Приватизация тепловых активовПриватизация тепловых активов в Литвев Литве

Vytautas StasiūnasVytautas Stasiūnas

President of Lithuanian District Heating Association

2 Марта 2006, Москва Научно-практической конференции «Система взаимоотношений в теплоснабжении.

Требования существующего и нового законодательства

Main factors retaining DH undestroyed in Lithuania

• Big investments during 1960-1990• Cold climate conditions, where heating season lasts for 6 -7

months/year• Big demand for heat energy for hot water preparation all-year-

round• The effective and well-timed support from West European

countries (particularly from Scandinavia)

Population: 3,6 mill.Area: 65 300 km2

Lithuania Moscow, Russia

DH market share in Europe

1% 3% 3%6%

8%12%12% 12%

15%18%

29%30%

40%42%45%46%

55%58%

0%

10%

20%

30%

40%

50%

60%U

K

Italy

Sw

itzer

land

Nor

way

Cro

atia

Ger

man

y

Icel

end

Hun

gary

Bul

garia

Aus

tria

Rom

ania

Est

onia

Slo

vaki

a

Cze

ch

Sw

eden

Lith

uani

a

Den

mar

k

Finl

and

Law on the Reorganization of the Special Purpose Company “Lietuvos Energija” and Transfer of the District Heating and

its Management to Municipalities (1997 year)

- 6 regional and 13 municipal DH companies were established

- The State subsidies not received were transfered as a debt to DH utilities. The long term-liability amounting to almost 400 mio LTL was formed;

- The heat price have grown by 10-30%;- Municipal companies were regulated by the municipalities

(including price fixing) and regional companies by National Control Commission for Prices and Energy.

Until 1997, DH sector belonged to the uniform system of Lietuvos energija AB. The heat price was uniform in all country 89.4 LTL/MWh.

1997 – the first stage of decentralization

- From 1998-2001 regional DH companies (Klaipėda, Šiauliai, Alytus, Vilnius, Kaunas) were divided into smaller new DH utilities in cities and districts (about 40 municipal companies).

- This stage was critical. The majority of DH companies operated unprofitably;

- Increase in heat prices caused a discontent to heat consumers, many of them rushed to disconnect from DH and to install their own heat boilers;

- During 1996-2000 heat generation reduced by 33 %- This stage is not fully completed. Up until now one regional

DH utility (Panevežys) remained.

The years 2001-2005 may be specified as the period of stabilization on the DH market.

1998 – the second stage of decentralization

DH companies – members of LDHADH companies – members of LDHA

1. UAB “Vilniaus energija”2. AB “Kauno energija” 3. UAB “Litesko” filialai:

• “Alytaus energija” • “Kelmės šiluma”• “Marijampolės šiluma”• “Palangos šiluma”• “Telšių šiluma”• “Vilkaviškio šiluma”• “Druskininkų šiluma”• “Biržų šiluma”

4. AB “Panevėžio energija” • “Kėdainių šilumos tinklai”• “Rokiškio šilumos tinklai”• “Kupiškio šilumos tinklai”• “Pasvalio šilumos tinklai”• “Zarasų šilumo tinklai”

5. AB “Klaipėdos energija”6. AB “Šiaulių energija”7. UAB “Eenergija” filialai:

• UAB “Prienų energija”• UAB “Ukmergės energija”• UAB “Akmenės energija”

8. AB “Jonavos šilumos tinklai”9. UAB “Mažeikių šilumos tinklai”10. UAB “Utenos šilumos tinklai”

11. UAB “Tauragės šilumos tinklai”12. UAB “Šilutės šilumos tinklai”13. UAB “Radviliškio šiluma”14. UAB “Anykščių šiluma”15. UAB “Raseinių šilumos tinklai”16. UAB “Kaišiadorių šiluma”17. UAB “Švenčionių energija”18. UAB “Ignalinos šilumos tinklai”19. UAB “Plungės šilumos tinklai”20. UAB “Pakruojo šiluma”21. UAB “Šakių šilumos tinklai”22. UAB “Lazdijų šiluma”23. UAB “Birštono šiluma”24. UAB “Širvintų šiluma”25. UAB “Molėtų šiluma”26. UAB “Šilalės šilumos tinklai”27. UAB “Vilniaus rajono šilumos tinklai”28. UAB “Fortum Heat Lietuva”

