Latvia Draft National Energy Plan

7/30/2019 Latvia Draft National Energy Plan

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European Commission (Directorate-General for Energy and Transport)

Contract no. NNE5/2002/52: OPET CHP/DH Cluster

OPET CHP/DH ClusterDistrict heating and co-generation

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Report

Draft National Heat Energy Plan

Riga, 2004


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The project "OPET CHP/DH Cluster" has obtained financial support from the European Commission(Directorate-General for Energy and Transport) under the contract no. NNE5/2002/52 for Community

Activities in the Field of the specific programme for RTD and demonstration on "Energy, Environmentand Sustainable Development - Part B: Energy programme"

The responsibility for the content on this publication lies solely with the authors. The content does notnecessarily represent the opinion of the European Community and the Community is not responsiblefor any use that might be made of data appearing herein.

Draft National Heat Energy Plan

Organisation: Ekodoma, Ltd OPET LatviaAddress: 12-49, Zentenes Str., Riga LV1069, LatviaTel.: +371 73 23 212

Fax: +371 73 23 210E-mail: [email protected]: www.ekodoma.lv


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Table of Contents

EXECUTIVE SUMMARY ......................................................... ........................................................... ....... 4

1 ENERGY SYSTEM ............................................................................................................................. 5

2 THERMAL ENERGY......................................................................................................................... 6

2.1 PRODUCTION AND SUPPLY OF THERMAL ENERGY ......................................................... ................. 6

2.2 RIGA........................................................ ............................................................ .......................... 72.3 DAUGAVPILS ..................................................... ............................................................ .............. 11

2.4 LIEPAJA................................................... ............................................................ ........................ 13

2.5 OTHER DISTRICT HEATING SYSTEMS......................................................... ................................... 14

2.6 CONSUMPTION PROJECTION.................................................. ....................................................... 14

2.7 ORGANIZATIONAL STRUCTURE....................................................... ............................................. 19

3 ENERGY EFFICIENCY................................................................................................................... 20

3.1 THERMAL ENERGYDISTRICT HEATING.................................................. ................................... 20

3.2 PRODUCTION OF THERMAL ENERGY ......................................................... ................................... 203.3 FUEL CONVERSION FOR GENERATION OF THERMAL ENERGY .................................................. ..... 22

3.4 TRANSMISSION OF THERMAL ENERGY ...................................................... ................................... 24

3.5 FINAL CONSUMPTION OF THERMAL ENERGY....................................................... ......................... 25

3.6 EFFICIENCY IMPROVEMENTS IN HEATING SYSTEMS ...................................................... ............... 303.7 INVESTMENTS ................................................... ............................................................ .............. 30

4 ENERGY SUPPLY RESOURCES................................................................................................... 31

4.1 GAS SUPPLY ...................................................... ............................................................ .............. 31

4.2 FOSSIL FUEL SUPPLY ................................................... ........................................................... ..... 32

4.3 WOOD BASED FUELS ................................................... ........................................................... ..... 344.4 PROJECTION STRUCTURE ...................................................... ....................................................... 34

4.5 ENVIRONMENTAL PROTECTION...................................................... ............................................. 36

5 LEGISLATION AND REGULATORY FRAMEWORK.............................................................. 39

5.1 INTEGRATION IN EUROPEAN UNION ......................................................... ................................... 39

5.2 SECURITY OF SUPPLY AND RESERVES ....................................................... ................................... 41

5.3 PRICE TRANSPARENCY .......................................................... ...................................................... 425.4 GAS AND ELECTRICITY TRANSIT..................................................... ............................................. 42

6 LIBERALIZATION OF GAS AND ELECTRICITY MARKETS ............................................... 43

6.1 HOT WATER BOILERS................................................... ........................................................... ..... 43

6.2 SULPHUR CONTENT OF CERTAIN LIQUID FUELS................................................... ......................... 43

6.3 USE OF SUBSTITUTE FUEL COMPONENTS IN PETROL...................................................... ............... 44

7 THE LATEST DEVELOPMENT.................................................................................................... 45

8 BARRIERS FOR ENERGY EFFICIENCY IMPROVEMENT.................................................... 46

9 NEW INSTRUMENT IN PROMOTING CHP DISTRICT HEATING AND ENERGY

EFFICIENCY IN LATVIA ........................................................ ........................................................... ..... 47

10 FINANCING THE DISTRICT HEATING PROJECT IN LATVIA ....................................... 48

10.1 THE ENERGY EFFICIENCY FUND ..................................................... ............................................. 4810.2 SCIENCE AND EDUCATION .................................................... ....................................................... 49

10.3 KEY ACTIVITIES IN THE EDUCATION FIELD ......................................................... ......................... 49

10.4 KEY MEASURE IN SCIENCE ................................................... ....................................................... 50

10.5 FINANCIAL RESOURCES REQUIRED FOR EDUCATION..................................................... ............... 50

10.6 INVESTMENTS ................................................... ............................................................ .............. 51

10.7 FINANCIAL RESOURCE, SCHEDULES AND SOURCES ..................................................... ............... 51

11 SOURCES........... ........................................................... ........................................................... ..... 56


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EXECUTIVE SUMMARY

This draft version of Latvian National Heat Program is based on earlier versions of the National Energy

program prepared prior to January 2004, as well as other studies and documents.

Comparing with the earlier Latvian National Energy Program this document analyses the energy sector in

close ties with trends in the national economy as whole. Investments in the energy sector have been

projected depending on the economys actual capability. The highest priority has given to the energyefficiency, which largely determines not only the thermal energy demand but also the welfare of population

and the competitiveness of Latvian businesses. In order to ensure further integration into the European

Union the program has been harmonized with the general EU policy and its directives. In this regard wide

program is planned to ensure the compliance of international legislation. The section regarding indigenous

and alternative resources has been substantially expanded and the program anticipates a maximum

utilization of their potential within financial reasonable limits.

The objective of the National heat program is to define a set of measure that will ensure stable energy

supplies at the lowest costs and lowest affordable environmental impacts that in quantity and qualitycorrespond to the domestic demand. Improving the energy efficiency, promoting the utilization of domestic

and energy resources and decreasing share of the energy in the countrys imports will achieve this objective.

The program covers a period up to 2020. It is a draft planning document that integrates into a single system

interrelating technical, financial and organizational measures and is composed of 11 subprogram- Thermal

Energy, Energy Efficiency, Gas Supply, Oil Product, Coal, Wood, Peat, Alternative Energy sources,

Environmental Protection and Institutional Regulations, Education and Science.

The National Program envisages:

Efficiency improvement in the whole chain of the energy system - from production,

transmission, and distribution for final consumption;

Deeper integration into EU energy market, energy systems of Baltic and Nordic States;

Liberalization and restructuring of the energy sector, with the aim to promote the

development of a rational energy systems;

Favorable environment for private investment in efficient energy systems (cogeneration),

utilization of domestic and renewable energy resources as well as energy efficiency;

Rational utilization and maintenance of the existing capacities, replacement of obsolete

and environmentally inadequate installations.

The is focused from the heat market point of view.


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1 ENERGY SYSTEM

The energy system consists of a chain of processes. It starts with the extraction or collection of primary

energy sources, such as coal, crude oil, natural gas, biomass, uranium and sunlight. The energy content of

the annual flow of these sources is often referred to as primary energy consumption. Primary energy isconverted into energy carriers such as petrol and electricity, which is then converted into energy end-use

provisions to provide the desired energy services. The annual flow of these energy carriers is called final

energy consumption. Due to conversion losses, final consumption is less than primary consumption (e.g. thegeneration of heat in many conventional power plants has an efficiency of less than 70%).

Environmental pressures are caused by all parts of the energy system; some of the prominent pressures are

selected for analysis in this report. Greenhouse gas emissions in Latvia are largely carbon dioxide emissions

from fossil fuel consumption in the end use sector or from energy conversion. In addition, carbon dioxide

and methane during extraction and transport play a role. Acidification and urban air pollution result from

emissions during energy conversion and final consumption.

Opportunities to reduce environmental impacts can be found in all part of the system. For example, carbon

dioxide emission can be lowered in the first part of system by switching to energy sources with lowercarbon content (e.g. natural gas) or with a net zero carbon content (e.g. biomass). In the second part of the

system, lower conversion loss result in lower carbon emissions. One important option here is the combine

generation of heat and power CHP, which can raise the overall efficiency of converting fuels into heat or

electricity. Last but not least, demands for final energy can be reduced. A complex of factors, includingproduction and consumption patterns, income, available technology, determines energy demand. Energy

conservation measures result in the use of less energy to deliver the same services.

