution.

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5. BIOMASS MARKET ANALYSES

Biomass represents a renewable energy source, which is defined as the organic matter of

vegetable or animal origin (wood, straw, vegetable residues from agricultural production, manure,

organic fraction of communal solid waste). Biomass is used in combustion processes and

converted in power plants into the heat, electricity or both heat and electricity. Biomass is used

for the production of liquid and gaseous fuels. Only the biomass of wood origin in the form of

wood chips will be considered as a part of this study.

Biomass is one of the renewable sources of energy and as such is considered to be CO2 neutral.

Since biomass combustion emits exact amount of carbon dioxide as the plant binds during the

process of photosynthesis during growth, in that sense coefficient of carbon dioxide emissions of

biomass equals zero. However, this information is valid only when it is accompanied by a

forestation, otherwise CO2 emissions should be taken into account.

Wood chips are intended as the biomass for combustion in boiler plants. The quality of wood

chips was defined by the standard for solid fuel CEN / TS 14961: 2005 (1) General

Requirements, and (4) Wood chips for non-industrial use. In addition to that, the national

standards are applied too. The following table shows the requirements defined by the standards

in Austria:

Table 18 - Requirements for wood chips according to ÖNORM M 7133

W20 W30 W35 W40 W50

Moisture content

W< 20%

20% ≤ W<30%

30% ≤ W<35%

35% ≤ W<40%

40% ≤ W<50%

Table 19 - The classification of wood chips based on the moisture content according to ÖNORM M 7133

Wood chips

Standard ÖNORM M 7133

Particles size

Amax = 5 cm2

L = 12 cm (max 5% - 16 cm)

Moisture content

W10 – W50

50% max

Bulk density < 350 kg/m3

Calorific value 2,81-3,89 MWh/kg

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Dimensions (mm)

The fracture> 80% by weight

Fine fracture <5% Rough fracture <1%

P16 3,15 ≤ P ≤ 16 mm < 1 mm >45 mm, and < 85mm

P45 3,15 ≤ P ≤ 45 mm < 1 mm > 63 mm P63 3,15 mm ≤ P ≤ 63 mm < 1 mm > 100 mm

P100 3,15 mm ≤ P ≤ 100 mm < 1 mm > 200 mm

Moisture (%)

M20 ≤ 20% Dried

M30 ≤ 30% Suitable for storage

M40 ≤ 40% Limited for storage M55 ≤ 55% Unsuitable for storage

M60 ≤ 60% Wet

Ash content (%)

A 0.7 ≤ 0,7%

A 1.5 ≤ 1,5%

A 3.0 ≤ 3,0%

A 6.0 ≤ 6,0%

A 10.0 ≤ 10,0%

Table 20 – Requirements for wood chips according to CEN/TS 14961:2005, Part 4

The total area of forests and forest land in municipalities Mionica is 9978 ha. The forest coverage

of Mionica is 28 % and is slightly more than the percentage of forest cover of Serbia, which

amounts to 27,4 %, and the degree of utilization of resources is far below the national average.

State ownership is only 25%, and privately owned is 75 % of the total forest area in the

municipality. According to a public company "Srbija Šume" forest farm "Boranja - Loznica"

consists of forest administration areas Valjevo, Mali Zvornik, Sabac, Krupanj, with the total forest

area of 33798 ha.

Forest farm Forest area

Total volume of wood

annual growth

annual return

Boranja-Loznica ha m3 m3/ha m3

Mali Zvornik 10.794 2.631.889 6,0 341.247

Krupanj 4.707 1.184.405 6,0 176.676

Šabac 6.555 1.443.493 5,7 277.536

Valjevo 11.742 2.002.359 4,8 313.619

Total 33.798 7.262.146 22,5 1.109.078

Table 21 – Capacity data of forest farm “Boranja-Loznica”, public company “Srbija Šume”, Source: http://www.srbijasume.rs/loznica.html

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Figure 7 – Forests area in the total area Figure 8 – State and private forests by ratio of municipalities by administrative districts

(Source: Statistical yearbook of Republic of Serbia 2012)

Calculation of potential forest waste in the municipalities of Mionica serve as a basis for study

"The potential and possibilities of commercial use of wood biomass for Energy Production and

economic development of Nova Varos, Priboj and Prijepolje", 2009, by prof. Dr. Branko

Glavonjić. This study was carried out as the analysis of the availability of wood waste from the

sawmill industry and forestry in the municipalities of Nova Varos, Priboj and Prijepolje. The

results showed that the following amounts are available to meet energy needs:

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Municipalities Forest area

Volume of wood waste

Mass of wood waste

The available energy value at the annual level

ha m3 t MWh/a toe/a

Nova Varoš 22.400 3.100 1.813,5 4.003,2 345,1

Priboj 30.400 4.300 2.515,5 5.532,2 476,9

Prijepolje 44.000 5.400 3.159,0 6.950,0 599,1

Total 96.800 12.800 7.488,0 16.485,0 1.421,1

Table 22 - The energy potential of green chips from forestry, without wood waste from sawmill

industry, in the municipalities of Nova Varos, Priboj and Prijepolje (Source: The study "Potentials

and Possibilities of Commercial Use of Wood Biomass for Energy Production and Economic

Development of the Municipalities Nova Varoš, Priboj and Prijepolje", 2009., author: prof. dr

Branko Glavonjić, is a publication issued by the Faculty of Forestry of the University of Belgrade,

Ministry of Agriculture, Forestry and Water Management of the Republic of Serbia, Directorate of

Forests and UNDP).

Calculated energy value of forest waste, without the waste of the sawmill industry of forest public

company "Serbian Forests" and forest farms "Boranja - Loznica" (which is not far from the

municipality of Mionica) is shown in the table below:

Landscape

Forest area

Volume of wood waste

Mass of wood waste

The available energy value at the annual level

ha m3 t MWh/a toe/a

Prijepolje, Priboj, Nova Varoš 96.800 12.800 7.488 16.485 1.421

Forest farm "Boranja Loznica" 33.798 4.469 2.614 5.756 496

Table 23 - The energy potential of biomass from forest farm “Boranja-Loznica”, Source: own

calculate

Biomass of wood origin in the form of pellets placed on the market was not acceptable for

analysis due to the high purchase price. Domestic market transactions performed on a small

scale between manufacturers and wholesale where price reaches 180 EUR/t. Depending on the

time of purchase, end customers pay between 200 and 220 EUR/t. The advantage of pellets is

higher bulk density, which means lower transportation costs and smaller storage for the same

amount of fuel in terms of energy produced.

Some of the benefits of wood chips compared to wood pellets are lower prices and a lower level

of wood processing. As a source of wood for processing into wood chips, waste wood can also

be used and it can be obtained by cleaning the river Drina upstream from the hydroelectric power

plant "Mali Zvornik".

Wood chips Moisture Energy value Bulk density Cost

(%) (kWh/m3) (bulk-kg/m3) (€/t)

30-40 940-1200 350-430 43-47

Table 24 - Characteristics of wood chips depending on the type of primary wood

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Growing energy plants

Due to the growing demand for the use of biomass as energy source in order to reduce the conservation of forest reserves there is a need for the planned cultivation of energy crops. Biomass provides cleaner combustion products in comparison to fossil fuels and growth cycle consumes CO2 in photosynthesis process, so that biomass fuel is considered as CO2 neutral bio fuel. Starting from 1983, carried out extensive research on Miscanthus × Giganteus Denmark, Germany, Ireland, UK. Miscanthus (Miscanthus x Giganteus Greef et Deu.) represents a new perennial crop for the production of biomass, which is used as an energy source for combustion in boilers. The quality of the raw material depends primarily on the moisture content and nitrogen in it. Serbia has begun testing cultivation of this plant. Research is carried by Faculty of Agriculture, University of Belgrade, Institute for Application of Nuclear Energy-Zemun and Faculty of Applied Ecology "Futura" for the needs of the public company "EPS". Miscanthus produces a new above-ground part of the plant each year. It emerges from the ground in April, and when above-ground parts are fully developed stems, 5-15 cm in diameter, reach 1-2,5 m in height. The stems have a look similar to bamboo sticks. Harvesting is carried out each year by mowing and baling the entire aboveground part. The vegetative cycle repeated every 15 to 20 years.

Picture 47 – Rhizome of Miscanthus Picture 48 – Plant of Miscanthus For the full establishment of plantations under Miscanthus and achieving maximum rates of return 3-6 years needed. Total crop yields in the second year of the establishment can reach values of 6-10 t/ha, and in the third year to 12-17 t/ha or more. Crop yields reach their maximum after 3-5 years, when values of annual yield can be up to 20 t/ha year.

