Proceedings

2. THE PRODUCTION OF HEATING AND ELECTRICITY
FROM CONVENTIONAL SOURCES
2.1 The state of affairs
One of the major causes of the air pollution in the urban area is given by the steam
power plants, responsible for most urban SO2 and NOx emissions, especially when the
applied technology is old. The impact of the firing plants on the environment is
significant: climate changes induced by the greenhouse gas emissions, wide
dispersion of the polluting substances, as well as alterations of the air quality.
As chemical sources of energy, steam plants usually burn energetic coal (pit and
brown coal), pit gas, or oil fuel. Considering the outcome, steam power plants can be
either electricity suppliers - with an additional production of heating for internal
(own) use, or electricity and heating suppliers, operating as an urban heating plant.
According to the National Strategy for Energy, the supply of heating and electricity in
Romania is still highly dependent on the use of fossil fuels, among which the most
important are the coal and oil fuel (46%), followed by natural gas (39%). Natural gas
is a source of energy with a higher energetic performance and a lower pollution level.
Nevertheless, due to its high procurement price, all recent economical forecasts in the
European energy sector point out to coal as a base fuel for the next period.
In Romania, the energy sector is characterized by:
� low efficiency in the use of the energy sources;
� ageing equipment and facilities, leading to important energy losses, ultimately
paid for by the final consumers;
� poor technical and economical performance;
� high operating and maintenance costs.
Under these circumstances, complying with the Kyoto Protocol requires the
implementation of important investment projects in firing plant technology, aimed at
the decrease and sweetening of the emissions. Other major goals are the partial use of
renewable fuel in the firing process (biomass), as well as the cogeneration of heating
and electricity, raising the efficiency in the consumption of basic resources.
We find here the problems already pointed out in the water sector: the centralized
(urban) heating systems have a three-sided social-economical impact, reaching the
energy, the environmental and the public services sector. On the one hand, they need
to satisfy the energy demand, without harming the environment and the health of the
population; on the other hand, the tariff of the services rendered must remain
affordable.
2.2 Financing the investments
Investments in the technology of urban firing plants are financed mostly from loans or
subsidies, given the prevailing state ownership of such companies and subsequently
their low profitability. Loans are usually granted by financial institutions supporting
the development, like regional development banks, multilateral development
institutions and development agencies.
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