CTO Assessment - European Commission

INGALINA - DIDZIASALIS
Biofuel Boiler House and
District Heating
Contact: Ms Gudrun Knutsson • Swedish Energy Agency • Box 310 310 • SE SE-631 04
Eskilstuna • Sweden • Tel: +46 16 544 20 72 • Fax: +46 16 544 22 64/20 99
E-mail: gudrun.knutsson@stem.se • website: www.stem.se
Ignalina and Didziasalis are neighbouring
towns on the Northeastern part of Lithuania
in the Utena region, relying upon heat supplied
from biomass. The biofuel boiler installation
and district heating projects are part of
Sweden’s International Climate-Related Energy
Program. The Ignalina project was implemented
in 1999 and the Didziasalis project
followed the example of it’s success in 2001.
Main aims and motivations
Ignalina: The regional administration wished
to reduce the use of heavy fuel oil (mazout)
and to start to use local fuel as biomass.
Didziasalis: The district heating system was
installed in the 1980’s to support the building
material industry. When the industry was
closed down in the early 1990’s the heating
system became inefficient to heat the remaining
buildings in the town due to it’s high production
costs, being designed to supply a larger
market than was actually needed. Following
Swedish Energy Agency (STEM)’s financing
of the first Ignalina project, Ignalina regional
council turned to STEM for some financial
support in the restructuring of the heating
system in Didziasalis.
Project details
The Ignalina project concentrated heat production
into one newly renovated, already existing
boiler house and closed down two old
boiler houses. Mazout, with a lower level sulphur
content, will still be used but to a far
lesser degree for peak load and reserve capacity
instead of the previous 60% of supply.
The Ignalina project includes the installation
Ignalina
Energy MWh/y
of new pre-insulated pipeline of 300 meters
to connect the existing networks as well as 30
new substations in buildings and block centers.
In Didzaiasalis a new more cost effective boiler
house was built nearer the town. Furthermore
the distribution system has been partly renovated
and 43 substations installed.
Overall evaluation
Ignalina regional administration fulfilled the
aim to reduce the use of heavy fuel oil (Mazout)
and to start using local fuel as biomass to
create local employment and adhere to stricter
environmental rules that came into force in
1999 from the Lithuanian government.
Biofuel is expected to replace 2,300 tonnes of
Mazout for each project. The energy saving
from the pipeline and substation networks
amount to 1000 MWh/y per project.
Recently Ignalina town inagurated further
biofuels boilers in the same boilerhouse as the
first project. This means that the heat supply
in the whole town and practically the whole
surrounding Ignalina region is based on woodfuel.
Enabling factors
Both projects received financial support from
STEM in the form of loans. The Didziasalis
project also received 50% of costs from the
Lithuanian government. Ignalina has 6 different
suppliers of biomass so there is now
possibility of price competition.
Challenges
All municipal heating plants and distribution
networks were decentralized in 1997 and
Didziasalis
Biofuel 25,000 145,000
Mazout 10,000 1,500
Reductions
CO 2
8,112 t/y 6,300 t/y
SO 2
123 t/y 50 t/y
No x
3 t/y 5 t/y
many municipalities became shareholders in
district heating companies. This caused problems
as big towns and smaller communities
had different requirements. Further reorganization
took place and municipalities took over
the direct management and responsibilities of
the heating companies in their area. This can
cause credit problems, as most lenders normally
require a 5-6 year economic result history
before providing loans. STEM was prepared
to take the risk here as state guarantee
was provided but this is only the case for few
regions.
Replication Potential
The population is quite evenly spread out which
is important for the implementation of biofuels
projects. Therefore the conclusions of the
Ignalina project will contain valid insights for
Lithuania in general. Biofuel resources in the
country are good and the technology is available,
nearly every municipality has a District
Heating system installed that could be renovated
and reworked to make it more efficient
and utilize biofuels.
Change in perception of implementing
RES projects
It was easier to implement the Didziasalis
project as financing was sought from the same
source as for the Ignalina project.
The Lithuanian authorities assert that the
projects have played a role in the early introduction
of RES into the country.
RES Increase
The savings caused by the plant from 1998
to 2000 in Ignalina alone are as follows:
Expenses from heat energy production
in the company decreased by 26.5%
Total heat energy costs per unit were
decreased by 17.7%
Expenses for fuel import were decreased
by 93.4% due to the fact that all the
biofuel is produced locally in contrast
with the imported fossil fuels.
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