Slajd 1 - lsta.lt
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Transcript Slajd 1 - lsta.lt
Witold Cherubin
Adviser to the President
of the Energy Regulatory Office
HEAT SUPPLY AND COGENERATION IN CEE
COUNTRIES – PRESENT STATUS AND
PERSPECTIVE OF DEVELOPMENT
Present situation in DH sector
Pricing regulation and taxation
Energy and environmental policy and perspective of
DH sector development
Witold Cherubin
PRESENT SITUATION IN DH SECTOR
Country
DHeat supply [GWh]
DH share [%]
Bulgaria
Czech Rep.
Estonia
Hungary
8 777
40 562
10 200
16 024
18
44
40
16
Latvia
Lithuania
Poland
9 180
10 572
105 000
70
50
54
Romania
Slovakia
23 010
7 870
24
40
Witold Cherubin
PRESENT SITUATION IN DH SECTOR
DH networks heat carrier distribution system
heat production different technologies and fuels
Different structure of primary energy in CEE countries
coal major fuel for DH systems about 50 %
natural gas intensively used approx. 35 %
dependency on single gas supplier security of supply
oil share about 9 %
renewables increasing share (from 1.5 to 5 %)
wastes & industrial surplus heat about 1 %
Witold Cherubin
PRESENT SITUATION IN DH SECTOR
Heat demands reduction during last 10 – 15 years
different reasons DSM & industrial production
Energy policies and regulations in several countries
Increasing number of connected customers
Heat production stabilisation (except BG and RO)
DH systems modernisation
reduction of heat losses (still in range 10 - 20 %)
beginning of District Cooling implementation
general improvement of DH systems effectiveness
Witold Cherubin
PRESENT SITUATION IN DH SECTOR
CHP production in some countries 1 – 2 % increase
Energy policy support schemes (micro & small CHP)
New CHP plants & existing plants modernisation
HOB plants replacement by CHP units
Hungary highest increase of CHP production
favouring small size CHP over a long period
weighted average CHP share in CEE countries = 55 %
from 35 % in Baltic States to 72 % in Hungary
Witold Cherubin
PRESENT SITUATION IN DH SECTOR
Different organisational and legal forms of DH Comp.
State owned enterprises not transformed
Municipal budgetary units
Ltd. Companies owned by municipality
Joint stock companies owned by municipality
Private companies different type
Various forms of Public – Private Partnership
Witold Cherubin
PRESENT SITUATION IN DH SECTOR
Country
Organisation
Ownership
Bulgaria
Czech Republic
Estonia
Hungary
Centralised
Decentralised
Decentralised
Decentralised
Differentiated
Differentiated
Differentiated
Differentiated
Latvia
Lithuania
Poland
Decentralised
Decentralised
Decentralised
Differentiated
Differentiated
Differentiated
Romania
Slovakia
Decentralised
Decentralised
Differentiated
Differentiated
Witold Cherubin
PRESENT SITUATION IN DH SECTOR
Movement to a vertical integration production & distribution
DHC operating one DH system in a single city decentralised
Some DHC operate DH system in different cities centralised
Horizontal integration with other energy services
CHP and DH companies privatisation
Sale of DH shares or DH system as a whole
Leasing of DH plants and/or networks
Witold Cherubin
PRESENT SITUATION IN DH SECTOR
Ownership/Organisation changes start of DHC restructuring
Economic transformation related technical activities
energy use effectiveness
decrease of environment pollution
increase of quality and reliability of heat supply
improvement of customer’s services
Existence of DH schemes opportunities for :
CHP production development
integrated supply plans incineration plants, waste heat use etc.
DH systems modernisation & buildings thermo-modernisation
heat losses reduction heat production/demand decrease
Witold Cherubin
PRESENT SITUATION IN DH SECTOR
Similar trends in DH sector restructuring
improvement of DH schemes efficiency and profitability
change of fuels structure growth of gas and renewable share
CHP development small plants especially
investments on supplies and demand (DSM) sides
Different financial sources
own national funds
loans from national and foreign banks
private investors direct foreign investments
Different financial mechanisms
preferential taxes
CHP encouragement
financing by third party
Witold Cherubin
PRESENT SITUATION IN DH SECTOR
Country
Bulgaria
Czech Rep.
