Municipal energy planning in Poland - KAPE, Poland

Summary
The project 'Energy planning at municipal level - support to decision-makers' aimed to support the implementation of energy planning in communities in accordance with the requirements of the Polish Energy Law. The specific goals of the project were to explain the political, social and technical issues connected with energy planning at the local level, and to prepare a set of materials to assist authorities in making relevant decisions.

The project included a stakeholder analysis and the elaboration of a toolbox for energy planning in selected municipalities. Main issues for all three components were training, the transfer of knowledge and the dissemination of experience and managerial know-how.

Three municipalities were selected during three phases to be used as model municipalities: Bytow, in the northern part of Poland; Legionowo, a suburb close to Warsaw; and Myszkow, in the southern part of Poland.

Energy planning was presented as a means to balance short-term and long-term development goals concerning economic efficiency, environmental sustainability and reliability of supply. The means to achieve these ends are efficiency, diversification and flexibility at less cost.

End-user area	Legal initiatives (municipal regulations, directives, etc) Planning issues Sustainable communities
Target audience	Decision makers Financial institutions Local and regional authorities Utilities
Technical scope	CHP District Heating Energy efficiency Heating

Context
In most CEEC countries (Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania and Slovakia), energy policy is based on the principles of sustainable development and security of supply. The legislative framework focuses mainly on

• Organisation of energy markets and formulation of rules defining business activities in the sector
• Energy sector restructuring
• Reorganisation and privatisation
• Increased energy efficiency

Generally, the CEE countries have developed a relatively extensive energy legislation framework with a sectoral approach. Most countries have developed an overall Energy Act, providing the base for sectoral legislation.

Energy planning is a focal instrument, aiming to enable the development and operation of the energy sector at least cost, whilst maintaining high reliability of energy supply and a minimum impact on the environment. Efficient planning allows optimisation of expenditure at the national level and the introduction of competition between different energy utilities at the planning level.

Energy planning comprises three aspects: reliability of supply, environmental sustainability and economic efficiency. It's important to ensure the balance of the three. Planning should result in common understanding of the present situation, future possibilities and the consequences of their implementation for all involved parties.

Objectives
The project's main aim was to support the implementation of energy planning in communities in accordance with the Polish Energy Law. The specific goals of the project were to explain the political, social and technical issues connected with energy planning at the local level, and to prepare a set of materials to help the authorities make decisions concerning these processes.

Process
The project was financed by the Government of Denmark under an agreement between the Danish Ministry of Environment and Energy and the State Office for Housing and Urban Development. The main contractor was the Danish company COWI - Consulting Engineers and Planners AS, the subcontractors being PEPRC - Power and Environment Protection Research Centre of Warsaw University of Technology and COWI Polska. At the same time KAPE - Polish National Energy Conservation Agency set up the Energy Planning Secretariat (EPS).

The main aim of the EPS is to develop the conditions for the realisation of a national energy planning training scheme and the dissemination of the methodologies and experience gained during the course of the main project. The project was coordinated by a Steering Committee, with representation from the Danish Energy Agency, the Bureau for Housing and Urban Development and the Ministry of Economy, Energy Department. The specific goals of the project were to explain the political, social and technical issues connected with energy planning at the local level, and to prepare a set of materials to assist authorities in making relevant decisions.

The project included a stakeholder analysis and the elaboration of a toolbox for energy planning in selected municipalities. Main issues for all three components were training, the transfer of knowledge and the dissemination of experience and managerial know-how.

Three municipalities were selected during three phases to be used as model municipalities: Bytow, in the northern part of Poland; Legionowo, a suburb close to Warsaw; and Myszkow, in the southern part of Poland.

Energy planning was presented as a means to balance short-term and long-term development goals concerning economic efficiency, environmental sustainability and reliability of supply. The means to achieve these ends are efficiency, diversification and flexibility at less cost.

The following conclusions were also registered:

• At the local level, there are problems related to the experience of preparing development plans regarding gas and heat supply
• Energy planning and implementation measures are a low priority in terms of budget allocation due to an absence of time limits and sanctions.
• Data collection has been very time consuming.

In relation to the three model municipalities the following measures were recommended:

• Planning processes initiated during the project should continue and should be followed up in all three municipalities
• Master plans for the district heating systems should be prepared in all three municipalities
• In Bytow, the possibility of establishing a biomass-fired boiler house should be investigated
• In Legionowo, the possibility of establishing a major natural gas-fired CHP plant of the combined cycle type should be investigated
• In Myszkow, an energy audit of the local paper mill should be carried out and the possibility of increasing the heat supply, by linking in an existing factory steam turbine, should be investigated.

Actions
- Workshop
- Market Analysis
- Technical Handbook

Financial resources and partners
Information not available.

Results
The DH company in Legionowo and the paper mill in Myszkow were both interested in a continuation of the cooperation with the project team and the respective municipalities. Applications for continued support were submitted to the Danish Energy Agency. The support was granted and the project team carried out the following projects:

• CHP plant in Legionowo: the project involves the preparation of a master plan for the DH system in Legionowo, including a more detailed analysis of the possibilities of establishing a major natural gas fired CHP plant. An important element in the feasibility study is a market analysis of the electricity market in Poland. The conditions for selling electricity to the grid will be clarified and the possibilities of joint implementation financing investigated. The project was initiated in March 2002. A status report on the existing situation for the DH system has been prepared and includes a hydraulic analysis of the network. Presently, a detailed analysis of the CHP option is being carried out.
• The Myszkow energy audit project comprises a detailed energy audit of the paper mill. The intention is to investigate the potential to optimise paper production and the efficiency of electricity and heat production and use. The re-engineering necessary to improve future CHP schemes and the efficiency of major heat consuming processes at the factory will be identified. Analyses will be made of the potential consequences of maximising the heat supply from the mill to the extent of meeting up to 90-95% of the district heating demand in Myszkow.

Lessons learned and replication potential
The main project 'Energy planning at municipal level - support to decision-makers' and the two follow-up projects in Legionowo and Myszkow have resulted in the creation of a group of Polish municipalities who are experienced in implementing planning procedure and a replicable toolbox useful for energy planning in other municipalities. The energy planning project in Poland is presented at www.kape.gov.pl/EN/Programmes/ Programmes_Bilateral/SPE/index.phtml

At the local level, there are problems related to the experience of preparing development plans regarding gas and heat supply. An absence of time limits and sanctions means that the process of undertaking energy planning and implementing energy improvement have low priority in terms of municipal budget. The data collection has also been very time consuming.

A similar approach could be possible in other areas and in other countries, provided that the involvement of different actors for the project can be assured. Funding, expert consultancy and active role of local actors /municipalities must be guaranteed.

Other contacts
www.cowi.dk