S D H A

Petar Vasiljević, B.Sc.M.E., Radmilo Savić, M.Sc.M.E. andPE “Beogradske elektrane”

Rehabilitation of DistrictHeating in Serbia

Euroheat & PowerEnlarged Working Group Energy Policy

11 September 2008 - Budapest

DH Companies in SERBIA

SERBIAF Serbia lays between 19o and 23o of east geographic length and41o to 45o of north geographic width.F The climate is continental moderate.F Population 7,5 million.F Capital, Belgrade with 2million inhabitancies issituated on 132 m altitudeand has an average temp.of 11,9 oC and rel. hum. of 71%.F Due to moderate climateindividual heating in smallplaces and parts of big citiesis present, while DH ispresented in bigger towns.

Beograd

Novi SadB.Palanka

Zrenjanin

Pancevo

Loznica

Sabac

Obrenovac SmederevoPozarevac

Subotica

Sombor

VrbasBecej

S.Mitrovica

NisKnjazevac

Zajecar

Bor

Majdanpek

Pristina

K.Mitrovica

Novi Pazar

Pljevlja

Vranje

LeskovacPirot

Djakovica

KragujevacJagodina

BatocinaG.Milanovac

TrstenikKrusevac

Kraljevo

CacakUzice

Priboj

B.BastaKosjeric

Valjevo

Vrsac

Negotin

Kladovo

KikindaSenta

Nova VarosPrijepolje

HEATING IN SERBIA

F Individual heating: electrical, woods, coal, natural gasF Local boiler station: coal, light fuel oil, heavy fuel oilF District Heating: natural gas, heavy fuel oil, coal

Number of flates in Serbia 3.200.000. 100%

Flates with electrical heating 1.440.000. 45%

Flates connected on DH or localboiler stations 800.000. 25%

Flates heating with woods, coal etc. 640.000. 20%

Flates on individual heating withnatural gas 320.000. 10%

District heating

DH in SERBIAü In 55 townsü Installed capacity 7000 MWth

(45 % in Belgrade)ü Average age of :

Ø BOILERS 30 yearsØ NETWORK 25 yearsØ SUBSTATIONS 25 years

Association - TodayDH association

of all DH companiesfrom Serbia

Members 55 DHCTotal DH production

capacity 7000MW

Annual Heat Production6-7.000 GWh

District heating

n Average annual heat supply 6000 GWhthq 20% households (640,000 flats)

n Average annual fuel consumption around 590,000 toeq 65% natural gas, 18% HFO, 2% LFO, 15% coalsq DH switched to NG, if access was availableq No use of biomass at allq No use of solid waste at all

n No use of cogenerationn Several studies for small cogeneration in large DH

plants

District Heating Development

1960 1970 1980 1990 2000

New Boilers – coalNew Boilers – HFO/LFONew Boilers - NGInvestment in DHRES

2008

District heating

Structure of average fuel consumption in DH (toe)

LFO, 8000Coal, 60000HFO, 102000

NG, 420000

DISTRICT HEATING IN SERBIAAT THE END OF YEAR 2000. (1/2)

§ Economic situation in country, especially in companies fordistrict heating was very bad. It is result of atrocious politicalsituation and not adequate relation of preliminary governmentabout heating and electrical energy prices.

§ The prices of heating energy are doesn’t change for severalyears, beside inflation from about 100% per year and growthof prices HFO and gas on world market.

§ That induces for all companies for district heating to workwith great losses. Therewith were not financial resources forannual repairs in heating plants.

§ Deteriorate pipelines wasn’t methodical changed, andequipment in substations is also deteriorate and outdated.

§ Measurement of delivered energy is into practice only insome business objects, not in all.

§ After Political transformation which are appear in theend of year 2000, situation enable better workingcondition for DHC, thry providing auspicious credits anddonations for modernization of plants and substitution ofdeteriorate pipelines, equipment in substation (pump,heat exchangers, heat meters), etc.

(2/2)

Priority in DH sector

v Rehabilitation of existing heat sources:Ø Increasing energy efficiencyØ Emissions reductionØ Decreasing heat lossesØ Modernisation of network and substations (heat

meters, thermostatic valves, heat coast alocators)v Rational use of fuels, increasing of NG usev Increasing use of biomass fuels and introduction of new

technologies, more efficient and more environmentalfriendly

History

n In last decade of XX century, no investment,production at the edge of technical andeconomical capabilities in DH sector

n Reformation in energy sector in Serbia (2001-2005) together with activity of IFI was startpoint for rehabilitation of DH sector

n During 2001 in 3 biggest towns in Serbia(Beograd, Nis, Novi sad), implementation ofthe programme started

Investment in DH rehabilitationv First donation was from Danish government at the end

of year 2000. – 1.1 mil DEM in spare partsv From 2001. – GRANTS AND LOANSv The biggest implemented project - KfWü Grant is in total 17.7 Mil € for rehabilitation of DH in

