Leipzig:
Energy saving management as a tool of energy policy
Leipzig:
| |
| Country: | a) Western Europe | ,b) Germany |
| Language: | |
| Type: | Policy, 1 |
| Area: | City/Town, 100,000 - 1 mill. |
| Actors: | Local government |
| Funding: | Local government |
| Topics: | Air-quality |
| Energy | |
| Information and public participation | |
| Objectives: | Increase cogeneration |
| Increase district heating | |
| Reduce energy consumption | |
| Instruments: |
A coherent management of energy saving measures is a primary challenge to an energy supply company at municipal level. Through a consistent modernisation and an efficient energy saving strategy, the Leipzig energy utility has set itself the target to reduce energy related emissions in the city of Leipzig within ten years by more than 60 % (excluding transport). Priority is given to developing and extending co-generation on the basis of gas and lignite, the replacing of single lignite fires with district heating and natural gas, the reduction of line-loss, and individual energy savings by the customer. Since the Leipzig energy utility is implementing its policy in the context of restructuring the urban energy sector, it is a remarkable example of a co-ordinated programme of simultaneously dealing with technical innovations and integrating ecological considerations. The following principles are central to Leipzig’s energy policy:
At the beginning of the 1990s, Leipzig had some 65% old building stock and, in consequence, had to invest a lot into the modernisation of the energy supply system. In 1990, 260,000 households were being supplied with electricity, 190,000 households with gas and 70,000 households with district heating. At that time Leipzig had 70 km of primary district heating distribution networks and 110 km of secondary district heating distribution networks in addition to approximately 33 km of steam distribution networks which, in particular, supplied the inner city. The steam distribution network was, for the most part, constructed before 1940. The new residential areas were mainly heated directly through the secondary district heating distribution networks. The gas distribution network was over 1,200 km in length. The old prosperous bourgeois city of Leipzig had an extensive distribution network. With the exception of the new residential area and the smaller new areas, almost all households were supplied with gas for cooking (190,000 households, or approximately 75%). Heating supply with town gas was only possible in isolated cases on account of the small size of the distribution pipes (some 20,000 households in 1990).
With the take-over of all electric lines in the City of Leipzig, almost all distribution lines over 110, 30 and 10 KV became the property of the Leipzig energy utility. Whilst the lines in the new residential areas were usually sufficiently sized, in the areas made up of old buildings the entire grid had to be strengthened. Some 25% of electricity lines were over 50 years old. In addition to changing the low voltage side, the medium voltage rings in these areas had to be insulated and, in part, renewed.
Under these technical circumstances the municipality of Leipzig aims to reduce urban CO2 emissions attributable to energy significantly by the year 2000 (compared to 1990). The Leipzig energy utility expects substantial energy savings in the medium and long-term from a policy of new technologies, increasing energy prices, and environmental awareness. By this it is trying not to build up surplus capacities which would have to be reduced in the future. The company’s philosophy is that distribution is measured less by turnover rather than by the market share attained. The Leipzig energy utility is aiming to supply 85% of the heating market. Therefore the public utilities’ motivation to contribute to energy savings seemed to be justified from an economic and political point of view. It is assumed that political and public pressure will force the energy companies to become increasingly involved in the search for informed and environmentally friendly solutions in energy policy. A market for energy saving technologies and procedures will eventually develop in which the public utilities should be involved from an early stage on. Particularly in competition with coal and oil, electricity and gas are regarded as the cornerstones of an efficient energy use. However, such an energy saving approach is only feasible if the customers play an active role. Therefore, the Leipzig energy utility has tried to gather public support via various marketing efforts:
1. Public image campaign (initial presentation)
The need for increased public information on the new Leipzig energy utility itself became evident as the energy supply utility emerged from a complex reorganisation process. Familiarity with the company increased from 33% to 76% through a successful communication strategy in 1994. The campaign was carried out with an extensive poster advertising campaign which led to an increased awareness of the Leipzig energy utility. Thereafter, the growing public perception was expanded by the distribution of an information booklet to all households and additional advertisement (e.g. in public transport vehicles) in the spring and autumn of 1994.
2. Information and consultancy (on-going presentation and promotion)
The next phase of the marketing strategy was the advertising of energy tips in local newspapers. Three times a week one energy saving measure was introduced, and finally 70 energy saving proposals were made. The Leipzig energy utility had an information stand at trade fairs and at festivals in the City and the City Districts. The re-designed Advisory Centre has been set up to convince the people of Leipzig of the benefits of energy saving. At the end of August 1994 the four week long energy saving activities were initiated by the municipal utilities. Thus energy saving became a city-wide topic. The local people were attracted to the central market place through cultural events at which various advice and information services were offered. Specialised events were organised, and the commercial sector was involved with special sales promotions, the banks informed on special loan services and bakeries offered energy saving tips printed on paper bags.
