CEP - REC

CENTRAL EUROPEAN TRANSNATIONAL PROGRAM OF THE EUROPEAN UNION

„Introducing Regional European Strategies” project Province of Torino concept region, Italy

4.6.1. „HOW TO DO IT WELL” samples and guidelines

Prepared by Province of Torino and Environment Park Project leader: Silvio De Nigris, Barbara Lalicata and Giuseppe Dascola

Torino, September 2014

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Table of contents Table of contents ........................................................................................................................ 2 „HOW TO DO IT WELL” samples and guidelines................................................................... 3 1. INTRODUCTION, ENERGY OBJECTIVES AND TARGETS, DOMESTIC COMMITMENTS...................................................................................................................... 3 A) ITALIAN EXAMPLE FOR THE DEVELOPMENT OF A REGIONAL ENERGY SERVICE SUPPLY ................................................................................................................... 4 2. METHODOLOGY............................................................................................................. 4 3. ASSESSMENT OF THE ECONOMIC - FINANCIAL INCENTIVES ENVIRONMENT NECESSARY FOR THE REGIONAL ENERGY CONCEPT ................................................. 7 4. RECOMMENDATIONS....................................................................................................... 9

C. DISTRICT HEATING IN TURIN CONCEPT REGION ........................................... 14

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CEP - REC CENTRAL EUROPEAN TRANSNATIONAL PROGRAM OF THE EUROP EAN

UNION „Introducing Regional European Strategies” project

Province of Torino concept region, ITALY 4.6.1.

„HOW TO DO IT WELL” samples and guidelines 1. INTRODUCTION, ENERGY OBJECTIVES AND TARGETS, DOM ESTIC

COMMITMENTS If a chosen concept region of a certain country aims to create an integrated energy

management concept (for energy service based on the conditions of energy demand and supply), it is necessary to define the basic objective in the first place. In our case it is the introduction, spreading and maintaining of the utilisation of renewable energy sources and improvements of energy efficiency to the highest degree possible.

1.1 The commitment of Italy in the mid-term (until 2020) is: increasing the share of

renewable energy to 17.1% in the gross domestic energy consumption structure. This should be achieved in line with the Italian National Renewable Energy Utilisation Action Plan prepared and delivered for this purpose. to the EU Commission on the 28th of July 2010 [1] In the mid-term the simplest approach is to achieve the same ratio in the energy structure also in the concept region, even though specific studies should be carried out. In the long-term it is recommended to have a deep analysis of the demand and supply side of energy in order to fix specific local targets.

1.2 Concerning energy efficiency Italy is committed in the achievement of the 20% target

regarding the reduction of total energey consumption in comparison with stardard trend. Energy efficiency and renewavble energy sources targets will support the achievement of the 20% reduction of greenhouses gas emissions to 2020, compared to baseline data fixed for 1990. As such targets needs to be translated at regional level, it is important that specific analysis would be carried out in order to understad how much it is possible to overcome them in the regional energy concept.

1.3 Justification It is necessary to define the basic fundamental objectives and targets already at the

start because it limits the renewable energy source utilisation possibilities, the size of sustainable and realisable energy potentials and influences the adequacy or the need for enhancement of the state of existing energy transmission and energy distribution systems.

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A) ITALIAN EXAMPLE FOR THE DEVELOPMENT OF A REGIONA L ENERGY SERVICE SUPPLY

2. METHODOLOGY For the phase of the analysis of the existing situation a planning template can be

elaborated based on the earlier assessments of regional energy management conditions carried out in the CEP project. The template should contain:

2.1 assessment of the recent energy demand of the concept region (from the total energy consumption and the final direct consumption),

2.2 assessment of the structural distribution of the direct energy demand by main energy consuming sectors, and finally

2.3 assessment of the structural distribution of the different energy sources – also including renewable energy sources - used to satisfy the direct final energy demands. (The above outlined assessments are to be found in Report 3.1.31)

2.4 assessment of the potential conditions (theoretical, convertible, sustainable and realisable potentials) of the different local energy sources that is potential energy supply that may serve the energy demand of the concept region and beyond. This is described in Report 4.1.22.

