N0. 4 / 2013 INTERNATIONAL MAGAZINE ON DISTRICT HEATING AND COOLING Financing DBDH - direct access to district heating technology www.dbdh.dk CONTENTS 4 5 8 12 16 18 20 21 22 24 27 28 30 Focus Financing The column Optimization of operations planning increases the profit from production of electricity Financing and rehabilitation of loss-making district heating companies in Ukraine TVIS Multicity District Heating NIB: Long-term finan DEMAND MAGNA3 MAGNA3 is more than a pump. Its a circulator, a pump throttling valve and a heat energy meter, all in one reducing the need for separate pump throttling valves in the system. Offering over 150 different single and twin circulators for heating, cooling, GSHP systems and domestic hot w P4 The column By Lars Hummelmose, Managing Director, DBDH District Heating and Cooling (DHC) is synonymous with highenergy efficiency and it has the potential to help many countries reach their emission targets and other countries to ease their high concentration of pollution and thereby give bet P5 Optimization of operations planning increases the profit from production of electricity By Martin B. Petersen, Sales Export Manager, ABB To the CHP plant Masnedøværket it is important to produce as much electricity as possible when prices are high. Mentor Planner is an advanced tool which enabl P6 At half past nine in the morning Masnedøværket receives a price forecast from Energi Danmark. This forecast is used by Mentor Planner to calculate the optimal production schedule for the coming 24 hours. Subsequently the plant can schedule its energy production with support from Mentor Planner a P7 Ulrik Cordua working on the planning of the coming 24 hours production schedule Masnedøværket - The CHP plant is owned and operated by Vordingborg Forsyning - The CHP plant is stoked with 100% biomass fuel consisting of 75% straw and 25% wood chips - The CHP plant yearly produces 410,000 GJ hea P8 Financing and rehabilitation of loss-making district heating companies in Ukraine By Bo E. Nyhus, Senior Investment Manager, NEFCO focus Financing An open window for the district heating business To put it very simply: at independence, the countries of the former Soviet Union inherited a dis P9 The task of financing such a business is indeed an uphill struggle, but the potential for CO2 reductions is enormous and likewise worth the effort. The strong local political commitment is what will eventually make it possible despite the odds. NEFCO is loan-financing DH rehabilitation NEFCO is P10 What is the money used for? Neither NEFCO nor E5P is purchasing any DH equipment. Instead, they facilitate co-financing, making the projects possible to implement. Each rehabilitation project is unique, but, in general terms, some very rough conclusions can be drawn from the investment projects P11 NEFCO is an IFI established by the five Nordic Governments in order to generate positive environmental effects of interest to the Nordic region through the financing of projects in Russia, Ukraine and Belarus. Besides financing DH rehabilitation projects in Ukraine, Russia and Belarus, NEFCO is P12 Construction of a new biopower plant in Porvoo, southern Finland. Photo: Porvoon Energia Oy focus Financing NIB: Long-term financing for sustainable heat production By NIB corporate communications Promoting the sustainable and efficient use of energy has always figured among the top priori P13 In the past ten years, the total amount of long-term loans NIB has granted for district heating projects has exceeded EUR 1 billion. Investments in this sector with NIB financing have been implemented in the Nordic and Baltic region as well as other countries. The Banks member countries have be P14 Another waste-to-energy combined heat and power plant has been implemented by Finnish Fortum Oyj in the Lithuanian city of Klaipeda. The power plant uses municipal and industrial waste as well as biomass as fuels to provide district heating to the residents and businesses in Klaipeda and electr P15 The Banks financing is limited to cover a maximum of 50% of the total cost of a project and the Bank therefore seeks complementary financing sources in order to provide full financing of projects. Depending on the nature of the project, the standing of the borrower and the security, loans may, P16 focus Financing Sell with a guarantee By Communications, EKF The financial crisis may be abating. But many Danish companies are finding that their high-quality products and technologically advanced solutions are no longer enough to secure them an order. ratios for sales, profit and equity i P17 Mini-case: Grundfos in Uzbekistan Unusual credit