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Crop Annual dry matter yield

Caloric value of dry matter

Energy per hectare

Moisture content at harvest

t/ha DM kWh/kg DM MWh/ha %

Straw 2-4 4,723 9,7-19,4 14,5

Miscanthus 8-32 4,862 38,9-155,6 15

Hemp 10-18 4,667 47,2-83,3 -

Agacia 5-10 5,417 27,8-55,6 35

Wood 3-5 5,195 20,8 50

Table 25 – Characteristics of energy crops Source: Possibilities of using biomass originating from the fast-growing cane Miscanthus×giganteus, N.V. Babović, G.D. Dražić, A.M. Đorđević, Hem. Ind. 66 (2)

223–233 (2012), Faculty of applied ecology “Futura”

Annual growth in beech forest is about two tons per hectare, and oak about a ton and a half,

which means that the amount of biomass from one hectare of cane can replace 16 hectares

felled beech forest. For sowing in one hectare 10.000 to 20.000, roots are necessary, and each

costs 15 to 16 cents each. Miscanthus after planting and the start of return does not require

extensive cultural practices, such as fertilization and tillage, which reduces the cost of cultivation.

Growing and buying fast-growing cane

in the municipality would provide a stable

energy yield, zero CO2 emissions and reducing

existing CO2 emissions. If the municipality

Mionica used agricultural land owned by

municipality for growing cane Miscanthus, it

would lead to further reduction in energy costs

and closed production cycle of cane.

Picture 49 – Miscanthus as a fuel, chips

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6. TECHNICAL DESIGN CONCEPT

6.1 TECHNICAL SOLUTIONS AND SIZING OF THE BOILER

In order to analyze the reduction in the cost of energy, is presented a comparative analysis of the

cost of energy, if the facilities in which there are institutions of Mionica (phase I), using biomass

as a fuel.

Moisture

Caloric value

Unit price

(%) (kWh/t) (€/t) (€/kWh)

Biomass, wood chips

30 2.800 45

0,016

40 3.400 0,013

Table 26 – Unit price of wood chips depending on the type of quality wood

PHASE I, comparison of fuel

Energy produce by

Liquid Electricity Solid Total Switch

fuel

Unit Crude

oil "Dry

Vreoci" Biomass

Consumption of energy (kWh) 895.316 152.220 885.186 1.932.722 1.932.722

Emission CO2 (kg) 250.688 50.233 292.111 593.033 0

Efficiency of system (%) 83% 100% 68% 83%

Consumption of fuel (t) 98

310 751

Heated area (m2) 4.993 1.813 6.620 13.426 13.426

Unit fuel price (€/t), (€/kWh) 410 0,05 110 45

Annual energy cost (€) 40.206 7.611 34.093 81.910 33.802

Unit price of energy (€/m2) 8,05 4,20 5,15 6,10 2,52

Unit price of energy (€/MWh) 44,91 50,00 38,52 42,38 17,49

Table 27 – Comparative analysis of the cost of existing fuel and biomass

Based on the data collected, calculated annual fuel costs in buildings used by public institutions

of Mionica (Phase I) are estimated to be around 80.000 €. If the heating facilities of Phase I used

biomass-chips, annual fuel costs would come to amount around 33.000 €. The use of biomass

for heating of buildings in Phase I, can reduce annual fuel costs by the amount of 45.000-

50.000 €.

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Figure 9 – Annual energy cost by fuel, Phase I – comparison with biomass

Figure 10 – Unit price energy by fuel, Phase I – comparison with biomass

The program of switching existing fuels for heating with biomass in buildings used by public

institutions of Mionica requires a complex analysis in order to select the best technical and

economical solutions. Facilities of public institutions are dispersed around the town Mionica so

0.00

10.00

20.00

30.00

40.00

50.00

Liquid Electricity Solid Biomass

8.054.20 5.15

2.52

44.9150

38.52

17.49

Unit price of energy (€/m2), (€/MWh)

(€/m2) (€/MWh)

0

20,000

40,000

60,000

80,000

100,000

Liquid Electricity Solid Total

40,206

7,611

34,093

81,910

15,6592,662

15,482

33,803

Annual energy cost (€)

Existing fuel (€) Biomass, ships (€)

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that replacement of individual boilers require the construction of a new pipe system with district

heating.

Switching existing fuels used in existing boiler is not technically feasible, given the lack of any of

the facilities:

- Lack of space for boilers

- Lack of storage space for fuel

- Lack of chimney

If technical solutions for the development of individual boilers to biomass did exist, the

cost for making such a solution would be great, due to a large number of individual systems.

The solution to this problem is the creation of a unique plant-boiler with a system of pipeline for

district heating. Creating a pipeline of district heating system should enable the connection of the

concerned residential buildings. This district heating system represents an investment in

infrastructure, as it would also execute the heating system in the town of Mionica and the system

would be made economically viable.

Housing in the form of family homes is the most common way of living in Mionica. Bearing in

mind that the largest number of family houses were built in the period after 1970s, when

standards of energy efficiency were not yet developed, the present facilities belong to the group

of energy-inefficient. Heat load these facilities ranges from 120-160 W/m2. Family home in which

there is one household, has heated an area from 100-150 m2. Based on the present, the power

requirement for heating the family house of 12-24 kW, and the average value is 20 kW.

Picture 50 – Phase II, residential building with Picture 51 – Phase II, residential family

more apartments houses

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Connection to the district heating system with biomass heating plant would be carried out in two

phases:

- Phase 1: This stage is committed to connecting buildings or parts of the buildings with public administration function in Mionica.

- Phase 2: This stage is committed to connect:

Heating systems in buildings, that were been connected to one of the individual boilers from which they heated the buildings and offices of public administration.

Connect of residential and commercial buildings in town Mionica.

Thermal power and heating surface at this stage is determined as a prerequisite to the number of

residential buildings in the town.

Phase Heating

area Capacity

Specific power

(m2) (kW) (W/m2)

I 13.426 1.931 144

II 12.917 1.615 125

I+II 26.343 3.546 135

Table 28 – Data by connection phases

Connecting the buildings in phase II provides the efficiency of district heating systems because

the residential buildings are heated also after the end of working hours in public institutions. This

would increase the productivity of district heating systems, would boost the number of working

hours and the system would reduce costs due to low exploitation connected to a phase I.

The required installed capacity of the boiler in phases and level of efficiency of the heating

system calculated using the formula:

C

B

QQ

QB (kW) Installed boiler capacity

QC (kW) Net consume (capacity)

η

System efficiency

η = ηB · ηC

ηB

Boiler efficiency

ηC

Efficiency of district heating system

τ

Simultaneity factor

The calculated heat demand would be covered by installing heating plant of nominal heat output

presented in next table:

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Phase Capacity by phase - Qc

ηB ηC τ Calculate - QB Sizing of the boiler

(kW) (kW) (kW)

I 1.931 0,9 0,9 0,93

2.217 2.300

I+II 3.546 4.071 4.100

Table 29 – Calculate capacity of heating plant

Figure 11 – Diagram of the annual distribution of the heat capacity of the heating plant by phases

The number of hours of boiler operation can be determined using Sochinsky formula:

max

1

0

0

0

11 QQ

m

b

max

min0

Q

Q

maxQ

Qmm

Q - heating capacity at the time,

- time,

minQ - minimum heating capacity of boiler

0

500

1000

1500

2000

2500

3000

3500

4000

4500

0 500 1000 1500 2000 2500 3000 3500

kW

Working hours

Heating Capacity (kW) - Heat Load Curve

Phase I

Phase II

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maxQ - maximum heating capacity of boiler

mQ - required capacity

In winter, every heating system is subject to great load fluctuations that depend on the weather

and user’s habits. The maximum output is only utilized very briefly during periods of very cold

weather. In contrast, the boiler is operated for long intervals at low load. It is therefore important

for the boiler to be operated efficiently during off-peak periods. This can be achieved in one of the

following ways:

1. A conventional oil boiler supplements the wood one to cover the peaks and act as a back-

up system. The biomass boiler’s capacity is reduced to around 60-70% of the maximum

output. It can thus provide 90-95 % of the power required for heating, as the demand

peaks are only of short duration. To guarantee 100 % supply security, the capacity of the

oil boiler should be able to cover the maximum output. This solution is particularly good if

an existing oil heating system can be used.

2. The biomass boiler can provide the maximum capacity, while a buffer (a hot water tank)

covers short-term load fluctuations and ensures that the boiler can be operated efficiently

during off-peak periods. This solution has the advantage that only one fuel is required.

3. Combination of two biomass boilers. The second boiler increases the reliability of supply

(for this reason it should have a separate fuel supply system) and ensures that the

heating operates efficiently, even in off-peak periods.

Review of solutions offered in the analysis show that the optimal model is boiler with a biomass

boiler assisted by the existing boilers with fuel oil during periods of high consumption. This would

reduce the investment costs and the use of the existing boilers and installation of boiler at

"Vojvode Mišića 30A". The existing boilers with fuel oil have a power of 750 and 900 kW.

