Greenfield has developed a preliminary heat sales tariff for the London Thames Gateway Heat Network CPH DH scheme. The heat sales tariff has been considered from two angles; the seller’s cost background and the buyer’s alternatives (market). In addition, the analysis also included a peer comparison to some DH heat tariffs currently applied elsewhere.

Kiev CHP cost allocation and heat tariffs

The assignment for Kievenergo, Ukraine, included introducing  a new methodology  for allocating the CHP production costs for heat and power, respectively and developing of a new heat sales tariff based on the allocation. The main objectives were to prevent cross-subsidizing between heat and electricity business and to provide justified incentives for expansion of CHP DH by fair allocation of efficiency gains in co-generation.

Mr. Lehdonvirta was responsible for planning and managing the tariff development, providing the know-how on CHP cost allocation and on formulating a two-tier cost based tariff.

Financial analysis and improvement of tariff system in Jelgava (Latvia)

Work included financial analysis of the Jelgava DH utility and introduction of a cost-based two-tier tariff, based on the financial analysis.

As the DH Tariff Specialist Mr. Lehdonvirta carried out an analysis of the DH utility company’s financial situation. He also analyzed the cost background and clientele. Furthermore he estimated the future outlook for revenues, costs and investments after developing a cost based two-tier tariff system.

The development work was commissioned by SELCHP (1996) to identify heat loads, carry out the network and DH system design and to provide a feasibility assessment on commencing heat supply from the SELCHP plant. The work also included performance measurements at the plant to verify the CHP operational parameters and capacities.

CHP DH System Evaluation and Further Development (EnviroEnergy (Nottingham) Ltd)

The work included analyzing the existing system and making recommendations on system improvements. The system was based on direct connection from the waste incinerator through the London Road energy transfer station down to customers.

CHP DH Scheme Development in North London (Waltham Forest)

The work included technical design and economical analysis of several options and phases to establish a Waste-to-Energy CHP based heat distribution business. Mr. Lehdonvirta’s responsibilities were economic evaluations, technical design and project management.

Mr. Lehdonvirta carried out a feasibility study on converting the steam based heating system and installing gas fired CHP-engines to replace gas boilers for the energy needs of the hospital. The scope of work included technical design, economic evaluation and project management.

(1996-1997, Electrowatt-Ekono Ltd)

The government of Finland financed the Klaipeda DH Master Plan to facilitate loan financing from the World Bank (WB) or the European Bank for Reconstruction and Development (EBRD), for the renovation of the municipal energy system.

Klaipedos energija AB, Klaipeda district heating company, is one of the oldest Lithuanian energy companies and the largest producer and supplier of district heat in Western Lithuania. Its history dates back to the year 1929, when on the riverside of Dane a new coal burning power plant was built. June 17, 1929 is regarded as the establishment date of the present Klaipedos energija AB.

As a Project Supervisor Mr. Lehdonvirta was responsible for the planning of the master plan work, ensuring close co-operation with the local recipient and Development Financiers involved. As a DH specialist he participated in technical design, assessed energy savings and the economic analyses for the investment plan.

Several CHP DH Rehabilitation projects in Poland  

(1990´s, Electrowatt-Ekono Ltd)

WB and ERBD have provided loans for several municipalities in Poland for infrastructure, energy efficiency and environmental rehabilitation projects. These projects included municipal CHP DH systems in the cities of Katowice, Krakow and Gdansk.

The consultant’s role in project development was typically to prepare a rehabilitation plan including technical design and a cost investment program for each of the municipal DH systems. Furthermore the work included a technical, economic and environmental analysis to assess the bankability.

As Project Manager Mr. Lehdonvirta was responsible for planning and supervision of the feasibility analysis work, ensuring close co-operation with local recipients and IFIs involved. As DH specialist Mr. Lehdonvirta participated technical design, assessed energy savings and carried out economic analysis to prepare the priority investment plan.

(1991-1993, Ekono Energy Ltd)

The project included the design and turn-key delivery of a 20 MW District Heating system for Donshan area in Taiyuan, Shaanxhi. The client was Taiyuan District Heating Utility. Mr.  Lehdonvirta as the Project Manager during the development phase was responsible for concept development, cost estimates, contracting and co-ordination of suppliers.

The delivery comprised of steam transmission line, steam/water heatexchanger station, hot water DH network and substations. It was completed with electrification, control and automation, installation and training of staff.

Assessment of a Concessional Credit Application for a CHP DH Modernization Project in Pucheng, Shanxhi (sub-consultant to Ramboll Ltd, 2007)

The proposed project consisted of construction and installation of a heat exchanger station, pipeline network with a total length of 10.7km (double pipe) and installation of 28 consumer substations.

The assignment carried out a feasibility assessment for the Ministry for Foreign Affairs of Finland of the proposed CHP DH investment. Simultaneously it was to be assessed if the project was eligible for the use of the Premixed Concessional Credit Scheme.

The Finnish Concessional Credit Scheme for developing countries was established by the Ministry for Foreign Affairs of Finland (MFA) in 1987. The objectives of the Scheme were both development related and commercial. Competitors were increasingly using ODA funds to promote exports to developing countries and Finland wanted to match this competition. The funding agency and sole operator of the concessional credit system was Finnish Export Credit Ltd (FEC) under the Ministry of Trade and Industry. The overall objective of the projects to be supported was, according to the Act, to promote economic development in developing countries.

Greenfield’s responsibility was the technical assessment of the project set-up including heat demand, production, distribution, technical functionality and operation and maintenance.

Appraisal of CHP DH projects proposed for the World Bank financing in Shandong province

(1996, Electrowatt-Ekono Ltd)

The proposed projects were located in the cities of Yantai, Jinan and Weihai in Shandong Province. Mr. Lehdonvirta was the Project Manager and carried out technical evaluations and further developments of the project proposals, based on feasibility studies prepared by local design institutes.

Project proposals included CHP heat generation, heat transmission and distribution systems as well as district cooling.