A variety of activities have been initiated, ranging from the installation of two absorption refrigeration plants to training for caretakers to reduce the municipal utilities’ own consumption, and to promoting the best internal energy saving proposals. However, the most effective promotion has been the individual interviews in the Energy Advisory Centre, or on site, by advisory and supervisory staff when it is a matter of correctly sizing a new connection.
In addition, events and information with and for the most important multipliers, such as the electrical, sanitary, heating and ventilation trades’ and the architects' associations, promoted energy saving in various new construction measures and in building redevelopment.
3. Support Activities (implementation)
In co-operation with the energy utility, the City of Leipzig offered, as an initial incentive, financial support for energy diagnosis and expanded upon this with the installation of district heating, condensing value technology or renewable energies. With its price policy the Leipzig energy utility encourages efficient energy behaviour. It managed to introduce a linear tariff for normal customers and high supply prices in special contracts which should stimulate large customers to ensure a consistent load. District heating use is encouraged to be efficient, as the tariff rate varies with the level of the return temperature. Additionally, the Stadtwerke Leipzig is one of the first utilities offering an optional nearly linear tariff for district heating. In line with the Electricity Supply Law, 130% of the average price is paid for the input of electricity stemming from renewable energies. The Leipzig utility intensified its efforts to support the commercialisation of renewable energy in the second half of the 1990s. In 1997, a programme started giving a grant of 20 % for solar collectors on single or multi-family dwellings. Two years later, the utility offered its customers a ”green tariff”: A surcharge of 7.5 Pf./kWh is paid for electricity from renewable energy and is completely reinvested in additional local renewable energy technology.
The municipal utility’s policy to maximise ecological and economic advantages was welcomed by the city’s environmental authorities. In 1991-1992 an energy concept, with supply recommendations, was formulated. The reference values had been compiled in the form of a heating atlas and since then they have been continuously monitored and recorded. In consequence, the heating atlas has become increasingly detailed. All measures introduced were evaluated from an economic point of view and were implemented from the perspective of an optimally efficient energy supply. There are four central areas in which an environmentally compatible modernisation is being pursued:
Two major measures were introduced in regard to power plants. Firstly, the optimisation of co-generation and, secondly, the conversion of heating plants to natural gas. On the basis of the energy concept, ideas were formulated on the possible co-generation potential of the city and co-ordinated with all experts. In 1992, the Stadtwerke Leipzig began to realise one of them: The construction of a combined cycle gas turbine facility with 180 MWth and 172 MWel output for the northern location, with a performance of over 86%. This plant should provide winter base load for district heating. The turbines started to convert gas into electricity and steam three years later. For the southern area 200 MWth district heating base load are bought from a lignite power plant at some 15 km distance. To have an efficient source for middle and peak heating load, the conversion of the heating plants to natural gas already started in 1990, and by 1998 a district heating output of a total of 1200 MWth was available. Thus, the major part of district heating is currently being supplied cost effectively in an ecologically compatible manner through co-generation, rising from 40 % in 1991 to 83 % in 1997.
District heating was also an area of improvement. To realise co-generation potential the current district heating supply had to be maintained or slightly increased. In particular, the replacement of the steam network, the reduction in temperatures, the automation of converting stations and conversion to primary supply in addition to connection insulation, as well as the identification of district heating priority areas were tackled. District heating priority areas were selected on the basis of an economic calculation within the integrated company that comprised a long-term profit forecast at a constant energy price level. This revealed that the areas with old buildings and with high heating needs which are located relatively close to the distribution networks were the most suitable. In spite of the still relatively expensive district heating - on average DM 100 per MWh - new customers could be found, increasing to a top value of 130 MW in the middle of the 1990s and still reaching a value of 41.7 MW in 1998, even though then most of the modernisation was done. Thus, there was only a small reduction in demand during the first half of the 1990´s, whereas demand slightly increased in the following years. 30 km of primary district heating distribution networks were laid in 1993 and 58 km in 1994. The hot water network was continually extended and is now nearly 370 km in length. The steam network was finally closed down in 1999.
In the gas supply sector the conversion from town to natural gas, the reduction in and reconstruction of distribution lines, and the development of new areas have been undertaken. The conversion from town gas to natural gas began in autumn 1992 and was completed in June 1995. In 1993 and 1994 some 60 km of new gas pipes were laid annually. In the decade’s second half the local utility continually extended its high pressure gas network. Through these measures, new connections of gas heating systems increased from some 50 MWth/a in the years 1990-1992 to 100 MW in 1993 and 170 MW in 1994, resulting in a sales increase for gas in the following years. One has to stress that the general redevelopment activity in the old houses in Leipzig was an important precondition for the implementation of these measures.