Pressure

Energy production

Mining/extraction

Transport

Energy conversion

Refineries

Heat production

Electricity production

Energy consumption

- Agriculture

- Transport

- Industry

- Services

-Household

Climate

change

Summer

smog

Urban air

pollution

Acidification

State

Impact

Human health Terrestrialecosystems

Response

Price

reform

Energy audit

&

management

Policies for

heat and

electricity

sector

Policies on

transport

Additional

environmental

measures

Fig. 1Analytical breakdown of the assessment


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2 THERMAL ENERGY

In Latvia the total thermal energy consumption in 2002 reached 26 PJ, demonstrating a 43% drop

comparing to 1996. An analysis of the consumption of thermal energy shows that the period from the year

1996/1997 to 1999/2000 was characterized by a decrease in the consumption of thermal energy, but startingwith the year 2001/2002 the consumption tends to stabilized.

Approximately 70%of the total thermal energy was supplied by district heating system although the trendtowards decentralization was gaining popularity, particularly within this area with developed natural gas

networks. Space heating and ventilation consumed some 65% of the energy delivered.

One of the most important factors, which influenced the consumption of thermal energy and accordingly to

the price for thermal energy to residents, has been the recording of consumed energy at the users premises.

The decrease in the thermal energy used for the preparation and supply of hot water was influenced by

standards issued by the Riga City Council, which:

a) foresaw the use of hot water meter readings, when calculating the cost of the residential consumed

thermal energy;

b) gave the possibility of refusing centralized district heating, including the supply of domestic hotwater and to install autonomous individual electric or gas water heaters in apartments.

Gross Heat Consumption, PJ

46

3734

2825 26 26

0

10

20

30

40

50

1996 1997 1998 1999 2000 2001 2002

Series1

Fig. 2Gross heat consumption

2.1 Production and supply of thermal energy

During the year 2002, 3 million MWh of thermal energy has been supplied to the heating networks, which is2% (or 62.712 MWh) more than in 2001. Table 1 shows the heat consumption by sector in Latvia in 2002,

PJ

Table 1

Heat consumption by sector in 2002, PJ

Production 33.05Centralized 29.55

Local 3.50

Losses and self-consumption 6.73

Final consumption 26.32

Households

Industry

Agriculture, forestry, hunting, fishing

Construction

Other consumers

19.47

0.57

0.07

0.10

6.11


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Structure of Heat consumption in 2002

Households

74%

Other consumer

23%

Industry,Forestry,Agric

ulture & Cons truction

3%Households

Other consumer

Indus try,Forestry,Agriculture &

Construction

Fig. 3 Structure of heat consumption

In Latvia various types of fuels are used in thermal generation. Data on fuel utilization in centralized and

decentralized generation are summarized in table 2.

Table 2

Fuel consumption in thermal generation in 2002, PJ

Natural Gas WoodHeavy

fuel oilPeat Coal Shale Oil Total

Centralized supplies 35.21 7.10 4.22 0.95 0.26 0.32 48.06

Local supplies 2.54 3.79 0.12 0.05 0.08 - 6.58

Total 37.75 10.89 4.34 1.00 0.34 0.32 54.64

Share, % 69.08 19.93 7.94 1.83 0.62 0.58 100

2.2 Riga

Approximately 80% of thermal energy supplies in Riga come from centralized (district) heating systems.The rest is being covered by local (individual) energy sources - industrial plants whose generation is limited

to the respective companys needs as well as other smaller boilers.

March 1996 an integrated district heating company AS Rigas siltums was established and this fact is

considered being a positive move towards better management and improved transparency of the systems

operation. Merger of thermal energy generation capacities transmission and distribution networks formerlyoperated by PVAS Latvenergo and Riga City Council created Rigas Siltums. That also means that district

heating system in Riga nowadays has single management providing coordination of overall operation and

development policy. Rigas Siltums mainly focuses on:

the production of thermal energy in its own thermal plants and purchasing thermal energy from

another producers;

the transmission, distribution, supply and sale of thermal energy;

the installation, maintenance, and control of industrial heat equipment;

the purchase, storage and sale of various types of fuel;

the maintenance and servicing of consumers heat supply systems, as well as the training and

consulting of consumers personnel.

The company also provides technical maintenance of the internal heating systems of residential buildings

In further analysis of thermal energy generation structure the term centralized heating system refer to the

following thermal energy - CHPs all AS Rigas siltums boiler plants as well as industrial plants that generate

energy not only to cover their companys internal needs but also for sale to AS Rigas Siltums. Data on heat

generation in centralized and decentralized systems is summarized in table 3. Data in this table refers to

both CHPs, 123 AS Rigas Siltums boiler plants, 9 industrial plants that are operated within centralized

system, 111 individual industrial as well as 330 other local plants.


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Table 3

Thermal energy generation in Riga 2000, PJ

Supplies

Households

Industry

Commercial

Losses and self-consumption

2847

1593

364

383

508

Generation 2847

Centralized 2283

CHP

AS Rigas siltums boiler plants

Industrial boiler plants

1222

944

117

Local

Industrial boiler plants

Other boiler plants

Stove and individual heat generators

565

207

039

319

Share of centralized supplies

Share of cogeneration in centralized supplies

80%

54%

Further, table 4 present a short description of major thermal energy sources in Riga as well as estimate oftheir consumers load in 2002 and main operation indices.

Table 4

Major thermal energy sources in Riga, 2000

Rating

MWth

Connected,

load MWth

Incl. own,

MWth

Specific fuelConsumption,

Kgoe/MWth

CHP-1 616 903 82

CH-2 1237 903 83

Total CHP 1853 903 83

BP Andrejsala 368 945 81

BP Kengarags 277 941 82

Total 2498 1461

BP Vecmilgravis 157 72 956 94

BP Imanta 375 190 951 79BP Zasulauks 252 149 976 79

BP Rigas siltums gaseous & liquid fuel 267 172 1065 111

AS Rigas siltums solid fuel BP 20 14 1640 170

BP Ziepniekalns 130 102 954 95

Total BP 1846 973 87

Industrial boiler plants 561 176 96 1134 132

Total 4260 2337 944 86

Centralized heating system in Riga is comprised of more than 14/23 independent pipeline networks. The

largest network supplies over 60% of the total centralized thermal load.


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District heating in Riga was peculiar due to existence of 183 central heating points that were built during

70ties and 80ties to supply dwelling blocks constructed at that time. Central heating points are used to

prepare hot water for a large group of buildings. Form the central heating points these buildings are supplied

by four pipes systems. District heating consumers representing over 45% of all no industrial thermal load

are supplied through such system

Total pipeline network length excluding internal networks of industrial companies in Riga is about 999/24

Km including about 199 Km to various businesses.

The total network length also included 18 Km of steam pipes, which are owned by AS Rigas Siltums and

are not used anymore because the formerly supplied industrial companies have stopped their operations.

District heating systems in Riga was mainly build 1958-1990. Centralized resource planning system during

soviet times did not provide for about maintenance and renovation of DH network.

Today the City of Riga is divided into four heat supply districts and each has an appropriate company

organizational structure. Each district has own functional administrative units (network area, heat plants),

which are accountable to the companys economically and financially centralized administration.

As of October 1st, 2002 the total length of the thermal heating network was

876 km, 72.3 % of which is owned by the JSC Rigas Siltums, including:

615 km of thermal heating networks,

1 km of hot water supply networks; and

18 km of steam pipelines

Despite inflation, the company has been able to ensure a sound operation and has not changed the tariffs for

the last six years. This outstanding result was achieved thanks to a good management of the company and a

carefully planned refurbishment of the

Riga district heating system.

Rigas Siltums has funded its servicequality on the operational activities

and on an innovative service culture

where the client is in the focus. Thecompany has started in particular to

pay attention to its technical and

highly developed technologicalfoundation, without which it is almost

impossible to provide high quality

service. Using modern technologies as

a foundation, thermal energy use

recording has been transformed froman estimation method to an

instrumental one, the four-pipe supply

system has been completely replaced

with a two-pipe system and all central

block heating substations owned by the company have been liquidated.In the old system the heat was distributed from the central plant by a 2 pipe system to Central Supply Points

(CSPs ). There were 180 CSPs in the DH system of Riga. In the CSPs the 2pipe system was split up into a

4 pipe system: two pipes for space heating, and two for the supply and re-circulation of domestic hot water.

