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DISTRICT ENERGY RAPID ASSESSMENTS

CHILE

PRELIMINARY STUDY ON THE POTENTIAL OF DISTRICT

ENERGY IN FIVE CITIES IN CHILE

Developed by Tractebel for the District Energy in Cities Initiative

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Important Note:

The results of the present document correspond to a “rapid assessment” study level depth. The engineering is conceptual

and financial inputs (CAPEX and OPEX) correspond to preliminary and non-binding data provided by third parties.

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CONTEXT

Heating, cooling and hot water represent approximately 60% of the energy demand in buildings

worldwide. There is an urgent need to optimize demand and move towards energy sources that

are consistent with global climate and energy target and ambitions. However, even with demand-

side reductions in buildings, cities will still have significant demand for heating and cooling from

the building and other sectors. This would need to be supplied from efficient, low-carbon or

renewable/waste heat sources. District energy systems create synergies between the supply and

demand of heating, cooling, domestic hot water and electricity and can be integrated with other

municipal services such as sanitation, sewage treatment, transport and waste, meaning that

heating and cooling can be low-carbon and energy-efficient, hence maximizing the integration of

local renewable resources.

District Energy Systems provide the opportunity to make use of low-quality thermal energy (waste

heat) to supply buildings with heating, cooling and hot water services. Such schemes have the

potential to enable high levels of affordable renewable energy supply through economies of scale,

diversity of supply, balancing supply against demand and storage. This makes district energy a

key measure for cities/countries aiming to achieve 100% renewable energy (carbon neutral)

targets.

The District Energy in Cities Initiative is a multi-stakeholder partnership coordinated by UN

Environment, with financial support from the Danish International Development Agency

(DANIDA), the Global Environment Facility, the Italian Ministry of Environment and Protection of

Land and Sea, and the Kigali Cooling Efficiency Programme with the goal of accelerating the

transition of cities in emerging economies and developing countries to low-carbon, climate-

resilient societies through modern district energy systems.

The Initiative was launched at the Climate Summit in September 2014 as one of the six

accelerators of the “Sustainable Energy for All” Platform. The Initiative supports market

transformation efforts to shift the heating and cooling sector to energy efficient and renewable

energy solutions. The Initiative aims to double the rate of energy efficiency improvements for

heating and cooling in buildings by 2030, thereby enabling these countries to meet their climate

and sustainable development targets.

The Initiative provides technical assistance to local and national governments that wish to

develop, retrofit or scale-up district energy systems. It also facilitates peer-to-peer learning

through partnering opportunities by partnering cities, investors, and the private sector, while

advocating the policy and regulatory-enabling environment that can attract private sector

investment. The Initiative and its partners are currently providing technical support to cities in four

“Pilot” countries (Chile, China, India and Serbia) and eleven “Replication” countries (Argentina,

Bosnia and Herzegovina, Colombia, Egypt, Malaysia, Mongolia, Morocco, Russia, Seychelles,

Tunisia and Ukraine).

The Initiative’s approach to create a market for district energy includes:

• Increasing awareness of the potential of district energy and its role in achieving

multiple socio-economic and environmental benefits;

• Demonstrating viability through the implementation of a pilot project;

• Creating a supportive regulatory framework to foster private sector investment and

ensure implementation;

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• Replicating the approach in different cities in the same region to foster industry

growth;

• Exchanging experiences between city/country partners on district energy innovation

and best practice through a “Cities for Cities” twinning process.

In some Chilean urban areas, 94% of air pollution is attributed to wood burning for heating single-

family homes [1]. During winter, the levels of particulate matter (PM2.5 and PM10) exceed the

threshold of emissions established by the country [2]. Due to its direct impact on health, Chile is

actively looking into alternative technologies capable of tackling the problem and improving the

quality of life for the citizens living in these highly polluted cities.

The Chilean government is developing environmental strategies such as local decontamination

plans (“PDAs”), as well as energy strategies such as the promotion of energy efficiency and

renewable energies, that further encourage the implementation of alternative clean heating

technologies such as district energy. In particular, district energy is mentioned in the National

Energy Route 2019-2022 [3], which under “Special Actions” section, includes:

• Developing information tools to encourage the generation of district energy projects.

• Developing a favorable regulatory framework.

• Implementing district energy demonstration projects.

The implementation of the District Energy in Cities Initiative is aligned with the national energy

strategy and contributes to supporting the country in the achievement of these goals [4]. The

Chilean Government developed a framework law on climate change that defines carbon neutrality

as a national goal by 2050, the Initiative support accelerating the transition of cities in emerging

economies and developing countries to low-carbon, climate-resilient societies through modern

district energy systems.

Chile is one of the four pilot countries of the District Energy in Cities Initiative. As such, the country

is receiving tailored technical assistance and guidance to define a district energy strategy and

initiate a market with the goal of addressing air pollution issues in major cities. For this purpose,

10 cities have been selected to receive “light touch” support, which consists of a city-wide

preliminary assessment to identify potential areas for the development of district heating and

cooling projects. For the implementation of activities, the Initiative counts with the support and

collaboration of the Ministry of Energy and the Ministry of Environment.

The Initiative’s goal is to accelerate investment in district energy systems and enable the

development of a circular energy economy. The basic aim of the Initiative is to increase the

stakeholder’s awareness, demonstrate the viability of the process, create the appropriate

regulatory framework, create a district energy assessment methodology, and finally, to share the

different experiences amongst developers.

This study falls under the framework of implementation of the District Energy in Cities Initiative

and is part of the technical assistance that is being provided to the Municipalities of Santiago,

Renca, Independencia, Recoleta and Coyhaique to identify and enable the development of a

district energy demonstration project. This report compiles the results obtained from the rapid

assessments undertaken by Tractebel Engineering for these five cities. Starting by evaluating

energy consumption patterns in each city, the study analyzes the local and national regulatory

framework to identify three areas in each city with high potential for the development of district

energy projects. From the three pre-selected areas, one is selected to conduct a pre-feasibility

analysis of a demonstration project. The selection of the demonstration project has been done in

coordination with the local authorities.

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Following the District Energy in Cities Initiative’s approach, rapid assessments are preliminary

studies that help cities identify potential areas for the development of district energy

demonstration projects. A more detailed techno-economic feasibility analysis should follow to

advance towards the project procurement phase.

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MAIN LEARNINGS AND RECOMMENDATIONS FOR CITIES

This section highlights the main learnings and recommendations for cities in Chile willing to

explore opportunities to develop a district energy project. These recommendations are based on

the learnings obtained through the process of development of the five district energy rapid

assessments compiled in this report, and the consultations with local and national stakeholders

that took place along this process.

✓ Create a local coordination group or establish a local district energy coordination

committee: The engagement of local authorities is key to set the local framework and

strategy for the correct development and success of district energy in the city.

Establishing a local district energy committee or a multi-stakeholder coordination working

group led by the Municipality helps coordinate the efforts between different stakeholders

at local, regional and national level to accelerate the development of the first projects. It

can facilitate data collection, access to project finance and coordination for the project

procurement. The engagement of local authorities/municipalities is crucial to guarantee

that the demonstration projects are integrated into the city’s overarching urban

development strategy and attain the city’s environmental targets.

✓ Start by performing a city-wide analysis: Cities willing to develop district energy in

Chile are highly recommended to start by performing a city-wide analysis to pre-define a

short, medium and long-term strategy in lieu of starting by directly studying a specific

project. This recommendation is especially important for those cities willing to develop

district heating as alternative technology to woodstoves and aiming to reduce air pollution,

which is the case for most cities in Central and Southern Chile. Through district energy

systems, a particulate matter offset bank and a CO2 compensation mechanism could be

easily established. This would support the district energy market to mature and reach

decontamination goals. Starting by a city-wide analysis will allow identifying the optimum

size, location and business model of the demonstration project that will best help fulfilling

the long-term city strategy and achieving the goals in terms of air pollution, energy

efficiency, or integrating local renewable sources.

✓ Identify the optimum demonstration project for district heating: Most of the local air

pollution is created by the burning of wood in old and inefficient woodstoves A large

percentage of the fuel (wood) that is currently used contains a high level of humidity, what

even more decreases combustion efficiency and besides hard particulates as PM 2.5 and

PM 10 produces other much more dangerous substances as formaldehydes and etc. It is

in residential areas where most of these woodstoves are used and where district heating

can have a higher impact on improving air quality. However, these areas tend to be less

dense occupied, the area may have lower energy demand and are therefore less

financially attractive for a district heating investor. A holistic approach that integrates

highly polluted residential areas into the business model is key to ensure that these areas

are not left behind, that air quality goals are achieved, and that social benefit is

maximized. In a new market for district energy, as it is Chile, the first projects developed

in a city are crucial to set economic expectations for investors and lead the path towards

an inclusive and sustainable future development of the network. Bankable projects

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focusing only on high-energy demand and financially most attractive areas would hinder

the further development of the networks towards less energy-demand areas where district

heating can have a major impact on air pollution. The connection of both, anchor clients

(e.g. hospitals, public buildings, schools, kindergartens) and residential areas with

different building typologies (multi-storage buildings, individual houses) and economic

backgrounds can amplify the benefits from a social perspective without affecting

negatively the project finances or the energy price paid by clients.

✓ Explore the potential of developing district cooling: cooling demand is increasing in

Chile and around the world driven by heat waves, population growth, urbanization and a

growing middle class. Cities in Santiago Metropolitan Area and the North part of the

country may explore the potential of developing district cooling systems instead of

installing individual cooling devices, especially in commercial buildings, office buildings,

hospitals, hotels, museums or public buildings with high cooling demand. District cooling

is a well proven technology with multiple benefits including: reducing primary energy

consumption by up to 50%, reducing peak electricity consumption thanks to the use of

thermal storage, reducing refrigerants emissions and therefore help the country comply

with the Paris Agreement and the Kigali Amendment to the Montreal Protocol, enables

the use of “free cooling” sources such as seas, lakes or rivers. The technical opportunity

to integrate cogeneration or trigeneration may positively increase the attractiveness of

the district cooling development. The rapid assessments performed in Santiago, Recoleta

and Independencia and summarized in this report have identified potential for

development of district cooling in the Metropolitan Area of Santiago. It is recommended

to deepen into the techno-economic feasibility of the identified areas with a detailed

feasibility study that may lead to the preparation of a project procurement plan if the

projects are found to be bankable.

✓ Prioritize the use of local and low-carbon emission energy sources: District energy

presents a unique opportunity to benefit from economies of scale, enabling a more

diverse energy generation mix that optimizes local energy resources and benefits from

the different building typologies. It is also the only technology that enables the utilization

of “waste heat” and “free cooling” for heating and cooling supply. Benefits of district

energy include:

• Air pollution reduction (PM, GHG);

• Access to a cleaner and safer energy source;

• Reduce energy poverty;

• Optimization of available local energy sources;

• Support renewable and high quality biomass market formalization;

• Integration and balancing of larger amounts of renewable energy sources;

• Utilization of low temperature heat sources and waste heat;

• Share of costs (land, network, generation technologies);

• Incorporation of prosumers;

• Increase of overall energy efficiency (lower primary energy demand)

• Increase the livability of cities;

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• Stronger collaboration between public and private sectors through the different

business models available;

• Reduction of uncertainty allowing access to financial institutions;

• Optimization of other sectors through existing synergies (power sector,

transportation, water).

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Table of Contents

CONTEXT ..................................................................................................................................... 3

MAIN LEARNINGS AND RECOMMENDATIONS FOR CITIES ................................................... 6

ABREVIATIONS .......................................................................................................................... 14

1. INTRODUCTION ................................................................................................................... 15

1.1. What is a District Energy System (DES)? ............................................................. 15

1.2. Benefits of the District Energy Systems ............................................................... 17

1.3. Important considerations for the identification of a feasible district energy project ....................................................................................................................... 18

2. OBJECTIVE, SCOPE AND METHODOLOGY ..................................................................... 19

2.1. Objective and scope ............................................................................................... 19

2.2. Methodology ............................................................................................................ 19

2.2.1. Data collection and mobilization of local authorities ..................................... 19

2.2.2. Institutional context analysis ......................................................................... 20

2.2.3. City characterization and selection of showcase projects ............................ 20

2.2.4. Pilot project pre-feasibility analysis .............................................................. 21

3. NATIONAL CONTEXT ANALYSIS ....................................................................................... 22

3.1. Renewable and waste energy sources ................................................................. 22

3.1.1. Incineration plant .......................................................................................... 22

3.1.2. Geothermal – Ground Source heat exchanger ............................................ 23

3.1.3. Solar Thermal ............................................................................................... 24

3.2. Policy, Economic, Socio-Cultural and Technology analysis .............................. 24

3.2.1. Political 25

3.2.2. Economic ...................................................................................................... 29

3.2.3. Social 33

3.2.4. Technical ...................................................................................................... 37

3.3. Public National Goods Permit Process ................................................................. 39

4. COYHAIQUE ......................................................................................................................... 42

4.1. City characterization ............................................................................................... 42

4.2. Heating and cooling demand ................................................................................. 46

4.3. City plans and strategies ........................................................................................ 49

4.4. Stakeholders mapping ............................................................................................ 50

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4.5. Selection of showcase projects ............................................................................. 51

4.5.1. High Potential Site 1 – Downtown ................................................................ 51

4.5.2. High Potential Site 2 – Escuela Agrícola ...................................................... 52

4.5.3. High Potential Site 3 – Quinta Burgos .......................................................... 53

4.5.4. Decision Matrix ............................................................................................. 54

4.6. Pre-feasibility study ................................................................................................ 55

4.6.1. Technical analysis ........................................................................................ 55

4.6.2. Economic analysis ........................................................................................ 62

4.6.3. Tariff models ................................................................................................. 71

4.6.4. Selected option ............................................................................................. 73

4.6.5. Project business model and financing opportunities .................................... 74

4.6.6. Comparison of the business as usual scenario with the selected district energy alternative ......................................................................................... 75

4.6.7. Evaluation of potential district heating expansion plan ................................ 76

4.6.8. Conclusion and key results ........................................................................... 77

4.6.9. Recommendations and Next steps .............................................................. 78

5. SANTIAGO ............................................................................................................................ 81

5.1. City characterization ............................................................................................... 81

5.2. Heating and cooling demand ................................................................................. 84

5.3. City plans and strategies ........................................................................................ 86

5.4. Stakeholder Mapping .............................................................................................. 88

5.5. Selection of showcase projects ............................................................................. 88

5.5.1. High Potential Site 1 – Torres de San Borja ................................................. 89

5.5.2. High Potential Site 2 – Municipality .............................................................. 90

5.5.3. High Potential Site 3 – Estación Mapocho ................................................... 91

5.5.4. Decision Matrix ............................................................................................. 92

5.6. Pilot project pre-feasibility analysis ...................................................................... 93

5.6.1. Technical analysis ........................................................................................ 93

5.6.2. Economic analysis ...................................................................................... 102

5.6.3. Tariff models ............................................................................................... 109

5.6.4. Selected Option .......................................................................................... 111

5.6.5. Project business model and financing opportunities .................................. 112

5.6.6. Comparison of the business as usual scenario with the selected district energy alternative ....................................................................................... 113

5.6.7. District network expansion plan .................................................................. 114

5.6.8. Conclusion and key results ......................................................................... 115

5.6.9. Recommendations and Next steps ............................................................ 116

6. RENCA ................................................................................................................................ 119

6.1. City characterization ............................................................................................. 119

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6.2. Heating and cooling demand ............................................................................... 122

6.3. City plans and strategies ...................................................................................... 124

6.4. Stakeholder mapping ............................................................................................ 125

6.5. Selection of showcase projects ........................................................................... 126

6.5.1. High Potential Site 1 – Municipality Sector ................................................. 126

6.5.2. High Potential Site 2 – West Sector ........................................................... 127

6.5.3. High Potential Site 3 – Central Nueva Renca ............................................ 128

6.5.4. Decision Matrix ........................................................................................... 129

6.6. Pilot project pre-feasibility analysis .................................................................... 130

6.6.1. Technical analysis ...................................................................................... 130


6.6.3. Tariff models ............................................................................................... 145



6.6.1. Conclusions and key results ....................................................................... 148

Recommendations and Next Steps ............................................................ 149

6.6.2. 149

7. INDEPENDENCIA ............................................................................................................... 152

7.1. City characterization ............................................................................................. 152


7.3. City plans and strategy ......................................................................................... 157



7.5.1. High Potential Site 1 – Hospitals sector ..................................................... 159

7.5.2. High Potential Site 2 – Centro deportivo estadio municipal Juan A. Rios .. 161

7.5.3. High Potential Site 3 – Hipódromo ............................................................. 162

7.5.4. Decision Matrix ........................................................................................... 162




7.6.3. Tariff models ............................................................................................... 180

7.6.4. Selected Option .......................................................................................... 182





7.6.9. Recommendations and Next Steps ............................................................ 187

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8. RECOLETA ......................................................................................................................... 189

8.1. City Characterization ............................................................................................ 189


8.3. City plans and strategies ...................................................................................... 194



8.5.1. High Potential Site 1 – Hospitals sector ..................................................... 196

8.5.2. High Potential Site 2 – Bellavista ............................................................... 197

8.5.3. High Potential Site 3 – Municipality sector ................................................. 198

8.5.4. Decision Matrix ........................................................................................... 199




8.6.3. Tariff models ............................................................................................... 216

8.6.4. Selected Option .......................................................................................... 218





8.6.9. Recommendations and Next steps ............................................................ 222

9. BIBLIOGRAPHY.................................................................................................................. 225

10. APPENDICES ..................................................................................................................... 231

10.1. APPENDIX A – DEGREE DAY ............................................................................... 232

10.2. APPENDIX B – DECISION MATRIX ...................................................................... 243

10.2.1. Introduction ................................................................................................. 243

10.2.2. Santiago 244

10.2.3. Renca 247

10.2.4. Independencia ............................................................................................ 251

10.2.5. Recoleta 255

10.2.6. Coyhaique ................................................................................................... 258

10.3. APPENDIX C – PEST ............................................................................................. 262

10.4. APPENDIX D – ECONOMIC ANALYSIS ............................................................... 264

10.4.1. Santiago 264

10.4.2. Renca 301

10.4.3. Independencia ............................................................................................ 333

10.4.4. Recoleta 367

10.4.5. Coyhaique ................................................................................................... 399

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ABREVIATIONS

AC : Air Conditioning

BAU : Business as Usual

BCFM : Base Case Financial Model

C2E2 : Copenhagen Centre for Energy Efficiency

CESCO Economic Council and Social Committee

CAPEX : Capital Expenditures

COP : Coefficient of Performance

DCS : District Cooling System

DES : District Energy Systems (may include Heating and Cooling)

DHS : District Heating System

EFLH : Equivalent Full Load Hours

ESCO : Energy Service Company

GORE : Regional Government

HVAC : Heating Ventilation and Air-Conditioning

IRR : Internal Rate of Return

MINVU : Ministry of Housing and Urban Planning

NPV Net Present Value

O&M : Operations and Maintenance

OPEX : Operational Expenditure

PEST : Political, Economic, Social and Technical

PLADECO : City Development Plan

SDG : Sustainable Development Goals

SEC : Fuel and Electricity Superintendence

SEforALL : Sustainable Energy for All

SERVIU : Housing and Urban Service

TCO : Total Cost of Ownership

UN : United Nations

VAT : Value- Added Tax

WHO : World Health Organization

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1. INTRODUCTION

Chile is one of the four pilot countries of the District Energy in Cities Initiative. As such, the country

is receiving tailored technical assistance and guidance to define a district energy strategy and

initiate a market with the goal of addressing air pollution issues in major cities. For this purpose,

10 cities have been selected to receive “light touch” support which consists of a city-wide

preliminary assessment to identify potential areas for district energy in the city. For the

implementation phase in Chile, the Initiative counts on the support and collaboration of the

Ministry of Energy and the Ministry of Environment.

The Initiative’s goal is to accelerate investment in district energy systems and enable the

development of a circular energy economy. The basic aim of the Initiative is to increase the

stakeholder’s awareness, demonstrate the viability of the process, create the appropriate

regulatory framework, create a district energy study protocol, and finally, to share the different

experiences amongst developers.

These assessments fall under the framework of implementation of the District Energy in Cities

Initiative and is part of the technical assistance that is being provided to five Municipalities to

enable the development of a district energy demonstration project. The aim of this study is to

assess the district energy potential in five cities, identify potential areas, constraints and policy

analysis, and to undertake a pre-feasibility study. The detailed objectives are described in Section

2.1: Objective and scope.

1.1. What is a District Energy System (DES)?

The simplest definition of a district energy system is a centralized thermal system connected to a

piping network distributing heat and/or coolth to different buildings. A visual demo of a complex

system can be seen in Figure 1-1.

Figure 1-1 – Complex district energy system [5]

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Heat can be distributed as either hot water or steam, depending on the energy sources available

and the client’s requirements. The cleanest way to produce heat is to use energy from waste

(residual waste recovery), renewable resources (biomass, biogas, geothermal) or from combined

heat and power (CHP) plants, also called cogeneration.

In the case of a cooling system, cold is typically produced by high efficiency chillers (electrical or

absorption chiller) or via free cooling from natural resources (cold water from sea, rivers and lakes

nearby).

The surplus thermal energy, in the form of hot water, can be stored in tanks to be used during

peak hours, providing resiliency and price stability to the consumers.

A district heating and/or cooling system has the following main components:

• The heat and/or cold production plant.

• The main piping network that transfers the heat/cold energy to the consumers.

• The energy transfer stations (installed inside the connected buildings).

• Energy storage tanks (if applicable).

Figure 1-2 – Sample District cooling system [5]

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1.2. Benefits of District Energy Systems

UN Environment initiated research in 2013 on low-carbon cities worldwide in order to determine

key factors that lead to their success in increasing energy efficiency and the uptake of renewable

energy, hence reaching the targets for zero or low greenhouse gas emissions. District energy

systems harness local resources to supply energy locally at an affordable price with low-carbon

emissions. They provide the opportunity to open pathways for cities regarding climate resilience,

resource efficiency and to low carbon emissions.

To address the environmental challenges in energy, transport, buildings and the industry it is

essential to adopt a “systems thinking” approach to find solutions capable of integrating the

different urban energy systems while improving energy efficiency and enabling the integration of

higher rates of renewables. Approaching the energy transition will require intelligent use of

synergies, flexibility in demand, and energy storage solutions across diverse economic sectors,

along with changes in governance approach. The development of modern and affordable district

energy systems in cities is one of the lowest cost and most efficient solutions for reducing

greenhouse gas emissions and primary fossil fuel demand. Developing such systems and

implementing energy efficiency policies could potentially achieve as much as 58% of the required

CO2 emission reductions in the energy sector by 2050 to keep global warming within 2-3oC.

Hereunder, some of the benefits of district energy systems are described [6].

• Greenhouse gas emissions reductions. Moving away from fossil fuel consumption

can lead to between 30% and 50% reduction in primary energy use.

• HFC emissions reduction. District cooling reduces the consumption of

environmentally damaging refrigerants such as hydro chlorofluorocarbons (HCFCs)

and hydro fluorocarbons (HFCs).

• Air pollution reductions. By reducing fossil fuel use, district energy systems can

lead to reductions in indoor and outdoor air pollutants such as SOx, NOx and PM

2.5.

• Energy efficiency improvements. Linking the heat and electricity generation

through district energy infrastructure and utilizing low-grade energy sources, such

as waste heat or free cooling, can greatly improve the operational efficiency of new

or existing buildings.

• Use of local and renewable resources. District energy systems are amongst the

most effective mechanisms for integrating renewable energy sources into the

heating and cooling sectors. This is achieved mainly through economies of scale and

the use of thermal storage. Furthermore, district energy schemes enable a higher

uptake of renewable power generation through balancing.

• Resilience and energy access. District energy systems have the capability to

improve the management of electricity demand, decreasing the risk of brownouts

and the ability to better adapt to stresses such as fuel price shocks.

• Green economy. District energy systems enable cost savings by avoiding (or

deferring) investment in power generation infrastructure and peak capacity supply

issues. Other economic benefits include the creation of wealth as a result of the

reduction in fossil fuel expenditure, generation of local tax revenues, creation of

employment in system design, construction, equipment manufacturing and operation

and maintenance of the plants.

• Price stability: Energy prices are more stable throughout the year as the energy

sources can be diversified. District energy allows the combination of different

sources, such as biomass and surplus electricity from wind and solar generation,

among others.

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• Demand Response (DR): District energy systems enable peak shaving by shifting

energy use when electricity is cheap. This is achieved through thermal storage,

demand side control and weather forecasting integration.

• Simplicity: Clients do not need complex installations of boilers and chillers (less

space required and simpler installations). Hospitals, hotels and business in general

can focus on their core activities by considering heating and cooling as a utility

service.

1.3. Important considerations for the identification of a feasible district energy project

In order to build a successful district energy business model, the following aspects should be

carefully observed:

• Energy density (ratio between annual energy demand and linear piping length);

• Key clients or anchor loads which could guarantee energy demand at the start of

the project;

• Local government awareness, support and motivation with the project (with city

master plans aligned with the piping network);

• Low fuel costs compared to the end users’ costs;

• Possibility to integrate renewable or waste energy resources available locally;

• Client diversity, i.e. different energy demand profiles to increase plant capacity

factor in order to avoid equipment oversizing and plant redundancy.

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2. OBJECTIVE, SCOPE AND METHODOLOGY

2.1. Objective and scope

This report compiles results of the city-wide rapid assessments on district energy undertaken in

the cities of Santiago, Renca, Independencia, Recoleta and Coyhaique. The objectives of a city-

wide district energy rapid assessment are:

• Estimate the city’s district energy (heating and cooling) potential.

• Identify a technical solution to decrease air pollution in the city through district

energy.

• Estimate air pollutants emissions reductions achievable with district energy

compared to a business as usual scenario.

• Identify economic factors, benefits, barriers, policy and regulatory requirements for

the implementation of district energy projects.

• Identify a potential project to develop district energy in the city.

• Perform a pre-feasibility (technical and economic) study of a potential project.

• Propose a feasible business model.

• Provide recommendations on policy, regulatory and financial instruments required to

overcome barriers to district energy and to create a district energy market in Chile.

• Present a comparison of customer utility costs today, against those achievable

through the implementation of district energy.

2.2. Methodology

The methodology comprises:

• Data collection and mobilization of local authorities

• Institutional context analysis

• City characterization and selection of priority areas and pilot projects

• Pilot project technical and economic pre-feasibility study

2.2.1. Data collection and mobilization of local authorities

The first step is to collect information to be utilized for estimating thermal energy demand,

available local energy resources, weather patterns and local environmental conditions. The

following data is collected:

• Identify potential and key energy consumers and the consumer type (residential,

public/office, commercial, industry and others).

• Identify energy consumption and demand profile for every consumer type.

• Local weather conditions.

• Data collection from key clients using interview forms.

• Energy demand data from utilities.

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• Air pollutants related to every customer group.

• Potential primary energy sources (waste heat, geothermal, renewable resources,

etc.).

During this phase, several meetings were held with local authorities and stakeholders to raise

awareness, look for synergies and to engage local stakeholders in the project.

2.2.2. Institutional context analysis

Regulatory and institutional barriers are analyzed, covering tax policy, political, local government

capacity, regulatory, planning and stakeholder coordination, which may influence the

development of district energy.

In addition, a tariff model structure based on the economic model is given following recognized

standards and best experiences worldwide.

2.2.3. City characterization and selection of showcase projects

With the collected information a city characterization is made to identify a potential project(s)

within the evaluated area. This includes:

• Site conditions (weather, geography, social context, energy density);

• Availability of renewable and waste energy sources;

• Estimation of the city’s growth potential;

• Total annual energy demand of the city for heating and hot water;

• Estimation of the total cost of ownership (TCO) of standalone heating/cooling

systems (standard decentralized solution). This estimation is used for a preliminary

analysis of the financial competitiveness of district energy and to estimate the

minimum size of an economically viable district energy project;

• Selection of three (3) potential areas based on the energy density, future projects

and local considerations;

• Following a decision matrix methodology, the three (3) potential areas are ranked in

order to identify the highest potential area in the city. This decision is then presented

to local authorities for validation, before proceeding with the pre-feasibility study;

• The criteria to select the area with the best conditions to develop a district energy

network is shown in a Decision Matrix detailed in Figure 2-1. The weight for each

criterion was identified using previous Tractebel-Engie experience, UN Environment

District Energy Good Practice Guide and District Energy Manuals. Seven weighting

points (WP) were selected for the analysis, as shown in Figure 2-1¡Error! No se

encuentra el origen de la referencia.. More information regarding the Matrix can

be found in APPENDIX B – DECISION MATRIX.

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Figure 2-1 Decision Matrix factors propose by Tractebel

2.2.4. Pilot project pre-feasibility analysis

The pre-feasibility study addresses technical and economic aspects.

The technical aspects cover the following:

• Estimation of the heat/cold peak demand, load factor, load profile, total annual

energy consumption per year

• Definition of a preliminary layout of piping route and location of main clients and the

district energy plant

• Conceptual sizing of equipment

• System description (plant, piping network and final user interfaces)

• Future expansions

• Estimation of emissions mitigation by the installation of an energy district

• The economic aspects compromise:

• Project economic analysis: cash flow, IRR, NPV, cold/heat energy tariff structure,

fuel cost, CAPEX, OPEX, other costs

• Sensitivity analysis for CAPEX reduction

ENERGY AVAILABILITYKEY CLIENTS

BUILDING DIVERSITY

GEOGRAPHICAL CONSTRAINTS

ENERGY DENSITY

(COOLING)

URBAN PLAN FUTURE

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3. NATIONAL CONTEXT ANALYSIS

3.1. Renewable and waste energy sources

District energy systems have the capability to increase the overall efficiency of other energy

systems by recycling heat losses from a variety of energy conversion processes that would

normally need a cooling system to cool down the process fluids. Unutilized heat may be recovered

and used to meet thermal demands in nearby buildings. Renewable sources, which would be

difficult to use otherwise, such as many forms of biomass, thermal solar and geothermal energy,

can also be used. The use of these energy sources is explored in this section.

As shown in Figure 3-1 , the energy sources for a district energy system can be very diverse,

including: industrial surplus heat, biomass, geothermal, wind, CHP biomass, CHP waste to

energy, solar, CHP biogas, heat pumps and others.

Figure 3-1 – Different energy sources [7]

3.1.1. Incineration plant

Among waste-to-energy technologies, incineration stands at the top. It is thought that in the near

future this type of process will have the potential to meet the city’s heat demand as well as provide

a solution for the lack of space to dispose waste.

Incineration is the process of burning waste material to produce heat and to simultaneously

reduce the waste volume produced by the city by 95% - 96% [8]. In the past, incineration was

conducted without separating the feed waste materials thus causing harm to the operators’ health

and well-being. Most of such incineration plants never generated electricity.

Modern incineration systems are employed only after an exhaustive recycling process has taken

place and recyclable material has been duly separated. Incineration or thermal treatment of non-

recyclable waste is popular in countries such as Japan where there is scarcity of land. Using the

energy generated by incineration is also prevalent in countries such as Denmark and Sweden [8].

