Energy Efficiency Transformation in DH

Project Summary:

The project aimed to reduce dependency on gas imports with the use of district heating. Urban heating systems in the Moldova’s capitol, Chisinau, are woefully outdated, resulting in significant energy loss. This World Bank KGGTF-funded green growth implementation program supports transforming these systems from supply-driven setups to an efficient consumer-demand-based models using district heating. Grant money will help to develop a pilot program and the financial planning and analysis for individual heat substations, which will eventually allow for customized monitoring and heating of individual buildings, and a billing system that rewards energy-savings. District heating in Chisinau has the potential to reduce gas consumption by 20 percent, as well as tap renewable resources such as biofuel, improve the resiliency of urban infrastructure, and pave the way for other regions that strive to couple economic growth with energy efficiency and environmental sustainability.

List of Activities:

• Creating the basis of energy efficiency transformation through training on investment planning, development of a financing plan, and training on a demand driven district heating system.
• Transforming the customer interface through analysis of modern ICT solutions for an automated billing system, communication training, Development of customer grievance mechanisms.
• Empowering the consumers for energy efficiency.

Outcomes:

Output 1:

• Training and continuous support to Termoelectrica management on investment financing
• Comprehensive financing plan developed for implementation of IHSs
• Training organized on the operation of a demand driven district heating system

Output 2:

• A plan to develop the billing system of urban heating in Chisinau to be based on actual consumption of consumers
• Training organized on customer communication
• Improved customer grievance mechanisms in use in Termoelectrica and management regularly following customer communication

Output 3:

• Analytical report on cost effectiveness of four different scenarios produced
• Research report publicized on intervention impact on customer heat consumption

Outcomes:

The expected outcome of the operation was the transformation of Chisinau DH operation to a modern and energy efficient operation. The proposed activity supports the transformation along with other activities financed by WBG, the government of Moldova and the district heating operator, Termoelectrica. The project promoted inclusive growth, and provided an environmentally and socially beneficial solution for the heating needed in Chisinau. The development and analysis of a concept based on modern ICT solutions to incentivized consumers to energy efficiency provided further green growth business opportunities. The project provided a demonstration of urban heating transformation, the project also led to the implementation of a similar concept in other cities in the region.

Collaboration with K-Partners and Others:

• WBG internal partners: The activity is implemented in collaboration by the Energy and Social teams of the World Bank working in Moldova.
• External partners from Korea: Korean partners have not been identified so far, but there are opportunities to learn especially from the use of modern ICT tools in measurement and reporting of heat consumption by consumers. Korean Energy Management Corporation (KEMCO) may have valuable experience on this. In addition, there may be Korean energy efficiency consultants or ICT companies that provide ICT tools that enable further efficiency gains in the district heating system. 
• Other external partners: The main external partner is the Ministry of Economy in Moldova which governs the Chisinau district heating operator, Termoelectrica. The activity is also linked to activities where external partners include the energy regulator in Moldova, ANRE.