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



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City Supporting partner LOMBARDY REGION (ITALY) A2A CALORE & SERVIZI SRL Map showing local heating and cooling demand and supply MILANO, STREET MAP: MILANO, ANNUAL HEAT DEMAND EXTRACT FROM PETA (STRATEGO WP2): ( < 8.3 GWh/km 2 ) (8.3 27.8 GWh/km 2 ) (27.8 83.3 GWh/km 2 ) ( > 83.3 GWh/km 2 )

FROM AN IN-DEPTH-STUDY OF A2A CALORE & SERVIZI, 2012 (MWh/KM2) (excluded actual DH)

MILANO, ANNUAL COOL DEMAND: ( < 2.8 GWh/km 2 ) (2.8 8.3 GWh/km 2 ) (8.3 27.8 GWh/km 2 ) ( > 27.8 GWh/km 2 ) Mapping methodology City only H/C demand H/C infrastructure Sustainable H/C Excess heat Energy efficiency potential Geothermal Bio-energy Solar thermal EXTRACT FROM PETA (STRATEGO WP2) Neighbourhood only Individual installation No details Additional Info Monitored data X X X X An extract from the Pan-European Atlas was taken. It indicates the heating and cooling demand on a 1 km x 1 km grid. An area with a high enough heating demand is indicated. For that area, the annual mean solar irradiation, the wood and straw potential at 30 km, the potential to tap geothermal energy and the available heat from the sewage system is indicated. Potential supply points for excess heat (energy intensive industry and power plants) are indicated as well. FROM THE IN-DEPTH-STUDY OF A2A CALORE & SERVIZI, 2012 The city was divided into squares of 1 km2, using a 15 km x 15 km grid. The use of such a grid fitted well with the data on buildings and gas consumption, some of which also related to a grid structure.

In order to facilitate the analyses to determine the transmission network layout, the city was divided into four areas, each area holding a number of 1 km² squares: The potential for district heating, excluding the existing district heating supply, is indicated for each area: Milan Northwest (NW): 1800 GWh Milan Southwest (SW): 1100 GWh Milan North (NO): 800 GWh Milan East (EA): 2400 GWh The total heat demand give a total potential of 6100 GWh per year. In comparison, the existing (2009) district heating distribution networks in Milan currently supply an annual 500. The building volumes from the database have been converted to a heat demand by using a general key figure: the key figure used was 25 kwh/m³. The consumption of natural gas has been converted to a heat demand by using the conversion factor of 9.85 kwh/m³. Additionally, all gas boilers were assumed to have an efficiency of 90%. The heat mapping has been carried out by the use of MAPINFO. A number of maps are carried out: Map with building types Map with heat demand in MWh on building level all buildings Map with heat demand in MWh on building level buildings with heat demand below 50 MWh are not included Map with heat demand index in MWh/km² based on gas consumption Map with heat density index in kwh/m³/km² based on gas consumption and heated building volume Map with heat demand index in MWh/km² based on volume (modified) and existing DH demand is subtracted Map with heat demand index in MWh/km² of buildings with other fuel than gas and DH The map shown in previous page in this report is the Map with heat demand index in MWh/km² (based on volume - modified- and with existing DH demand subtracted).

Current challenges - opportunities FROM PEAR 2015 REGIONE LOMBARDIA (PROGRAMMA ENERGETICO AMBIENTALE REGIONALE ENERGETICAL & ENVIROMENTAL REGIONAL PROGRAM) The heat supplied directly to the end user via district heating is a significant option for both energy saving and for the possibility of use of renewables as a primary energy source. Currently the district heating meets just under 2% of final energy consumption in Lombardy. The heat distributed in Lombardy through district heating is produced for a 74% from fossil and for 26% from renewable; this clearly show that renewable source play a significant role. The waste heat from existing power plants and industrial sites are important resources to reduce primary energy consumption in the region. Using the waste heat, otherwise lost, for production purposes or for heating and cooling loads, with shutdown of the existing boilers, also through the use of district heating and cooling, it allows an overall increase of efficiency at the local level. Currently in Lombardy there are many potential "sources" of waste heat, such as biomass plants, waste incinerators and thermoelectric plants, as can be detected in the following figure: PEAR 2015 REGIONE LOMBARDIA District heating systems, biomass plants, waste-to-energy plants, thermoelectric plants - census in Lombardia, 2012 (Regione Lombardi, Divisione Energia Infrastrutture Lombarde SIRENA20)

