Deliverable 3.a (Combining former deliverables 3.1; 3.2; 3.5)

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1 City Supporting partner Ostrava, Moravian-Silesian region ADH Czech Republic Deliverable 3.a Map showing local heating and cooling demand and supply Ostrava and whole Moravian-Silesian region is one of the most contaminated regions of the Czech Republic in terms of emissions. The northern part of the region is characterized by its original focus on heavy industry, particularly metallurgy and coal mining. Next to the major city of Ostrava there are large residential complexes - towns Karviná and Havířov, see the extract of the Pan-European Thermal Atlas. These towns are supplied with heat primarily through the extensive district heating system with indigenous local CHP Karvina, CHP CSA and gas heating plant Havirov. CHP Karvina and CHP CSA are older sources with higher permitted levels of emissions now but in the future will be required significant upgrading or replacement of these sources. Heat demand Location Number of households in Heat demand [MW] for 2015 blocks of flats winter summer Havířov Karviná Důl ČSA Orlová a Bohumín Losses of heat feeder Dětmarovice Total Estimated total annual heat supply to the heat system Karvina + Havirov for 2015 is GJ/year.

2 Karviná Havířov There is at a distance of about 9 km from the centre of Karviná the Dětmarovice power plant with 4 x 200 MW e energy units. This plant could be gradually modernized and adapted to the heat supply system (adaptation of the turbines to the heat consumption mode and increase the share of CHP). Energy units of this plant will be progressively retrofitted with installations reducing emissions to be able to meet the emission limits according to EU and Czech legislation after We also consider to build a WtE incinerator which could be located either at the power plant of Dětmarovice or within existing CHP ČSA.

3 Mapping methodology Deliverable 3.a H/C demand H/C infrastructure Sustainable H/C Excess heat Energy efficiency potential Geothermal Bio-energy Solar thermal City only Neighbourhood only x x x Individual installation No details Additional Info Monitored data Heat demand mapping These data were collected from our local partners. They are based on the long-term average winter and summer consumption of the end customers in this area. Excess heat potential There is a lot of sources of excess heat in this area thermal power generation, chemical and petrochemical industry, abandoned coal mines, iron and steel industry. We discussed this situation with our local partners and we chose the most effective solutions. Current challenges - opportunities Ostrava and surrounding cities are densely covered by district heating system (Ostrava 97 %, Havířov 99 %, Karviná 99 %,). There is a very little opportunity to extend district heating system. That is why we have to seek for other solutions to improve the situation in this region. As opportunities in this region we consider replacement of coal-fired boilers for gas turbines or modification to the CHP regime. As most of the cities in this region waste is dumped in landfills. We would like to help them to find a solution for building modern incinerators. Areas of priorities Priority areas we find in: 1) use of energy from waste 2) replacement of old fossil sources for new greener ones 3) utilization of excess heat Identified projects List of considered projects: Utilization of excess heat from CHP Dětmarovice Build waste to energy incinerator near Karviná Expansion of the DH system in Nový Jičín

4 Project 1and 2 Deliverable 3.a The objective of this project is to ensure heat for residential complex Karviná near Ostrava city by environmentally efficient way using upgraded and ecologized heat source of CHP Dětmarovice and waste to energy incinerator with CHP regime. MS region produces approximately 460 t tons of waste per year. The WtE incinerator will reduce landfill by about half and MS region gains heat ( GJ/year) and electricity (23000 MWh/year). The proposed solutions: Winter option Dětmarovice capacity 260 MWt + WtE incinerator 40 MWt 160/60 C Summer option Dětmarovice capacity 38 MW + WtE incinerator 40 MWt 95/55 C The optimum size of the waste to energy incinerator is consisted of 2 technological lines with overall capacity 192 t tons of waste per year with caloric value 10 GJ/t. Installed capacity would be 40 MWt. Annual working hours fund could be 8000 hours. The incinerator could replace the old CHP ČSA. It could be also possible to discuss the purchase of waste from Poland. Thanks to this project Czech Republic could fulfill the obligations arising from EU Directive 31/99 / EC on the landfill of waste. Business model of project 1 and 2 Key Partnerships Local energy supplier company. Regional authority of MS region and consortium of 5 cities (Ostrava, Opava, Karviná, Havířov, Frýdek- Místek) that concluded a memorandum on mutual cooperation. We want them to solve the issue of waste management. Key Activities Site selection, construction of WtE incenerator, shutdown of old coal-fired heat plant, connection to the heat and electricity network. Key Resources locality, technology, providing a necessary amount of waste Value Proposition By construction of WtE will be reduced space of landfills, will be reduced emissions of landfill gases, will be fulfilled commitments to EU, will be produced heat and electricity, will be saved fossil fuels. Relationships Our customers expect final and environmentally acceptable solution of the waste management in the region. Channels Connecting the WtE incinerator to the DH and electricity grid instead of old ČSA heat plant. segments Households of MS region. Cost structure The most expensive is an investment in WtE incinerator. It is about 180 million. Project plan includes obtaining European and/or national grants and credit financing. Revenue Streams s are willing to pay higher fees for the waste.

5 Project 3 Nový Jičín is a town on the edge of the Moravian-Silesian Region. It has more than households in block of flats and there is a potential of almost households that is not connected to DH system. There are two proposals to improve the situation in this region. 1. Source Šenovská is an old coal heat plant with installed capacity 3x10 MWt. We propose to replace the old coal boilers with a new gas regime with chp. A third of the capacity is not used, we suggest to restore the pipeline to adjacent complex of school and hospital. 2. The second proposal is to extend DH system from the gas source Tonak to the near urban area and a new hospital. The Tonak source has installed capacity 41 MWt and it is not fully utilized. Operators of the sources and the regional authority agree with this proposals. Now we are working on technical and economical solutions. Ostrava Nový Jičín

6 Business model of project 3

7 Key Partnerships Who are our key partners? [type of companies] Who are our key suppliers? [type of companies] What are we requiring from them? Key Activities What key activities do our value propositions require? Key Resources What key resources do our value propositions require? Value Proposition What value do we deliver to our customers? What bundles of products and services are we offering to each customer segment? Relationships What relationship do our customers expect us to establish and maintain? Channels Through which channels are we reaching our customers? How are our channels integrated? segments Whom are we creating value for? Who are the most important customers? Cost structure What are the most important costs What are the most expensive activities and resources? Can costs be reduced by partnerships? Revenue Streams What are our customers willing to pay for? Results of the stakeholder meeting Date 27 th April 2016 Participants Some headlines of the stakeholder meetings Input into the local heating and cooling plan Some explanation on the identified areas of priorities

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