The domestic hot water was produced by heat exchangers in the CSP, while the space heating was carried

out without heat exchangers. The pipes for both heating and domestic hot water were made of steel, and

corrosion was a big problem, especially for the domestic hot water pipes because of the oxygen content in

the water.

The main objective for rehabilitation of building connections in the project has been to make the supply

points in connected buildings independent from the central production plants with respect to heat demand

control. All Central Supply Points (CSPs) have been converted to Individual Supply Points (ISPs), and

equipped with heat exchangers and control units both for heating and for domestic hot water production in

each individual building. The measures have reduced annual heat energy consumption for the consumers by

15 - 20 %.

0

50

100

150

200

250

Substations Dist ribution

network

Production plants

MillionLs

Implmented alternat ive

Full replacement costs

Investment carried out compared to total estimated

replacement costs


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In the 2001/2002 year, a

considerable amount of work wasdone on the renewing of contractual

relations with building managers,

which was associated with the

liquidation of central block heatingstations and multi-building heating

networks and the resulting changes

in the lists of buildings being

serviced and the actual thermal

energy consumers.

The company obtains the greatest

reduction of thermal energy loss byreconstructing the heat network, as

well as from renewing components

of the Main district heating pipes.

Annually, the following repairs aremade:

the replacement of large-diameter heating mains, using modern insulating materials, as well as the

replacement of insulation on aboveground heating mains without pipe replacement;

the replacement of heating mains using preinsulated pipe technology;

the installation of new modern equipment and valves (ball and half-turn valves, and bellows-type

expansion joints).

The above-mentioned repairs are

performed simultaneously with the

optimization of the heating network,

reducing the length of the heating

network and pipe diameters in

accordance with actual heat loads.One of the most important renovation

projects in the 2001/2002 year was

the construction of a connecting

pipeline, joining the heating networks

of the boiler houses MOrupes street

19 and M. NometPu street 66/68

with main pipeline M1 from thethermal heating plant Imanta, as

well as the construction of a

connecting pipeline joining the

heating networks of the boiler houses

Alises street 13 and TrijOdQbas

street 5 with the main pipeline M2 of the heating plant Imanta.

By replacing sections of the mains pipelines and the distribution networks results a significant reduction

made in the companys expenses related to emergency repairs due to pipeline ruptures. Losses caused

associated with the temporary shutdown of the heating networks to connect new consumers have been

reduced because they can be tapped in to the working heating network under pressure. The greatest gain

from replacement of the heating pipelines is the reduction of heat loss and the leakage of the thermal heating

carrier, as well as an increase in the safety of the heating supply.

Total thermal load in the city of Riga is evaluated at 3200 MW including 2351 connected to district heating

network. Structure of thermal loads in Riga is summarized in Table 5.

64

672

967

1309

450

0

200

400

600

800

1000

1200

1400

1997/1998 1998/1999 1999/2000 2000/2001 2001/2002Numberofinstalledandrecons

tructedISS

Individual substations installed by Rgas siltums

10651022

887

487

387

0

200

400

600

800

1000

1200

1997/1998 1998/1999 1999/2000 2000/2001 2001/2002

ThousandLs

Emergency repairs financing by years


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Table 5

Thermal Loads in Riga, 2000

The above table indicated that some 73% of total load are connected to centralized district heating system

including 77% of total household load. That demonstrated high centralization level of thermal energy

supply.

2.3 Daugavpils

Approximately 76% of thermal energy supplies in Daugavpils come form centralized heating system. The

rest is being covered by local individual energy sources.

The main heat supplies to households and commercial sector are two municipally owned heating plants HP-

1 and HP-2 complemented by a few small solid fuel boiler plants while VAS Dauteks.

CHP supplies major part of industrial consumers. In 1994 two steam turbines rated 12 MW each have been

installed at this industrial CHP. It has to be noted that a present feasibility of installing 15 MW of steam

turbine in HP-1 is being analyzed.

Table 6

Thermal energy generation in Daugavpils 2000, PJ

Supplies 4.39

Households 215

Industry 112

Commercial 063

Losses and self consumption 049

Generation 4.39

Centralized 335

HP238

Smaller municipal boiler plants 004

Industrial boiler plants 092

Local 1.05

Industrial boiler plants 030

Other local plants 030

Stove etc 071

Industry Households Commercial Total

SteamHot

waterTotal Hot water Steam

Hotwater

Total SteamHot

waterTotal

t/h MWth MWth MWth t/h MWth MWth t/h MWth MWth

Centralized 155 171 272 1609 0 417 470 155 2250 2351

CHP 20 75 87 1116 0 257 257 20 1448 1461

AS Rigassiltums BP

55 53 89 437 0 188 188 55 671 714

Industrial BP 80 44 96 56 0 24 24 80 124 176

Local 250 110 273 468 13 100 109 263 679 849

Industrial BP 250 89 251 0 13 22 31 263 111 282

Local BP 0 21 21 12 0 28 28 0 61 61

Stoves BP 0 0 0 455 0 51 51 0 506 506

TOTAL 405 281 545 2076 13 570 579 418 2928 3200


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Further Table 7 presents a short description of major thermal energy sources in Daugavpils as well as

estimate of their consumers loads in 2000 and specific fuel consumption.

Table 7

Major thermal energy sources in Daugavpils, 2000

Rating ConnectedThermal load

Incl. ownLoad

Specific fuelConsumption

MWth MWth MWth kgoe/MWh

HP-1 122 103 107.6

HP-2 222 165 105.4

Smaller municipal boiler

plants

11 6 163.7

Total municipal 355 274 107.2

Industrial boiler plant 562 195 145 106.0

Incl. A/S Dauteks CHP 502

Total Centralized supplies 917 470 106.9

In Daugavpils thermal energy generation is based mainly on heavy fuel oil, which in 2000 covered 65% of

total fuel supplies and 85% of fuel consumption in district heating. That is largely due to favorable sales

terms as the town is located closed to Latvias Eastern border.

Centralized heating system in Daugavpils is deeply integrated as largest part of consumers connected to

district heating networks are supplied simultaneously by tow main heat sources whose networks are

interconnected. The only exception being consumers with comparatively small load in Griva and Kalkuni

district and industrial consumers supplied by VAS Dauteks.

Total water pipeline network length excluding internal networks of industrial companies in Daugavpils is

approximately 179km. That is complemented by 9km of steam pipe network. Pipe diameters vary form 800

mm to 32 and they have been installed in underground and over ground channels. District heating networks

were mainly built during 70ties and are approaching end technical life.Total thermal load in the town of Daugavpils evaluated in 2000 at 636 MW, including 470 MW connected

to district heating network. Structure of thermal loads in Daugavpils is summarized in Table 8.

Table 8

Thermal loads in Daugavpils, 2000

The above table indicates that 74% of total load are connected to centralized district heating system. Total

space heating area within the household sector is estimated at 2, 08 million sq. m, with 1,4 million sq. m.from central heat supply. Approximately 90 thousand persons are supplied by district heating.

Industry Households Commercial Total

SteamHot


Hot

watertotal Steam

Hot

watertotal


Centralized 93 166 227 193 0 50 50 93 409 470HP 37 21 45 179 0 44 44 37 244 268

Smaller

municipal BP 0 0 0 1 0 5 5 0 6 6

Industrial BP 56 145 182 13 0 1 1 56 159 195

Local 4 14 17 101 8 44 49 13 158 166

Industrial BP 4 13 16 0 8 27 32 12 41 49

Other local BP 0 0 0 0 1 4 5 1 5 5

Stoves, etc. 0 0 0 100 0 12 12 0 113 113

Total 97 180 243 293 8 94 99 106 567 636


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2.4 Liepaja

In 2000 approximately 53 % of thermal energy supplies in Liepaja came from centralized heating systems

delivered by AS Liepajas siltums- a joint stock company established in 1994.The rest is being covered by

local (individual) energy sources.

Notwithstanding the fact that a single district heating company operates the district heating system, the

structure of thermal energy supplies in Liepaja is relatively complex, as Liepajas siltums operates

comparatively large number of district heating networks.

