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Iasi TPP

S.C. DALKIA TERMO IASI S.A.

• Current (private) operator of Iasi TPP (both CET I and CET II)
• Registration No. At Trade Chamber: J22/1399/2012
• Fiscal Identification Code: RO 30570461
• Ownership structure: SC. Dalkia Termo Iasi S.A is a special purpose entity set up in 2012 and held by Dalkia Romania (90%) and Iasi municipality (10%).^[1]
• Iasi TPP (CET Iasi) produces both electricity and heat and is organized into:
  1. CET Iasi I (natural gas-fired)
  2. CET II Iasi (coal-fired)

• Previous operator of Iasi TPP: S.C. CET IASI S.A
• Context: S.C. CET IASI S.A was declared insolvent in 2012 and consequently the management and operation of the district heating system was conceded for 20 years to DALKIA Romania (a subsidiary of Veolia Environnement and Electricité de France (EDF).
• Commercial history: Until 2002, CET Iasi was an integral part of S.C. TERMOELECTRICA S.A Bucuresti. In 2002, based on the provisions of Government Decree (G.D) no. 104/2002, S.C. CET IASI S.A started functioning as a separate commercial entity subordinated to and owned 100% by the Local Council of Iasi Municipality. In 2003, S.C. CET IASI S.A was absorbed by Regia Autonoma de Termoficare Iasi, which merged with S.C. TERMOGAZ S.A. in 2004. In October 2011, Iasi Municipality ended the concession for heat production, transport and distribution it had with S.C. CET IASI S.A, management of the TPP was taken over by S.C. Dalkia Romania S.A., and the sole owner became Iasi Municipality (City Hall of Iasi Municipality). In April 2012, S.C. CET IASI S.A filed for bankruptcy /insolvency. In August 2012, a new company was set up: S.C. DALKIA TERMO IASI S.A. which is now responsible for district heating in Iasi (public utility management contract no. 61634/06.07.2012 for heat production, transport, distribution and supply in Iasi city).
• Brief History:
  • 1962: start of CET Iasi I construction;
  • 1966: CET Iasi I puts into operation 2 units x 25 MW;
  • 1972-’73: 2 more units x 50 MW each and 6 hot water boilers of 100 GCal/h put into op.;
  • 1981: start of CET Iasi II construction;
  • 1986-‘88: CET Iasi II: 3 units X 50 MW (coal-fired); of which only 2 in operation now.

Iasi TPP (CET Iasi I+II)

(total final installed capacity 300 MW, available 125 MW)

CET Iasi I: total final installed capacity: 150 MW, available: 25 MW (1 unit active)

Unit No.	Capacity	Current status	Other relevant info
Unit 1 (1966)	25 MW	Only 1 LANG turbine active	Steam boilers no. 1 and 2 were put into operation in 1965 and steam boiler no. 3 in 1966.
Unit 2 (1966)	25 MW
Unit 3 (1972-’73)	50 MW	NOT CLEAR (turbines do not exist within the TPP, since due to gross incompe-tence/theft, 3 turbines ended up sold as iron scrap, although perfectly functional)	Lignite-fired units, parts of which – turbines and boilers alike (although functional!) have been sold as iron scrap at a tender in 2012. Legal uncertainty persist as to whether they will be reclaimed by the current operator.
Unit 4 (1972-’73)	50 MW

Location: Str. Calea Chisinaului, no. 25, Iasi city, Iasi county.

 

CET Iasi II (Holboca): total final installed capacity: 150 MW, available: 100 MW (2 units active)

Unit No.	Capacity	Current status	Other relevant info
Unit 1 (1986)	50 MW	Active	Current status: only 2 units in operation The first unit was put in operation in 1986. The second unit – in 1987-‘88. Since 1999, with the assistance of Finish company FORTUM, all the lignite-fired boilers were upgraded & switched to run on hard coal.
Unit 2 (1987)	50 MW	Active
Unit 3 (1988)	50 MW	Closed/inactive	Decommissioned. The heat interconnection line between CET I and CET II was built in the same year (1988).

Location: Sos. Iasi-Ungheni km 13, Holboca, Iasi county (8 km away from Iasi city, 11 km from CET Iasi I).

