Detailed Recommendations from TRACE

Detailed Recommendations from TRACE

Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized 1 December 20th, 2013 Public Disclosure Authorized 1 The findings, interpretations, and conclusions expressed in this report do not necessarily reflect the views and position of the Executive Directors of the World Bank, the European Union, or the Government of Romania. Table of Contents The TRACE diagnostic is part of work done under the Romania Executive Summary /1 Regional Development Program – a Reimbursable Advisory Service activity, undertaken by the World Bank at the request Methodology /7 of the Ministry of Regional Development and Public Background /9 Administration, with EU funding. The report was written by a National Legislation Regarding Energy /9 team comprised of Manuela Moț, Ranjan Bose, Sebastian Background Cluj-Napoca /15 Burduja, and Marcel Ionescu-Heroiu. Cristina Zirimis has provided logistical and administrative support throughout the Cluj-Napoca Sector Analysis /19 process. The team would like to thank the colleagues at the District Heating /19 Ministry of Regional Development and Public Administration Street Lighting /23 (particularly Ionuţ Trincă, Costel Jitaru, and Bogdan Ţigău), as Municipal Buildings /24 well as the colleagues in the Cluj-Napoca City Hall and the Cluj Power Sector /27 County Council, who supported the team throughout. The Urban Transport /29 team would also like to thank peer reviewers Stephen Water Sector /35 Hammer, Feng Liu, Paula Restrepo, and Pedzi Makumbe, for Solid Waste /37 the excellent feed-back provided. Energy Efficiency Recommendations /41 TRACE (Tool for Rapid Assessment of City Energy) was Urban Transport /42 developed by ESMAP (Energy Sector Management Assistance Municipal Buildings /48 Program), a unit of the World Bank, and is available for Street Lighting /50 download and free use at: http://esmap.org/TRACE. District Heating /52 Annexes /55 1 1 Executive Summary The limitations of TRACE The fact that TRACE is simple and easy to implement, also means that Why a study on energy efficiency? there are limitations with respect to the depth of analysis. For example, The main impetus for this report (and for the reports prepared for the the tool may identify District Heating as the a priority sector in terms of other six growth poles) is a request received from the Ministry of Regional potential energy savings, but it does not go into detail on the required Development and Public Administration. The request came within the costs to complete district heating rehabilitation projects. Thus, even if the context of on-going preparations for the 2014-2020 Programming Period, energy savings potential is assessed to be high, the costs may be even with Energy Efficiency being one the major themes of the Europe 2020 higher, and an investment in the sector may not be warranted. Similarly, strategy, and a critical priority for all EU Member Countries. Within although TRACE specifically focuses on the service areas that fall within Romania, local authorities that will want to access energy efficiency funds the purview of local authorities, the tool cannot factor in the institutional under the 2014-2020 Regional Operational Programme will need to first and legislative mechanisms that need to be in place to make a specific prepare energy efficiency strategies. The TRACE tool is specifically energy efficiency recommendation possible. targeted at local authorities, and is a good instrument for drafting such strategies. Boundaries of studied area While this work focuses on the growth poles in Romania, the analysis was What is TRACE? limited to the boundary of the center city. The reasoning for this is quite The Tool for Rapid Assessment of City Energy (TRACE) is a simple and simple: it is prohibitively difficult to collect individual indicators for all the practical tool for conducting rapid assessments of energy use in cities, The constituent localities of a metropolitan area. In most cases, this would tool helps prioritize sectors with significant energy savings potential, and have required in-depth discussion with over 20 localities, ensuring that all identifies appropriate energy efficiency interventions across six sectors— these localities had the necessary indicators for a particular service area, transport, municipal buildings, water and waste water, public lighting, and ensuring that they used the same methodology for the calculation of solid waste, and power and heat. It is a simple, low-cost, user-friendly, and these indicators. Nonetheless, the sector analysis and recommendations practical tool that can be applied in any socioeconomic setting. took the metropolitan scale into consideration, and the section on sound urban planning practices was done at the full metropolitan level. The advantages of TRACE TRACE is one of the most powerful energy efficiency tools, specifically Summary of findings developed for cities. It is simple, easy to implement, and quite intuitive, After the 1989 Revolution, Romania began its transition from a centralized and it allows a quick assessment of energy savings