place of investment Hungary - Pornóapáti
installed capacity (kw/mw) 2 x 600 kW
project cost (gross, in euro) EUR 1 400 000 (350 000 000 Ft)
project type Communal
number of users of generated energy 97 households joined
57 of them used district heating in the winter of 2005-2006
type of energy resource replaced Coal
start of operation 28th october 2005
financial sources PHARE CBC 2002 “Cross Border Development of Environmental Infrastructure”
Ministry of Internal Affairs funds
KKA (Austrian Environmental Protection Fund)
West Pannon Regional Development Council
ownership structure Pornóapáti Municipality (100%)
investor Pornóapáti Municipality
contractor Hoffmann-Teerag-Asdag Consortium
THE PROJECT

In the neighbouring Austrian village of Bildein (Beled in Hungarian) a village district heating system based on biomass has been in operation since 1994. The Pornóapáti Municipality has been monitoring this activity since its very beginning and, in accordance with the opinion and advice of Austrian residents, decided to initiate the designs and tendering procedure for implementing a similar system if the residents of Pornóapáti also support the idea. It is especially significant that Pornóapáti started the implementation of a district heating system based on biomass produced on-site since it is located near Szombathely where one of the largest lignite beds close to the surface can be found.

The aim of this new system was to supply environmentally friendly energy and district heating to family houses, companies and institutions.

Milestones:

  • Feb 2003 - Contacting designers
  • Apr 2003 - Residential decision in favour of implementation
  • Aug 2003 - Feasibility study, requiring building permit, production of designs
  • Sep 2003 - Issuing building permit
  • Sep 2003 - Submitting bid for PHARE CBC support
  • Apr 2004 - Signing support agreement
  • Oct 2004 - Organization of financing
  • Mar 2005 - Signing contract with main contractor
  • May 2005 - Signing contracts with residents
  • Oct 2005 - Technical delivery-acceptance

The investment has been realized on the outskirts of Pornóapáti village. The heating network has been constructed all over the administrative area of the village.

TECHNOLOGY

Two sawdust and wood-chip burning heaters of 600 kW capacity each supply the heat for the village heating system. The amount of necessary wood-chips is approx. 1 200 tons/year, while the estimated amount of generated energy is 9 500 GJ. The expected lifetime of this technology is 25 years. The length of district heating system pipes amounts to 3 900 meters, and the number of consumers connected to the system, as at 10 october 2005, is 97 out of which 86 are residential and 11 are industrial consumers.


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ECONOMIC ASPECTS

Planned replacements:

  • Coal: 347 t/year
  • Firewood: 260 t/year
  • PB gas: 4.9 t/year
  • Electricity: 370 MWh/year
  • CO2 reduction: 1,168 t/year

Planned emission reductions in terms of air pollution:

  • SO2: 5.4 t/year
  • CxHy: 6.6 t/year
  • CO: 43.4 t/year
  • Dust: 0.38 t/year

Biomass heating uses wood chips as basic heating materials from lumber mills and other forestry wastes produced in the surrounding areas.

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SOCIAL EFFECTS

Prior to and during the implementation, residents were continuously informed about the investment by means of public hearings, brochures, and personal communication. The Municipality offers the possibility of visits for those interested.

Number of created new workplaces: 1.2

The users of the system have a favourable opinion about the village heating system, and they feel it cheaper than the previous one. Residents are proud of their unique project and the successional effects of new investments, increasing awareness of village and environment, conferences and tourism.


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ENVIRONMENTAL EFFECTS

The investment has been realized from tendering funds and loans. In addition, some non-refundable subsidy was also received.

The terms and conditions related to each different support scheme vary greatly, and therefore they are difficult to handle and harmonize. A municipality generally does not possess sufficient own resources, is not creditworthy, and is completely exposed to investors. The major forms of supports can be received in the form of post-financing; therefore paying off contractors in line with the schedule is hard. What is more, there is a total lack of clarity with regard to the possibility of VAT refunds to municipalities.

The term payback period cannot be taken into consideration regarding the small heat exchange. The amount of savings cannot be expressed in calculated figures either since comfortable district heating is more expensive than own heat supply. Positive external effects - that can relatively and hardly, if at all, be expressed in figures - must be taken into account; for instance, increasing standard of living, more free time, local values, etc.

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DIFFICULTIES, PROBLEMS

Authority permits were granted by professional authorities in a very flexible manner and with a positive attitude; as a consequence, an extremely short time was needed for the necessary permissions.

Residents have been supportive from the very first moment; however, when the community won the PHARE tender, the gas supplier appeared and a smaller group of residents and neighbouring villages started to step up against the project. Despite this opposition, the majority of residents considered the arguments in favour of the project valid and decided to carry on with the investment.

A cooperative organization was established in August 2006 from the users' group in order to control operation. Previously the

Szombathely District Heating Works fulfilled operative tasks, without any problems.

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FOLLOW UP

The investment will be complemented with a solar collector system and the construction of storage for a week, but due to the lack of necessary funds, these plans have been postponed.

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FURTHER INFORMATION

Pornóapáti Municipality
9796 Pornóapáti
Körmendi út 27.

Contact: Purker Walter
Tel: +36 30 407 2543
E-mail: purker.walter@e-kisterseg.hu
Web: www.pornoapati.hu

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Examples to Follow - Successful and Sustainable Energy Investments in the Central-Eastern and South-Eastern European Region - Energia Klub
2009