1. INTERREG IIIC - REGENERGY Gefördert durch die Europäische Union Promoted by the European Union European District Heating and District Cooling Market Berlin/Leipzig, 10 May 2006 Thorsten Körner Stadtwerke Leipzig GmbH

2. INTERREG IIIC - REGENERGY Gefördert durch die Europäische Union Promoted by the European Union I. European Union 1. Position of the district heating sector in the EU 2. District heat production and CHP 3. Fuel used in the EU district heating sector 4. District cold production in the EU 5. Ownership II. Comparison Germany/Poland/Latvia/Greece/Russia 6. National energy strategies/laws/policies 7. Regulation at municipal level 8. Price regulation 9. Organisational and social problems

3. INTERREG IIIC - REGENERGY Gefördert durch die Europäische Union Promoted by the European Union I. European Union 1. Position of the district heating sector in the EU 2. District heat production and CHP 3. Fuel used in the EU district heating sector 4. District cold production in the EU 5. Ownership II. Comparison Germany/Poland/Latvia/Greece/Russia 6. National energy strategies/laws/policies 7. Regulation at municipal level 8. Price regulation 9. Organisational and social problems

4. INTERREG IIIC - REGENERGY Gefördert durch die Europäische Union Promoted by the European Union 1. Position of the District Heating Sector in the EU  The new EU members strengthened the position of the DH sector  More than 60 m people (EU-8: over 20 m) use DH  Poland is the leader in the European district heating as to number of users

5. INTERREG IIIC - REGENERGY Gefördert durch die Europäische Union Promoted by the European Union 1. Position of the District Heating Sector in the EU  The new member states (EU-8) strengthened the position of the DH sector  More than 60 m people (EU-8: over 20 m) use DH

6. INTERREG IIIC - REGENERGY Gefördert durch die Europäische Union Promoted by the European Union I. European Union 1. Position of the district heating sector in the EU 2. District heat production and CHP 3. Fuel used in the EU district heating sector 4. District cold production in the EU 5. Ownership II. Comparison Germany/Poland/Latvia/Greece/Russia 6. National energy strategies/laws/policies 7. Regulation at municipal level 8. Price regulation 9. Organisational and social problems

7. INTERREG IIIC - REGENERGY Gefördert durch die Europäische Union Promoted by the European Union 2. District Heat Production and CHP  CHP is the most important key to improve energy use efficiency, to decrease the environmental pollution and CO 2 -Emissions and to reduce fuel imports.  In EU-8 countries the CHP use is lower than in the old countries.

8. INTERREG IIIC - REGENERGY Gefördert durch die Europäische Union Promoted by the European Union I. European Union 1. Position of the district heating sector in the EU 2. District heat production and CHP 3. Fuel used in the EU district heating sector 4. District cold production in the EU 5. Ownership II. Comparison Germany/Poland/Latvia/Greece/Russia 6. National energy strategies/laws/policies 7. Regulation at municipal level 8. Price regulation 9. Organisational and social problems

9. INTERREG IIIC - REGENERGY Gefördert durch die Europäische Union Promoted by the European Union  The fuel mix for heat production in the EU remains less diversified than in the EU-8 states.  There is a large dependency on gas for heat production in the Baltic States (Lithuania 82%, Latvia 69%, Estonia 45%), Hungary (75%), Luxemburg (98%) and Netherlands (92 %).  Coal is the main fuel for DH in Poland (84%), Slovakia (73%) and Germany (56%).  EU-8 have a great technical potential for an increased use of renewable energy from industrial waste heat and waste. 3. Fuel used in the EU District Heating Sector

10. INTERREG IIIC - REGENERGY Gefördert durch die Europäische Union Promoted by the European Union I. European Union 1. Position of the district heating sector in the EU 2. District heat production and CHP 3. Fuel used in the EU district heating sector 4. District cold production in the EU 5. Ownership II. Comparison Germany/Poland/Latvia/Greece/Russia 6. National energy strategies/laws/policies 7. Regulation at municipal level 8. Price regulation 9. Organisational and social problems

11. INTERREG IIIC - REGENERGY Gefördert durch die Europäische Union Promoted by the European Union 4. District Cold Production in the EU  District cold is an efficient tool for providing comfortable indoor cooling in the summer time.  District cold production expands in Sweden, Norway, Italy and Spain, in the EU-8 the district cooling does practically not exist.