Other DH companies – potential to be the members of LDHA

• UAB “Trakų šilumos tinklai”• UAB “Skuodo šiluma”• UAB “Elektrėnų komunalinis ūkis”• UAB “Joniškio energija”• UAB “Kretingos šilumos tinklai”• UAB “Neringos energija”• UAB “Šalčininkų šiluma”• UAB “Rietavo komunalinis ūkis”• UAB “Gelvita”• VĮ “Visagino energija”

LDHA DH member-

companies; 10197,6 GWh;

99%

Other DH comp 102,4 GWh; 1%

Growth of LDHA member-companies in DH market 2001-2004 Growth of LDHA member-companies in DH market 2001-2004

2001 2001 2003 2004

Total heat delivered to the network (GWh) 10700 10630 10440 10300

Including LDHA members (GWh) 9720 10242 10262 10198

% 90,8 96,3 98,3 99,0

2005

DH Ownership structure, 2005DH Ownership structure, 2005

Private Public

Partnership (PPP)45%

Municipa-lities;55%

The lease of heat utilities to foreign and domestic investors started in 2000. Private capital has entered in the DH sector offering high investments for modernization and stable prices

(9.5% with JV)

(ownership 100% in municipality)

Leased companiesLeased companies

-UAB “Vilniaus energija”

-UAB “LITESKO”: “Alytaus energija” “Kelmės šiluma” “Marijampolės šiluma” “Palangos šiluma”“Telšių šiluma” “Vilkaviškio šiluma” “Druskininkų šiluma” “Biržų šiluma”

- UAB “Joniškio energija (51% share owners)

- UAB “Švenčionių energija” (51% share owners)

DALKIA group (France):

UAB “E energija” (local investors):

UAB “Fortum Heat” (Finland):

- UAB “Prienų energija”- UAB “Ukmergės energija”- UAB “Akmenės energija”

Heat Law (adopted 20 May, 2003) • New heat law forbids municipalities to sell DHN of more than 5 GWh/year to privatize them

• It defines rules for private operations through lease agreements

• obligation for the operator to invest in such amount that book value of lease assets at the end of lease are not less than original value

• taxation and control and supervision by regulator and state institutions are identical what ever scheme (leased or municipal operations)

• private or municipal operators must follow public procurement rules

Public Private PartnershipPublic Private Partnership

How that works?

Control of DH companies Control of DH companies

National Control Commission for Prices and Energy: heat pricing policy, price fixing, issuance of licenses to all DH companies and controlling their activities, coordination of investment projects, provision of recommendations on heat quantity allocation among residential customers, consumer rights protection, and investigation of complaints.

State Energy Inspectorate: exercise control over the technical safety and operation of energy equipment, also the security of production, transmission, distribution, and supply of energy and energy resources as well as efficiency

All procurement procedures are performed in compliance with the Law on Public Procurement

LDHA is a member of Euroheat&Power (International Association for District Heating, District Cooling and Combined Heat&Power)

• From July, 2001 LDHA was associated member of Euroheat&Power.• From March, 2003 LDHA became a full-right member.