Estonia
Hungary
Investment Funds/Type of investments
WB and EBRD loans mainly DH networks
Mainly own funds & EU funds & commercial banks
Own funds & EU funds mainly RES
Own funds & EU funds mainly CHP
Latvia
Lithuania
Poland
Own funds (public & municipal) & EU funds
Own funds & EU funds & WB, EBRD loans
Own funds & EU funds & WB, EBRD loans and other
Romania
Slovakia
Own funds & EU funds & WB, EBRD, EIB loans
Self - financing
Witold Cherubin
PRICING REGULATION AND TAXATION
Pricing crucial parameter of economic transformation
Extremely low heat prices in the past
DH sector subsidising in CEE countries
consumer payments small lump sum (per m2 , per person)
Recently DH prices moved to cost reflection
two component tariff structure started to become standard
measurement implementation great effort in some countries
individual heat costs allocation & room temperature control
Lack of measurements in some countries lump sum use
Witold Cherubin
PRICING REGULATION AND TAXATION
No
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Country
Bulgaria
Czech Republic
Estonia
Hungary
Latvia
Lithuania
Poland
Romania
Slovakia
Austria
Denmark
Finland
Germany
Netherlands
Norway
Sweden
Heat price (exc.. VAT) [€/MWh]
22 (average)
from 25 to 75
30 (average)
from 25 to 50
from 18 to 33
32.75 (average)
36 (average)
19 (average)
47.40 (average)
53.84 (average)
from 40 to 50
42.20 (average)
54.86 (average)
53.45 (average)
51 (average)
48 (average)
Witold Cherubin
PRICING REGULATION AND TAXATION
DSM & reduction of industrial activity in CEE countries
heat demand decrease systematic rise of heat prices
DH sector subsidising in CEE countries
Low real income of the population ability to pay heat bills
heat costs 60 % accommodation related payments
Disconnecting problem industrial and residential consumers
in some countries (H) industrial customers only
serious situation in RO 21 % households disconnected
small DH units closed down in many towns
40 DH companies collapsed during last 2 years
recently program for DH sector rehabilitation
Witold Cherubin
PRICING REGULATION AND TAXATION
Heat tariffs set or approved by regulatory bodies
national level (BG, CZ, EST, LT, PL and RO)
municipal level (H, LV, SK) not guaranteed independence
national regulator more effective option
Regulation supplier and customer interest balancing
covering reasonable (justified) costs of heat supply
consumers protection against supplier’s market power
cross – subsidies elimination
Mainly „cost plus” regulation
incentive regulation in some countries (CZ, EST, LT)
trend toward „price cap” regulation (CZ, EST)
Witold Cherubin
PRICING REGULATION AND TAXATION
Alternative energy sources heat supply availability
pricing policy adjusted to market conditions (competitive heat prices)
main competitors individual gas heating; rarely oil & electricity
Lack of real competition in heat supply
artificially low gas and electricity prices for some customers
tariff structure favors small consumers social & political reasons
cross subsidies between different categories of customers
direct competition between NG and DH networks (CZ, EST, H, LV, LT, RO, SK)
buildings connected to NG & DH networks disconnection problems in DH sector
Municipal (local) energy planning
in some countries optimisation of energy supply Local Energy Planning (EST)
Local Energy Plan “zoning” of the city area between NG and DH networks
compulsory connection to the DH or NG networks in defined city area
Witold Cherubin
PRICING REGULATION AND TAXATION
Specific problem common for CHP production e.g. Hungary
electricity market liberalization influence on heat prices level
electricity market liberalized in 2004 open for all consumers except dwelling
CHP plants often not belong to the DH Company
CHP owners interested in competitive (low) electricity price
large CHP plants sell electricity at low prices and heat at high prices
Favourable legislation for CHP plants < 50 MW
obligatory purchase and guaranteed electricity price
significant reduction of heat prices
Witold Cherubin
PRICING REGULATION AND TAXATION
Country
VAT level [%]
Czech Rep. DH 5; others 22
Estonia
DH 5; others 19
Hungary
DH and NG 15
Electricity 25
Latvia
Under discussion
Lithuania
DH households 5
DH others 18
Poland
All products 22
Slovakia
All products 19
Fuel taxes
Fuel taxes for heating from 2007
Shale oil use in DH exemption until 2013
Energy and environmental taxes from 2004
reclaimed for CHP and DH; Till 2010 transition
period for coal, electricity, NG & DH
Heavy oil use in DH excise tax
Transition period till 2010
Coal, coke, lignite, NG exemption till 2010
Oil and LPG use in DH excise tax
Transition period 2010 coal; 2014 NG
Electricity & NG transition period till 2010
Witold Cherubin
ENERGY & ENVIRONMENTAL POLICY and
DH SECTOR DEVELOPMENT PERSPECTIVE
National energy policy and legislative framework
direct or indirect influence on CHP/DH sector
driven mainly by EU Directives
EU legislation different national implementation
more or less positive results in CHP/DH development
EU energy & environmental policy EU Directives
new EU legislative initiatives
Witold Cherubin
ENERGY & ENVIRONMENTAL POLICY and
DH SECTOR DEVELOPMENT PERSPECTIVE
Directive 2003/53/EC electricity internal market
Directive 2003/55/EC gas internal market
Directive 2001/77/EC promotion of electricity produced in RES
Directive 2002/91/EC energy performance of buildings
Directive 2003/87/EC greenhouse gas emission trading scheme
Directive 2004/8/EC promotion of cogeneration useful heat
Draft Directive on energy end-use efficiency & energy services
Witold Cherubin
ENERGY & ENVIRONMENTAL POLICY and
DH SECTOR DEVELOPMENT PERSPECTIVE
Legislative framework
Country
Energy
Electricity
Bulgaria
Czech Rep.
