Preliminary business plan: District Heating Company for the city of Handlova, Slovakia
The city of Handlova, Slovakia, needs to replace its district heating system, which is old, unreliable, and expensive to maintain. The current plant is owned by a state-run utility, the Slovensky Energeticky Podnik (SEP). The plan is to privatize the heating plant, acquire capital to rehabilitate the central plant (converting it to a cogeneration facility), install a new hot-water distribution system, and implement an extensive energy efficiency effort in the residential buildings on the system. System capacity is 100 MWt, with annual heat sales estimated to be 450,000 gigajoules per year (GJ/yr). The capital necessary for system improvements is estimated to be 465 million Slovakian Krowns (SK) (in 1997 price levels). The total market value of existing fixed assets that will survive the rehabilitation effort as part of the new systems is estimated at 342 million SK. There has been substantial analysis and preparation for this activity, which is documented in demand-side and supply-side technical and economic analyses, an integrated demand/supply report, and this preliminary business plan. The preparation includes investigation of ownership, management, and technology alternatives; estimation of the market value of existing assets and investment requirements; and forecasting of future cash flows. These preliminary projections indicate that the cost of heating from the new system will be reasonable from both a cost per unit of energy basis (SK/GJ) and, form the perspective of an apartment dweller in Handlova, on a total cost per year basis. Delivering heat at the projected cost will, however, require a substantial change in the way that the heating plant is run, with proportionally very large reductions in labor, operations and maintenance, and overhead charges. In addition, there will need to be significant revenues from the sale of electricity to the national grid.
- Research Organization:
- Pacific Northwest National Lab. (PNNL), Richland, WA (United States); TECOGEN, Inc., Waltham, MA (United States); EGU, Bratislava (Slovakia)
- Sponsoring Organization:
- Agency for International Development, Washington, DC (United States)
- DOE Contract Number:
- AC06-76RL01830
- OSTI ID:
- 388135
- Report Number(s):
- PNNL-11204; ON: DE96050632
- Resource Relation:
- Other Information: PBD: Jun 1996
- Country of Publication:
- United States
- Language:
- English
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