Invitation DANISH DISTRICT HEATING ROAD SHOW

Transcription

1 Invitation DANISH DISTRICT HEATING ROAD SHOW POLAND SOUTH-EAST FROM 30 MAY TO 2 JUNE 2016 In cooperation with Royal Danish Embassy in Warsaw and Polish Chamber of District heating, IGCP, DBDH takes pleasure in inviting you to join a District Heating Road Show in Poland. The road show takes place during four days from 30 May till 2 June in the south-eastern part of Poland, and will focus on four cities: Warsaw, Lublin, Tarnobrzeg and Tarnow. The road show will kick-off in Warsaw with a seminar presenting the overview of energy laws in Poland and investments in district heating with participation of local stakeholders like Energy Regulatory Office and the new Ministry of Energy, as well as the large energy players like PGNiG Termika, and Veolia. The seminar is a crucial step in supporting the cooperation between the district heating sector in Poland and Danish companies.

2 BACKGROUND The headline of the Roadshow is Creating low emission economy in district heating and the focus will be to strengthen the Danish-Polish cooperation within district heating and cooling touching on topics like energy efficiency and energy savings, and how to introduce renewable energy to the district heating systems. Key bullet points for the investments in Poland in the District Heating sector are low emission economy in line with climate priorities of EU and Polish energy policy More CHP fuelled by gas, biomass and solar More flue gas cleaning systems More efficient heat production Reducing the energy losses IT energy management systems Especially when it comes to energy efficiency and energy savings and looking at the quality level of district heating in Denmark, IGCP is convinced that Denmark has succesfully dealt with the problems and the DH sector in Poland will benefit from the Danish experience. The Polish district heating sector is in front of huge modernisation challenges. The main areas of intervention concern support for production units within highly efficient cogeneration, modernisation of existing district heating network, and new investments within district heating network to expand number of recipients. NB. A more thorough overview of the Polish DH market is found enclosed to this invitation. The major expected outcome of the Road Show will be the heating/cooling knowledge and technology transfer from Denmark to Poland, contributing to the Danish export increase in the district heating market and at the same time developing the Polish market for district heating and cooling into a more innovative and energy efficient one.

3 THE PROJECT The Road Show will bring a Danish business delegation to Poland for a four-day event with round table meetings and site visits taking place at Polish DH companies' sites in the South-eastern part of Poland. Chairman of DBDH, Mr. Lars Gullev, who is Managing Director of the Western Copenhagen transmission company, VEKS, will be part of the Danish delegation as well as Vice President of IGCP, Mr. Boguslaw Regulski. The roadshow will begin in Warsaw with a seminar presenting the overview of energy laws in Poland and investments in district heating with participation of local stakeholders like Energy Regulatory Office and the new Ministry of Energy, as well as the large energy players like PGNiG Termika, and Veolia. Following the seminar, the road show will the following days include 3 main district heating companies plus smaller district heating companies with low emission plans approved. The participants of the events are the representatives of local municipalities and district heating companies from Lublin, Tarnobrzeg and Tarnow plus surrounding municipalities and district heating companies. The Polish DH companies have been identified in advance in cooperation with the Polish Chamber IGCP. The identification has put focus on finding those DH companies in Poland that are planning investments in DH renovation or development (i.e. transformation to another energy source, CHP, etc.). NB. You will find a detailed description of the District Heating utilities enclosed to this invitation. The agenda for the Road Show in Poland will cover the most interesting topics for the Polish and Danish group with a view to future possibilities for cooperation. The general formula of the event will cover company presentations plus site visits. In brief, the visits begin with a theoretical introduction - a short presentation of the Polish hosting company (technology, solutions, business scope and challenges) and presentations by the Danish delegation members, touching upon solutions and new technologies offered by their companies. The presentations are followed up by a round table discussion. The Danish delegation is also offered a site tour around the running heating plants in Poland to see the challenges in practice. The visits during the week will give your company a firsthand insight in the challenges and need of your potential customers in Poland, and bring you in close contact with the sector and companies that are prioritizing new investments in the District Heating Sector with a wish to cooperate with Danish companies. In this way, we aim to create a great sales platform for Danish companies which will enhance the business relations between Polish and Danish entities.