In Chile, a study concluded that a Waste-to-Energy plant could be economically feasible, with an

installed capacity of 330,000 tons/years and a power output of 20 to 29 MW [9].

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There are multiple examples of waste to energy plants used as energy source for a district heating

or cooling network, including the Syctom waste to energy plant in Paris and the Tersa waste to

energy plant in Barcelona. These plants are often situated in the proximity of city centers and

hence follow strict environmental controls that require the installation of powerful air filters and an

emissions monitoring system to minimize the emissions.

Figure 3-2 - Syctom waste to energy plant in Paris

3.1.2. Geothermal – Ground Source heat exchanger

In general, this technology uses the earth crust to warm or cool a fluid. The soil naturally stores

atmospheric heat and the heat flowing from the basement rock can be exchanged with the system

and kept at a constant temperature.

One key aspect of this technology is the low thermal conductivity of the soil which keeps the

temperature stable or even constant and therefore it is not affected by the daily and seasonal

atmosphere variations. The thermal energy stored in the ground can be extracted using a Ground

Source Heat Exchanger, which uses different techniques to increase the efficiency of a heat

pump. Some examples are shown in Figure 3-3.

Figure 3-3 – Geothermal example [10]

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Three main technologies exist to take advantage of earth as a heat source, which are:

• Ground source heat pumps.

• Direct use geothermal.

• Deep and enhanced geothermal system.

Some examples in Chile include the “Edificio Parque Titanium”, as well as the “Edificio corporativo

Transoceánico”; both buildings using the heat from 60-meterdeep water wells to meet their energy

requirements [11]. Other buildings that implemented the technology are Colegio Aleman, Puerto

Varas; Mall Portal Osorno, Osorno; INACAP, Puerto Montt; PDI, Puerto Montt and others [12].

Aquifer levels in the city are in general deep, therefore costs are expected to be high [13].

Consequently, this technology is not considered for the demonstration project. As district energy

is validated as an alternative source of heating and cooling, further analysis should be developed

to assess the inclusion of geothermal energy.

3.1.3. Solar Thermal

Solar thermal is the process of recovering solar energy and use it as a primary source of thermal

energy. It is divided into three categories: Active heating, Concentrated Solar Heating system and

Active Solar Cooling.

Active heating uses a fluid to heat water and circulate it through a duct, heated by transfer from

direct solar radiation on the collector panel [10].

Concentrated solar heating system Similar to concentrated solar power systems for electricity

generation, a concentrated solar heater device consists of a concentrator, a receiver and a

transport/storage system [10].

Active Solar Cooling According to EIA, the solar-assisted cooling systems for air-conditioning and

refrigeration are gaining interest as they have reached the near-market stage of development.

This thermally driven process is more complex, thermo-chemical sorption process. Closed

systems including both adsorption and absorption chillers can be used for central or decentralized

conditioning. Open cooling cycles use desiccant and evaporative cooling systems that directly

condition air. A fluid is used to heat water circulated through a duct and heated by transfer from

direct solar radiation on the collector panel [10].

District energy is usually developed in high-density sectors with limited space available, or where

land prices are usually high. This makes the integration of solar technology difficult, and therefore

it is initially discarded from the present analysis.

3.2. Policy, Economic, Socio-Cultural and Technology analysis

This chapter presents a PEST analysis [14], where the Political, Economic, Socio-Cultural, and

Technological context in a business environment are described.

PEST analysis is used for the following applications:

• Spotting business opportunities and giving advanced warning of significant threats.

• Revealing the direction of change within the business environment. This helps to

shape the strategy, such that district energy works with the change, rather than

against it.

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• Avoiding the developing of projects that are likely to fail, for reasons beyond the

company’s control.

• Breaking free of subconscious assumptions when entering a new country, region, or

market since it helps to develop an objective view of this new environment.

3.2.1. Political

POLICY AND REGULATIONS

Chile does not currently have specific regulations targeting the district energy sector. However,

from the analysis performed, we note that the existing regulatory framework does not impede the

development of district heating and cooling networks in Chile.

The Ministry of Energy has a well-established norm on energy generation and is currently working

on the development of specific norms for district energy distribution networks and heating

installations in buildings.

In 2012, the Ministry of Housing in cooperation with the Ministry of Energy developed an

instrument that standardizes energy efficiency information, through the Dwellings Energy Rating.

Dwellings are classified according to their efficiency from A+ to G. Current energy efficiency

construction standard is E, which represents energy savings between 20% and -10% [15].

Opportunities

• High awareness of government institutions at national and local level. The Ministries

of Energy and Environment are fully aware of the social and environmental benefits

of district energy and are working on the development of an enabling framework. All

efforts are focused on the development of a pilot project in the near future.

• Strong international interest raised by different Embassies (Switzerland, Denmark

Finland and Germany). Moreover, there are various governmental initiatives aiming

to encourage the development of district energy, such as the “Manual for District

Energy System development” [16] sponsored by the Ministry of Energy and

Environment in Chile.

Barriers

• Lack of a clear enabling policy and regulatory framework may deter potential

investors.

PUBLIC SCENARIO

The Municipalities follow The Constitutional Organic Law of Municipalities (LOCM) DFL 18,695,

which gives the Municipality the following tasks:

1) To create, approve and write the city development plan, which would meet the regional or national plans.

2) City Planning and regulation should also meet the State’s norms.

3) The city development.

4) To set up the transport and the traffic norms according to the Government guidelines.

5) Waste management within the city.

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In addition, Article 36 establishes that "the city or the national assets for public use, including the

subsoil, under the administration of the city, may be subject to concessions and permits”.

Therefore, a district energy piping network may be subject to public concessions. As such, energy

developers would require government action (and to be accepted by the City Council in a voting

session) to carry out public tenders each time a piping network expansion is required.

Regarding public debt, the Chilean Municipalities are unable to raise funds on the public market,

i.e. to generate public loans on any matter. This is a necessary element for success according to

the Best Practice Guide written by UN Environment [17]. The city has no access to low-cost loans

and cannot successfully secure any grants, other than those provided by the central or regional

government.

Opportunities

• Waste management represents an essential opportunity for integrating a district

heating solution. Waste management is one of the main duties for the Municipality,

and includes organic waste disposal. Currently, two studies are in progress.

• It must be noted that throughout the development of this study, Municipalities have

shown great interest on district energy and thus are likely to support the construction

of a project.

Barriers

• Formally confirm with Municipality whether the construction of underground piping is

subject to public concessions. City Council agreement in a voting session is required

in order to carry out public tenders each time that a piping network expansion is

needed.

• The Municipality is unable to raise funds on the public market.

PIPING NETWORK CONSTRUCTION

The Housing and Urbanism Service (known as SERVIU by its Spanish acronym) is an institution

controlled by the Ministry of Housing and Urbanism (known as MINVU by its Spanish acronym).

SERVIU has the responsibility to verify the final condition of any type of work carried out within

public streets or any assets in public use. SERVIU also has the duty of supervising the paving.

The government institutions are required as key partners of the district developers since the

majority of the piping network will be placed on public areas.

The Code “Standards and Technical Specifications of Paving Works" is a technical guide for

pavement repairs to be carried out once underground works completed.

The intervention and replacement of pavements is a procedure that can only be carried out by

registered contractors. The District Energy operator is not permitted to intervene in any public

space without prior authorization. In addition, the developer must acquire a permit issued by the

Municipality and SERVIU authorizing them to intervene in national assets of public use. Once the

work is finalized, SERVIU examines the construction and issues appropriate approvals according

to their standards. The permit costs depend on the total project costs and are published in the

D.S N°411 [18]. Permit costs represent around 2.5% of the total costs, 10% of which is retained

as a warranty for two years [19].

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District energy is similar to water distribution systems. However, since district energy is not

classified as a sanitation service, it is not subject to the same legal framework. A district energy

and a gas distribution network can then be compared in terms of size, requirements to intervene

in public spaces to lay pipes underground, high capital costs, and the service provided (e.g.

heating and hot water). The main difference is that gas pipes have deflagration hazard and

heating pipes have burning hazard due to their operating temperatures. The gas distribution

service laws [20] could therefore be considered as a reference for the implementation of the first

district energy pilot projects in Chile. The following issues must be addressed:

• Difficulty of obtaining permission to perform underground surveys: In case

that the district energy developer needs to perform an underground

survey/inspection and the competent institutions do not grant permission, the

developer would not have another government institution to resort to obtain this

permit as is the case for gas services. Gas companies can ask the Civil Court of Law

for permission to conduct studies in fiscal, municipal or private lands. The surveys

and studies necessary for the preparation of the final project will depend on the

authorities’ willingness or the third-party’s private interest [20].

• Inability to carry out underground works as other utilities do: The developer

will be unable to open pavements (sidewalks or public roads) to install pipelines

without the permission of the relevant Authorities, especially by the Mayor, SERVIU

and other competent institutions. Furthermore, there is currently no other type of

government authority, such as the Energy Superintendence or an independent

lawyer, to support the initiative or to intervene in any situation, as is practiced in the

Gas Service [21].

Opportunities

• The Ministries of Energy and Environment are preparing a regulatory framework for

the district energy sector.

Barriers

• The timing needed to obtain the permit, the quantity and availability of “registered

contractors” needs to be made clear.

• Critical path (bureaucracy, paper work, costs and timing) has to be made clear before

a developer starts the construction of a district energy project where piping is

required on public areas.

APPLICABLE TECHNICAL NORMS

The following norms may be applicable to the installation of district energy systems:

• DS 48 (Steam boilers and generators, technical norm) - establishes the general

conditions for construction, installation, maintenance, operation and safety regarding

pressure equipment, whether they are mobile or stationary [22].

• DS 160 Gas and Oil storage

• DS 191 Fuel installation certification

• DS 108 Gas storage

• Law 19.300 and Decree 40 establish norm for environmental assessment of new

project.

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Any equipment that requires installation or handling of fuels such as gas and oil shall follow the

Fuel and Electricity Superintendence norms and surveillance (known as SEC by their Spanish

acronym) [23].

It is important to note that any power generation projects above 3 MW, requiring intervention of

subsoil or installed on saturated emission areas, are subject to an Environmental Impact

Assessment (EIA). District energy projects fall under this criteria due to the intervention in the

subsoil.

Opportunities:

• District energy distribution networks represent a less hazardous alternative than gas

networks.

Barriers:

• Uncertainty on the regulations and norms that may impact the installation of a

district energy system (e.g. piping materials, trench sizes, piping depth, proximity

to other installations (buried gas pipe, potable, storm water drainage, electrical

cabling, data/telecom cabling, metro lines, etc.).

GOVERNANCE

Two types of governmental entities have the overall responsibility for the city, namely the Regional

Government (Known as GORE by its Spanish acronym) and the Municipality.

Regional Government

The administration of all provinces is under the responsibility of GORE. The head of the GORE is

the Intendente. They aim to enhance the social, cultural and economic development of the

Region.

Municipality

The Municipality represents the decentralization of central government and is responsible for

residential waste management; social programs; health and education. It is assisted by an

Economic Council and Social Committee (known as CESCO by its Spanish acronym), consisting

of representatives from major community sectors and organizations [24].

MASTER PLAN

The Master Plan is an instrument that is regulated by the Decree DFL N° 458 and provides

guidelines for the urban development of the territory. It is based on the regional development plan

and the city development plan.

Master plan division

The Master Plan is defined under Article 35 as follows:

• A report, providing objectives, goals and action programs.

• The plans must graphically express the provisions on general zoning, equipment,

road connections and junctions, priority development areas, urban extension limits,

densities, etc.

For the purpose of modification and approval, these documents constitute a single legal entity.

As part of their functions, the Municipality shall prepare two reports for the future development of

the city: PLADECO and the Master Plan.

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The City Development Plan: (PLADECO by its Spanish acronym) gives the city development

strategies and guidelines to assist the management of the Municipal Administration.

The Master plan sets out rules that regulate hygiene and safety aspects in buildings and urban

spaces within the City.

ENERGY PLANS/ STRATEGIES: SANTIAGO

Santiago, Renca, Independencia, Recoleta and Coyhaique have issued a detailed Local Energy

Strategy (EEL by its Spanish acronym). This document establishes the city’s energy vision and

provides guidelines on energy policy. The EEL also helps to analyze the energy scenario and

estimates the potential for renewable energy and energy efficiency within the city.

Opportunity

• Municipalities have the opportunity to incorporate district energy into their

development plan, PLADECO, which would facilitate the deployment of the network

in the city.

Barrier

• The successful implementation of a district energy system will depend on a high level

of coordination between the multiple stakeholders involved in the project

development, including local and regional authorities (Intendente, Mayor, GORE,

CESCO, (Departments, Municipality, Regions, Communes, etc.) and urban planning

strategies (PLADECO and Master Plan).This may be considered as a risk by

potential investors.

3.2.2. Economic

In recent decades, Chile has been one of the fastest-growing economies in Latin America. It is

an upper middle-income country with a successful economy based, among others, on a business-

friendly environment. Chile is a pioneer in the liberalization of its energy market, being the first

country to fully liberalize the energy generation sector, in the early 80’s. The country’s highly

liberalized economy is complemented by a strong concession program.

The electricity market is divided into generation, transmission and distribution, all operated by the

private sector, while the government holds a regulatory and supervisory role. Similarly, gas utility

providers are mainly private, with the exception of ENAP who only supplies major industrial

customers. Finally, the private sector holds over 95% of the water utility market [25].

Prices must be examined on case by case basis. For instance, in the electricity market users are

classified as “regulated” or “free customers” based on the power consumption. Pricing varies for

regulated customers, based on different tariff structures and according to their location, while free

customers can negotiate prices with Power Purchase Agreements. Similarly, large customers

have access to better tariff structures in gas utilities sector.

For district energy, existing business models can be classified based on ownership type in three

main categories: public, hybrid public-private or private-owned.

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WHOLLY PUBLIC BUSINESS MODEL

The most common business model used is the “Wholly Public” business model, which implies

that the local government authority or public entity has full ownership and control of the system.

This allows for the development of broader environmental and social objectives. The local

authority receives all the profits from the project, which can subsequently be reinvested in energy

district plans. The state has total control, assumes total risk and is fully exposed to the financial

costs and benefits.

This model would reflect the political desire to control the heating or cooling networks in order to

achieve their environmental goals. Moreover, the model allows the local authority to develop and

pursue other social and environmental policies, such as lowering tariffs for poor households or

imposing renewable energy sources.

Risk & Governance: The local authority builds, owns, takes on the risk and has total control of

the project in this model. The local authority also has the option outsource some of the work by

creating a subsidiary or a so-called Public Special Purpose Vehicle. The Public Special Purpose

Vehicle is a wholly owned subsidiary, but independent from the local authority.

HYBRID BUSINESS MODEL

In the case of district energy projects with attractive returns on investment for the private sector,

the hybrid public-private model may be implemented. The local authority and the private entity

share the ownership of the energy district installations and establish parameters for risk allocation,

agreed on at project’s conception. The model offers the opportunity to introduce more private

capital, while the government has shared control of the project. In this model a vast variety of

options are available, encompassing both private and public financing, design, operation, fuel

supply, day-to-day management and decision-making.

In this model, public and private partnership has the potential to ensure that the project succeeds.

Under this model, the district energy system has a wider range of options to follow, such as: Public

Joint Venture, Concession Contract and Cooperative.

Private/Public Joint Venture:

A Joint Venture is a business entity created by two or more parties, generally characterized by

shared ownership, returns and risks. It involves the creation of a SPV (Special Purpose Vehicle)

with split ownership to reduce administrative burden. A public entity may provide access to lower-

cost debt capital or rent a piece of land within the city. The private entity shall provide the skills

and technical expertise.

Risk & Governance: The risks are shared between the local authority and the private sector

(normally an energy service company ESCO) and the public sector might sign as a key-customer

and guarantee contracts, working on lowering barriers. The private entity shall be responsible of

design, construction and operational risks.

Concession Contract:

The concession is a type of public-private model where the public sector initiates the project,

undertakes initial development and continues to own the assets but contracts with a private sector

as a concession which will run the project for a specified period.

Risk & Governance: In the beginning, all risks from design, construction and operation are

assumed by the public entity. Once the contract is signed, the private entity takes over control.

The contract, however, can be signed at an early stage in order to reduce public risk. Concessions

also allow for a decrease of the developers’ risks, by including for instance a minimum guaranteed

income or subsidy.

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Cooperative:

For simple and relatively low-cost projects, a non-profit organization may involve both Public and

Private sectors in an institution meeting the legal concept. One fiscal benefit is the fact that

cooperatives do not pay VAT among their members.

Risk & Governance: The local authority takes on a large share of risks. Some risks can be

passed to the contractors. An example can be found in Vancouver. Within this business model

the government may also participate through public donations or subsidies. The cooperation

needs to follow the regulation DFL N°5 2003. This legal concept provides for tax exemptions, as

well as the possibility of cooperation with a public entity by means of donations and subsidies.

PRIVATE BUSINESS MODEL

The private sector fully owns, operates and controls the district energy project. The project is

financed through debt and/or equity. Normally the bond yields in these scenarios are higher than

in the previous models. Additionally, a higher rate of return is expected as mentioned above.

Risk & Governance: In this model, the private company carries the risks, although the company

could enter into a Joint Cooperation Agreement with local authorities to mitigate them. This is

known as Strategic Partnership Model. In return, the local authority could benefit from reduced

tariffs.

RISK

Main risks must be mitigated to decrease uncertainty on the economics of a district energy project.

The main risks identified are:

Design Risk: The optimum district energy configuration in the chosen city leads to a low CAPEX

uncertainty. Uncertainty in demand estimations and connection of customers may lead to

oversizing equipment and increased CAPEX.

Construction Risk: Construction delays may be caused by the underground work within the city

which requires several permits and may meet unforeseen subterranean obstruction or

archeological materials which may impact the construction schedule.

Demand Risk: When the systems are built at the same time as the new development it aims to

serve, the market for the project is uncertain (due to the initial demand uncertainty) and will require

real commitment to new projects.

Operational Risk: As a result of poor commissioning and low operational efficiency.

Know-how Risk: The lack of experience and required competences in the project.

Financial Risk: A low interest bond yield is an important point in order to provide a return for the

investors or the tax payers.

Commercial Risk: The tariff model and pricing could be complex. Also, introduction of new more

efficient decentralized/stand-alone technologies might decrease the connection rate, increasing

the project’s risks.

TAX REGULATION

In Chile, there is no specific tax regulation for District Heating and Cooling services. Therefore,

for the purpose of this study, district energy is considered to be subject to the country’s standard

taxation regime.

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The income tax law, under its first Paragraph No. 3 of the Income Tax Law, Decree No. 824,

states:

‘Revenues are taxed from industry, commerce, mining and exploitation of sea

resources and other extractive activities, airlines, insurance companies,

banks, savings and loan associations, fund management companies,

investment or capitalization companies, financial companies and others of

analogous activity, construction, journalism, advertising, broadcasting,

television, automatic processing of data and telecommunications’ . [26]

The above implies that the commercialization of district energy should be subject to corporate

income tax.

Corporate Tax

Non-domiciled or non-resident companies are taxed on their income from commercial activities

on Chilean ground. Resident companies are taxed on their worldwide income.

The country has two types of corporate tax [27].

• Attributed Income System (AIS): Under this regime, the income received by a

company is annually attributed to its shareholders or partners, regardless of the

effective dividend distributions. This tax rate is 25% [28].

• Partially Integrated System (PIS): Under this regime the shareholders are taxed only

on the actual distribution of dividends by the company. This tax rate is 27% [28].

Dividends, capital gains, or any capital increases are subject to normal taxation unless special

provisions establish exemptions, such as those pertaining to gains on the sale of shares/quotas

or monetary correction on capital repayments or those derived from transactions of public

offerings and listed corporations. All the capital increase is taxed as soon as it accrues.

Deductions can also be used in this type of project. For instance, 4% of the capital cost can be

imputed to the corporate tax, only in the year the capital was used. More information can be found

in ‘Ley de Impuesto a la Renta’ Article 33 and Article 14 [27].

VAT (Value Added Tax)

VAT is a tax levied on goods and services, corresponding to 19% of their value. VAT also applies

to public, semi-public and autonomous state institutions. Therefore, district energy operations are

subject to 19% VAT. The tax payment is made monthly and the amount is calculated based on

the difference between the tax credit paid and tax debit.

Other Taxes

There is also a stamp tax (limited to 0.8% maximum), a municipal license fee, real property tax

(at 1%) and social security contributions (2.4% over each worker’s gross salary) [28].

Additionally, there is a specific tax on fuels based on volume. This tax, however, can be reclaimed

according to the economic sector of the company (e.g. Transport). A similar tax exemption can

be used for district energy companies, since the energy is their major operation cost, as in the

transport sector.

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Barrier identified

Excessive Taxes may impact the attractiveness of the district energy business model, compared

to a stand-alone solution.

3.2.3. Social

SOCIAL ASPECTS

According to IEA [29], the development of a new multi-user district energy systems poses a

greater financing challenge since both the number of users and the timing of such consumption

for the new system is uncertain. For systems introduced into an existing environment, the

comparable risk is the number and pace at which owners of existing buildings will convert from

individual heating and cooling systems to the new district energy system. The uptake of district

energy supplying new customers would also involve an upfront re-fitting cost, which makes the

barrier to entry higher.

The most crucial aspect to create a sustainable operation is a business model that includes

stakeholder goals, the ownership, financing and governance.

Opportunity:

• Increasing environmental awareness: Global warming is one of the main topics in

today’s world. People are increasingly worried about the actual damage inflicted on

our planet. This fact will help promote more eco-friendly technologies to heat our

homes.

Barriers:

• Buildings with decentralized heating and cooling: Difficult integration into the district

energy system (requires investment on piping retrofitting). Also, since energy

efficiency is generally inadequate in standard Chilean constructions, investment in

energy efficiency measures be more attractive financially, compared to connecting

the building to district energy.

• Thermal comfort: is not as yet a major concern in Chilean homes compared to

developed countries. However, this may also be seen as an opportunity, since the

drive to improve the quality of life in Chile is strong and optimistic.

• Cultural aspects: Traditionally, it is believed that centralized heating is more

expensive than using biomass, which is abundant and not strictly regulated in the

south of Chile. Also, traditional wood stoves have deep cultural roots in the country

values and tend to overtake the negative secondary effects [30].

• Lack of awareness about the real costs of the existing cooling/heating system:

Currently, the vast majority of the buildings in Chile have a low energy efficiency

standard. In addition to that, according to building developers interviewed, the main

driver in the purchase of a property is the price, not the energy efficiency. In general,

the users are not aware of the total costs of ownership of its heating and cooling

system and the positive aspects of using a high efficiency technologies.

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HEALTH IMPLICATIONS

Outdoor air pollution is a major environmental health issue affecting everyone in low, middle, and

high-income countries. Air pollution in both cities and rural areas was estimated to cause 4.2

million premature deaths worldwide per year in 2016 [31], mainly due to exposure to small

particulate matter of 2.5 microns or less in diameter (PM 2.5), which causes cardiovascular and

respiratory diseases, and cancers.

The World Health Organization (WHO) estimates that in 2016, some 58% of outdoor air pollution-

related premature deaths were due to ischemic heart diseases and strokes, while 18% were due

to chronic obstructive pulmonary diseases and acute lower respiratory infections, and 6% due to

lung cancer [31]. Addressing all the risk factors for non-communicable diseases – including air

pollution - is key to protecting public health. Some of the major goal of Chile to improve the air

quality are:

Table 3-1 Primary target to decreased the footprint in different aspects WHO standard [32, 33]

Air pollutants

The 2005 WHO Air Quality Guidelines offer global guidance on thresholds for air pollutants that

pose health risks. In Chile, the maximum concentration permitted levels are set by D.S. N° 59.

Particulate matter presence, measured as a 24-hour and an annual mean, higher than those

defined by the WHO 2005 guideline [31]. Current standards, shown Table 3-2, should be reached

before setting stricter values in order to yield real positive results in the air quality.

• Reduce industrial smokestack emissions

• Improved management of urban and agricultural waste

• Capture of methane gas emitted from waste Industry

• Access to affordable clean household energy solutions for cooking, heating and lighting;Energy

• Prioritizing rapid urban transit, walking and cycling networks

• Rail interurban (Metro)

• Low-emission vehiclesTransport

• Energy efficiency of buildings

• Making cities more green and compactUrban planning

• Use low-emissions fuels

• Renewable combustion-free power sources

• Co-generation of heat and power Power generation

• Strategies for waste reduction, waste separation, recycling and reuse or waste reprocessing;

• Improved methods of biological waste management.

Municipal and agricultural waste management

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Particulate Matter

Chilean Standard WHO Standard

24-hour mean Annual mean 24-hour mean Annual mean

PM2.5 [μg/m3] 50 20 25 10

PM10 [μg/m3] 150 50 50 20

Table 3-2 – Primary quality standard for breathable particulate matter in Chile compared to WHO standard. [32, 33]

Regarding O3, NO2 and SO2, the maximum concentration values are defined in D.S. N°112, N°114

Agreement 7/2017, and are shown in Table 3-3.

Air pollutants 1-hour

mean

8-hour

mean

24-hour mean Annual mean

Ozone (O3) - 61 ppb - -

Nitrogen dioxide (NO2) 213 ppb - - 53 ppb

Sulfur dioxide (SO2) - - 76 ppb 27 ppb

Table 3-3 – Primary quality standard for ozone, nitrogen dioxide and sulfur dioxide in Chile [32, 33].

ENERGY POVERTY

While poverty is commonly measured by income, a multidimensional poverty measurement is

needed in order to study energy poverty. Multidimensional poverty is made up on several factors

that constitute poor people experience; factors such as health, education and livelihood are as

important as income, employment or salary.

United Nations Development Program (UNDP) has set ambitious goals to eradicate extreme

poverty (SDG goal N°1) and energy is one of the considered elements [34]. In this context, the

research opens the dialogue on Energy Poverty.

In Chile, the debate is relatively new and there are few documents on the matter. All the reports

have concluded that “Chileans are willing to feel colder than other countries are willing to accept”

[35].

The problem remains as to how to measure Energy Poverty, due to the lack of consensus over

the Chilean thermal comfort, considering that each person or each culture has a different need

for heating. Chilean aborigines, the “Yagans”, for example, lived at the south end of the continent,

wearing no clothes, needing only fire to heat themselves. They survived in extreme weather

conditions with temperatures below 0°C [36]. For this reason, the discussion should start on

establishing a single thermal comfort value, which has been a problem among the experts [37].

Currently, the concept of "energy poverty" is defined as inadequate access to basic energy

services, especially those related to achieving healthy and comfortable temperatures inside

homes [35].

In a multidimensional poverty framework, the Chilean Energy Ministry has developed five energy

indicators which will provide a deeper view of the context. The energy poverty indicators are:

energy access, affordable energy, household energy efficiency, energy sustainability and energy

education [38].

The questions shown in Table 3-4 must be addressed in order to define the degree of energy

poverty.

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Description Question

Energy access Refers to how developed the

electricity supply network and the

gas or energy pipes distribution are

How good are these services

distribution conditions?

Affordable energy price Families should be able to pay a

reasonable price for their energy

consumption

What proportion of income is

spent on energy needs?

Building energy

efficiency

One of the main requirements is to

have the adequate building

insulation.

How good is the building

insulation?

Energy sustainability Refers to how energy is produced. A

high level of renewable energy

production is a key requirement of

obtain a good score in this energy

poverty indicator.

Is the energy matrix

sustainable?

Energy Education Energy education is important in

order to reduce energy waste.

How educated are people

about energy use?

Table 3-4 – Energy poverty indicators

It becomes essential that the development of new projects addresses these challenges. A

successful modern district energy project integrates the use of higher-efficiency or non-

conventional energy sources that supply more affordable and more sustainable energy. As it is a

more disruptive project than the conventional distributed heat generation, the success of the

project is linked to the integration of all stakeholders in its development, including the community.

This presents an opportunity to educate the local population regarding energy usage. It also

opens the debate and could aid in setting a higher standard of building energy efficiency, as there

is a minimum efficiency value at which the district energy becomes feasible. In brief, a district

energy project can help tackle energy poverty issues in Chile, contributing directly to improving

the quality of life.

Opportunity Identified

• One important ongoing public policy is improving energy efficiency in public

buildings, by changing the heating and cooling systems and sources. Increasing

energy efficiency will contribute to a decrease in energy poverty.

• Public Subsidy: MINVU implemented a public policy to improve the thermal

insulation of dwellings including: roofs, walls and floors as well as the replacement

of the simple glass windows with double glazed alternatives. This is an important

and necessary step towards the implementation of district energy schemes.

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3.2.4. Technical

DISTRICT ENERGY SOURCES

The energy sources for the first generation District Heating and Cooling designs were coal, gas

and oil. Today, they are switching to more sustainable and locally produced energy sources. The

different energy sources range from industrial surplus heat to biomass, geothermal, wind, CHP

biomass, CHP waste to energy, solar, CHP bio gas, heat pumps and others. These more recent

technologies are changing the district energy industry as a whole.

Similarly, the industry has been moving towards lower operational temperature, safer than older

ones. They also emit less CO2. Figure 3-4 charts the evolution of the industry through time.

Figure 3-4 – Different energy sources [7]

4TH GENERATION DISTRICT HEATING (4GDH)

The 4th generation district heating designs are typically based on a combination of fluctuating

renewable energy sources, such as wind, geothermal and solar power, together with residual

resources such as waste and biomass [39]. All the energy systems in which electricity, thermal

and gas networks are combined and coordinated.

In addition, better insulation materials should be used in building walls, windows and roofs. A

more effective insulation and a mix of the energy sources helps in reducing the district energy

output temperature, to work on low temperatures, between 50°C and 60°C [40].

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CHILEAN DISTRICT HEAT AND COOLING PROJECTS

Chile has a few examples of closed-circuit cooling and heating. The most important are the

following:

Building name or community Energy Source City

Torres de San Borja Biomass Santiago Down Town

Cumbres del Cóndor Biomass Vitacura

Departamentos de Hacienda Biomass Colina

Torres Parque Titanium Geothermal heat pumps Providencia

Frankfurt condominium Geothermal heat pumps Temuco

Edificio Transoceanic Geothermal heat pumps Vitacura

Table 3-5 Closed-circuit cooling and heating installations in Chile

Individual building boilers powered by natural gas or LPG are a relatively common technology in

several buildings in the Metropolitan Area.

Opportunities

• Existing examples of small district heating projects in Chile show that the projects

have lower operational costs than individual conventional systems using diesel, coal

or gas, and that the installation of urban heating networks facilitates the integration

of higher rates of renewable sources such as biomass or geothermal.

Barriers

Table 3-6 presents the barriers found at the group meeting held with local authorities. Previous

studies have identified similar barriers [16, 41].