The main heat source of Liepaja is the towns heating plant to which the largest thermal load and district

heating network is connected. During 1995 - 1996 HP has even expanded as Liepajas siltums converted a

number of consumers from industrial suppliers to its own networks. A 12 MW rated steam turbine is

installed at the HP.

As Liepajas siltums thermal energy generation facilities include also 3 relatively large district heating

plants, 10 smaller natural gas and liquid fuel boiler plants and over 10 small solid fuel plant. Further table

10 presents a short description of major thermal energy sources in Daugavpils as well as estimating of their

consumers loads and specific fuel consumption in 1995.

Thermal energy in Liepaja is generated also by 40 local industrial plants, including the CHP at Liepaja

sugar plant, which has 2,67 MWel rated by steam turbine and over 40 other small local plants.

Data on heat generation is centralized and decentralized systems are summarized in Table 9.

Table 9

Thermal Energy generation in Liepaja, 2000

Supplies 3.06

Households 1.61

Industry 0.74

Commercial 0.43

Loses and self-consumption 0.28

Generation 3.06

Centralized 1.64

CHP 1.03

AS Liepajas siltums BP 0.61Local 1.42

Industrial 0.76

Other Local BP 0.08

Stoves, etc 0.59

Table 10

Major thermal energy sources in Liepaja, 2000

Rating, MWthConnected

thermal load,

MWth

Relative fuel

consumption,

kgoe/MWh

CHP 273 131 105.3Zala birze district BP 43 8 107.7

DR district BP 36 20 107.7

Karaosta district BP 78 6 107.7

Other gaseous and liquid fuel BP 58 42 109.3

Solid fuel BP 11 6 163.7

Total AS Liepajas siltums generation 525 213 108.0

Notwithstanding the fact that the largest part of boiler plants in Liepaja is connected to natural gas network,

heavy fuel oil covers the largest proportion of fuel need there. In 1995 its share reached 44% in Total fuel

supplies and it covered 62% of fuel consumption within district heating.

In Liepaja as well as in other largest Latvian towns, part of consumers in newer districts are connected to

DH network by four pipes system through central heating points. Total water pipeline network systems


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length, excluding internal networks of industrial companies in Liepaja is approximately 165 km. Major part

of district heating networks were build during 70ties and are approaching the end of their technical life.

The total thermal load in Liepajas towns was evaluated at 431 MW in 1996 including 212 MW connectedto district heating network. Structure of thermal load in Liepaja is summarized in Table 11

Table 11Thermal loads in Liepaja, 2000

Industry Household Commercial Total

SteamHot


Hot

waterTotal Steam

Hot

waterTotal


Centralized 4 6 9 158 0 45 45 4 210 212

CHP 4 6 9 90 0 32 32 4 128 131

AS Liepaja

siltums BP0 0 0 68 0 13 13 0 82 82

Local 83 52 106 76 4 34 37 87 162 219

Industrial BP 83 51 105 0 4 6 9 87 57 113

Other localBP

0 1 1 1 0 10 10 0 12 12

Stoves, etc. 0 0 0 74 0 19 19 0 93 93

TOTAL 87 59 115 234 4 80 83 91 372 413

The above table indicates that 50% of total load are connected to centralized district heating system.

2.5 Other district heating systems

This group includes systems that are outside towns of Riga, Daugavpils and Liepaja and that generate

approximately 46% of total thermal energy outputs in Latvia.

Approximately 80% of thermal energy supplies in these areas came from centralized (district) heatingsystems; industrial and other small plants the rest I being covered by local (individual) energy sources.

Data on heat generation in centralized and decentralized systems is summarized in table 12.

Data in this and other following tables refers to district heating, individual and industrial plants and local

heat generation.

Table 12

Thermal energy generation in other area in 2000, PJ

Supplies 31.3

Households

Industry

Commercial

24.7

Losses and self- consumption 6.6

Generation 31.3

Centralized, industrial and other boiler plants 26.3

Stoves, etc 5.0

Supplies to consumer connected to district heating systems in regional centre and other rural towns in 2001

on average did not exceed 70% of the level required by the existing norms. Hot water supplies were limited

to approximately 60%. In those systems heavy fuel oil and wood are the principal and most commonly fuel

used.

2.6 Consumption projection

Thermal energy consumption in future will depend on change in the total number of inhabitant, dwelling

floor area, overall industrial growth and implementation of energy efficiency measures.


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Construction of new dwelling and public buildings is the most important factors that influence the shift in

thermal energy demand.

In addition demand is influenced also by other factors:

As the national economy stabilizes and consumer welfare grows, thermal energy supplies will

be required to ensure appropriate level of comfort (space heating not limited by the supplier,

regular hot water supplies);

Growing requirements in regard to the convenient working environment will require renewing

operation of ventilation systems that at present in most cases do not operate.

Growing demand from industrial consumers, recovering from 1993 - 1995 crisis.

From the other side, growth of demand will be held back by implementation of energy efficiency measures.

Notwithstanding the differences in volumes of investment, directed to implement energy efficiency

measures, as well as differences in average per capita floor area projected under base and Optimistic

Scenarios, total thermal energy demand in 2020 in both scenarios is anticipated to reach almost equally 92

PJ (optimistic, 91,5 PJ - Base Scenario ) (see fig. 4).

Thermal energy demand, PJ

0

20

40

60

80

100

120

199

199

19920

020

020

020

020

020

020

020

020

020020

120

120

120

120

120

120

120

120

120

120

2

Optimitic

Base

Fig. 4 Thermal energy demand, PJ

This trend is explained with the fact that optimistic Scenario anticipates higher growth of industrial demand,which will offset effects of efficiency improvements (see fig. 5). Heat consumption in space heating per sq.

m of dwelling floor area in optimistic Scenario in 2020 is by 13% lower than in the Base Scenario (see fig.

6).

Thermal energy demand by industry, PJ

0

5

10

15

20

25

1997

1998

1999

2000

2001

200

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Optimistic

Base

Fig. 5 Thermal energy demand by industry


16/56

Average monthly thermal energy onsumption for space heating in dwellings during heating

season, KWh/sq.m

0

5

10

15

20

25

30

35

40

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Base

Optimistic

Fig. 6 Average monthly energy consumption for space heating during heating season

Within the structure of thermal energy generation changes in two directions are expected to occur:

As electricity imports will become more and more expensive and the government shall offerbeneficial treatment to domestic cogeneration, boiler plants should be converted to cogeneration.

That will increase the share of thermal energy produced in cogeneration processes. Thegovernment should provide beneficial treatment and favorable operating environment; while gross

product subsides will not be exploited;

In district heating decentralization and centralization will occur simultaneously, though both at

unsubstantial scale. From one side - mass decentralization would require considerable financing

from the consumers side, which in near future is unlikely to be available for the majority. From

other side, as national economy stabilizes and welfare grows, evidently higher service standardsthat are provided by district heating enterprises. It is anticipated that decentralization will take

place in areas with low average heating load density (below 0,8 MW per km of pipeline network).

Contrary to electricity and natural gas supplies, district heating systems are local by nature and they

constitute an integrated part of local (municipal) infrastructure. Therefore district heating issues have to be

treated individually in each locality, taking into account respective circumstances and conditions.

That also means that district heating planning at the national government's level will be limited to

stipulation of general principles, optimization of the country's fuel balance and management of a system,

ensuring the policy implementation.

Detailed planning and programming has to be arranged by each respective municipality on its own. Eachmunicipality, having district-heating system, should elaborate a detailed concept for development of this

important infrastructure component. Energy planning shall

Disconnection from district heating companies shall be regulated by municipal energy planning, where local

communities establish a community-heating plan, ideally with the input and cooperation of state and energy

agencies and public utilities. Such a plan would address not only heating fuels and environmental impacts,but explore ways to provide low-cost universal service, improve safety, and expand use of existing heatsources.

These plans based on economical, environmental and technical studies shall be designed to insure:

Long-term and safe supplies of heat for consumers

Substitution of imported fuels with indigenous

Safeguarding the economic viability and low cost of heat supplies.

Use of heat supply technology with causes as little pollution as possible

Retention of customer choice in the energy market

Compulsory heat metering shall be introduced to all heat substations in consumer buildings.

This program based on analysis of present situation and consumption projections have to set general

development scenarios for the district heating system and contain respective investment programs. Otherwise it may happen that substantial investments are made into individual components of the system that


17/56

presently seem to be the most urgent, though actual results will differ considerably from those anticipated

due to negligence of the system's other components.

