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City residents can apply for EU funds to replace old heating equipment

City residents can apply for EU funds to replace old heating equipment

Ministry of Environmental Protection and Regional Development

In Latvia's densely populated urban areas, air quality deteriorates during the heating season because many households heat their homes with outdated, inefficient and polluting heating equipment. To reduce the negative impact of air pollution caused by such heating equipment in our country, around 1 200 households in urban areas will have the opportunity to switch to more environmentally friendly heating options, funded by a new €12.44 million grant programme of European Union (EU) funds.

It will also improve the efficiency of individual heating systems, including by connecting to efficient district heating systems. Households will be able to receive co-financing of between 50% and 95% of the project costs for the replacement of their heating equipment.

Most emissions in and around Riga

In Latvia, air quality monitoring is carried out in Riga, Ventspils, Liepāja, Rezekne and two rural background stations located in Liepāja and Cēsis municipalities. Most of Latvia's emissions are recorded in and around Riga, as well as in other major cities such as Liepaja and Rezekne. This is reflected in the results obtained at the air quality measurement stations, which are compared with air quality that meets World Health Organisation standards.

In the capital, where much of the country's activity is concentrated and where the population is densest, the contribution of households to air pollution during the heating season is quite significant. In Riga, household heating is considered the main source of PM2.5 and PM10 pollution, each accounting for ~55% of total emissions. Household pollution in winter is characteristic of several residential districts of Riga, where there are more private houses. In the course of the development of the Capital City Air Quality Plan, modelling was carried out which showed that if old heating installations in Riga were replaced, air quality would improve. Connecting district heating to the buildings where the heating pipelines allow is considered to be one of the most effective measures. Where this is not technically feasible or economically viable, the replacement of existing heating installations with more environmentally friendly and efficient installations should be encouraged.

Grant - a good incentive for city residents

Jānis Ikaunieks, Director of the Riga Municipality Agency "Riga Energy Agency", explains how the capital is taking action to reduce air pollution from household heating, "New regulations on the choice of heat supply and heat production will soon come into force in Riga. The grant programme for replacing old heating equipment announced by the state will be a good incentive for Riga residents to prepare for the changes so that they can adapt and upgrade their homes with more environmentally friendly and efficient heating equipment." It should be noted that the rules apply when a permit from the Heat Supply Commission is required and apply to households that are either installing new or replacing old heating equipment. Those who do not plan to and do not currently have the possibility to change their heating installations, as well as those who use central heating, are not affected by the municipality's rules. The previous rules were already outdated and did not correspond to the real situation, so new ones have been drawn up, says J.Ikaunieks.

Riga already has a set of rules on what heating installations can be built in certain neighbourhoods, which are zoned and required according to the level of air pollution. Now, a new zoning principle based on an analysis of the different influencing factors will be included and simplified. The zoning also includes neighbourhoods such as Čiekurkalns, Bieriņi, etc., where the population is denser, more private housing is built and where homes are individually heated. In areas of the city where air pollution is relatively higher, there are restrictions on heating installations, e.g. wood cannot be burned, but pellet boilers can be used. When constructing new buildings or replacing old boilers, priority is given to district heating or emission-free heat sources. Where neither district heating nor heat pumps are available or technically feasible, investment in efficient biomass heating is acceptable.

Riga will also ban the use of coal in domestic heating installations and all other installations used to produce heat. Another important innovation: the Heat Supply Commission will be able to decide on the installation of new heating sources on their own merits, assessing technical and economic performance. This means that if, for example, in a centre with strict requirements on air pollutants, only district heating or heat pumps can be installed as required, but this is not possible for a particular building, the commission will be allowed to approve another, more environmentally friendly solution. "The aim of the new rules is to encourage the replacement of existing, inefficient appliances by more efficient ones by 2030 and to promote the use of renewable energy sources that do not emit air pollutants. The measures taken by the municipality are expected to reduce the number of people exposed to pollution levels to 70% in 2025 (baseline scenario) and to 92% in the best case scenario," summarises J.Ikaunieks.

Support: from district heating to pellet boilers

The target audience of the grant programme is Latvian urban households. The EU funding will support the replacement of heating equipment in single- and two-apartment houses in Latvian cities where heating is provided by biomass solid fuels and in small multi-apartment houses where heating is provided by coal, peat or biomass solid fuels. Connections to the district heating system will be supported, including the renovation, rebuilding or construction of heating and hot water distribution systems (if necessary), the installation of a heat pump (air, water, ground), including an increase in the required capacity of the mains connection (if necessary), the installation of wood biomass boilers suitable for pellet fuels. In addition to the installation of heat pumps and pellet boilers, it will also be possible to install solar panel systems (with connection to the electricity grid), complete renovation, conversion or creation of a heating system with heating elements.

In order to avoid deterioration of air quality in urban areas and negative impacts on public health, grant support will not be granted for the installation of wood combustion plants (biomass combustion according to EU and internationally accepted calculation methodologies emits 160 g/GJ of PM2.5), which may also burn other solid fuels (e.g. fossil fuels such as coal, as well as fossil energy peat). Wood biomass boilers suitable for pellet fuels have certain requirements that will need to be met in order to qualify for investment support.

Projects can be submitted by apartment owners of private houses and small multi-apartment buildings, natural persons and legal entities governed by private law, or their authorised representatives, where the heat demand of the building is up to 50 kW (buildings no larger than 8-12 apartments, two- or three-storey houses). The support is intended for commissioned houses (the building has been commissioned at least seven years before the date of submission of the project application and has been in continuous use for at least the last three years), including apartment ownership or apartment ownership of multi-apartment buildings, where it is not possible to invest in a single solution for a residential building.

Up to 95% cost support for projects

The amount of funding per project will not exceed €4,400 per resident of the household in which the project is implemented. The support rates will vary: 95% if the connection to the district heating system is foreseen, 85% of the project costs for those planning to purchase heat pumps (basic heating solution), up to 70% if the purchase of a biomass (pellet) boiler is foreseen and 50% of the costs will be covered if the installation of an air-to-air heat pump covering the full heating needs is foreseen.

Funding will be made available through four calls for proposals: the first was launched in Q2 2023, with contracts to be signed in summer/autumn 2023. Subsequent calls for proposals will follow the first one in 2023 until the first half of 2024. Households must implement the projects within 24 months, but no later than 31 December 2025. Once the project is completed, the building owner will have to ensure that the equipment is properly operated.

More information on the European Regional Support Fund grant programme "Implementation of measures to reduce air pollution by improving household heating systems" is available on the websites of the Ministry of Environmental Protection and Regional Development (www.varam.gov.lv) or the Central Finance and Contracting Agency (www.cfla.gov.lv), by sending an e-mail to silti@cfla.gov.lv or by calling the advisory line 24002700.

 

The article was written with the financial support of the Latvian Environmental Protection Fund for the information campaign "Mana māja. Mana vide", the content of which is the responsibility of the Association for Education, Culture and Innovative Projects (IKIPA). The project will inform private home owners and the general public about the proper operation of individual heating installations, good fuel combustion practices and the health and environmental impacts of different fuels.

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