Stakeholder Group Barriers

Engineering

companies

- Limited data on cooling and heating demand

- Low quantitative and spatial data on potential waste heat or cold sources

- Lack of knowledge of district energy in Latin America (few projects executed)

- Lack of technical norms for public piping network in Chile

Residential

customers

- Lack of awareness regarding district energy projects

- Difficult and costly retrofitting district energy into existing buildings

- Limited resources

- Low CAPEX of alternative solutions (such as electrical heaters)

- Current rate of city development (Independencia, Renca, Coyhaique and Recoleta)

Municipality - Limited financial resources

- Few local demonstration district energy projects and none at large scale

- District energy is not part of the public entity plan

- Complex process for permitting and approval of underground piping

- No other Waste to Energy projects to promote a synergy

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Central Government - Limited financial resources

- Lack of integrated urban planning that includes district energy

- Lack of a global coordination institution

- Lack of a recycling concept on heat or cooling projects

Hospitals - Limited financial resources

- Retrofitting cost

Schools - Limited financial resources

- Lack of suitable infrastructure

- High retrofitting cost

Industrial corporates - Limited industries within the area under study

- Lack of know-how or experienced companies in South America

- Lack of knowledge of the potential benefits

- Lack of willingness to take on unnecessary risk in a non-core business

- Industrial sector currently purchases energy at a relatively low cost

- Industry could build its own cooling and heating installation

Commercial

corporates

- Internal HVAC retrofitting cost

- Lack of awareness regarding district energy projects

- Difficult and costly retrofitting in existing buildings

Building developers - Lack of know-how or experienced companies in South America.

- Difficulty of obtaining permits.

- Increase in the development cost of newer building

- Diluted Real Estate Market, which means the sector does not have any relevant integration, association or plan to act in a coordinated manner.

- Difficult to obtain financing due to the lack of previous references

Energy companies - Lack of know-how and experience in South America

- Low number of projects carried out by a Chilean companies

- Absence of a recycling economic concept on heat or cooling projects.

- Several architectural relics are located in high density areas.

Financial sector - Lack of knowledge about the business model and associated risks

Table 3-6 – Examples of Stakeholder barriers

3.3. Public National Goods Permit Process

The following diagram describes the steps and information required to receive the permits

necessary to construct a district energy network in Chile.

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Figure 3-5 – Pavement road, Process Model. Information should be shown in the Municipality and all the SERVIU process, it needs to be highlighted that the work should be carried out only by an authorized contractor [19]

Further permits are required from the Municipality to carry out any subsoil works, as it is the entity

that oversees public goods. The permits are managed by the Permit Department, and the fee is

dependent on factors such as number of days of intervention, length of the intervention (length of

the road) and designated area of the works. There are conditions, however, under which the

permit costs may be reduced. For instance, for those projects with public service purpose that

intervene in more than 500 m2, the permit fee is 10% of the normal value. Moreover, for works

that benefit the city, with the MINVU and Ministry of Public Works concession, the installer may

apply to a waiver of this fee. Similarly, the fee may be waived for municipal concessions in subsoil

of national assets for public use.

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DISTRICT ENERGY RAPID-ASSESSMENTS

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4. COYHAIQUE

4.1. City characterization

The city of Coyhaique is the regional capital of Aysén, Chile. Coyhaique often suffers severe

pollution episodes that are mainly caused by the use of inefficient individual wood stoves and the

burning of wet firewood. The city’s air pollution levels are among the highest in particulate matter

concentration according to the WHO, reaching levels over 300 μg/m3 [32], considerably above

both the Chilean and WHO standards. This has led to the implementation of various pollution

reduction programs such as replacement of wood stoves with alternative highly efficient systems

or the improvement of thermal insulation in buildings.

In 2017, the city of Coyhaique had a population of 49,667 [42]. It has a density of 6.9 persons/km2

and has a surface of approximately 7,290 km2.

Figure 4-1. City of Coyhaique

LOCAL RESOURCES AND CITY PLANNING

Geographical characterization:

Coyhaique is the provincial capital (of the province of Coyhaique) and regional capital of Aysén.

It is located at 45°32 latitude South and 72°04 West longitude, between the confluence of the

Coyhaique and Simpson Rivers. The city is home to most of the public and private services of the

region, including governance and quartermaster, the regional hospital, universities, the regional

airport, major hotels and commercial facilities, among others.

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Local energy resources and demand:

The EEL study [43] establishes that 89% of the thermal energy produced is sourced from wood,

8.5% from LPG, 1.2% from Kerosene and 1.4 % from Diesel. It is important to note that most of

the energy is used to heat buildings, some 485 GWh, equivalent to 75% of the total energy

demand. According to the study, the hospital is the largest single energy consumer.

The above report also estimates the amount of energy which can be produced within the city.

One potential energy source for district energy in Coyhaique is biomass, which has the capacity

to generate 3,100 MWh/year of heat. Geothermal energy, wind and hydropower are also on the

list of potential energy sources for the city.

WEATHER

Coyhaique has a cold oceanic climate with low temperatures, abundant rainfall, strong winds and

high humidity. Coyhaique has around 1,385 mm rainfall per year [32]. Temperatures are generally

low, with January being the month with the highest temperatures and July being the coldest.

¡Error! No se encuentra el origen de la referencia. and ¡Error! No se encuentra el origen de

la referencia. show the temperature variations in Coyhaique [44].

Figure 4-2 – Coyhaique temperature profile. Data from [44]

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Temperature

[°C]

Record

high

Average

high

Daily

mean

Average

low

Record

low

January 35.6 18.5 15.1 9.6 0.0

February 34.0 18.9 15.0 8.9 -0.2

March 31.5 16.8 13.1 7.5 -8.0

April 25.2 12.9 9.7 5.3 -8.3

May 20.4 8.6 6.0 2.9 -11.0

June 18.5 5.5 3.2 0.6 -19.2

July 16.2 5.3 2.9 0.20 -18.0

August 19.0 7.8 5.0 1.5 -13.4

September 23.1 10.8 7.7 3.1 -8.8

October 27.5 13.6 10.3 5.1 -5.0

November 31.0 15.6 12.4 7.1 -4.2

December 32.2 17.3 14.2 8.8 -2.3

Table 4-1– Coyhaique temperature profile. Data from [44]

AIR QUALITY

As previously noted, the main source of pollution in Coyhaique is the incomplete combustion of

woody biomass used for heating. The purchase of woody biomass for heating purposes often

occurs in the informal market, where no humidity standards are met, worsening the conditions at

which combustion takes place, and therefore increasing emissions. The particular geography of

the city only aggravates the problem due to the limited natural ventilation, situating Coyhaique

among the cities with the highest concentration of particulate matter in the world.

Particulate matter concentration in Coyhaique is highly seasonal. Its presence can be directly

linked to cardiovascular and respiratory diseases, as well as cancer [33]. Table 4-2 shows the

number of days in which the daily average particulate matter concentration of PM2.5 and PM10

in Coyhaique have exceeded the Chilean and WHO standards.

Even though Chilean standards are far less restrictive than WHO recommendations, these are

still not being met in Coyhaique. Further information regarding these standards, health

implications and pollutant levels in Coyhaique is provided in section 3.2.3.

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Number of days above the

standard

2014 2015 2016 2017 2018

PM2.5 Chilean standard 153 95 138 112 107

PM2.5 WHO standard 234 167 208 184 195

PM10 Chilean standard 39 22 57 30 45

PM10 WHO standard 168 149 170 127 122

Table 4-3. Number of days with pollutant 24-hour mean concentration above Chilean and WHO standard for different years in Coyhaique. Data from [32]

The information in Table 4-3 shows that PM concentration is significantly above permissible

levels. It is highly seasonal, since the main source is the incomplete combustion of woody

biomass for heating in inefficient dwellings. In cold seasons, it has even been classified by the

WHO as one of the most polluted cities in the world.

Regarding SO2, O3 and NO2 levels, it can be seen that the concentration levels are below the

maximum allowed. They show clear seasonality for ozone and nitrogen dioxide, while

concentrations of sulfur dioxide show a significant reduction compared to 2014 values.

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Figure 4-3 – Concentration of the key air pollutants in Coyhaique. Data from SINCA

PM levels have been exceeded, while the other key pollutants have remained below permitted

levels. It becomes key that any system studied either tackles PM polluters and/or uses

technologies that do not increase current emission levels. For instance, a system using natural

gas to supply heat for customers who currently use electric HVAC system would only increase

PM emission levels.

Opportunities

• Stricter regulations in cities could lead to a move towards better and eco-friendly

centralized heating systems.

4.2. Heating and cooling demand

HEATING DEGREE DAYS (HDD)

A Heating Degree Day (HDD) is a measure designed to quantify the demand for energy to heat

a building. More information about how it is measured can be found in APPENDIX A – DEGREE

DAY. ¡Error! No se encuentra el origen de la referencia. shows the amount of Heating Degree

Days calculated for Coyhaique at different base temperatures, i.e. the outside temperature under

which the building requires heating. It must be noted that in Coyhaique there is heating demand

throughout the entire year.

Base Temperature 15[°C] 18[°C] 21[°C]

Average HDD 2,140 3,140 4,200

Table 4-4 – HDD at different external temperatures

COOLING DEGREE DAYS (CDD)

A Cooling Degree Day (CDD) is a measure designed to quantify the demand for energy needed

to cool a building. More information about how it is measured can be found in APPENDIX A –

DEGREE DAY. The results are summarized in Table 4-5¡Error! No se encuentra el origen de

la referencia., and show that no cooling is required in Coyhaique, and the systems must therefore

be focused on heating applications.

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Base Temperature 18[°C] 21[°C] 23[°C]

Average CDD 21 2 0

Table 4-5 – CDD at different external temperatures

HEAT AND COOLING DEMAND AND KEY CLIENTS

¡Error! No se encuentra el origen de la referencia. shows the key energy consumers in the

city. A key client is a customer that is eager to be connected to the district energy network and

has a reasonable heating/cooling demand. Public buildings have been pre-selected in this phase

of the analysis as key customers as they need to meet their CO2 reduction targets.

Building Name Type Constructed Area [m2]

Regional Hospital Health 21,000

Dreams Hotel Residential 2,600

Intendencia Office 1,071

Municipality Office 2,460

Total 27,131

Table 4-6 – Key clients in Coyhaique

The results of the analysis hereunder presented are dependent on the connection of considered

customers. As there currently is no contract nor Letter of Intent signed, as to decrease the project

risks not all potential customers in the vicinities of key customers are initially considered. With this

approach, if a key customer chooses not to connect, it can be replaced by other buildings in the

area.

HEATING AND COOLING COSTS FOR A STAND-ALONE SYSTEM

The Total Cost of Ownership (TCO) is calculated in order to assess the economic viability of a

district energy system. This analysis considers the use of LPG boilers for public buildings and

wood stoves for residential housing. For those buildings that use LPG, the simulation considers

boilers with an efficiency between 83% and 92% using LPG at an average unit cost of 55

CLP/kWh.

A survey was carried out by the Environment Ministry and Inacap covering 14, 45 m2 dwellings in

Coyhaique. The results show that heating is mostly supplied by woody biomass. The average

demand is 446 kWh/m2 and may be as high as 634 kWh/m2, requiring up to 28 m3 of biomass per

year. Regarding the operation of their energy system, dwellings pay on average 1,073 USD/year

and up to a maximum of 2,512 USD/year. Regarding Domestic Hot Water (DHW), the annual cost

is prone to smaller variations and is on average 368 USD/year.

Two important issues arise from the above survey. Firstly, only two households participating in

the survey confirmed achieving thermal comfort with their current heating system. Therefore,

heating demands may be expected to increase as heating becomes more accessible to families

and energy poverty is alleviated. Secondly, unit costs are based on humid woody biomass sold

in the informal market without paying taxes. As regulations become stricter, a price increase can

be expected. Currently, taxed biomass is sold at about 29-44 USD/m3.

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Simulations are developed for residential dwellings using the above information and data from

energy ratings and energy models from various sources [45, 46, 47, 48, 49]. Heating demands

are expected to grow to 713 kWh/m2 if thermal comfort is to be achieved. Most dwellings in

Coyhaique have over 20 Air Changes per Hour (ACH) [50], while the standard to be aimed at is

4 ACH. Currently, the estimated average domestic hot water (DHW) daily consumption is 40

L/person [51] at 45°C. The models developed consider, however, a value of 60 L/person.

The average building’s energy efficiency in Coyhaique is very low, and is expected to improve in

the short to medium term. This potential for efficiency improvements represents a risk to the

district energy developer who would be required to dimension the district energy system based

on the assumption that the heating demand for certain buildings may decrease considerably in

the near future once insulation has been improved. It is therefore suggested that building

insulation improvements are implemented in parallel with the development of the district energy

network in order to avoid system oversizing. The analysis performed in this rapid assessment

considers that insulation improvements have been implemented and that the average energy

demand in buildings would be 393 kWh/m2, i.e. assuming international construction standards of

4 ACH.

The Levelized Cost of Thermal Energy (LCOEth) is defined as the ratio of the total expenditure

that the system incurs (i.e. investment, operation and maintenance) to the total energy that the

system produces throughout its lifetime. The TCO, calculated using the LCOEth, is directly

compared with the district energy price.

As there is uncertainty inherent in the data collected, Monte Carlo simulations are used to model

the probability of different outcomes in a process that cannot be easily predicted. The main

variables are equipment prices fluctuations from different suppliers, equipment efficiencies and

the humidity of biomass, annual maintenance requirements, LPG price and the buildings’ energy

demand.

Monte Carlo simulations are carried out based on specific parameters for different types of

buildings. The city LCOE distribution is then calculated using an area-weighted average. The

results in ¡Error! No se encuentra el origen de la referencia. show that the P50 (median) value

for Coyhaique is approximately 39 USD/MWh for residential dwellings and 61 USD/MWh for other

education and office buildings, and that 90% of the values are within the range 34 - 43 USD/MWh

for residential dwellings, and within 56 - 66 USD/MWh for offices and education buildings. Finally,

health buildings pay between 50 and 61 USD/MWh.

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Figure 4-4 – Results of the Monte Carlo Simulation for the LCOEth

4.3. City plans and strategies

CITY EXPANSION PLANS

To plan a district energy system, it is fundamental to take into consideration the city’s expansion

plans. ¡Error! No se encuentra el origen de la referencia. shows the distribution by building

type of the new constructions planned in the city of Coyhaique [52].

New development areas are of particular interest to district energy systems as the buildings may

be designed ahead with the appropriate technology to be connected to a district energy system

and the installation of the district energy distribution network may be coordinated with the

installation of other services such as water, telecoms or electricity, thereby saving construction

costs.

Figure 4-5 – City growing zones - types of buildings under construction

CITY TARGETS, STRATEGIES AND INITIATIVES

Through the Comuna Energética Initiative by the Ministry of Energy, cities have started to

formalize their energy strategies, aiming towards a culture that promotes decentralized energy,

enables energy efficiency and incorporates local resources.

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Coyhaique’s local energy strategies were developed in 2017 [43]. The city’s vision is ‘to be a

pioneer city in sustainable development, based on renewable energy and with high energy

efficiency standards, that maintains local identity and that is achieved in an affordable way’. While

no formal CO2 or PM emission reduction targets have been set, their goals are classified by:

• Energy efficiency

• Thermal energy generation

• Electricity generation

• Training and raising awareness

• Local identity

Among these goals are energy consumption reduction, an increase in the number of buildings

that use renewable electricity, the improvement of the buildings’ energy efficiency and the

construction of two district heating plants scheduled to be operating by 2020.

The local energy strategy also estimates the potential for biogas production and usage, although

no development targets have been established. Considering that the installation of a biogas plant

or a waste to energy system is in line with the city’s strategies, and that it can be coupled with the

development of district energy, the alternative should be explored when further progress is made.

4.4. Stakeholders mapping

Local stakeholders and their potential roles in the development of district energy initiatives in

Coyhaique are summarized in Table 4-7¡Error! No se encuentra el origen de la referencia..

Category Agency Mandates and Role

Consents

Municipality

SERVIU

Ministry of Energy

Ministry of Environment

MINVU

Ministry of Public Works

SEA

City planning, funding and permits.

Permits, distribution system.

Regulation and funding.


Complementary programs.

Regulation, concession.

Permits, environmental.

Investors Veolia

Engie

Energy-Tracking

Aguas Patagonia

Banks

Developer.

Developer.

Developer.

Potential developer.

Investor, loans.

Engineering and equipment

supply

Tractebel Engineering

CEGA Abastible

Danfoss

Sawmills

Engie Services

EBP

ISPG

Studies, basic engineering.

Studies, geothermal.

LPG supplier

Equipment.

Wood chip supplier.

Experienced systems operator.


Gas turbine representative.

Customer Municipal buildings

Community - group of houses

Schools

Private buildings

Potential customer.

Potential customer.

Potential customer

Potential customer.

Table 4-7 - Main stakeholder in Coyhaique

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4.5. Selection of showcase projects

Several meetings were held with the central and local government, to understand the city planning

and the areas of city growth. During these meetings potential sites were identified and discussions

were held on how a potential district energy system in these sites would align with current

government plans and strategies. The meetings also served to introduce the project to

stakeholders; a step of upmost importance in the process of developing district energy systems.

4.5.1. High Potential Site 1 – Downtown

Coyhaique downtown contains the largest buildings in the city, and therefore it is the densest part

of the city, in terms of buildings. This allows for the possibility to supply different types of facility,

as residential buildings and schools could be considered in addition to the hospital and offices in

the area. This site includes the largest consumers in the city, all located in a relatively small area,

which implies that a high energy density can be expected. On the other hand, there are no

buildings under construction that could eventually be connected to the system, nor is there

available waste heat in the vicinity. The first site is shown in Figure 4-6¡Error! No se encuentra

el origen de la referencia..

Figure 4-6 – The first potential district energy development Site 1 – Downtown

The main potential customers, their classification and operational surface are indicated in Table

4-8¡Error! No se encuentra el origen de la referencia.. Other potential clients, such as schools,

are shown referentially in the figure.

Customer Sector of Activity Total surface [m2]

Regional Hospital Health 21,000

Dreams Hotel Hotel 2,600



Total 27,810

Table 4-8 – Key clients – Site 1 Down town

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4.5.2. High Potential Site 2 – Escuela Agrícola

After several meetings, this site was suggested by the Regional Government. The development

started a few years ago, and a civic center is expected to be built in the area. Currently, two

buildings have been built, and further infrastructure is under planning, such as government

buildings. The main advantage of this site is that the expected development can be coupled to a

district energy system from its conception, and that nearly 400 residential dwellings, an important

source of air pollution, can be included. The second site is shown in Figure 4-7¡Error! No se

encuentra el origen de la referencia..

Figure 4-7 – Second potential district energy development. Site 2 – Escuela Agrícola

The main clients considered are shown in Table 4-9¡Error! No se encuentra el origen de la

referencia..


Junji Education 1,452

ELEAM Residential 2,930

Civic Center Project Office 4,500

Houses (green & red roof) Residential 15,442

Houses (blue roof) Residential 3,968

Houses (orange roof) Residential 2,746

PDI Office 3,369

Total 34,407

Table 4-9 – Main clients – Site 2 Escuela Agrícola

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4.5.3. High Potential Site 3 – Quinta Burgos

The site was suggested by the Municipality, as it is one of the areas where it is envisaged that

the city will grow. A new bus station is planned, which would lead to further development. Some

streets that are yet to be paved, so the urbanization process could be planned to include district

energy, further decreasing the costs. Moreover, it is close to the downtown area, allowing a future

expansion towards a highly density area. The third site is shown in Figure 4-8¡Error! No se


Figure 4-8. Third potential district energy development. Site 3 – Quinta Burgos

The key customers, their business type and the area are indicated in Table 4-10¡Error! No se

encuentra el origen de la referencia.. Dwellings that could potentially be connected to the

district energy network are shown in blue.

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Table 4-10 – Key clients – Site 3 – Quinta Burgos

4.5.4. Decision Matrix

From the High Potential Sites (HPS) selected, the decision matrix yields the following scores.

HPS - Coyhaique Points

1 – Down Town 3.00

2 – Sector Escuela Agrícola 2.00

3 – Sector Quinta Burgos 2.50

Table 4-11 High Potential Areas scores for the three sites selected

More information regarding the Matrix and scores of each factor for each site can be found in

APPENDIX B – DECISION MATRIX.

The decision matrix results suggest a continuation of the rapid assessment of site 1 - downtown.

However, according to information provided by the regional office of the Ministry of Environment,

Escuela Agrícola is undergoing an important urbanization process which already considers a

District Heating System. This project has strong political support and the regional government has

committed funds to support the project. For this reason, site 2 - Escuela Agrícola was selected

for the pre-feasibility study.


Alianza Austral School Education 3,916

Hotel Diego de Almagro Housing 5,964

INACAP Education 4,370

Board of education Office 1,073

ACHS Office 2,010

Toyota Commercial 1,768

Homecenter Commercial 10,285

New bus terminal Commercial 1,545

Parque Austral Gym and pool Health 2,500

Regional gym Health 1,333

España School Education 4,984

Los Mañios Building Housing 7,000

Courthouse Office 9,200

Total 55,950

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4.6. Pre-feasibility study

4.6.1. Technical analysis

DESCRIPTION OF THE BUSINESS AS USUAL SCENARIO

Residential dwellings use mainly humid biomass for heating. The humidity ranges between 25%

and 35%, resulting in a heating value of 3.9 kWh/kg [53], and is supplied to 60% efficient systems.

If thermal comfort were to be achieved, then the annual heating demand of the dwellings in the

area would be between 530 and 715 kWh/m2 [47, 49]. The expected annual heating demand is

14.8 GWh, which is supplied by 11,250 m3 of biomass. Using emission factors from [54], the

yearly emissions are calculated as 62 tonPM2.5 and 6,581 tonCO2.

While for offices and education buildings the energy mix can be more diverse, the tendency is

towards the use of LPG, and therefore these values are assessed in relation to LPG. For a 90%

- efficient LPG boiler, the annual demand of buildings in Escuela Agrícola is 1.4 GWh which, if

supplied with 237 MWh/kg LPG, would require 111 tons annually. Again, using emission factors

from [54] , the yearly emissions are 16 kgPM and 290 tonCO2.

HEATING ENERGY DEMAND

The heating energy demand must be defined in order to adequately assess a district energy

system. The consumption is defined for each sector, i.e. a classification based on the end use of

the building, and the resulting heating demand is shown in Figure 4-9¡Error! No se encuentra el

origen de la referencia..

As previously mentioned, residential housing heating demand can be over 700 kWh/m2-year [47]

if thermal comfort were to be achieved, mainly due to high infiltration rates. The analysis of the

development of the district energy considers a complementary initiative to improve the

dwellings’ insulation and infiltration standards. It is recommended to implement a program to

improve the insulation and efficiency of residential dwellings with MINVU, focusing on specific

regions, such as Escuela Agrícola. If the projects are not developed in parallel, the risk of installing

an oversized district energy system greatly increases. As previously stated, the choice of Escuela

Agrícola is linked to the high political support for district energy in that area. As working sessions

regarding district energy between various stakeholders from Municipality, Ministries of Energy,

Environment and Housing have already begun, unifying efforts and developing parallel programs

is not only facilitated and highly plausible for Coyhaique, but also in line with the city’s energy

strategies.

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Figure 4-9 – Hourly heating demand for an average year and consumption profile of peak demand day

The results show that due to low temperatures, there is a heating demand throughout the year,

regardless of the sector of activity. The results also show that the demand decrease in residential

dwellings can be coupled with the demand increase in offices during work hours. However, both

systems have their peak between 7:00 and 8:00 AM. The heating consumptions are assigned to

each client of the HPS based on their type, as summarized in Table 4-13¡Error! No se encuentra

el origen de la referencia.. It must be noted that there are nearly 400 dwellings, while the other

customers shown account for a total of 5 buildings housing 4 clients.

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Customer Sector Total surface

[m2]

Specific demand

[kWh/m2-y]

Annual demand

[MWh]

Junji Education 1,452 178 258

ELEAM Residential 2,930 141 1,151

Civic Center Project Office 4,500 141 636

Houses (green & red roof) Residential 15,442 393 6,066

Houses (blue roof) Residential 3,968 393 1,559

Houses (orange roof) Residential 2,746 393 1,079

PDI Office 3,369 141 476

Total 34,407

Table 4-12 – Customers energy consumption

AGGREGATED ENERGY DEMAND PROFILE

Energy demand profile

The losses in the distribution system are added to the heating demand of the considered

customers, in this case, 5% constant loss throughout the year. The demand for an average year

is shown in Figure 4-10¡Error! No se encuentra el origen de la referencia., and the peak and

average daily demand in Figure 4-11¡Error! No se encuentra el origen de la referencia.. In the

analysis, 64 outlier data points that would further increase the installed capacity were constrained

as abnormal data. This results in an installed capacity of 72% of the total of all individual demand

strands, i.e. the diversity factor is consistent with [55]. Therefore, the installed capacity required,

i.e. the highest daily demand and the annual district energy demand are 4.2 MW and 11.8 GWh

respectively.

Figure 4-10 – Hourly heating demand of an average year

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Figure 4-11 – Average and peak daily heating demand

EFLH

The Equivalent Full Load Hours (EFLH) is a measure that represents the corresponding hours at

which the plant would operate at full capacity. It is calculated as the ratio between the total energy

produced and the installed power, as shown in the following equation.

𝐸𝐹𝐿𝐻𝐻𝑒𝑎𝑡𝑖𝑛𝑔 =11.8 𝐺𝑊ℎ

4.2 𝑀𝑊= 2,800 ℎ

Therefore, the heating plant would be operating at full capacity for 29% of the year.

ENERGY PLANT OPTIONS

Based on the local conditions, three energy systems have been considered. The output of the

technical analysis serves as input to the economic analysis, where the most cost effective solution

is selected. The main constrains are the lack of waste heat and natural gas in the city. LPG, on

the other hand, due to the geographical location of Coyhaique, is costly in general. Nonetheless,

a configuration with cogeneration has been considered.

Even though currently the local wood chip market is small, a district heating installation using this

fuel could help consolidate a circular economy and partnership amongst small producers. As the

lack of major wood chip suppliers poses a risk to the district heating system, a market incentive

must be developed in parallel.

Finally, as there are rivers in the surrounding area, a two-well heat pump is included in the

analysis.

The systems analyzed are therefore summarized the following:

• District heating with wood chip boiler: Following the traditional method to provide

heating in Coyhaique, and considering the low cost of biomass, a wood chip boiler

is considered to supply the heat load.

• District heating with gas turbine cogeneration and wood chip boiler: A gas turbine

sized to provide base heat load while also generating electricity, complemented by

a wood chip boiler.

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• District heating with ground source heat pumps and wood chip boiler: Ground source

heat pump are considered due to the stable ground temperatures.

District heating with wood chip

This alternative considers a 92%-efficiency boiler burning woodchip with a LHV of 4.2

kWh/kg¡Error! No se encuentra el origen de la referencia.. The installed capacity is 4.6 MW

and requires 3,029 tons of wood chip per year.

Figure 4-12 – Scheme of the district energy system - Wood chip boiler configuration

Figure 4-13 – Hourly wood chip consumption –Wood chip boiler configuration

District heating with cogeneration

The second system considers a gas turbine, using LPG with a LHV of 14 kWh/kg, sized to supply

15% of the total power capacity as shown in Figure 4-14¡Error! No se encuentra el origen de

la referencia.. The 650 kWe turbine is used to generate electricity, while the exhaust gases are

used to preheat the district energy network, which is then further heated using a wood chip boiler

similar to the one used in the previous scenario. The boiler reduces its size by 15% compared to

the previous configuration, requiring an installed capacity of 3.9 MW. The annual LPG

consumption is 1,235 ton and the annual wood chip consumption is 1,893 ton, which represents

a 38% wood chip consumption reduction compared to the previous configuration¡Error! No se


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Figure 4-14 – Scheme of the district energy system - cogeneration configuration

Figure 4-15 – Hourly wood chip and LPG – Cogeneration configuration

District heating with heat pumps

The third system considers the use of a ground source heat pump (GSHP) complemented by a

wood chip boiler as shown in Figure 4-16¡Error! No se encuentra el origen de la referencia..

The Coefficient of Performance (COP) is modeled as a function of the difference between ground

water temperature and the required distribution piping temperature. The system requires up to 70

m3/h of ground water, which could be obtained with 2 sets of drills, with an average COP of 3.9.

The wood chip boiler further increases the temperature of the fluid in order to reach standard

district energy network temperatures. This process requires on average 2,272 tons of wood chip

annually. Further details on the hourly results are shown in Figure 4-17¡Error! No se encuentra

el origen de la referencia..

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Figure 4-16 – Scheme of the district energy system - GSHP configuration

Figure 4-17 – Hourly COP, electricity and wood chip consumption – GSHP configuration

DISTRIBUTION GRID

The 2,750 m distribution grid is designed to follow the street layout. A scheme of the layout with

all the potential customers identified is shown in Figure 4-18¡Error! No se encuentra el origen

de la referencia.. A distribution system with two main pipelines for heating is considered. This

configuration results in lower operating costs while still enabling future expansion without a

significant increase in investment costs or logistic issues.

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Figure 4-18. Scheme of the distribution grid

The distribution system is sized to operate with a temperature difference of 25 °C. The head loss

calculation is based on the length of the system, while the hourly energy consumption is based

on the demand.

The pumps consume 190 MWh of electricity for the distribution system. The maximum flow

required to supply the demand is 150 m3/h. If the velocity is constrained to 1.5 m/s, then the

diameter of the pipes required are approximately 10’’ (25.4 cm).

There are several constrains that govern the design of the distribution system. While this is a

simplified analysis that estimates values to adhere to these constrains, future work must elaborate

on the hydraulic models and include more detail in the calculation. Among the most important

constrains are:

• Material of the pipes

• Maximum head loss permissible

• Maximum flow rate velocity

• Maximum head loss in the energy transfer stations

4.6.2. Economic analysis

This section elaborates on the most cost-effective configuration from the options described in the

previous section. This analysis serves as first basis approach and considers the capital

expenditure (CAPEX), operational expenditure (OPEX), a payback period and a standard debt

service, i.e. 50% of the CAPEX is considered to be financed through loans. The economic

analysis incorporates a Monte Carlo simulation. The reported values hereunder correspond to the

median results, as low variations are obtained in general.

The main inputs for the analysis are in Table 4-13¡Error! No se encuentra el origen de la

referencia..

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Variable Units Value

Average profit % 4.8

IRR % 7.6

Annual debt rate % 4

Corporate tax % 27

Free risk debt % 4.6

Years of operation years 30

LPG price USD/m3 3.4

Electricity price USD/MWh 60

Land price USD/m2 162

Table 4-13 – Main inputs of the economic analysis

The project average profit corresponds to the profit obtained in similar projects in France after 50

years operation. The corporate tax rate used in this analysis is a direct tax applied to incomes

from business. As a debt is included, the IRR takes into account the percentage of CAPEX

financed through a loan, the annual debt rate and the tax rate. The indicative IRR is 4.5%, and

considering an inflation of 3% the resultant IRR is 7.6%. The analysis is conducted considering

a 30-year timeframe, as longer durations would require major reinvestment of equipment.

CAPEX ASSUMPTIONS

The following variables are included as part of the investment costs:

1) Development Cost: Engineering and project management.

2) Direct Costs: Thermal plant, distribution system and transfer station.

• Thermal Plant: Building construction, electromechanical equipment and control

system.

• Piping Distribution Network: Main distribution and water return piping, public area

intervention costs, pumping system.

• Transfer Stations: Major heat transfer equipment.

3) Indirect Costs: Includes temporary construction works, equipment and transport, insurance and guarantees.

