District Energy - 2006 First Quarter

Industry
News

Euroheat & Power Publishes
District Energy Survey

Euroheat & Power has launched the 2005 edition of its biannual publication District Heating and Cooling – Country by Country Survey. In addition to featuring European countries, this year’s publication includes a chapter on Korea. Among the survey’s major findings is that the enlargement of the European Union has strengthened the district heating industry’s position, which now accounts for 10 percent of total European heat demand and serves as a major driver for the expansion of combined heat and power generation. District cooling is emerging as an energy-efficient tool for covering the steadily increasing demand for comfort cooling in Europe. It continues fast development in both northern and southern European countries. To learn more or order copies of the study, go to www.euroheat.org.

Pepco Energy Services Gets
North Carolina Contract

Pepco Energy Services, a subsidiary of Pepco Holdings Inc., has been selected by the North Carolina Department of Administration to implement a comprehensive energy-efficiency and guaranteed-savings contract. The project, which will provide the state with more than $25 million in guaranteed savings over the 12-year term, calls for Pepco Energy Services to improve the energy efficiency of numerous state government buildings in Raleigh. As part of the contract, the company will re-commission and expand the downtown district cooling system; provide improvements to heating, ventilating and air-conditioning systems and controls; install energy-efficient lighting systems; and implement water conservation measures to many government buildings in the state capitol.

Since 1995, Pepco Energy Services has developed, implemented and financed more than $500 million of energy savings performance contracts for more than 200 customers.

Lithuania’s District
Heating Association

Did you know that the district heating industry in Lithuania has its own organization? The Lithuanian District Heating Association (LSTA), formed in 1998, represents the interests of district heating companies, organizations and others active in the country’s heating sector. It is currently comprised of 35 members, including 25 district heating producers that supply about 92 percent of Lithuania’s total district heating output, plus 10 other companies closely linked to the industry. In 2002, the district heating companies reported a total of approximately 5,800 employees, 9,663 GWh of heat production, and 1,380 GWh of power generation.

Bordering on the Baltic Sea, Lithuania was the first country to declare its independence from the former Soviet Union. It joined NATO and the European Union in 2004.

LSTA may be reached via its Web site at www.lsta.lt or by calling +370-5-2356045.

Butler University Taps
Honeywell for Upgrade

Honeywell has signed an agreement for a $4.3 million energy savings performance contract with Butler University in Indianapolis to renovate heating systems in buildings throughout the campus. The upgrades are the latest in more than three decades’ worth of work between the company and the university. They are expected to save Butler $275,000 in annual energy costs and improve comfort for more than 4,500 students and faculty on campus.

In addition, Honeywell will replace the university’s central steam boilers with seven high-efficiency, small-packaged hot water boilers located in the campus’s central plant. The university formerly relied on three boilers – small, medium and large – to heat the campus at different times of the year. When problems developed with the small and medium units, the university had to employ the large boiler year-round to bear the brunt of the load – leaving the system without a backup if the large boiler

failed. The new smaller boilers will be used year-round and require significantly less gas than the older equipment. The savings resulting from the new installation eight-year period. The new boilers were expected to begin operating by December 2005.

Honeywell’s previous projects for Butler University include installing a temperature control system and centralized chilled-water system and providing building automation and lighting upgrades, additional climate control services, and mechanical and building automation maintenance.

Finnish District Heating
Stats Released

Finnish Energy Industries recently released its 2004 report on district heating in Finland. According to the group’s findings, a total of 29. 4 TWh of district heating services were sold that year, including to nearly 2. 5 million apartment residents. District heating accounted for 49 percent of the country’s space heating market share, with electricity and light fuel oil each representing about 17 percent of heating supply sources. The majority of district heating produced – 75.8 percent – was cogenerated; that figure has remained fairly steady (between approximately 75 percent and 79 percent) for at least 10 years, before which it rose from 56 percent in 1985.

In the 2004 findings, Finnish district heating and cogeneration operations relied primarily on natural gas ( 38. 7 percent), coal ( 25. 9 percent) and peat ( 18. 5 percent) for fuel, also tapping wood or wood residues ( 9. 9 percent), fuel oil ( 4. 5 percent) and other sources. That picture has changed significantly from the late 1970s when fuel oil served as the primary fuel (60 percent), with natural gas and peat each accounting for less than 5 percent of the fuel and wood or wood residues not yet in significant use.