2.5 After the regional energy balance (local deficit or surplus complemented with trade) has been derived from the energy demands and the energy source conditions in the regional energy economy the introduction of the different types of energy supply systems may follow that describes one after another mainly the traditional energy transmission and distribution networks (wires and pipelines), thus the natural gas network, the high pressure pipeline network of crude oil and crude oil derivative products, then the secondary energy networks gained by transformation, thus the electricity network (in order of the hierarchy of the voltage level) and the heat energy (district heating and cooling) supply systems. Besides these the recently developing decentralised electricity network system/smart grid initiatives incorporating mainly various renewable energies are also to be described. (This topic is set forth in Report 4.2.13)

2.6 The need of a common European economy – and within this energy cooperation initiated the need of establishing major international energy network systems and the therewith realisable energy trade between countries of better potential conditions (supply) and countries which have to import energy - mainly by the gradual construction of crude oil, natural gas and electricity transmission systems – already half a century ago. The potential conditions and long-term enhancement necessity of these are described in Report 3.2.34, in which also the demand for and practice of renewable energy transfer appear (e.g. solid biomass trade).

2.7 In order to assess recent conditions territorial data are indispensable, which are5: 1.) As for natural gas is concerned two sources of information are contacted:

1 3.1.3 Report on the regional energy demand of the concept region, Province of Torino, Italy. 2 4.1.2 Report on assessment of energy source potentials. 3 4.2.1 Energy supply analysis. 4 3.3.2 Report on energy transfer potentials. 5 The following information are driven from the report “Key issues on data sharing for sustainable energy in Province of Torino: Current local needs and situation” delivered by the Province of Torino itself in the EU project Data4Action co-financed by the European Commission through the “Intelligent Energy Europe (IEE)” programme (Grant agreement no. IEE/13/368/SI2.675578).

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1. Snam Rete Gas, which is the Transport grid manager and provide data of the natural gas transported at provincial/regional, detailed as follows: - - Automotive: final aggregate volumes delivered to retailers of natural gas for

vehicles; - - Distribution networks: final aggregate volumes delivered to gas grid

distribution networks; - - Industry: final aggregate volumes directly delivered to factories connected to

the National transport grid; - - Thermoelectric: final aggregate volumes delivered to power plants and

combined heat and power plants. 2. Local Gas grid Distributors, the list of which is taken from the website of the Authority for electricity and gas. Such data provider could deliver data for each Municipality broken down by domestic, commercial, industrial, electricity production and own consumption. Unfortunately, the distributors are likely to provide data according to their own way of aggregation, which is related to the tarif system (i.e. heating, cooking, hot domestic water, conditioning, technological uses, promiscuous) which is not helping to have a real break down for final sector of uses. In this cases estimates should be done. The combination of information gained can provide an overview of the consumption (before and after transformation) at Municipal level for such energy vector. The picture below describes the flows of information.

FLOWS OF INFORMATION FOR NATURAL GAS

2. As for electricity is concerned, 3 main sources of information are contacted:

- Terna SpA, which is the electricity transmission grid manager which provides information at provincial level, as the most detailed level of information. Terna SpA can provide data about the generation of electricity. Even on this point, the institution is delivering data at provincial level and not broken down at Municipal one. Furthermore the data provided are only for the generation of electricity, broken down for type of generation (thermoelectric, CHP, Hydro, Biomass, Solar and so on) but not on the primary energy used

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by the power plants (natural gas or renewable sources). The data are denied to privacy concerns, which are very questionable.

- Local electricity distributors, who can provide data about local consumptions broken down in sectors like domestic, tertiary, industry, agriculture and transport.