• Iceland

• Sweden

• Norway

• Denmark

• Great Britain

• Holand

• Czech

• Estonia

• Latvia

• Lithuania

• Poland

• Slovakia

• Hungary

• Romania

• Germany

• France

• Switzerland

• Italy

• Finland

• Austria

Euroheat&Power (Brussels) unites 20 European heat suppliers associations:

Heat Prices inHeat Prices in Centr Central and East European Countriesal and East European Countries, 2004 , 2004

Country Heat Price (excluding VAT)

1 Bulgaria 75,9 Lt/MWh (at lead-in)

2 Czech 86,3-258,9 Lt/MWh (at lead-in)

3 Estonia 103,6 Lt/MWh (at lead-in)

4 Hungary 86,3 - 172,64 Lt/MWh (at lead-in)

5 Latvia 62,2 - 113,9 Lt/MWh (at lead-in)

6 Lithuania 113,5 Lt/MWh (at flat)

7 Poland 124,3 Lt/MWh (at lead-in)

8 Romania 65,6 Lt/MWh (at lead-in)

9 Slovakia < 163,7 Lt/MWh (at lead-in)

10 Austria 185,9 Lt/MWh (at lead-in)

11 Denmark 138,5 – 172,6 Lt/MWh (at lead-in)

12 Finland 145,7 Lt/MWh (at lead-in)

13 Germany 189,4 Lt/MWh (at lead-in)

14 Holand 184,6Lt/MWh (at lead-in)

15 Norway 176,1 Lt/MWh (at lead-in)

16 Sweden 165,7 Lt/MWh (at lead-in)

Legal Acts in Legal Acts in CentrCentral and East European Countriesal and East European Countries

Country Energy Law Electricity Law

Natural Gas Law

Heat Law Energy Efficiency Law

1 Bulgaria Yes No No No Yes

2 Czech Yes No No No Yes

3 Estonia No Yes Yes Yes No

4 Hungary No Yes Yes Naujas CŠT įst. Yes

5 Latvia Yes Yes No No No

6 Lithuania Yes Yes Taip Yes No

7 Poland Yes No No No No

8 Romania No Yes Yes CŠT įst. projektas

Yes

9 Slovakia Yes No No No No

Key indicators of the Lithuanian DH sector

Unit 2001 2002 2003 2004

Heat delivered to the network

GWh 10824 10623 10440 10300

Heat delivered to consumers

GWh 8166 8244 8309 8140

Technological heat losses % 21.1 18.8 18.1 17,8

Average cost of fuel EUR/toe 135 131 131 126

Turn over for heating mio. EUR 272 278 277 268

Average price EUR/MWh 33.3 33.7 33.3 32.9

Heat energy Heat energy balanbalancece (1996-2004) (1996-2004)

15,2

12,34

11,3

10,1910,7 10,63 10,44 10,310,24

8,898,25

7,548,16 8,24 8,31 8,14

7

8

9

10

11

12

13

14

15

16

1996 1998 1999 2000 2001 2002 2003 2004

TWh

Patiekta į tinklą (heat delivered to network) Pateikta vartotojams (heat delivered to cumsumers)

Šilumos energijos technologiniai nuostoliai tinkluose, %DH transmission loss, %

23 21,1 18,8 18,1 17,8

05

10152025

2000 2001 2002 2003 2004

%

Competition in heat market among heat producers

Implementing the Heat Law several DH companies purchase large amounts of heat from independent heat producers. In such a way certain market (competition) successfully is formed at heat production stage.

UAB “Pajūrio mediena”UAB “Geoterma”

AB “Izobara”AB “Klaipėdos baldai”

AB “Grigiškės”

AB “Lifosa”AB “Simega”

AB “Panevėžio stiklas”

UAB “Plungės bioenergija”

AB “Klaipėdos energija”

UAB “Vilniaus energija”

AB “Panevėžioenergija”

UAB “Plungės šilumos tinklai”

During 2004 DH companies have purchased about 2200 GWh heat from industrial companies. It makes about 20 % of total heat delivered to DH network.

