place of investment Czech Republic - Liberec region - Jindřichovice pod Smrkem
installed capacity (kw/mw) 150 + 200 kWth (biomass heaters)
project cost (gross, in euro) EUR 105 000 (3 500 000 CZK) (biomass heaters)
project type Communal
number of users of generated energy Five municipal buildings (around 150 people)
type of energy resource replaced Coal
start of operation 2002
financial sources 60% commercial loan
ownership structure Municipality of Jindřichovice pod Smrkem
investor Municipality of Jindřichovice pod Smrkem
contractor The project was developed by the village and microregion's administration, the technology and the related services were delivered by several private companies
THE PROJECT

The municipality of Jindřichovice pod Smrkem contributes with several projects to the energy self-sufficiency strategy of the surrounding microregion, which strategy was adopted in 1999. The personality of the village mayor is the main driving force behind the developments, and he plays a significant role in promoting renewable and decentralized energy sources.

One of these projects was the investment in two biomass heaters with a combined capacity of 350 kWth. They replaced coal-fired boilers during an overall reconstruction of the heat-supply system.

Heat from burning wooden chips is supplied for five communal buildings. Next to the significantly reduced air pollution, the project also brings economic benefits to the village and provides employment for over
15 seasonal workers. A wind farm - also constructed in line with the energy self-sufficiency strategy - consisting of two wind generators of 600 kW capacity each, brings an annual net income exceeding
EUR 30 000 to the budget of the remote village with about 600 inhabitants. Next to one of the wind mills, a wooden low-energy house accommodates a tourist information centre which attracts over 10 000 visitors each year. The biomass heaters were put into operation in 2002, the wind turbines in 2003.

TECHNOLOGY

The two biomass heaters have a capacity of 200 kWth and 150 kWth, and burn wooden chips from cleaning-up operations in the municipal forests. The heaters were manufactured by TRACTANT FABRI, a Czech company. The annual energy production amounts to approx. 2 400 GJ and thus approx. 420 tons of lignite can be saved in a year.


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ECONOMIC ASPECTS

The shift towards biomass fuel in the heat supply for the municipal buildings saves annually about
EUR 8 000 for the village budget, even despite the fact that about 60% of the project costs was financed by commercial loan. The repayment of the loan and the maintenance of the installation are completely covered by selling some heat to a regional authority, owner of one of the supplied buildings, a home for elderly people. About EUR 9 000, the amount previously spent on coal and paid as a fee for polluting the air, is now saved for the municipal budget.

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SOCIAL EFFECTS

Five communal buildings are supplied with the produced heat: a school and kindergarten, a home for elderly people, a library, a tourist hostel and the municipality office.

The income collected from the two projects (biomass and wind) is partly used to improve the village facilities, such as construction of new children's playgrounds and the renewal of sports grounds, and partly is fed into the Fund for Environment. Thus, the citizens can get support if they want to convert their heating system to biomass (up to 30% as subsidy and 30% as interest-free loan). Free wireless internet for the entire village was also financed from the funds raised thanks to renewable energy projects.

More than 25 people are employed directly in the projects. They are mainly seasonal workers taking care of the wood chip supply and operation of the heaters, and jobs were also created in the tourist information centre and in the department which prepares further sustainable energy projects. More than 10 000 visitors are attracted by the results of the projects every year, which generates further jobs in the village.

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ENVIROMENTAL EFFECTS

The biomass heaters significantly reduced the air pollution in the village, saving more than 400 tons of low quality lignite every winter. The windmills are additional electricity sources, preventing the emission of approx. 1 500 tons of CO2 if compared to other electricity generation methods using fossil fuel.

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DIFFICULTIES, PROBLEMS

The windmills provide only 12% of the total installed capacity, and the wind energy project is economically viable only due thanks to significant subsidies. Still, it serves as a good example of how renewable energy can bring economic and social benefits to municipalities and development to remote and rural regions. If similar wind energy projects are planned more carefully, with an at least one-year wind intensity measurement, they can bring even higher benefits with less or no subsidies.

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FOLLOW UP

The municipality also has plans for future renewable energy and energy efficiency projects. It supports the conversion of household heaters to biomass and in the summer of 2006 it started the construction of its first ten passive houses. The houses are sold for a reasonable price, with the intention to attract young, new families to the village.

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FURTHER INFORMATION

Jindřichovice pod Smrkem

Petr Pávek
E-mail: ou@jindrichovice.cz
Web: www.jindrichovice.cz

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Examples to Follow - Successful and Sustainable Energy Investments in the Central-Eastern and South-Eastern European Region - Energia Klub
2008