In the majority of towns, first of all, general development guidelines have to be reviewed and within two

following years it has to be decided whether centralized district-heating systems. The government shall

carry out implementation of these by simple recommendations as well as utilizing its administrative tools-in

the form of regulations, taxes etc.

The program envisages commissioning of the following cogeneration capacities:

Installation of gas turbines at HP Andrejsala (2000) and HP Imanta (2003);

Reconstruction of Riga CHP-1- construction of a new natural gas fired block which will replace the

existing equipment;

Development of independent power producers, that between 1997 and 2000 are anticipated to

commission cogeneration facilities equal to 80 MW or 55MW in respectively, optimistic and Base

Scenarios.

In future years it is also planned that similar cogeneration plants fired either by natural gas or heavy fuel oilwill develop in the largest towns. Smaller peat and wood fired plants are also expected to appear, although

their capacities will be less substantial.

Structure of thermal energy generation within centralized systems are illustrated by Figure 7, Figure 8,

Table 11 and Table 12.

Structure of thermal energy generation within centralized systems. Base Scenario, PJ

0

20

40

60

80

100

1997 1998 1999 2000 2005 2010 2020

Boiler Plants

cogeneration

Fig. 7 Structure of thermal energy generation within centralized systems. Base Scenario, PJ

Structure of thermal energy generation within centralized system. Optimistic Scenario, PJ

0

20

40

60

80

100

1997 1998 1999 2000 2005 2010 2020

Boiler Plants

Cogeneration

Fig. 8 Structure of thermal energy generation within centralized systems. Optimistic Scenario PJ


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Table 13

Structure of thermal energy generation within centralized systems - Base Scenario, PJ

Table 14

Structure of thermal energy generation within centralized systems Optimistic Scenario, PJ1997 1998 1999 2000 2005 2010 2020

Supplies

Demand

Losses

58.90

47.47

11.43

59.44

48.13

11.31

60.35

49.11

11.24

61.18

50.05

11.13

67.01

56.48

10.75

70.69

61.66

9.03

78.16

71.35

6.82

Generation

Cogeneration

Boiler plants

58.90

14.43

44.47

59.44

16.58

42.86

60.35

18.74

41.61

61.18

21.89

39.29

67.01

28.28

38.73

70.69

29.26

41.44

78.16

31.38

46.79

Generation Structure

Cogeneration

Boiler plants

1.00

0.25

0.75

1.00

0.28

0.72

1.00

0.31

0.69

1.00

0.36

0.64

1.00

0.42

0.58

1.00

0.41

0.59

1.00

0.40

0.60

Structure of fuel utilized in district heating is expected to be transformed gradually. There are three

principal objectives that require such changes:

Better security of energy supplies;

Lower cost;

Improve efficiency of thermal energy supply;

Minimize environmental emissions.

Consequently it is planned to induce the following trends:

Heavy fuel oil substitution by natural gas;

Gradual substitution of lower quality coal by high quality coal imported from western markets;

Substitution of heavy fuel oil;

with high Sulphur content by a similar environmentally friendlier fuels or indigenous resources.

In rural areas, the construction of financially feasible small boiler plants (2-4 MW) that are fired by

indigenous fuels and based on technologies developed domestically will be supported.

1997 1998 1999 2000 2005 2010 2020

Supplies

DemandLosses

58.74

47.2711.48

59.16

47.7011.46

59.71

48.3111.40

60.19

48.9311.26

65.31

54.5610.75

68.67

59.189.49

77.07

69.187.88

Generation

Cogeneration

Boiler plants

58.74

13.83

44.92

59.16

15.38

43.79

59.71

16.93

42.78

60.19

19.72

40.47

65.31

24.65

40.66

68.67

25.43

43.24

77.07

69.18

7.88

Generation Structure

Cogeneration

Boiler plants

1.00

0.24

0.76

1.00

0.26

0.74

1.00

0.28

0.72

1.00

0.33

0.67

1.00

0.38

0.62

1.00

0.37

0.63

1.00

0.35

0.65


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In Optimistic Scenario due to large investment in energy efficiency improvements, thermal energy output in

centralized district heating which are roughly equal to those in Base Scenario will be generated with

substantial reduction in fuel consumption

Fig. 9 Fuel consumption in centralized thermal energy Supply, PJ

2.7 Organizational structure

In many of Latvias towns the district heating systems forms an integral part of the local infrastructure. This

contemplates those respective municipalities that have the awareness of local circumstances and besides are

in charge of local urban planning are to take the responsibility to manage district-heating systems and to co-

ordinate its development. In almost all the regional centers this already has happened and municipal

enterprises or joint stock companies (Riga and Liepaja) operate district-heating systems there.

In some of the towns however district companies formally still belong to state. Such legal form of

operations does not provide for appropriate management as the local municipality may disregard this

important local infrastructure element while DH Company may operate independently form the localcommunity, which also is undesirable.

In general legal form of operations is not a deciding factor for the district heating (state companies though

are less likely to be appropriate) if that ensures increasing municipalitys involvement in development of

this major infrastructures component. There will be no obstacles also in development of independent

thermal energy producers particularly in context of cogenerations. Independent thermal energy procedures

are anticipated to improve competitive situation and market transparency within system where they operate.

In more distant future it is considered being useful to merge utilities that in a certain area supply thermal

energy gas water and electricity into a single utility company such utility companies are quite common for

may EU countries and have proved their efficiency as single utility company has number of advantage

comparing with situation when the same services are provided by a number operators.

Planning and development of all types of communications is in much better co-ordination;

Maintenance of three communication systems (electricity, gas and heat) in parallel rarely could be

justified if any of those might be substituted by others;

Capital investments will be minimized;

Lower overheads relating to emergency information etc services;

Simpler system for settlement of accounts consumers pay their utility bills to a single company;

Smaller managerial staff.

Fuel onsumption in Centralised thermal energy supply,PJ

0

10

20

30

40

50

60

70

80

1997 1998 1999 2000 2005 2010 2020

Base

Optimistic


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3 ENERGY EFFICIENCY

3.1 Thermal Energy district heating

District heating share in the final energy consumption in 1995 reached 38% and twice exceeded that

of electricity. Therefore it is major area for energy efficiency improvement. Besides it has also be taken into

account that a substantial share of the remaining final energy consumption reported in the form of primaryenergy, relates to conversion of these into thermal energy at decentralised systems. It is estimated that

such processes add another 15%, while energy efficiency measures relating to energy consumption are

completely similar for both groups of thermal energy consumers.

Thermal energy - as well as any other energy form, is utilised efficiently if the consumer is motivated

through pricing. Actually delivered energy prices in most cases correspond to appropriate energy costs and

individual consumer groups. Industry and private householders already have demonstrated their motivation

to improve energy efficiency.

In general efficient utilisation of thermal energy may be separated into two groups of measures:

Measures relating to energy production and distribution which are carried out by a

supplier;

Demand side management and savings measures at the consumer's site.

In an ideal case energy efficiency improvements should begin from the consumer as production and

distribution structure solely depend on consumption, from other hand, however, investments in production

and distribution facilities have shorter payback period which due to very limited availability of funding is

the main factor. Therefore it is anticipated that initially priority is given to energy efficiency improvements

in production and distribution.

Figure x depicts structure of achievable energy efficiency potential that is feasible and financially

reasonable from the point of view of presently available technologies and existing conditions of heating

systems. Implementation of the respective efficiency improvements would require investment of

approximately 2 billion lats*,while aggregate efficiency in thermal energy systems would improve by 65%,

Structure of energy efficiency potential

Consumption

47%

Transmisson

31%

Generation

22%Consumption

Transmisson

Generation

Fig 10: Structure of energy efficiency potential

3.2 Production of thermal energy

Majority of district heating system in Latvia have been installed between 1960 and major of their elements

are approaching the limit of their technical life cycle or have even exceeded that.

The average annual efficiency of installed boilers does not exceed 85%. Average efficiency of boiler rated

below 1 MW is 70-75% with liquid fuel, 70-80% with natural gas and 50-60% with low quality solid fuel.

Conditions are slightly better at larger boiler plants (>15MW), where better financing opportunities have

provided for at least minimum maintenance.

