MAIN DIRECTIONS OF ACTIVITY OFINTERNATIONAL ENERGY CENTRE

UNDP/GEF/UN ECE ProjectUNDP/GEF/UN ECE Project“Removing barriers to energy efficiency improvementsin the state sector in Belarus”

Main directions of activity of International energy centre

1. Conversion of boiler houses to mini-CHPs using gas piston and gas

turbine technologies.

2. Construction of cogeneration and trigeneration systems.

3. Modernization of pumping and compressor equipment using up-to-

date technical solutions and new technologies.

4. Utilization of secondary heat energy resources.

5. Provision of consultative services and conduction of express energy

audits.

Direction IList of projects implemented

N Project title Capacity introduced(MW)

Annual effect(thousand tons of fuel equivalent)

Emission reduction (thousand tons of CO2 equivalent)

Amount of financing(million USD)

1 Construction of a cogeneration module at “Krasnoselskstroymaterialy”

public corporation

4.86 5.35 8.82 7.5

2 Construction of energy technology complex at “Vitebskaya Keramika”

public corporation

2.8 3.08 5.0 5.2

1. Specific fuel consumption to produce 1 kW�h at “Krasnoselskstroymaterialy” public corporation is 145 gram of fuel equivalent.

2. Specific fuel consumption to produce 1 kW�h at “Vitebskaya Keramika” public corporation is 145 gram of fuel equivalent.

Direction IList of power generating sites included in the International energy centre Programme (18 sites)

№

(groups)Name Capacity

introduced(MW)

Annual effect(thousand tons of fuel equivalent)

Emission reduction (thousand tons of CO2 equivalent)

Amount of financing(million USD)

1 Introduction of 3 cogeneration modules in housing and communalservices in Volkovysk

6 6.6 11 9.0

2 Introduction of cogeneration and trigeneration system in Slutsk (demonstration site)

16 19.2 32 24.0

3 Retrofitting power economy of industrial sites

10 11 18.1 15.0

TOTAL 32 36.8 61 48

Direction IIModernization of pumping and compressor equipment(best projects implemented)

№ Project title Before modernization

After modernization

1 Modernization of air compressor house at “Neman” public corporation (Lida region)(unit costs per kW·s/m3 )

0.21 0.097

2 Modernization of air compressor house at “Brestzhilstroy” public corporation (Brest)(unit costs per kW·s/m3 )

0.25 0.12

3 Modernization of air blowers at a treatment plant in Lida (capacity consumed, kW)

500 250

4 Replacement of borehole pumps at a watersupply point in Ivazevichy (kW·h/1000 m3)

458 307

Direction IIModernization of pumping and compressor equipment(ongoing projects) (payback period does not exceed 30 months)

№ Name Capacity introduced(million USD)

Fuel and energy resources saving, (thousand tons of fuel equivalent)

Emission reduction (thousand tons of CO2 equivalent)

1 Replacement of pumping equipment at housing and communal servicesenterprises in Brest region (16 districts)

7.1 18 29.7

2 Replacement of pumping equipment and air blowers at demonstration sites in Slutsk and Slutsk region

0.7 2,1 3.465

3 Replacement of pumping equipment in housing and communal services in Volkovysk

0.46 1,1 1.815

4 Replacement of pumping equipment at enterprises of industrial sector

22.5 32.1 53.1

TOTAL 30.76 53.3 88.8

Direction IIIList of sites ready for implementation of projects on utilization of medium-grade and low-grade heat№

(groups)

Name Capacity introduced(MW)

Annual effect(thousand tons of fuel equivalent)

Emission reduction (thousand tons of CO2 equivalent)

Amount of financing(million USD)

Payback period, years

1 Heat utilization at gas-compressor stations “Krupky”(power generation using organic Rankine cycle )

15/13.5 31 51 30 4

2 “Elizovo” glassworks 0.4 0.96 1,.58 4 6

3 Heat pump at a textile enterprise

2.9 4.2 2.8 5

4 Heat pump at a distillery 4.36 6.28 2.6 4

5 Heat pump at a sugar refiningplant

5 7 4 4

Total 15.4 44 70 43.4

State of the matter

• The length of gas-transport networks in Russia, Ukraine and Belarus

is ≈ 170 thousand km.

(Belarusian gas pipelines in single execution amount to ≈ 2500 km, gas pipeline

Yamal-Europe is ≈ 575 km, 1420 mm.)

• The amount of gascompressor units is ≈ 4500 items.

(There are 26 gascompressor units in gas pipeline Yamal-Europe on the territory

of Belarus.)

• The total capacity of gascompressor units exceeds 50 GW.

(The capacity of gas pipeline Yamal-Europe is 416 MW.)