Phase Calculate Heating

Plant capacity

participation biomass

boiler

Capacity of boiler Heating Plant

capacity Biomass Oil Oil

(kW) (kW) (kW) (kW) (kW)

I 2.217 60% 1.400 750 900 3.050

I+II 4.071 60% 2.500 750 900 4.150

Table 30 – Calculation of power biomass boiler and heating plant

Performed by a solution sized biomass boiler, allows to start connecting buildings from the third

phase will be necessary to engage boilers with fuel oil.

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6.2 FUEL CONSUMPTION AND UNIT PRICE OF FUEL-ENERGY

Fuel consumption for heating buildings depends also on metrological conditions (ambient

temperature and wind speed) and usage of buildings. Analysis of the results shows that buildings

with shops, offices and public institutions, turn off heating after the end of the working time.

Buildings that are occupied by public institutions of municipalities Mionica, will be connected in

the first phase. Residential buildings are used throughout the day, all weekend and in all non-

working days and have are greater unit heat consumption presented in kWh/kW.

Phase Capacity Energy

consumption Participation in the

work of boilers Energy produced

from boilers Participation fuel in

produced energy

Specific Annual Biomass

Crude oil

Biomass Crude

oil Biomass

Crude oil

(kW) (kWh/kW) (MWh) (%) (%) (MWh) (MWh) (%) (%)

I 1.931 1.001 1.933 100% 0% 1.933 0 100% 0%

II 1.615 1.405 2.269

I+II 3.546 4.202 92% 8% 3.866 336 92% 8%

Table 31 – Participation fuel by phases in produced energy

By connecting the objects from the first phase of the district heating system, thermal power would

not be greater than the power biomass boiler, so that the fuel costs would only relate to the

biomass. By connecting facilities in phase II, produced energy would contain 92 % share of

biomass and an 8 % share of the heavy oil. Calculation for different stages using present energy

price would be the following:

Phase

Participation fuel in produced energy

Unit price by fuel Unit price of fuel by

phase Biomass Crude oil Biomass Crude oil

(%) (%) (€/MWh) (€/MWh) (€/MWh)

I 100% 0%

17,49 44,91

17,49

II 0% 0% -

I+II 92% 8% 19,68

Table 32 – Calculation of unit price of fuel by phases

Calculation of unit price of fuel, in phases, was performed for the main values of quality and unit

price of biomass and fuel oil. The share of fuel oil as a fuel in the total energy produced can be

lowered. The share of fuel oil used in energy production depends on the external temperature in

winter. If outside temperatures are not extremely low, the use of fuel oil as an additional energy

source will not be necessary.

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6.3 HEATING PLANT, LOCATION AND FACILITIES

Location intended for the construction of new power

plants located on cadastral plot 115/1 KO town

Mionica, surface 1.950m2. The location is in the

central town area and an existing access road.

Picture 52 – Cadastral parcel 115/1

Figure 12 – Situation plan of heating plant

Within the grounds there will be

buildings and facilities provided for:

Building A:

- Space to accommodate biomass boiler 250 m2

- Space to accommodate daily tank of woodchips 40 m2

- Space to accommodate the relocated boiler fuel oil 50 m2

- The area of mechanical processing equipment sale 80 m2

- Office space of 40 m2

Building B:

- Space to accommodate a relocated above ground storage tank (V = 30 m3) 80 m2

Building C:

- Space for storing fuel woodchip, area of 260 m2 and useful height of 8 m.

The total area of buildings is 800 m2 and the degree of availability of cadastral parcel is 40 %. If

needed, it is possible to expand the land intended for the boiler in to the schoolyard.

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The heat source consists of a boiler for combustion of biomass with a nominal thermal capacity

of 2.500 kW. Existing boilers using heavy fuel oil would be moved from the existing boiler house

with the address Živojina Mišića 30A. These boilers have power of 700 and 950 kW and they

would be used as a source of backup in the case of covering peak loads. The regime of the boiler

temperature is 110/70°C. Maximum operating pressure is 6 bar. The minimum temperature

return to boiler is 60°C. It is planned to install a buffer tank volume of 15 m3 in order to optimize

the operation of the heat source. Circulator pumps are located between the boiler and buffer

tank, as well as three way mixing valve in order to provide protection for the cold parts of boilers.

For the purposes of technical calculation, we used the documentation made by "Topling-heating

Beograd", including additional mechanisms for feeding fuel, extracting exhaust gases and ash.

For the purposes of circulation in the distribution system circulation pump with inconstant flow

and pressure sensors is planned.

New facility for keeping biomass boiler will be needed, with the size of the boiler room useful area

of 250 m2 and necessary height. Right next to the building with the boiler, facility for the storage

of fuel - wood is needed. Storage of sufficient capacity to ensure the operation in the coldest

month of the winter season should be placed in the plant.

Taking into account the relative ratio of days with temperatures above 0°C in December and

January, and the entire winter season, the conclusion is that the capacity should be sufficient to

provide 25 % of the energy needed for the season, or 320k wood chips M30 moisture. The

volume of storage for wood chips should be 800 m3 (gross volume 20m x 13m x 8m).

6.4 CONCEPT OF DISTRICTS HEATING NETWORK

6.4.1 CONCEPT OF DISTRICTS HEATING NETWORK

Heating network is designed to connect objects in first and second phase, and to enable the

connection of new users. Since new users will later be added, pipe network is designed for larger

capacity than needed in phase I and II, and the ends of the pipe network are predicted with larger

diameters in order to extend network later. The network of pipes consists of pre-insulated steel

pipes that direct the flow at pre-prepared soil.

Distribution network will contain chambers with bulk

head valves.

Picture 53 – Pre-insulated pipes for the district

heating network (Source: Website of the company Konvar d.o.o. Belgrade)

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The quality of the pipes corresponds to 1.0254 i.e. P235 TR1 according to EN10217 T1 (or

St.37.0 of the technical requirements and delivery conditions according to DIN1626). The

operating temperatures at the threshold of the heat source are:

- The flow temperature is 110℃,

- The return temperature is 70℃

The difference in altitude between the highest point of the town (on the outskirts) and the lowest

point is less than 20 m, so that the lowest required operating pressure in the pipeline is 6 bar.

Before designing heating network, it is necessary to prepare a document on the municipal level,

which will be defined Mionica building strategy and direction of the future development of the

town center. Concept plan of heating network is preliminary and designed for budget

expenditures planning.

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6.4.2 CONCEPT OF DISTRICTS HEATING NETWORK

Based on the position of public institution buildings, as well as on the position of the main town

streets, apartment buildings and individual houses, heating network plan would be:

Figure 13 - Position of the drawings heating network

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Figure 14 – Drawing No.1 of the heating network

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Figure 15 – Drawing No.2 of the heating network

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Figure 16 – Drawing No.3 of the heating network

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Figure 17 – Drawing No.4 of the heating network

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Figure 18 – Drawing No.5 of the heating network

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Figure 19 – Drawing No.6 of the heating network

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Figure 20 – Drawing No.7 of the heating network

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Figure 21 – Drawing No.8 of the heating network

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Dimensions of heating pipes for the network calculated with the planned reserve for future additions to the network:

Within the analysis, heating network is divided by the routes and transparent points, as shown on the drawings:

Table 33 – Sizing the pipe network by routes

According to prices of units needed to create a network of pre-insulated pipes, the cost of building heating network is estimated to 300.000 €. The adoption costs increase by 25 % due to the construction of the chamber with necessary fittings and installation fittings leading to the total costs of the heating network of 375.000 €.

Q - The amount of heat transported by the pipeline

w - Velocity of flow of the working fluid

ρ - Density of the working fluid

cp - Specific heat capacity

Δθ - Temperature difference

Type Route Distance Capacity - phase Unit price of network

of from to I Reserve-II Dimension Total

route (m) (kW) (kW)

main A B 30 0 500 DN50 125 3.750

main B D 5 400 500 DN65 135 675

main D D1 27 400 950 DN80 145 3.915

main D1 E 40 470 880 DN80 145 5.800

main E F 63 570 780 DN80 145 9.135

main F G 85 710 640 DN80 145 12.325

main H 97 250 100 DN50 125 12.125

main H J 175 250 650 DN65 135 23.625

main J K 210 250 650 DN65 135 28.350

main L M 50 100 100 DN40 110 5.500

main M O 98 100 800 DN65 135 13.230

main O P 22 350 1000 DN80 145 3.190

main P R 265 350 1000 DN80 145 38.425

main R S 140 380 970 DN80 145 20.300

main S T 90 480 870 DN80 145 13.050

main U V 48 750 600 DN80 145 6.960

main V G 270 1480 2020 DN125 200 54.000

main G W 50 2190 2810 DN150 220 11.000

connection C 20 400 0 DN65 135 2.700

connection D1 20 70 0 DN40 110 2.200

connection E 30 100 0 DN40 110 3.300

connection F 20 140 0 DN40 110 2.200

connection H 10 250 0 DN50 125 1.250

connection L 50 200 0 DN40 110 5.500

connection O 20 250 0 DN50 125 2.500

connection R 35 470 0 DN50 125 4.375

connection S 35 100 0 DN40 110 3.850

connection U 40 750 0 DN80 145 5.800

p

incw

QD

4

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Calculation of operating point of the network pump is present in table:

Table 34 – Calculation of operation point of network pump

The operating point of the network pump (or a pair of network pumps, depending on the solution adopted in the preliminary design) is as follows:

- V = 121 m3/h - H = 465 kPa

The operating point is selected based on the pressure drop in the hydraulically least favorable heating substation. In order to save electricity for pumping the working fluid, it is necessary to incorporate the engine frequency controls so as to optimize the operation of network pumps and synchronize it with the actual required thermal energy to be delivered to the consumer.

