place of investment Slovakia - Žilina city - Hliny residential area
installed capacity (kw/mw) 185 kW
project cost (gross, in euro) EUR 65 622
project type Communal
number of users of generated energy 470 dwellings, kindergarten, store and laundry
type of energy resource replaced Coal, natural gas, lignite
start of operation November 2003
financial sources None
ownership structure Bytterm a. s. (Joint-stock company) Žilina
investor Bytterm a. s. (Joint-stock company) Žilina
contractor Thermosolar Žiar s. r. o. (Ltd.)
Žiar nad Hronom
THE PROJECT

The most prevalent energy source in the Slovak district heating sector is natural gas, whereas the share of lignite is gradually decreasing. Heat supply in Žilina city is provided by one of the biggest CHP plants in Slovakia operated by Žilinská teplárenská a. s. (Joint-stock company). The largest share of primary energy sources in Žilina is coal (95%). Natural gas (3%) and lignite (2%) have minor significance only. Energy in the city of Žilina is distributed to the residential parts by the medium of a heat distribution system and heat exchangers.

Heat supply in the residential district “Hliny” is provided by a heat exchanger (with steam or hot water medium) operated by Bytterm Joint-stock company. The company decided to install the solar thermal system to pre-heat drinking water thus solar-thermal collectors were installed at the heat-exchanging station. The system began operation in November 2003. It can be considered a pilot project as it is the first solar-thermal system installed in a district heating system in Slovakia.

TECHNOLOGY

The 132 solar-thermal collectors of type Heliostar 300 with an installed capacity of 185 kW were supplied by Slovak THERMO/SOLAR Ltd. Žiar nad Hronom, the leading company in the solar-thermal industry. The area of installed collectors is 264 m2, the average heat gain of one collector is 917 kWh / year, and the inclination is 30° and the capacity of hot water storage amounts to 4 m3 and 6 m3. 120 000 - 122 000 kWh heat is generated by means of thermal collectors per year. From April1st 2004 till March 31st 2005 the amount of produced energy was 118 000 kWh (32 778 MJ).

The lifetime of the solar thermal collectors is 25-30 years, that of the boiler approx. 15 years and the lifetime of the circulating pump 10 years.

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ECONOMIC ASPECTS

The project was financed by commercial bank-loans only. Neither state funds nor EU subsidies have been used within this project. The overall investment costs amounted to EUR 65 622 (SKK 2 500 000). Taking into consideration progressively rising prices of fossil fuels, the expected pay-back period is 7-10 years (without any support from the state) may even be shorter.

The installation of a technology based on renewable energy source results for both the district heating company and its customers in a higher independence from future fossil fuel prices.

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SOCIAL EFFECTS

The pilot project of solar energy utilization in municipal heating management in Slovakia has been frequently covered and promoted in national printed media focused on environmental and energy issues. Press agencies, regional TVs as well as other electronic media have reported on this project. In-depth and regularlyupdated information about this particular installation can be found on the web page of Thermosolar Ltd. The inhabitants of the residential area were sufficiently informed about the project and its pros and cons during the realization phase.

Representatives of municipalities, state and regional developmental, environmental and energy agencies and representatives of other district heating companies can also be advised and learn about the pros and cons of solar thermal energy utilization. Many other investors have already shown interest in replicating this model in other urban areas in Slovakia. Positive examples such as this can also contribute to raising environmental awareness and a better understanding and acceptance of solar energy utilization in Slovakia.

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ENVIROMENTAL EFFECTS

The estimated amount of CO2 reduction is 40 tons per year. To measure the overall reduction of negative impacts is more problematic, as the heat exchanger is connected to steam piping from a large CHP source, firing mainly lignite.

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DIFFICULTIES, PROBLEMS

There are certain difficulties concerning the low environmental awareness of residents. The negative legacy of the past years (import of cheap energy carriers from the former Soviet Union), misshapen prices and cross subsidies have led to an over-consumption of energy, overheated dwellings and houses, large energy losses and low energy efficiency. To change the existing patterns of behaviour requires considerable effort.

Regarding the political and legislative point of view, despite Slovakia's official declarations and commitments within the European Union, the utilization of renewable energy sources (including solar-thermal energy) is still out of the focus of the governmental energy policy, in addition to receiving very poor support from the state authorities. Moreover the flat rate Value Added Tax of 19% applies to solar-thermal collectors since 2003 (the previous VAT rate was 6%).

However, some positive changes may be visible this year. According to the “Strategy of wider utilization of renewable energy sources in Slovak republic, Measurement 5 - Program of wider utilization of biomass and solar energy in households” in order to achieve the goals in the section of heat power industry, it will be necessary to ensure investment support (in the form of subsidies) for personal entities for the usage of solar energy and biomass for heating and preparation of domestic hot water (boilers for combustion of biomass and solar systems) in dwellings and family houses during the period 2007-2015.

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FOLLOW UP

Thermosolar will use the experience obtained during this project and will try to implement this solution in other Slovak municipalities.

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FURTHER INFORMATION

Bytterm a. s. (Joint-stock company)
Saleziánska 4.
010 77 Žilina
Slovakia

Tel: +421 41 724 17 74
Fax: +421 41 724 31 96
E-mail: podatelna@bytterm.sk
Web: www.bytterm.sk
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THERMO/SOLAR _iar s. r. o. (Ltd.)
Na Vartičke P.O. Box 55
965 01 Žiar nad Hronom
Slovakia

Tel: +421 45 601 6080
Fax: +421 45 672 2844
E-mail: info@thermosolar.sk - tomciak@thermosolar.sk
Web: www.thermosolar.sk

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