- In order to get information about electricity generation it is necessary to get directly in touch with the power plant managers. In Province of Torino hundreds of Power plants have been installed and several operators are managing those plants. The availability of data depends on their will to collaborate and on relationship established. Generally speaking the managers of Power plants are quite open to provide data and are not arguing with privacy concerns. Nevertheless few operators are not collaborating refusing to answer. Several of the existing power plants are Combined Heat and Power, so that the request of data is dealing with heating, too. A different point is Photovoltaic generation of electricity. Thanks to the web-tool atlasole, developed by the company GSE, the one in charge of managing feed in tarif, it is possible to get access to all information related to the PV installation in each Italian Municipality. The picture below describes the flows of information

FLOWS OF INFORMATION FOR ELECTRICITY CONSUMPTION

3. As for oil products is concerned, the data are not available at Municipal level and

it is very hard to find solutions able to cover the gap of information. Regarding such energy vectors (diesel, petrol, LPG, fuel oil) the Ministry of Economic Development is used to edit a trimester Bulletin where the sales of the oil products are recorded. The sales are released at provincial level and there is no other official statistic which breaks down the data at municipal level. According to the

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Ministerial Bulletin, it is possible for each oil product to get data detailed for sectors as the following table shows.

Oil Products Diesel Petrol LPG Fuel Oil Available break down

Heating Transport Agriculture

Transport Heating Transport

Heating

4. Thermal renewable energy sources are the weakest point of the process and it is

very hard to get official statistics, not only at local, but also at national level. Solar thermal energy, biomass and geothermal energy lack of standard information even though with some differences. Some information are provided by nationa industrial associations and by manager of subsidies schemes. Such information are usually not broken down at regional level and are often results of esteems. the only way to get detailed information at local level is to carry ou specific survey locally based6.

3. ASSESSMENT OF THE ECONOMIC - FINANCIAL INCENTIVE S

ENVIRONMENT NECESSARY FOR THE REGIONAL ENERGY CONCE PT For the preparation of the optimal regional energy utilisation concept that builds on the

regional energy demand and supply conditions and source potentials described in the situation assessment, it is indispensable to know the RES incentive/support system of the country in question and possibly other countries as well so as to propose and apply good practices.

3.1 It is expedient to identify and propose RES supply investments along a systemic economically soundly based approach, for which guidance has been prepared (Report 4.4.1).

3.2 It is also expedient to identify and assess RES investors along a systemic approach, for which also guidance has been prepared (Report 4.4.2).

3.3 So as to collect and assess information on RES incentive/support systems of various countries, a questionnaire and guidance (Guidance for Report 4.5.1) was prepared and then circulated among the various countries of the project partners.

3.4 Responses were processed and various RES incentive systems and instruments of 8 countries (and if information was received, particularly of their regions) were listed and compared resulting in Report 4.5.1. When outlining mid term RES investment

6 For all 3 types of thermal renewable energy sources, the Province of Torino carried out a specific survey in the framework of Renerfor project. Such survey was based on a very large panel of operators, who were asked to declare the number of unit sold year by year for each type of installation. In this way, it was possible to shape the local market and carry our esteems based on concrete values. Such estimates were compared with National statistics for a sensitivity analysis. Since it is not possible to carry out such specific survey every year a methodology for the updates of the data was defined. Such methodology fixed the replication of the survey every 5 years with the use of the results of the decennial census on the population which collects information about the use of RES and a lighter updates in the other years based on the esteems of share from national data. The full report is downloadable at the following address: http://www.provincia.torino.gov.it/ambiente/energia/progetti/renerfor_alcotra/strategia_europea.

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proposals (for Report 4.4.1 as described above), the RES incentives environment has also to be taken into account.

3.5 A summary report of recommendations to improve national and regional RES incentive systems was also prepared (Report 4.5.2.).

3.6 The last guidance titled „How to do it well” – also including Italian exemplary and innovative RES and energy efficiency utilisation related cases - summarises and gives recommendations related to an ideal regional RES concept elaboration process based on the CEP project (Guidance 4.6.1).

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4. RECOMMENDATIONS 4.0. Recommendation “zero” is a must: observe the rules of EU state aid guidelines

especially the new (2014) environmental and energy state aid guidelines7. 4.1. Recommendation 1. Aim for uniting the aspects of economic efficiency, effectiveness,

enforceability and political feasibility for the design of the incentive instrument/system to be applied.

I. Recommendations regarding national incentive systems 4.2. Recommendation 2. Aim for advanced market integration for close to mature RES

technologies. 4.2.1. Recommendation 2.1 Apply feed in premium (or tradable green certificate) system for

close to mature technologies rather than fix feed in tariffs. 4.2.2. Recommendation 2.2 Maintain a transparent, foreseeably flexible feed in tariff system

if feed in premium is not on the agenda to be introduced (and for less mature technologies).