The amount of electric power that could be generated exceeds 5000 MW

(60-75 MW on the territory of Belarus).

Exploratory design of ORC-cycle introduction at gas-compressor stations “Krupskaya” and “Nesvizhskaya” of gas pipeline Yamal-Europe

• Capacity of electric power generated is 13.5 MW.

• Maximum capacity reduction of a gas piston unit is 0.4%.

• Increase of transport gas usage coefficient is (17÷18)%

o Saving of transport gas at a gas-compressor station with 3 gas piston units

in operation is ≈ 22 mln. m3 per year.

o Energy consumption reduction is 150 thousand tons of fuel equivalent.

• Capital investments amount to about 25 mln. €.

• Project payback period is 4.5 years.

Risk of tariff change for electric power generated(K = 1.3- 0.85)Dynamics of current money flow change under different electric power prices andT=8 000 hours per year

Динамика изменения текущего денежного потока при разных ценах на электроэнергию и Т=8000 часов в год

-2 000

0

2 000

4 000

6 000

8 000

10 000

2013 2014 2015 2016 2017 2018

Тыс. евро

Текущий денежный поток(К=1,3)Текущий денежный поток(К=1,0)Текущий денежный поток(К=0,85)

Т=8000ч. К=1,3 К=1 К=0,85ЧДД 22 090,0 8 815,1 2 218,0ВНД 69% 33% 17%Нормальная окупаемость 2,4 3,3 4,2Дисконтированная окупаемость 2,6 3,8 5,3Индекс рентабельности 2,1 1,4 1,1

Risk of gas pipeline underloading (or unsatisfactory operation of equipment)Dynamics of current money flow change with K=1.3 and different values of T

Динамика изменения текущего денежного потока при К=1,3 и разных часах наработки в год

0

2 000

4 000

6 000

8 000

10 000

12 000

2013 2014 2015 2016 2017 2018

Тыс. евро

Текущий денежный поток при Т=8760 часов Текущий денежный поток при Т=8000 часов

Текущий денежный поток при Т=7000 часов Текущий денежный поток при Т=6000 часов

К=1,3 Т= 8760ч. Т= 8000 ч. Т= 7000 ч.Т= 6000 ч.ЧДД 27 136,4 22 090,0 15 262,4 8 515,7ВНД 86% 69% 49% 32%Нормальная окупаемость 2,1 2,4 2,8 3,3Дисконтированная окупаемость 2,3 2,6 3,1 3,9Индекс рентабельности 2,3 2,1 1,8 1,4

Risk of tariff change for electric power generated and change of rate of credit resources allocation due to inflation in the economyDynamics of current money flow change with T=8000 hours per year, K=1.0 and different values of interest on credit

Динамика изменения текущего денежного потока при Т=8000ч/год; К=1,0 и разных процентах по кредиту

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

2013 2014 2015 2016 2017 2018

Тыс. евро

Текущий денежный поток при ставке по кредиту 12%

Текущий денежный поток при ставке по кредиту 15%

Текущий денежный поток при ставке по кредиту 17%

К=1,0; Т=8 000ч. 12% 15% 17%ЧДД 8 815,1 7 263,7 6 229,4ВНД 33% 28% 26%Нормальная окупаемость 3,3 3,5 3,7Дисконтированная окупаемость 3,8 4,1 4,4Индекс рентабельности 1,4 1,4 1,3

Risk of gas pipeline underloading and reduction of tariff for electric power generatedDynamics of current money flow change with K=1 and different values of T

Динамика изменения текущего денежного потока при К=1 и разных часах наработки в год

-2 000

-1 000

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

2013 2014 2015 2016 2017 2018

Тыс. евро

Текущий денежный поток при Т=8000 ч/год

Текущий денежный поток при Т=7000 ч/год

Текущий денежный поток при Т=6000 ч/год

К=1 Т=8000 ч. Т=7000 ч. Т=6000 ч.ЧДД, тыс. евро 8 810,7 3 713,3 -1 384,2ВНД 33% 21% 9%Нормальная окупаемость, лет 2,3 3,9 1,9Дисконтированная окупаемость, лет 3,8 4,9 >6Индекс рентабельности 1,4 1,2 0,9

Conclusions

• Under current energy prices the project is financially sustainable

and may be recommended for stakeholders.

• The implementation of a pilot project is expedient for Belarus for the

following reasons:

o The problem of electric power transmission to the grid is easily solved.

o There is legislation regarding tariffs.

o Constructive update at a gas-compressor station is possible.

o Great capacity of a gas-compressor station (80-96 MW).

o Financing is determined.

Thank you!

Energy Efficiency 21

GenevaApril 21, 2011

Victor VorobyovUNDP/GEF/UN ECE Project expert