potential in six key system to a market-run economy. Today the country is a member of the public service areas: urban transport; water and wastewater; municipal European Union (EU) and NATO. After more than a decade of economic buildings; street lighting, power and centralized heating; and, solid waste restructuring and political change, the country has taken significant steps management. The tool can be implemented relatively quickly and is not to catch up with the economic performance of more developed EU data- or cost-intensive. Moreover it allows local authorities to get a rapid countries. Although radical reforms brought about significant changes, the assessment of their city’s energy performance, and to identify sectors that standard of living of Romanians is still behind the EU average. may be subjected to a more in-depth analysis. Cluj-Napoca (Cluj) is one of cities where such disparities are less pronounced, as the region is more developed and prosperous than most regions in the country. Cluj has developed quite well in the past few years, and it has become one of the most flourishing cities in the country, having 1 a good growing potential. At present, the city is an important economic clients. Subsidies are going to be gradually eliminated by the end of 2017, center, home to several local brands that have become famous when the liberalization of the market will be complete. Energy production nationwide as well as in Europe. Moreover, Cluj is known today as the from renewable sources is encouraged, and Green Certificates are “capital” of the IT sector in the country, due to an aggressive expansion of provided to such producers. this field in recent years. The local government has a number of ambitious projects to The city’s recent growth has led to significant changes in the develop the city, improve its performance and quality and, not in the social and economic life of Cluj residents. Most of these developments least, open the doors for more energy efficiency projects. Such plans have positively affected people’s life, whereas a few were accompanied by include expanding the public transport to the wider metropolitan area, inconveniences and difficulties. developing non-pedestrian networks, purchasing non-polluting buses, For instance, the increasing number of cars in the city caused improving the street lighting system, continuing rehabilitation of heavy traffic congestion, high fuel consumption, and large greenhouse educational facilities, and so forth. emissions. With only few parking lots, a handful of dedicated bus lanes, Cluj is one of the most advanced cities in Romania and it should and lacking needed ring roads to help re-route through-city traffic, continue to build on this foundation to become more developed and commuting has become quite a struggle for both private and public flourishing. Based on the results of the implementation of the TRACE tool, transport. The district heating system is undergoing significant challenges this report outlines some ideas on how that can be done. TRACE (Tool for following the massive disconnection of tens of thousands of customers in Rapid Assessment of City Energy) is a simple and quick diagnostic tool that last ten years. Despite some modernization and rehabilitation work that is used to assess a city’s energy performance in six service areas (urban has been performed on the network, some of the obsolete heating pipes transport, municipal buildings, water and wastewater, solid waste continue to deteriorate, allowing for water leakages and heat losses. management, public lighting, and power and heat) and to provide Although the water system is covering the entire city and all water recommendations for improving energy efficiency. In each of the service connections are metered, part of that infrastructure has also deteriorated areas, TRACE uses a benchmarking algorithm to evaluate energy cost throughout the years and is prompting heavy water losses in the network. savings potential, and factoring in the level of influence of local But there are also notable things Cluj has managed to accomplish authorities, it prioritizes what the authorities should do according to in the past few years. All streets in the city are lit; old inefficient bulbs where the biggest savings can be achieved. have been replaced with modern, efficient ones and, thus, reduced the To complete data collection and to get a more comprehensive electricity consumption; the transport network is well developed, idea of issues in the city, a World Bank field trip was organized in January connecting the city from one side to another; the generation of solid 2013. Work in Cluj-Napoca was carried out in close collaboration with waste is lower than other cities in the region; and the percentage of solid local authorities and public and private utility services providers. At the waste recycled is good. Most of the municipal buildings need end of this quantitative and qualitative analysis, several recommendations rehabilitation work to decrease heating consumption and reduce heating were drawn out.

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