Estonia
Hungary
Latvia
Lithuania
Poland
Romania
Slovakia
YES
YES
no
no
YES
YES
YES
no
YES
no
no
YES
YES
YES
YES
no
YES
no
Natural
Gas
no
no
YES
YES
no
YES
no
YES
no
DH/heat
supply
no
no
YES
YES
no
YES
no
draft
no
CHP
no
no
no
no
no
no
no
no
no
Energy
Efficiency
YES
YES
no
YES
no
no
no
YES
not yet
Witold Cherubin
ENERGY & ENVIRONMENTAL POLICY and
DH SECTOR DEVELOPMENT PERSPECTIVE
Energy policy sustainable development & security of supply
Different legislative framework for energy sector
several countries single Energy Law covers all different sectors
some countries sectoral Laws for different energy sectors
EU policy concerning CHP/DH sector CEEC implementation
before Directive 2004/8/EC CHP development schemes
after Directive 2003/87/EC National Allocation Plans till 2007
competition with individual heaters CHP/DH “penalized”
individual installations not covered by Directive
CHP/DH development allowances purchase costs increase
Witold Cherubin
ENERGY & ENVIRONMENTAL POLICY and
DH SECTOR DEVELOPMENT PERSPECTIVE
CHP support mechanisms
Purchasing Tariff
obligation support
Bulgaria
YES
YES
Czech. Rep.
YES
YES
Estonia
YES
Hungary
YES
YES
Latvia
YES
YES
Lithuania
Poland
YES
Romania
Slovakia
YES
Country
Capital
incentives
YES
Comments
Preferential price for units < 50 MW
Bonus for decentralised system
Guaranted price for 7 years
Guaranted price for units < 50 MW
Preferential price for units < 4 MW & local fuel
Not really 1/3 investments for CHP
Electricity obligatory purchase from RES & CHP
Not really least costs analysis
Electricity obligatory purchase from RES & CHP
Witold Cherubin
ENERGY & ENVIRONMENTAL POLICY and
DH SECTOR DEVELOPMENT PERSPECTIVE
Limited possibilities to build up new DH systems
Existing DH systems modernization costs optimization
improvement of energy efficiency on supply side lower costs
production fuel use decrease & fuels basket optimization
transmission & distribution heat & water losses decrease
improvement of energy efficiency on demand side lower heat use
improvement of heat supply control in substations and buildings
heat supply measurements buildings cost allocation flats
maximizing of existing capacity use customers connecting
local HOB plants liquidation different fuels
new buildings different customers commercial; residential
Witold Cherubin
ENERGY & ENVIRONMENTAL POLICY and
DH SECTOR DEVELOPMENT PERSPECTIVE
Custome’s payments according to heat use (measurements)
operational costs optimization fuel costs 50 - 70 %
maintenance costs reduction
Subsidies elimination cross and direct - subsidizing
institutional support for poor households removed from DHC
Gradual heat prices increase heat supply costs covering
Pricing evolution two-part tariffs & new elements in future
environmental or fuel element
rational CHP electricity purchase procedures
EU environmental policy CHP/DH sector “penalized”
competitive individual heaters not covered by Directive
DH development allowances purchase supply costs increase