4.2.3. Recommendation 2.3. RES-E should bear electricity system costs it causes and be rewarded for benefits.

4.3. Recommendation 3. Give specific regional feature to the national system, where justified (e.g. regional bonus for RES-E feed in tariffs in most disadvantaged regions).

4.4. Recommendation 4. Give larger attention and possibly design a systemic support approach for RES heat/cooling.

4.4.1. Recommendation 4.1 Apply a fix tariff operation support for RES-H as in the UK, or 4.4.2. Recommendation 4.2 Apply a purchase obligation on energy traders with a premium

system for RES-H. 4.4.3. Recommendation 4.3 Apply a RES-H obligation on new buildings and for major

refurbishments. 4.5. Recommendation 5. Provide R&D funds and other incentives for innovative new

technologies, energy systems (e.g. smart grids) and enterprises (e.g. registered power zones with higher rate of return for distribution network operators which apply innovative solutions for RES connections and integration as done in the UK).

II. Recommendations regarding regional incentive systems 4.6. Recommendation 6. Rely on local forces, regional planning capacities and establish a

department in the region (e.g. near the regional council) for designing the programmes/priorities for distributing EU funds for energy purposes and for making decisions on actual disbursement. Should the governance level be not in the position to manage Funds (i.e. Metropolitan Area or Union of Municipalities) it is recommended to play an important role, promoting the widespread diffusion of the information about the available financial support schemes, the search for local resources useful to the start-up of the RESs programs, the collection and coordination of the stakeholder interested but unable, for economical reasons or for lack of structure, to participate. This is essential also for the next two recommendations.

7 Guidelines on State aid for environmental protection and energy 2014-2020.

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4.7. Recommendation 7 Establish a regionally managed revolving fund – Development and Investment Organisation (DIO) for sustainable energy if there is a large enough potential pool of sustainable energy projects and if access to capital is an impediment8.

4.8. Recommendation 8 Give incentives to mobilise local forces to establish RES Energy Cooperatives.

8 See http://www.regions4greengrowth.eu/

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B. RENEWABLE ENERGY INITIATIVES IN TURIN (ITALY) CO NCEPT REGION: ENVIROMENT PARK AS AN EXAMPLE OF EXCELLENC E

Environment Park combines technological innovation and eco-efficiency, hosting several companies and Research Institutes. Buildings and equipment has been designed according to Bio Architectural standards, implementing technologies and solution dedicated to energy saving, renewable energy production and efficiency in water management system.

1.) “Franco Mana” hydroelectric power station. The Turin river Dora Riparia flows into Canale Meana in Corso Umbria and crosses through Environment Park before flowing back into the river as purified water at the new Parco Dora. A hydroelectric power station has then been designed and produced by Environment Park in the “Spina 3”, an area called “Valle Verde” (Green Valley). This is usually classified as a mini hydro system because its power is less than 1,000 kW (hydroelectric power on a smaller scale). Since such a small hydro project has no reservoir, it has a relatively low environmental impact compared to large hydro (less civil construction work).

2.) Biomass pretreatment and bio-hydrogen and biogas production. Pre-treatments are performed on biomass in order to enhance its utilization as a renewable energy source, improving its biodegradability and increasing the global yield of processes such as biogas/bio-hydrogen or bio-ethanol production. A two-stage anaerobic fermentation plant combines biogas and hydrogen production with an increased methane content compared to standard process.

HYDRAULIC TURBINE

Type Double regulated KAPLAN

Nominal flow rate 13 m3/s

Hydraulic head 5,7 m

Power 670 kW

Rotational speed 250 RPM

ELECTRIC GENERATOR

Type asynchronous

Number of poles 6

Rotational speed 780 RPM

Supply voltage 400 V

Frequency 50 Hz

Gross electricity production 3.800.000 kWh/y

FIGURE B/2: PRETREATMENT (LEFT ) AND BIO -HYDROGEN / ( )

TABLE B/1: HYDROELECTRIC POWER STATION CHARACTERIST ICS

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3.) Wood chips boilers. Environrment Park "shell boilers" take advantage of the heat exchange between fumes, produced by wood chips combustion, and water.

