1. CHP plants in Estonia
Total installed electrical capacity of CHP plants in Estonia is an approximately 420 MW el.
CHP plants produce 10-15% of the gross electricity consumption. The share of CHP
production based on renewable fuels is negligible.
In appendix 1 the list of the CHP plants located in Estonia is given.
2. Financial support for CHP in Estonia
2.1. Feed-in-tariff and subsidised tariff
In 1998 a supporting scheme for the use of renewable energy sources for electricity
generation was established in Estonia. The Electricity Market Act (EMA) describes the
obligation for grid operators to purchase electricity from the renewable sources. Up to May
2007 the rate of the feed-in tariff has been 51.77 EUR/MWh. In May 2007, amendments of
the EMA came into force that established subsidies for high efficiency cogeneration of heat
and electricity (CHP). The new regulation supports CHP with feed-in tariffs CHP uses
renewable energy sources or peat, waste or oil shale gas or if a CHP plant (up to 10 MW) has
been started on the basis of a former heat only boiler (HOB) plant. Before that, there was no
political or financial support for CHP in Estonia.
The operator can choose between two options of support schemes: either to select the
combination of purchase obligation with the feed-in tariff, or to apply for a subsidized tariff
only.
Table 3: Support to electricity from renewable energy sources and/or CHP (EUR/MWh).
Tariff alternatives (EUR/MWh)
Subsidized
Compulsory feed-in-tariff
tariff
Renewable energy sources (facilities < 100 MWel)
Energy source
Wind
Other renewable energy sources
73,5 1)
73,5
53,69 2)
53,69
Renewable energy sources in efficient CHP
Efficient cogeneration
73,5 3)
53,69 3)
51,77 3)
31,96 3)
51,77
31,96 3)
Peat, waste, oil shale gas
CHP plant replacing heat-only boiler plant
Notes:
1)
up to the total (in Estonia ) annual production of 200 GWhe from wind;
up to the total (in Estonia ) annual production of 400 GWhe from wind;
3)
a different tariff rate may be approved by the Energy Market Inspectorate.
2)
2.2. Grant payments
In 03 April 2009 the regulation draft regarding the grant payments to expand renewable
energy production and construction of CHP plants in Estonia was enacted.
Regulation draft assumes grant payments for under 2 MWel (excepting islands) biofueled CHP
plants for up to 50% from expenses eligible for assistance.
Enactment of this regulation is an extremely important for small-scale biofueled CHP plants
expansion.
3. CHP potential in Estonia
Database of the Statistics Department of Estonia (SDE) shows, that there was more than 4000
boilers in Estonia at 2007 (ESA database represent registered boilers only).
Theoretically every heat only boiler has a CHP potential. So the theoretical CHP potential is
an approximately 110 000 GWhheat and 16 500 GWhel annually. In reality there are
technological and economical restrictions and features connected with them:
•
Every concrete CHP plant economical calculation is based on consumers heat load
duration curve. Consumer with constant heat consumption (mainly industrial consumers) is
more preferable than consumer with variable heat consumption.
•
ESA database contains modern and effective boilers working on fossil and bio fuels,
which took the place of old boilers lately. Replacement of those boilers by CHP plants is not
always the right decision, because expenses for those boilers mainly are not covered.
One of the problems is connected to industrial consumers. Experience shows, that heat
supply is organized in very cheap way in such kind of industrial enterprises. Taking into
account relatively high investment costs interest to CHP plants construction is limited.
•
In the places, where large-scale biofueled CHP plants are operating, or will be in
operation (as an example Tallinn, Pärnu and Tartu CHP plants) can appear biofuels shortage.
It may impede extension of small-scale biofueled CHP plants in the same region.
•
Relatively small-scale boilers and district heating systems are below biofueled CHP
technologies minimum capacities. Use of biofueled CHP technologies in such kind of places
is connected to CHP capacity over dimensioning and economically inefficient CHP
operation. At the same time CHP based on gaseous and liquid fuels are mainly not feasible
by reason of high fuel costs and relatively low electricity price.
•
There are a lot of opinions regarding CHP potential in Estonia. Opinions vary between 130
and 250 MWel. Opinions regarding CHP capacities in Estonian towns vary as well. As an
example CHP capacity in the city of Pärnu is suggested from 15 to 70 MWel.
