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Energia - Środowisko - Infrastruktura
Dodatek promocyjno-reklamowy do "RZECZPOSPOLITEJ".
21 marca 2006 r.
Cohesion Fund
We use EU funds
The dilemma which faces heating companies at the beginning of the 21st is how to supply heat more efficiently, economically and cheaply. The competitive market of energy sources makes it necessary for every company to find its own answer to this question.
In order to face the competition and provide high-quality services, a few years ago Miejskie Przedsiębiorstwo Energetyki Cieplnej SA launched comprehensive modernization of Kraków's heating system bringing it up to European standards. Clean production certificates ISO 9001 and ISO 14001 and the "Pantheon of Polish Ecology" prize prove that the company pursues sustainable development with a view to minimizing human interference in the natural environment.
MPEC supplies heating to households, companies and institutions in Kraków and Skawiny using the most modern technologies. However, energy is used not only for heating but also for domestic hot water production, air-conditioning, ventilation and other specific technological purposes, such as, for instance, heating up football fields. The most important of these services is central heating. Over 60% of households in Krakow is serviced by the district heating system and domestic hot water is supplied to an increasing number of buildings.
In accordance with its investment policy, MPEC SA does not use subsidies, save for eco-programmes. The company is continuing modernization launched in the last decade of the 20th century. Although it has already consumed substantial resources and will require further considerable outlays (the company incurred a loan from the World Bank and uses own financial resources), it brings desired results. Modernization of a heat exchanger system, installation of modern heat distribution subsystems and ongoing replacement of aged pipes with pre-isolated pipes brings substantial energy savings. Application of pre-isolated piping to heat distribution, introduction of a network ring circuit and capacity development in some sections of the network enhances the quality of services offered. The organizational and technical actions of MPEC translate into its services which should be of highest quality. Like any other company which offers a product for sale, MPEC seeks to satisfy the growing expectations of its existing customers and win new ones. Although investors are free to choose between different sources of heat, such as gas, electricity or oil, every year the company acquires new large customers. Public facilities such as hospitals, office buildings, commercial centres, hypermarkets or even historic buildings are serviced by the district heating system. By comparing costs of heat production in different energy sources, investors come to realize that heat supplied to households by the district heating system is cheap. And, in fact, the only energy source whose prices were below inflation index for the past 5 years in the Kraków agglomeration is heating produced by MPEC.
It is important for the company to be perceived as a reliable partner who protects the environment not only by saving energy but primarily by imroving air quality in Kraków. That is why, the company participates in various programmes for low emission reduction. Thanks to elimination of hundreds of coal boilers, every year MPEC uses less coal. If we imagine a 35 km-long cargo train filled with coal, this would precisely reflect the annual the reduction of coal consumption by the company. Only a decade ago, Kraków was covered by a dense network of fossil fuel-boilers which every year emitted thousands of tonnes of harmful substances, mainly sulphur dioxide, nitrogen monoxide and ashes. Now, low emission, which is harmful to human health and historic buildings, will be significantly reduced. This is thanks to, i.a., MPEC which liquated 400 coal-fired boilers. Currently, the company uses only gas and oil boilers and lends financial support to other companies for elimination of their coal boilers.
Through our activities we create an image of a company which seeks to operate efficiently in a competitive market and at the same time pursues its mission which consists in provision of comprehensive and high-quality services and environmental protection. To ensure adequate level of services it is necessary to develop modern organizational and information solutions. MPEC has already implemented an integrated management system designed for heating companies. The system is used to facilitate the company's finance-accountant activities, such as invoicing and billing, and complies with the Energy Law. Modern technology used in the system ensures data security and enhances the company's continuous development. The technical part of the information system, based on the TAC Vista application, controls and monitors performance of Kraków's heating system.
 - After ten years of comprehensive modernization, says Marek Jaglarz, Chaiman of the Board - we have achieved performance parameters are the proof of effectiveness of Kraków's heating system. During the heating period heating water loss fell by 40% and heat loss due to transmission by half. We have also gained a lot of experience necessary to pursue financing sources for system modernization. The company financed its investments with own resources, incurred a loan from the World Bank and used assistance funding for environmental protection.