6.5 CONCEPT OF HEAT SUBSTATIONS District heating transfer stations provide the link between district heating suppliers and customers’ systems. They incorporate the necessary equipment to tailor the supplied heat to the needs of the object. Indirect connections (in which district heating and in-house systems are hydraulically isolated) incorporate components to separate the systems (heat exchanger), to limit the flow volume, regulate the secondary supply temperature and measure the energy consumption. Substations are designed for installation in areas which are currently housing boiler rooms. The existing boilers will be reviewed in terms of functionality. Those that do not meet the minimum requirements for safe operation will be removed from the substations (current boiler rooms). Those that meet the minimum technical requirements will remain as a backup heat source in the

Flow Lenght Speed

from to I II I+II diemeter wall unit total friction local TOTAL

kW kW kW l/h m mm mm m/s Pa/m kPa kPa kPa

W G 2.190 2.760 4.950 109.919 50 168,3 4,5 1,533 140,68 7,034 5,668 12,701

G V 1.480 2.120 3.600 79.941 270 139,7 4,0 1,631 201,57 54,4 6,4 60,839

T S 480 870 1.350 29.978 90 88,9 3,2 1,559 331,36 29,8 5,9 35,682

T S 480 870 1.350 29.978 90 88,9 3,2 1,559 331,36 29,8 5,9 35,682

S R 380 870 1.250 27.757 140 88,9 3,2 1,443 284,56 39,8 5,0 44,862

R P 350 870 1.220 27.091 265 88,9 3,2 1,408 271,21 71,9 6,7 78,571

P O 350 870 1.220 27.091 22 88,9 3,2 1,408 271,21 6,0 4,8 10,752

O M 100 870 970 21.540 98 88,9 3,2 1,120 172,45 16,9 3,0 19,925

M L 100 100 200 4.441 50 48,3 2,6 0,846 227,17 11,4 3,5 14,812

MAX: 109.919 SUM: 313,8

Security increase: 10% 10992 Security increase: 25% 78,5

Total for calculate: 120.910 heat excanger: 30

Adopted for calc. (l/h): 121.000 reserve for II+III phase: 40

Total for calculate: 462,3

Adopted for calc. (kPa): 465

Route Capacity - Phase Dimension of pipe Pressure drop

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event that, for any reason, the heating system goes into breakdown of operational mode, or to serve as back up heating source if there is an increase of heat consumption which cannot be foreseen at the moment. The operating pressure in the primary part of the substation will amount to a maximum of 6 bar and will correspond to the parameters of the heating network, while the temperature range will be 110/70℃ in the primary part and 80/60℃ in the secondary part. The further development of the heating system, with a focus on the connection of individual (single-family) residential buildings, would involve the installation of heating substations of the packet type in each building, with identical operating parameters as for heating substations in public institutions or commercial users.

1 – External sensor 2 – Thermometer 3 – Manometer 4 – Sensor 5 – Air vent 6 – Drainage 7 – Prim. Connection DHW 8 – Safety thermostat 9–Conection to expansion 10 - Controller 11 – Strainer 12 – Heat meter 13 – Ball valve 14 – Safety valve 15 Heat exchanger

Figure 22 – Scheme of compact substation DSA 1 Mini Danfoss, (Source: Website of the

company Danfoss)

Figure 23 – Figure 24 –

Substation DSA 1 Mini Danfoss, Substation DSP-MAXI Danfoss (Source: Website of the company Danfoss) (Source: Website of the company Danfoss)

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Substations model DSP-MAXI are designed for strength greater than 100 kW. Substations DSA1-Mini are designed to power up to 100 kW and can be mounted on the wall. Heat substation dimensioned according to the size of the heat loss of the building. The buildings which have both residential and commercial property, predict separate heating substations for residential and commercial part. The reconstruction of the existing boiler rooms should be executed in a way that does not change the working fluid distribution system and the heating substation is connected to the existing supply and return collectors. The existing circulation pumps should be replaced by more energy-efficient units, with motors of variable frequency, in order to achieve savings in power consumption and at the expense of heat dissipation in apartments.

No Institution Address Type of Power Price

Building substation

(kW) (€)

1 Building of municipality Vojvode Mišića 30 DSP-MAXI-32 400 6.000

2 Building of municipality Vojvode Mišića 28 DSA 1-75 70 3.800

3 Police station Vojvode Mišića 26 DSP-MAXI-10 100 4.800

4 Public water & sanitary comp. Učitelja Čede Protića 1-7 DSP-MAXI-12 140 5.200

5 Primary school "Milan Rakić" Kneza Grbovića 29 DSP-MAXI-32 550 6.000

6 Secondary school Mionica Kneza Grbovića 29A DSP-MAXI-32 250 5.500

7 Health center "Mionica" Kneza Grbovića 65 DSP-MAXI-32 250 5.500

8 Kindergarten "Neven" Dr. Živorada Višića 29 DSA 1-75 70 3.800

9 Directorate for building Mionica Mite Rakića 1 DSA 1-30 30 3.500

10 Residential building Vojvode Mišića 52 DSP-MAXI-32 250 5.500

11 Commercial offices Vojvode Mišića 54 DSA 1-30 30 3.500

12 Cultural center and offices Dr. Jove Aleksića 4 DSA 1-30 30 3.500

13 Theater hall Dr. Jove Aleksića 4 DSA 1-75 70 3.800

TOTAL: 60.400

Table 35 – Review substation facilities at Phase I

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7. PRELIMINARY COST ESTIMATES

The task of this study has a number of levels:

- Switch of fuel for heating to the biomass in public buildings in Mionica

- Construction of district heating distribution system in manner which will enable to

join also future residential and commercial buildings.

Fuel switch to biomass heating systems in public buildings in Mionica should provide less heating

costs, reduce CO2 emissions and enable environmental protection as well as greater activation of

the local economy with the aim of growing and processing of biomass. It is necessary that

investment at this level provide greater financial savings in the budget of the public administration

of the municipality Mionica, and thus a quick return on investment.

Construction of the district heating system is planned to link the objects of public administration of

the municipality Mionica and to allow the connection of residential and commercial properties in

Mionica. The construction of such a system is an investment in the construction of the

infrastructure facility. Constructing the distribution system as an infrastructure facility would be of

importance to the local community and the local authority to:

- Increase the quality of life in the town

- Reduce CO2 emissions

- Preserve environment

- Increase local economic activity due to the need of the planning of growing and

processing of biomass

In order to find the best solutions and determine the viability of the investment, the preliminary

cost analysis consists of three scenarios:

- Scenario 1; Scenario is conditioned by the assumption that there is a heating grid

on which the related facilities of public administration of the municipality Mionica

are connected to.

- Scenario 2; Scenario includes the construction of the heating grid that would be

dimensioned only for public administration of the municipality Mionica (Phase I).

- Scenario 3; This scenario includes the construction of the heating grid that would

have been dimensioned for connection of public administration of the municipality

Mionica and subsequent connection of residential and commercial buildings

(Phase I + II).

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7.1 PRELIMINARY COST ESTIMATES, SCENARIO 1

The preliminary cost estimate includes investment and operating costs annually. Investment

expenses would include the purchase of equipment and boilers, necessary civil works,

mechanical works and electrical works on the construction of a new boiler, the heating grid, the

relocation of the existing boiler with fuel oil, and connecting objects to a new distribution system.

Operating costs are increased per year for: biomass 0,2%, heavy oil 1,5%, electricity 2,5%, water

0,5%, labor costs 2%.