4) In addition, other costs were considered, which include 25% for the local contractor's profits and 15% for contingencies.

5) The residual price of the equipment is assumed to be zero after 30 years.

The median CAPEXs are shown in Table 4-14. Further detail on the CAPEX estimations for each configuration is given in APPENDIX 10.4.1.1

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Configuration CAPEX [MUSD]

District heating with wood chip $8.1

District heating with cogeneration $8.3

District heating with heat pumps $10.0

Table 4-14 – Median CAPEX of each configuration

The distribution of the CAPEX is shown in Figure 4-19 and Table 4-15¡Error! No se encuentra

el origen de la referencia.. ¡Error! No se encuentra el origen de la referencia.

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Figure 4-19 – Median CAPEX distribution of the different configurations

Option costs [MUSD]

Development Thermal plant

Distribution system

Connection system

Indirect Others Total CAPEX


0.7 1.1 3.7 0.1 0.6 1.9 8.1


0.7 1.2 3.7 0.7 0.6 2.0 8.9


0.9 1.5 3.7 0.7 0.8 2.4 10.0

Table 4-15 – Median CAPEX distribution values of the various configurations reviewed

In all the options, the most expensive component of the CAPEX is the distribution system,

corresponding mainly to the piping installation. The next largest component is ‘Others’, composed

of contractor profit and contingencies. The thermal plant is also one of the principal items,

consisting of thermal equipment plant and building construction.

The same analysis is carried out considering a free land concession. The resulting median

CAPEXs are given in Table 4-16¡Error! No se encuentra el origen de la referencia., Figure

4-20¡Error! No se encuentra el origen de la referencia. and Table 4-17¡Error! No se


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Alternative CAPEX [MUSD]

District heating with wood chip $7.9

District heating with cogeneration $8.1


Table 4-16 – Median CAPEX of each configuration excluding land cost

Figure 4-20 - Median CAPEX distribution of the different configurations excluding land cost

Option costs [MUSD]

Development Thermal plant

Distribution system

Connection system



0.6 1.1 3.7 0.1 0.6 1.9 8.1


0.6 1.2 3.7 0.7 0.6 2.0 8.9


0.7 1.5 3.7 0.7 0.8 2.4 10.0

Table 4-17 – Median CAPEX distribution values of the different configurations excluding land cost

The main components of the CAPEXs are the same as in the analysis with land cost. This is

explained by the very low land cost 162 USD/m2.

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OPEX ASSUMPTIONS

The operational expenditure includes annual maintenance costs for the main equipment,

distribution system and transfer stations (including major maintenance costs), insurance and

administration costs.

Operation and Maintenance

Thermal Plant 3% CAPEX thermal plant

Distribution and connection

system

1.5% CAPEX distribution and

connection system

Overhaul 5% CAPEX direct cost

Insurance construction 0.45% CAPEX direct cost

Insurance operation 0.25% OPEX total utilities

Administration cost $10,500 [USD/MWth]

Table 4-18 – OPEX assumptions for the economic analysis

For the district heating with cogeneration the electricity is assumed to be sold to the grid, either

with a Power Purchase Agreement (PPA) or on the spot market, and not directly to the same

clients of the district energy system. The utility costs (fuel, electricity and water consumption) are

treated separately from the OPEX to obtain the selling price. For further detail on the OPEX

estimation for each option refer to APPENDIX 10.4.1.2.

UNCERTAINTY CONSIDERATIONS

Due to the uncertainty in the main variables used, the impact of these variables on the results of

the district energy project has to be quantified so that risk may be assessed. The values could

change many times throughout the years. Therefore, a “Monte Carlo” analysis is performed. The

Monte Carlo’s model forecasts the investment outcome, providing insight on the possible

investment exposures to enable a better mitigation of the district energy risks. A modelling

software that randomly selects input values is used, and it is run for 1,000 iterations in order to

cover the full range of parameters, constrained by their own independent probability of

occurrence.

Variation is considered for the CAPEX, mainly related to the power plant investment costs,

distribution system construction costs and the substation. The uncertainty considered, and the

probability distribution function used is detailed in Table 4-19¡Error! No se encuentra el origen

de la referencia..

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Project Variables Units Min Variation Max Variation Probability Distribution

Function

Main equipment CAPEX % -5 20 Triangular

Piping network CAPEX % -5 20 Triangular

Sub-stations CAPEX % -5 20 Triangular

Table 4-19 – CAPEX uncertainty values for Monte Carlo Analysis

The uncertainty range for the OPEX is detailed in ¡Error! No se encuentra el origen de la

referencia. and considers changes in demand, local labor cost, gas tariff, water price and

electricity price.

Project Variables Units Base case

scenario

Min

Value Max Value

Probability Distribution

Function

Labor Costs USD/h 7.2 0% 2% Rectangular

LPG USD/m3 3.37 -9% 9% Rectangular

Electricity Price USD/MWh 60 -1% 1% Rectangular

Table 4-20 – OPEX uncertainty values for Monte Carlo Analysis

TOTAL COST OF OWNERSHIP AND LEVELIZED COST OF THERMAL ENERGY

The Total Cost of Ownership (TCO) is calculated to assess the economic viability of a district

energy project from the developer’s perspective. Therefore, the Levelized Cost of Thermal Energy

(LCOEth) is defined as the ratio of the total expenditures (i.e. investment, operation and

maintenance) and the total energy that the system produces throughout its lifetime. This value

represents the developer’s cost of energy generation.

In order to calculate the project Internal Rate of Return (IRR), the methodology considers using

the Capital Assets Pricing Model (CAPM), which describes the relationship between the expected

return and the risk of investing in a security. In this case, the CAPM for the project is 6.09%.

CAPM is widely used throughout the finance sector for pricing risky securities and generating

expected returns for assets, given the risk of those assets and the cost of capital. Investors expect

to be compensated for risk and the time value of money.

The price at which energy must be sold is calculated by equaling the NPV to zero with a payback

of 30 years. This result is the price the client will pay, excluding VAT. This must be compared with

the TCO. For the district heating with cogeneration the electricity is assumed to be sold to the

grid, either with a Power Purchase Agreement (PPA) or to the spot market, and not directly to the

same clients of the district energy system.

As mentioned before, 50% of the CAPEX is considered to be financed with a loan paid through

the 30 years of the project duration with a 4% effective interest rate. The debt service account is

shown in APPENDIX 10.4.1.3.

The results for the energy price under the scenario with 50% debt and land cost are shown in

¡Error! No se encuentra el origen de la referencia. for each alternative.

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Figure 4-21 – Median Energy Price [USD/MWh] for all configurations considering lifespan of 30 years, excluding VAT

Option OPEX [USD/MWh]

Fuel [USD/MWh]

CAPEX [USD/MWh]

Others [USD/MWh]

Energy price [USD/MWh]


17 12 11 15 55


18 53 12 15 98


21 11 14 18 64

Table 4-21 – Median Energy Price component values [USD/MWh] for all configurations considering lifespan of 30 years, excluding VAT

The configuration with the lowest energy price is the district heating with wood chip boiler, followed

by the district heating with ground source heat pump and finally the most costly option is the

district heating with cogeneration. For district heating with wood chip boiler and district heating

with ground source heat pumps, the main price component is the OPEX, covering operation,

maintenance and overhaul. For district heating with turbine cogeneration and wood chip boiler,

the main price component is the Fuel (LPG and wood chip).

FINANCIAL ANALYSIS

The financial analysis is based in the energy prices resulting from the previous section. The

financial model enables an understanding of how the project would change with subsides. In this

case, however, the same variables are maintained throughout the analysis.

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The analysis uses the weighted average cost of capital (WACC), which is the rate at which a

company is expected to pay on average to all its security holders to finance its assets. The WACC

is commonly referred to as a firm’s cost of capital. The WACC for the project is 4.5% with a 50%

project loan at 4% interest payable in 30 years’ time. The energy price is then calculated by

equaling the NPV to zero for a 30-year operation payback horizon. The cash flow statement for

each of the alternatives can be found in APPENDIX 10.4.1.4 and the profit and loss statement in

APPENDIX 10.4.1.5.

Sensitivity analysis of CAPEX reduction

To simulate the end user energy price impact, a CAPEX reduction of $0.16 MUSD is shown in

Figure 4-22¡Error! No se encuentra el origen de la referencia.. The CAPEX reduction can be

expressed as land/terrain free concession, using available space either in government buildings

or in public areas (e.g. parks).

Figure 4-22 – Median Energy Price [USD/MWh] for all configurations considering lifespan of 30 years, excluding VAT and land cost


Fuel [USD/MWh]

CAPEX [USD/MWh]

Others [USD/MWh]

Energy Price [USD/MWh]


17 12 11 15 55


18 53 12 15 97


21 11 14 18 64

Table 4-22 – Median Energy Price component values [USD/MWh] for all configurations considering lifespan of 30 years, excluding VAT and land cost

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The least costly solution is district heating with wood chip boiler, followed by the district heating

with ground source heat pump and finally the most costly option is district heating with

cogeneration. For district heating with wood chip boiler and district heating with ground source

heat pumps the main price component is the OPEX, including operation, maintenance and

overhaul. For district heating with turbine cogeneration and wood chip boiler the main price

component is the fuel (LPG and wood chip). The impact of this CAPEX reduction on the energy

prices is minimal, due to the low price of land on the analyzed site (162 USD/m2).

4.6.3. Tariff models

The proposed tariff structure is based on best experiences worldwide, and is the one used for

utilities in North-America, France, Portugal and the Middle East. The tariff is divided into 3 parts:

connection fee, consumption fee and capacity fee. VAT is excluded from the tariff.

Connection fee: The payment is spread throughout the contract duration. A fee is estimated to

cover the capital investment cost of piping network from the main piping network up to the

respective user´s connection point, i.e. only secondary piping.

Consumption fee: covers variable operational costs such as electricity consumption, gas, water

and chemicals for water treatment. It is changed monthly or every time the utilities change their

prices.

Capacity fee: Covers the capital investment of the district energy plant, main piping network and

non-variable costs of the plant (administrative, operation and maintenance costs). This tariff must

be competitive with a conventional heating and cooling solution.

The scope of a district energy system includes providing services up to the energy transfer station.

For this reason, any modification of internal systems to distribute the heat inside buildings must

be carried out by each customer. Consequently, this secondary cost is not considered in the

project CAPEX.

The main results are summarized in Figure 4-23¡Error! No se encuentra el origen de la

referencia., Table 4-23 and Figure 4-24¡Error! No se encuentra el origen de la

referencia.¡Error! No se encuentra el origen de la referencia.. The fees are normalized in

energy units in order facilitate comparison. The tariff model can be adapted according to the

commercial strategy of each district energy developer, since they may have access to different

utility price and capital costs.

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Figure 4-23 – Median tariff [USD/MWh] for all configurations considering lifespan of 30 years, excluding VAT

Option Connection fee [USD/MWh]

Consumption fee [USD/MWh]

Capacity fee [USD/MWh]


District heating with wood chip 11 12 32 55


11 53 33 98

District heating with heat pumps 13 11 40 64

Table 4-23 – Median tariff values [USD/MWh] for all configurations considering lifespan of 30 years, excluding VAT

In the case of a 50% debt and land purchase, the lowest energy price for the final consumer is 55

USD/MWh, for the district heating with wood chip boiler configuration. The next lowest energy

price is the district heating with ground source heat pumps and finally, the highest energy price is

the district heating with turbine cogeneration and wood chip boiler.

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Figure 4-24 – Median tariff [USD/MWh] for all configurations considering lifespan of 30 years, excluding VAT and land cost






11 12 32 55


11 53 33 97


13 11 40 64

Table 4-24 – Median tariff values [USD/MWh] for all configurations considering lifespan of 30 years, excluding VAT and land cost

In the case of having a 50% debt and a free land concession, the lowest energy price for the final

consumer is 55 USD/MWh for the district heating with wood chip boiler configuration. The next

lowest energy price is the district heating with ground source heat pumps and finally, the most

costly solution is the district heating with turbine cogeneration and wood chip boiler. The impact

of a free land concession on the energy prices for the final consumer is minimal, as the land cost

of the site is relatively low (162 USD/m2).

The tariff price composition can be adapted according to the user’s requirements, and the district

energy developer, since some developers may have access to lower utility prices, while others

may have access to better CAPEX.

4.6.4. Selected option

Based on the technical and economic pre-feasibility study developed in Coyhaique for Escuela

Agrícola, the best economical results appear to be related to the district heating plant with wood

chip boiler. The scheme is shown in Figure 4-25¡Error! No se encuentra el origen de la

referencia..

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Figure 4-25 – Scheme of district energy system - Wood chip boiler configuration

The selected option requires an investment of approximately $8.1 MUSD and achieves a selling

price of 55 USD/MWh. This price is higher than the 90% range of 34 - 43 USD/MWh for residential

dwellings. While the system requires a higher energy price, it allows the possibility to also supply

energy for domestic hot water, increasing the attractiveness of the project. On the other hand, the

calculated selling price is slightly lower than the 90% range, of 56 - 66 USD/MWh for other, non-

residential customers. A mixed usage underground land or a roof does not affect the energy’s

selling price as the land’s cost is very low in the analyzed site (162 USD/m2).

The tariff configuration for the selected option is summarized in Table 4-25¡Error! No se

encuentra el origen de la referencia., where the fees are normalized in energy units for ease of

comparison. This tariff is considered constant for the mix of clients. However, as there is a social

benefit of PM emission decrease for residential dwellings, a subvention to their costs is estimated.

Unit Tariff with

land cost

Tariff without

land cost

Connection fee USD / MWh 11 11

Consumption fee USD / MWh 12 12

Capacity fee USD / MWh 32 32

Total USD / MWh 55 55

Table 4-25 – End User median tariff price composition with and without land cost for the selected alternative

The most costly component is the capacity fee of 32 USD/MWh, covering the capital investment

in the main piping network (2,750 m). The consumption fee is of 12 USD/MWh corresponds mainly

to fuel consumption (wood chip). The connection fee of 11 USD/MWh corresponds to secondary

piping and non-variable costs of the plant.

4.6.5. Project business model and financing opportunities

Chile has been a pioneer in the liberalization of its energy market. It was the first country to fully

liberalize the energy generation sector, in the early 80’s. Furthermore, local governments face

barriers to the development of a public business model, including their inability to participate in

any economic activity that pursues profit, or to raise money on the public market. In other words,

they are unable to generate low-interest loans on any matter. This does not prevent local

government from supporting the development of district energy through subsidies. In general,

technical and operational expertise in local governments need to be further developed before a

wholly-public model could be established.

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Having said that, even though a privately-owned model might seem to be the most appropriate in

Chile’s highly liberalized economic environment, there are a number of risks and drawbacks which

would have to be mitigated before a fully private model could be implemented. These risks include

uncertainty in the connection of clients, in legislation, and various potential restrictions in

intervention in public areas, such as roads and parks.

Chile’s concession program began over 25 years ago, and has resulted in over 83 projects

awarded, totaling an investment of nearly $19,000 [MUSD] [56]. Most such projects are related to

interurban mobility, urban highways, airports, public buildings and hospitals. Concessions allow

for a decrease in the risk profile, as different instruments can be included, such as minimum

guaranteed income, change insurances, subsidies, etc. It is an open, non-discriminatory and

transparent process that enables private investment with close public involvement. Concession

is restricted to 50 years, after which the assets are returned to the Ministry of Public Works.

Therefore, a concession business model is recommended, as it can:

• Decrease private risk by assuring a guaranteed income

• Facilitate incorporating the social benefits of a district energy system through

subsides

• Maintain public ownership. A 30-year concession could be considered, such that

when the concession is renewed it incorporates reinvestment in assets that reach

their lifespan

• Ease the permit process and decrease regulatory risks.

There are various stakeholders to be coordinated in order to successfully carry out a district

energy project. As the chosen business models allow for subsides to be considered, available

funding from the Ministries of Energy and Environment may be accessed. Moreover, funding

available from MINVU is key, as the results hereby presented rely on improvement on the thermal

insulation in residential dwellings.

4.6.6. Comparison of the business as usual scenario with the

selected district energy alternative

As previously stated, the results show that district energy is cost effective for customers other

than in residential dwellings. To supply a competitive heating cost of 45 USD/MWh to residential

housing, a total subvention of $2.1 MUSD would be required. This subvention may be financed

by the social benefit of reducing PM emissions, hereunder calculated.

To understand the environmental benefits of a district energy, emission factors from US EPA [54]

and emission factor of Chilean Central Interconnected System have been used. It must be noted

that the EPA factors do not differentiate between PM 10 and PM 2.5. However, approximately

93% of emissions can be estimated to be of PM2.5 [57]. Three cases are compared. The

scenarios are:

• BAU scenario: Considering current insulation standards, the emissions from a

scenario where thermal comfort is met, and energy poverty decreased

• Insulation improvement scenario: Emission levels after a program to improve energy

efficiency in dwellings

• District heating scenario: Replacement of the current energy system by district

heating on the selected site considering energy efficient dwellings

¡Error! No se encuentra el origen de la referencia. summarizes the results for each scenario,

and the marginal emission savings.

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Total CO2

emissions

[ton]

CO2

Emission

savings [ton]

CO2

Emission

savings

Total PM 2.5

emissions

[ton]

PM 2.5

Emission

savings [ton]

PM 2.5

Emission

savings

BAU scenario 6,871 - - 62 - -

Insulation

improvement

scenario

4,630 2,241 34% 41 21 34%

District

energy

scenario

3,388 1,242 27% 0.6 40 99%

Table 4-26 - PM and CO2 emission results

The results show that a MINVU program to improve thermal insulation has an important impact

on the air quality, decreasing particulate emissions by 34%. Furthermore, the centralization of

energy systems facilitates the mitigation of emissions through the installation of filters. Using

electrostatic precipitators, most of PM emissions are mitigated, while CO2 emissions are reduced

by 27%.

There is a direct relationship between PM concentration and respiratory diseases that include

cancer. Even though it is not included in the economic analysis, there is an important social benefit

of decreasing these emissions. This relates to reduced expenditure in related health services and

an overall increase in the quality of life. Moreover, as the system includes several residential

dwellings, it offers the possibility of increasing thermal comfort, which is generally low in Chile.

The social benefit of reducing emissions is estimated based on improved productivity, decreased

health expense and improved life expectancy. There are other economic benefits that in general

are not calculated, such a decreased degradation of materials exposed to the pollution.

For a social fiscal benefit of 4.4 USD/kgPM2.5, used to calculate the impact of public policies, the

social benefit of implementing an insulation improvement program is $2.8 MUSD after 30 years.

The expected cost of this program is 340 UF/unit, equivalent to a total cost of $8.3 MUSD.

The social fiscal benefit of implementing district energy in Escuela Agrícola is $5.3 MUSD. This

benefit is obtained almost exclusively by replacing the heating source in residential dwellings, and

therefore may be used directly in decreasing their heating bill. This social fiscal benefit far exceeds

the subvention required to make district energy cost competitive for residential dwellings.

As previously discussed, district energy is a more disruptive project than the conventional

distributed heat generation, the success of the project is linked to the integration of all

stakeholders in its development, including the community. This presents an opportunity to

educate the public regarding energy usage. It also opens the debate and can aid in setting a

higher standard of buildings energy efficiency, as there is a minimum efficiency value at which

the district energy becomes viable. In brief, a district energy project could help tackle energy

poverty in Chile, contributing directly to improving the population’s quality of life.

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4.6.7. Evaluation of potential district heating expansion plan

District energy systems are successful when they continue to grow and expand throughout the

city, especially if the initial investment has already been made. The direction in which the system

must grow is dynamic as cities develop and as district energy systems become viable. For this

reason, a tool has been created to enable a rapid analysis of potential additional customer

connections into the system.

A sensitivity analysis is undertaken to rapidly evaluate the connection of a group of clients.

Through a marginal profitability analysis, a first assessment of the economics of adding potential

new clients can be estimated based on the aggregate demand and the increase of piping length.

This tool only considers the costs of connecting and supplying the customers with energy, and

not the potential cost of an increase in the required installed capacity of the generation plant.

Marginal profitability analysis is shown in Figure 4-26¡Error! No se encuentra el origen de la

referencia.. For a given pipe network length and a heating demand, the LCOE is calculated. This

cost considers the investment in the piping network, the operation of the pumps for the piping

network and the operation of the energy plant. Care must be taken in identifying the piping length,

as it is a closed circuit from the main distribution point to the customer and back again.

Considering the low cost for residential housing, the tool is set up for all clients other than

dwellings alone. This LCOE is compared directly with that resulting from the table, allowing to

discard those customers for whom district heating is not cost effective. As the interconnection of

a specific customer is assessed, the comparison must be made with the Monte Carlo results of

that specific typology, shown in Figure 4-26¡Error! No se encuentra el origen de la referencia..

As previously noted, the results shown are related to the costs of expanding the existing district

network presented in this report, and not applicable when starting a district network from scratch.

Figure 4-26 – Marginal profitability analysis on adding new clients to the district energy network. Green represents lower prices than “business as usual” costs, yellow represents prices within normal range of “business as usual” costs and

pink represent higher prices than in the “business as usual” case

The growth of the district heating network in Escuela Agrícola is initially focused on new buildings

in the sector as they develop. These must be designed to be ready to be connected to the district

heating network, thereby decreasing entry barriers. The decision matrix shows that “Down Town”

and “Quinta Burgos” are sectors with the potential to develop district heating. Furthermore, the

Municipality intends to include district heating in their development plans for Quinta Burgos.

Therefore, the natural long term growth of the Escuela Agrícola district system is towards down

town, aiming at interconnecting other district heating networks that are developed in the city.

4.6.8. Conclusion and key results

Coyhaique, the regional capital of Aysén, has experienced severe pollution episodes where

particulate matter concentrations have been significantly higher than both the Chilean and WHO

standards. The pollution is mainly due to the burning of humid biomass, purchased in informal

markets and used in dwellings with poor thermal insulation.

100 200 300 400 500 600 700 800

50 63 107 151 196 240 284 328 372

100 41 63 85 107 129 151 173 196

150 34 48 63 78 92 107 122 137

200 30 41 52 63 74 85 96 107

250 28 36 45 54 63 72 81 90

300 26 34 41 48 56 63 70 78

350 25 31 38 44 50 57 63 69

400 24 30 35 41 46 52 57 63

Heating

demand

[MWh]

LCOE [USD/MWh]Piping network length [m]

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The site selected, Escuela Agrícola, is currently undergoing an urbanization process, and enjoys

great political support for the development of a district heating system. The system considered

requires a 2,750 m distribution network with 10’’ (25.4 cm) diameter pipes and could supply

heating and domestic hot water to 5 buildings and approximately 400 dwellings.

The economic prefeasibility analysis shows that the most cost-effective option is to develop a

district heating system with a wood chip boiler. The initial investment is approximately of $8.1

MUSD, selling thermal energy at 55 USD/MWhth. An option to decrease the Capital Cost is a

mixed location usage. However, this does not lower the energy price as the land price is relatively

low (162 USD/m2). In order to make the system cost effective for residential housing, a selling

price of 45 USD/MWh would be required, which is achievable with a $2.1 MUSD subvention.

Thermal energy consumption levels in Escuela Agrícola are expected to rise since, in general,

there is inadequate thermal comfort at present. If energy poverty is decreased and adequate

thermal comfort is achieved, then the emissions are expected to be 6,871 tonCO2 and 62

tonPM2.5. It must be noted that most PM emissions are PM 2.5, and are therefore the focus of the

analysis. By introducing a thermal insulation program, emissions could be reduced by 34%, to

4,630 tonCO2 and 41 tonPM2.5. This program is expected to cost $8.3 MUSD and yield $2.8 MUSD

in social fiscal benefits, exclusively on PM 2.5 emission reduction. Finally, if a district heating

project is implemented in an energy efficient dwelling scenario, then the CO2 emissions can be

reduced by 27%, to 1,242 tonCO2, while PM 2.5 emissions are reduced by up to 99%, to 0.6

tonPM2.5. This has a social fiscal benefit of $5.3 MUSD, significantly above the level of subvention

required to reduce heating prices in dwellings.

A concession contract is the recommended solution, due to high complexity, the need for

intervention in public areas (roads, parks, etc.), and the risks and social fiscal benefits linked with

district energy. Through this Concession Contract business model, property is maintained by the

public sector, while private expert entity would manage the project. Moreover, a concession can

reduce risks by securing a minimum guaranteed income, while also providing instruments to

account for positive external factors through subsides.

The main outcomes of the analysis are summarized in Figure 4-27.

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Figure 4-27. Main outcomes of the rapid assessment

4.6.9. Recommendations and Next steps

These recommendations and proposed next steps are based on the main learnings obtained

through this district energy rapid assessment, and the consultations with local and national

stakeholders that took place along the process:

✓ Consider the identified project in Escuela Agrícola as a small-scale pilot for demonstration

purposes of the technology to citizens, and to learn on the administrative processes required

to develop a district heating project. A City-wide Analysis and a District Energy Master Plan

are highly recommended to pre-define a short, medium, and long-term strategy.

✓ It is recommended to explore with the Regional Government the possibility of applying

economic incentives to the project. The cost-benefit analyses performed under this study

indicated that considering social benefits, such us the reduction of premature deaths, chronic

and acute diseases, the costs of applying incentives to the project would be less than the

health costs in which the administration would need to incur if the project wasn’t developed

and the traditional woodstoves would remain.

✓ It is recommend to measure the anchor heating demand before undertaking the detailed

engineering assessment. The potential connection of clients should be evaluated through

letters of interest.

✓ It is suggested to the Municipality and the Regional Housing Service (SERVIU) to support

Escuela Agrícola beneficiaries in the collective application to the special call for thermal

housing insulation of the MINVU subsidy in saturated zones (PPPF). This would help improve

users' thermal comfort and overall system performance.

✓ It is suggested to the Regional Housing Service to explore the possibility of studying the

design of a district energy project in a new DS19 lot like La Chacra G. After the design,

evaluate if it’s convenient or necessary to apply some type of incentive for the development

of the pilot with conventional MINVU funds or extra funds, as in projects of special complexity.

✓ It is necessary to carry out dissemination processes and establishing working groups with

citizens, to explain about energy efficiency measures and district energy systems, social and

Investment costs

$ 8.1 MUSD

Installed capacity

4.6 MW

Heating demand

11.8 GWh

Emissions savings

1,242 ton CO2eq/year

Emissions savings

40 tonPM2.5/year

End-user price

55 USD/MWh

Piping length

2,750 m

Piping diameter

10''

Required woodchip

3,029 ton/year

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climatic benefits to adhere users to the technology, and to involve them in the territorial

planning instruments updates discussions (PLADECO and Regulator Plan).

✓ It is also important to show project opportunities in national and international forums to attract

potential developers' interest and investment.

✓ It is recommended to analyze the project of new developments in the Quinta Burgos

development area, carried out by the District Energy Initiative in Cities, and explore the

possibility of taking it to a commercialization phase.

✓ Analyze the District Energy Feasibility Study for all of Coyhaique carried out by Aiguasol for

the Ministery of Energy, and consider the tariffs presented in that Study, as reference for

Escuela Agrícola project.

✓ The Ministry of Energy is leading the project: “ACCELERATION OF INVESTMENT IN

EFFICIENT AND RENEWABLE DISTRICT ENERGY SYSTEMS IN CHILE”. The Agency of

Sustainable Energy will be the Implementing agency, where the National District Energy

Office will be placed. The Ministries of the Environment and Housing and Urban Planning are

directing partners, and UN Environment will provide technical advice. It is suggested to

Municipalities and the private sector to be attentive to the project’s kick-off, and to the support

mechanisms for the development of District Energy Projects.

✓ If resources are available, complete a long-term and city-wide district heating master plan,

considering the evaluation of different existing technologies, energy sources, and integration

with the electrical system. This master plan should encompass the full potential of the urban

part of the city, its expansion according to the communal regulatory plane, and consider a

development horizon of 30 years ahead.

✓ The Coyhaique Communal Regulatory Plan does not include energy infrastructure in land

uses. It is recommended to study the possibility of including a sectional modification for the

areas that require the installation of the thermal plant (s).

✓ Include in the Regulatory Plane’s update (under development), energy infrastructure land use

in the areas selected for the locations of the thermal plants according to the District Energy

Feasibility Analysis for the entire city.

✓ It is suggested that the Regional Health Secretariat analyse the harmless nature of a district

heat plant, by including emissions abatement, and mitigation measures of possible impacts,

such as noise.

✓ It is suggested to create a working group for the development of the District Energy Master

Plan for Coyhaique, to overcome gaps, and to analyse opportunities. We recommend

including Municipalities' urban planning departments, regional secretariats of environment,

energy, housing, SERVIU, the Regional Government, CONAF, MOP, MIDESO and other

public actors as initiatives progress. It is advisable to propose to the working table and the

regional Intendant, the connection of public buildings to the district heating system.

✓ It is recommended to follow up on the updates of the legal framework the Ministry of Energy

is developing, also to the business and property models, in particular ESCO models and

concessions mechanisms.

✓ We recommend advancing in the understanding and establishment of the legal mechanisms

for the Municipality to be involved in the development of future networks. It is advisable to

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dynamize the development of district energy, involving in the creation of legal structures with

the capacity to provide services, to tender works and concessions, to generate enabling

conditions, to look fiscal measures for investment risk reduction, etc.

✓ It is recommended to establish the roles of the public stakeholders in the ownership models,

construction/exploitation tender processes, administration, and monitoring of district energy

projects. It is suggested to delegate a general coordinator and a person in charge of training

at the technical and citizen level of the district energy for the city.

✓ The development of District Heating will reduce the demand for firewood at the retail level

and, on the other hand, the structured consumption woodchips by the thermal plants, will help

to develop a formal and sustainable market. It is proposed to encourage the wood chip market

and establish cooperatives and strategic alliances with small and medium-scale biomass

producers to reduce operating costs.

✓ It is suggested to the Ministry of Energy to continue working on the regularization and control

of the fuelwood market and the Superintendence of the Environment in the supervision and

sanction of non-quality wet wood.

✓ It is suggested to link the commune's (thermal) district energy transformation with the

development plan (PLADECO), smart city programs, national energy efficiency policies,

climate change, and other sustainable development policies.

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5. SANTIAGO




The city of Santiago is located in the Metropolitan Area of Santiago. This area is a large bowl-

shaped valley surrounded by mountains. The mountains block the pollutants from smokestack

industries, automobile exhaust gases and dust from unpaved street and roads on city

surroundings. These generate important levels of air pollutants several times a year, especially

with cold and dry weather. For instance, in 2018 24-hour PM10 concentrations were above WHO

standards over 220 days and PM2.5 concentrations were above WHO standards over 130 days.

In 2017, the city of Santiago had a population of 206,678 [42]. It has a density of 8,963

persons/km2 and has a surface of approximately 22 km2.

Santiago is located south of the Mapocho River, hitting the river border are the cities of Recoleta

and Independencia; on the west limits with Providencia and Ñuñoa; finally, on the east, Santiago

edges with Estación Central and Quinta Normal.


The city’s energy strategy report (known as EEL by its Spanish acronym) [58] defined the total

energy need in Santiago in 2015, of 2,016 GWh, where 75% is sourced from electricity, 9% from

natural gas, 15% from Liquefied Petroleum Gas (LPG), and 1% diesel. The study states that the

use of wood is negligible. It is important to note that commercial buildings use most of the energy,

some 45% of the total energy consumption, while residential buildings represent another 35%.