Systems generally lack control of equipments. In small plants the burning regulation and control equipment

is in unacceptable condition or is not installed at all. Water treatment facilities generally operate only in


21/56

large boiler houses. In many cases there are no such facilities in small plants, which largely expedite

network and boiler wear. Low boiler efficiency, unacceptable control over burning and utilization of low

quality high sulphur content heavy fuel oil and coal cause substantial environmental consequences.

Improvements are also required in metering the heat outputs, energy self-consumption and fuel (except

natural gas). Many small boiler plants lack any metering equipment. Electricity consumption and rating of

installed fans, pumps and other electric appliances exceed presently the required levels.

Boiler plants lack equipment for ensuring automatic fuel burning. Air flow in many cases is regulatedmanually. In most cases there are no equipment for estimating the plants efficiency, the actual capacity and

other important parameters. Consequently, it is impossible to estimate actual losses and volumes of

delivered energy as well as other indicators required to ensure proper management of theses systems.

Approximately 3-3.5 thousand-boiler plants with installed capacity of over 0.2 MW were operational in

Latvia in 1996. (see fig. 11). The technical condition in small and medium plant (15

Share in total number

Share in production

Fig. 11 Boiler plant capacities and structure of heat production

90% of boiler plants have capacity below 4 MW, though this group produces just some 30% of energydelivered by district heating. These plants were cast iron boilers prevail are utilising the largest proportion of

solid fuels.

Rising fuel prices have resulted in conversion of plants from imported fuels to domestic wood and peat, even

that the installed boilers are not designed for these fuel types.

Conversion to domestic fuels is connected with difficulties relating to fuel storage and accumulation,

as they may occupy comparatively large areas. Substantial part of wood fuel is utilised immediately after

its produced and brought from the forest. Installed cast Iron boilers due to features of their construction and

low efficiency are not suited for conversion and operation in future.

New boilers manufactured in Latvia and designed for wood utilisation have been installed in a number of

boiler plants, though often they are operated in conditions that do not allow ensuring proper efficiency.Operated without water treatment facilities and with unacceptable routines their productive lifetime until full

reconstruction is not expected to exceed 4 years.

In boiler plants with capacities between 4 MW and 15 MW DKVR, DE and KVGM type boilers are

prevailing. As rule these plants are operated by municipal district heating enterprises or industrial companies.

Main fuels are heavy fuel oil and natural gas though few plants have been converted to domestic fuels.

Present efficiency of natural gas and liquid fuel boilers is between 75%and 85%, although it is lower if

economiser is not installed. As rule liquid and gaseous fuel boilers have standard automatic regulation

and feeding system. In most cases they are operated manually without any control over the burning process.

In recent years loads connected to district heating boiler plants have decreased substantially, while

installed production capacities are remaining the same. Large boilers and other appliances are being

operated at low output levels that cause superfluous consumption of fuel and electricity as well as expeditewear of equipment. Conditions in plants where installed capacity exceeds 15 MW generally are relatively

better.


22/56

Table 15

Common boiler types

The following measures represent main directions for energy efficiency improvements in boiler plants:

Conversion to cheaper fuel;

Installation of new and efficient boilers;

Optimization of installed production capacities;

Improvements of fuel preparation and storage

Optimization and control of burning process;

Replacement and modernization of electric appliances; Reconstruction of water treatment facilities.

3.3 Fuel conversion for generation of thermal energy

Available resources of woody biomass and rapid development of woodworking industry in Latvia formfavourable conditions for wood utilisation in energy production. Projections of prices in both Scenarios

demonstrate that woody biomass will also in future be one of the least expensive energy sources.

Although costs of transportation, and labour-intensity of its processing significantly limit its utilisation

in larger boiler plants (>8 MW), Latvia has a good potential for district heating equipment

manufacturing represented by a number of Latvian companies (Komforts, Latura, Orions), though

presently they are only able to deliver boilers with capacities below 5 MW.Investment costs per MW of installed capacity for wood chip plants that are manufactured In Western

Europe and installed in Latvia are between Ls 100 to 200 thousand which rarely allows to achieve any price

advantages comparing with other fuels. Identical plants manufactured in Latvia presently cost Ls 30-40

thousand per MW and offer an excellent option for conversion to wood chips. Besides, conversion ofexcising boilers to indigenous fuels in most cases is not cost efficient as the boilers themselves usually are

relatively in poor technical conditions and reconstruction costs may easily exceed costs of identical new

installations.

3.3.1 Installation of new and efficient boilers

Approximately one thousand boiler plants with capacities of 0,2-4,0 MW need replacement of old cast iron

section boilers. Replacement of inefficient, low quality boilers may bring fuel savings of 10-30%.

Type Medium FuelCapacity,

(MW)

Theoretical

efficiency, (%)

Actual annual

mean efficiency,

(%)

DKVR Steam Natural gas, heavy fuel oil 2 - 14 91 85

DKVR Steam Coal 2 14 75 70

DE Steam Natural gas, heavy fuel oil 4 - 17 90 - 92 85

E Steam Natural gas, LFO 0.7 88 80

E Steam Coal 0.7 71 65

KVGM Water Natural gas, heavy fuel oil 4 - 35 87 - 94 89

PTVM Water Natural gas, heavy fuel oil 35 - 60 86 - 90 85

RK Water Natural gas, LFO 1.85 82 - 90 70

BRATSK Water Coal, natural gas, LFO 0.7 75 60

UNIVERSAL Water Coal, natural gas, LFO 0.2 - 0.4 67 50

ENRGIJA Water Coal, natural gas, LFO 0.25 - 0.5 73 55

TULA Water Coal; natural gas, LFO 0.3 - 0.6 67 50

MINSKA Water Coal, natural gas, LFO 0.2 - 0.3 68 50

AK Water Wood 0.2 - 1.0 80 70


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3.3.2 Optimization of installed production capacities

This group of measures relates mainly to boiler plants with-capacity exceeding 4 MW. In many cases heating

loads have decreased substantially over last few years and large boilers are operated at very low operatingloads. In these cases production capacities have to be optimised to fit with new operating conditions. Fuel

savings in certain cases may reach even some 50%.

3.3.3 Improvements of fuel preparation and storage

Efficiency of solid fuel boilers largely depends on fuel moisture content. According to experimental analysis

moisture content for freshly cut wood generally is 45%-65%. If the moisture content is reduced by 15-30%

lower calorific value increases by 40%, which may bring fuel savings of some 15%. Burning temperature

directly influences boiler efficiency. Boilers that have small convective area will not be able to burn

effectively fuels with low burning temperatures. Moisture decreases burning temperature and 60% moisture

in woody biomass is the limit for its utilization in energy production.

3.3.4 Optimization and control of burning process

By automating the burning process the following parameters are optimised:

Fuel feeding; Air; Traction; Water feeding.

Automatic controls are the only means that ensure plant's efficient and secure operation. Liquid and gaseous

fuel burners manufactured in developed states are fully equipped with necessary controls and security

systems, ensuring high fuel burning efficiency at various load levels. Depending on fuel type and boiler

capacity installation of appropriate burners may save 5-30% of fuel. Analysis of already implemented

projects demonstrates that burner replacement is the most efficient measure for small boilers (RK, BRATSK,

etc.).

Particular requirements apply to solid fuel burning processes that may not be immediately interrupted. Costs

of solid fuel boiler control equipment and automating are considerably higher than those for liquid and

gaseous fuels, while achievable fuel savings are substantially lower. Although, changing air feedingdepending on structure of flue gases can regulate even small wood boilers. Better results may be achieved

with chip boilers.

3.3.5 Replacement and modernization of electric appliances

Replacement or modernization of electric appliances manufactured in former USSR that, in addition have

excessive capacities, can reduce respective electricity consumption by 50-70%.

3.3.6 Reconstruction of water treatment facilities

In most cases water treatment facilities are more or less operational in boiler plants with capacities exceeding

4 MW. Water quality is principal factor influencing all chains of district heating system in terms of technical

conditions and service lifetime. Particular importance is in systems where pipelines and substations have

already been reconstructed.

Order of implementation for various efficiency measures depends on fuel type and boiler plants capacity.

In boiler plant using natural gas, the fuel burning is considered as the main priority. Automatic burners haveto be installed in order to improve the fuel burning.

In boiler plants using liquid fuel, improvement should start with the reconstruction of fuel storage andpreparation systems (preheating, filtering, pumps, etc) if required, followed by the installation of efficient

burning systems.