4 TENTATIVE PROGRAM Sunday 29 May Flight from Copenhagen to Warsaw Accomodation: Hotel Sofitel, Warsaw Monday 30 May - Warsaw Venue: ROYAL DANISH EMBASSY Welcoming by the Ambassador, Steen Hommel Polish Energy Policy, representative of the Ministry of Energy District Heating sector in Poland, development plans for the coming years, Polish Chamber of District Heating, Vice President, Mr. Regulski. Financing of Investments in district heating sector overview of EU programmes District heating market in Denmark strong competences Mr. Lars Gullev, DBDH. Short introduction of Danish participants short presentation of their key competences Challenges, development plans, PGNiG Termika Inteligent district heating network Veolia Lunch (own cost) Transfer to Lublin (170 km, approx. 2.5h) Accommodation: IBB Grand Hotel Lublinianka Tuesday 31 May Lublin Venue: LPEC LUBLIN Round table discussions and presentations by participants Danish/Polish side. Expected participants Polish side LPEC Lublin and other utilities and city representatives (in charge of infrastructure) in the region. Lunch hosted by Danish side (own cost) Site visit LPEC Lublin Transfer to Tarnobrzeg (130 km, approx. 2h ) Accommodation: Hotel Samanta, Sandomierz

5 TENTATIVE PROGRAM (continued) Wednesday 1 June Tarnobrzeg Venue: ECO TARNOBRZEG Round table discussions and presentations by participants Danish/Polish side. Expected participants Polish side ECO Tarnobrzeg and other utilities and city representatives (in charge of infrastructure) in the region. Lunch hosted by Danish side (own cost) Site visit ECO Tarnobrzeg Transfer to Tarnow (90 km, approx. 1.5h ) Accommodation: Hotel Gal Thursday 2 June Tarnow Venue: MPEC TARNOW Round table discussions and presentations by participants Danish/Polish side. Expected participants Polish side MPEC Tarnow and other utilities and city representatives (in charge of infrastructure) in the region. Lunch hosted by Danish side (own cost) Site visit MPEC Tarnow Bus transfer to Krakow Airport Flight from Krakow to Copenhagen

6 TRAVEL ARRANGEMENT Arrival to Warsaw Sunday Evening (29 May) or Monday (30 May) early morning. Possibly flight from Copenhagen to Warsaw on 29 May by LOT LO462, Departure from Krakow Thursday (2 June) afternoon/evening. Possibly by flight from Krakow to Copenhagen on 2 June by Norwegian DY3563, Hotels and bus transport in Poland will be arranged by the Danish Embassy. The hotel price level is approx PLN/night. Prices The price includes all shared costs of the project including local transport in Poland. Only individual costs like fligths, meals and accommodation are not included. DKK 14,500 ex. VAT DO YOU WANT TO JOIN? Please register using the link before 15 April, 2016 Press here for registration Royal Danish Embassy Izabela Jakobsen DBDH Pia Zimmermann

7 MARKET OVERVIEW SECTOR HIGHLIGHTS According to Energy Regulatory Office analyses the risk of power deficits has been put off to Until 2028 much more power utilities will be constructed than closed. What is now visible in the sector is the trend of the consolidation of smaller utilities Ministry of Treasure hopes that bigger companies will be able to ensure energy security. Right now Poland is the fourth biggest energy producer in EU. On the other hand Poland has lower energy consumption than EU average ,1 KM OF NETWORKS - DKK 24 BILLION SECTOR TURNOVER COMPANIES The district heating companies - operating on the basis of concessions issued by the Energy Regulatory Office (URE) - generate approx. 57% of the heat produced in Poland. The number of companies with concessions granted i.e. with heat sources above 5 MW stood at 451 entities in They employed over people and maintained an installed thermal power of MW. The income level of the heating sector was approx. DKK 28.7 billion (PLN 16.8 billion). At the same time, the length of operated heating networks was approx km. The share of heat generated in co-generation with electricity production accounted for 64%. FUELS In general the fuel used for DH in Poland is still very heavily relaying on fossil fuels. Figure 1 below shows the share of different energy sources used as fuel in DH-plats in In 2014 the structure was almost the same, only the share of RES fuels increased to 7.8% and so the share of coal fuels decreased to 75%. Even though there have been some small changes, the need to change the fuel structure used for heat production is among the key challenges of the sector for the coming years. Since 2013, Polish heating companies are obliged to buy 20% of the required CO2 emission rights. The share of hard coal in heat production dropped only moderately since year 2002, where it accounted for 79.1%, while the share of biomass increased by 2.3% points. The CO2 emission regulations have clearly mobilized the district heating sector for raising voices urging Polish authorities to introduce regulatory changes that would promote new investments and modify the current heat tariffs system. Said more direct there is a great need for new green technology on an area where Danish companies are well known and recognized in Poland. Figure 1 fuels structure in 2013

