НИЙСЛЭЛИЙН ЗУРАГ ТӨСЛИЙН ХҮРЭЭЛЭН 2012 ОН

CONTENT

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5 CHALLENGES FACING

ULAANBAATAR –City data at a Glance (as of 2013) Area • Total Administrative Area : 4700 km2 • Divided in 9 districts /including three remote districts/ Population • Population: around 1.2 Million (about 45% of total population) • Population density: 40 persons/hectare Environment • Extremely cold climate: lowest temperature in winter -40°C • Annual average temperature: -2°C • Annual precipitation: about 250 mm • Situated at 1300m above the sea level • Duration of heating season: 8 month

Priority issues in urban development: • To improve infrastructure to meet the rapid population growth and increase the efficiency of services. • To improve the Ger-areas by provision of basic infrastructure such as water supply, sewerage, heat, road, etc. • To develop efficient Urban planning and Land management system. • To develop satellite towns to decrease the concentration in Ulaanbaatar. • To develop efficient transportation system.

THE POPULATION FORECAST AND HOUSING SITUATION IN ULAANBAATAR

2020 2030

The total population of Mongolia in 2020 3,16 Million

Of this in Ulaanbaatar region 1,53 Million /48,5%/

The total population of Mongolia in 2030 3,50 Million

Of this in Ulaanbaatar region 1,76 Million /50,3%/

• Currently about 40% of the population of Ulaanbaatar lives in apartment buildings connected to centralized grids.

• By increasing of housing supply it is planned to provide apartments to 58.5% of the population of Ulaanbaatar in 2020, and to 70.1% in 2030.

INCREASE OF HEAT ENERGY DEMAND

As of 2012 the total heat load of clients connected to the heating supply network is 1518 Gcal/h and taking into account the expected demand for 2014-2015 heating season the overall demand will surpass the installed capacity.

1190

1495 1301

1520

1951

2007 2013 2011 2009 2015

Heating supply strategy (Master plan until 2030)

• The existing heating supply capacity is not sufficient enough to meet the future demand and it is necessary to establish a new heating supply source (capacity expansion, construction of new Power plants).

• Due to the dilapidated facilities including distribution pipes to apartment buildings, a considerable amount of heat is lost during the distribution. Improvement of the existing distribution pipes is necessary.

• Due to poor insulation the apartment buildings have a huge heat loss. Energy conservation and energy efficiency measures should be promoted.

• Introduction of renewable energies (e.g. solar heating) • Revision of heating tariffs (e.g. consumption based and cost

recovery tariffs)

Thermo-technical retrofitting: 1. A related study has been conducted in the General Planning

Department of Ulaanbaatar city. 2. There are 1077 “Soviet” type pre-cast panel buildings in

Ulaanbaatar erected during the socialist time being occupied by 45462 households.

3. In case of the thermo-technical retrofitting of these buildings 31% of heat energy consumption could be saved amounting to 70.3 Gcal/h. It is equal to doubled capacity of Power plant No.2 or it would be enough to provide heat energy to 9400 households.

4. The required investment for this measure is around USD 300 Million.

5. GIZ pilot project implemented in 2007 has proven the heat energy conservation up to 50%.

The thermo-technical rehabilitation of existing apartment and public buildings

in Ulaanbaatar

(Project design document)

NEXUS Action of Ulaanbaatar city

Project goal:

• Demonstration of heat energy savings (upto 50%) through additional insulation of public and apartment buildings improving the living and working conditions and contributing to a resource efficient and environmentally friendly City as replicable model.

• Introduction of consumption based heating tariff as incentive for introduction of energy efficient technologies and changing of consumption behavior.

Project area and findings: • A typical apartment neighborhood (16th Micro district) in the

eastern part of the city), being dominated by pre-cast panel buildings (see Figure 1);

• disposes of currently 1465 households or 4972 residents; • two schools, one kindergarten and one orphanage buildings; • buildings are 17-32 years old, no significant overhauls in the past; • huge heat loss through the concrete panels, especially through

panel joints ; • unhealthy living condition in apartments; • heating undersupply due to the remote location from the power

plants.

Technical feasibility

Figure 1. The picture of 16th Khoroo dominated by 5 story panel buildings

Technical feasibility

Rehabilitation measures in public and apartment buildings: Main works: • insulation of external walls; • replacement of all windows; • renewal of main entrance area; • rehabilitation and insulation of roofs; • insulation of basement ceiling; • renewal of heating system.

Other works: -rehabilitation of stairs; -rehabilitation of power distribution network; -rehabilitation of sewage, cold and hot water pipes in basement floor; -rehabilitation of elevators (only in 9 story buildings); -rehabilitation of basement floor (creation of additional storage rooms); -external works which are essential for the functionality of the building.

