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DHC Perspectives in Tallinn

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DHC Perspectives in Tallinn DHC Perspectives in Tallinn Priit Koit Utilitas, CEO April, 2015 Utilitas Leader in Estonian district heating sector • Estonian holding company investing in Estonian utilities sector • Networks in 8 cities across Estonia - Tallinn, Maardu - Keila, Haapsalu, Rapla, Valga, Jõgeva, Kärdla • 500 km of district heating networks managed • 4 400 buildings heated • 39 boilerhouses with total installed capacity of 1.1 GW • Biomass-fired CHP with 25MW electric and 67MW thermal installed capacity 1.8 TWh of heat and 170 GWh of electricity sold annually Market share in Estonia approximately 1/3 2 Largest component in national energy balance Total energy consumption in Estonia, 2013 Energy consumption in households, 2013 Other Transport 3% 20% Transport District Heat 26% heating 43% Households 34% 39% Electricity Electricity 16% Heat total 34% Wood and Gas and 58% solid fuels peat 5% 19% Heat • 38% of total energy consumption Source: Statistics Estonia • 58% of households’ energy consumption • Of which district heating above 50% in total and ca 70% in urban areas • Largest utility bill, ca 6.6% of household expenditures (electricity 3.5%) Best suited for implementing European and national policies on energy efficiency, energy independence and promoting renewable energy sources 3 District heating in Tallinn Talinna Küte supplying heat to 2/3 of Tallinn Commercial • 3640 buildings heated 18% by Tallinna Küte State and Residential • 130 thousand - 70% of municipality 71 % all Tallinn households – 11% using district heating • All sales subject to price regulation by Estonian Competition Authority 4 Networks and key production facilities 426 km of district heating networks across the city 25 MW Maardu 60% of heat 181 MW 220 MW sold supplied from 3 CHPs in Eastern Tallinn KRISTIINE KM Historically 3 network areas, interconnected in 282 MW 2011 to transfer base load 5 Reversing fuel mix in production Reducing share of fossil fuels to just 20% • Replacing natural gas with Heat produced for Tallinn district heating network local biomass and waste 100% 250 incineration Gas boilers 90% 20% - 165 million m3 imported natural gas 80% 200 47% Mustamäe replaced by local fuels 70% 58% 18% Biomass, (CHP?) - EUR 50 million 75% 60% 150 decrease in annual fuel Väo 2 imports to Estonia 19% Biomass, CHP 50% 100% 10% - Reducing annual CO2 emissions by more 40% 100 Iru WTE than 200 thousand 17% 17% 17% Waste, CHP tons 30% 20% 50 Väo 1 Biomass, CHP 25% 25% 26% 26% 80% produced from 10% non-fossil fuels by 2018 Gas, mln. m3 0% 0 2008 2009 2014 2016F 2018F 6 Utilizing benefits of cogeneration Generating enough electricity to supply all households using DH, as well as all public transport needs Electricity generated in CHPs supplying Tallinn DH network 200 000 Tallinn households 180 000 160 000 47 500 Heat to 140 000 Tallinn households with DH Electricity 130,000 120 000 households via 45 000 100 000 Green electricity to 80 000 public transport 60 000 40 000 88 000 Number of households supplied householdsof Number 20 000 0 2013 2014 2015 2016 2017 Väo 2 (Biomass CHP) Iru WTE (CHP) Väo 1 (Biomass CHP) 60-70% supplied from CHPs by 2018 7 Future challenges Efficiency, reliability and competitiveness Environmental • Coping with decreasing volumes resulting from • Maximising use of local biomass in energy energy efficiency measures production • Modernising existing production facilities to • 1.5% annual volume decrease in existing keep up with environmental standards and customer base, somewhat compensated by emission targets new connections • Contributing to fulfilling national and European • Increasing system efficiency targets in environmental protection and climate policies • Remote metering for all clients in 2015-16 • Renovation of networks with largest diameter networks fully renovated in 2015 City of Tallinn • Potential introduction of capacity fee applying for 2018 • Optimising flow temperatures European Green • Replacement of substations in co-operation Capital award with customers • Exploiting cogeneration potential Estonia to hold presidency of the • Tapping district cooling potential Council of the EU in January-June 2018 8 [email protected] | www.utilitas.ee Punane 36, 13619 Tallinn Telefon 642 4071 Utilitas stands for usefulness and functionality. The group’s mission is to provide solutions suitable both to our customers and environment, producing and distributing energy with highest possible efficiency and utilising to the largest extent possible renewable and local sources of energy. .
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