Total final installed capacity (CET I + II): 300 MW

Total available capacity (CET I + II): 125 MW

Connection between TPP I (CET I) and II (CET II)

CET Iasi I

Production Capacities (pre-bankruptcy tender info):

CET Iasi I is a natural gas-fired cogeneration plant which had in 2010:

• • 3 steam boilers of 120 t/h (mainly natural gas-fired, heating oil used for back-up);
  • 2 steam boilers of 420 t/h (natgas-fired, heating oil for back-up);
  • 2 Lang turbines of 25 MW;
  • 2 turbines x 50 MW;
  • 2 base boilers (35 Gcal/h each);
  • 2 base boilers (80 Gcal/h each);
  • 4 hot water boilers (100 Gcal/h each);

In August 2013, the plant had 2 Large Combustion Installation (LCIs) in operation, i.e.: installations with P_t > 50 MW:

• LCI 1 (type I, on natural gas): steam boilers no. 1, 2, and 3 (of 120 t/h each); nominal thermal capacity of 282 MW_t; own chimney (H=70 m, gas Speed = 3-5m/s, Q natgas burnt = 10,000 cm/h);
• LCI 3 (type I, on natural gas): the hot water boilers (HWB) no. 1 and 2 (of 100 Gcal/h each); nominal thermal capacity of 232 MW_t; own chimney (H=70 m, gas Speed = 3-7 m/s, Q natgas burnt = 14,400 cm/h).

Available power capacity (2013): 25 MW

Available heat capacity (2013): 514 MW_t

Integrated Environment Authorization: CET Iasi has authorization for LCI 1 and LCI 3 (obtained in August 2013, valid until August 2023).

RELEVANT INFO: After having been declared insolvent, parts of CET I Iasi installations were sold as scrap iron to SC Shine Concept SRL, an obscure firm, at the time, from Galati, but now headquartered in Bucharest. Two months after the tender, Iasi municipality cried foul and accused major irregularities with the auction, since the 8,600 tons of material sold at the auction included functioning installations (which were disputed in court) including 3 turbines from CET I, 2 steam boilers, 2 hot water boilers, pipes, transformers, engines, etc. Iasi municipality and Dalkia contested in court the illegal sale of the TTP’s assets, but the judges rejected the complaint and ruled that the tender was correct. It is our understanding that there are still some possibilities to attack in court this decision that have not been exhausted (July & Nov. 2013 level).

In 2010, local authorities initiated the EU-funded project “Rehabilitation of district heating in Iasi in order to comply with air emissions standards and to increase energy efficiency in district heat supply”, project no. CCI2009RO161PR025.^[2] Main beneficiary: Iasi City Hall

The contracts for CET I Iasi covered:

1. Modernization of HWB 1 (deNOx): gas and oil burners with low NOx, capital repairs of section under pressure, resizing to fit actual consumption. Contract was signed with SC Energoutil Contact SA on 04.11.2013, work started on 03.12.2013. Contract value: 10,581,848 lei (without VAT), of which 5,290,924 lei – the share of EU funds. Construction period: 28 months.
2. Similar upgrades for HWB 3 (deNOx + online monitoring of emissions (NOx, SO2, dust). Contract signed with the same company – SC Energoutil Contact SA on 14.08.2013. Contract value: 13,392,359 lei (without VAT), of which 6,696,179 lei is the share of EU funds. Construction period: 27 months.

CET Iasi II (Holboca)

Production Capacities: This power plant has:

• • 2 steam boilers of 420 t/h each;
  • 2 working turbines X 50 MW each;
  • 2 base boilers (80 Gcal/h each);
  • 3 peak boilers (45 Gcal/h each);
  • an ignition mini heat power plant (centrala termica de pornire (CTP), in Romanian) that has 2 steam boilers of 30 t/h each).

During the cold season (October-April), the TPP is operational non-stop (3 shifts of 8 hours each). During summer, the TPP is not-operational.

