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District Heating in Bulgaria

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District Heating in Bulgaria STATE ENERGY REGULATORY COMMISSION - BULGARIA DistrictDistrict heatingheating inin BulgariaBulgaria TOMA GIORTCHEV commissioner May 18-24, 2002 Newark, New Jersey – Washington, DC, U.S.A. STATE ENERGY REGULATORY COMMISSION - BULGARIA DistrictDistrict heatingheating inin BulgariaBulgaria ¾ 21 District heating companies ¾ 9 companies with combined heat and power production ¾ More than 40 years experience ¾ 570 000 dwellings ¾ 1.650 mill. People – 20% of population ¾ Public buildings with a heating volume equal to 240 000 normal dwellings May 18-24, 2002 Newark, New Jersey – Washington, DC, U.S.A. STATE ENERGY REGULATORY COMMISSION - BULGARIA DistrictDistrict heatingheating companiescompanies inin BulgariaBulgaria ROMANIA RUSE Pleven A I Shumen Varna Veliko Tarnovo SERB Sofia Sliven Pernik Burgas BLACK SEA Stara Zagora Pazardjik Plovdiv Blagoevgrad Legend TURKEY RS DHC @A INDUSTRIAL PP @A Nuclear PP - @A THERMAL PP GREECE STATE ENERGY REGULATORY COMMISSION - BULGARIA HeatHeat andand powerpower productionproduction fromfrom CHPCHP ¾ 1900 GWh/year power production ¾ 12 000 GWh/year heat production ¾ 1,4 billion m3 natural gas ¾ 1 million tones of coals ¾ 160 000 tones of heavy fuel oil ¾ 18 % transmission losses May 18-24, 2002 Newark, New Jersey – Washington, DC, U.S.A. STATE ENERGY REGULATORY COMMISSION - BULGARIA CompaniesCompanies withwith combinedcombined heatheat andand powerpower productionproduction 25 21 20 15 11 10 9 5 0 DHC-total DHC-with Industrial May 18-24, 2002 CHP PP Newark, New Jersey – Washington, DC, U.S.A. STATE ENERGY REGULATORY COMMISSION - BULGARIA SharesShares ofof CHPCHP companiescompanies inin powerpower productionproduction ((installedinstalled capacitiescapacities)) 5% 8% DHC with CHP 29% Industrial PP 36% Thermal PP 22% HPS over 5 MW Nuclear Power plant May 18-24, 2002 Newark, New Jersey – Washington, DC, U.S.A. STATE ENERGY REGULATORY COMMISSION - BULGARIA Licenses in the heat sector issued by SERC 14 CHP Heat production Heat transm Total number 59 24 21 May 18-24, 2002 Newark, New Jersey – Washington, DC, U.S.A. STATE ENERGY REGULATORY COMMISSION - BULGARIA ChangesChanges inin thethe heatheat energyenergy marketmarket 19901990 -- 20022002 ¾ Decreasing consumption of heat in the industry – 16 times for 12 years ¾ Decreasing consumption in the social and public sector – 2,5 times ¾ Increasing consumption of heat till 1995, and subsequent decreasing up to now ¾ Rising requirements for quality from the side of consumers May 18-24, 2002 Newark, New Jersey – Washington, DC, U.S.A. STATE ENERGY REGULATORY COMMISSION - BULGARIA SecondarySecondary legislationlegislation concerningconcerning heatheat energyenergy subsub sectorsector ¾ Ordinance on permits and licenses – companies with heat power 1 MW and higher, and companies with electric power 5 MW and higher are to be licensed by SERC ¾ Ordinance on heat supply – regulates the relations between DHC and consumers ¾ Ordinance on heat prices and tariffs – regulates determination of heat prices and tariffs ¾ Ordinance on power prices and tariffs - regulates determination of prices and tariffs for electric power May 18-24, 2002 Newark, New Jersey – Washington, DC, U.S.A. STATE ENERGY REGULATORY COMMISSION - BULGARIA MainMain technicaltechnical andand technologicaltechnological problemsproblems ¾ Small portion of heat production is generated by combined scheme ¾ High transmission losses ¾ Physically old and worn out equipment ¾ Low energy efficiency in residential buildings ¾ High heat losses in the building heat installations May 18-24, 2002 Newark, New Jersey – Washington, DC, U.S.A. STATE ENERGY REGULATORY COMMISSION - BULGARIA EnergyEnergy StrategyStrategy TechnicalTechnical measuresmeasures forfor RehabilitationRehabilitation ¾ Modernization of substations – 20% lowering of expenses expected ¾ Rehabilitation of the heat transmission network - 10% lowering expected ¾ Rehabilitation of heat sources in order to guarantee a safe and reliable operation - 2–10% lowering expected ¾ Completing the implementation of the system of heat accountancy ¾ Implementation of information systems for management and control May 18-24, 2002 Newark, New Jersey – Washington, DC, U.S.A. STATE ENERGY REGULATORY COMMISSION - BULGARIA EnergyEnergy StrategyStrategy EconomicalEconomical measuresmeasures ¾ Stopping the subsidies : DH Companies will work normally with possibility for investment and lowering their expenses Creation of stimuli for energy saving Companies will become attractive for investors ¾ Improving the management of Companies Capable specialists Increasing the qualification of employers More active participation of municipal authorities and other organizations interested in progress of district heating companies STATE ENERGY REGULATORY COMMISSION - BULGARIA EnergyEnergy StrategyStrategy EconomicalEconomical measuresmeasures ¾ Program for priority investments: From the government – before completing the privatization process From private investors – after completing the privatization May 18-24, 2002 Newark, New Jersey – Washington, DC, U.S.A. STATE ENERGY REGULATORY COMMISSION - BULGARIA EnergyEnergy StrategyStrategy SocialSocial activitiesactivities ¾ Guarantee for price accessible power ¾ Implementation of new forms for social help, including social tariffs ¾ Facilitate the access to more economic forms of heating ¾ Increasing the energy efficiency measures, causing lowering of the bills May 18-24, 2002 Newark, New Jersey – Washington, DC, U.S.A. STATE ENERGY REGULATORY COMMISSION - BULGARIA EnergyEnergy StrategyStrategy KeyKey activitiesactivities ¾ Government guarantee for financing urgent investment projects ¾ Improving the management of DHC ¾ Further introducing units for individual measuring and regulation of heat ¾ Draw the attention of private investors May 18-24, 2002 Newark, New Jersey – Washington, DC, U.S.A. STATE ENERGY REGULATORY COMMISSION - BULGARIA ExpectedExpected resultsresults ¾ Strategy for privatization of thermal plants – end of 2002 ¾ New energy law – up to 03.2003 ¾ Rehabilitation of DHC – end of 2003 ¾ Privatization of DHC – up to 2005 May 18-24, 2002 Newark, New Jersey – Washington, DC, U.S.A. STATE ENERGY REGULATORY COMMISSION - BULGARIA Thank you for the attention TOMA GIORTCHEV Tel: +3592/980 81 54; fax: +3592/988 87 82 Web site: www.dker.bg May 18-24, 2002 Newark, New Jersey – Washington, DC, U.S.A..
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