Forestry: Fuel Switch Pilot Project

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Forestry Fuel Switch Pilot Project Replication

December 14, 2005 h. Anel, Sofia
Yeni Katsarska FSPP Coordinator
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Project description (1)

• Location South from Stara Planina
• Towns of Smolyan, Chepelare, Bansko, Karlovo,
  Municipalities of Ardino, Suedinenie, Dryanovo,
  Malko Turnovo
• Close location to high density of forest
  resources and wood processing industries
• Existing situation
• Municipal buildings with light fuel oil (LFO)
  fired heating installations from early 60s to 80s
• high emissions of CO2 and SO2
• high energy loses and related high expenses
• poor working and education conditions

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Project description (2)

• Project type and objectives
• 28.3 MW installed capacity fuel switch from
  light fuel oil (LFO) to woody biomass
• reduction of GHG and stimulation of
  silvicultural activities
• Project size
• - Small scale scenario, opportunities to double
  replaced capacities twice
• Project stakeholders
• - Municipalities
• - National Forestry Board
• - Ministry of Economy and Energy and Ministry of
  Environment and Water

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Project description (3)

• Sector background
• - high GHG emissions
• high fuel prices, incl. coal, LFO and gas
• available, but insufficient utilization of wood
  residue from thinnings and other silvicultural
  activities
• Framework Convention on Climate Change
• - ratified the UNFCCC
• - ratified the Kyoto Protocol
• - possible implementation of KP mechanisms
• - possible implementation of Green Investment
  Scheme

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Project sites (1)

• Smolyan

• Municipal buildings, schools and private
  consumers
• - total installed capacity 2x4MW8MW
• - necessary investment appr. 5 mln. Leva
• - feasibility study, energy audit

• Chepelare

• Municipal buildings and schools
• - total installed capacity 4x0.3kW1.2MW
• - necessary investment appr. 0.72 mln. Leva
• - feasibility study, energy audit

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Project sites (2)

• Bansko

• Municipal buildings (12), 5 schools, 14 hotels
  and private consumers
• - total installed capacity 2x5MW10MW
• - necessary investment appr. 10 mln. Leva
• - design

• Municipal buildings and schools,
• - total installed capacity 6x0.5kW4x0.3kW4.2MW
• - necessary investment appr. 2.37 mln. Leva
• - feasibility study, energy audit

• Karlovo

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Project sites (3)

• Suedinenie

• Municipal buildings and schools,
• - total installed capacity 1x0.5kW5x0.3kW2MW
• - necessary investment appr. 1.2 mln. Leva
• - feasibility study, energy audit

• Dryanovo

• Municipal buildings and schools,
• - total installed capacity 6x0.3kW1.8MW
• - necessary investment appr. 1.07 mln. Leva
• - feasibility study, energy audit

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Project sites (4)

• Malko Turnovo

• Schools
• - total installed capacity 2x0.25kW0.5MW
• - necessary investment appr. 0.3 mln. Leva
• - feasibility study

• Municipal buildings and schools,
• - total installed capacity 2x0.3kW0.6MW
• - necessary investment appr. 1.07 mln. Leva
• - feasibility study

• Gorno Prahovo
• And Mlechino

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Project baseline

• Baseline scenarios
• - switching from LFO to natural gas
• High costs, limited opportunities for
  gasification
• business as usual, i.e. continuing to use of LFO
• High costs, exhausted technical equipment,
  environmental pollution, poor working conditions
• Emissions reductions through fuel switch
• 28 000 tCO2e annually
• Not included reductions of methane from
  decomposing of stored wood residue (global
  warming factor 21)

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Project financing

• Total investment costs approx. 21.73 mln. Leva
• Depending on technical equipments country of
  origin necessary investment could increase up to
  40
• Municipalities from 20 to 30
• -less developed municipalities up to 20
• National Funds up to 30
• Environmental and energy efficiency soft loans
  (substations and heat distribution network)
• National and/or international investors 40

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Benefits

• Environmental
• - greenhouse gases emissions, sulfur dioxides
  and nitrous oxides reduced
• Forestry
• - establishment of a market for shedding from
  forestry activities
• - increased forests sustainability and minimized
  fire risks
• - reinvestment of additional financial income
• Economical
• - high return of investments, 25-30 reduction of
  heat energy expenses
• Social
• - ensured permanent heat supply and comfort
• - additional permanent and temporary employment

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Contacts (web-page will be accessible until
January 2007)
FSPP www.fdpbg.org forestrybg_at_fdp-bg.org y.kats
arska_at_fdp-bg.org tel./fax [phone]