Beograd, Novi Sad and Nisü Modernization of heat production processü Replacement of out-of-age pipelinesü Reconstruction and replacement of substationsü Education of staffü Pilot-projects as a demonstration for a new tariff system

KfW Project

12 + 8 + 2+5.5 mil€2006/07/08…III phaseLOAN/GRANT*

10 mil €2002/03II phase GRANT7.7 mil €2001I phase GRANT

* Towns:Niš, Kragujevac, Kraljevo, Pirot and Sombor

Other projectsvBelgrade DH rehabilitation projectü Loan from EBRD + donation from SIDAü In total 20+2 Mil € for rehabilitation of DH in

BeogradvFeasibility Study for new CHP plant in Belgrade is

startedv Several small projects like EU/EAR EE Fund with

towns contribution (for 6 towns). Implementationof the projects: Serbian Energy Efficiency Agency

EAR DH rehabilitation project

n Donation of 3,8 mil € (per city) for equipment andwork will received Subotica, Pančevo, Čačak,Valjevo and Užice. Total amount around 22 mil €

n With this project will be covered:q Replacement of out-of-date boilers with newq Replacement of the pipelinesq Reconstruction with modernisation of the substations

including measuring of delivered heat energyq Monitoring and control of the process of production

and distribution of heat thermal energy byimplementation of PLC and SCADA systems.

District heating

KfW – I, II, III phase

Kragujevac

Nis

Novi Sad

BEOGRAD EBRD,KfW – I, II phase

KfW – III phase

Pancevo

Čačak

Užice

Subotica

EAR DH project

Valjevo

Kraljevo

Pirot

Sombor

DH in Energy Low

n Adopted on 01 August 2004.n Full responsibility and jurisdictions,

including tariff systems, are on localauthorities!

n Heat metering billings become aObligation

n Producers which use RES or waste,meeting requirements regarding energyefficiency

Priority for LA and DHC

vImproving the quality of the service and reducingthe costs

vImplementing tariff system that promote energysavings

vImproving the financial situation of Toplana`svSupporting low-income householdsvInstalling Heat Metering in substationsvAchieving cost covering tariffsvReleasing municipal budgets from direct payment

(investment) subsidies for DH

BELGRADE EXPERIENCEn Rehabilitation of the DH system in the Novi

Beograd area was implemented by KfW project.q 110.000 customersq 6.500.000 m2 of heating areaq 1.000 MJ/s connected load

n Production plant “Novi Beograd”q Modernisation of the thermal energy production process

control on 4 boilers, 116 MW eachq Central Hardware unit PLC S7-400 was installedq Whole process is managed by

Siemens SIPROCS-SCADAq Measuring of delivered heat on

all (6) main pipelines

Thermo-command roomMODERNISATION RESULTS

n More Secured processesn Significantly faster response

for all eventsn Reduced time in technical

production stopsn More system information for operator

Efficiency isincreased and

productioncosts are

reduced by 5%

PIPELINESn Replacement in total amount of 10 km of worn-

out classic main pipelines with preinsulated;diameter f 88-600 mm

n Replacement of 80 compensators f450 - f650

RESULTS: Losses in water (leaking) are reduced by100% in this area, e.g. 10% in NBGD area

Thermal SUBSTATIONS 1/2n Reconstruction and modernisation of 600

substations (with variable flow)q Flow regulation (“combo valve”)q Regulation of pressure and overflow valveq Ultrasonic measuring of the flow (heat meter)q Automatic cabinet with controlers

Thermal SUBSTAUIONS 2/2

n Basically, substation is operating with localregulation with controller S7-200 in the functionof the outdoor temperature

n Prefabrication of the substation was done in BEworkshops, with BE stuff; this provide that totalamount per substation (650kW) e.g. procurement,montage and installation are not excide 4000 €

BENEFIT: In period when out-door temperatureis higher then 5 oC (40% of heating period), needsfor delivered heat is reduced by 20%

Pilot PROJECTn Installing of the Heat Cost Allocators and

thermostatic radiator valves

Results:- Reduction in delivered energy 15%- Reduction in electrical energy 40% (variable flow pumps)

EBRD + SIDA Projectn Realisation in progressn This loan is used for rehabilitation of the heating area of

DUNAV, KONJARNIK and VOZDOVACq No of flats: 55.000q 800 MJ/s connected loadq Modernisation of the product. sourcesq Inst. big heat exchangerq Inst. of the econom.for boilersq Installing of DCS + BMSq Installing of the frequency

regulation on main circ. pumpsq Modernisation of 1600 substations

SIDA Donation

n Consultants services on realisation of theproject

n Modernisation of 85 substations in Zemunheating area

n Shutting-down of the local boiler station“Ivankovacka” (coal fired in the center of thetown) and connecting all buildings of theTechnical University Center to district heatingnetwork