Modernization of a system which has been in operation for several decades is a continuous process. Introduction of modern technological solutions and replacement of aged traditional facilities requires well-thought over and consistent actions as well as substantial outlays. Further system upgrade will be financed with the company's own resources and the EU grant which was awarded to the company under the Cohesion Fund. Thanks to EU assistance the company will launch the "Heating system in Kraków" project. Preparations for this project begun in 2002. On 13 August 2004, we submitted application for EU assistance funding. On 9 December 2004, the European Commission awarded a grant aid to the project for modernization of Krakow's heating system. The European Commission's decision, however, includes certain funding obligations. Under the decision, the maximal eligible project expenditure is fixed at 75 513 100 euros; the EU assistance funding amounts to 72%. If the later assessment proves that income generated by the project may be subject to a variation of 10% or more in relation to the initial assessment, the level of EU funding will be reanalysed and corrected. The maximum aid under the Cohesion Fund amounts to 54 369 432 euros.
The project is divided into two main parts. The first part involves continuation of upgrade of the high-parameter heating network including replacement of 99 km of aged traditional piping. Modernization works will be carried out in Kraków and Skawina in various sections of the existing heat distribution network. The second part of the project involves modernization of low-parameter heat network and comprises comprehensive replacement of heating substations. In total, we will install 535 new compact heating substations, including 210 two functional heating subsystems (for central heating and domestic water heating). All newly installed substations will be equipped with weather automatics. We will replace mainly subsystems located in the "trouble spots" of the city. Additionally, we will replace 33 km of traditional low-parameter heating network with new pre-isolated pipes.
This costly investment will bring measurable benefits for both city inhabitants and the company. Heat consumption will be reduced by around 157 000 GJ, loss of demineralised water in the heating system will fall by around 10% and equivalent emission will be lower by 1676.3 Mg SO2/year. Moreover, the system reliability will increase by around 40%.
In parallel to EU supported investments, MPEC will implement investments financed with its own resources. They include i.a.: liquidation of 32 coal boilers by connecting users to the district heating system and producing domestic hot water for the existing and new customers, liquidation of 2000 carbon stoves by connecting 30 stove-heated buildings to the district heating system.
 The EU co-financed project for air quality improvement is a continuation of earlier pro-ecological actions undertaken by the company. In 1992-1998, MEPC implemented a Programme for Reduction of Low Emission from combustion of coal and coke in boilers and ceramic household stoves. The programme was financed from a World Bank loan and a grant of 10 000 000 dollars awarded by the United States Department of Energy. It involved replacement of compensators in the heating system, to reduce heat and heating water loss, and liquidation of several hundreds of inefficient coal boilers. Between ten and twenty coal boilers located in the city centre were replaced with gas boilers and several thousand ceramic stoves were substituted by electrical heating. This led to reduction in emissions and treatment of clinker and ashes. As well as that, installation of several exchangers with weather automatics reduced heat and heating water loss in central heating facilities.
MPEC in Kraków is a modern company applying innovative technical, technological and organizational solutions. Market research shows that the quality of our services meets our customers' expectations. City residents are happy about modernization of the district heating system and elimination of low emission. They appreciate that MEPC's efforts aimed at ensuring a reliable system for heat and domestic hot water supply not only during the heating period but throughout the whole year. They notice that innovative facilities which adjust heat delivery to weather conditions lowers heating costs. The company continues to expand its range of services. A few years ago, we launched production of compact heating substations for own use and for sale. Currently, we are promoting use of domestic hot water through various investments. We also seek to save heat energy through, for example, introduction of the ESCO formula in thermomodernization works. We are optimistically looking into the future. The EU funding, together with our own resources and commercial loans, will help to seed up modernization of the Kraków's heating system will allow us to save heat energy and heating water and reduce air pollution.
www.mpec.krakow.pl
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