The plant has 1 Large Combustion Installation (called LCI no. 4) with a nominal thermal power >50MW (IPPC) and 2 combustion Installations with nominal thermal power > 20 MW (non-IPPC), at the ignition mini heat power plant:

• LCI no. 4: the 2 steam boilers of 420 t/h; each with a nominal thermal capacity of 305 MW_t; own chimney (with H=164 m and D int/ext=8.1 m/8.3m);
• Ignition mini heat plant: 2 boilers (30t/h each), nominal thermal capacity of 24.4 MW_t, 2 chimneys (each with H=15 m and diameter of 0.3 m); uses fuel oil or natural gas.

CET Iasi II is mainly hard-coal-fired (fuel-oil is used only to turn it on and off). The ignition mini heat plant uses fuel-oil or natural gas though the interconnection with CET I.

Total available electricity capacity: 100 MW

Total nominal heat capacity: 658.8 MW_t

Integrated Environment Authorization: At the end of 2013, CET II Iasi (Holboca)’s authorization expired and had to be renewed. Despite the fact that the appropriate investments have not been finalized yet, in December 2014, the Iasi branch of the National Environmental Protection Agency (ANPM) decided to exempt CET II Holboca and allow it to continue operating until modernizations currently under way are completed. The project “Rehabilitation of district heating in Iasi in order to comply with air emissions standards and to increase energy efficiency in district heat supply” mentioned earlier includes also modernization works at CET Iasi II (Holboca).

Large Combustion Installation 4

DeSOx: investment in progressThe contract to build a DeSOx installation was awarded to a consortium made up of SC Elsaco Electronic SRL and SC TMUCB SA and signed on 31.07.2014. Total contract value: 119,040 million lei (VAT included) of which 50% is covered by EU funds, 45% by Romanian Government, and 5% by Iasi municipality. The start of construction was significantly delayed because the result of the tender was contested more than 10 times. The problem was finally settled in summer 2014. It is worth noting that one of partners in the consortium (TMUCB) filed for insolvency this year and that the awarding decision was maintained in favor of the Elsaco – TMUCB association despite being formally contested by other participants such as the association between ALSTOM POWER SWEDEN AB – SC ALSTOM INFRASTRUCTURE ROMANIA SRL – SC ROMELECTRO SA for instance in late June 2014. Construction period: 32 months, and it must be completed by end of 2015, so the constructor is racing against time.

DeNOx: investment in progress at one of the steam boilers of 420t/h, CET Iasi II

Contract was signed with the consortium of FORTUM POWER, HEAT OY Finland and ENERGOMONTAJ SA BUCURESTI on 12.05.2014. Order to start work was issued on 19.05.2014.

Contract value: 12,676,823 lei, without VAT, of which 6,338,411 lei is EU funding.

Construction duration: 21 months.

DeDust: Completed

Contract was signed with SC ALSTOM INFRASTRUCTURE ROMANIA SRL on 24.02.2012 and Order to start construction was issued on 29.02.2012.

Contract value: 14,289,482 lei, without VAT, of which 7,144,741 lei – contribution of EU funds.

Construction period: 33 months.

Investment: design and execution of a dry slag and ash collection system at CET Iasi II.

Other modernization work conducted within the EU-funded project “Rehabilitation of district heating in Iasi” includes:

• Retrofitting the transport pumps in CET I Iasi and CET II Iasi. The contract was signed with a consortium formed by S.C. ROMIB S.A and S.C. DANEX CONSULT S.R.L on 22.08.2011 and the Order to start construction was issued on 29.08.2011. Contract value: 8,277,651 lei (without VAT), of which 4,138,825 EU funds contribution. Construction is completed.
• Retrofitting the No. 2 Mainline transport network in Iasi – replacing existing pipe on certain segments with insulated pipes to reduce heat loss. The contract was signed on 19.12.2012, the Order to start work was issued on 30.04.2013. The winner of the tender was the consortium formed by SC Conest SA, SC Elsaco Electronic SRL, and SC TMUCB SA. Contract value: 37,517,937 lei (without VAT), of which 18,758,968 from EU funds. Construction period: 33 months from the date the Order to start was issued.

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FOOTNOTES:

1. http://www.veolia.com/en/veolia-group/media/press-releases/dalkia-operate-district-heating-network-iasi-romania-s-second-city ↑
2. European Commission approval decision no. C (2010) 1071/24.02.2010, registration no. 16879 in SMIS-CSNR and Order of Environment Ministry no. 324 /10.03.2010. ↑