Position Investment costs - Description - SCENARIO 1 (€)

1. Access road and landscaping plots for the new building and for the route of new pipeline.

15.000

2. Construction of the fuel storage facility and new boiler room the total area 450m2 50.000

3. Energy plant, mechanical and electrical equipment works (except boilers) 30.000

4. Biomass boilers and associated equipment 1400 kW 127.000

5. Chimneys 13.000

6. Construction of heating grid for connecting the phase I 0

7. Heating substations for public administration objects (phase I) 0

8. Adaptation of spaces for heating substations in public administration objects (phase I) 0

8. Relocation of existing boilers with fuel oil 0

9. Documentation, construction management, commissioning of the plant and heating grid 30.000

10. Unforeseen costs 20.000

CAPEX (Capital Expenditure) 285.000

Table 36 – Investment costs for scenario 1 (Source: Own calculations)

Position Operational costs - Description - SCENARIO 1 Unit Cost

1. Maintenance % CAPEX / a 1,0

2. Electricity - costs of the plant kWhel. / MWhht. 2

3. Labor costs € / a 15.000

4. Removal and disposal of ash € / t 50

5. Chemical treatment of circulating water € / MWhht. 0,5

6. Unit price of fuel, Biomass cost, quality M30 € / MWhht. 14,50

7. Heavy oil cost € / MWhht. 37,30

8. The costs of facilities servicing € / a 2.000

9. Insurance costs % CAPEX / a 0,5

10. Depreciation of equipment and installations % / a 5

11. Depreciation of buildings % / a 1

12. Boiler efficiency % 90

13. Efficiency of district heating system % 90

Table 37 – Operational costs for scenario 1 (Source: Own calculations)

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7.2 PRELIMINARY COST ESTIMATES, SCENARIO 2

The preliminary cost estimate includes investment and operating costs annually. Investment

expenses would include the purchase of equipment and boilers, necessary civil works,

mechanical works and electrical works on the construction of a new boiler, the heating grid, the

relocation of the existing boiler with fuel oil, and connect objects to a new distribution system.

Operating costs are increased per year for: biomass 0,2%, heavy oil 1,5%, electricity 2,5%, water

0,5%, labor costs 2%.

Position Investment costs - Description - SCENARIO 2 (€)

1. Access road and landscaping plots for the new building and for the route of new pipeline. 15.000

2. Construction of the fuel storage facility and new boiler room the total area 450m2 50.000

3. Energy plant, mechanical and electrical equipment works (except boilers) 30.000

4. Biomass boilers and associated equipment 1400 kW 127.000

5. Chimneys 13.000

6. Construction of heating grid for connecting the phase I 345.000

7. Heating substations for public administration objects (phase I) 60.400

8. Adaptation of spaces for heating substations in public administration objects (phase I) 10.000

9. Relocation of existing boilers with fuel oil 20.000

10. Documentation, construction management, commissioning of the plant and heating grid 40.000

11. Unforeseen costs 20.000

CAPEX (Capital Expenditure) 725.400

Table 38 – Investment costs for scenario 2 (Source: Own calculations)

Position Operational costs - Description - SCENARIO 2 Unit Cost

1. Maintenance % CAPEX / a 1,0

2. Electricity - costs of the plant kWhel. / MWhht. 2

3. Labor costs € / a 22.000

4. Removal and disposal of ash € / t 50

5. Chemical treatment of circulating water € / MWhht. 0,5

6. Unit price of fuel, Biomass cost, quality M30 € / MWhht. 14,50

7. Heavy oil cost € / MWhht. 37,30

8. The costs of facilities servicing € / a 2.000

9. Insurance costs % CAPEX / a 0,5

10. Depreciation of equipment and installations % / a 5

11. Depreciation of buildings % / a 1

12. Boiler efficiency % 90

13. Efficiency of district heating system % 90

Table 39 – Operational costs for scenario 2 (Source: Own calculations)

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7.3 PRELIMINARY COST ESTIMATES, SCENARIO 3

The preliminary cost estimate includes investment and operating costs annually. Investment

expenses would include the purchase of equipment and boilers, necessary civil works,

mechanical works and electrical works on the construction of a new boiler, the heating grid, the

relocation of the existing boiler with fuel oil, and connect objects to a new distribution system.

Operating costs are increased per year for: biomass 0,2%, heavy oil 1,5%, electricity 2,5%, water

0,5%, labor costs 2%.

Position Investment costs - Description - SCENARIO 3 (€)

1. Access road and landscaping plots for the new building and for the route of new pipeline. 15.000

2. Construction of the fuel storage facility and new boiler room the total area 800m2 90.000

3. Energy plant, mechanical and electrical equipment works (except boilers) 40.000

4. Biomass boilers and associated equipment 2500 kW 215.000

5. Chimneys 15.000

6. Construction of heating grid for connecting the phase I+II+III 375.000

7. Heating substations for public administration objects (phase I) 60.400

8. Adaptation of spaces for heating substations in public administration objects (phase I) 10.000

9. Relocation of existing boilers with fuel oil 20.000

10. Documentation, construction management, commissioning of the plant and heating grid 45.000

11. Unforeseen costs 20.000

CAPEX (Capital Expenditure) 905.400

Table 40 – Investment costs for scenario 3 (Source: Own calculations)

Position Operational costs - Description - SCENARIO 3 Unit Cost

1. Maintenance % CAPEX / a 1,0

2. Electricity - costs of the plant kWhel. / MWhht. 2

3. Labor costs € / a 22.000

4. Removal and disposal of ash € / t 50

5. Chemical treatment of circulating water € / MWhht. 0,5

6. Unit price of fuel, Biomass cost, quality M30 + heavy oil € / MWhht. 16,33

7. Heavy oil cost € / MWhht. 37,30

8. The costs of facilities servicing € / a 3.000

9. Insurance costs % CAPEX / a 0,5

10. Depreciation of equipment and installations % / a 5

11. Depreciation of buildings % / a 1

12. Boiler efficiency % 90

13. Efficiency of district heating system % 90

Table 41 – Operational costs for scenario 3 (Source: Own calculations)

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8. PRELIMINARY FINANCIAL ANALYSIS Sustainability of the plant will be analyzed for a period of 20 years. Consumption of thermal energy in the future will depend on local climate change. Reduction in thermal energy consumption per unit of installed capacity due to local climate change will be 0.1% per annum. Preliminary financial analysis is carried out for each of the three scenarios.

8.1 PRELIMINARY FINANCIAL ANALYSIS, SCENARIO 1

Preliminary financial analysis for scenario 1, contains table of cost of energy production, figure of

comparative analysis of cost heat energy and savings and figure of cash flow balance.

Figure of comparative analysis of cost of heat energy and savings and figure of cash flow

balance are given in the Appendix.

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

Biomass 31.071 31.102 31.133 31.164 31.196 31.227 31.258 31.289 31.320 31.352

Heavy fuel 6.547 6.638 6.731 6.825 6.921 7.018 7.116 7.215 7.316 7.419

Ash 1.719 1.717 1.716 1.714 1.712 1.711 1.709 1.707 1.706 1.704

Electricity 1.352 1.384 1.417 1.451 1.486 1.522 1.558 1.596 1.634 1.673

Water 966 969 973 977 981 985 989 993 997 1001

Summary 41.655 41.812 41.971 42.132 42.296 42.462 42.630 42.800 42.973 43.148

Employee – Labor costs 15.000 15.300 15.606 15.918 16.236 16.561 16.892 17.230 17.575 17.926

Maintenance 2.850 2.850 2.850 2.850 2.850 2.850 2.850 2.850 2.850 2.850

Insurance costs 1425 1425 1425 1425 1425 1425 1425 1425 1425 1425

Summary 19.275 19.575 19.881 20.193 20.511 20.836 21.167 21.505 21.850 22.201

Depreciation 5.340 5.340 5.340 5.340 5.340 5.340 5.340 5.340 5.340 5.340

Total costs 66.270 66.727 67.192 67.665 68.147 68.638 69.137 69.645 70.162 70.689

2028 2029 2030 2031 2032 2033 2034 2035 2036 2037

Biomass 31.383 31.414 31.445 31.477 31.508 31.540 31.571 31.603 31.634 31.666

Heavy fuel 7.522 7.627 7.734 7.842 7.952 8.063 8.176 8.290 8.406 8.524

Ash 1.702 1.700 1.699 1.697 1.695 1.694 1.692 1.690 1.689 1.687

Electricity 1.713 1.754 1.796 1.839 1.883 1.929 1.975 2.022 2.071 2.120

Water 1005 1009 1013 1017 1021 1025 1029 1033 1037 1041

Summary 43.325 43.505 43.687 43.872 44.060 44.250 44.443 44.639 44.837 45.038

Employee – Labor costs 18.285 18.651 19.024 19.404 19.792 20.188 20.592 21.004 21.424 21.852

Maintenance 2.850 2.850 2.850 2.850 2.850 2.850 2.850 2.850 2.850 2.850

Insurance costs 1425 1425 1425 1425 1425 1425 1425 1425 1425 1425

Summary 22.560 22.926 23.299 23.679 24.067 24.463 24.867 25.279 25.699 26.127

Depreciation 5.340 5.340 5.340 5.340 5.340 5.340 5.340 5.340 5.340 5.340

Total costs 71.225 71.771 72.326 72.891 73.467 74.053 74.650 75.257 75.876 76.505

Table 42 – Costs of energy production, SCENARIO 1; (Source: Own Calculations)

Scenario 1 is theoretical, because it assumes the existence of heating grids linking the public

buildings in Mionica. This scenario, with the condition, shows in a good way the cost savings of

heating energy if biomass is used instead of existing fuels. If different fuels are implemented in

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existing heating systems, comparative analysis was performed according to calculated unit prices

of energy, and it is shown in table 15.