According to the EEL, Metro, Entel Chile and Telefónica Chile are the largest consumers.

Metrogas has the Natural Gas concession. Liquefied gas is distributed by two companies Lipigas

and Abastible [58].

The above report also estimates the amount of energy that can be produced within the city. One

potential energy source for district energy in Santiago is biomass, which has the capacity to

generate 31,652 MWh/year [59]. The report states a plan to add value to waste to energy and

biogas production; however, it faces challenges linked with its proximity to residential dwellings.

City planning:

Santiago is a well-developed city, yet it has two fast-growing areas: Estación Mapocho and Santa

Maria Street, where most new buildings are expected to be residential single-family apartments.

WEATHER

Santiago has a cool semi-arid climate [32] with mediterranean patterns: a long and warm dry

season. The temperature can go as high as 38 °C but it is 20°C on average during summer days.

In winter, the minimum can go as low as -6°C but the average is 8°C in July, the coldest month.

The mean rainfall is around 312 mm/year, and most of it falls during wintertime. Figure 5-1 and

Table 5-1 show the temperature profile in Santiago, based on the closest Weather Station: Quinta

Normal, a neighboring city [60].

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Figure 5-1 – Santiago temperature profile. Data from Quinta Normal Weather Station [60]

Temperatur

e [°C] Record high

Average

high Daily mean

Average

low Record low

January 38.3 30.1 21.2 13.4 5.8

February 35.9 29.4 20.2 12.7 4.4

March 36.2 27.4 18.1 10.2 1.2

April 33 22.3 14.3 6.5 -1.5

May 31.6 18.1 11.1 4.8 -2.8

June 26.9 15.5 8.4 2.9 -4.3

July 28.4 14.3 7.7 1.6 -6.2

August 31 16.2 9.2 3.8 -5.8

September 32.6 19.6 11 5.7 -2.6

October 33.1 22.8 14.8 8.4 -1.3

November 34.8 26.1 17.6 10.3 0.1

December 37.3 28.7 20 12.2 1.0

Table 5-1 - Santiago temperature profile. Data from Quinta Normal Weather Station [60]

AIR QUALITY

Air pollution effects, in particular Particulate Matter (PM) concentrations, can be directly linked to

cardiovascular, respiratory diseases, and cancers [33].

The yearly CO2 emissions in Santiago are estimated in 689,719 tonsCO2 [61], where 76% is

attributed to electricity, 8% to waste-related emissions and 16% to natural gas, LPG and

kerosene. It must be noted that transport sector is no included in the calculation.

Table 5-2 shows the number of days in which the daily average particulate matter concentration

of PM2.5 and PM10 in Santiago have exceeded the Chilean and WHO standards. It is noted that

Chilean standard is met for PM10, while concentrations are above WHO recommendations

approximately 60% of the year. On the other hand, Chilean standard is nearly met for PM2.5

concentrations, while concentrations are above WHO recommendations 37% of the year.

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Number of days above

the standard

2012 2013 2014 2015 2016 2017 2018

PM2.5 Chilean standard 30 24 15 68 46 51 35

PM2.5 WHO standard 156 183 137 179 162 132 135

PM10 Chilean standard 11 14 5 21 3 3 4

PM10 WHO standard 254 288 249 257 260 237 225

Table 5-2. Number of days with pollutant 24-hour mean concentration above Chilean and WHO standard for different years in Santiago. Data from [32]

Particulate matter concentration in Santiago is shown in Figure 5-2. Despite constant seasonality

seen in the figure, there is a downward trend according to the Ministerial Regional Secretary of

Environment (SEREMI by its Spanish acronym). There has been improvement in the reduction of

PM2.5 and PM10 by 65% and 45%, respectively, between 1989 and 2011. According to the WHO,

Santiago had the 4th and the 17th position on the amount of PM 10 and PM2.5 in 2014 in Chile

[31].

Regarding SO2, O3 and NO2 levels shown in Figure 5-2, it can be seen that the concentration

levels are below the maximum allowed. The concentration levels have remained stable, and

ozone and nitrogen dioxide concentrations show clear seasonality with an increase of

concentration levels in the winter. This increase is due to bad ventilation settings and caused by

the transport, not due to pollution associated with heating [13, 30].

Figure 5-2 – Concentration of the key air pollutants in Santiago. Data from SINCA [32]

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levels, it becomes key that any system studied either tackles PM polluters and/or uses



PM emission levels.

Opportunity: Stricter regulations could lead to a move towards a better and eco-friendly

centralized heating system.



A Heating Degree Day (HDD) is a measure designed to quantify the demand of energy to heat a

building. HDD is considered between May and September. Table 5-3 shows the amount of HDD

at different base temperatures, i.e. the outside temperature under which the building requires

heating. More information on how it is measured can be found in APPENDIX A – DEGREE DAY.

Base temperature 15[°C] 18[°C] 21[°C]

Average HDD 430 820 1,361

Min HDD 272 514 858

Max HDD 659 1,088 1,673

Table 5-3 – HDD at different base temperatures


A Cooling Degree Day (CDD) is a measure designed to quantify the demand of energy needed

to cool a building. CDD is considered between November and March. Table 5-4 shows the amount

of CDD at different base temperatures, i.e. the outside temperature over which the building

requires cooling. More information about how it is measured can be found in APPENDIX A –

DEGREE DAY.

Base temperature 18[°C] 21[°C] 23[°C]

Average CDD 632 230 76

Min CDD 464 146 35

Max CDD 800 366 172

Table 5-4 – CDD at different base temperatures

HEATING AND COOLING DEMAND AND KEY CLIENTS

Table 5-5 shows the key energy consumers in the city. Public buildings have been pre-selected

in this phase of the analysis to include as key customers, as they need to meet their CO2 reduction

targets.

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Ministerio de Minería Office 2,450


Ministerio de Telecomunicaciones Office 4,770

CONICYT Office 5,590

Banco Central Office 8,250

Moneda Office 10,546

Contraloría General de la Republica Office 11,440

Ministerio de Agricultura Office 11,600

Tesorería General de la Republica Office 12,400

Ministerio de Economía Office 13,000

Ministerio de Educación Office 13,200

Fuerza Armadas Office 13,750

Banco Estado Office 16,000

Defensoría Pena Office 16,200

Ministerio de Relaciones Exterior Office 18,420

SBIF Office 20,400

Ferrocarriles del Estado Office 22,800

Santander Edificio corporativo Office 24,000

Subsecretaría del Gobierno Regional Office 24,720

Ministerio de Hacienda Office 25,200

Dirección del trabajo Office 25,200

Banco Estado Office 31,350

Ministerio de Obras Públicas Office 37,400

Centro cultural la moneda Community 8,000

Municipalidad de Santiago Office 3,400

Tribunales Office 5,600

Teatro Teletón Community 6,600

Library Community 3,600

Hospital Health 5,000

Ex congreso Nacional Community 5,000

Museum Community 2,000

Museum Community 1,100

Academia Diplomática Education 1,500

Universidad de Chile Education 1,000

Government Building Office 1,800

Sum 426,146

Table 5-5 – Key clients in Santiago





area.

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district energy system. Currently, the vast majority of the buildings use HVAC systems or are

considering to install one. These systems are therefore considered for the base case scenario.

Further details on the Business as Usual (BAU) scenario is given in Section 5.6.1 for Santiago,

Section 6.6.1 for Renca, Section 7.6.1 for Independencia, Section 8.6.1 for Recoleta and Section

4.6.1 for Coyhaique.

The Levelized Cost of Thermal Energy (LCOEth) is defined as the ratio of the total expenditures

that the system has (i.e. investment, operation and maintenance) and the total energy that the

system produces throughout its lifetime. The total energy includes both, heating and cooling, as

therefore investment and maintenance costs would not be properly allocated. The TCO,

calculated using the LCOEth, is directly compared with district energy price.

As there is uncertainty inherent in the data collected, Monte Carlo Simulations are used to model


variables are equipment prices fluctuations from different suppliers, equipment efficiencies,

annual maintenance requirements per year, the buildings’ energy demand, and the electricity and

gas prices.

Monte Carlo Simulations are carried out based on specific parameters for different types of


results in Figure 5-3 show that the P50 (median) value for Santiago is approximately 63

USD/MWh, and most likely varies within the 48 - 80 USD/MWh range. It is noted from the figure

that health buildings have the lowest prices, with an average of 60 USD/MWh. Offices and

educational buildings pay on average 63 USD/MWh, followed by residential with 70 USD/MWh.

Lastly, commercial buildings pay on average 75 USD/MWh. This is due to the fact that they do

not use heating, and therefore, investment costs are allocated only to one kind of thermal energy.

Figure 5-3 – Results of the Monte Carlo Simulation for the LCOE



To plan a district energy system, it is fundamental to take into consideration the city’s expansion

plans. Figure 5-4 shows the distribution by building type of the new constructions planned in the

city of Santiago [52].

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New development areas are of particular interest to district energy schemes as the buildings may



installation of other public services such as water, telecoms or electricity, thereby saving

construction costs.





enables energy efficiency and incorporates local energy resources.

Santiago’s local energy strategies were developed in 2016 [13], and the city’s energy vision was

defined as: “Santiago, a sustainable and innovative city, committed with energy management,

through integral local development, with emphasis on education and inclusion of all stakeholders”.

Their plan is based in three pillars:

• GHG emission reduction (reduce 30% by 2030)

• Energy efficiency and renewable energy

• Consult all relevant stakeholders for strategic decision-making

Among the actions identified to fulfill this goal that are related to a district energy system are:

• Neighborhood program. By 2030, the project aims to promote renewable energy

and energy efficiency in neighborhoods in the city, and the development of eco-

neighborhoods in Santiago. Within these new neighborhoods, district energy

development is an alternative that must be assessed.

• Replacement of equipment through ESCOs. In order to improve energy efficiency

and decrease GHG emissions, a program is envisioned to encourage ESCOs. If

sufficient buildings within a small area can coordinate their heating and cooling

supply, it would facilitate the development of a district energy system.

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Additionally, the annual CO2 emissions of the city were estimated in 689,719 ton CO2.

5.4. Stakeholder Mapping


Santiago are summarized in Table 5-6. Key clients shown have already expressed interest in the

results of the rapid assessments for a potential connection to the system.


Consents

Municipality

SERVIU

Ministry of Energy


Ministry of Housing and Urbanism


SEA








Investors Banks

Veolia

Energy-Tracking

Aguas Andina

Engie

Investor, loans.

Developer.

Developer.

Developer.

Developer, PPA supplier.

Engineering and

equipment supply


Abastible

Danfoss

Engie Services

EBP

ISPG

Metrogas

Ministry of Health

COSSBO


LPG supplier

Equipment.




Natural Gas Supplier.

Overseer of key clients (Hospitals)

District energy operator

Customer Central government - INAPI

Universidad de Chile

Universidad Católica

Hospitals

Key client

Key client

Key client

Key client

Table 5-6 - Main stakeholders in Santiago


Several meetings were held with national and local government officials to discuss on the city

planning and potential new development areas. In addition, meetings were held with COSSBO,

the oldest district energy operator in the country.

COSSBO, founded in 1986, is the Torres San Borja district energy cooperative organization. It

manages and operates the potable water treatment plant, hot water service and district heating

system. Today, it serves 24 buildings with hot water and/or district heating. In 2017, 9 out of 14

towers were effectively utilizing the district energy. Each tower community decides on annual

basis the use of district energy. In the case the tower community choses to be supplied, the co-

owners pay an equal fixed cost for the winter season.

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In recent years, COSSBO has faced major issues that put their operability at risk. As decentralized

technologies continue to decrease in costs, an increasing amount of buildings are choosing to

disconnect from the district energy system. Fixed prices are therefore distributed between a

decreasing amount users, further endangering the continuity of COSSBO. Moreover, as the

owners of Torres de San Borja co-own the system, the access to funding for upgrades and

overhauls is extremely limited. Currently, lack of measurements of the operating conditions

difficult any action that could be taken to reduce costs.

Cost are charged as a flat tariff of approximately $130 USD per month on heating season (3 - 4

months) to maintain apartments at least at 19°C. COSSBO also has non-residential clients who

are charged on energy basis. The tariff, however, can reach values up to 280 USD/MWh, even

higher than the electricity cost.

All these issues present a major opportunity for a district energy developer, since COSSBO is

more likely to be open to collaborate and create synergies that can enhance both businesses.

While support is given to improve their operation, COSSBO can provide great value through their

expertise and their already existing infrastructure.

5.5.1. High Potential Site 1 – Torres de San Borja

The “Torres de San Borja” original project included 45 residential towers of 21 to 23 floors. Today,

the complex is self-supplied with drinking water, domestic hot water and heating. The housing

units have at least 70 m² and are aimed at a medium socioeconomic level. As previously

mentioned, the area hosts the oldest district energy operator in Chile.

The site is strategically selected considering that a complementary system to COSSBO’s

operations can gain from their existing infrastructure, while also supporting them to overcome

their main challenges. The first site is shown in Figure 5-5.

Figure 5-5 – The first potential district energy development. Site 1 – Torres de San Borja

The potential customers considered, their classification and the operational surface are indicated

in Table 5-7. Key customers are identified with an asterisk.

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Customer Sector of Activity Total Surface [m2]

UC Hospital (*) Hospital 35,280

UdeCh architecture building (*) Education 2,100

Posta Central Hospital (*) Hospital 19,000

UC lira Hospital (*) Hospital 6,900

UC Campus (*) Education 17,700

INAPI (*) Office 11,000

Cancer Center Hospital 770

Residential building 1 Residential 4,500

Office 1 Office 6,320

Total 103,570

Table 5-7 – Potential customers – Site 1 Torres de San Borja

5.5.2. High Potential Site 2 – Municipality

The site was suggested by the Municipality of Santiago, considering that their steam boiler has

an idle capacity of approximately 50%. However, considering the operating schedule of the boiler,

and that it may require major overhauls, a new boiler would be required. The second site is shown

in Figure 5-6.

Figure 5-6 – Second potential district energy development. Site 2 – Municipality

The potential customers considered, their business type and the area are indicated in Table 5-8.

Key clients are identified with an asterisk.

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Customer Sector of activity Total surface [m2]

Santiago Municipality (*) Office 3,400

Museum (*) Commercial 6,200

Post office (*) Office 19,500

Office building 1 Office 3,500





Total 81,380

Table 5-8 – Potential customers – Site 2 Santiago Municipality

5.5.3. High Potential Site 3 – Estación Mapocho

Site 3 groups different type of facilities, allowing to have a smoother demand profile. Several

government buildings are located in the area, and further development is expected. The third site

is shown in Figure 5-7.

Figure 5-7. Third potential district energy development. Site 3 – Estación Mapocho



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Dirección del trabajo (*) Office 12,274

Hospital (*) Health 5,000

Court house (*) Office 5,600

Police (*) Office 12,680







Total 105,484

Table 5-9 – Potential customers – Site 3 Estación Mapocho



HPS - Santiago Points

1 – Torres de San Borja 2.9

2 – Municipality 2.3

3 – Estación Mapocho 2.3


The results shown in the table above indicate that site 1 - Torres de San Borja is the most

suitable site to continue with the pre-feasibility study. More information regarding the Matrix and

scores of each factor for each site can be found in APPENDIX B – DECISION MATRIX.

COSSBO’s operations were visited and meetings with the operators were held. The main outputs

of the meetings held are:

• COSSBO requires urgent support to improve their business, otherwise, their

operability is at risk.

• Even though throughout their history COSSBO has been closed to outside influence,

they are now more receptive to outside support. This opens an opportunity to create

synergies and enhance the development of district energy in Santiago.

• The infrastructure for the distribution system already exists. In the analysis,

nonetheless, conservative costs will be considered to account the concession of the

infrastructure’s use. While this cost is considered to be paid with the capital

investment, negotiations with COSSBO are necessary to evaluate the option of

having a month/yearly basis concession payment.

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5.6. Pilot project pre-feasibility analysis


DESCRIPTION OF BUSINESS AS USUAL SCENARIO

While there is wide range of heating and cooling equipment, the trend is towards split systems. In

the selected site, the cooperative of COSSBO provides heating and domestic hot water (DHW)

using a centralized biomass boiler. As previously stated, their prices are no longer market

competitive, as they can reach up to 280 USD/MWh for educational buildings, or a flat $130 USD

for residential buildings during winter months.

Buildings currently supplied by COSSBO are not initially considered in the analysis in an effort to

complement their systems rather than compete against them. Therefore, the basis of the business

as usual scenario is the substitute product of district energy system: Decentralized split systems.

The cost of operating these systems varies for different clients, as larger consumers can opt for

better pricing options. Considering the variation in price and efficiencies, TCO is expected to be

up to 110 USD/MWh, as shown in section 5.2.1.4.

Considering this scenario and since, other than COSSBO, the use of biomass is negligible in the

city, the particulate emissions linked to heating and cooling is low. In the case of CO2, emissions

are linked to the grid’s CO2 footprint, of 340 kgCO2/MWh [62], which yields a yearly emission of

1,060 tonCO2.

HEATING AND COOLING ENERGY DEMAND

The heating and cooling energy demand must be defined in order to adequately assess a district

energy system. The consumption defined for each sector, i.e. a classification based on the end

use of the building, is summarized in Table 5-11. Heating and cooling demands are shown in

Figure 5-8 and Figure 5-9.

Typology Heating Cooling

Office

1 year of electricity consumption measurements

on an HVAC system

Ratios found in literature [63]

Hourly profile of an average day from ASHRAE

1 year of electricity consumption

measurements on an HVAC system



Health Energy bills, ratios found in energy audits

Consumption models from literature [64]

Over 1 year of hourly HVAC measurements

Interviews

Educational Energy bills, interviews


Energy bills, interviews


Residential Consumption models found in literature [65, 66]

Average yearly consumption from surveys [67] N/A

Commercial N/A Over 3.5 years of hourly HVAC measurements

Table 5-11 – Consumption profile sources for each typology

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Figure 5-9 - Hourly cooling demand for an average year and consumption profile of peak demand day

The results show that unlike heating loads, cooling demand in hospitals is decoupled from outdoor

conditions, i.e. the demand is stable throughout the year. This is due to the high thermal loads in

these buildings: high cooling loads are required to maintain thermal comfort in rooms with highly

specialized equipment. On the other hand, cooling loads in commercial buildings are highly

seasonal, and this sector of activity has no heating demand. Offices are considered to have

reversible system for heating and cooling, and equipment is operated in heating mode from May

to September. Finally, residential buildings heating loads requirement to reach thermal comfort

range from April to October, and no cooling is demanded. The heating and cooling consumptions

are assigned to each client of the chosen area based on their typology, as summarized in Table

5-12. The 9 customers considered account for a total of 20 buildings.

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Customer Sector

Total

surface

[m2]

Annual heating

demand

[MWh]

Annual cooling

demand

[MWh]

UC Hospital Health 35,280 1,136 2,043

UdeCh architecture building Education 2,100 48 72

Posta Central Hospital Health 19,000 612 1,100

UC lira Hospital Health 6,900 222 400

UC Campus Education 17,700 406 605

INAPI Office 11,000 203 303

Cancer Center Health 770 25 45

Residential building 1 Residential 4,500 258 0

Office 1 Office 6,320 117 174

Total 103,570

Table 5-12 – Clients energy consumption


Energy Demand profile


customers, in this case, a 5% constant loss throughout the year is assumed. The results of the

hourly demand for an average year are shown in Figure 5-10, and the peak and average daily

demand in Figure 5-11. In the analysis, 30 outlier data points that would further increase the

installed capacity were constrained as abnormal data. This results in an installed capacity of 76%

of the total of all individual demand strands, i.e. the diversity factor is consistent with [55].

Therefore, the installed capacity required, i.e. the highest daily demand and annual energy

demand are 1.4 MW and 3.2 GWh for heating; and 1.8 MW and 5.0 GWh for cooling.

Figure 5-10 – Hourly heating and cooling demands for an average year

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Figure 5-11 – Average and peak daily heating and cooling demands

EFLH





1.4 𝑀𝑊= 2,270 ℎ

𝐸𝐹𝐿𝐻𝐶𝑜𝑜𝑙𝑖𝑛𝑔 =5.0 𝐺𝑊ℎ

1.8 𝑀𝑊= 4,148 ℎ

Therefore, the energy plant would be operating at full capacity for 26% and 47% of the year for

heating and cooling respectively. It is noted that the indicator shows a more attractive value for

cooling than for heating.


Four technology alternatives have been identified according to local conditions. Biomass is

discarded from the analysis as the customers considered do not currently use biomass, and

therefore, it would further increase the PM emissions, irrespective of any mitigation measures,

like filters.

• District cooling with electric chillers.

• District heating with heat pumps.

• District heating and cooling with heat pumps and gas boiler as back-up.

• District trigeneration with gas turbine - absorption chiller; electric chillers and a gas

boiler as back up

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District cooling with electric chillers:

This alternative considers electric chillers coupled with a cooling tower, as shown in Figure 5-12,

to provide only cooling. The chillers are modeled through their Coefficient of Performance (COP),

i.e. the ratio of useful thermal energy output and electricity input, as shown in Figure 5-13. The

systems are sized iteratively to mostly work at full capacity, resulting in four 500 kW chillers. With

an average COP of 4.1, the system consumes 1.2 GWh of electricity annually. The results show

that as the demand decreases in winter, so does the load factor and thus the COP of the system.

Figure 5-12 – Scheme of the district cooling with electric chiller configuration

Figure 5-13 – Hourly COP – District cooling with electric chiller configuration

District heating with heat pumps:

This alternative only supplies heat to the network. An air source heat pump is modeled according

to [68] as schematized in Figure 5-14. The results shown in Figure 5-15 yield an average global

COP of 2.5, and an electricity consumption of 1.3 GWh annually. For months where there is no

heating demand, the system remains idle.

Figure 5-14 – Scheme of district heating with heat pumps configuration

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Figure 5-15 – Hourly COP - district heating with heat pumps configuration

District heating and cooling with pumps

The third system considers heat exchange between the heating and the cooling network,

complemented by a 95% efficient gas boiler as back up when heat is required, as schematized in

Figure 5-16. The cooling is produced by the evaporator side of the heat pump. The results,

detailed in Figure 5-17 and Figure 5-18 yield an average COP of 3.3 and an electricity

consumption of 1.7 GWh annually. In winter where the heating demand is supplied by the rejected

heat of the system, the COP increases while the cooling COP greatly decreases. This is due to

an increase in the heat sink temperature. Finally, the backup boiler generates 1.8 GWh during

winter.

Figure 5-16 – Scheme of the district heating and cooling with heat pump configuration

Figure 5-17 – Hourly COP – District heating and cooling with heat pumps configuration

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Figure 5-18 – Hourly back up natural gas consumption - District heating and cooling with heat pumps configuration

District trigeneration with gas turbines - absorption chiller.

The fourth system supplies heating and cooling while also generating electricity. It considers a

gas turbine – absorption chiller system that is sized to supply 15% of the demand. The remaining

energy is supplied using electric chillers, whose electricity input is partially supplied by the turbine,

and a 95% efficient gas boiler. The exhaust of the gases is used to preheat the heating network,

allowing the turbine to reach a maximum trigeneration efficiency of 75%. A scheme of the

configuration is shown in Figure 5-19. The results, detailed in Figure 5-20 and Figure 5-21 show

an annual efficiency of 67% for the gas turbine – absorption chiller system, with higher efficiency

in the winter where the exhaust heat is recovered, and an average COP of 4.0 for the electric

chillers. Similarly to the previous case, the COP greatly decreases in the winter where demand is

lower and the system is operated at partial load.

Figure 5-19 - Scheme of the district trigeneration with gas turbine and absorption chiller configuration

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Figure 5-20 - Hourly COP and efficiency - District trigeneration with gas turbine and absorption chiller configuration

Figure 5-21 - Hourly natural gas consumption and electricity surplus - District trigeneration with gas turbine and absorption chiller configuration

DISTRIBUTION GRID

A scheme of the network is shown in Figure 5-22, with all potential customers identified. The

layout of the 1,180 m distribution grid is designed to follow the street layout. A distribution system

with two main pipelines for heating and two for cooling is considered. This configuration results in

lower operating costs while still enabling future expansion without a significant increase on

investment costs or logistic issues.

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The distribution system is sized to operate with a temperature difference of 25°C and 7.5°C for

heating and cooling respectively. The head loss calculation is based on the length of the system,

while the hourly energy consumption is based on the demand.

The pumps consume 22 MWh and 116 MWh of electricity for the heating and cooling distribution

systems respectively. The maximum flow required to supply the demand is 50 and 210 m3/h for

heating and cooling respectively. The piping diameters are then 6’’ (15.2 cm) for heating and 12’’

(30.5 cm) for cooling.




constrains are:












The main inputs for the analysis are in Table 5-13.

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IRR % 7.6


Corporate tax % 27



Natural gas price USD/m3 0.47





years of operation. The corporate tax rate used in this analysis is a direct tax applied to incomes





CAPEX ASSUMPTIONS





system.

• Piping distribution network: Main distribution and water return piping, public area


• Transfer stations: Major heat transfer equipment.




As previously mentioned, a conservative cost of the distribution infrastructure concession is

considered to be paid with capital investment. This is equivalent to the cost of developing new

infrastructure, i.e. the maximum price that should be paid. The median CAPEXs are shown in

Table 5-14. Further detail on the CAPEX estimations of each configuration is given in Annex

10.4.1.1.

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District cooling with chillers $12.4

District heating with heat pump $11.4

District heating and cooling with heat pumps $13.4

District trigeneration with gas turbine and absorption chiller

$13.9


The distribution of the CAPEX is shown in Figure 5-23 – Median CAPEX distribution of the different configurations and detailed in Table 5-15.


Option costs [MUSD] Development Thermal plant

Distribution system

Connection system


District cooling with chillers 9.6 0.6 1.1 0.2 0.3 0.6 12.4


9.6 0.2 0.9 0.2 0.2 0.4 11.5

District heating and cooling with heat pumps

9.7 0.5 1.7 0.3 0.3 0.8 13.4


9.7 0.8 1.7 0.3 0.4 0.9 13.9

Table 5-15 – Median CAPEX distribution of the various configurations reviewed

In all the options, the most costly component of the CAPEX is the development cost, linked mainly

to land cost. Then, the second largest component is the distribution system, which considers the

capital investment in piping network. The ‘Others’ component is also one of the principal items,

consisting on contractor profit and contingencies.

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The same analysis is carried out considering a free land concession. The median CAPEXs are

shown in Table 5-16, Figure 5-24 and Table 5-17.





$5.0


$5.5




Distribution system

Connection system




1.2 0.2 0.9 0.2 0.2 0.4 3.1


1.4 0.5 1.7 0.3 0.3 0.8 5.0


1.3 0.9 1.7 0.3 0.4 0.9 5.5

Table 5-17 – Median CAPEX distribution of the different configurations excluding land cost

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As a free land concession is considered, development cost decreases in $8.3 MUSD. The other

components remain constant and the main components of the CAPEXs are the same as in the

analysis considering land cost.

OPEX ASSUMPTIONS

The operational expenditures include annual maintenance costs for the main equipment,

distribution system and transfer stations (including major maintenance costs), utility costs (water,

electricity and natural gas) and administration costs.




system


connection system




Administration cost 10,500 [USD/MWth]

Table 5-18 – OPEX assumptions

For the district trigeneration, the electricity is assumed to be sold in to the grid, either with a Power

Purchase Agreement (PPA) or on the spot market, and not directly to the same clients of the

district energy system. The utility costs (fuel, electricity and water consumption) are treated

separately from the OPEX to obtain the selling price. Further details on the OPEX estimation are

presented in APPENDIX 10.4.1.2.



the district energy project has to be quantified, so that risk may be assessed. The values could






occurrence.

The uncertainty range for the OPEX is detailed in Table 5-19 and considers changes in demand,

local labor cost, gas tariff, water price and electricity price.

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scenario

Min

Value Max Value


Function


Natural gas price USD/m3 0.45 -10% 10% Rectangular

Water price USD/m3 0.50 -0.5% 1% Rectangular




probability distribution function used is detailed in Error! Reference source not found..


Function




¡Error! No se encuentra el origen de la referencia. – CAPEX uncertainty values for Monte Carlo Analysis














of 30 years. The result is the price the client will pay, excluding VAT. A 50% of the CAPEX is

considered to be financed with a loan paid through the 30 years of the project duration with a 4%

effective interest rate. The debt service account is detailed in APPENDIX 10.4.1.3.

For the district heating and cooling with trigeneration, the electricity is assumed to be sold to the

grid, either with a PPA or to the spot market, and not directly to the same clients of the district

energy system.

The results for the scenario with 50% debt and land cost are shown Figure 5-25 for each

alternative.

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Fuel [USD/MWh]

CAPEX [USD/MWh]

Others [USD/MWh]


District cooling with chillers 19 10 42 57 129


19 16 60 84 179


18 10 27 37 93


33 9 28 39 109


The configuration with the lowest energy price is district heating and cooling with heat pumps,

followed by the district heating and cooling with trigeneration, district cooling with chillers and

finally the most costly option is the district heating with heat pumps. It must be noted that current

prices are not cost competitive with substitute products under the conditions analyzed, and

therefore, further incentives are required.

FINANCIAL ANALYSIS


financial model enables and understanding of how the project would change with a loan and

subsides. In this case, however, the same variables are maintained throughout the analysis.




project loan at 4% interest payable for 30 years. The energy price is then calculated by equaling

the NPV to zero for a 30-year operation payback horizon.

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To simulate the end user energy tariff impact, a CAPEX reduction of $8.3 MUSD is shown in

Figure 5-26. The CAPEX reduction can be expressed as land/terrain free concession, using

available space either in government buildings or in public areas (e.g. example parks).



Fuel [USD/MWh]

CAPEX [USD/MWh]

Others [USD/MWh]




20 16 14 18 67


18 10 9 12 50


33 9 11 14 66


Considering a free land concession, the least costly solution is district heating and cooling with

heat pumps, closely followed by district cooling with chillers. The price difference is small, of 8

USD/MWh, therefore, strategic considerations must be taken in account to select the best

alternative.




Connection fee, Consumption fee and Capacity fee. VAT excluded from the tariff.




Consumption fee: Covers variable operational costs such as electricity consumption, gas, water


prices.

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non-variable costs of the plant (administrative, operation and maintenance costs).

The scope of the district energy systems includes providing services up to the energy transfer

station. For this reason, any modification of internal systems to distribute the heat inside buildings

must be carried out by each customer. Consequently, this secondary cost is not considered in the

project CAPEX.

The main results are summarized in Figure 5-27 and Table 5-22. The fees are normalized in

energy units in order facilitate comparison. It can be adapted according to the commercial strategy

of each district energy developer since, as each developer has access to different utility prices

and capital costs.

Figure 5-27 – Median tariff [USD/MWh] for all configurations considering lifespan of 30 years, excluding VAT





District cooling with chillers 40 9 80 129


56 13 109 179


26 13 54 93


27 24 58 108


The results show that none of the alternative are competitive with standalone solutions, and

therefore, a district energy system requires further incentives.