4.) Green roof. An area of more than 20000

m2 has converted into a green roof. Seen from above, the Environment Park Turin appears as a system of living gardens. The ZinCo System "Pitched Green Roof" was installed on the steeper roof areas (about 5.000 m2). This system transfers the shear forces into the sub-construction and provides the vegetation with water and nutriment. The eaves are reinforced and the vegetation cover remains lush all year long to avoid erosion.

5.) Photovoltaic panels. A photovoltaic system with a pergola structure (“sail”) has been installed; it is able to monitor and display the instantaneous production and the equivalent carbon dioxide emissions avoided. Moreover, Environment Park has built a heat recovery system called "Solar Wall", which consists of a perforated metal panel able to absorb the sun's heat and transfer it to a constant air flow. Hot air is then sent to an air handling unit which allows energy savings in winter season while in summer season thermal recovery is no longer necessary.

SHELL BOILERS Number 2 Power 1000 kW

Storage capacity 150 t

TABLE B/2: SHELL BOILERS

FIGURE B/2: THE LARGEST GREEN ROOF IN 2

FIGURE B/3: PHOTOVOLTAIC

FIGURE B/4: SOLAR WALL

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6.) Charging station. An electric vehicle charging station, also called EV charging station is now present and available for citizenry in the environment park site for supplies electric energy for the recharging of plug-in electric vehicles; its connection to the AC power supply is ensured with no possibility of a dangerous voltage discharge thanks to a dedicated control system.

7.) “ GRE_EN_S”, garden on the wall prototype. It consists of a modular ‘green wall

system’ that can be dismantled and recycled, a layer made from plant matter and recycled materials that guarantees low-impact heat and sound insulation. It is the result of an interdisciplinary approach based on studies involving biofiltration, phytosanitation, envelope materials, energy and microclimate and environmental management of manufacturing activities and waste disposal activities.

SPECIFICATIONS

Nominal current 16-32-50-63A

0-30V (input)

+12/-12VDC

230V (single-phase) Nominal voltage

400V (three-phase)

Frequency 50-60Hz

IP44 Index protection

IPXXD (not connected socket)

Working temperature -25°C +40 °C

Glow Wire test 650°C

Engineering plastic

Sheet steel Material

Steel AISI304

IK07 IK at 20°C

IK08

TABLE B/3: CHARGING STATION CHARACTERISTICS

FIGURE B/6: GARDEN ON THE

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C. DISTRICT HEATING IN TURIN CONCEPT REGION

District heating and gas distribution activities in Turin are carried out by AES Torino (51% owned by IREN Energia), which has one of the largest district heating networks in Italy (over 474 km of dual-piping). It covers a demand of 550000 Turin inhabitants, corresponding to a total methane gas volume of 54 million cubic meters connected by a 515 km distribution grid with a double pipe system (around 2050 GWh have been distributed in 2011-2012). In the whole Province there are many different district heating grids; whereas many of them are actually developing, some others are still in project.

The most important part of them is located in the city of Turin and in the surrounding municipalities, where there is the highest density of buildings and population (about 1300000 inhabitants, more than half of the whole Province). Two storage systems (at Politecnico and Northern Turin) allow to store the night produced heat, contributing up to 5% of global heat demand and shaving heat peak demand on early morning hours. Heating is becoming more and more important in the overall energy balance of the province of Torino. A total amount of 3000 GWh of heating was generated and distributed in 2010 mainly to private households customers. Heating represents more than 5% of total final energy consumptions and nearly 12.5% of total thermal consumptions of

buildings.

Plant Electric MW Thermal MW Input P MW

Moncalieri 3 CHP 390 260 700

Moncalieri 2 CHP 390 260 700

Moncalieri boilers - 140 155

BIT boilers - 255 280

Politecnico boiler - 255 280

Northern Turin boilers - 340 370

Northern Turin 390 220 700

Mirafiori - 35 40

Northern Turin storage - - 5000 m3

Politecnico storage - - 2500 m3

Table C/1: Actual status of Turin District heating grid

Figure C/1: District Heating system in the City of Turin