Latest Developments in Kyiv DHS

Ielyzaveta (Lisa) Zhuravska, Trade Commissioner (Ukraine)
23-September-2021

EBRD helps upgrade Kyiv district heating system

  • €140 million EBRD loan to modernise district heating and hot water supply in Ukraine’s capital
  • Kyiv committed to developing Green City Action Plan targeting decarbonisation
  • EBRD financing backed by grants from Sweden and USAID

The residents of Kyiv will benefit from upgraded and more reliable provision of district heating and hot water supply thanks to a €140 million loan from the European Bank for Reconstruction and Development (EBRD) to Kyivteploenergo, the heating and hot water utility serving the Ukrainian capital. The loan will finance the modernisation of existing combined heat and power plants and selected boiler houses as well as the installation of a new dispatching and monitoring system.

The EBRD funding will be co-financed by a joint contribution from Kyiv municipality and Kyivteploenergo of at least €26 million to finance the district heating network replacement. This new equipment will be fully compliant with the EU Industrial Emissions Directive.

The improvements will enhance energy and resource efficiency as well as the quality and reliability of heating and hot water supply to residential and non-residential customers. The investments will result in annual savings of more than 193,000 tonnes of CO2 equivalent and 25,000 cubic metres of water yearly.

The project will be part of Kyiv’s Green City Action Plan (GCAP). The municipality is currently developing a comprehensive investment programme promoting decarbonisation and sustainability.

The plan is part of Kyiv’s commitment to improving the urban environment and people’s lives under the EBRD Green Cities initiative, a sustainable urban development programme that Kyiv joined in 2019.

The development of the GCAP and of a feasibility study for the modernisation of the district heating system are supported by the government of Sweden with a €700,000 grant.

In addition, the United States Agency for International Development (USAID) funded three financial audits of Kyivteploenergo in line with the International Financial Reporting Standards and the development of design documents necessary for the project. It also helped the utility to implement international accounting standards, automate financial reporting, establish an anti-corruption programme and conduct gender equality training.

USAID will continue working with Kyivteploenergo to develop a plan for decarbonisation by 2060, enhance internal audit and compliance functions, optimise operational performance and improve the internal code of conduct to promote social inclusion and gender equality.

Ukraine is a top-three investment destination for the EBRD. In the past two years alone, the Bank has committed €2 billion to the economy. The EBRD finances infrastructure, energy efficiency and energy security, and agricultural and industrial projects, as well as smaller businesses in the country. It combines the investments with support for policies that promote a more enabling business environment. Greening the economies where it invests is among the EBRD’s top priorities.

Construction of Rail Baltica station related infrastructure at Riga Airport to cost 237 million EURO

Irena Cirule, Trade Commissioner (Latvia)
14-September-2021

Construction of the Rail Baltica station and related infrastructure at Riga International Airport will cost 236.961 million EURO, excluding value added tax (VAT), LETA was told at Eiropas Dzelzcela Linijas (EDzL), the state-run company implementing the Rail Baltica project in Latvia.

EDzL representatives told LETA that an agreement has been concluded with B.S.L. Infra, an association comprised of Austrian company Swietelsky AG and Latvian construction companies Binders and LNK Industries, on the construction of the Rail Baltica station and related infrastructure. Construction works at the airport will be carried out in five stages until December 2025, with active construction works scheduled to begin in May this year.

The first stage of the project – construction of the Rail Baltic railway infrastructure from the station Imanta to Riga International Airport and the station’s terminal, is scheduled for completion in March/April 2023. The first stage will include the construction of a three-level station building, an overpass and access roads with related infrastructure.

Source: https://www.leta.lv/

Steep rise in heating prices

Irena Cirule, Trade Commissioner (Latvia)
14-September-2021

Rigas Siltums heating company has estimated that those residents of Riga who so far paid about 50 EURO a month for heating now will have to pay 64 EURO. The company said that these are approximate estimates which will depend on the winter. Rigas Siltums explains the rise in heating tariffs with the price hike of the natural gas imported from Russia that started already in January. (Latvijas Avize)

Source: https://www.leta.lv/

Latvijas Gaze concern posts 56% rise in H1 sales

Irena Cirule, Trade Commissioner (Latvia)
14-September-2021

Latvijas Gaze concern in the first six months of this year generated 154.255 million EURO in turnover, up 56 percent from the respective period last year, while the company’s profit shrank three times to 5.445 million EURO, according to the company’s unaudited financial report.

Latvijas Gaze reported that colder temperature during heating season and significantly higher natural gas prices were the two main factors, which influenced the company’s performance in first half of 2021. Colder temperature increased the company’s sales and utilization of Gaso distribution network. At the same time price rally in natural gas environment, on the back of economic recovery, posed a challenge during first half of 2021 and will continue to pose a challenge for the remaining part of the year.