Heat energy consumptionHeat energy consumption,, 200 20055

Industry / business

companies8,5%

Budgetary organizatio

ns13,2%

Inhabitants70,5%

Other consumers

7,8%

Heat users

gg

477462523723 544630

572867 584255

114913(24,06%)

142297(27,17%)

123628(22,70%)

119518(20,86%)

12968722,19%)

0

100000

200000

300000

400000

500000

600000

700000

2001 2002 2003 2004 2005

Total number of users

Number of indebted users

68,5

52,5

59,1

80,1

72,075,5

82,3 83,6

27,3

44,1

38,1

22,7

9,7 5,6

18,717,2

1,2 2,0 2,0 2,04,0 5,0

7,210,0

3,0 1,5 0,8 0,6 1,3 0,8 0,8 0,80,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

1997 1998 1999 2000 2001 2002 2003 2004

%

Gamtinės dujos (Natural Gas) Mazutas (Mazute) Atsinaujinantys energijos ištekliai (Renewables) Kitas kuras (Other fuel)

Fuels used for DH productionFuels used for DH production 1997-2004

It is foressen that production of heat using local, renewable and It is foressen that production of heat using local, renewable and waste resources would make 17% in general heat balance in 2010, waste resources would make 17% in general heat balance in 2010, and 23% - in 2020.and 23% - in 2020.

The share of renewable energy resources (biofuel) in general fuel structure

1,22,0 2,0 2,0

4,0

5,0

7,2

10,0

0,0

2,0

4,0

6,0

8,0

10,0

12,0

1997 1998 1999 2000 2001 2002 2003 2004

%

Biofuel boiler houses:Biofuel boiler houses: ~200 pcs~200 pcs

(~ 416 MW capacity(~ 416 MW capacity))

Lithuania Sweden

Comparison of fuel input for DH production in Lithuania and Sweden, 2004

Other fuel0,8%

Natural gas

83,6%

Biofuel10,0%

Mazute5,6%

Mazute; 10%

Renewables; 60%

Heat pumps; 14%

Electric boilers; 3%

Natural gas; 6%

Other fuel; 5%

Forecast structure of fuel input for DH production in the case available potential

of biofuel to be utilized

Mazute5,6%

Biofuel 10,0%

Natural gas42,3%

Unused potential of biofuel

41,3%

Other fuel0,8%

Potential of local and renewable Potential of local and renewable resources available for utilizationresources available for utilization

Wood Wood 100 000 100 000 t.n.e t.n.e (500 000 t)(500 000 t)Straw Straw 150 000 150 000 t.n.e t.n.e (500 000 t)(500 000 t)

Mun. wasteMun. waste 60 000 60 000 t.n.e (t.n.e (350 000 t)350 000 t)Willows, sludgeWillows, sludge 90 000 90 000 t.n.e.t.n.e.((450450 000 t) 000 t)

__________________________________________________TOTAL ~400 000 t.n.e. TOTAL ~400 000 t.n.e.

Biofuel resources Biofuel resources utilized recentlyutilized recently

Under this agreement it will be strive to implement the national strategic goals, that the share of local, renewable and waste resources used in heat production would make up 17 % of the gross heat production balance in 2010, and 23 % - in 2020.

Joint activities set in the Contract:

• dissemination of information between organizations;

• planning of joint meetings and seminars;

• to form a committee on biofuel under LMSA council;

• promotion of biofuel supply among wood owners;

• increasing public awareness about strategic benefit of biofuel .

On 13 October, 2005 Lithuanian District Heating Association (LDHA), Lithuanian Biofuel Producers and Suppliers Association (LBGTA) and Lithuanian Wood Owners Association (LMSA) signed a triangular agreement for the development of biofuel utilization for district heat production in Lithuania.