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Figure 5-28 - Median tariff [USD/MWh] for all configurations considering lifespan of 30 years, excluding VAT and land cost







13 13 40 67


9 13 28 50


10 23 32 65


The results show that district cooling and district heating and cooling, and district cooling with

chillers can reach market competitive prices.

5.6.4. Selected Option

Based on the technical and economic pre-feasibility study developed in Santiago for the Torres

San Borja sector, a free land concession has to be considered in order to have energy prices

closer to being cost competitive. Then, district heating and cooling with heat pumps reaches an

energy price of 50 USD/MWh and district cooling with chillers reaches an energy price of 58

USD/MWh. As the price difference between these two systems is minor (8 USD/MWh), factors

such complementing COSSBO’s systems appear to make cooling systems more convenient.

Consequently, the district cooling with chillers is chosen as the best alternative. The scheme is

shown in Figure 5-29.

Figure 5-29 – Scheme of the district cooling system - Electric chillers configuration

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price of 129 USD/MWh. This price is higher than the 90% previously of 48 - 80 USD/MWh due to

the high land cost. If the available space within COSSBO was used as a free concession, the new

selling price is 58 USD/MWh, slightly lower than the median value for Santiago calculated (63

USD/MWh). To have a more competitive price, of 51 USD/MWh, besides having no land cost, the

concession of COSSBO´s piping infrastructure paid with the capital investment has to be

equivalent to the half of the needed investment for developing new piping trenches.

The tariff configuration for the selected option is summarized Table 5-24 where the fees are

normalized in energy units for ease of comparison.

Unit Tariff with

land cost

Tariff without

land cost

Tariff without land and

negotiated concession

of COSSBO’s

infrastructure

Connection fee [USD/MWh] 40 12 10

Consumption fee [USD/MWh] 9 9 9

Capacity fee [USD/MWh] 80 37 32

Total [USD/MWh] 129 58 51

Table 5-24 – End User median tariff price composition [USD/MWh] with and without land cost for the selected alternative

Considering no land cost and the negotiated concession cost of COSSBO’S infrastructure, the

most costly component of the tariff is the capacity fee of 32 USD/MWh. This is explained because

it covers the capital investment including the main piping network. The connection fee of 10

USD/MWh corresponds to secondary piping and non-variable costs of the plant. The consumption

fee of 9 USD/MWh corresponds mainly to electricity consumption.



liberalize the energy generation sector, in the early 80’s. Local governments face difficulties in

engaging into a wholly public business model, as they are not allowed to participate in any

economic activity that pursues profit, and they cannot raise money on the public market. In other

words, they are unable to generate low interest loans on any matter. This does not prevent local




Having said that, even though a privately owned model might seem to be the most appropriate in



uncertainty in the connection of clients, in legislation, and various potential restrictions in the

intervention of public areas, such as roads and parks.

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awarded, totaling an investment of nearly $19,000 MUSD [56]. Most such projects are related to





duration is restricted to 50 years, after which the assets are returned to the Ministry of Public

Works.


• Decrease private risk by assuring a guaranteed income.

• Facilitate incorporating the positive externalities of a district energy through

subsides.



their lifespan.

• Ease the permit process and decreased regulatory risks.

Further funding other than subsidies provided by central government must be further discussed

with the Municipality, for instance, permit fee waivers.

Finally, a required step is to seek out strategic alliances with COSSBO, where a free land

concession is negotiated. Furthermore, to make a district cooling system market competitive, a

concession of the infrastructure for the distribution system is also required, estimated at half of

the trenches construction costs.



The selected alternative requires, with no land cost and reduced costs for the distribution

infrastructure, an initial investment of approximately $4.1 MMUSD, and achieves an energy tariff

of 51 USD/MWhth. This price is below the 90% range calculated of 52 – 98 USD/MWh, therefore,

similar tariffs to business as usual costs can be achieved.

The district energy system is compared to a likely scenario of heating and cooling loads being

supplied by decentralized heat pumps. The yearly CO2 emissions of the business as usual are

1,059 ton CO2, where 684 ton CO2 are related to cooling. A district energy using chillers consumes

1.3 GWh of electricity, which yields annual emissions of 456 ton CO2. This represents an annual

reduction of 229 ton CO2 (i.e. 33%).

The use of biomass, the biggest energy-related particulate matter emitter in the city, is negligible.

Moreover, as both systems compared are electric, there is no reduction in particulate matter.

There are other benefits of implementing a district energy network that supplies cooling for large

customers that are not represented in the emissions reduction. For instance, there is a general

lack of expertise regarding their systems. The effect is not only operating the equipment

inefficiently, but it may also lead to incorrect refrigerant charges, leakages, etc. The use of district

energy allows the possibility to use low environmental impact refrigerants, as per the Kigali

Amendment to the Montreal protocol.

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As district energy systems are more disruptive project than the conventional distributed heat

generation, the success of the project is linked to the integration of all stakeholders in its

development, including the community. This presents an opportunity to raise awareness among

the public regarding energy use. It also opens the debate and can help in setting higher building

energy efficiency standards, as there is a minimum efficiency value at which the district energy

becomes viable. This is in line with the energy strategic goals of Santiago.

5.6.7. District network expansion plan








new clients can be calculated based on the aggregate demand and the increase of piping length.

This tool only considers the costs of connecting and supplying the customer with energy, and not

the potential cost of an increase in the required installed capacity of the generation plant.

Marginal profitability analysis is shown in Figure 5-30 for the district energy system. For a given

pipe network length and a heating demand, the LCOE is calculated. This cost considers the

investment in the piping network, the operation of the pumps for the piping network and the

operation of the energy plant. Care must be taken in identifying the piping length, as it is a closed

circuit from the main distribution point to the customer and back again. The value calculated is

compared with the P50 of the TCO calculated. This LCOE can be compared directly with that

resulting from the table, allowing to discard those customers for whom district energy is not cost

effective. As the interconnection of a specific customer is assessed, the comparison must be

made with the Monte Carlo results of that specific typology. As previously noted, the results shown

are related to the cost of expanding the existing district network presented in this report, and not

applicable when starting a district network from scratch. The results presented consider that a

strategic alliance with COSSBO has been developed and the infrastructure to connect the new

client already exists.

Figure 5-30 – Marginal profitability analysis on adding new clients to the district energy system. Green represents lower prices than “business as usual costs”, yellow represent prices within normal range of “business as usual costs” and pink

represents higher prices than in the “business as usual” case

The natural growth of a cooling district energy system is Torres de San Borja is, in the short term,

focused on customers where COSSBO already operates. The medium-term growth must be

towards customer for whom the infrastructure already exists and are currently not being supplied,

and any further expansion of the infrastructure has to be shared between the two district energy

systems. Eventually, the developer has to assess the possibility to get a concession from

COSSBO and operate their system, in order to facilitate logistics and decrease overall costs.

200 400 600 800 1000 1200 1400 1600

100 49 85 121 157 194 230 266 302

200 31 49 67 85 103 121 139 157

300 25 37 49 61 73 85 97 109

400 22 31 40 49 58 67 76 85

500 20 27 34 42 49 56 63 71

600 19 25 31 37 43 49 55 61

700 18 23 28 33 38 44 49 54

800 17 22 26 31 35 40 44 49

Cooling

demand

[MWh]


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In the technical pre-feasibility study, the energy demand was calculated and four technology

alternatives are identified according to local conditions, available fuels and technologies. The

results from the technical analysis are used as input to the economic study, where the most cost-

effective alternative is selected.

The technologies considered in the analysis are:



• District heating and cooling with heat pumps and gas boiler as back up.

• District trigeneration with gas turbine and absorption chiller.

The district network results on a 1,180 m main piping network with 12’’ (30.5 cm) diameter. The

system has potential to supply heating and cooling to approximately 20 buildings.

The economic prefeasibility analysis shows that the most cost-effective option would be to

develop a district cooling system using electric chillers. The initial investment required is

estimated at approximately $4.1 MUSD, and the energy tariff would be around 51 USD/MWhth,

therefore, similar tariffs to business as usual costs can be achieved. This price could only be

achieved through strategic alliances with COSSBO as it requires a free land concession on their

site and the use of their distribution infrastructure at a discounted price.

For the current clients considered, the total CO2 yearly emissions are 684 ton CO2 for cooling. If

a district energy system with electric chillers is considered, then the yearly emissions would

decrease in 229 ton CO2, to 456 tonCO2, i.e. they decrease by 33%. Even though there are no

PM reductions, since no PM are generated from fully electric stand-alone systems, a district

energy system has other environmental benefits. Among these benefits are the reduction of

refrigerant leakages, using low environmental impact refrigerant and decreasing the heat island

effect.

The natural growth of a cooling district energy system in Torres de San Borja is, in the short term,

towards clients where COSSBO already operates. The medium-term growth must be towards

customer for whom the infrastructure already exists and are currently not being supplied, and any

further expansion of the infrastructure has to be shared between the two district energy systems.

Eventually, the developer should aim to get a concession from COSSBO to operate their system,

in order to facilitate logistics and decrease overall costs.

As a business model, due to the high complexity, intervention of public areas (roads, parks, etc.),

risk and social benefits linked with district energy system, a concession contract is the

recommended solution. Through this business model, property is maintained by the public sector,

while a private expert entity would manage the project. Moreover, a concession can reduce

developer’s risks by securing a minimum guaranteed income, while also providing instruments for

subsidies. This is especially important, as the system is not cost competitive.

A summary of the main results is shown in Figure 8-31.

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✓ We recommend COSSBO to continue working on the diagnosis of thermal losses, on

retrofitting infrastructure, and on maximizing the energy efficiencies of the existing district

heating system.

✓ It is suggested to the municipality and SERVIU to support the beneficiaries of Torres San

Borja district heating system applying collectively to the special call for thermal housing

insulation, of the MINVU subsidy in saturated zones (PPPF). This would help improve users'

thermal comfort and overall system performance.

✓ It is advisable to analyse the technical feasibility of coupling a district cold system to the

existing heating system, sharing spaces for the networks, and the thermal plant. If technical

feasibility exists, it is suggested that COSSBO analyse the costs of the intervention and the

potential economic benefits and consider the conditions under which a temporary joint

venture with another company to include district cooling would be attractive.

✓ We recommend COSSBO to analyse expanding the district heating operation outside the

water concession limits. Find out if the surrounding hospitals, universities or anchor buildings

are under heat concession agreements (for example, with a gas company) and the terms of

those agreements, to look for an alternative and attractive offer to connect to district energy.

✓ To reduce the uncertainties of the results, anchor demand measurement campaigns can be

developed, detailed engineering studies can be carried out, and the potential connection of

clients can be evaluated through letters of interest.

✓ It is suggested that the Municipality continues exchanging with Torres San Borja community

to analyse improvement options and to support the growth of the COSSBO district network

to new clients within the sanitary concession area.

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✓ There exist new developments in Santiago districts, so it is advisable that the municipality

establishes working groups with real estate developers so that designs of new buildings are

compatible with district heating and cooling systems.

✓ It is recommended to study the examples of the most advanced cities in district energy

strategies: Temuco, Coyhaique, and Puerto Williams. Comprehensive analyses were made

for the entire cities, social benefits associated with decontamination were estimated, and thus

Regional Governments are interested in supporting these projects to improve citizens' quality

of life.





directing partners, and the UN Environment will provide technical advice. It is suggested to


mechanisms in the development of District Energy Projects.

✓ It is suggested to the Municipality to be attentive to street intervention planning, to coincide

with the growth of district networks and share costs.

✓ Santiago presents great opportunities for the development of profitable projects, due to the

high thermal demand for both heating and cooling. If there exists available financing, it is

suggested to extend the District Heating and Cooling Potential Analysis to the entire

commune, including heat maps, analysis of anchor consumption, potential beneficiaries,

identification of new developments, municipal planning of urban renovations, road works, and

analysis of opportunities for expansion to other communes.

✓ It is necessary to carry out dissemination processes to citizens, to explain district energy

systems, social and climatic benefits, to adhere users to the technology. It is also important

to show project opportunities to attract potential developers' interest and investment.

✓ It is suggested to create a working group for the development of district energy, to overcome

gaps, and to analyse opportunities. We recommend including Municipalities' urban planning

departments, regional government, regional secretariats of environment, energy, housing,

and other public actors as initiatives progress.


is developing, also to the business and property models that are emerging in cities taking

more advanced paths, in particular ESCO models and the types of concessions.

✓ We recommend advancing in the understanding and establishment of the legal mechanisms

for a Municipality to be involved in the development of future networks. It is advisable to

dynamize the development of district energy, involving in the creation of legal structures with

the capacity to provide services, to tender works and concessions, to generate enabling






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6. RENCA




The city of Renca is located in the Metropolitan Area of Santiago, Chile, in a valley surrounded

by mountains. The mountains block the pollutants from smokestack industries, automobile

exhaust gases and dust from unpaved street and roads on city surroundings, which has led to

have important levels of air pollutants along the year. Based on measurements in Independencia

- a neighboring city with the closest measurements station - 24-hour PM concentrations have

reached over 2 times WHO standards. In 2017, the city of Renca had a population of 147,151. It

has a density of approximately 7,650 persons/km2 and has a surface of approximately 22.8 km2.


The city’s energy strategy report (known as EEL by its Spanish acronym) [69] indicated that the

total energy demand in Renca in 2015, was 1,438 GWheq, where 32% is sourced from electricity,

12% from natural gas and 2% from Liquefied Petroleum Gas (LPG). The study states that the use

Gasoline and Diesel account for 26% and 28% respectively. It is important to note that much of

the energy is used by industries, some 81% of the total energy consumption, while residential

buildings represent 18%. According to the study, no biomass is used for heating in the residential

sector [69]. The report also states a plan to add value to the residual waste through biogas

production.

Metrogas has the natural gas concession. LPG is distributed by three companies Lipigas, GASCO

and Abastible [59].

City planning:

The city has a power generation plant “Central Nueva Renca” which produces 2,117 GWh of

electricity and has an installed capacity of 379 MW. The possibility of using the waste heat from

the power plant as energy source for a district energy network is considered as an opportunity for

the development of district energy in Renca and will be further assessed in this study.

Another opportunity is the development of the new metro line, which will lead to substantial growth

in the west sector of Renca.

WEATHER

Renca has a cool semi-arid climate [32] with Mediterranean patterns: a long and warm dry

season. The temperature can go as high as 38°C but it is 20°C on average during summer days.

In winter, the minimum can go as low as -6°C but the average is 8°C in July, the coldest month.

The mean rainfall is around 312 mm/year, most of it falls during winter time. Figure 6-1 and Table

6-1 show the temperature profile in Renca, based from closest Weather Station: Quinta Normal

[60].

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Figure 6-1 – Renca temperature profile. Data from Quinta Normal Weather Station [60]

Temperatur

e [°C] Record high

Average

high Daily mean

Average

low Record low

January 38.3 30.1 21.2 13.4 5.8

February 35.9 29.4 20.2 12.7 4.4

March 36.2 27.4 18.1 10.2 1.2

April 33 22.3 14.3 6.5 -1.5

May 31.6 18.1 11.1 4.8 -2.8

June 26.9 15.5 8.4 2.9 -4.3

July 28.4 14.3 7.7 1.6 -6.2

August 31 16.2 9.2 3.8 -5.8

September 32.6 19.6 11 5.7 -2.6

October 33.1 22.8 14.8 8.4 -1.3

November 34.8 26.1 17.6 10.3 0.1

December 37.3 28.7 20 12.2 1.0

Table 6-1 - Renca temperature profile. Data from Quinta Normal Weather Station [60]

AIR QUALITY

Air pollution, in particular Particulate Matter (PM) concentrations, can be directly linked to the

development of cardiovascular and respiratory diseases, and cancers [33].


of PM2.5 and PM10 in Renca have exceeded the Chilean and WHO standards. It is noted that

Chilean standard is met for PM10, while concentrations are above WHO recommendations



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the standard

2012 2013 2014 2015 2016 2017 2018


PM2.5 WHO standard 127 142 147 174 169 145 146


PM10 WHO standard 217 266 216 245 251 258 225

Table 6-2. Number of days with pollutant 24-hour mean concentration above Chilean and WHO standard for different years. Data from the closest measurement station: the neighboring city of Independencia [32]

Figure 6-2 shows the particulate matter in Independencia, a neighboring city with the closest

measurement station. Despite the information shown in the figure, the records on particulate

matter are in a downward trend according to the Ministerial Regional Secretary of Environment

(SEREMI by its Spanish acronym). There has been improvement in the reduction of PM2.5 and

PM10 by 65% and 45% respectively, between 1989 and 2011. According to the WHO, Santiago

had the 4th and the 17th position on the amount of PM 10 and PM2.5 in 2014 in Chile [31].

Regarding SO2, O3 and NO2 levels shown in Figure 6-2, concentration levels are below the

maximum allowed. Concentration levels have remained stable, and ozone and nitrogen dioxide

concentrations show clear seasonality with an increase of concentration levels in the winter. This

increase is due to bad ventilation settings and caused by the transport, not due to pollution

associated with heating [13, 30].

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Figure 6-2 – Concentration of the key air pollutants for Independencia, a neighboring city with the closest measurement station. Data from SINCA [32]


levels, it becomes key that any system studied either tackles PM polluters and/or uses



PM emission levels.

Opportunity: Stricter regulations in cities could lead to a shift towards cleaner and more efficient

heating system.



A Heating Degree Day (HDD) is a measure to quantify the demand of energy to heat a building.

HDD is considered between May and September. Table 6-3 shows the amount of Heating Degree

Days at different base temperatures, i.e. the outside temperature under which the building

requires heating. More information on how it is measured can be found in APPENDIX A –

DEGREE DAY.

Base temperature 15 [°C] 18 [°C] 21 [°C]


Min HDD 272 514 858

Max HDD 659 1,088 1,673







DEGREE DAY.

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Min CDD 464 146 35

Max CDD 800 366 172





targets.



Police station Office 780

CESFAM Bicentenario Health 2,400

Pibamour S.A. Office 25,000

Sum 29,340

Table 6-5 – Key clients in Renca.





area





The Levelized Cost of Thermal Energy (LCOEth) is defined as the ratio of the total expenditures

that the system has (i.e. investment, operation and maintenance) and the total energy that the

system produces throughout its lifetime. The total energy includes both, heating and cooling, as

therefore investment and maintenance costs would not be properly allocated. The TCO,

calculated using the LCOEth, is directly compared with district energy price.

As there is uncertainty inherent in the data collected, Monte Carlo simulations are used to model


variables are: equipment prices fluctuations from different suppliers, equipment efficiencies,

maintenances requirements per year, building energy demand, and electricity and gas prices.



results in Figure 6-3 show that the P50 (median) value for Renca is approximately 66 USD/MWh,

and varies within 52 - 89 USD/MWh range. It is noted from the figure that health buildings have

the lowest prices, with an average of 60 USD/MWh. Offices and educational buildings pay on

average 63 USD/MWh, followed by residential with 70 USD/MWh. Lastly, commercial buildings

pay on average 75 USD/MWh. This is due to the fact that they do not use heating, and therefore,

investment costs are allocated only to one kind of thermal energy.

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To plan a district energy systems, it is fundamental to take into consideration the city’s expansion


city of Renca [52].

New development areas are of particular interest for district energy systems as the buildings may




construction costs. In Renca, new developments are linked to the construction of the new metro

line.

Figure 6-4 – City growing zones types of buildings under construction


Through the Comuna Energética Initiative of the Ministry of Energy, cities have started to



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Renca’s local energy strategies were developed in 2018 [70], and the city’s energy vision was

defined as: “Renca, green lung and leader in energy innovation, working in collaboration with the

community and industries for a sustainable future, reducing energy consumption in 30% by 2030”

(considering 2017 as baseline). The plan is based on four pillars:

• Education and culture.

• Municipality, energy leader.

• Sustainable industries, commerce and services.

• Residential energy.

The steps towards developing the city’s vision include developing district energy. Among the

actions identified related to district energy are:

• Development of at least one district energy pilot project. The project is

envisioned to use waste heat. The project is expected to operate between 2025 and

2030 using waste heat from Central Nueva Renca, and supplying public buildings.

• Promote community project investment from industries. Develop energy

projects that use funds from industries for communities in Renca.

Improve energy access, thermal comfort and energy security to most

vulnerable groups. As the city has high levels of multidimensional poverty, a focus

must be set on improving thermal comfort schools and hospitals.

6.4. Stakeholder mapping


Renca are summarized in Table 6-6.

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Consents

Municipality

SERVIU

Ministry of Energy




SEA








Investors Banks

Veolia

Energy-Tracking

Aguas Andina

Engie

Investor, loans.

Developer.

Developer.

Developer.


Engineering and

equipment supply


Abastible

Danfoss

Engie Services

EBP

ISPG

Metrogas

Ministry of Health

Central Nueva Renca

Municipality


LPG supplier

Equipment.






Operator

Overseer of key clients (schools, preschools)

Customer Municipality

Schools and preschools

Police station

CESFAM

Key client

Key client

Key client

Key client

Table 6-6. Main stakeholders in Renca



planning and potential new development areas. Within these meetings potential sites were

identified, and discussions were held on how district energy would align with current government

plans and strategies. These discussions were followed by meetings with Central Nueva Renca to

assess the potential use of the waste heat from the power plant. Issues raised include the

mismatch between supply and demand. While no commitments were made, Central Nueva Renca

was willing to assess the option of installing a small boiler that would provide heat in those

occasions. The meetings also served to raise awareness and inform on the project to various

stakeholders, a step of upmost importance in the process of developing a district energy.

6.5.1. High Potential Site 1 – Municipality Sector

The area identified includes the Municipality “Edificio consistorial”. On a first step, and due to the

low energy density, the focus is on a small district energy. It must be noted that several buildings

within the area lack the energy efficiency required. This includes public schools, so a district

energy project could directly tackle energy poverty. The first site is shown in Figure 6-5.

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Figure 6-5 – The first potential district energy development. Site 1 – Municipality


in Table 6-7. Key customers are identified with an asterisk.


Municipality (*) Office 1,160

Residential building Residential 3,250

Pre school Education 570

School 1 Education 2,000


Police (*) Office 780

Swimming pool Pool 300

CESFAM Health 530

Sum 13,590

Table 6-7 – Key clients – Site 1 Municipality

6.5.2. High Potential Site 2 – West Sector

Site 2 is nearby a fast-growing new building area. According to information given by the

Municipality, other important infrastructures will be developed in the near future, led by the

construction of the new metro line. Consequently, the Master Plan is being updated. While there

is no information on buildings that will be constructed, the site must be continuously monitored

and the Master Plan must be prepared as to incorporate future district energy development. The

second site is shown in Figure 6-6.

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Figure 6-6 – Second potential district energy development. Site 2 – West Sector




CESFAM Bicentenario (*) Health 2,400

Instituto Cumbre de Los

Cóndores Poniente

Education 2,500

Pre school Education 700

Police Station Office 370

Sum 5,970

Table 6-8 – Key clients – Site 2 West Sector

6.5.3. High Potential Site 3 – Central Nueva Renca

Even though there is a lack of key clients in the vicinities of the energy plant, the area enables

the option to use waste energy from Central Nueva Renca. The third site is shown in Figure 6-7.

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Figure 6-7. Third potential district energy development. Site 3 – Central Nueva Renca

The potential customers considered, their type and the area are indicated in Table 6-9. Key

customers are identified with an asterisk.


Office 1 Office 400

Pibamour S.A. (*) Office 25,000




Office 6 Office 750

Sum 37,850

Table 6-9 – Key clients – Site 3 Central Nueva Renca


From the High Potential Sites (HPS) chosen, the decision matrix yields the following scores.

HPS – Renca Points

1 – Municipality Sector 2.00

2 – West Sector 1.71

3 – Power plant - Central Nueva Renca 1.86

Table 6-10 High Potential Sites scores for the three sites selected

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The results shown in the table above indicate that site 1 - Municipality sector is the most

suitable site to continue with the pre-feasibility study. More information regarding the Matrix and

scores of each factor for each site can be found in APPENDIX B – DECISION MATRIX. Several

meetings were held with both the municipality and Central Nueva Renca with the following

outcomes:

• The customers considered include schools and pre-schools, which may lack the

funds to pay for additional energy bills. The social benefit, however, on improving

thermal comfort and reducing energy poverty for students from low-income families

can allow a developer or Municipality to apply for subsidies.

• The Municipality is developing a strategic alliance with Central Nueva Renca. The

strategic alliance would enable the use of waste heat under conditions that still need

to be formalized.

• Despite the distance between the area selected and Central Nueva Renca, the

Municipality requested the Consultant to include it on the analysis.

• Taking this into account, meetings were held at Central Nueva Renca. While they

seemed willing to support the development of district energy, in order to make waste

heat a viable option, they must install a small boiler to produce heat when the power

plant is not operating. Additional benefits towards their operations of installing the

boiler were also discussed.




The city of Renca presents a high multidimensional poverty level, of 26%. This factor combined

with the lack of proper health and educational infrastructure increase the vulnerability of the

population. Reducing energy poverty in schools and health buildings can help reduce current

poverty levels. However, certain customers considered in the analysis, such as schools and

preschools, may lack the resources to perform required retrofitting in the building to connect to a

district heating network.

City level indicators are high distorted by industries in the city, as 13 clients consume 99% of the

total private consumption. Residential sector uses mostly LPG for heating [70]. However, as split

technology continues to increase market share, led by cost decrease and efficiencies increase,

they can be expected to be the substitute product of district energy. This change is also being led

by electricity distribution companies.

Inverters offer high operation flexibility, yet they can increase logistics of maintenance, as in

general it is not performed with the periodicity it requires. Current use of electric split systems for

heating difficult detaching consumption from other electric appliances, and therefore, expected

efficiencies were estimated. Under this scenario, the yearly resulting emissions for the chosen

site are 73 tonCO2 for heating 13 tonCO2 for cooling.

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The heating and cooling energy demand must be defined in order to adequately assess a district





Office


on an HVAC system










Interviews










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Figure 6-9. - Hourly cooling demand for an average year and consumption profile of peak demand day

Offices are considered to have a reversible system for heating and cooling, and equipment is

operated in heating mode from May to September. Finally, residential buildings heating loads

requirement to reach thermal comfort range from April to October, and no cooling is demanded.

The heating and cooling consumptions are assigned to each client of the chosen area based on

their typology, as summarized in Table 6-12. The 8 clients considered sum a total of 20 buildings.

Customer Sector Total surface

[m2]

Annual heating

demand [MWh]

Annual cooling

demand [kWh]

Municipality Office 1,160 21.4 31.9

Residential building Residential 3,250 186.6 0.0

Pre school Education 570 13.1 0.0

School 1 Education 2,000 45.8 0.0

School 2 Education 5,000 114.6 0.0

Police Office 780 14.4 21.5

Swimming pool Pool 300 31.4 0.0

CESFAM Health 530 17.1 30.7

Sum 13,590


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demand in Figure 6-11. Therefore, the installed capacity requires, i.e. days highest daily demand

and annual energy demand are 232 kW and 467 MWh for heating; and 41 kW and 88 MWh for

cooling.



EFLH

The Equivalent Full Load Hours (EFLH) is a measurement that represents the corresponding

hours at which the plant would operate at full capacity. It is calculated as the ratio between the

total energy produced and the installed power, as shown in the following equation.

𝐸𝐹𝐿𝐻𝐻𝑒𝑎𝑡𝑖𝑛𝑔 =467 𝑀𝑊ℎ

232 𝑘𝑊= 2,009 [ℎ]

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𝐸𝐹𝐿𝐻𝐶𝑜𝑜𝑙𝑖𝑛𝑔 =88 𝑀𝑊ℎ

41 𝑘𝑊= 2,144 [ℎ]





like filters.



• District heating and cooling with electric chillers and gas boiler.

• District heating with waste heat.




i.e. the ratio of useful thermal energy output and electricity input, according to their load factor

and are sized iteratively to work mostly at full capacity. The systems are sized iteratively to mostly

work at full capacity resulting in two 25 kW chillers. The system consumes 36 MWh of electricity

annually, with an average global COP of 2.4. The results show that as the demand decreases in

winter, so does the load factor and thus the COP of the system. Further detail of the results are




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This alternative only supplies heat to the network. An air source heat pump is modeled according

to [68] as schematized in Figure 6-14. The results yield an average global COP of 2.5, and an

electricity consumption of 188 MWh. Further details on the hourly results are shown in Figure

6-15.



District heating and cooling with electric chillers and gas boiler.

The third system considers using electric chillers and a 95% efficient gas boiler as shown in Figure

6-16.The electric chillers are modeled based on their load factor, similarly to the previous cases.

Initially, a gas turbine coupled with an absorption chiller was considered for this scenario.

However, due to the low demand the size of the gas turbine and absorption chiller were too small,

and they were discarded from the analysis. The results show an average COP of 3.2 for the

electric chillers. Further details on the COP and the natural gas consumption are shown in Figure

6-17 and Figure 6-18 respectively.

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Figure 6-16 – Scheme of the district heating and cooling with electric chillers and gas boiler configuration

Figure 6-17 – Hourly cooling COP – District heating and cooling with chillers and gas boiler configuration

Figure 6-18 – Hourly natural gas and electricity consumption – District heating and cooling with chillers and gas boiler configuration

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District heating with waste heat.

The fourth system considers using waste heat from Nueva Renca. This solution requires the

installation of 2,100 m of piping to bring the waste heat. Additionally, a backup boiler must be

installed in the plant to account for supply and demand mismatch. The configuration is shown in

Figure 6-19. The results show that approximately 20 m3/h of water at 95 [°C] is required, and that

15 MWh of electricity are consumed due to pumping. The assessment does not include any

modelling regarding the energy plant itself, as the residual heat is considered as an input given

for free. To fully provide the heating load, a 6’’ piping system is required.

Figure 6-19 - Scheme of the district heating with waste heat

DISTRIBUTION GRID

A scheme of the network is shown in Figure 6-20. All buildings shown in Table 6-12. The layout

of 840 m distribution grid is designed to follow the street layout. A distribution system with two

main pipelines for heating and two for cooling is considered. This configuration results in lower

operating costs while still enabling future expansions without significant increase on investment

costs or logistic issues.


The distribution system is sized to operate with a temperature difference of 25 °C for heating and

7.5 °C for cooling. The head loss calculation is based on the length of the system, while the hourly

energy consumption is based on the demand.

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The pumps consume 2.3 MWh and 1.5 MWh of electricity for the heating and cooling distribution


heating and cooling respectively. If the velocity is constrained to 1.5 [m/s], then the diameters of

the pipes required are approximately 6’’.




constrains are:















IRR % 7.6


Corporate tax % 27











considering an inflation of 3% the resultant IRR is 7.6%. The analysis is conducted considering a

30-year timeframe, as longer durations would require major reinvestment of equipment.

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CAPEX ASSUMPTIONS





system.

• Piping distribution Network: Main distribution and water return piping, public area






The median CAPEXs are shown in Table 6-14. Further information on the CAPEX estimations for

each configuration is detailed in APPENDIX 10.4.1.1.




District heating and cooling with chiller and boiler

$3.7

District heating with waste heat $3.6


The distribution of the CAPEX is showed in Figure 6-21.

