Grant recipient: SIA Jelgavas Kogeneracija
Project: Modernization of Jelgava's centralised heat supply

Summary Description

Within the framework of this project for Jelgava (Republic of Latvia) the company SIA Jelgavas Kogeneracija will, apart from renovating the existing district heating network, also install and operate four container-sized block-type thermal power stations and two modern boiler units as a measure of energy efficiency. The district heating system in Jelgava (the fourth largest city of Latvia) will undergo an optimisation under energy efficiency aspects, individual heating consumption will be made known to the users and attainable energy savings due to insulation measures will be demonstrated as part of an exemplary renovation of a slab block building. The total investment amounts to approximately 6.1 million Euros. The Federal Environment Ministry will co-finance the project with an interest and investment grant of up to 1.2 million Euros.

Jelgava's district heating system serves two thirds of the city's inhabitants. The pipe network will be partly renewed and old boiler units will be replaced by modern combined heat and power generation plants. This will help to reduce 92 percent of the energy loss in heating distribution alone. In addition to that electricity will be produced as part of heat generation which again will help to reduce CO2 emissions from conventional power plants.

At least 600 flats in slab block buildings (approximately 13 percent of all flats linked to the district heating system) will be fitted with gauges to register heat consumption and thus inform the tenants of their annual consumption. The implementation of this measure is a prerequisite for financial aid under the project. If the investor decides to fit more flats in slab block buildings with registration gauges he can, depending on the amount of additional flats covered, receive grants to this investment within the framework of the project. According to the experience made in Germany, this measure can contribute to an energy saving of up to 20 percent. It prompts in very concrete terms a more sparing use of heating energy. In addition to that it prepares the public at large for a general introduction in the whole of Latvia of the registration and charging of individual heat consumption. This is a demand made by the EU Directive to limit carbon dioxide emissions by improving energy efficiency which will have to be transposed into Latvian law within the next few years.

As part of the project at least one of the slab block buildings linked to the district heating system will receive modern heat insulation in the course of its renovation. Based on experience made with other projects in Latvia this can help to save about 50 percent of heating energy. This measure and the establishment of a local energy information centre will have a radiating effect on the renovation of the remaining stock of not yet refurbished flats in Jelgava. It will certainly enhance the readiness of flat owners to take initiative.

The project has a positive transboundary impact on the environment. It is expected that the more efficient heat generation and the sparing use of heat in Jelgava will lead to a reduced emission of the greenhouse gas CO2 which alone will amount to approximately 9500 tonnes per year. The project success is expected to have an exemplary impact on Latvia and other new EU Member States in Eastern Europe with a similar background. However, the overall beneficial effect for climate protection can be assumed to be much higher. Since global warming is a universal international problem, Germany will also benefit from the greenhouse gas emissions saved in Latvia. The project is also targeted at using funds from the EU structural fund for housing renovation under energy savings aspects in the new Member States.

The project "Modernization of Jelgava's centralised heat supply" is the continuation of a successful cooperation with Latvia. It was initiated on the basis of the framework interdepartmental agreement which the Ministers for the Environment of both countries signed in Mai 2004 to allow a simplified implementation of further projects.