Average Heat Price (1996-2005)

111,1

74,9

106,2109,1 111,6 114,9 116,5 115,1

113,5

0

50

100

150

1996 1998 1999 2000 2001 2002 2003 2004 2005

Lt/

MW

h

12151380

1671 1718

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2001 2002 2003 2004

GW

h

CHP electricity delivered to the network

• The share of CHP electricity would make up not less than 35% in 2020 (currently it makes about 17.2%)

• The share of CHP heat would make up not less than 75% in 2020 (currently it makes about 50%)

Guidelines of DH DevelopmentGuidelines of DH Development

DH companies - electricity producers

• III Vilniaus elektrinė (UAB "Vilniaus energija")

• II Vilniaus elektrinė (UAB "Vilniaus energija")

• Klaipėdos elektrinė (AB "Klaipėdos energija")

• Kauno TE (UAB “Kauno termofikacijos elektrinės)

• Petrašiūnų elektrinė, Noreikiškių kat. (AB "Kauno energija")

• Panevežio elektrinė (AB "Panevėžio energija")

• Druskininkų elektrinė (UAB "Litesko")• Šiaulių elektrinė (AB "Šiaulių energija")

• Jonavos elektrinė (AB "Jonavos šilumos tinklai")

Produce for own use and purchase

to National Elctricity Network

Produce for own use

Heat consumption and payments for heating in new and old erected apartment buildings

(Heat tariff 10 ct/kWh)

Old houses; Average flat of 60 m2Payments for heating

156 Lt/month156 Lt/month

New buildings average flat of 60 m2

Payments for heating 54 Lt/month54 Lt/month

Heat consumption in old and new erected houses

Build in

Consumed heat amount, kWh Price 1 m2 LTL (excluding

VAT)

PeriodTotal For

heatingFor hot water

preparation

Space heating of 1m2 (kWh/m2)

40 flats multy-family

apartment house

(heating area

1756 m2)

19621962

23000 18054 4946 10,28 1,04 10/2003

38000 33891 4109 19,30 1,95 11/2003

41000 36704 4296 20,91 2,12 12/200362000 58011 3989 33,04 3,35 1/200465230 61307 3923 34,92 3,52 2/2004

43300 39567 3733 22,54 2,28 3/2004

28000 23649 4351 13,47 1,36 4/2004

154,46154,46 2,232,23

102 flats multy-family

apartment house

(heating area

6923 m2

20012001

37000 11967 13608 1,73 0,18 10/2003

75000 46508 17067 6,72 0,69 11/2003

58000 32998 13578 4,77 0,49 12/2003

106000 75181 19395 10,86 1,12 1/2004

106000 77716 16860 11,22 1,16 2/2004

82000 51926 18650 7,50 0,77 3/2004

58000 32777 13799 4,73 0,49 4/2004

47,5347,53 0,700,70

Long-term renovation program “Let’s renovate dwelling- renovate City”

• On June 2004 Vilnius City Municipality started the implementation of long – term renovation program “Let’s renovate dwelling - renovate City”.

• World fund for Environmental Protection gave a loan of 6,5 million USD (3 million USD is intended for building renovation).

• Pilot project – overall renovation of 3 multi-family apartment buildings - is implemented within this project framework.

Legal Acts on Renovation of Legal Acts on Renovation of Multy-family Apartment Houses

• Lithuanian Housing Strategy (Adopted on 21-01-2004);

• Support Programme on Renovation of Multy-family Apartment Houses (Adopted on 23-09-2004, modified on 21-06-2005)

• Measures and terms of implementation of Directive 2002/91/EC of the European Parliament and of the Council on the energy performance of buildings (Adopted on 27-12-2004)

• Law on State Support for Housing’s Procure or Rent and Modernization of Multy-family Apartment Houses (Adopted with modifications on 24-03-2005)

On 7 March, 2005 Lithuanian District Heating Association received the grant form EU Structural fund for the implenetation of the Project "Training of District Heating Companies”

• Project Goal – increase skills and knowledge of the employees of the District Heating Companies in the area of management, marketing, finance management and accounting, EU energy policy

• Projected group: 47 high level and middle level managers and accountants from heat supply companies