Needs for investment

n It is obvious that thru all existing project wascovered only 10 cities

n Our estimation is that this 10 towns needaround 50 mil € for finalisation ofrehabilitation and modernisation of DHsystems

n Other 45 towns need at least 150 mil € in next10 years for rehabilitation of DH systems

n Such big amount of funds can not be providedby the IFI`s, but PPP will be necessaryapproaches for co-financing in DH rehabilitation

ABOUT COMPANY

PE “Beogradske elektrane”

1967

1965

1963

TO “Нови Београд”

At the begining…

About Companyn Established 03. jun 1965. with 315 MW installed

capacity at location of Novom Beogradun No of heating source 66n Capacity 2.600 MWn Pipeline trace 570 kmn Thermal substation 6235n No of connected flats 292.560n Bussiness consumers 8.200 objectsn Total heating area 19.478.942 m2

n Employes 2400n Heating areas: Novi Beograd, Dunav, Voždovac,

Medaković, Cerak, Miljakovac, Borča, Banovo brdo,Zemun, Mirijevo, Konjarnik, Višnjička banja,Batajnica, Barajevo, Mladenovac.

RES & ENEFn Several project are on-goingn Using of geothermal water energy – Heat pump for

climatisation of our building in Konjarnikn Using of solar energy for preparing of domestic hot

water in area of Cerakn FS for 350MWe CHP –– Novi Beograd in progressn Using of solid biomass instead of coaln Saving primarly energy thry Modernisation and

automatisation of biggest production plant`s anddistribution systems with automatisation of thermalsubstation`s

n Introducing of measuring of energy and new tariff`ssystem

Contribution to ecologyn In last 30 years “Beogradske elektrane” shut down

1000 local boiler station`s – running on coal andHFO

n Existing customers are connected to large heatsources

n This is a great contribution to Belgrade Clean airn Due to technical reasons – it is not possible to shut

down alln We have to find best solution for them, acceptable

from economical and environmental side

Using of coaln In total fuel consumption coal is tacking around 1%, but in

total amount is around 10.000 t for one heating seasonn Projection for next five years is reduction to 5.000 t with

further shutting down of LBSn This amount of coal during the combustion realise

significant amount of pollutants in the air (sulphur oxides,nitrous oxide, soot…)

n Special problem is spreading out of small parts and coaldust in surrounding during the transport and delivering,possibility of selfconbustion during storaging, cleaning ofboiler from residues and ash, storaging and manipulationwith ash…

n Because of this, BE conduct a special test – running severalheat sources during last heating sesaon on biomass without any technical modification. BE IS PIONEER IN THISAREA - FIRST IN SERBIA RUN BIG PLANTS ONPELLETS AND/OR BRIQUETS

Choosing of Heat Sources

n With 5 different heating sources we “cover” all type'sof boilers for solid fuels, transport and dosing of fuel,controlling of combustion air witch making of resultsrepresentative.

n Types of boiler: block, casted, membransn Fuel transport: elevators, rolling with tapes, manualn Dosing of fuel: mechanical (snail or impuls) and

manualn Combustion air: forced by fan and natural circulationn Separation of solid parts in duct chanelsn Chosede heating plants:n Barajevo, Sremcica, Senjak, Bogoslovija and

Mirijevski bulevar

Practical workn High trained team and sertificated laboratory

was collecting all data with usual operatingwith coal

n Next day, from morning start, all proceduresand activites was repeated with bimass

n For science analysis, we also prepared mixtureof 25% and 50% of coal and biomass

n All test was finished within a month, andanother month for analysing of data andpreparing a Report

n Biomass used: PELLETS AND BRIQUETS

Boiler station ”BARAJEVO”TECHNICAL DATAn F Operatin since 1987n F Instaled capacity 7,675 МWn F Number of boilers 5n F Single boiler capacity 1,535 МWn F Boiler type REMAX-GAn F Boiler manufactured 1986/89n F Operating temperature 110/70 оСn F Consumers capacity 4,26 МWn F Heating area 35903 м2

n F Sybstation type directn F Distributon system 110/70 оСn F House instalation regime 90/70 оС

Boler station“SENJAK”

Heat plant“SREMCICA”

Combustion of briquettesBoiler station:

“Mirijevski bulevar”, “Uralska”, “Bogoslovija”

Reality…n It is possible to operate in status “as it is”

BUT…n Real ecological effect's and maximum of

energy efficiency will be reached with completereconstruction and modernisation ofproduction plants

n For that, we need financial support, presentlynot available

IT IS TIME FOR DECISIONS!!!

THANK YOU FOR THE ATTENTION!VIELEN DANK FÜR IHRE

AUFMERKSAMKEIT!

PE “Beogradske elektrane”Petar Vasiljević, B.Sc.M.E.

p.vasiljevic@beoelektrane.co.yuRadmilo Savic, M.Sc.M.E.r.savic@beoelektrane.co.yu

Euroheat & PowerEnlarged Working Group Energy Policy

11 September 2008 - Budapest