place of investment Slovenia - Vransko
installed capacity (kw/mw) 2 biomass boilers (2 MW and 1.2 MW)
1 reserve oil fuel boiler 1.5 MW
project cost (gross, in euro) EUR 2 285 000
project type Communal
number of users of generated energy 124 people
type of energy resource replaced Oil, wood
start of operation May 2005
financial sources own sources 29%
capital investment of Republic of Slovenia (GEF project): 21%
Ministry of Environment and Spatial Planning: 21%
Loan: 29%
ownership structure Republic of Slovenia, municipality of Vransko and private companies
manufacturers KIV d. d.
contractor Energetika Projekt
THE PROJECT

Wood has traditionally been the source of heating in the Vransko area in Slovenia. In 2002 about 60% of households in the municipality of Vransko were using wood for heating, either as the only fuel or as a supplementary fuel. Individual houses, industrial buildings and all the public users, financed by the municipality, were using mostly old, inefficient individual wood or oil fuelled boilers for heating purposes.

The long-term development strategy of the municipality of Vransko envisaged the ecological sanitation of the town, including measures like decreasing the use of energy and the installation of a biomass district heating system. On the basis of this long-term development strategy, the resultant energy concept and also a subsequent viability study of the project, the inhabitants of Vransko decided for the biomass district heating system.
The first users were connected to the system in December 2004, when the system started operating partially; since May 2005 it operates at its full capacity.

The length of the heating network, which consists of pre-isolated pipes, is 4,700m and it provides heat for 124 connected users who had installed compact heating stations. The connected users are individual houses and multi-flat buildings as well as all the larger public users: the school, the kindergarten, the medical centre, the company KIV, some shops, the municipality building, a restaurant, a bank, a cultural centre and the post office.
The system operates throughout the entire year, including the summer months.

TECHNOLOGY

The district heating system consists of three boilers: two biomass boilers (2 MW and 1.2 MW) burning wood chips and a reserve oil fuelled boiler (1.5 MW). Both biomass boilers were produced in Slovenia by KIV d.d., a local manufacturer, and ensure high efficiency use of biomass. The bigger boiler, type KIV BHH 2000 has an estimated fuel use of 4 m3/h, while the smaller one, type KIV MODUL R/H 2000 uses an estimated 2.4 m3/h biomass fuel. Both boilers are designed for burning biomass with relatively high humidity. The entire burning process is computerized.
The heat power of the connected users is 4.7 MW, the amount of heat sold totals 3 200 MWh/year. The wood chips are stored in a facility of 830 m3; the size of the daily reservoir storage is 370 m3.

Annually 9 000 m3 of wood chips, which are supplied by surrounding farmers, are used for the district heating system.

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ENVIROMENTAL EFFECTS

The project was financially supported by capital investment from the Republic of Slovenia (GEF project), a subsidy from the Ministry of Environment and Spatial Planning and a low interest rate credit from Environmental Fund of the Republic of Slovenia. Besides these sources, which covered about 70% of the investment costs, the remainder was financed by other partners (the municipality of Vransko and three private companies: KIV d. d., NICO and BACO d. o. o.). The total investment costs amounted to EUR 2 285 000 and the payback period of the investment is 14 years.

Financial sources:

  • own sources (municipality of Vransko, companies KIV, NICO, BACO): EUR 663 000
  • capital investment from RS (GEF project): EUR 483 500
  • subsidy from Ministry of Environment and Spatial Planning: EUR 483 500
  • credit from Environmental Fund of RS: EUR 655 000

The public company Energetika Vransko is responsible for the heat supply. The company is owned by the Republic of Slovenia, the municipality Vransko and the companies KIV, NICO and BACO.
The capital investment of the Republic of Slovenia will be sold after approximately 5 years and the revenues will be used for supporting new biomass district heating systems.

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SOCIAL EFFECTS

The public was from the planning phase on reasonably well informed about the project, which is also a reason for the project being well accepted by the local population. The environmental awareness of the population has increased. Further environmentally-friendly investments are in the planning or execution phase within the municipality. The local company (involved in the project) is planning to build a solar power plant and a residential area of passive houses.
The enlargement of the district heating system is also planned.

Interested groups or individuals can visit the project site and its facilities.
Vransko also hosts the info point of the 'biomass path' which is a part of an international biomass path in the Alpine region – it connects France, Italy, Switzerland, part of Germany, Austria and Slovenia.
Also, a technological-innovation centre for alternative sources of energy was established in Vransko shortly after the district heating system was put into operation. The aim of the centre is to combine the environmental development and research potential with the demonstration of new technologies for the use of renewable energy sources.

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ECONOMIC ASPECTS

The estimated reduction of CO2 emissions through the investment is 1 607 tonnes/year.

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DIFFICULTIES, PROBLEMS

Most problems were caused by lengthy procedures for obtaining the licence and environmental permits.

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FOLLOW UP

Not mentioned.

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FURTHER INFORMATION

Kranjc Ludvik

Energetika projekt d. o. o.
Vransko 66
3305 Vransko – Slovenia

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