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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
waterTotal Hot water Steam
Hot
watertotal Steam
Hot
watertotal
t/h MWth MWth MWth t/h MWth MWth t/h MWth MWth
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
waterTotal Hot water Steam
Hot
waterTotal Steam
Hot
waterTotal
t/h MWth MWth MWth t/h MWth MWth t/h MWth MWth
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
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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
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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
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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.
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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.
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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
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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.
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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
Outer wall from ceramist concrete panels
Cellar ceiling
Windows
0.887
0.676
0.992
0.390
467/5
Attic ceiling
Outer wall from ceramist concrete panels
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
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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
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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