The above figure (data source: Regione Lombardia, Divisione Energia Infrastrutture Lombarde - SIRENA20) also shows the location of Cities, in the Lombardy Region, served by district heating systems. Areas of priorities FROM THE IN-DEPTH-STUDY OF A2A CALORE & SERVIZI, 2012 Milan has a district heating distribution networks supplying 6-8 % of the city with heat. For some years in Milano have been worked with plans to improve the district heating system, increasing the efficiency of the distribution systems and the heat production facilities by interconnecting the networks and by giving the most efficient production units the highest priority. There is still a potential for improving the district heating systems in Milano. Identified projects List of considered projects: Recovery waste-heat from existing CCGT power plant Recovery waste-heat from industry Project 1 MILANO - RECOVERY WASTE-HEAT FROM EXISTING CCGT POWER PLANT (CASSANO D ADDA POWER PLANT) It is generally accepted (also by the indications of European and National regulations) that cogeneration of heat and electricity is a very good way of producing energy, that could result better then separate productions; therefore cogeneration is a way of producing heat in an environmentally sustainable way. Considering these arguments, and considering the environmental and economic opportunities to re-use existing production facilities, one solution to improve the heating system for Milan is to increase the district heating system by the modification of the existing CCGT power plant in Cassano d Adda in order to extract heat for district heating and transform the plant into a cogeneration power plant, with a higher total energy efficiency than in its current configuration. Recently (August 2015) ACS has signed a MOU with Regione Lombardia and Milan Municipality to assess in more details the feasibility of this project with specific focus on: o coherence of the project with the Regional and Municipal urban and energy plans; o investigation about availability of resources to finance the project; o investigation about the best administrative procedures to authorize the realization of the project. This project could supply till about 400 MWth to Milano district heating. The recovery of this waste heat from Cassano CCGT will allow to save 126000 toe and will avoid emissions of 340000 tons of CO 2 (data refered to the whole Milano District Heating System, in a forecast including the heat recovery from Cassano).

Business model of project 1 Key Partnerships partners? [type suppliers? [type What are we requiring from them? Key Activities activities do our Key Resources resources do our Value Proposition What do we deliver to our 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 How are our channels integrated? segments Whom are we creating for? Who are the most important 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? Project 2 BRESCIA - RECOVERY WASTE-HEAT FROM INDUSTRIAL PLANTS Brescia district heating system is fed by several heat source, as waste to energy plants that satisfy more than 40% of the heat requirement of the city, a multi fuel cogeneration plants and some natural gas heat only boiler mainly to cover peak demands; district heating in Brescia now supply heat about 70% of the city buildings. The opportunity to recovery into this district heating network the waste heat from several industrial sources could improve the energetic and environmental efficiency of the whole system. Several industrial sites already exist near the city, and some of that has been study to evaluate the amount of heat recoverable: Industrial site a : heat recoverable 10 MWh and 30 GWh th yearly. This project could allow to save 2500 toe and to avoid emissions of 6000 tons of CO 2. Industrial site b : heat available 38,5 MW th, 3 MW th in a first recoverable, 15 GWh th on a yearly basis. Totally, this project could allow to save 1300 toe and to avoid emissions of 3000 tons of CO 2. Industrial site c : heat available, in a peak transient, would be 6.5 MW th, recovering 32 GWh th yearly. Saving could be 2500 toe and emissions avoided 6000 tons of CO 2.

BRESCIA AREA, STREET MAP - from Pan-European Thermal Atlas BRESCIA AREA, ANNUAL HEAT DEMAND - from Pan-European Thermal Atlas

Business model of project 2 Key Partnerships partners? [type suppliers? [type What are we requiring from them? Key Activities activities do our Key Resources resources do our Value Proposition What do we deliver to our 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 How are our channels integrated? segments Whom are we creating for? Who are the most important 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? Project 3 BERGAMO - RECOVERY WASTE-HEAT FROM AN INDUSTRIAL AREA The project of the Bergamo district heating was started in 2005 with the entry into operation of the first cogeneration plant Carnovali that, together with the central production simple Cavour, provides heat to major public and private buildings in the city center. In last years, the existing waste-to-energy plant has been widely connected to district heating, recovering a huge amount of heat for the city. A next perspective could be a connection of the district heating network to an industry pole, to recover the waste heat. The industrial pole could allow to recovery till 25 MW th of heat, otherwise lost, till 90 GWh th on a yearly basis. To connect the industrial pole, is estimable an extension of 5 km of double pipe 200 mm. This opportunity would contribute to save 8000 toe and to avoid emissions of 20000 tons of CO 2.

BERGAMO AREA, STREET MAP - from Pan-European Thermal Atlas BERGAMO AREA, ANNUAL HEAT DEMAND - from Pan-European Thermal Atlas

Business model of project 3 Key Partnerships partners? [type suppliers? [type What are we requiring from them? Key Activities activities do our Key Resources resources do our Value Proposition What do we deliver to our 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 How are our channels integrated? segments Whom are we creating for? Who are the most important 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 Planned Participants To be done, under developing Input into the local heating and cooling plan To be done, under developing