Technical feasibility

Energy savings and CO2 reductions: In apartment buildings (1172 apartments):

• Actual heat energy consumption is around 300 kWh/a/m². • After the rehabilitation is around 145 kWh/a/m².

In non-apartment buildings: • Actual heat energy consumption is around 395 kWh/a/m².

• After the rehabilitation is around 170 kWh/a/m². Total CO2 reductions is around 3670 t per year.

Technical feasibility

Cost estimation of rehabilitation measures: • For main rehabilitation works (excluding the heating

system renovation) USD 6.7 Million. • The cost for rehabilitation measures for 1 square meter

apartment building USD 65.0 • The cost for rehabilitation measures for 1 square meter

non-apartment building USD 120.0

Technical feasibility

• In door temperature during the 4 coldest months of the year: 240C

• Heat energy consumption: 159 kWh/(m2 a)

• In door temperature during the 4 coldest months of the year: 160C

• Heat energy consumption: 350 kWh/(m2 a)

• 6 fold air exchange rate per hour

• Reducing energy consumption by more than half through thermo-technical retrofitting

After: Before:

Thermo-Technical Rehabilitation of Pre-cast Panel Building (GIZ pilot project in Ulaanbaatar, 2007)

Technical feasibility

• So called “Savings in unburned coal” should be made available as

direct reduction in energy production cost and should be assigned to rehabilitation measures for repayment of investment;

• Introduction of the betterment charge/fee to be paid by apartment owners who receive a direct benefit from this measure (payment period is 10-30 years);

• Introduction of a connection fee for developers which could be seen as compensation fee for consuming a part of the capacity which will be saved and made available through rehabilitation measures.

• The construction of a mansard roof could be seen as compensation of the gratis availability of ‘building ground’ on the roof by taking over some minimum work package rehabilitation cost such as new main entrance, staircase, external works, water/sanitation, electrical and safety measures (would reduce the investment costs of the minimum work package by some 25%).

• Possibility of getting a soft loan from German KfW and/ or ADB. • Other instruments (Clean Development Mechanism, Certified Emission

Reduction etc.)

Instruments to recover the costs of rehabilitation investments:

• This project should be used as a demonstration project for the introduction and testing of consumption based tariffs based on heating system metering and control of heat flow;

• Fixed lump-sum tariffs which are based on the heated floor space or heated volume are used in the housing and public building sector.

• Despite some tariff increases in last years the financial sustainability of the heat transmission and distribution companies continues to be weak.

• The road map for introduction of a city wide consumption based heating billing system would be:

Introduction of consumption based tariffs

The road map for introduction of a city wide consumption based heating billing system would be:

• Memorandum of Understanding between ERA, UB City, District Heating Company, HPUA and Housing Companies to implement the existing ERA regulation for consumption based billing in the housing sector.

• Definition of the roles, responsibilities and requirements for each stakeholder in terms of investment needs, operation and maintenance requirements, recuperation of the investment costs and capacity development.

• Acquisition of funds for investment and capacity development. • Simulation of consumption based heating tariffs for residential consumers and

analysis of the results regarding heat company revenues, heating bills and impacts on consumers.

• Review of heating tariff levels and structure. • Implementation of the respective physical works in designated clusters. • Capacity building for Housing Companies. • Introduction of comprehensive computer based billing systems by the Housing

Companies. • Information campaigns to educate consumers about impending changes and

use of metering and control equipment and the impact on consumption based heating bills.

Introduction of consumption based tariffs

Challenges facing: Support in term of: • Improvement of existing Laws and regulations (Energy Law,

Condominium Law etc.); • Endorsement and approval of Energy Conservation Law by

Parliament of Mongolia; • Financial support to apartment owners through issuing of

long term mortgage and home improvement loans, subsidies (State Housing Finance Corporation);

• Incorporating of the rehabilitations programs into the mid term “New development program” of Government of Mongolia;

• Other supports and incentives (Building code, standards, emission reduction revenues, tax, penalties etc. ).

Nexus activity of UB:

• Nexus Task Force and Project steering committee were created to ensure integrated urban planning (via Executive Order of the Mayor of UB from Sep.18, 2013);

• Two Nexus project proposals for cooperation with Nexus project have been submitted;

• Memorandum of Understanding (MoU) has been signed between Nexus project and UB city in Sep. 27, 2013;

• A project design document (Draft) has been elaborated (“Thermo-technical rehabilitation of public and apartment buildings in UB”)

Thank you for your attention!