Main financial instruments: grants and loans

Project "Sustainable development of water resources in the Republic of Karelia"

Duration: 25.01.2013 – 25.12.2014

Budget: 625 901 EUR, grant of CBC ENPI Karelia – 540 901 EUR

Partners:

  • Oy Vesirakentaja (Lead Partner)
  • ANO Energy Efficiency Centre
  • Closed JSC ”Nord Hydro”                  

Brief description of the Action:

The Karelian electricity system is a deficit one receiving the required capacities from Kola nuclear power plant. At present the republican and local authorities are facing the need to consider the installation of turbines for the electricity generation at the existing municipal boiler plants running on coal and heavy oil for reducing the electricity tariff burden on local budgets, especially when it comes to remote localities with no acccess to the electricity transmission grid. However, the installation of such turbines will be resulting in the highly increased capacity of coal and heavy oil combustion at the boiler plants and by thus causing the increased CO2 emissions in the ambient air from the municipal boiler plants. At the moment the electricity in small and remote localities is being generated by the old and inefficient diesel generator installations requiring urgent rehabilitation. At the same time, Karelian municipalities are having the significant own electricity generation potential from the locally available hydro power resources. The proposed action is aiming at improvement of the water resource utilization in Karelian municipalities by way of rehabilitating/constructing the small-scale hydro power plants in remote Karelian localities.

Description of the target groups:

  • Representatives of regional executive power authorities, namely the State Committee of the Republic of Karelia on Refiorming Communal Services (50 officers), State Committee of the Republic of Karelia on Energy and Tariffs (30 officers) and Ministry of Economic development of the Republic of Karelia (60 officers).
  • Representatives of Karelian municipal administrations (19 municipalities in total).
  • Local energy companies being responsible for the electricity supply in Karelian municipalities.

Overall objective: Economic development of the Republic of Karelia by means of improvement of water resource utilization.

Specific objective: Creation of preconditions for the development of small hydro power plants in remote districts of the Republic of Karelia.

Main activities:

WP1: General assessment of the small hydro power sector in the Republic of Karelia

1.1. Analysis of actual electricity demand in smaller distant localities

1.2. Identification of the existing small hydro power plants suitable for rehabilitation

1.3. Selection of 1-2 pilot objects

1.4 Training seminar in Petrozavodsk

WP2 Development of pre-feasibility study

2.1. Elaboration of recommendations for technical and financial viability

2.2. Development of pre-investment documentation

2.3 Analysis of possibilities of exporting environmentally friendly electricity from the pilot sites to Finland

WP3 Investment co-financing

3.1. Analysis of international co-financing opportunities

3.2. Local involvement (working meetings)

3.3. Investors' workshop

WP4 Implementation of a pilot project

4.1. Preparation and conduction of tenders

4.2. Development of the set of design and survey documentation (PIR)

WP5 Education in fuel substitution and efficient utilization of water resources

5.1 Training workshops for engineers and technicians of municipal utility companies

5.2. Training workshop for municipal authorities responsible for communal services and environment

5.3 Study tours

WP6 Dissemination and multiplication

6.1. Web-pages (RUS, FIN, ENG) development and maintenance

6.2. Publications and dissemination of best practices obtained during the project implementation

6.3. Arrangement of the project's kick-off and final seminars

WP7 Project management and promotion

7.1. Preparation of project reports, including audit reports in due course

7.2. Promotion of project activities and results (project visibility)

Main outputs:  

  1. Report of general assessment of the small hydro power sector in the Republic of Karelia carried out.
  2. Pre-feasibility study for the selected object elaborated
  3. Co-financing models for the rehabilitation of small hydro power plants introduced
  4. Pilot project implemented
  5. Local and regional authorities and energy companies have got training documentation in fuel substitution and efficient utilization of water resources
  6. Seminars and training workshops for local engineers of muncipal utility companies and muncipal authorities.
  7. Design and survey documentation (PIR)
  8. Management and promotion of the project is successfully realized

 

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