1. Karlovac County Situated in the central part of Croatian state territory Covers an area of approximately 3.622 km 2 Population - 141 787 people, density 39/km 2 Important transit, traffic and geostrategic position 5 cities (Karlovac, Slunj, Ozalj, Duga Resa and Ogulin) and 17 municipalities

2. Karlovac County – Biomass Potential Considerable forest biomass potential: 57% of total area covered with forests (33,6% private forests and 66,4% state owned managed by national company – Hrvatske šume Ltd. ) Annual allowable cut 550.000 m 3

3. Karlovac County – Biomass Utilization Biomass mostly used in households and wood industry Total capacity of industrial biomass boilers: 22 MW (wood residues) 73% of population uses fuelwood as energy source for heating (2001) – mostly old and inefficient wood stoves Majority of public buildings uses oil as energy source for heating, only 1% uses fuelwood

4. Karlovac County - Goals Gradual replacement of oil boilers older than 15 years with biomass boilers in public buildings

5. Karlovac County in Action! Strategy for Karlovac County Sustainable Energy Utilization

6. Karlovac County in Action! Solar thermal collectors for households 2009 Subsidies for 60 households 48 Solar thermal systems installed

7. Karlovac County in Action! Renewable energy utilization systems 2010 45 solar thermal collectors 5 geothermal heat pumps 5 photovoltaic 5 small wind generators Plans for 2011 Add 10 pellet boilers to competition

8. Initiative of the City Mayors The mayors of the cities in Karlovac county recognized advantages of biomass heating Support from the North-West Croatia Regional Energy Agency - REGEA REGEA analyzed and recommended several solutions-Duga Resa, Ozalj, Slunj Preliminary projects of biomass district heating and fuel oil boilers reconstruction

9. Available Sources of Funding Environmental Protection and Energy Efficiency Fund Up to 1.4 million kn (maximum of grants)! – Up to 80% area of special state concern – Up to 60% if they are located on islands or in mountain areas – Up to 40% in other areas

10. Available Sources of Funding IPARD (5th component of Instrument for Pre- Accession Assistance) – Possible financing up to 7 million kn (100% of investment) – Only for cities and municipalities with a population of less than 10,000 according to 2001 census – In charge - Ministry of Agriculture, Fisheries and Rural Development – Requirements: project documentation (concept design, main project, investment study) and permits (location, building) - acceptable costs! – Construction or reconstruction of district heating systems for the use of organic waste from agriculture and forestry (biomass)

11. City of Ozalj Situated in the north-west part of Karlovac County Covers an area of approximately 179 km 2 Population – 7 932 people Transit and traffic position -borders with Republic of Slovenia

12. City of Ozalj – District Heating Analysis of several variants of possible solutions with different number of heat consumers and boiler locations: City centre City centre with industrial zone – boiler in industrial zone

13. City of Ozalj – District Heating

14. The most acceptable economic solution adopted Investment costs – 5.552.000,00 kn Wood chips boiler 0,8 MW 750 m of heating pipelines Number of consumers – 10 (public buildings, block of flats, industrial buildings)

15. Total investment costs: 5.552.588,00 kn - Boiler (800 kW): 2.622.500,00 kn; - Heating network:1.482.000,00 kn - Other costs: 410.399,00 kn - Value added tax (23%): 1.038.289,00 kn City of Ozalj – District Heating

16. Ozalj-Key Financial I ndicators Without grants Discounted payback period: 10 years With grants Discounted payback period: 0 years!! Total investment cost can be covered with IPARD and Environmental Protection and Energy Efficiency Fund Price of heating is significantly lower

17. Ozalj Heating fuel cost comparison

18. City of Duga Resa Situated in the northern part of Karlovac County Covers an area of approximately 58 km 2 Population – 12 000 people Important transit and traffic position – connecting continental and coastal parts of the country

19. City of Duga Resa – District Heating Preliminary project of district heating Analysis of several variants: City centre Wider city centre The complete city area

20. City of Duga Resa – District Heating

21. The most acceptable economic solution adopted Investment costs – 7.980.000,00 kn Wood chips boiler 1,3 MW 1580 m of heating pipeline Number of consumers – 12 (public buildings, block of flats, industrial buildings

22. City of Duga Resa – District Heating Total investment costs: 7.980.598,79 kn - Boiler (1,25 MW): 2.905.000,00 kn; - Heating network: 2.993.447,00 kn - Other costs: 589.844,70 kn - Value added tax (23%): 1.498.598,00 kn

23. Duga Resa-Key Financial Indicators Without grants Discounted payback period: 11 years With grants Environmental Protection and Energy Efficiency Fund grants: 1.400.000,00 kn Discounted payback period: 5 years Price of heating is significantly lower

24. Duga Resa Heating fuel cost comparison

25. City of Slunj Situated in the south-east part of Karlovac County Covers an area of approximately 392 km 2 Population – 6 096 people Rastoke – popular tourist and rafting destination

26. City of Slunj – Energy Efficiency Project City Government building and Public Open University Preliminary project of energy efficiency: Replacement of present oil boilers with new pellet boilers of equal power (220 kW + 220 kW) Replacement of old windows Installation of thermostatic valves

27. City of Slunj – Energy Efficiency Project Current consumption of fuel oil: 23 500 l/y (122.200,00 kn) Consumption of pellets after modernization: 36,76 t/y (46.000,00 kn) Annual savings: 76.200,00 kn

28. City of Slunj - Energy Efficiency Project Area of special state concern-tax and funding benefits Total investment costs : 1.662.000,00 kn Grants from Environmental protection and energy efficiency Fund-80% of investment (1.329.325,00 kn) Without grants: Discounted payback period: 29 years With grants: Discounted payback period: 4,7 years

29. Conclusions! Recognized potentials of biomass utilization Lower expenses for heating energy Positive impacts on environment Biomass as a driver of development of rural communities Positive impacts on employment and other socio- economic aspects Preparation of project documentation – very important!!