Needs-Challenges-Barriers-Opportunities

Needs/challenges, barriers, opportunities

Country

Czech Republic

Urgent Needs/Challenges

Some problems have been already described in the legislative and other measures assessments, in this report. To sum up, there are needs as follows: to ensure fuels for DH (break the coal mines limits; to suggest a support for biomass producers in agriculture; to reconsider the tax system; to enable the gain energy savings (funds from emissions credits) for use in DH sector; to solve land ownership rights in ratio to the permits for heat distribution networks constructions; to establish Territorial Development Plans and Cities conceptions; to establish better informedness of Build offices and their assessment of DH projects; to remove the distortions on the heat market among the CO2 emissions trading system covered heat sources and non-trading les centralised (under 20 MW) ones;

Main Driving Forces

As the main driving forces we consider the high level of professionality in DH companies and their interests to keep the efficient operation and management of existing DH systems by the gradual refurbishment. Also new development is possible and new consumers are connected.

DH is well established – there are large networks and for the cities (especially over 50 thous. Inhabitants) the DH systems make great benefits. On this base the modern approach towards the smart infrastructures of urban areas and the development to the sustainable energy future will continue with the increasing efficiency and RES integration.

Main Barriers

There are different market conditions of DH based on coal and other fuels (mostly NG). These differences are often questioned by politicians and public and there is necessary to establish very good communication with the consumers – especially flats owners associations. DH is a regulated sector – it means DH prices are calculated with regard to given regulation principles. Problems cause not-regulated inputs – especially fuel prices. These could be fully calculated into the DH price but they threaten DH competitiveness (red columns illustrate DH prices in individual districts, yellow marks show the share of coal in heat supply there - the lower position of the yellow mark – the higher share of NG and higher heat price).

Eco-tax on fossil fuels has been imposed since 1.1.2008. Households with individual coal heating should face to the heaviest burden but an effect has not yet taken place due to large pre-stocks made by households. Natural gas for households, house boiler rooms (under 50 kW), all CHP heat is removed from the eco-tax. Heat from HOBs based on coal and NG is charged regarding the efficiency of heat production. To sum up 90 % centralised heat production on coal (e.g.DH on CHP) is not covered by the eco-tax and 90 % of DH based on NG (mostly HOBs) is charged by eco-tax.

VAT has been increased from 5 up 9 %, it resulted in DH price increase in 2008 in an average about 10 %. Since Jan. 1^st, 2010 the reduced VAP is 10 % (normal level 20 %).

Main Opportunities

An expert study recommends for the CR „energy mix further development“:

Potential lack of fuels is more crucial for heat than electricity sector.

The necessary heat demand and its development need to be covered with increasing efficiency on the supply and also savings on final consumption side.

Heat could not be imported, it is necessary to be produced on site or closed to place of consumption. The way to a success would not be based on ownership of networks but on reliable fuel resources.

Power plants and CHP plants produce 80 % heat in CHP technologies. CHP production in CR means 59 % of DH demand and 27 % heat demand of the CR. Installed efficient technologies resulted in better ecology operation of the plants.

DH has and offers possibilities for RES (especially biomass) utilisation and even more effective with CHP technology.

Market possibilities - RES potential for CHP

There is seriously considered biomass potential with aspects of biomass potential in a cost efficient distance of DH supplied areas, transport costs, competition on the biomass market. From the studies preliminary results that CR needs to consider growing energy plants as the most available potential in biomass (fytomass) to be able to meet RES targets. This is necessary to be recognised by the Ministry of Agriculture (MA) and in the National Action Plan on Biomass. There should be integrated approach among the MEnvir, MIT and MA to enable the use of the potential.

DH systems are gradually renovated. The DH sources – especially CHP plants reached high efficiency parameters and the strict environmental limits as well, they involve in an increasing share RES – especially wooden biomass. They will seek for the cooperation in agriculture (straw and energy plants delivery).

There is in many cases replacement of older steam pipelines under processing. At the same time the 4-pipelines and central heat exchanger stations concept is replaced by 2-pipelines with house stations. The distribution network needs more support – it is under discussion to enable the use of funds gained from the emissions credits purchase and other funds in CR and EU.

Solar thermal energy helps at present at some projects to decrease energy consumption especially for hot tap water preparation. New projects with solar energy are still very expensive for wider and large scale use (we are the project partner of Solar District Heating take off project).

Heat pumps are in CR offered by their producers especially for the new family houses. In DH heat pumps are used in geothermal projects.

Waste to energy - there are 3 incinerations plants with DH delivery. SAKO Brno has most successful heat delivery to DH network in comparison to Liberec and Prague incineration plants. In Brno 220 thousand t/a municipality wastes will be after the present reconstruction used for CHP production. A new 20 MWe condensing turbine would enable an optimal operation also during the summer months with low heat demand.

Geothermal energy is used in DH system in Decin (280 TJ/a – of which 1/3 from geothermal energy), other projects are under preparation (Litomerice).