Source: https://www.leta.lv/

New Estonian-Latvian interconnection a significant step in improving security of power supply

Irena Cirule, Trade Commissioner (Latvia)
14-September-2021

The new Estonian-Latvian third interconnection is a significant step in improving security of power supply, said Augstsprieguma Tikls (AST) transmission system operator’s board chairwoman, Gunta Jekabsone, at the inauguration ceremony. Jekabsone stated that that the new interconnection will not only bring new power to consumers, but also new power generators to the network – “I really believe that the successful operation of this interconnection and continued common work of AST and Elering experts to provide it will be a sufficient basis for new renewable energy power plants in Latvia and Estonia. With this, we will be able to achieve the European green energy goals”.

Source: https://www.leta.lv/

Prague’s new climate plan focuses on reducing emissions by 45%

Martina Taxova, Trade Commissioner (Czech Republic)
07-June-2021

The City of Prague approved the City’s draft Climate Plan until 2030. The ambitious document is to become the flagship of the effort for a carbon-neutral city in 2050. Its implementation over the next ten years envisions a reduction in the volume of carbon dioxide emissions by 45% compared to 2010. This is to be achieved through the implementation of 69 specific measures, which are divided into four sections in the plan – Sustainable Energy and Buildings, Sustainable Mobility, Circular Economics and Adaptation Measures.

Source

Cost to end coal in the billions

Martina Taxova, Trade Commissioner (Czech Republic)
07-June-21

A joint study conducted by the Czech Technical University in Prague and the Association for District Heating of the Czech Republic, indicated that by the end of 2030, Czech heating plants will have to invest approximately 100 billion CZK (5.8 billion CAD) to switch from coal to gas. 

So far, tens of billions have been set aside in the funds being prepared for the transformation of the heating industry.  However, the final amount of public support has not yet been clearly determined. At today’s emission allowance prices, about 52 billion would come from the Modernization Fund and 1.7 billion from the National Recovery Fund. Heating plants with an output of more than one megawatt could also use operational support.

Companies are pushed to the use of more expensive low-carbon fuels by the rising price of emission allowances. Heating plants must purchase them as soon as each tonne of carbon dioxide is emitted from their operation. Since March 2021, the price of allowances has been above 40 EUR per tonne while in April 2020 they cost half.

Source

Funding large heating supply projects in Czech Republic

Martina Taxova, Trade Commissioner (Czech Republic)
18-May-2021

The State Fund for Environment has recently published HEAT Call No. 2 intended for large projects allocating CAD 294 million. The second subsidy call from the HEAT program is intended for heating plants (owners of heat supply systems) for the reconstruction or replacement of a heat source in heat supply systems. This call will support large projects with a support of over € 15 million. Priority will be given to reconstruction or replacement of a heat source in heat supply systems with a change of the fuel base or type of energy to: renewable energy sources in combination with high-efficiency cogeneration; energy recovery of waste (municipal waste, industrial waste, solid alternative fuel from municipal waste and from other category waste, sewage sludge) in combination with high-efficiency combined heat and power generation; electricity from renewable energy sources such as electric boilers; and waste heat energy in combination with high-efficiency cogeneration.


aerial view of concrete bridge and buildings surrounded by trees
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Energy storing batteries would help ensure reliable operation of Baltic power systems – Augstsprieguma Tikls

Irena Cirule, Trade Commissioner (Latvia)
12-May-2021

Energy storing batteries would help the Baltic States to ensure a smooth and reliable operation of their power systems, representatives of Augstsprieguma Tikls transmission system operator (TSO) told LETA, citing a feasibility study conducted by Japanese energy company Tepco Power Grid Inc.

The study shows that in order in increase renewable energy production, a number of technical measures are needed to ensure the stability of the power system and the security of energy supply, and using the Battery Energy Storage System (BESS) has been suggested as one of such measures. 

According to Augstsprieguma Tikls representatives, the feasibility study shows that the development of the BESS is the best way for Lithuania, Latvia and Estonia to ensure smooth and reliable operation of their power systems when up to 100 percent electricity is generated from renewable energy sources. Specifically, 240 megawatt (MW) capacity of the grid forming type battery systems will countermeasure the lack of inertia associated with wind and solar generation. 

Latvenergo power utility implements placement of seven-year green bonds worth EUR 50 million

Irena Cirule, Trade Commissioner (Latvia)
12-May-2021

On May 7, Latvia’s power utility Latvenergo implemented placement of seven-year green bonds in the total nominal value of EUR 50 million with a fixed annual interest rate of 0.5 percent and a yield to maturity 0.543 percent, LETA learned from the company. The total amount of the submitted purchase orders reached EUR 229.8 million.

The purchase orders were received from 24 investors, including asset management funds, insurance companies and banks in Latvia, Lithuania, Estonia, Finland and Sweden, and international financial institutions – European Bank for Reconstruction and Development and Nordic Investment Bank. “This is already the second bond program for the issuance of notes under which we are issuing green bonds, and our aim is to invest in environmentally friendly projects. The high level of investor interest in green bonds confirms Latvenergo’s strategy to further increase the use of renewable energy sources, which means more hydro, solar, and wind power. It also acknowledges society’s wish to live in a sustainable environment,” said Guntars Balcuns, Chairman of the Management Board of Latvenergo.