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Distribution system

Connection system



District heating with heat pump

1.0 0.1 1.0 0.2 0.2 0.4 2.7


1.1 0.1 1.5 0.2 0.2 0.5 3.7

District heating with waste heat

0.3 0.0 2.0 0.3 0.2 0.7 3.6


In all the options, the most expensive component of the CAPEX are the development costs,

mainly due to the cost of land, and the distribution system primarily because of the cost of the

main piping network.

The same analysis is carried out considering a free land concession ($0.8 MUSD CAPEX

reduction). The median CAPEXs are shown in Table 6-16, Table 6-17 and Figure 6-22.





$2.9

District heating with waste heat $3.6


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Distribution system

Connection system




0.2 0.1 1.0 0.2 0.2 0.4 1.9


0.3 0.1 1.5 0.2 0.2 0.5 2.9


0.3 0.0 2.0 0.3 0.2 0.7 3.6


Considering a free land concession, the development cost decreases in $0.8 MMUSD for all the

options except the waste heat configuration as it requires no land purchasing. The other

components remain unaltered.

OPEX ASSUMPTIONS




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system


connection system






The utility costs (fuel, electricity and water consumption) are treated separately from the OPEX to

obtain the energy’s selling price. For details on OPEX estimations for each configuration refer to

APPENDIX 10.4.1.2.









occurrence.



Project Variable Units Base case

scenario

Min

Value

Max

Value

Probability

Distribution Function

Electricity price USD/MWh 60 -1% 1% Rectangular






probability distribution function used is detailed in Table 6-20.

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Function



Substations CAPEX % -5 20 Triangular















of 30 years. The result is the price the client will pay, excluding VAT. This must be compared with

the TCO calculated in section 6.2.1.4. A 50% of the CAPEX is considered to be financed with a

loan paid through the 30 years of the project duration with a 4% effective interest rate. The debt

service account is detailed in APPENDIX 10.4.1.3.

The results for the scenario with 50% debt and land cost purchasing are shown in Figure 6-23 for

each alternative.


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Fuel [USD/MWh]

CAPEX [USD/MWh]

Others [USD/MWh]




58 51 99 128 337


69 69 109 141 389


176 0 130 169 475


FINANCIAL ANALYSIS








the NPV to zero for a 30-year operation payback horizon. The cash flow statement for each of the

alternatives can be found in APPENDIX 10.4.1.4 and the profit and loss statement in APPENDIX

10.4.1.5.


To simulate the end user energy tariff impact, a CAPEX reduction of $0.8 MUSD into the district

energy project is shown in Figure 6-24. The CAPEX reduction can be expressed as land/terrain

free concession, using available space either in government buildings or in public areas (e.g.

example parks).

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Figure 6-24 - Median Energy Price [USD/MWh] for all configurations considering lifespan of 30 years, excluding VAT and land cost


Fuel [USD/MWh]

CAPEX [USD/MWh]

Others [USD/MWh]




58 50 67 87 262


69 69 83 107 328


176 0 130 169 475

Table 6-22 - Median Energy Price component values [USD/MWh] for all configurations considering lifespan of 30 years excluding VAT and land cost

Considering a free land concession, the CAPEX decreases considerably. However, further

incentives would still be required to improve the bankability of the project.










prices.




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project CAPEX.

The main results are summarized in Figure 6-25 and Figure 6-26. The fees are normalized in


of each district energy developer since as each developer has access to different utility prices

and capital costs.

Figure 6-25 - Median tariff [USD/MWh] for all configurations considering lifespan of 30 years, excluding VAT

Option Connection fee

[USD/MWh]

Consumption fee

[USD/MWh]





93 13 230 337


103 22 264 389


122 0 354 476


The tariff is not market competitive, and therefore, further incentives are required.

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District cooling with chillers

339 15 978 1331

District heating with heat

pump 63 13 186 262


78 22 228 328


122 0 354 476

Table 6-24 – Median tariff [USD/MWh] for all configurations considering lifespan of 30 years, excluding VAT and land cost

This initial estimation doesn’t result in competitive energy prices under the circumstances

considered for the calculation of the baseline scenarios. It is recommended to explore the

possibility of using incentives or reconsider the project in the future for new development areas.




supplied by decentralized heat pumps. As previously stated, the yearly CO2 emissions of split

systems to provide heating are 73 ton CO2. In a scenario with district energy, the yearly emissions

are reduced to 65 ton CO2. This represents a yearly reduction of 12%. The use of biomass in

Renca is negligible. Moreover, as both systems compared are electric, there is no reduction in

particulate matter.






becomes viable. This is in line with the energy strategic goals of Santiago. Moreover, Renca’s

multidimensional poverty can be directly tackled with the development of a district energy system

in the sector assessed, as it includes schools, preschools and health institutions.

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compared with the P50 of the TCO calculated in section 6.2.1.3. This LCOE can be compared

directly with that resulting from the table, allowing to discard those customers for whom district

energy is not cost effective. As the interconnection of a specific customer is assessed, the

comparison must be made with the Monte Carlo results of that specific typology, shown in Figure

6-3. As previously noted, the results shown are related to the cost of expanding the existing district

network presented in this report, and not applicable when starting a district network from scratch.

Figure 6-27 – Marginal profitability analysis on adding new clients to the district energy system. Green represents lower prices than business as usual costs, yellow represent prices within normal range of “business as usual costs” and pink

represents higher prices than “business as usual” case

As there is not a large growth expected in the site analyzed, the expansion of the network must

be towards nearby buildings. Two additional systems spread throughout the city must be

analyzed: Supplying nearby buildings of Nueva Renca with waste heat and coupling the

development around the new metro line with a district energy system. As the three system

develop, aim for a future interconnection, targeting Renca as a pioneer city in district energy.

6.6.1. Conclusions and key results






• District cooling system with electric chillers.

• District heating system with heat pumps.

250 500 750 1000 1250 1500 1750 2000

125 55 95 135 175 215 255 295 335

250 35 55 75 95 115 135 155 175

375 28 42 55 68 82 95 108 122

500 25 35 45 55 65 75 85 95

625 23 31 39 47 55 63 71 79

750 22 28 35 42 48 55 62 68

875 21 26 32 38 44 49 55 61

1000 20 25 30 35 40 45 50 55

Heating

demand

[MWh]


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• District heating and cooling system with chillers and gas boiler.

• District heating system with waste heat.

The pilot district energy network results in an 840 m main piping network with 6’’ diameter. If the

waste heat of Nueva Renca is used, then the network increases in 2,100 m. The system could

supply heating to approximately 20 buildings.

Among the four solutions analyzed, the economic prefeasibility analysis shows that district

heating system using heat pumps would be closer to the current energy tariffs. Considering no

land cost, the initial investment is estimated at approximately of $1.9 MUSD, selling thermal

energy at 262 USD/MWh. This initial estimation doesn’t result in competitive energy prices under

the circumstances considered for the calculation of the baseline scenarios. It is recommended to

explore the possibility of using incentives or reconsider the project in the future for new

development areas.

The District Energy System is compared to a likely scenario of heating and cooling loads being


systems to provide heating are 73 ton CO2. In a scenario with district energy system, the yearly

emissions are reduced to 65 ton CO2. This represents a yearly reduction of 12%. The use of

biomass in Renca is negligible. Moreover, as both systems compared are electric, there is no

reduction in particulate matter.

As there is not a large growth expected in the site analyzed, the expansion of the network must

be towards nearby buildings. Two additional systems spread throughout the city must be

analyzed: Supplying nearby buildings with waste heat from Nueva Renca and combine the

development of the new metro line with a district energy system. As the three system develop,

aim for a future interconnection, aiming at making Renca a pioneer city in integration of district

energy in Chile.


risk and social benefits linked with a District Energy System, a concession contract is the

recommended solution. Through this business model, property is maintained by the public while

a private expert entity would operate the project. Moreover, a concession can reduce developer’s

risks by securing a minimum guaranteed income, while also providing instruments to account for

positive external factors through subsides.

6.6.2. Recommendations and Next Steps




✓ It is suggested to EDF to carry out an internal analysis of the actual excess heat of the

Termoeléctrica Nueva Renca to be used in the district heating system. They are also advised

to analyze which conditions would be attractive for participating in the district energy business

and how to address the gaps to reach those conditions.

✓ Although the analyzed project of the Municipal Buildings is not profitable by itself, it is

suggested to the Municipality to continue the conversations with EDF and other Developers,

and explore new opportunities to add anchor loads in the vicinity, for example in the

neighboring commune Quinta Normal.

✓ It is suggested to the Municipality to analyse opportunities to incorporate district energy

systems in areas of new developments, particularly in the vicinity of the Metro works. It is

recommended that the Municipality be attentive to the planning of works that intervene streets

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and in particular to the excavation of the new Metro line since matching the installation and

growth of district networks with public works can help to make a project economically viable.





of life.








✓ If there exists available financing, it is suggested to extend the District Heating and Cooling

Potential Analysis to the entire commune, including heat maps, analysis of anchor

consumption, potential beneficiaries, identification of new developments, municipal planning

of urban renovations, road works, and analysis of opportunities for a project in the Metro area,

and the expansion to other communes.





systems, social benefits in reducing energy poverty and climate change mitigation, to adhere

users to the technology. It is also important to show project opportunities to attract potential

developers' interest and investment.

✓ For the implementation of future district energy systems, it is recommended that the

Municipality grant facilities to developers, such as permits and tax exemption to intervene

streets and public areas for the implementation works.

✓ It is suggested to create a working table for the development of district energy, to overcome


departments, regional government, regional secretariats of environment, energy, housing,

and other public actors as initiatives progress.




✓ We recommend advancing in the understanding and establishment of the legal ways a

municipality can participate in the management of future networks. It is advisable to dynamize

the development of district energy, involving in the creation of legal structures with the

capacity to provide services, to tender works and concessions, to generate enabling




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7. INDEPENDENCIA




The city of Independencia is located in the Metropolitan Area of Santiago. This area is a large

bowl-shaped valley surrounded by mountains. The mountains block the pollutants from

smokestack industries, automobile exhaust gases and dust from unpaved street and roads on

city surroundings. These generate important levels of air pollutants several times a year,

especially with cold and dry weather. In 2017, the city of Independencia had a population of

100,281 [42]. It has a density of 13,551 persons / km2 and has a surface of approximately 7 km2.



energy demand in Independencia in 2015, of 265,131 MWh, where 72% is sourced from

electricity, 7% from natural gas, 17% from Liquefied Petroleum Gas (LPG) and 4% from kerosene.

The study states that the use of wood is negligible. It is important to note that most of the energy

is used by the commercial and residential buildings, totaling up to 30% each of the total energy

consumption of the city. According to the EEL, Universidad de Chile, Costanera Norte, Valdivieso

Ltda, Synapsis spa, and San José Hospital are the largest consumers.

Metrogas has the Natural Gas concession. Liquefied gas is distributed by two companies Lipigas

and Abastible [59].

The above report also estimates the amount of energy that could produced within the city. A

potential energy source for district energy in Independencia could be biomass, which has the

capacity to generate 31,652 MWh/year [59]. The report explores the possibility of using waste-to

energy facilities and the production of biogas.

City planning:

The city has new development zones concentrated between the two new Metro lines. These new

development areas are an opportunity for district energy as buildings could be designed to

connect to the system from their conception.

The city hosts one of the biggest fresh product markets in Santiago, market “La Vega”, and a

large flower warehouse, both large energy consumers. It also hosts a horse racetrack, which

produces high volumes of organic waste that could be used to produce heat in a waste to energy

plant and supply energy to a district energy system.

WEATHER

Independencia has a cool semi-arid climate [32] with Mediterranean patterns: a long and warm

dry season. The temperature can go as high as 38°C but it is 20°C on average during summer

days. In winter, the minimum can go as low as -6°C but the average is 7.7°C in July, the coldest

month. The mean rainfall is around 312 mm/year, most of it falls during winter time. Figure 7-1

and Table 7-1 show the temperature profile in Independencia, based on Quinta Normal Weather

Station [60].

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Figure 7-1 – Independencia temperature profile. Data from Quinta Normal Weather Station [60]

Temperatur

e [°C] Record high

Average

high Daily mean

Average

low Record low

January 38.3 30.1 21.2 13.4 5.8

February 35.9 29.4 20.2 12.7 4.4

March 36.2 27.4 18.1 10.2 1.2

April 33 22.3 14.3 6.5 -1.5

May 31.6 18.1 11.1 4.8 -2.8

June 26.9 15.5 8.4 2.9 -4.3

July 28.4 14.3 7.7 1.6 -6.2

August 31 16.2 9.2 3.8 -5.8

September 32.6 19.6 11 5.7 -2.6

October 33.1 22.8 14.8 8.4 -1.3

November 34.8 26.1 17.6 10.3 0.1

December 37.3 28.7 20 12.2 1.0

Table 7-1 - Independencia temperature profile. Data from Quinta Normal Weather Station [60]

AIR QUALITY

Air pollution, in particular Particulate Matter (PM) concentrations, can be directly linked to


The yearly CO2 emissions in Independencia are estimated in 94,300 tonCO2 [61], where 70% is

attributed to electricity, 12% to waste-related emissions and 18% to natural gas, LPG and

kerosene. It must be noted that transport sector is no included in the calculation.


of PM2.5 and PM10 in Independencia have exceeded the Chilean and WHO standards. It is noted

that Chilean standard is met for PM10, while concentrations are above WHO recommendations



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the standard

2012 2013 2014 2015 2016 2017 2018


PM2.5 WHO standard 127 142 147 174 169 145 146


PM10 WHO standard 217 266 216 245 251 258 225

Table 7-2. Number of days with pollutant 24-hour mean concentration above Chilean and WHO standard for different years in Independencia. Data from [32]

Despite the information shown in Table 7-2, the records on particulate matter are in a downward trend according to the Ministerial Regional Secretary of Environment (SEREMI by its Spanish acronym). There has been improvement in the reduction of PM2.5 and PM10 by 65% and 45%, respectively, between 1989 and 2011. According to the WHO, Santiago had the 4th and the 17th position on the amount of PM10 and PM2.5 in 2014 in Chile [31].

Regarding SO2, O3 and NO2 levels shown in Figure 7-2, the concentration levels are below the

maximum allowed. The concentration levels have remained stable, and ozone and nitrogen

dioxide concentrations show clear seasonality with an increase of concentration levels in the

winter. This increase is due to bad ventilation settings and caused by the transport, not due to

pollution associated with heating [13, 30].


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levels. It is therefore key that any system studied either tackles PM polluters and/or uses



PM emission levels.

Opportunity: Stricter regulations in cities could lead to a shift towards cleaner and more efficient

heating system.




building. HDD is considered between May and September. Table 7-3 shows the amount of

Heating Degree Days at different base temperatures, i.e. the outside temperature under which

the building requires heating. More information on how it is measured can be found in APPENDIX

A – DEGREE DAY.


Average HDD 430 820 1361

Min HDD 272 514 858

Max HDD 659 1,088 1673







DEGREE DAY.



Min CDD 464 146 35

Max CDD 800 366 172



Table 7-5 shows the key energy consumers in the city. Indeed, one such customer is eager to be

connected to a district energy network and has a reasonable heating/cooling demand. Public

buildings have been pre-selected in this phase of the analysis to include as key customers, as

they need to meet their CO2 reduction targets.

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San José Hospital Health 48,000

Del niño Hospital Health 8,750

Uni. De Chile Hospital Health 54,000

Public Library Office 2,500


Hospital - Clínica Odontológica Health 2,800

Universidad De Chile Education 93,600

Mall Barrio Independencia Commercial 220,000

Total 435,650

Table 7-5 – Key clients in Independencia





area.





Further details on the Business as Usual (BAU) scenario is given in section 7.6.1.1.



system produces throughout its lifetime. The TCO, calculated using the LCOE, is directly




variables are equipment prices fluctuations from different suppliers, equipment efficiencies,

annual maintenance requirements per year, the buildings’ energy demand, and the electricity and

gas prices.



results in Figure 7-3 show that the P50 (median) value for every type of client and for a client mix

in Independencia. The figure shows that prices are approximately 67 USD/MWh, and most likely

varies within the 52 - 98 USD/MWh range. It is noted from the figure that health buildings have

the lowest prices, with an average of 60 USD/MWh. Offices and educational buildings pay on

average 63 USD/MWh, followed by residential with 70 USD/MWh. Lastly, commercial buildings

pay on average 75 USD/MWh. This is due to the fact that they do not use heating, and therefore,

investment costs are allocated only to one kind of thermal energy.

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7.3. City plans and strategy


To plan a district energy system, it is fundamental to take into consideration the city expansion


city of Independencia [52].

New development areas are of particular interest to district energy schemes as the buildings may




construction costs.






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Independencia’s local energy strategies were developed in 2017 [61], and the city’s energy vision

was defined: “to be a clean, inclusive, educated, sustainable and energy-efficient city. Pioneer in

waste management for energy generation and in solar energy”. Their plan is based in three pillars:

• Energy Autonomy

• Energy Education

• Sustainable Mobility

The strategy also establishes a goal to reduce GHG emissions in 30% by 2030. Among the list

actions included in the city’s local energy strategy, there are two that could leverage the

development of district energy in the city:

• The development of a biogas production plant. The biogas produced could

eventually be used as fuel for the local district energy network. Eventually a waste

incineration plant could be developed to generate electricity and use the waste heat

for the district energy network. This type of plants are not popular in Chile and lack

of acceptance from the population so the biogas production is more likely to

materialize.

• The replacement of equipment to increase energy efficiency. In order to improve

energy efficiency and decrease GHG emissions, a program is envisioned to replace

older equipment. This project can be complemented with a district energy system,

where old equipment is replaced by transfer stations required for a building to be

connected to the district energy network.

The strategy estimates the city’s annual CO2 emissions at 94,299 ton CO2 and highlights that

awareness raising needs to be done among the population to enhance the knowledge of citizens

on energy efficiency labels on domestic appliances. A district energy system could serve as a

demonstration project and an instance to educate citizens regarding energy usage.



Independencia are summarized in Table 7-6. Key customers shown have already expressed

interest in the results of the rapid assessments for a potential connection to the system.

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Consents

Municipality

SERVIU

Ministry of Energy




SEA








Investors Banks

Veolia

Energy-Tracking

Aguas Andina

Engie

Investor, loans.

Developer.

Developer.

Developer.


Engineering and

equipment supply


Abastible

Danfoss

Engie Services

EBP

ISPG

Metrogas

Ministry of Health


LPG supplier

Equipment.






Customer Municipality


Hospital San José

Hospital de Niño

Key client

Key client

Key client

Key client

Table 7-6 - Main stakeholders in Independencia.




identified, and discussions were held on how a potential district energy system would align with

the government plans and strategies. These meetings were followed by exchanges with potential

customers, where information was obtained on installed energy systems, main concerns and

aspects that may lead their decision to connect to a district energy network. The meetings also

served to raise awareness and inform on the project to various stakeholders, a step of upmost

importance in the process of developing a district energy.

7.5.1. High Potential Site 1 – Hospitals sector

After a meeting with local government officials, this area was identified with potential for

developing district energy due to its diverse building types and growth potential. According to the

information provided by the Municipality, other important buildings will be constructed in the area

in the near future. New buildings under planning include a new private Hospital, a small hospital

(CESFAM), a shopping mall and other public buildings. One of the main drivers for the

development of the area is the new metro line which starts to operate in 2019. The first site is

shown in Figure 7-5

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Figure 7-5 – The first potential district energy development. Site 1 – Hospitals

The potential customers, their classification and the operational surface are indicated in Table

7-7. To the key customers shown in the table, two additional residential buildings are added in

the analysis, identified with an asterisk, of 20,000 and 10,000 m2 each.


San José Hospital Health 48,000

Del niño Hospital Health 8,750

Uni. De Chile Hospital Health 54,000

Public Library Office 2,500


Hospital - Clínica Odontológica Health 2,800

Universidad De Chile Education 93,600

Mall Barrio Independencia Commercial 220,000

Residential building 1 (*) Residential 20,000

Residential building 2 (*) Residential 10,000

Total 465,650

Table 7-7 – Potential customers – Site 1 Hospitals

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7.5.2. High Potential Site 2 – Centro deportivo estadio municipal

Juan A. Rios

This site was proposed by the Municipality as a potential area for the development of a district

energy network. Currently, further infrastructure is under planning, so there is an opportunity for

district energy developers in the near future. The second site is shown in Figure 7-6.

Figure 7-6 – Second potential district energy development. Site 2 – Centro Deportivo Estadio Municipal Juan A. Rios

The buildings identified for a potential district energy system in this sector are shown in Table 7-8.


UNIMARC Commercial 3,600

CESFAM Health 9,000

Housing Building 1 Residential 9,800




Total 35,880

Table 7-8 – Potential customers – Site 2 – Centro Deportivo Estadio Municipal Juan A. Rios

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7.5.3. High Potential Site 3 – Hipódromo

The “Hipodromo” was also pre-selected due to two elements that make of it a potential candidate

area for district energy. The first element is the existence of the horse fast-track with large

amounts of biological waste that could be used to produce biogas in a waste to energy plant that

could be developed in the area, and the second element is that this is fast-growing development

area of residential buildings. The third site is shown in Figure 7-7.

Figure 7-7. Third potential district energy development. Site 3 – Hipódromo

The buildings identified for a potential district energy in this sector are shown in Table 7-9.


Monserrat Commercial 3,600








Total 79,650

Table 7-9 – Potential customers – Site 3 – Hipódromo


From the three pre-selected High Potential Sites (HPS), the decision matrix yields the following

scores.

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HPS – Independencia Points

1 – Hospital sector 3.43

2 – Centro Deportivo Estadio Municipal Juan A. Rios 2.14

3 – Hipódromo 1.86


The results shown in the table above indicate that site 1 - Hospital sector is the most suitable

site to continue with the pre-feasibility study. More information regarding the Matrix and scores of

each factor for each site can be found in APPENDIX B – DECISION MATRIX. Several key clients

of the pre-selected areas were visited, the main outputs of these meetings are indicated below:

• In general, there is a lack of knowledge on efficient cooling systems. This has led to

clients having some equipment operating at low efficiencies or even not operative at

all.

• Energy efficiency measures and sustainability concerns are being addressed,

encouraged by government programs and operational costs reduction initiatives.

• Some key customers have recently signed gas supply contracts that establish

minimum purchase volumes. This could prevent them from connecting to a district

energy network that supplies heat.

• It is difficult for public institutions (such as hospitals) to raise funds to improve their

energy systems, for reasons such as rotation of senior management, bureaucracy,

changes in central government, etc. These clients prefer signing contracts with

Energy Service Companies (ESCOs), which allows them to focus on their core

business and forget about energy management in their buildings.




Potential customers of Site 1- Hospital Area, use a wide range of energy solutions for heating and

cooling. Hospital San José has a mixture of electric chillers, gas boilers, inverters and electric

heaters. Despite several site visits, not all the data was available and some assumptions had to

be made. Identifying costs related to cooling consumption was challenging as for most of the

clients cooling costs come included in the electricity bill.

As Independencia is part of Santiago’s Metropolitan Area, and there are no major climate nor

consumption patterns differences with other cities within the area, similarities in performance and

load profiles are expected with neighboring cities.

Gas suppliers are actively seeking out increasing market share, with a business model that

provides price stability but requires minimum consumption levels. Nonetheless, there is a trend

towards reversing heat pumps systems due to their efficiency, easy use and ability to supply both,

heating and cooling.

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Reverse heat pumps offer high operation flexibility, but it can increase logistics and maintenance

costs. Under this scenario, the yearly resulting emissions for the chosen site are 1,020 ton CO2

for heating 2,551 ton CO2 for cooling. It must be noted that the area considered for Mall Barrio

Independencia was reduced, as the results would otherwise be greatly dependent on its

connection, and therefore, highly uncertain.


The heating and cooling energy demand is calculated in order to adequately assess a district





Office


on an HVAC system










Interviews









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reversible systems for heating and cooling, with equipment operating in heating mode from May

to September. Finally, residential buildings heating requirements to reach thermal comfort range

from April to October, and no cooling is demanded. The heating and cooling consumptions are

assigned to each client of the chosen area based on their typology, as summarized in Table 7-12.

It must be noted that the operational surface of Mall Barrio Independencia is decreased to reduce

the risk in case the client decides not to connect. The 10 customers considered account for a total

of 18 buildings.

Client Typology Total

surface [m2]

Annual heating

demand [MWh]

Annual cooling

demand [MWh]

San José Hospital Health 48,000 1,546 2,780

Del niño Hospital Health 8,750 282 507

Universidad De

Chile Hospital

Health 54,000 1,739 3,127

Public Library Office 2,500 46 69

Municipality Office 6,000 111 165

Hospital - Clínica

Odontológica

Health 2,800 90 162

Universidad De

Chile

Education 93,600 2,144 3,200

Mall Barrio

Independencia

Commercial 55,000 (*) 0 7,893

Residential

building 1

Residential 20,000 1,149 0

Residential

building 2

Residential 10,000 574 0

Sum 300,650

Table 7-12 – Customers energy consumption.




customers, in this case, a 5% constant loss throughout the year is assumed. Using the

consumption profiles defined in the previous section, the district energy demand is calculated and

shown in Figure 7-10, and the peak and average daily demand in Figure 7-11. Outlier data points

would that further increase the required installed capacity were constrained as abnormal data.

This results in ratio of installed capacity to the sum of all individual capacities consistent with [55].

Therefore, the installed capacity required, i.e. the highest daily demand and annual energy

demand are 3.0 MW and 8.0 GWh for heating; and 6.8 MW and 18.8 GWh for cooling.

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EFLH




𝐸𝐹𝐿𝐻𝐻𝑒𝑎𝑡𝑖𝑛𝑔 =467 𝑀𝑊ℎ

232 𝑘𝑊= 2,009 [ℎ]

𝐸𝐹𝐿𝐻𝐶𝑜𝑜𝑙𝑖𝑛𝑔 =88 𝑀𝑊ℎ

41 𝑘𝑊= 2,144 [ℎ]





like filters.



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• District heating and cooling with heat pumps and gas boiler as back.

• District trigeneration with gas turbine - absorption chiller, and electric chillers and a

gas boiler as back up




i.e. the ratio of useful thermal energy output and electricity input, as shown in Figure 7-13. The

systems are sized iteratively to mostly work at full capacity resulting in five 1.5 MW chillers. With

an average COP of 4.2, the system consumes 4.4 GWh of electricity annually. The results show

that as the demand decreases in winter, so does the load factor and thus the COP of the system.




This alternative would only supply heat to the district energy network. An air source heat pump is

modeled according to [68] as schematized in Figure 7-14. The results shown in Figure 7-15 yield

an average global COP of 2.5, and an electricity consumption of 3.2 GWh annually. For months

where there is no heating demand, the system remains idle.

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District heating and cooling with electric chillers and gas boiler.



Figure 7-16. The results shown in Figure 7-17 and Figure 7-18 yield an average COP of 3.2, and

an electricity consumption of 6.5 GWh annually. In winter, when heating demand is supplied by

rejected heat of the system, the COP increases while the cooling COP greatly decreases. This is

due to an increase in the heat sink temperature. Finally, the backup boiler generates 3.7 GWh

during winter.

Figure 7-16 – Scheme of the district heating and cooling with heat pump configuration

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Figure 7-17 – Hourly COP – District heating and cooling with heat pumps configuration

Figure 7-18 – Hourly natural gas consumption - District heating and cooling with heat pumps configuration

District trigeneration with gas turbines - absorption chiller.

The fourth system supplies heating and cooling while also generating electricity. It considers a

gas turbine – absorption chiller system that is sized to supply 15% of the demand. The remaining

energy is supplied using electric chillers, whose electricity input is partially supplied by the turbine,

and a 95% efficient gas boiler. The exhaust of the gases is used to preheat the heating network,

allowing the turbine to reach a maximum trigeneration efficiency of 75%. A scheme of the

configuration is shown in Figure 7-19. The results show an annual efficiency of 67% for the gas

turbine – absorption chiller system, with higher efficiency in the winter where the exhaust heat is

recovered, and an average COP of 4.2 for the electric chillers. Similarly, to the previous case, the

COP greatly decreases in the winter where demand is lower and the system is operated at partial

load. Further detail on the hourly COP and efficiency is shown in Figure 7-20 and of the natural

gas consumption and electricity surplus in Figure 7-21.

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Figure 7-19 - Scheme of the district trigeneration with gas turbine and absorption chiller configuration

Figure 7-20 - Hourly COP and efficiency - District trigeneration with gas turbine and absorption chiller configuration

Figure 7-21 - Hourly natural gas consumption and electricity surplus - District trigeneration with gas turbine and absorption chiller configuration

DISTRIBUTION GRID

A scheme of the network is shown in Figure 7-22, with all potential customers identified in Table

7-12. The layout of the 1,600 m distribution grid is designed to follow the street layout. A

distribution system with two main pipelines for heating and two for cooling is considered. This

configuration results in lower operating costs while still enabling future expansion without a

significant increase on investment costs or logistic issues.

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The distribution system is sized to operate with a temperature difference of 7.5 °C for cooling and

25 °C for heating. The head loss calculation is based on the length of the system, while the hourly




heating and cooling respectively. If the velocity is constrained to 1.5 m/s, then the diameters of

the pipes required are approximately 10’’ (25.4 cm) heating and 18’’ (45.7 cm) for cooling.




constrains are:













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IRR % 7.6


Corporate tax % 27


Years of operation Years 30

NG price USD/m3 0.47


Land price USD/m2 4,116








CAPEX ASSUMPTIONS





system.







The median CAPEXs are shown in Table 7-14. Further information on the CAPEX estimations for

each configuration is detailed in APPENDIX 10.4.1.1.

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$17.4


$19.8


The distribution of the CAPEX is showing in Figure 7-23.


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Distribution system

Connection system




5.0 1.0 3.0 0.6 0.5 1.4 11.6


5.5 1.4 5.8 1.1 1.0 2.5 17.4


5.8 2.6 6.0 1.1 1.3 2.9 19.8

Table 7-15 – Median CAPEX distribution of the various configurations. reviewed

In all the options, the most costly component of the CAPEX is the development cost

corresponding mainly to the land cost. The next largest component is the distribution system

because of to the piping installation. The ‘Others’ component is also one of the principal items,

consisting on contractor profit and contingencies.

The same analysis is carried out considering a free land concession, the median CAPEXs are

given in Figure 7-24 and Table 7-17.





$13.3


$15.7


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Distribution system

Connection system




0.8 1.1 3.0 0.7 0.6 1.4 7.4


1.3 1.5 5.9 1.1 1.0 2.5 13.3


1.6 2.7 5.9 1.1 1.3 2.9 15.7

Table 7-17 – Median CAPEX distribution values of the different configurations excluding land cost

Considering a free land concession, the development cost decreases in $4.1 MUSD for each option, while the other components of the CAPEX remain constant.

OPEX ASSUMPTIONS


distribution system and transfer stations (including major maintenance costs), utility costs (water,

electricity and natural gas) and administration costs.