In electricity distribution five major measures were introduced: replanning of the 110 KV levels, including redevelopment and insulation of the sub-stations, redevelopment and insulation of the medium-voltage transformers, including dismantling the 30 KV levels, increasing the capacity of house connections, conversion to three-phase electricity, introduction of interruptible contracts.
This rebuilding of the energy system has so far significantly impacted the annual energy related CO2 emissions of the City of Leipzig. They dropped from 7.32 million tons in 1990 to 3.53 million tons in the year 1998. These figures also include emissions from electricity imported into the city but not emissions attributable to mineral oil in transport. Similarly, the SO2 emissions were reduced by 53 %, dust by 86 % and NOx emissions by 46 %. This corresponds to an average reduction of nearly 60 % within eight years and thus almost attains the global average level targeted for in 1990.
In 1999, the specific figures for the Leipzig energy utility´s own power plants show a reduction of 79.6 % in CO2, 99.96 % in SO2, 99.91 % in dust and 88.4 % in NOx compared to 1990 levels.
After German reunification the organisational structures of the energy supply industries have undergone a complete change as West German and European investors moved in. All energy suppliers in the Leipzig area were amalgamated into the Westsächsische Energie AG (WESAG). The restructuring took place within the legal framework of the Treuhand Act, which had been a special act of the national privatisation agency in order to regroup parts of the highly centralised industries between 1990 and 1994. The electricity contract of 1990 envisaged a take-over of 51% of the shares by RWE Energie AG and 49% by the local communities in the district. The gas industry (Gasversorgung Leipzig GmbH - GVL) was hived off on the insistence of the Cartel Office. At the same time the municipal-owned heating supply and plant repair company, which was responsible for secondary district heating supply in the new residential areas, was set up as the Municipal Utilities Heating Supply and Plant Repair GmbH (SWAL).
After lengthy negotiations with a number of interested parties in Europe, the city council unanimously approved the partnership contracts with RWE in April 1992. They envisaged a separating out of the municipal supply share from the gas, heating/primary district heating/power plant company, an amalgamation with SWAL, renaming the Leipzig energy utility as Stadtwerke Leipzig GmbH (SWL) and RWE Energie AG receiving 40% in this new integrated public utility. In the consortium agreement, both ecology and economics are stated to be corporate aims of equal importance. The new Stadtwerke (municipal utilities) came into existence in Leipzig on June 1st, 1992. In 1994 the Leipzig energy utility had a turnover of almost 600 million DM and employed some 2,100 staff.
Since mid-1995 the Stadtwerke Leipzig are 100% owned by the city of Leipzig. The new organisational structure also includes an environmental officer who reports directly to the Technical Director and who co-ordinates and initiates a whole number of measures: surveys for an extensive eco-audit in line with EU Directives have commenced. Environmental reports have been formulated and will continue to be formulated on a regular basis. In 1996, after most of the technical restructuring was completed, an invitation of tenders for 40 % of SWL’s share began. A lengthy international negotiation with several interested utilities ended two years later, selling the shares to the MEAG AG, an East German utility with its headquarters in Halle. In 1998, the Leipzig energy utility had a turnover of 743 million DM, a profit of 31.9 million DM, achieving these results with a reduced staff.
Damm, Winfried 1995: Kommunikationskonzept der Stadtwerke Leipzig. Energiesparwochen 1994, in: Senatsverwaltung für Stadtentwicklung und Umweltschutz, (Hg.), Neue Wege im Energie- Sparmarketing. Dokumentation der Fachtagung von 21. und 22. November 1994 in Berlin, Berlin, S. 79-81
Damm, Winfried 1996: The new Stadtwerke Leipzig. Aims and CO2 reduction in: EA.UE, (ed.), Facing the Challenge. Successful Climate Policies in European Cities, Berlin, pp. 72-77
Personal contact with Dr. Gerhard Mener, April 2000
| Name | : | Damm |
| Firstname | : | Winfried |
| Telefon | : | ++49 / 341 / 121 33 18 |
| Telefax | : | ++49 / 341 / 121 63 73 |
| Address | : | Stadtwerke Leipzig / Leipzig |
| Energy Utilities | ||
| Eutritscher Strasse 17-19 | ||
| Postfach 100 614 | ||
| D - 04006 Leipzig | ||
Leipzig is situated in the Land of Saxony. It was one of the industrial centres in the former German Democratic Republic and with 3,850 inhabitants per square kilometres it is also one of the most densely populated cities in united Germany. After the political changes in 1989 the de-industrialisation of the obsolete industries impacted the city and the region as almost all of the heavy industry, iron and publishing industries disappeared. Currently Leipzig is quickly developing into an international service city with over 100 banks and a new trade fair centre which opened in April 1996.
Project was added at 21.06.1996
Project was changed at 05.03.2001