In plant designed for solid fuel burning, new boiler that are designed for specific types of fuels have to be

installed first, followed later by the construction of fuel storage and finally, some measures connected with

the burning control and automating must be carried out if these were not implemented with boiler installation.

Energy efficiency measures prioritised for various groups of boiler plants are summarized in table 16.


24/56

Table 16

Priorities for energy efficiency measures in boiler plants

Table 17

Energy efficiency investments in boiler plant

Ls/MW Efficiency improvements

Conversion to domestic fuelsFire wood boiler

Wood cheap boiler

10000

25000

10 15%

20 25%

Installation of new and efficient boilers

Fire wood boiler

Wood cheap boiler

10000

25000

10%

20%

Fuel preparation 25000 15 20%

Burning optimization

Wood

LFO

Natural gas

5000

4500

2500

5%

10 25%

510%

Capacity optimization

Natural gas

Mazut

30000

35000

10 20%

20 50%

Replacement and modernization of electric appliances 1000 - 2000 50 70%

Water treatment 1000 Long term

3.4 Transmission of thermal energy

In Latvia there are in total 3200 km of district heating pipelines of various diameters (see fig.12).

For most of the pipeline network the quality of insulation and construction works is unacceptable.

Centralized district substations and four-pipe scheme, which was used in networks of the largest towns in

areas, constructed during 70-80ies, has neither financially nor technically justified itself.

In general present conditions of distinct heating networks in the major part of Latvia's urban areas areunacceptable, as they have been built during 70ies. As normal technical lifetime of pipelines is 25 years most

of these networks are worn out. Average depreciation of pipelines is 50-75%.

Though, in many cases due to poor operating conditions, mostly - high level of SOIL waters or low quality of

drainage systems, actual depreciation is substantially higher.

Measures 0.2 - 4.0 MW > 4.0 MW

Replacement and modernisation of electric appliance 1 1

Installation of new and efficient boilers 3 4

Optimization and control of burning process 4 2

Reconstruction of water treatment plant facilities 2 3

Optimization of production capacities 3 4

Fuel preparation and storage 3 6

Conservation of boiler to domestic fuels 3 4


25/56

Pipeline length

0

100

200

300

400

500

50mm

70mm

80mm

100m

m

125m

m

150m

m

200m

m

250m

m

350m

m

450m

m

500m

m

700m

m

900m

m

1000

mm

Series1

Fig. 12 Pipeline length

Heat losses in networks on average are between 25- 30%, though in summer when only hot water is supply

they may exceed 50% of heat produced. Besides, heat loses are also influenced by the fact that pipeline

diameter do not correspond to those required by consumer loads. Losses in pre-insulated pipelines that have

appropriate diameters depend on network length and configuration are in the range of 7-15 %.

3.5 Final consumption of thermal energy

Living and public houses are the major thermal energy consumers. It is estimated that building space

heating consumes some 65% of the total delivered heat. Multi-family houses constitute 75% of the totalliving area, while 65% of it is located in urban areas.

In Latvia buildings in general are in poor conditions. Approximately 28% of buildings were built before

1940. This period is characterised with brick wall and wooden buildings. Wooden buildings were

constructed as frame constructions or log houses. The latter prevail in rural areas. Space heating in those

building usually was arranged with stoves fuelled by firewood. In Riga there are buildings, which were

constructed before 1940 that are supplied by district heating, while they also have stoves and fireplaces.

After 1940 building construction was under continuous unification and was extensive in 60ies when

reinforced concrete constructions were widely used. According to planning principles adapted at that time

standard projects were designed with the intention to achieve maximal immediate financial benefits, while

heating costs due to few fuel prices were not an important factor.

Design of living and public buildings; at that time was determined by requirement to ensure sufficient

temperature on construction surfaces oriented towards interior.

This parameter was rationed for living and majority of public buildings:

6 to 7oC on interior surfaces of outer wall;

4 to 4.5oC on upper floors ceiling, attic ceilings interior surface.

Thermal reliance of constructions of outer walls in buildings, that where constructed according to these

norms was dose to 1,0 m2 o

C/W. In living buildings thermal resistance of roof constructions isbetween approximately 0,8 and 1,5 m2 C/W. Thermal resistance values for constructions in a few types ofstandard living buildings are summarised in table 18.


26/56

Table 18

Thermal resistance values for constructions in standard living buildings

Type 3.5.1.1.1 Part of Building Thermal resistance, m2o

C/W

103/5

Attic ceiling

Outer wall from gas -concrete panels

Outer wall from clays bricks

Cellar ceiling

Windows

1.342

1.120

0.788

0.968

0.390

318/5

Attic ceiling

Outer wall from silicon bricks (1)

Outer wall from silicon bricks (2)

Cellar ceiling

Windows

0.683

0.799

0.757

0.864

0.390

464/5

Attic ceiling

Outer wall from ceramist concrete panels

Cellar ceiling

Windows

1.228

0.676

0.752

0.390

467/5

Attic ceiling


Cellar ceiling

Windows

0.887

0.676

0.992

0.390

467/5

Attic ceiling


Cellar ceiling

Windows

0.650

0.676

0.673

0.390

602/9

Attic ceilingOuter wall from ceramist concrete panels

Cellar ceiling

Windows

1.2500.676

0.880

0.390

As rule in Latvia window constructions with double panel or window with double leafs are used. Latter are

more common to single family houses as well as old apartment. In public building, window with aluminumframing are used together with wooden frame windows.

These windows construction have relatively high heat losses as metal frame functions as thermal bridge.

Some thermal resistance values for various windows construction are summarized in table 19.

Table 19

Thermal resistance values: window construction

Window construction Thermal resistance, m2o

C/W

Double windows with single wooden leaf 0.34

Double windows with double wooden leaf 0.38

Double windows with single metallic leaf 0.31

Double windows with double metallic leaf 0.34

On September 12, 1991 Latvia Republic Ministry of architecture and construction issued regulations No 68

On improvement of thermal resistance values of building constructions. Annex to this document


27/56

established minimum thermal resistance values for buildings that are under construction or will be

reconstructed (see table 20).

Table 20

Minimum thermal resistance values for buildings that are under construction or will be reconstructed

No. Item Temporary value for

rooms, where

t>18C t


28/56

3.5.3 Packing of windows

Packing of windows is a comparatively inexpensive measure, though it usually costs more than pipe

insulation improvements. On average packing of windows may cost between 0,30 to 0,50 Ls/sq. m and willalso bring better than pipe insulation energy saving - 5-7%.

3.5.4 Insulation of attic ceiling

Costs of attic ceiling insulation expressed as Ls per square-meter of total area will vary in broad range,

depending on number of floors. Costs will in addition also depend on whether or not these insulation works

are connected with substantial preparations, as cleaning of attic rooms from rubbish etc.

It is estimated that attic ceiling insulation in 5 storey living building will cost approximately 1,5 Ls/sq. m,

while for 9 storey building these costs would respectively be only 0,8 Ls/sq. m. Though, efficiencyimprovements are relatively better in buildings with fewer floors, as their share of heat transferred through

attic takes larger proportion of total building's heat losses.

Also in monetary terms, investments in attic insulation for lower buildings will bring relatively higher

savings ratio and quicker payback. From this point of view attic insulation has to be particularly encouraged

in 2-3 storey public buildings, etc.

3.5.5 Modernization of internal heating systems

Modernization of building's internal heating system is connected with higher investments, comparing with

the above measures. Though, these works could be carried out gradually, initially maintaining properly

functioning heating system's elements. Usually that will include installation of new heat substation with heat

exchangers, pumps, automatic control and programming equipment, heat meter. Heat substation, dependingon its complexity, may and may not embody programming option, heat exchanger for independent space

heating connection as well as other elements influencing its price.

Also relative costs will be lower in buildings where single heat substation can supply larger area. For

instance, heat substation in a building with 8 apartments would cost approximately 4000 Ls, while in a

building with 32-36 apartments similar substation will cost roughly 6800 Ls. Assuming that one apartment

occupies on average 60 sq. m, relative costs of heat substation installation in the first case are approximately

8,30 Ls/ sq. m, while in 36 apartment building they do not exceed 3,20 Ls/sq. m.

Presuming that relative efficiency gains from heat substation modernization are similar for buildings withvarious floor areas, total heat savings and investment payback will be better in larger buildings.