12. INTERREG IIIC - REGENERGY Gefördert durch die Europäische Union Promoted by the European Union I. European Union 1. Position of the district heating sector in the EU 2. District heat production and CHP 3. Fuel used in the EU district heating sector 4. District cold production in the EU 5. Ownership II. Comparison Germany/Poland/Latvia/Greece/Russia 6. National energy strategies/laws/policies 7. Regulation at municipal level 8. Price regulation 9. Organisational and social problems

13. INTERREG IIIC - REGENERGY Gefördert durch die Europäische Union Promoted by the European Union  In Austria, Finland, Hungary, Latvia and Poland district heating utilities are mainly owned by municipal authorities.  Austria and Germany have municipal multi-utilities (for gas, district heating, electricity and water supply).  The changes in the energy market (caused by EU directives) brought some new trends in the district heating sector (f.e. privatisations, vertically integration, public private partnership). 5. Ownership

14. INTERREG IIIC - REGENERGY Gefördert durch die Europäische Union Promoted by the European Union I. European Union 1. Position of the district heating sector in the EU 2. District heat production and CHP 3. Fuel used in the EU district heating sector 4. District cold production in the EU 5. Ownership II. Comparison Germany/Poland/Latvia/Greece/Russia 6. National energy strategies/laws/policies 7. Regulation at municipal level 8. Price regulation 9. Organisational and social problems

15. INTERREG IIIC - REGENERGY Gefördert durch die Europäische Union Promoted by the European Union 6. National Energy Strategies/Laws/Policies

16. INTERREG IIIC - REGENERGY Gefördert durch die Europäische Union Promoted by the European Union I. European Union 1. Position of the district heating sector in the EU 2. District heat production and CHP 3. Fuel used in the EU district heating sector 4. District cold production in the EU 5. Ownership II. Comparison Germany/Poland/Latvia/Greece/Russia 6. National energy strategies/laws/policies 7. Regulation at municipal level 8. Price regulation 9. Organisational and social problems

17. INTERREG IIIC - REGENERGY Gefördert durch die Europäische Union Promoted by the European Union 7. Regulations on municipal levels Poland Latvia Germany Greece  Organisation of the heat supply within the municipalities  Creation of preconditions for a rational use of local energy  17 municipal district heating price regulators  Implementation of own energy plans  Ownership of the district heating networks  Regional operational programmes  Energy is a part of the local planning (energy concepts)  Local authorities are responsible for local electricity, gas, district heating and water supply

18. INTERREG IIIC - REGENERGY Gefördert durch die Europäische Union Promoted by the European Union I. European Union 1. Position of the district heating sector in the EU 2. District heat production and CHP 3. Fuel used in the EU district heating sector 4. District cold production in the EU 5. Ownership II. Comparison Germany/Poland/Latvia/Greece/Russia 6. National energy strategies/laws/policies 7. Regulation at municipal level 8. Price regulation 9. Organisational and social problems

19. INTERREG IIIC - REGENERGY Gefördert durch die Europäische Union Promoted by the European Union 8. Price Regulation

20. INTERREG IIIC - REGENERGY Gefördert durch die Europäische Union Promoted by the European Union I. European Union 1. Position of the district heating sector in the EU 2. District heat production and CHP 3. Fuel used in the EU district heating sector 4. District cold production in the EU 5. Ownership II. Comparison Germany/Poland/Latvia/Greece/Russia 6. National energy strategies/laws/policies 7. Regulation at municipal level 8. Price regulation 9. Organisational and social problems

21. INTERREG IIIC - REGENERGY Gefördert durch die Europäische Union Promoted by the European Union 9. Organisational and Social Problems

22. INTERREG IIIC - REGENERGY Gefördert durch die Europäische Union Promoted by the European Union 9. Organisational and Social Problems Generally  Situation has changed dramatically after the transformation. Poland  50 % of primary energy is being utilized for heat production.  The purchase power indicator in Poland is 40 % higher than in EU.  The ownership and organisational transformation in the district heating sector proceeds slow and has not been finished yet. Germany  The social acceptance of DH is high.  U nbundling process has an influence on the DH sector.

23. INTERREG IIIC - REGENERGY Gefördert durch die Europäische Union Promoted by the European Union 9. Organisational and Social Problems Region Kaliningrad  Discrepancy between actual investment needs and financial possibilities.  Decrease in reliability.  Lack of long term investments resources. Latvia  High non-payment level (70-90%).  DH tariffs are used as a political instrument (e. g. before elections).  Obstacles for the development of co-generation.

24. INTERREG IIIC - REGENERGY Gefördert durch die Europäische Union Promoted by the European Union Summary 1 2 3 4 5 6 7 The position of DH sector in the EU strengthened EU brought bout changes in the national heat policies In some of the EU-8 countries huge dependence on Gas from Russia is existent Poland is the „EU-Leader“ Co-generation and new technologies are the keys for improving efficiency Municipals ownership dominates the DH market in the EU DH tariffs make investments in improving of efficiency difficult