INVESTMENT PROPOSAL

The name of the project The project of increase of efficiency of use of thermal energy in the town of Balakhna of Nizhny Novgorod Region
Budget

4 675 200
foreign investments
equity capital

 USD, including:
 
 
The term of the project implementation 12 months
Payback 24 months
The term of life of the project 25 years
The project initiator Nizhny Novgorod Regional Center of Energy Saving (NICE)
Address: Minina str., 24, Nizhny Novgorod, GSP-41, 603600, Russia
Phone / Fax: +7 8312 362330 / +7 8312 362311
E-mail: nice@k8.innov.ru
The project receiver Municipal enerprise "Thermal Networks", Balakhna, Nizhny Novgorod Region
The project developer Nizhny Novgorod Regional Center of Energy Saving (NICE)
The project objectives While implementation of the investment project the following main objectives are reached:
  • Failure of services of joint-stock company "Volga" and construction of new automized gas boilers in gasified microdistricts of the town of Balakhna, which will allow to considerably reduce the cost price of the thermal energy;
  • Construction new and reconstruction existing of Central heat points along with installation of the system of telemechanics and scheduling;
  • Reconstruction of heat networks and distribution of the load between boiler-houses with the purposes of reduction of the length of pipelines and reduction of losses of heat in order to transport and distribute heat-energy;
  • Optimization of regimes of operations of the system of heat-supply at the expense of introduction of means of automatic regulation and control;
  • Reduction of unproductive losses of heat in order to transport and distribute heat-energy between the consumers by means of isolation of steam lines by modern materials and installation of devices of account and the systems of regulation of heat consumption;
  • Improvement of ecological conditions in the town and decrease of emissions of substances destroying the ozone layer to the atmosphere by means of the perfect boiler equipment.
Summary The system of heat-supply is morally and physically obsolete; the absence of means of modernization of thermal networks results in the wear of the equipment, decrease of its main characteristics and as a result in the increase of the working costs of service; the absence of means of control and account of heat-energy for the consumers does not allow to make estimation of the actual amount of heat supplied and to order the payment of consumed heat-energy. All above-stated factors result in the rise of price of the cost of heat-energy and the necessity of constant financial injections to the system. At present the heat-supply of microdistricts "Grill", "Pravdinsk"and "Reid" is provided from NIGRES by the pipeline of 500 mm in diameter and the length of 5 kms via the heat point of joint-stock company "Volga". The total load of the Central heat-point of "Volga" is 72.479 MWT (62.3 GCal/hr), including: On the needs of industry - 24.2 Gcal/hr, on microdistrict of "Grill" - 16.032 Gcal/hr, on microdistrict of "Pravdinsk" - 15.997 GCal/hr, on microdistrict "Reid" - 2.863 GCal/hr. The system of heat-supply of microdistricts - open, two-piped. The length of heat-lines - 16.25 kms. 30 % of heat-lines are in poor condition . Four kilometers of heat lines are maintained with infringed heat insulation. The annual consumption of heat-energy for 1998 is 197.744 thousand Gcal/year including irrational use of the heat-carrier in connection with the large extent and impossibility of regulation of the open system of heat-supply - 92.704 thousand Gcal/year. 28 houses of "Grill" and "Reid" microdistricts are working for drain. The consumers of thermal energy:
  • residential sector (423 apartment houses);
  • welfare projects (10 objects). Thermal networks are morally and physically obsolete.

The temperature regime is 105-70 degrees. The thermal losses in networks are 92704 Gcal/year.

Results of the products

 The implementation of the present investment offer will ensure the following advantages:
  • reduction of costs of heat energy;
  • increase of reliability of hea supply of budget and municipal sphere;
  • improvement of ecological situation in microdistrict.

The project will allow:

  • to demonstrate an economic efficiency of ecologically oriented projects;
  • to establish partners relations between Russian and international organizations and companies in order to implement resource-saving and ecological programs.

The degree of the project readiness

 Stage of development of the feasibility report.

Calculation of additional costs of the project "The increase of efficiency of use of thermal energy in the town of Balakhna of Nizhny Novgorod Region"

The costs of realization of the base-line project

  1 year 2 year 3 year .... 10 year Total: Discounted
The costs ($)              
capital expenditures of the project              
current expenditures 1840 1840 1840 1840 1840 18400 10 400
Total: 1840 1840 1840 1840 1840 18400 10 400

Green-house gases emissions of the base-line project (in an equivalent of CO2, tons)

  1 year 2 year 3 year .... 10 year Total:
CO2 36427 36427 36427 36427 36427 364270
CH4            
N2O, PFC, HFC, H6S            
Total (CO2 equivalent):           364270

The costs of realization of joint implementation project

  1 year 2 year 3 year .... 10 year Total: Discounted
The costs ($)              
capital expenditures of the project 4675,2         4675,2 4675,2
current expenditures   1115 1115 1115 1115 11 150 6 300
Total: 5790,2 1115 1115 1115 1115 15 825,2 10 975,2

Green-house gases emissions of the joint implementation project (in the equivalent of CO2, tons)

  1 year 2 year 3 year .... 10 year Total:
CO2 11632 23 265 23 265 23 265 23 265 221 014
CH4            
N2O, PFC, HFC, H6S            
Total (CO2 equivalent):           221 014


The aggregate table
    Joint implementation project Base-line project Difference
The investment costs during the term of life of the project (discounted) $ 4 675 200 0 4 675 200
Current expenditures during the term of life of the project (discounted) $ 6 300 000 10 400 000 -4 100 000
Total $ 10 975 200 10 400 000 575 200
Green house gases emissions during the term of life of the project (10 years) equivalent CO2 221 014 364 270 -143 256
Minimum price for 1 ton of CO2 $/tons CO2     2,67