1. Lina Murauskaitė New Challenges in the European Area: Young Scientist’s 1st International Baku Forum May 20-25, 2013, Azerbaijan, Baku Integration of Renewable Energy Sources in Infrastructure of District Heating for Sustainable Development of Cities LABORATORY OF REGIONAL ENERGY DEVELOPMENT

2. Lina Murauskaitė 2 Introduction  In recent years, the consumption of fossil fuel and the mitigation of climate changes have become major challenges for governments all over the world. To engage these challenges, many countries are pursuing the research, development, and demonstration of renewable energy sources  During the last few years, political support for renewable energies has been growing continuously both at the national and international level.  The increased use of renewable energy sources in the heat market can significantly alleviate the negative effects of high-energy costs on the national economy.

3. District heating system Lina Murauskaitė 3

4. District heating  District heating infrastructure is suitable for reaching strategic energy targets  security of energy supply,  reduction of environmental pollution,  diversification of fuel,  municipal waste utilization possibilities for heat and electricity generation,  integration of industrial excess heat to district heating networks.

5. Community energy diagram Lina Murauskaitė 5

6. Situation after 2006  Looking at the renewable energy use after 2006, it was a natural gas price boom, increase of social and political pressure for fast developments in clean energy, and financial crisis, which requires adequate government measures to stimulate the economy. Lina Murauskaitė 6

7. Prices of fuel for district heating Lina Murauskaitė 7

8. Natural gas vs Biomass Lina Murauskaitė 8 Natural gas

9. Impact of legal regulation (1)  Legal regulation became an important tool to diversify energy supply, to reduce air pollution and to meet targets of sustainable development.  Sustainable development model guarantees to the present generation the ability to meet our needs without detriment the ability of future generations.  The main factor limiting further renewable energy growth in district heating is high investment costs and constraints of legal regulation.

10. Impact of legal regulation (2)  Despite the government policy efforts, accepted legislated base and programs for enhancement of the use of renewable energy sources, due to expensiveness of alternative energy technologies and various constraints, total contribution to development is not impressive.  More effectiveness can be obtained on cooperation with other countries.

11. District heating in Lithuania  Lithuanian district heating system has been developed during planned economy times, and problems of district heating sector are a heritage of planned economy.  This is one of the most threatening economic and social problems at the moment.  Social policy decisions with unstable energy policy distort market signals to the consumers.

12. Importance of renewable energy  The European Union's policy stimulates changes in heating sector.  The Renewable Energy Sources Directive 2009/28/EC translates binding targets into a legislative framework.  Renewable energy development in district heating that is encouraged by laws requires large investments.

13. Savings: Networks vs Renovation of buildings Lina Murauskaitė 13 Modernization of district heating networks Renovation of apartment buildings Modernization of district heating networks mln. litas per year

14. Lina Murauskaitė 14 Thank you for your attention

15. Lina Murauskaitė New Challenges in the European Area: Young Scientist’s 1st International Baku Forum May 20-25, 2013, Azerbaijan, Baku Integration of Renewable Energy Sources in Infrastructure of District Heating for Sustainable Development of Cities LABORATORY OF REGIONAL ENERGY DEVELOPMENT