Приватизация тепловых активов в Литве

1. Приватизация тепловых активовв Литве Vytautas Stasiūnas President of Lithuanian District Heating Association 2 Марта 2006, Москва Научно-практической конференции «Система взаимоотношений в теплоснабжении. Требования существующего и нового законодательства

2. 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)

3. Lithuania Moscow, Russia Population: 3,6 mill. Area: 65 300 km2

4. DH market share in Europe

5. Law on the Reorganization of the Special Purpose Company “Lietuvos Energija” and Transfer of the District Heating and its Management to Municipalities (1997 year) 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 • 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.

6. 1998 – the second 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.

7. DH companies – members of LDHA • UAB “Vilniaus energija” • AB “Kauno energija” • UAB “Litesko” filialai: • “Alytaus energija” • “Kelmės šiluma” • “Marijampolės šiluma” • “Palangos šiluma” • “Telšių šiluma” • “Vilkaviškio šiluma” • “Druskininkų šiluma” • “Biržų šiluma” • AB “Panevėžio energija” • “Kėdainių šilumos tinklai” • “Rokiškio šilumos tinklai” • “Kupiškio šilumos tinklai” • “Pasvalio šilumos tinklai” • “Zarasų šilumo tinklai” • AB “Klaipėdos energija” • AB “Šiaulių energija” • UAB “Eenergija” filialai: • UAB “Prienų energija” • UAB “Ukmergės energija” • UAB “Akmenės energija” • AB “Jonavos šilumos tinklai” • UAB “Mažeikių šilumos tinklai” • UAB “Utenos šilumos tinklai” • UAB “Tauragės šilumos tinklai” • UAB “Šilutės šilumos tinklai” • UAB “Radviliškio šiluma” • UAB “Anykščių šiluma” • UAB “Raseinių šilumos tinklai” • UAB “Kaišiadorių šiluma” • UAB “Švenčionių energija” • UAB “Ignalinos šilumos tinklai” • UAB “Plungės šilumos tinklai” • UAB “Pakruojo šiluma” • UAB “Šakių šilumos tinklai” • UAB “Lazdijų šiluma” • UAB “Birštono šiluma” • UAB “Širvintų šiluma” • UAB “Molėtų šiluma” • UAB “Šilalės šilumos tinklai” • UAB “Vilniaus rajono šilumos tinklai” • UAB “Fortum Heat Lietuva”

8. 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” Other DH companies – potential to be the members of LDHA

9. Growth of LDHA member-companies in DH market 2001-2004 2005

10. DH Ownership structure, 2005 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 (ownership 100% in municipality) (9.5% with JV)

11. Leased companies DALKIA group (France): UAB “Eenergija” (local investors): UAB “Fortum Heat” (Finland): • 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) • UAB “Prienų energija”- UAB “Ukmergės energija”- UAB “Akmenės energija”

12. Public Private Partnership How that works? • 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

13. 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 withthe Law on Public Procurement

14. LDHA is a member ofEuroheat&Power(International Association for District Heating, District Cooling and Combined Heat&Power) • From July, 2001LDHA was associated member of Euroheat&Power. • From March, 2003 LDHA became a full-right member. Euroheat&Power (Brussels) unites 20 European heat suppliers associations: • Iceland • Sweden • Norway • Denmark • Great Britain • Holand • Czech • Germany • France • Switzerland • Italy • Finland • Austria • Estonia • Latvia • Lithuania • Poland • Slovakia • Hungary • Romania

15. Heat Prices in Central and East European Countries, 2004

16. Legal Acts in Central and East European Countries

17. Key indicators of the Lithuanian DH sector

18. Heat energy balance (1996-2004)

19. 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. AB “Klaipėdos energija” UAB “Vilniaus energija” AB “Panevėžio energija” 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. UAB “Pajūrio mediena”UAB “Geoterma”AB “Izobara”AB “Klaipėdos baldai” AB “Lifosa”AB “Simega”AB “Panevėžio stiklas” UAB “Plungės bioenergija” AB “Grigiškės”

20. Heat energy consumption, 2005

21. Heat users gg

22. Fuels used for DH production 1997-2004 It is foressen that production of heat using local, renewable and waste resources would make 17% in general heat balance in 2010, and 23% - in 2020.

23. The share of renewable energy resources (biofuel) in general fuel structure Biofuel boiler houses: ~200 pcs(~ 416 MW capacity)

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

25. Forecast structure of fuel input for DH production in the case available potential of biofuel to be utilized Biofuel resources utilized recently Potential of local and renewable resources available for utilization Wood 100 000 t.n.e (500 000 t) Straw 150 000 t.n.e (500 000 t) Mun. waste 60 000 t.n.e (350 000 t) Willows, sludge 90 000 t.n.e.(450 000 t) _________________________ TOTAL ~400 000 t.n.e.

26. 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. • 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 .

27. Average Heat Price (1996-2005)

28. CHP electricity delivered to the network Guidelines of DH Development • 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%)

29. 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

30. Heat consumption and payments for heating in new and old erected apartment buildings(Heat tariff 10 ct/kWh) Old houses; Average flat of 60 m2 Payments for heating 156 Lt/month New buildings average flat of 60 m2 Payments for heating 54 Lt/month

31. Heat consumption in old and new erected houses

32. 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.

33. 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)

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

35. 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.

36. 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 Group members are the representatives from: • - 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

38. National Energy Strategy - Heat Sector Adopted by Seimas: 10/10-2002 • 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

39. 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.

40. 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

41. 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.

42. 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.

43. There are 60 municipalities in Lithuania

44. DISTRICT HEATING - CITY WITHOUT CHIMNEYS

45. Surplus heat from industry Municipal Waste Biofuels Fossil fuels CHP DHC: the link Geothermal