Innovative practices in Bulgaria
Sharing innovations for improving local self-government
Developing a techno-economic model for a geothermal station in Sapareva Banya Municipality
Sapareva Banya Municipality
Background
At the end of March 2002 the project entitled Development of a techno-economic model for a geothermal station in Sapareva Banya funded by USAID s EcoLinks Program was completed The project was realised through the effective cooperation between Sapareva Banya Municipality, the US partner Princeton Energy Resources Ltd. and the Bulgarian partner Elisa Consult Co. Activities were implemented in the course of 12 months with total program funding amounting to 48 000 USD.
At the end of March 2002 the project entitled Development of a techno-economic model for a geothermal station in Sapareva Banya funded by USAID s EcoLinks Program was completed The project was realised through the effective cooperation between Sapareva Banya Municipality, the US partner Princeton Energy Resources Ltd. and the Bulgarian partner Elisa Consult Co. Activities were implemented in the course of 12 months with total program funding amounting to 48 000 USD.
Practice
The aim of the project was to develop a model for economically effective and environmentally safe use of the geothermal water in the region of Sapareva Banya for heating purposes (as an alternative energy source) as well as for developing the tourist and balneological infrastructure in the region.
The specific tasks of the project comprised the collection and analysis of data for the climactic characteristics of the region, the length of the heating period in the town, the need for heating energy sources, and the comparative share of each of the traditional fuels, used for heating administrative and private buildings. A detailed technical and economic analysis was performed on the existing heating system, using water from the largest thermal spring (the Geyser) on the territory of the municipality, registering its potential in the short and long term.
US project consultants designed measures for immediate increase of the efficiency of the present heating system s operation, which the municipality then implemented with minimum expenditures. The project also supported the expansion of the existing heating system to include the building of the kindergarten and the department store in Sapareva Banya.
A detailed assessment of expenditures for better utilization of the geothermal source potential was made, on the basis of which a techno-economic model for the regional heating system was developed. The assessment of the economic effect of the model developed in partnership between Bulgarian and US experts showed that its implementation would lead to annual savings for the community amounting to 91 400 USD.
The assessment of the environmental effect shows that the heating system will bring substantial benefit for the local environment through the reduced emissions of air polluting substances. The most significant one is the cut of over 9000 tons of carbon dioxide emissions annually.
Taking into account the natural resources available the geothermal water and Sapareva Banya s location at the foot of Rila Mountain, the model provided includes guidelines for the development of tourism and some specific productions. It envisions the development of three interrelated resorts with Sapareva Banya as their centre balneological, ski and golf resorts.
The specific productions proposed include drying of seed and wood, asparagus growing, production of seaweeds such as sprituline, food processing and aquaculture reserves, including an aligator breeding station.
In the course of implementation the project problems of legal nature were encountered, which significantly hinder the successful implementation of the model developed. This is related to the currently operating legislation according to which in case of conceding the geothermal sources, concessioners received only 30% of revenue, which is insufficient for maintenance and economically unprofitable for them. The price of cubic meter of geothermal water determined at this stage is inadequate in terms of the real consumption and impossible to be paid by users, which on its part leads to ineffective use of the resource.
The aim of the project was to develop a model for economically effective and environmentally safe use of the geothermal water in the region of Sapareva Banya for heating purposes (as an alternative energy source) as well as for developing the tourist and balneological infrastructure in the region.
The specific tasks of the project comprised the collection and analysis of data for the climactic characteristics of the region, the length of the heating period in the town, the need for heating energy sources, and the comparative share of each of the traditional fuels, used for heating administrative and private buildings. A detailed technical and economic analysis was performed on the existing heating system, using water from the largest thermal spring (the Geyser) on the territory of the municipality, registering its potential in the short and long term.
US project consultants designed measures for immediate increase of the efficiency of the present heating system s operation, which the municipality then implemented with minimum expenditures. The project also supported the expansion of the existing heating system to include the building of the kindergarten and the department store in Sapareva Banya.
A detailed assessment of expenditures for better utilization of the geothermal source potential was made, on the basis of which a techno-economic model for the regional heating system was developed. The assessment of the economic effect of the model developed in partnership between Bulgarian and US experts showed that its implementation would lead to annual savings for the community amounting to 91 400 USD.
The assessment of the environmental effect shows that the heating system will bring substantial benefit for the local environment through the reduced emissions of air polluting substances. The most significant one is the cut of over 9000 tons of carbon dioxide emissions annually.
Taking into account the natural resources available the geothermal water and Sapareva Banya s location at the foot of Rila Mountain, the model provided includes guidelines for the development of tourism and some specific productions. It envisions the development of three interrelated resorts with Sapareva Banya as their centre balneological, ski and golf resorts.
The specific productions proposed include drying of seed and wood, asparagus growing, production of seaweeds such as sprituline, food processing and aquaculture reserves, including an aligator breeding station.
In the course of implementation the project problems of legal nature were encountered, which significantly hinder the successful implementation of the model developed. This is related to the currently operating legislation according to which in case of conceding the geothermal sources, concessioners received only 30% of revenue, which is insufficient for maintenance and economically unprofitable for them. The price of cubic meter of geothermal water determined at this stage is inadequate in terms of the real consumption and impossible to be paid by users, which on its part leads to ineffective use of the resource.
Results
Sapareva Banya Municipality, with the help of US based Princeton Energy Resources International and Elisa Consult, Bulgaria has implemented a detailed techno-economic analysis of the existing heating system, using geothermal water from the largest resource on the municipal territory (the Geyser), and performed an assessment of the potential short and long term possibilities for expansion. On this basis a techno-economic model for a regional hearing system has been developed. The assessment of the economic and environmental effect of the model shows that the heating system will bring substantial benefits both to the environment, as well as for the development of some specific productions.
The research on the possibilities for attracting foreign investors for the implementation of the model developed indicate that the not so favourable investment climate in Bulgaria poses a serous legislative obstacle to the future effective utilization of the project results.
Sapareva Banya Municipality, with the help of US based Princeton Energy Resources International and Elisa Consult, Bulgaria has implemented a detailed techno-economic analysis of the existing heating system, using geothermal water from the largest resource on the municipal territory (the Geyser), and performed an assessment of the potential short and long term possibilities for expansion. On this basis a techno-economic model for a regional hearing system has been developed. The assessment of the economic and environmental effect of the model shows that the heating system will bring substantial benefits both to the environment, as well as for the development of some specific productions.
The research on the possibilities for attracting foreign investors for the implementation of the model developed indicate that the not so favourable investment climate in Bulgaria poses a serous legislative obstacle to the future effective utilization of the project results.
[Nominate]
back