Above-mentioned significant range in CHP plant capacities is explained in the following way.
Planning of the base load CHP plants means that CHP plant should cover consumers’ summer
heat consumption, which is commonly small. Semi-peak load CHP plants have higher
nominal capacities, where heat-only boilers or small and micro scale CHP plants cover
summer heat load.
Additionally CHP capacity depends on fuel and used CHP technology. As an example gas
engine and gas turbine technologies provide higher electricity production rate in comparison
to classic steam turbine technology with the same heat production.
One of the forecasts regarding biofueled CHP plant extension was given in Estonian energy
book 2003. Values of those forecasts are very close to current situation. They are given in
table 1. The CHP plants shown in the table are planed working on bio fuels and/or peat. By
the reason of high fuel prices and restricted income from the electricity production the CHP
based on fossil fuels for the time beings are not planed.
Table 1. Potential biofueled CHP plants in Estonia
Capacity
Under construction
CHP plant MWel MWheat
MWel
Tallinn
Tartu 1
Tartu 2[3]
Ahtme
Pärnu 1
Pärnu 2
25 50 (70)[2]
20
60
2,5
10
20
60
15
40
6
18
Viljandi
Kuressaare
Võru
Haapsalu
Paide
Rakvere
2,5
3
2
2
2
2
10
12
8
8
8
8
Keila
Valga
1,5
1,5
6
6
Jõgeva
1,5
6
Total
86,5 200 (270)
MWheat
25
24
49
50
23
50
73
149
At the moment Väo (Tallinn) and Fortum Tartu biofueled CHP plants are under construction. Supposedly, they
will start operation in the beginning of 2009. Preparation site works for Fortum Pärnu biofueled CHP plant are
in progress. It is assumed, that this plant will be in operation by 2011. The proposed annual heat and electricity
production of those CHP plants is 800-1000 and 400-500 GWh respectively.
Development of large scale CHP plants in the first place by-turn represents well-known principle. Feasibility of
CHP project increases with consumer higher heat consumption. With decrease of biofueled CHP plant nominal
capacity specific investment costs and operational costs grows electrical efficiency decrease.
The rest of the CHP plants from table 1 could be putted into operation during a few years (2011-2015). The
proposed annual heat and electricity production of those CHP plants is 300-400 and 75-100 GWh respectively.
Appendix 1 – CHP plants in Estonia
Nr.
CHP
Location
1 Iru Soojuselektrijaam
Tallinn
AS Narva Elektrijaamade Balti
2 Elektrijaam
Narva
Power [MW]
Technology
Fuel
electrical heat
110
220 Steam turbine Natural Gas
5 Kiviõli Keemiatööstuse SEJ
6 Sillamäe SEJ
7 Ahtme EJ
Horizon Tselluloosi and Paberi
8
AS Soojuselektrijaam
9 AS Sangla Turvas Elektrijaam
10 AS Tootsi Turvas Elektrijaam
11 AS Kunda Nordic Tsement
12 AS Grüne Fee
13 AS Narva Vesi
Kiviõli
Sillamäe
Ahtme
8
6
30
Kehra
10
Sangla
Tootsi
Kunda
Luunja vald
Narva
2,5
5
3,1
4
0,5
160 Steam turbine Oil Shale
Oil shale, oil shale
70 Steam turbine generator gas
12 Steam turbine Oil shale generator gas
Oil shale, oil shale
20 Steam turbine generator gas
12 Steam turbine Oil shale
?
Steam turbine Oil shale
Natural gas, fuel oil, black
125 Steam turbine
liquor,wood residues
7
Steam turbine Peat
14 Steam turbine Peat
3,3 Gas engine
Natural gas
Natural gas
4,8 Gas engine
0,7 Gas engine
Natural gas
14
15
16
17
18
Tallinn
Tallinn
Sillamäe
Tallinn
Tallinn
0,5
1.68
5,95
2,4
0,65
0,7
2
6,7
2,8
0,86
3 Kohtla-Järve EJ
4 VKG Energia
AS Kristiine Kaubanduskeskus
AS Terts
Sillamäe SEJ
ELME AS
AS Tallinna Vesi
215
Kohtla-Järve 27
Kohtla-Järve 8
Gas engine
Gas engine
Gas engine
Gas engine
Gas engine
Natural gas
Landfield gas
Natural gas
Natural gas
Natural gas