8 MARKET OVERVIEW SECTOR HIGHLIGHTS - 1/4 OF POWER PRODUCED COMES FROM 8 BIGGEST POWER PLANTS - 58 % OF POWER SOURCES BELOW 50 MW - 30% HEATING COMPANIES MIXED OWNERSHIP First of all, the district heating sector is still much diversified. The mixed ownership structure is getting more popular, even though the majority of the companies are still public owned. Secondly, the market is dominated by rather small players with capacities below 50 MW. Finally, it is worth noticing that there is a growing number of companies exclusively (70-100% of their turnover) focused on district heating activities and a diminishing number of industrial companies involved in heat production and distribution. The share of the first group in total number of concessioned companies increased from 53% in year 2008 to 62% in ECONOMIC SITUATION AND INVESTMENTS - 25% INCREASE OF COMPANIES INVESTING IN MODERNIZATION AND DEVELOPMENT (COMPARED TO 2002) - AVERAGE NET PRICE IN 2015 PER MWH = PLN 172/DKK DECREASE OF SECTOR FIX ASSETS DEPRECIATION INDICATOR The technical and financial situation of the Polish district heating sector is very challenging. Despite a growing value of investments, ongoing privatization procedures and the inflow of international investors the need for replacement investments is evident. The average age of the used equipment amounts to 35 years which results in the increase of power losses. What is more, the lengthening of power lines also contributes to this process. Apart from that, old equipment produces more pollution and CO2.

9 INFORMATION ON DISTRICT HEATING UTILITIES LPEC LUBLIN LPEC Lublin produces and distributes heat for over 60% of Lublin inhabitants. What is more, the company provides other services like maintenance of heat network, network design and installation of heat network. The majority of energy (70%) is distributed to residential buildings and to services (12%). The length of heat network amounts to 400km. The heat system uses the energy from two sources - EC Lublin-Wrotków and Megatem EC-Lublin. The rate of the heat produced using cogeneration adds up to 94%. The figure 3 shows that the net profit of the company changed only a little during past years but the ROS has decreased significantly. Currently, company modernizes Lublin s heat network, ex. during the construction of Hampton hotel. In addition to that, although the authorities of Lublin do not plan to sell the company, investors like PGNiG Termika are interested in buying LPEC. Figure 3 Financials of LPEC Lublin ECO TARNOBRZEG Company is a producer and distributor of energy in the region of Podkarpacie (produces energy for 75% of Tarnobrzeg inhabitants). ECO Tarnobrzeg owns 2 energy sources of 88.5 MW power, gas heating facility which consists of 6 gas boilers (47 MW) and coal heating plant (41.5 MW). Heat is distributed via 46km network with 315 heat bounds. In 2015 ECO Tarnobrzeg employed 74 people. Company was acquired by GK ECO in 2013 for USD MN. GK ECO is an owner of 5 big power plants in Poland and works using the Integrated Management System which helps to covers quality, environmental and occupational health and safety management for all the Company s utilities. As the figure 2 shows, despite small decline of ROS level in 2012 and 2013, in 2014 the financial conditions have enhanced. Figure 2 Financials of ECO Tarnobrzeg

10 INFORMATION ON DISTRICT HEATING UTILITIES MPEC TARNOW Tarnow district heating plant was established in The company produces electric energy and heat and provides hot water for more than inhabitants of Tarnow and near cities. One of the MPEC Tarnow utilities Piaskówka plant meets all the environmental and European standards. The company is a Polish leader among district heating companies producing up to GJ/year. Company s heating network amounts to 101 km of length. Besides its main activity, MPEC Tarnow provides services of heating network maintenance, installation of heating network, IT services. Below, the figure 4 presents increasing ROS of Tarnow plant. Figure 4 Financials of MPEC Tarnow