Krakow Energy Efficiency Project

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The Krakow Energy Efficiency Project aims at improving the efficiency of the city's district heating (DH) systems, decrease heat energy consumption by improving energy efficiency at the end-user level, and, develop knowledge-based mechanisms to finance energy efficiency projects. The project components will: 1) support strategic, and development investments, through the connection of new DH, and domestic hot water (DHW) to customers. By connecting pipeline branches to a booster pump station, the transmission capacity will be increased, allowing the purchase, and dispatch heat from the cheaper source, thus reducing overall supply costs to customers, as well as improving heat supply reliability to the southeast region; 2) finance ecological investments, by sequentially discontinuing current coal-fired heat-only-boilers (HOBs), to instead connect customers to municipal heating systems. A certain amount of HOBs will be converted to gas, or oil-firing, co-financed by a grant from the Global Environment Facility (GEF), and, plans to eliminate coal stoves will be explored to protect the environment; 3) modernize heat exchanger stations, through the installation of plate heating exchangers in substations, and, by replacing heating networks with pre-insulated pipe technology; and, 4) finance heat efficiency investments, to include institutional strengthening, by providing computerization systems, and training to improve labor productivity; replacing the automation of the Krakow system, and a number of heat meters, as well as maintenance tools, and equipment. Funding for the Energy Service Company capitalization will be provided, to balance its business development.