assessment It was not possible to carry out a credit assessment of the Uzbek supply company under normal commercial conditions. This was because, firstly, the company is essentially not a commercial company and, secondly, the companys accounts do P18 SUNMARK turn-key solutions can be a proud landmark in communities while generating energy at a competitive cost, free of CO2 emissions. focus Financing New climate fund to assist Danish companies in emerging markets By Peter Schwalbe, Department Director, IFU IFU Investment Fund for Devel P19 Investments range from DKK 1m - DKK 100m in a single project, and IFUs share of the total investment usually amounts to around 30 percent - however, in small investments IFUs share may be as much as 49 percent. A new climate fund For many years, IFU has also been fund manager of other investmen P20 The solar thermal system is powered by a 300 m2 collector field located right by the ECCO Conference Centre. Intelligent solar heating solution at ECCO Hotel in Denmark By Søren Elisiussen, General Manager of ARCON Solar Advanced and innovative technology enables the hotel of the ECCO Confere P21 COMMENT Regulations for DHC in Europe - and in Norway By Heidi Juhler, Managing Director, Norwegian District Heating Association, Norsk Fjernvarme How to make efficient regulations for district heating with little knowledge about the value of these systems. Three main projects initiated by P22 Heat Roadmap Europe: Saving Money With District Heating Originally published in EuroHeat & Power 3/2013, English edition The European Union can save at least €100 billion by comprehensively addressing heating and cooling in its Energy and Climate Framework 2030. The new study, which comes as t P23 FI European heat atlas Heat demand density (TJ/km 2) 0 0-15 15-50 50-150 150-1500 Non-EU27 SE EE LV LT DK IE UK PL NL BE LU DE CZ AT FR SK HU RO SI BG IT PT ES EL CY MT Figure 2. By geographically dividing the heat demand across Europe on a 1 km2 resolution, it is possible to ide P24 Instead of burying the waste in landfill and hiding it away, ARC has done the exact opposite. In just a few years time, Amager Bakke will be a prominent landmark for Copenhagen. ARC presenting a new identity By Sune Scheibye, Communication and press consultant Amagerforbrænding has become AR P25 And this is why the outside broadcasting truck along with scores of other national and international media will be descending on the waste incineration plant, now known as ARC. Because it is not every day that a 43-year-old company changes its name and builds new premises to the tune of 4 billi member new m ew n r be em m ew n r be em m ember new wm P26 r new member n be em m ew n r be em m ew n r membe nAndew new m r that be the Government's resource strategy.m Thisem facility will ensure the political focus on waste as a resource is welcomed at ew n r be em m ew n r be em mHelena Nielsen member ne new member new r be em m ew n r be em m ew n new member mP27em ew n r be em m ew n r be em m member new member new member new m ew n r be em m ew n r be em m ew member new New members of DBDH NEW MEMBER OF DBDH: OE3i The company OE3i specialises in the development of software solutions f P28 Member company profile: Ross Engineering A/S The search for cheap, reliable, and clean energy is still going strong. With local and national CO2 reduction goals, and a constant rising energy demand, investors and energy producers are constantly on the hunt for new energy sources. One of these P29 assessment report and a whitepaper on how to plan geothermal projects in a Danish context. The final goal is to spread the risk among several stakeholders. Basically, the idea is to spread the risk on several wells, for example by drilling 10 wells at the same time. A number of Danish district P30 list of members Aalborg Engineering Phone +45 9631 3950 Supplier of boilers and boiler systems Fax +45 9631 3951 ae@aalborg-engineering.dk www.aalborg-engineering.com Danfoss ABB Phone +45 4450 4450 Monitoring and control for Fax +45 4450 4311 district heating networks abb@dk.abb.com P31 Høje Taastrup Fjernvarme Phone +45 4355 3010 htf@htf.dk www.htf.dk Saseco isoplus Denmark Phone +45 6441 6109 Preinsulated piping systems Fax +45 6441 6159 for district heating and cooling iso@isoplus.dk www.isoplus.dk Schneider Electric Kamstrup Phone +45 8993 1000 Supplier of en Mediegruppen 1778 Your savings add up Comparison of CO2 emissions KTon 3.0 CO2 2.5 20% 0.51 2.0 1.5 1.0 25 52% 1.06 80% 2.00 Pipe pair Steel, trad. DN: 65 Serie 2 Pipe pair w. diff. Steel, conti DN: 65 Series 2 58% 1.44 TwinPipe Steel, trad. DN: 65 Series 2 Heat loss 10 48% 1.20 Twin