1. Geothermal district heating in the city of Kecskemét MLEI GeoKec – City of Kecskemét (HU) 21/03/ /03/2016
IEE/12/064/SI
20/03/2016

2. Municipality of Kecskemét - General economic data
Capital of Bács-Kiskun county
Economic, administrative, educational, and cultural centre
Population: (2011), number of households:
Important investors (e.g., Mercedes-Benz factor opened in 2012)
Economic structure:
48.3% service
41.39 % industry
10.31% agriculture
Perfect location
M5 Motorway
85 km from Budapest
70 km from the airport
NATO airbase to be
transformed for civil use

3. Scheme of the Existing district heating system
Distribution System
Heating Company Proprieraty
Two independent distribution system
Total heated space: m3
No. of heated flats:
Supplied heat amount: GJ
No. of heat transfer stations: 309
Heat provider: Termostar Kft.
Owners:
69.5% - Municipality
30.5% - EDF DÉMÁSZ Zrt.
Széchenyiváros System
Capacity requirement: MW
Hot water requirement: 3 MW
Árpádváros System
Capacity requirement: MW
Hot water requirement: 1,5 MW
Gas Engines
Covers hot water heat requirements
Capacity:
6,6 MW thermal capacity
6,2 MW electric capacity

4. District heating system – Future plans
Connection of the two separate networks financed by the Environment and Energy Operational Programme (Structural Funds) - executed
Use of geothermal energy in the district heating system
Installation of efficient gas boilers replacing the old ones
Further extension of the district heating system with residential and industrial consumers is possible and considered

5. Project plan

6. Layout of the geothermal system

7. Temperature distribution chart Produced geothermal heat
Installed Geothermal Capacity
Temperature distribution chart
Length of the heating season: 182 days
Peak time capacity is required in very few days a year
Produced heat amount is not linear in function of the installed capacity
Optimal capacity
Optimal capacity
Produced geothermal heat

8. Execution Phases (1) Phase 1 Advantages Phase 2
Safety – Reduce drilling risk
Adapted milestones
Earlier operation
Income
Subsidy
Advantages
Install geothermal heat plant in heat transfer station no. 202.
Drill 1+1 wells
Pre-heat secondary loop return water
Phase 1
Connect Széchenyiváros system into geothermal heat plant
Drill 3+3 wells (total 4+4 operates)
Pre-heat primary loop return water
Phase 2
Connect Árpádváros system into geothermal heat plant
Drill 2+2 wells (total 6+6 operates)
Phase 3
Energy produced
Phase 1: 3,5 MW capacity; GJ heat
Phase 1+2: 18,3MW capacity; GJ heat
Phase 1+2+3: 28,2 MW capacity; GJ heat
3 parallel pipeline is installed (2 small + 1 large)
Large pipeline is unused in phase 1
2 small pipelines reinject in phase 3
Supply and Reinjection Pipeline

9. Actors involved End users Municipality of Kecskemét Termostar
(present and future consumers of the heat)
Actors involved
Municipality of Kecskemét
Termostar
(district heating company)
69% municipality of Kecskemét
31% EDF
EU-FIRE Ltd.
Financial investors
Kecskeméti Termálrendszer Beruházó Ltd.
(project company)
7% Municipality of Kecskemét
93% EU-FIRE Ltd.
Additional professional investors
Contractors
Contractual relation
Ownership relation

10. Financing of the proposed investments (1)
Investment Cost
Phase 1
Phase 1+2
Phase 1+2+3
Drilling
3 000 000 €
11 900 000 €
17 800 000 €
Execution
8 375 000 €
10 275 000 €
12 575 000 €
Total Investment Cost
11 375 000 €
22 175 000 €
30 375 000 €
Yearly Net Income
Phase 1
Phase 1+2
Phase 1+2+3
Heat Amount
40 000 GJ
250 000 GJ GJ
Revenues
Sale price: 2500 HUF/GJ
€/year
€/year
€/year
Expenditures
601 000 €/year
1 388 000 €/year
2 006 000 €/year
Operating income € € €
Discount rate is less than 15%
The project is feasible, if the following criteria can be fulfilled
Sale Price: greater than 2500 HUF OR
Financial Results with 15% discount rate
Subsidy
Sale price:
2500 HUF/GJ
20%
NPV €
IRR
20,8 %

11. Overview of the workplan
1: Management
2: Preliminary studies
3: Licensing and permitting
4: Technical and financial engineering of the geothermal plant and system
5: Procurement
6: Financing
7: Communication
8: EACI Dissemination Activities

12. Partners & Contacts Name of the beneficiary Contact person E-mail
Municipality of Kecskemét
Kecskemét Megyei Jogú Város Önkormányzata
Zoltán BALOGH
EU-FIRE Ltd.
EU-FIRE Kft.
Péter KOVÁCS
Project Company (KTRB)
Kecskeméti Termálrendszer Beruházó Kft.
Imre KOVÁCS