If we assume that the costs of heating plants are approximately the same in the case of existing

fuels (heavy oil, coal, electricity), we can conclude that biomass proceeds fast return on invested

funds.

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8.2 PRELIMINARY FINANCIAL ANALYSIS, SCENARIO 2

Preliminary financial analysis for scenario 2 contains table of cost of energy production, figure of

comparative analysis of cost of heat energy and saving and figure of cash flow balance.

Figure of comparative analysis of cost of heat energy and savings and figure of cash flow

balance are given in the Appendix.

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

Biomass 31.071 31.102 31.133 31.164 31.196 31.227 31.258 31.289 31.320 31.352

Heavy fuel 6.547 6.638 6.731 6.825 6.921 7.018 7.116 7.215 7.316 7.419

Ash 1.719 1.717 1.716 1.714 1.712 1.711 1.709 1.707 1.706 1.704

Electricity 1.352 1.384 1.417 1.451 1.486 1.522 1.558 1.596 1.634 1.673

Water 966 969 973 977 981 985 989 993 997 1001

Summary 41.655 41.812 41.971 42.132 42.296 42.462 42.630 42.800 42.973 43.148

Employee – Labor costs 22.000 22.440 22.889 23.347 23.814 24.290 24.776 25.271 25.777 26.292

Maintenance 7.254 7.254 7.254 7.254 7.254 7.254 7.254 7.254 7.254 7.254

Insurance costs 3627 3627 3627 3627 3627 3627 3627 3627 3627 3627

Summary 32.881 33.321 33.770 34.228 34.695 35.171 35.657 36.152 36.658 37.173

Depreciation 17.602 17.602 17.602 17.602 17.602 17.602 17.602 17.602 17.602 17.602

Total costs 92.138 92.735 93.343 93.962 94.592 95.234 95.888 96.554 97.232 97.923

2028 2029 2030 2031 2032 2033 2034 2035 2036 2037

Biomass 31.383 31.414 31.445 31.477 31.508 31.540 31.571 31.603 31.634 31.666

Heavy fuel 7.522 7.627 7.734 7.842 7.952 8.063 8.176 8.290 8.406 8.524

Ash 1.702 1.700 1.699 1.697 1.695 1.694 1.692 1.690 1.689 1.687

Electricity 1.713 1.754 1.796 1.839 1.883 1.929 1.975 2.022 2.071 2.120

Water 1005 1009 1013 1017 1021 1025 1029 1033 1037 1041

Summary 43.325 43.505 43.687 43.872 44.060 44.250 44.443 44.639 44.837 45.038

Employee – Labor costs 26.818 27.354 27.901 28.459 29.029 29.609 30.201 30.805 31.421 32.050

Maintenance 7.254 7.254 7.254 7.254 7.254 7.254 7.254 7.254 7.254 7.254

Insurance costs 3627 3627 3627 3627 3627 3627 3627 3627 3627 3627

Summary 37.699 38.235 38.782 39.340 39.910 40.490 41.082 41.686 42.302 42.931

Depreciation 17.602 17.602 17.602 17.602 17.602 17.602 17.602 17.602 17.602 17.602

Total costs 98.626 99.342 100.072 100.815 101.571 102.342 103.127 103.927 104.741 105.571

Table 43 – Costs of energy production, SCENARIO 2; (Source: Own Calculations)

Scenario 2 proposes a plan to build a new biomass boiler and building heating grid that would

connect public buildings in Mionica. The power of the new boiler house and a new distribution

system would be provided only to public facilities of Mionica municipality which are planned for

the connection in the first phase.

Even if we assume that the cost of heating is the same as in the case of using existing fuel (fuel

oil, coal, electricity), savings can not compensate for the cost of the construction of the new boiler

and heating grids.

Building a system according to scenario 2 does not allow the planned savings and return on

investment funds.

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8.3 PRELIMINARY FINANCIAL ANALYSIS, SCENARIO 3

Scenario 3 is different from the previous two scenarios, due to the larger heating capacity which

users of district heating systems have. Heating capacity of district heating in scenario 3, provides

connecting in phases:

- Phase 1. Construction of the district heating system for connection of public facilities of

Mionica municipality. Heating area 13.426 m2, the heat capacity of 1.931 kW, the annual

consumption of 1.933 MWh/a.

- Phase 2. Process of accession to the heating of residential and commercial buildings.

Heating area of 12.917 m2, the heat capacity of 1.615 kW, the annual consumption of

2.269 MWh/a.

It is expected that the connection of facilities in Phase II is achieved in a period of 7 years. In the

first year since of project it is not expected to join any object. It is expected that the largest

number of buildings is connected in the fourth and fifth year of the commencement of work. The

planned connection of facilities from Phase II is shown in the table.

Phase II 2018 2019 2020 2021 2022 2023 2024 total

Percentage of connection (%) 0 5 15 30 35 10 5 100

Increase FOR heating area (m2) 0 646 1938 3875 4521 1292 646 12.917

Increase FOR capacity (kW) 0 81 242 485 565 162 81 1.615

Increase FOR consumption (MWh) 0 113 340 679 791 226 113 2.261

Table 44 – Planned of connecting facilities of Phase II, SCENARIO 3; (Source: Own

Calculations)

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Figure 25 – Diagram of the annual increase capacity of consumers

Figure 26 – Planned production of energy in the period 2018 – 2037

Within the scenario 3, financial benefits are savings from replacing the existing fuel and sales of

thermal energy to future users. Current prices of heating in the municipality of Mionica are

calculated according to the heated areas and are dependent on the type of facility and the type of

fuel used for heating.

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Producet heat energy (MWh)

1500

2000

2500

3000

3500

4000

Capacity of the connected consumers (kW)

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(€/m2a) Coal Heavy fuel

Resident space 7,24 9,96

Business space 10,85 16,42

Table 45 – Unit annual cost of heating in Mionica, year 2016

In further analysis assumption is that the price of heating unit, after the construction of the

distribution of heating systems, will remain the same as the current price for a residential area

that is heated by coal furnace. Based on the adopted assumptions, preliminary financial analysis

for scenario 3, contains the table of cost of energy production, figure of financial saving and

earning and figure of cash flow balance.

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

Biomass 31.071 32.928 38.445 49.462 62.332 66.061 67.962 68.030 68.098 68.166

Heavy fuel 6.547 7.028 8.312 10.833 13.829 14.846 15.471 15.688 15.907 16.130

Ash 1.719 1.818 2.119 2.720 3.421 3.619 3.716 3.712 3.708 3.704

Electricity 1.352 1.465 1.750 2.303 2.969 3.219 3.388 3.469 3.552 3.637

Water 966 1026 1202 1551 1960 2084 2150 2159 2167 2176

Summary 41.655 44.267 51.828 66.869 84.512 89.829 92.687 93.057 93.433 93.813

Employee – Labor costs 22.000 22.440 22.889 23.347 23.814 24.290 24.776 25.271 25.777 26.292

Maintenance 9.054 9.054 9.054 9.054 9.054 9.054 9.054 9.054 9.054 9.054

Insurance costs 4527 4527 4527 4527 4527 4527 4527 4527 4527 4527

Summary 35.581 36.021 36.470 36.928 37.395 37.871 38.357 38.852 39.358 39.873

Depreciation 21.862 21.862 21.862 21.862 21.862 21.862 21.862 21.862 21.862 21.862

Total costs 99.098 102.150 110.160 125.659 143.768 149.562 152.906 153.771 154.652 155.548

2028 2029 2030 2031 2032 2033 2034 2035 2036 2037

Biomass 68.234 68.302 68.370 68.438 68.507 68.575 68.643 68.712 68.781 68.849

Heavy fuel 16.355 16.584 16.816 17.051 17.289 17.531 17.776 18.025 18.277 18.533

Ash 3.701 3.697 3.693 3.690 3.686 3.682 3.679 3.675 3.671 3.668

Electricity 3.725 3.814 3.905 3.999 4.095 4.193 4.294 4.396 4.502 4.610

Water 2185 2193 2202 2211 2220 2229 2238 2246 2255 2264

Summary 94.199 94.590 94.987 95.389 95.797 96.210 96.630 97.055 97.486 97.924

Employee – Labor costs 26.818 27.354 27.901 28.459 29.029 29.609 30.201 30.805 31.421 32.050

Maintenance 9.054 9.054 9.054 9.054 9.054 9.054 9.054 9.054 9.054 9.054

Insurance costs 4527 4527 4527 4527 4527 4527 4527 4527 4527 4527

Summary 40.399 40.935 41.482 42.040 42.610 43.190 43.782 44.386 45.002 45.631

Depreciation 21.862 21.862 21.862 21.862 21.862 21.862 21.862 21.862 21.862 21.862

Total costs 156.460 157.387 158.331 159.291 160.268 161.262 162.274 163.303 164.351 165.417

Table 46 – Costs of energy production, SCENARIO 3; (Source: Own Calculations)

Scenario 3 assumes that in the period of 7 years all objects from the phase II will be connected,

which would create additional financial income. The financial viability of the district heating

system, which would be built according to scenario 3, is depending on the connection of as many

new users in the shortest possible period.

