Energy Saving Measures at Social Sphere Facilities in Koryazhma, the Oblast,

Koryazhma Municipality implemented energy saving measures in municipal buildings with co- financing from NEFCO. The calculated savings will allow repaying the investments within 2,3 years. Short site description. The town of Koryazhma is located in the southeast part of the Arkhangelsk Region, 40 km east of . The population is 44 300 people. The average annual, outdoor temperature is +1,4.°С, the average temperature of the coldest month is -4.6 °С. The duration of the heating season is from September 15 till May 15. Heat supply to 325 housing and public facilities (782.500.m²) is provided from the CHP (combined heat Bathhouse Old temperature regulator and power station). Most of the facilities did not have individual energy meters. The hydraulic and temperature modes of the heating system were not adjusted, leading to waste of heat and providing low quality heating and hot water supply to the buildings located far from the CHP. Heating and domestic hot water for the existing city bathhouse is supplied with hot water from the CHP of Kotlas Pulp and Paper Mill, and steam from a separate boiler-house running on natural gas. All other consumers, except the bathhouse, had been disconnected from this boiler-house. This resulted in very inefficient operation, high heat losses, high consumption of expensive fuel and considerable expenses for operation. Objectives and tasks of the project. The project envisaged implementation of energy saving measures in public buildings and residential houses: providing designed hydraulic and temperature modes in the heat supply system, installation of heat and water meters allowing it to pay bills according to actual consumption, reconstruction of the bathhouse and closedown of the gas boiler. This would reduce energy costs and improve the environment by reduced emissions. Business plan. By the request of Koruazhma Municipality, in 2005 the Archangelsk Oblast Energy Efficiency Centre (AOEEC) developed a Business Plan for the project to apply for external financing. To provide design hydraulic and temperature modes in the heat supply system and to each facility, it was envisaged to install 700 throttling orifices on pipes out from the main networks and 350 thermo regulators on the hot water supply systems into the buildings. This would ensure better heat distribution to the buildings, improved quality of heat supply and heat savings. Reconstruction of the municipal bathhouse envisaged replacement of local heat sources (boiler- house) by individual, electrical furnaces. It was also planned to replace the windows in the bathhouse and to install heat and water meters. The project also envisaged installation of heat and water meters in Kindergarten № 17.

Initially, a total investment of 5 100 000 RUR were budgeted. However, the actual project costs came out to be a bit lower, stimulating implementation of some additional measures: Pay Investments Calculated savings ENCON Measures back № RUR kWh/year RUR/year Years 1 Maintenance of designed heating and hydraulic 3 326 220 rates in the heat supply system. 4 710 150 1 128 000 3,3 2 Installation of the meters in Kindergarten 17 86 280 3 Reconstruction of the bath house. 1 403 200 7 951 920 1 110 060 1,3 Total: 4 815 700 12 662 070 2 238 060 2,2 4 Additional measures (water heater, circulation 956 525 1 163 000 278 480 3,4 pipe and heat insulation) Total: 5 772 225 13 825 070 2 516 540 2,3 Financing. Through the Energy Saving Credit Facility, the Nordic Environment Financial Corporation (NEFCO) is providing loans for municipal energy saving projects in Northwest Russia. A minimum of 10% municipal equity is required. NEFCO provided a 4 590 000 RUR loan with 3% interest and 5 years repayment period. The rest, 1 182 225 RUR, was financed by Koruazhma Municipality. Implementation. The project implementation started in August 2005 and was completed by November 2006 (as most of the works could not be implemented during the heating season). During the implementation period, it was decided to implement additional measures to improve the energy performance of the buildings and to ensure proper hot water supply in the bathhouse: installation of a second water heater and hot water circulating loop with pump, insulation of pipes in the heating substations and external network. Monitoring and results. The Director and users of the bath-

Bath house steam room after repair house are very satisfied with the new installations. According to the Municipal Enterprise of Communal Services (MECS), only closing down the boiler house gave 1 670 000 RUR savings during the first heating season, which is 50% higher than expected. MECS experienced the start up of the heat supply in 2006 was quicker and more efficient. The hydraulic and temperature modes have been optimised, resulting in much less complains from the city inhabitants. MECS shall continue monitoring of the results until the loan is repaid to NEFCO. Conclusions and lesson learned. The project was Closed down boiler house successfully completed even though the local Administration had no previous experience of such projects, neither in cooperation with international financial institutions. It was demonstrated that such projects should be thoroughly developed and calculated in order to avoid changes during the implementation period. The energy saving measures can easily be replicated in many other municipalities having similar type of problems with heat supply.

For more information of this project and to find out how Energy Efficiency can help you please contact Tamara Kononova: Archangelsk Oblast Energy Efficiency Centre 4 Lenin sq., office 1102, Archangelsk, Russia Phone:+7 8182 65 21 36, Fax:+7 8182 65 71 42; E-mail: [email protected] , Internet:www.aoeec.com