3.5.6 Repairs and insulation of gently sloping roofs

Roof insulation in a building that has no attic and is covered by gently sloping roof is also connected with

renovation of the roof's hydro insulation. Meanwhile, in the case that such a building requires renovation of

roof it is useful to install also addition insulation.

Renovation of 1 sq. m of gently slopping roof together with 100 mm thick thermal insulation from mineral

wool may cost approximately Ls 18-22. For 5 storey building it would respectively cost 3,5-4,5 Ls/ total

area sq. m, while for 9 storey - 2-2,5 Ls/sq. m. This measure will reduce heat loses by some 8-10% fromtotal losses through the buildings constructions. Contrary to attic insulation, roof insulation requires use of

hard and dense mineral wool, which is considerably more expensive than mineral wool's rugs and plates

used for attic insulation. If the latter costs 18 - 22 Ls/cb. m, the hard plates will be 110-130 Ls/cb. m. In

addition, substantial proportion of costs will relate to the new roof material itself. Moreover, use of

rubberoid for the roofs hydro insulation requires provision of ventilation outlets that would emit moisture

from the insulation.

Ventilation outlet as described above is not required if a material that is not diffusion dense insulates a gently

sloping roof. Pulverizing the roof with foam polyurethane creates such an insulation system, where insulation

material simultaneously functions also as hydro insulation. It surface is painted with defensive lacquer, which

reduces the effect of sunlight and ultraviolet radiance. The system is breathing, the covering does not prevent

steam diffusion processes and, therefore additional ventilation is not required.

3.5.7 Improving thermal resistance of windows

Thermal resistance of window may be improved by replacing existing window with new ones that haveinsulation glass packages. This measure is useful in the case that due to conditions of existing window

frames and leaf, their repair is more expensive than replacement. The exception here relates to those


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buildings with historical value where it is required to maintain the architectural style for all buildings

visible elements. In such building it is recommended that insulated glass packages with minimum space

between glasses be used in renovation of window panels.

These glass packages would cost, depending on their size, approximately 15 26 Ls/sq. m. The total cost of

window renovation depending by large and their condition before repairs and whether maintenance of their

existing size is required or not.

Supplementary costs therefore could add 5-12 Ls/ sq. m and total costs would reach 20-30 Ls/sq. m. In

multi-family dwellings such measures will reduce heat losses by some 10-12%.

In case that old windows are in poor condition and heir thermal energy losses exceed hose set by norms bysome 25%, investments in window reconstruction ill have estimated payback period of 12 14 years.

Material cost for new windows are between 80-120 Ls/sq. m, depending on windows size and

configuration. Larger windows with simple configuration are cheaper. Costs of installation and additional

material are estimated between 8-10 Ls/sq. m. The total cost of window replacement is 90-130 Ls/sq. m. In

the case that all windows are replaced with newly manufactured, estimated efficiency improvement would

amount to 15-18%. If the existing windows thermal resistance I below 25% of that set by norms, the

estimated payback period of window replacement would extend over 25 years. Meanwhile, if the thermal

resistance of window corresponds to former norms, the payback period extends to 45 years, which

doubtfully might be considered appropriate. In that case it may be recommended to limit window occupy an

area equal to approximately 16-17% of the whole buildings area.

3.5.8 Insulation of outer walls

Additional insulation of buildings outer walls may be required particularly if the insulation is installed from

outside. Meanwhile in most cases insulation from outside is preferred comparing with inside insulation,

except historical buildings where substantial change is not allowed and where insulation is installed inside.

There are number of systems to choose for outer wall insulation of building.

Usually such systems include plates, which depending on conditions of existing foundation are strengthenedmechanically or with gluing material. Plaster, strengthened by steel or glass fiber riddle is covered above the

insulation.

Depending on the chosen system and share of domestic materials, materials cost for insulation of outer

walls may reach approximately 7-15 Ls/sq. m. Materials cost as indicated here correspond to the insulationaccording to the temporary norms (3.0 m2o

C/W). Together with labor, costs of outer wall insulation may

reach 10-20 Ls/sq. m

Statistical data on various standard building demonstrate that outer walls occupy an area equal to 47-52% of

the whole building.

3.5.9 Recommended sequence of energy efficiency measures

Energy efficiency measures intended to reduce thermal energy consumption in buildings may be prioritized

based on their relative costs, achievable efficiency improvements and existing experience. The priorities as

described about below are general and each particular case has to be studied and analyzed separately.

Measures that may be implemented with comparatively small investments:

Packing of windows' leafs;

Insulation restoration for heating systems' pipes.Medium capital intensive measures with good efficiency improvements:

Insulation of attic ceilings;

Modernization and regulation of heating systems;

Repair of windows with installation of glass packages.

Efficient measures that requires considerable investments:

Insulation of gently sloping roofs with simultaneous restoration of hydro insulation;

Window replacement with new high thermal resistance windows;

Insulation of outer walls with simultaneous building front's renovation.

Costs of individual measures and their approximate payback periods are summarized in table 22.


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Table 22

Costs and payback period for typical thermal energy efficiency improvements

Measures Cost (Ls/m2) Estimated payback,

year

Packing of window leafs 0.30 - 0.50


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4 ENERGY SUPPLY RESOURCES

Both the imported (natural and liquefied gas, oil products, coal) and local fuel (wood and peat) are used in

Latvia to provide fuel and energy (electricity and heat) to sectors of national economy, commercial users

and residents. Small boiler houses burn local fuel and coal.

The structure of the supplied energy resources in 2002 consisted of: oil product (light fuel, heavy fuel and

other oil products)-27%, natural and liquefied gas 32%, fossil fuel (coal, wood and peat)-31% electricity ofhydro plants (including import of electricity)-10%.

The structure of consumption of energy resources in 2002 was: centralized heat energy 17%, oil products

(fuel and liquefied gas)-29%, electricty-11.5%, natural gas 13.5%, fossil fuel (coal, wood and peat)-29%.

Significant changes in the balance of energy resources in the nearest five years are not predicted in view ofthe existing heat and electricity supply capacities, large industrial, commercial and household energy

consumers.

The decrease of the demand of energy resources in 2002 can be explained by the decrease of the general

demand for fuel in comparison with 2000.

Table 23

Consumption of energy resources in Latvia*

(Thousand tons of conditional fuel ktce**)

Consumption of Energy Resources 1999 2000 2001 2002

Energy consumption total

of which:

Natural gas and liquefied gas

Light fuel products and other oil products

Heavy fuel, oil shale

Firewood, peat, coke and other types of fuel

Coal

Electrical power (HPS, wind generators and

imported from abroad)

5730

1495

335

900

1300

120

580

5259

1560

1366

406

1267

94

566

5740

1980

1313

269

1475

123

580

6466

1847

1610

233

2084

99

593*Source: CSB and Ministry of Economics

**1ktce = 0.02931PJ

The decrease of the demand of energy resources in 2002 can be basically explained by the decrease of the

general demand for fuel in comparison with 2001

4.1 Gas supply

An important place in the Latvian energy resource market belongs to natural gas. Because of growth of

prices for heavy fuel oil, the share of gas has risen by 8% and equals to 34%. It is forecasted that the share

of gas (as one of the ecologically cleanest types of fuel) in the total energy consumption of Latvia will

continue to going up(consumption of natural gas might go up to .7-.9 billion m3

by 2005) bringing down,respectively, the share of heavy fuel oil. The largest consumers of natural gas are: Latvenergo CHPs and

heat generation enterprises 60%, industry 25%, other consumers~15%.

Riga region accounts for 82% of the total natural gas consumption of Latvia. Naturally gas is not used at all

in Latgale region with the exception of Daugavpils city and Preili region. In Kurzeme, the biggest gas

consumption is in Liepaja 11% (JSC, Liepaja siltums, JSC Liepaja Metalurgs), in Zemgale region -

Jelgava and Bauska region 4%


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Fig. 14 Gross natural gas consumption and natural gas structure in 2002

4.2 Fossil fuel supply

Oil products are used both as heating fuel and liquid fuel. Prices in the oil product market are fullyliberalized and competitive. Free market Principe, with certain reservations, also function in the area of oil

product deliveries.

Oil products have an important share in the Latvian energy resources market- their market share is about 33-

40%, including heavy fuel 7%.

Data on oil product deliveries for domestic consumption is summarize in table 24.

Table 24

Oil product deliveries for domestic con

Documents

Latvia Draft National Energy Plan