Based on the additional income generated by the sale of thermal energy in this new, sustainable

district heating system, in the eighteenth year of the start of exploitation there will be an

opportunity for positive business.

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The advantage of this scenario is that the municipality formed a sustainable infrastructure system

for district heating, which increases the quality of life and creates a positive effect on the

environment.

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9. PROJECT EVALUATION

Based on the analysis of three proposed scenarios, the construction of a biomass boiler and

district heating system would be justified under the condition that with the connection of public

facilities make the connection of a large number of residential and commercial buildings possible

in the shortest time frame.

Under scenario 3, and on the basis of investment costs (table 40) and operating costs for the

period of 20 years (table 41, 46) economic indicators are calculated an given in the Table 47.

Unit cost heat energy Unit Value

The investment value - Capex € 905.400

Annual production of heat energy (first year of operation) MWh / a 1.931

Total heat production (20 years) MWh 75.365

The operation value (20 years) - Opex € 2.955.617

LUC - Levelized Unit Costs € / MWh 51,2

Table 47 – Unit cost heat energy (Source: Own calculations)

Economic indicators can be defined investment plan are:

- (F) IRR - (Financial) Internal Rate of Return - (E) IRR - (Economy) Internal Rate of Return - (F) NPV - (Financial) Net Present Value - (E) NPV - (Economy) Net Present Value

Techno economic figures for period from nest 20 years that are shown in the appendix are:

- Comparative analysis of cost heat energy and saving, scenario 1 and 2 - Saving from fuel switch and earning from phase II+III, scenario 3 - Cash flow balance, scenario 1, 2 and 3 - Operational costs & depreciation, scenario 3

It is necessary to take into account the rise in price of fossil fuels in the future. The use of

biomass for energy purposes makes users more energy independent of disruptions in fossil fuels

market.

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10. INSTITUTIONAL ANALYSES

Directive No. 2009/28 / EU promotes the use of energy from renewable energy sources. It sets

binding national goals for the overall share of energy from renewable sources in final energy

consumption (less than 20%), as well as the share of RES in transport (10% of energy from

renewable sources in transport by 2020).

In order to support investments in renewable energy sources, the Republic of Serbia has passed

a number of laws and bylaws relating to the use of biomass and other renewable energy sources.

These are the following acts:

- Energy Law (Official Gazette of the Republic of Serbia 57/2011, 80/2011- corr, 93/2012

and 124/2013),

- Energy Sector Development Strategy of the Republic of Serbia by 2015 (Official Gazette

of the Republic of Serbia 44/2005),

- Amendments and Additions to the Energy Sector Development Strategy by 2015 for the

period 2007-2012 (Official Gazette of the Republic of Serbia 99/2009),

- Law on Planning and Construction (Official Gazette of the Republic of Serbia 72/2009,

81/2009-corr, 64/2010 – Decision of the Constitutional Court, 24/2011, 121/2012, 42/2013

– Decision of the Constitutional Court, 50/2013 – Decision of the Constitutional Court,

98/2013 – Decision of the Constitutional Court),

- Law on Environmental Protection (Official Gazette of the Republic of Serbia 135/2004,

36/2009, 36/2009 and other law, 72/2009 and other law, 43/2011 – Decision of the

Constitutional Court),

- The Law on The Strategic Assessment of Environmental Impact (Official Gazette of the

Republic of Serbia 135/2004 and 88/2010),

- Law on the Assessment of Environmental Impact (Official Gazette of the Republic of

Serbia 135/2004 and 36/2009),

- Law on Integrated Prevention and Control of Environmental Pollution (Official Gazette of

the Republic of Serbia 135/2004),

- Law on Waste Management (Official Gazette of the Republic of Serbia 36/2009 and

88/2010),

- Law on Air Protection (Official Gazette of the Republic of Serbia 36/2009),

- Law on the Ratification of the Kyoto Protocol to the UN Framework Convention on

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Climate Change (Official Gazette of the Republic of Serbia – International Contracts,

88/2007 and 38/2009 and other laws),

Law on the Ratification of the Treaty Establishing the Energy Community between the

European Community and the Republic of Albania, Bulgaria, Bosnia and Herzegovina,

Croatia, Former Yugoslav Republic of Macedonia, Montenegro, Romania, Republic of

Serbia and the UN Mission in Kosovo in accordance with UN Security Council Resolution

1244 (Official Gazette of the Republic of Serbia 62/2006)

- National Strategy of Sustainable Development (Official Gazette of the Republic of Serbia

57/2008),

- Introduction of Cleaner Production Strategy in the Republic of Serbia (Official Gazette of

the Republic of Serbia 17/2009).

Biomass Action Plan 2010-2012 defines the following projects in the Republic of Serbia:

- Synchronization of Serbian technical standards on biomass and bio-waste with the EU,

- Bio-fuels market development project – assessment of biomass availability,

- Development of policy for long-term supplies of biomass,

- Feasibility Study to justify collection of wood waste from forestry in Serbia,

- Development of certification on sustainable bio-fuels/bio-energy in line with EU standards,

- Development of a network of sustainable cities/regions in Serbia,

- Developing communication strategies for renewable energy in Serbia,

- Training for successful project proposals for EU funds,

- Demonstration projects related to biomass in line with the best practice of the EU,

- Production of manuals (guidelines) for applying for financial support from banks – best

experiences.

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11. ENVIRONMENTAL IMPACTS

Zone of influence of the project is the area where the biomass is collected, prepared for transportation and transported from municipality Mionica and from the immediate surroundings, which may be registered as the environmental impact of noise, vibration, emissions of particulate matter from the exhaust gases, etc. During the construction of the plant adverse impacts on the local environment may occur as a

result of construction and installation works. Particularly negative impact would represent

preparing the area for the construction of the boiler room and storage of wood chips where it

would be necessary to clear and level the ground. Implementation of these activities involves

cutting a dozen deciduous trees and clearing of waste. Construction works will cause noise and

vibration generated by using construction machinery as well as increased dust emissions due to

works on the excavation of foundations, leveling the field and the development of access roads.

All of the above effects are not of great intensity and are relatively short in duration. The area in

which the works will be carried out will be protected by the building site fence so that all adverse

environmental impacts outside of the borders will be negligible.

Prior to the commencement of works, the Investor is required to prepare a study on the

organization of the site which will display the work areas, corridors for internal transport,

temporary storage of equipment and materials, landfill waste during construction, manner and

place of storage of flammable and hazardous materials. The study will show the connection to

the outside infrastructure and installations, usage of protective agents, the method of disposal of

solid and liquid waste and other specific measures which would to be taken to reduce risks to

health and safety of the personnel engaged, as well as environment protection actions.

During the operation of the energy block, the harmful substances contained in the exhaust gases

will exert the greatest impact on the environment. In addition to dust from the fuel, the exhaust

gas also contains solid particles. Adding a cyclone device as a part of a boiler for combustion of

biomass would have effects on the following:

- Nitrogen oxides (NOx) in the case of combusting low moisture biomass. The temperature

of combustion is high in this case and NOx content is significantly higher than in case of

combusting biomass with high percentage of moisture.

- Sulfur oxides (SOx) are low because of the low sulfur content in the biomass,

- Carbon dioxide (CO2) is considered neutral because the biomass is considered a

renewable energy source so that the entire amount of the carbon emitted in the exhaust

gas has been previously taken from the environment in which the tree grew,

- Carbon monoxide (CO) in practical terms does not occur due to the construction of the

boilers and constant monitoring of the combustion process.

In any case, the planned power plant should replace the existing one in which the burning heavy

fuel oil (crude oil) is extremely unfavorable for boiler installations within residential areas.