• Project duration – 24 months

• Project value – 204 900 LtFunding – 150 842 Lt,  LDHA funding – 54 058 Lt

On 26 October LDHA has signed service supply contract for training with Lithuanian Institute of Public Administration

Europos Sąjunga

From June 2004 LDHA is implementing ES Phare project SENET: “Applying Corporate Social Responsibility and cross-border networking

of local authorities and energy associations towards rational and sustainable energy use in the context of enlarged EU”

Project duration: 24 months (June, 2004-June, 2006)Project budget: Total budget 920 thous. EUR (EU support 682 thous. EUR, own contribution 238 thous EUR)

Project partners are 9 companies from 5 EU countries: from Finland : City of Vantaa (Lead partner);  from Austria: Graz Energy Agency and City of Graz;  from Latvia: Association of Latvian District Heating companies and City of Ogre;  from Estonia: Estonian Power and Heat Association  and Association of Municipalities of Estonia  from Lithuania: Lithuanian District Heating Association and Kaunas City Municipality.

LDHA has formed a working group (20 members) on implementation of Supplementing acts of Heat Law

• This group is acting from September 2002 when the heat law was under preparation. The meetings are held on Fridays

• The main subjects of meetings: – related conceptual problems

and their analyzes, – introduction of relevant legal

acts, which under preparation (drafts) and which has entered into force

– relations between DH companies and governmental and municipal organizations implementing the provisions of legal acts in practice. 100th meeting was held in September 2005

- Governmental institutions (Ministry of Economy, Ministry of Environment, Energy Agency, State Energy Inspectorate, National Control Commission for Prices and Energy), - Consumer organizations (National Consumer Rights Protection Board, Lithuanian Consumer association, Federation of Apartment House Owners Associations), - Associations (Association of Local Authorities, Water Suppliers Association)- Consultants

Group members are the representatives from:

National Energy Strategy - Heat Sector

Strategy for the Heat Supply Development

• Heat supply development plans for municipalities• CHP in DH systems (after the closure of Ignalina NPP)• Encourage use of local and renewable energy sources• Improve energy efficiency• Competition among heat producers• Procedure for independent heat producers• Modernise heat supply systems• Procedure for the purchase of CHP electricity

Adopted by Seimas: 10/10-2002

Energy Law

Adopted by Seimas: 16/5-2002

• Energy savings• Energy efficient use of primary energy sources• Reducing energy intensity• Diversification (fuel imports, indigenous fuels)• Promotion of indigenous fuels• Reliable and cost-effective production• Reducing effects on the environment• Forming legal and economic conditions for investments • Increase economic efficiency: competition, private invest.

Heat Law

Adopted by Seimas: 20/5-2003

• Heat operator tasks (supply heat, maintain system)• Heat planning and zoning etc.• Relation with heat consumers (responsibilities)• New customer contract principles• Regulation of consumers’ disconnection options• Transparency for consumers• Access for external parties to supply heat • Separation from municipal economic activities

Competition in DH sector

• The competition between the suppliers of alternative types of fuels.

• The heat production shall be based on the competition between the heat producers.

• The hot water preparation and supply shall be based on competition.

• The state (municipalities) shall promote competition in the field of maintenance of heating and hot water systems inside the multy-family apartment houses.

Municipal Heat Plans

• The municipalities shall manage the heat sector in conformity with the special Municipal Heat Plans.

• The main objective of the Municipal Heat Plans shall be to satisfy the consumers heat demand on least costs.

• The Municipal Heat Plans shall be in conformity with the state strategy, national objectives in the energy industry.

• The government may provide assistance and support in implementing the Municipal Heat Plans.

M unicipal heat plans are

confirmed; 39; (65%)

No municipal Heat plans 13 ;

(22%)

M unicipal heat plans are

under preparation; 8;

(13%)

There are 60 municipalities in Lithuania

DHC: the link

Surplus heatfrom industry

Municipal Waste

CHP

Biofuels

Fossil fuels

Geothermal