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The construction itself does not require a significant amount of water. While in operation, the

power plant does not have losses and uncontrolled water runoff except in the cases of an

emergency breakdown situations. These situations are extremely rare with this kind of plants, so

it is safe to say that there is no risk of environmental pollution, as well of pollution of surface and

groundwater.

The existing sewerage system is able to accept the waste water that may be of atmospheric

origin, waters from washing facilities and equipment with a negligible content of oils and fats,

waste and sanitary sewage. In the cases of discharging the installations, a coolant tank is used

with a fat separator and after the deposition water is discharged into the sewer system.

The exhaust gases contain solid particles of ash, which are retained in the cyclone device prior to

the introduction into the chimney and discharging into the atmosphere. A metal cartridge is

placed into the cyclone where the separated ash is deposited. Also, the boiler unit has a cartridge

for the disposal of ash that occurs as a solid residue of the combustion process. The total amount

of ash deposited is 8 t/a, i.e. between 20 and 50 kg per day during the heating season. The ash

will be deposited in a safe place and once a week transported to the landfill under a contract with

the local utility company. The amount of ash is relatively small and does not represent a risk to

the environment.

The operation of the boilers and electric motor drives in the boiler room is a source of constant

noise and vibration. All equipment that emits noise and vibration is located within the area of the

boiler room so that the sound is largely absorbed by the walls of the building. After

commissioning the boiler room, measures will be taken out to eliminate or bring the noise down

to an acceptable level according to the Law on the protection of environmental noise (published

in the Official Gazette of the Republic of Serbia No. 36/2009 and 88 / 2010). According to the

above mentioned Act, the maximum allowable noise level is 35 dB (A) during the day and 30 dB

(A) during night.

The user of this space will adopt certain measures to minimize the negative impact on the

environment. These measures will be applied to the control of air emissions, as well as to the

management of wastewater, solid waste and noise.

The thermal energy for public institutions in the municipality of Mionica is obtained from different

types of fuel, so that the production of CO2 is different for each heat source. The specific ratio of

CO2 production and heating energy of buildings from Phase I (Table 27) is used to make

estimates of production of CO2 for future connected residential buildings.

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Figure 27 – Emission CO2 – Compare to fuel

If the biomass for combustion is obtained by deforestation, an emission of CO2 by biomass

combustion would be six times less than from the combustion of heavy oil. If the biomass for

combustion is provided from wood waste or from sustainable forest, then reduction of CO2

emissions would be lower by 1.000 t per year.

0

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400,000

600,000

800,000

1,000,000

1,200,000

1,400,0002

01

8

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Ave

rage

Emission CO2 (kg), Comapare to fuel

Existing fuels in facilities (kg) - Coal,Heavy oil, Electricity Emision CO2 (kg) - Biomass

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12. ENERGY EFFICIENCY MEASURES AND CONCLUSION

The main task of this study is to reduce the energy costs for heating buildings used by public

institutions. Buildings used by public institutions of Mionica currently use all types of fuels (coal,

fuel oil, electricity) for heating.

A good example are the buildings that are used by municipality Mionica public services and the

police station, which are using unique fully automated, in working condition, modern boiler for fuel

oil. Bad example are objects of primary and secondary school. These buildings use a unique

boiler to coal, which does not include systems for monitoring and load management systems.

Water treatment plants are not in operation in these buildings.

Scenario 1: Public institutions of Mionica are not located in a single facility or in several facilities

at a short distance. They are part of the facilities which are distributed around the town at a great

distance. Thus positioned objects prevent making simple solution by forming a single boiler for

biomass which would connect public buildings. Analysis of such a system is defined by the

scenario 1.

Scenario 2: Considering that public facilities spread throughout the town, the construction of a

biomass boiler and pipe systems for district heating needs of public facilities is financially

unsustainable because of the large investment costs. Analysis of such a system is defined by

scenario 2.

Scenario 3: The only viable solution to reduce the costs of heating public buildings is the

construction of a biomass boiler and pipe systems for district heating and dimensioned for future

connection of residential and commercial buildings. This investment is the largest but the

connection of new users has made additional financial profit that this system would make

sustainable. Analysis of such a system is defined by the scenario 3.

Construction of the heating grid dimensioned for connection of housing and commercial buildings

represents the construction of the infrastructure system, which is good for the entire local

community.

The system defined in scenario 3 uses existing equipment and resources in the form of relocation

of the central boilers of the municipality operating on fuel oil, power 1650 kW, and including it as

a part of new power plants. These existing boilers would be used to cover the maximum needs of

the system while the main generator of heat would be using by the woodchip boiler 2500 kW

power. Thus conceived plant can be connected with 25.000 m2 heated area.

For the facilities of the public administration, installation of substations is planned. Substations

are equipped with devices for measurement of thermal energy and devices for power

management depending on the outside temperature.

The municipality Mionica and the district Kolubara possess a sufficient amount of forests from

which biomass needed to operate power plants can be obtained. In addition to existing sources

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of biomass, cultivation of energy cane "Miscanthus" can also be planned. This would enable local

community to act in closed circle of producing of energy cane – creation of thermal energy -

using heat energy.

Construction of the system with a biomass heating plant and heating grid represents the

infrastructure system which will create benefits to the town Mionica. These benefits will be

reflected in the form of:

- Lower heating costs,

- Reduction of fuel consumption,

- Reduction of CO2 emissions,

- Reduction of environmental pollution,

- Increased comfort and quality of services,

- Reduced costs of fuel and maintenance.

The building sector in Serbia is particularly important, because it accounts for about 40 % of total

energy consumption, with a trend for further growth. This high energy consumption means that

the potential energy and environmental savings in the building sector are the largest. Most of the

energy is consumed for space heating, although in recent years, increased consumption is

recorded for cooling during summer season.

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13. APPENDIX

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Figure 28 – Comparative analysis of cost heat energy and saving, scenario 1

2018 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

Existing fuels 81,836 82,980 84,141 85,317 86,511 87,720 88,947 90,191 91,452 92,731 94,028 95,343 96,677 98,029 99,400 100,79 102,19 103,62 105,07 106,54

Wood chips 37,618 37,741 37,865 37,990 38,116 38,244 38,374 38,504 38,636 38,770 38,905 39,042 39,180 39,319 39,460 39,603 39,747 39,893 40,040 40,190

Saving 44,218 45,239 46,276 47,328 48,394 49,476 50,574 51,687 52,816 53,961 55,123 56,302 57,497 58,710 59,939 61,187 62,452 63,736 65,037 66,358

0

20,000

40,000

60,000

80,000

100,000

120,000

Comparative analysis of cost heat energy and saving, SCENARIO 1 - (€)

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Figure 29 – Cash flow balance, scenario 1

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

TotalCashFlow x103 -251,077 -216,121 -180,115 -143,045 -104,897 -65,653 -25,300 16,180 58,802 102,582

-250,000

-200,000

-150,000

-100,000

-50,000

0

50,000

100,000

150,000Cash flow balance, SCENARIO 1 - (€)

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Figure 30 – Comparative analysis of cost heat energy and saving, scenario 2

2018 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

Existing fuels 81,83682,980 84,14185,317 86,511 87,720 88,947 90,191 91,452 92,731 94,028 95,343 96,677 98,029 99,400 100,79 102,19 103,62 105,07 106,54

Wood chips 37,61837,741 37,86537,990 38,116 38,244 38,374 38,504 38,636 38,770 38,905 39,042 39,180 39,319 39,460 39,603 39,747 39,89340,040 40,190

Saving 44,21845,239 46,27647,328 48,394 49,476 50,574 51,687 52,816 53,961 55,123 56,302 57,497 58,710 59,939 61,187 62,452 63,73665,037 66,358

0

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40,000

60,000

80,000

100,000

120,000

Comparative analysis of cost heat energy and saving, SCENARIO 2 - (€)

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Figure 31 – Cash flow balance, scenario 2

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037

TotalCashFlow x103 -717, -708, -697, -686, -674, -661, -648, -633, -617, -600, -582, -564, -544, -523, -501, -478, -454, -429, -402, -375,

-750,000

-700,000

-650,000

-600,000

-550,000

-500,000

-450,000

-400,000

-350,000

-300,000Cash flow balance, SCENARIO 2 - (€)

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Figure 32 - Saving from fuel switch and earning from phase II, scenario 3

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Figure 33 - Operational costs and depreciation, scenario 3

0

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2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037

Operational costs & Depreciation, scenario 3 (€)

Biomass Extra energy Employe – Labor costs Maintenance & Insurance costs Depreciation

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Figure 34 – Cash flow balance, scenario 3

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037

TotalCashFlow x103 -903, -898, -886, -858, -813, -762, -709, -654, -599, -543, -486, -428, -370, -310, -250, -189, -126, -63,7 361 65,42

-1,000,000

-800,000

-600,000

-400,000

-200,000

0

200,000Cash flow balance, SCENARIO 3 - (€)