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system


connection system





Table 7-18 – OPEX assumptions for the economic analysis

For the district trigeneration, the electricity is assumed to be sold in to the grid, either with a Power

Purchase Agreement (PPA) or on the spot market, and not directly to the same clients of the

district energy system. The utility costs (fuel, electricity and water consumption) are treated

separately from the OPEX to obtain the selling price. Further details on the OPEX estimation for

each alternative refer to APPENDIX 10.4.1.2.




change many times throughout the years. Therefore, a Monte Carlo analysis is performed. The





occurrence.



probability distribution function used is detailed in Table 7-19. ¡Error! No se encuentra el origen

de la referencia.


Function







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scenario

Min

Value Max Value


Function

















The price at which the energy must be sold is calculated by equaling the NPV to zero with a

payback of 30 years. This result is the price the client will pay, excluding VAT. This must be

compared with the TCO calculated in section 7.2.1.4. A 50% of the CAPEX is considered to be

financed with a loan paid through the 30 years of the project duration with a 4% effective interest

rate. The debt service account is exposed in APPENDIX 10.4.1.3.

For the district heating and cooling with trigeneration, the electricity is assumed to be sold to the

grid, either with a PPA or to the spot market, and not directly to the same clients of the district

energy system.

The results for the scenario with 50% debt and land cost are shown in Figure 7-25 for each

alternative.

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Figure 7-25 – Median Energy Price [USD/MWh] for all configurations considering lifespan of 30 years excluding VAT


Fuel [USD/MWh]

CAPEX [USD/MWh]

Others [USD/MWh]




23 14 24 30 91


15 10 11 13 50


30 14 12 16 66


The least costly configuration is district heating and cooling with heat pumps and gas boiler,

closely followed by the district cooling with chillers. The difference between these two energy

prices is just 4 USD/MWh, strategic considerations must be considered to select the best

alternative.

FINANCIAL ANALYSIS








the NPV to zero for a 30-year operation payback horizon.

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To simulate the end user energy tariff impact, a CAPEX reduction of $4.1 MMUSD is shown in


available space either in government buildings or in public areas (e.g. parks).



Fuel [USD/MWh]

CAPEX [USD/MWh]

Others [USD/MWh]



District heating with heat pumps 23 14 15 18 70


16 11 8 10 45


30 9 9 12 61


Considering a free land concession, the least costly solution is district heating and cooling with

heat pumps and gas boiler and district cooling with chillers. They reach the same price of 45

USD/MWh, therefore, strategic considerations must be taken in account to select the best

alternative.








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prices.







project CAPEX.

The main results are summarized in Figure 7-27, Figure 7-28 and their respective data Table 7-23

and Table 7-24. The fees are normalized in energy units in order facilitate comparison. It can be

adapted according to the commercial strategy of each district energy developer since, as each

developer has access to different utility prices and capital costs.

Figure 7-27 - Tariff model with land cost and a payback period of 30 years, excluding VAT







23 14 55 91


10 13 27 50


11 23 32 66

Table 7-23 – Tariff model with land cost and a payback period of 30 years, excluding VAT

In the case of having a 50% debt and purchasing the land, the least costly energy price for the

final consumer is 50 USD/MWh, for district heating and cooling with heat pumps. However, the

price difference of this configuration and district cooling with chillers is only 4 USD/MWh, and

therefore strategic considerations must be included in the selection of the system.

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Figure 7-28 - Tariff model without land and a payback period of 30 years, excluding VAT and land cost







14 14 42 70


8 12 24 45


9 24 28 61

Table 7-24 – Tariff model with land cost and a payback period of 30 years, excluding VAT and land cost

The results show that district cooling and district heating and cooling reach market competitive

prices.


Based on the technical and economic pre-feasibility study developed in Independencia for

Hospitals sector, the best economical results selected alternative of district cooling with electric

chillers. A scheme is shown in Figure 7-29. While the costs are the same as for the third

configuration, the selected option is simpler, and therefore, more likely to succeed in a context

where district energy systems must be validated as a solution. Furthermore, cooling systems

allow to develop strategic alliances with gas companies rather than competing against them.

Finally, through several meetings with key clients, it was possible to notice that cooling systems

are not being operated correctly, and therefore there is further room for improvement. The

selected configuration goes in line with these issues and does not entail the same risks than an

alternative that provides heating.

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Figure 7-29 – Scheme of the district cooling system - Electric chillers configuration

The tariff configuration for the selected alternative is summarized in Table 7-25, where the fees

are normalized in energy units for ease of comparison.

Unit Tariff including

land cost

Tariff excluding

land cost

Connection fee USD/MWh 12 9

Consumption fee USD/MWh 9 9

Capacity fee USD/MWh 32 27

Total USD/MWh 54 45

Table 7-25 – End User tariff price composition

Excluding land cost, the most costly component is the capacity fee, of 27 USD/MWh. It is

explained as it covers the capital investment. The consumption fee is 9 USD/MWh corresponds

mainly to electricity consumption. The connection fee of 9 USD/MWh corresponds to secondary

piping and non-variable costs of the plant.










Having said that, even though a privately-owned model might seem to be the most appropriate in





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Works.




subsides.



their lifespan.


The possibility of applying an incentive scheme should be explored with the government at the

national level and discussed with the Municipality. Among these funding opportunities are free

land concession to install the energy plant or permit fee waivers. As gas companies are seeking

to increase their market share, strategic alliances may be developed to tackle the same clients

with complementary solutions.



The selected alternative requires, with no land cost, an initial investment of approximately $10.7

MUSD, and achieves an energy tariff of 45 USD/MWhth. This price is lower than the 90% range

calculated in section 7.6.2.4 of 52 – 98 USD/MWh. Considering a free land concession, the

configuration is highly cost competitive.



systems to provide cooling are 2,551 ton CO2. In a scenario with district energy, the yearly

emissions are reduced to 1,506 ton CO2. This represents a yearly reduction of 1,046 ton CO2 (i.e.

41%), which is equivalent to a total reduction CO2 emission in the city of 1.6%.

The use of biomass, the biggest energy-related particulate matter emitter in the city, is negligible.

Moreover, as both systems compared are electric, there is no reduction in particulate matter.

There are other benefits of implementing a district energy network that supplies cooling for large

customers that are not represented in the emissions reduction. For instance, there is a general

lack of expertise regarding their systems. The effect is not only operating the equipment

inefficiently, but it may also lead to incorrect refrigerant charges, leakages, etc. The use of district

energy allows the possibility to use low environmental impact refrigerants, as per the Kigali

Amendment to the Montreal protocol.

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operation of the energy plant. Attention should be paid in identifying the piping length, as it is a

closed circuit from the main distribution point to the customer and back again. The value

calculated is compared with the P50 of the TCO calculated in section 7.2.1.4. This LCOE can be

compared directly with that resulting from the table, allowing to discard those customers for whom

district energy is not cost effective. As the interconnection of a specific customer is assessed, the

comparison must be made with the Monte Carlo results of that specific typology. As previously

noted, the results shown are related to the cost costs of expanding the existing district network

presented in this report, and not applicable when starting a district network from scratch.

Figure 7-30 – Marginal profitability analysis on adding new clients to the district energy system. Green represents lower prices than “business as usual costs”, yellow represent prices within normal range of “business as usual costs” and pink


As part of the District Energy in Cities Initiative, rapid assessments in five cities have been

developed. Among these cities is Recoleta, a neighboring city of Independencia. The assessment

of an interconnection between Recoleta’s and Independencia’s High Potential Sites may be cost

effective due to its location.

The district energy systems identified in Recoleta considers a 481 m piping system that supplies

a 44,600 m2 hospital (Clínica Dávila), 19,000 m2 residential buildings, 17,100 m2 offices and 2,100

m2 education buildings. This interconnection would require an additional 600 m of piping.

150 300 450 600 750 900 1050 1200

125 69 124 179 234 288 343 398 452

250 42 69 97 124 151 179 206 234

375 33 51 69 88 106 124 142 161

500 28 42 56 69 83 97 110 124

625 26 37 48 58 69 80 91 102

750 24 33 42 51 60 69 79 88

875 23 30 38 46 54 62 69 77

1000 22 28 35 42 49 56 63 69

Cooling

demand

[MWh]


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• District trigeneration with gas turbine and absorption chiller.

The selected pilot district energy network would have a 1,600 m length main piping with 18’’ (45.7

cm) diameter for the cooling network and 10” (25.4 cm) diameter for the heating network. The

system would have potential to supply approximately 10 clients that sum a total of 18 buildings.

The economic prefeasibility analysis shows that the most cost-effective option would be to

develop a district cooling system using electric chillers. Considering no land cost, the initial

investment is estimated at approximately $10.7 MUSD, and the energy tariff is 45 USD/MWhth.

The District Energy System is compared to a likely scenario of heating and cooling loads being


systems to provide cooling are 2,551 ton CO2. In a scenario with district energy system, the yearly

emissions are reduced to 1,506 tonCO2. This represents a yearly reduction of 1,046 tonCO2 (i.e.

41%). This represents a reduction in 1.6% of yearly CO2 emissions in the city. Even though there

are virtually no PM reductions, since no PM is generated from fully electric stand-alone systems,

a district energy system has other environmental benefits. Among these benefits are the reduction

of refrigerant leakages, using low environmental impact refrigerant and decreasing the heat island

effect.

The natural growth of the district energy network piping would probably be towards Recoleta,

aiming at including Clínica Dávila. This expansion may require an additional installation of 600 m

of piping. In case of future piping network extension, the consultant has included a table that may

be used as a tool to estimate the energy selling price which can be compared to a conventional

heating and cooling solution.


risk and social benefits linked with a District Energy System, a concession contract is the


while private expert entity would manage the project. Moreover, a concession can reduce

developer’s risks by securing a minimum guaranteed income, while also providing instruments to



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Figure 7-31. Main outcomes of the rapid assessment.

7.6.9. Recommendations and Next Steps




✓ It is suggested to the Municipality to continue the conversations with the public Hospital

Directors showing the results of the project and update new opportunities and hot/cold needs.

Analyze whether the Hospitals have heat concession contracts (for example, with a gas

company) and look for win-win district energy connection opportunities.

✓ It is suggested to continue conversations with the Mall “Barrio Independencia” and investigate

further into the role that could be played as a “prosumer” Producer / Consumer. Analyse what

has happened to the business during the COVID crisis and identify new opportunities.

Discuss with Paris and Jumbo if they would be willing to outsource the cold purchasing

service, to free rooftops and join the district cooling system.

✓ There exist new developments in Independencia districts, so it is advisable that the

municipality establish working tables with real estate developers so that designs of new

buildings are compatible with district heating and cooling systems.


with the installation and growth of district networks and share costs.





of life.






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✓ Independencia presents great opportunities for the development of profitable projects, due to

the high thermal demand for both heating and cooling. If there exists available financing, it is








✓ One suggestion is to evaluate an inter-communal project between Independencia and

Recoleta that takes the geographical advantages of being a conurbation and economies of

scale. This may be done by a private developer. The municipalities would only have to

promote the opportunities and publicly demonstrate the facilities they can provide.






departments, regional secretariats of environment, energy, housing, and other public actors

as initiatives progress.
















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8. RECOLETA

8.1. City Characterization


Geographical characterization

The city of Recoleta is located in the Metropolitan Area of Santiago. This area is a large bowl-

shaped valley surrounded by mountains. The mountains block the pollutants from smokestack

industries, automobile exhaust gases and dust from unpaved street and roads on city

surroundings. These generate important levels of air pollutants several times a year, especially

with cold and dry weather. In 2017, the city of Recoleta had a population of 157,851 [42]. It has a

density of 9,684 persons/km2 and has a surface of approximately 16.2 km2.

Local energy resources and demand


energy demand in Recoleta in 2015, of 333,732 MWheq, where 69% is sourced from electricity,

13% from natural gas and 18% from Liquefied Petroleum Gas. The study states that the use of

wood is negligible. It is important to note that the majority of the energy is used by the residential

buildings, some 50% of the total energy consumption, while commercial buildings represent

another 30%. According to the EEL, Clínica Dávila is the largest consumer. Metrogas has the

Natural Gas concession. Liquefied gas is distributed by two companies Lipigas and Abastible [71]

The EEL estimates the amount of energy that could be produced within the city and indicates

available local energy sources. The report indicates that Recoleta has enough biomass resource

to generate 12,204 MWh/year [71], and has also potential to develop a waste to energy plant in

the future.

City planning

The city has a fast development zone nearby the new Metro line, leading to substantial growth in

the area. This new development are is considered as opportunity area for the development of

district energy.

WEATHER

Recoleta has a cool semi-arid climate [32] with mediterranean patterns: a long and warm dry

season. The temperature can go as high as 38°C but it is 20°C on average during summer days.

In winter, the minimum can go as low as -6°C but the average is 7.7°C in July, the coldest month.

The mean rainfall is around 312 mm/year, and most of it falls during winter time. Figure 8-1 and

Table 8-1 show the temperature profile in Recoleta, based from the Quinta Normal Weather

Station [60].

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Figure 8-1 – Recoleta temperature profile. Data from Quinta Normal Weather Station [60]

Temperature [°C] Record

high

Average

high

Daily

mean

Average

low

Record

low

January 38.3 30.1 21.2 13.4 5.8

February 35.9 29.4 20.2 12.7 4.4

March 36.2 27.4 18.1 10.2 1.2

April 33 22.3 14.3 6.5 -1.5

May 31.6 18.1 11.1 4.8 -2.8

June 26.9 15.5 8.4 2.9 -4.3

July 28.4 14.3 7.7 1.6 -6.2

August 31 16.2 9.2 3.8 -5.8

September 32.6 19.6 11 5.7 -2.6

October 33.1 22.8 14.8 8.4 -1.3

November 34.8 26.1 17.6 10.3 0.1

December 37.3 28.7 20 12.2 1.0

Table 8-1 - Recoleta temperature profile. Data from Quinta Normal Weather Station [60]

AIR QUALITY

Air pollution, in particular Particulate Matter (PM) concentrations, can be directly linked to


The yearly CO2 emissions in Recoleta are estimated in 128,652 tons CO2, where 24% is attributed

to natural gas and LPG [71].


of PM2.5 and PM10 in Recoleta have exceeded the Chilean and WHO standards based on

measurements in Independencia, a neighboring city. It is noted that Chilean standard is met for

PM10, while concentrations are above WHO recommendations approximately 65% of the year.

On the other hand, the Chilean standard was nearly met for PM2.5 concentrations, while

concentrations are above WHO recommendations 40% of the year.

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Numbers of days above

the standard

2012 2013 2014 2015 2016 2017 2018


PM2.5 WHO standard 127 142 147 174 169 145 146


PM10 WHO standard 217 266 216 245 251 258 225

Table 8-2. Number of days with pollutant 24-hour mean concentration above Chilean and WHO standard for different years in Independencia, a neighboring city. Data from [32]

Figure 8-2 shows the particulate matter in Independencia, a neighboring city with the closest

measurement station. Despite the information shown in the figure, the records on particulate

matter are in a downward trend according to the Ministerial Regional Secretary of Environment

(SEREMI by its Spanish acronym). There has been improvement in the reduction of PM2.5 and

PM10 by 65% and 45%, respectively, between 1989 and 2011. According to the WHO, Santiago

had the 4th and the 17th position on the amount of PM 10 and PM2.5 in 2014 in Chile [31].

Regarding SO2, O3 and NO2 levels shown in Figure 8-2, concentration levels are below the

maximum allowed. The concentration levels have remained stable, and ozone and nitrogen

dioxide concentrations show clear seasonality with an increase of concentration levels in the

winter. This increase is due to bad ventilation settings and caused by the transport, not due to

pollution associated with heating [13, 30].

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Particulate matter levels have been exceeded, while other key pollutants have remained below

permitted levels. It is therefore key that any system studied either tackles PM polluters and/or

uses technologies that do not increase current emission levels. For instance, a system using

natural gas to supply heat for customers who currently use electric HVAC system would only

increase PM emission levels.

Opportunity: Stricter regulations in cities close to Santiago, could lead to a move towards a better

and eco-friendly centralized heating system.




building. More information on how it is measured can be found in APPENDIX A – DEGREE DAY.

Table 8-3 shows the amount of Heating Degree Days calculated for Recoleta at different base

temperatures, i.e. the outside temperature under which the building requires heating. Heating is

considered to be used between May and September.

Base temperature 15°C 18°C 21°C




A Cooling Degree Day (CDD) is a measure designed to quantify the demand for energy needed

to cool a building. More information about how it is measured can be found in APPENDIX A –

DEGREE DAY. Table 8-4 shows the amount of CDD at different base temperatures, i.e. the

outside temperature over which the building requires cooling. Cooling is considered to be used

between November and March.

Base temperature 18°C 21°C 23°C

Average 632 230 76


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targets.

Building Name Type Constructed Area m2

Hospital – Clínica Dávila Health 44,600

SII norte Office 1,290


Universidad San Sebastián Education 35,600

Universidad de Chile Education 22,000

Universidad Andrés Bello Education 18,000

Total 132,890

Table 8-5 – Key clients in Recoleta





area.



district energy system. Currently, the vast majority of buildings use HVAC systems or are


Further details on the Business as Usual (BAU) scenario is given in section 8.6.1.1



system produces throughout its lifetime. The TCO, calculated using the LCOEth, is directly




variables are: equipment prices fluctuations base on different suppliers, equipment efficiencies,

annual maintenance requirements per year, the building’s energy demand, and the electricity and

gas prices.



results in Figure 8-3 show that the P50 (median) value for Recoleta is approximately 63

USD/MWh, and most likely varies within the 49 - 86 USD/MWh range. It is noted from the figure

that health buildings have the lowest prices, with an average of 60 USD/MWh. Offices and

educational buildings pay on average 63 USD/MWh, followed by residential with 70 USD/MWh.

Lastly, commercial buildings pay on average 75 USD/MWh. This is due to the fact that they do

not use heating, and therefore, investment costs are allocated only to one kind of thermal energy.

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Figure 8-3 – Results of the Monte Carlo Simulation for the LCOEth



When planning a district energy system, it is fundamental to take into consideration the city

expansion plans. Figure 8-4 shows the distribution by building type of the new constructions

planned in the city of Recoleta [52].

New development areas are of particular interest to for district energy schemes as the buildings

may be designed ahead with the appropriate technology to be connected to a district energy

system and the installation of the district energy distribution network may be coordinated with the


construction costs.

Figure 8-4 – City growing zones types of buildings under construction


Through the Comuna Energética Initiative of the Ministry of Energy, cities have started to


potentiates energy efficiency and incorporates local energy resources.

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Recoleta’s local energy strategies were developed in 2016 [71], and the city’s energy vision was

defined as: “to be a role model in energy issues, with a defined identity, educated, empowered,

planned and organized efficiently, especially in terms of integral waste management and the

generation of non-conventional renewable energy”. Their plan is based in three pillars:

• Energy Autonomy

• Energy Education

• Integral Waste Management

The document also establishes a goal to reduce GHG emissions in 30% by 2030. Among the list

actions included in the city’s local energy strategy, there are two that could leverage the

development of district energy in the city:

• Energy manager. The municipality envisions creating the figure of an “energy

manager”, who could be the focal point at the municipality for energy issues and

would help in the paperwork, formalities and procedures required for the

development of energy related infrastructure.

• Renewable energy in municipal buildings. While initially solar energy is

envisioned to supply municipal buildings, these projects also open the possibility to

couple solar energy and district heating and cooling in public buildings.

The annual CO2 emissions of the city were estimated at 127,652 ton CO2.



Recoleta are summarized in Table 8-6. Key clients shown have already expressed interest in the

results of the rapid assessments for a potential connection to the system.

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Consents

Municipality

SERVIU

Ministry of Energy




SEA








Investors Banks

Veolia

Energy-Tracking

Aguas Andina

Engie

Investor, loans.

Developer.

Developer.

Developer.


Engineering and

equipment supply


Abastible

Danfoss

Engie Services

EBP

ISPG

Metrogas

COSSBO


LPG supplier

Equipment.





District energy operator

Customer Hospital – Clínica Dávila

SII norte

Municipality

Universidad San Sebastián


Universidad Andrés Bello

Key client

Key client

Key client

Key client

Key client

Key client

Table 8-6 - Main stakeholders in Recoleta


Several meetings were held with central and local government officials, to discuss on the city


identified, and discussions were held on how a potential district energy system would align with

the local government’s plans and strategies. These meetings were followed by exchanges with

potential customers, where information was obtained on installed energy systems, main concerns

and aspects that may lead their decision to connect to a district energy network. The meetings

also served to raise awareness and inform on the project to various stakeholders, a step of upmost

importance in the process of developing a district energy.

8.5.1. High Potential Site 1 – Hospitals sector

This first potential area was identified together with the Municipality and it includes Clinic Davila,

the largest energy consumer in the city. This area is located nearby a new development area.

One of the main drivers of development for this area is the new metro line which started to operate

in 2005. Another advantage of this location is its proximity to the site selected in the city

Independencia, giving the possibility of a future interconnection of both networks. The first site is


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Figure 8-5 – The first potential district energy development. Site 1 – Hospitals


in Table 8-7. Key customers are identified with an asterisk. It must be noted that for the case of

Clínica Dávila, the considered surface to connect in the district energy is reduced (i.e. only some

buildings of the complex are included) to reduce the risk that the results present if the client does

not end up connecting to the system.


Clínica Dávila (*) Health 22,300

SII Office (*) Office 1,290

Museum Office 17,100

Valentin Letelier School Education 4,800

Republic of Paraguay School Education 3,000

Apartment building - 21 floors Residential 16,380

Total 64,870

Table 8-7 – Key clients – Site 1 Hospitals

8.5.2. High Potential Site 2 – Bellavista

The site was suggested by the Municipality. The advantage of this site is that it offers the

possibility to place the energy plant beneath the public tennis court that is owned by Municipality.

Also, it has access to the Mapocho River, offering a source of free cooling. The second site is


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Figure 8-6 – Second potential district energy development. Site 2 – Bellavista

The potential customers considered their business type and the area are indicated in Table 8-8.

Key customers are identified with an asterisk.

Customer Sector of

Activity

Total Surface

[m2]

Universidad San Sebastian (*) Education 35,600

Engineering School - UNAB (*) Education 22,000

Law School - UdeCh (*) Education 18,000



Total 104,700

Table 8-8 – Key clients – Site 2 Bellavista

8.5.3. High Potential Site 3 – Municipality sector

This area includes the new City Hall building and a shopping center. The third site is shown in

Figure 8-7.

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Figure 8-7. Third potential district energy development. Site 3 – Municipality



Customer Sector of

Activity

Total Surface

[m2]

Municipality (*) Office 11,400

Supermarket Commercial 12,000

Shopping Center Commercial 5,950

Juanita Fernandez School Education 13,300

Total 42,650

Table 8-9 – Key clients – Site 3 Municipality



HPS – Recoleta Points

1 – Hospitals Sector 2.7

2 – Bellavista 2.1

3 – Municipality 2.1


More information regarding the Matrix and scores of each factor in each site can be found in

APPENDIX B – DECISION MATRIX.

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The results shown in the table above indicate that site 1 - Hospital sector is the most suitable

site to continue with the pre-feasibility study. Several key clients of the pre-selected areas were

visited, the main outputs of these meetings are indicated below: The main outputs of the meetings

held with key clients and the municipality are:

• In general, there is a lack of knowledge on efficient cooling systems. This has led to

clients having some equipment operating at low efficiencies or even not operative at

all.

• Potential customers indicated that they have limited budget available for operating

and maintaining their heating and cooling systems. They are generally open and

willing to sign a contract with an ESCO, which also allows them to focus in their core

business.

• There is a lack of transparency and clarity on energy bills related to heating and

cooling. A client mentioned that their energy bill had gone up in a partial shutdown

of their buildings and didn’t know the reason of why this had happened.

• There is interest in sustainable solutions. Currently, Clínica Dávila is working towards

regaining their Green Hospital Certificate.



DESCRIPTION OF BUSINESS AS USUAL SCENARIO

Most of the buildings visited use air conditioned split systems. The use of sustainable heating

alternatives such as solar thermal systems are being encouraged by local and national authorities

but their use is still limited.

Despite several site visits, not all heating and cooling related costs were available and some

assumptions had to be made. Identifying costs related to cooling consumption was challenging

as for most of the clients cooling costs come included in the electricity bill.

Particulate emissions linked to heating and cooling in this area remains low, yearly CO2 emissions

related to heating are 318 ton CO2 and 262 ton CO2 for cooling .


The heating and cooling energy demand is calculated in order to adequately assess a district




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Office


on an HVAC system










Interviews










203/221







reversible system for heating and cooling, and equipment is operated in heating mode from May

to September. Finally, residential buildings heating loads requirement to reach thermal comfort

range from April to October, and no cooling is demanded. The heating and cooling consumptions

are assigned to each client of the chosen area based on their typology, as summarized in Table

8-12. The 6 customers considered account for a total of 9 buildings.

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Costumer Sector

Total

surface

[m2]

Annual heating

demand

[MWh]

Annual cooling

demand

[MWh]

Clínica Dávila Health 22,300 718 1,291

SII Office (*) Office 1,290 24 36

Museum Office 17,100 316 471

San Valentín School Education 4,800 110 0

Republic of Paraguay School Education 3,000 69 0

Apartment building - 21 floors Residential 16,380 941 0

Total 64,870







demand in Table 8-13. Therefore, the installed capacity required, i.e. the highest daily demand

and annual energy demand are 800 kW and 2.3 GWh for heating; and 770 kW and 1.9 GWh for

cooling.


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EFLH





800 𝑘𝑊= 2,854 [ℎ]

𝐸𝐹𝐿𝐻𝐶𝑜𝑜𝑙𝑖𝑛𝑔 =1.9 𝐺𝑊ℎ

770 𝑘𝑊= 2,458 [ℎ]

Therefore, the energy plant would be operating at full capacity for 33% and 28% of the year for

heating and cooling respectively. It is noted that the indicator shows a slightly more attractive

value for heating than for cooling. Moreover, if a seasonal indicator was calculated, as heating is

only concentrated in winter, the results would further improve.





like filters.



• District heating and cooling with heat pumps and gas boiler as back.

• District heating and cooling with chillers and gas boiler.

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District cooling electric chillers:


to provide cooling. The chillers are modeled through their Coefficient of Performance (COP), i.e.

the ratio of useful thermal energy output and electricity input, according to their load factor and

are sized iteratively to mostly work at full capacity The systems are sized iteratively to work most

time at full capacity resulting in four 200 kW chillers. The system consumes 464 MWh of electricity

annually, with an average global COP of 4.1. The results show that as the demand decreases in

winter, so does the load factor and thus the COP of the system. Further detail of the results is





This alternative only supply heat to the network. An air source heat pump is modeled according

to [68] as schematized in Figure 8-14. The results show an average global COP of 2.4, and an

electricity consumption of 932 MWh annually. For months where there is no heating demand, the

system remains idle. Further details on the hourly results are shown in Figure 8-15.

Figure 8-14 – Scheme of the district heating with heat pumps configuration

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Figure 8-15 – Hourly COP - District heating with heat pumps configuration




Figure 8-16. The average COP is 3.6 and the annual electricity consumption is 654 MWh. The

results show that in winter where the heating demand is supplied by the rejected heat of the

system, the system COP increases while the cooling COP greatly decreases. This is due to an

increase in the heat sink temperature. Finally, the backup boiler generates 1.6 GWh during winter.

Further detail on the COP and the natural gas consumption is shown in Figure 8-17 and Figure

8-18 respectively.

Figure 8-16 – Scheme of the district heating and cooling with heat pumps configuration

Figure 8-17 – Hourly COP - District heating and cooling with heat pumps configuration

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Figure 8-18 – Hourly back up natural gas consumption - District heating and cooling with heat pumps configuration

District heating and cooling with chillers and gas boiler.

The fourth system considers using electric chillers and a 95% efficient gas boiler. A scheme of

the configuration is shown in Figure 8-19 Initially, a gas turbine coupled with an absorption chiller

was considered for this scenario. However, due to the low demand the size of the gas turbine and

absorption chiller were too small and they were therefore discarded from the analysis. The results

show an average COP of 4.2 for the electric chillers. Similarly, to the previous case, the COP

greatly decreases in the winter where demand is lower and the system is operated at partial load.

Further detail on the hourly COP and efficiency is shown in Figure 8-20 and of the natural gas

consumption and electricity consumption in Figure 8-21.

Figure 8-19 - Scheme of the district heating and cooling with chillers and gas boiler configuration

Figure 8-20 - Hourly COP and efficiency - District heating and cooling with chillers and gas boiler configuration

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Figure 8-21 - Hourly natural gas consumption and electricity surplus - District heating and cooling with chillers and gas boiler configuration

DISTRIBUTION GRID

A scheme of the network is schematized in Figure 8-22, with all potential customers identified in

Table 8-12. The layout of the 334 m distribution grid is designed to follow the street layout. A

distribution system with two main pipelines for heating and two for cooling is considered. This

configuration results in lower operating costs while still enabling future expansion without

significant increase on investment costs or logistic issues.


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The distribution system is sized to operate with a temperature difference of 25 °C for heating and

7.5 °C for cooling. The head loss calculation is based on the length of the system, while the hourly



system respectively. The maximum flow required to supply the demand is 28 and 88 m3/h for

heating and cooling respectively. If the velocity is constrained to 1.5 m/s, the piping diameters are

then 6’’ (15.2 cm) for heating and 10’’ (25.4 cm) for cooling.




constrains are:















IRR % 7.6


Corporate tax % 27


Years of operation Years 30





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years the operation. The corporate tax rate used in this analysis is a direct tax applied to incomes




a 30-year timeframe, as longer durations would require major reinvestment of equipment

CAPEX ASSUMPTIONS





system.







The median CAPEXs are shown in Table 8-14. Further detail on the CAPEX estimations of each configuration is given in APPENDIX 10.4.1.1.





$6.8

District heating and cooling with chillers and boiler

$7.0


The distribution of the CAPEX is showing in Figure 8-23.

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Distribution system

Connection system




4.4 0.1 0.6 0.1 0.1 0.2 5.6


4.6 0.2 1.1 0.2 0.2 0.5 6.8


4.6 0.4 1.1 0.2 0.2 0.5 7.0


In all the options, the most expensive component of the CAPEX is the development cost, linked

mainly to land cost. Then, the second largest component is the distribution system, which

considers the capital investment in piping network.

The same analysis is carried out considering a free land concession, the median CAPEXs are

given in Figure 8-24, Table 8-16 and Table 8-17.





$2.6


$2.7


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Distribution system

Connection system




0.2 0.1 0.6 0.1 0.1 0.2 1.3


0.5 0.2 1.1 0.2 0.2 0.5 2.6


0.4 0.4 1.1 0.2 0.2 0.5 2.7


As a free land concession is considered, development cost decreases in $4.2 MUSD. The

distribution system is the biggest cost source under this scenario, which corresponds primarily to

capital investment in piping network

OPEX ASSUMPTIONS




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system


connection system






The utility costs (fuel, electricity and water consumption) are treated separately from the OPEX to

obtain the selling price. Further details on the OPEX estimation are presented in APPENDIX

10.4.1.2.



the district energy project has to be quantified so that risk may be assessed. The values could





cover the full range of parameters, constrained by their own independent probability.


gas tariff, water price and electricity price.


scenario

Min

Value Max Value


Function







probability distribution function used is detailed Table 8-20.

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Function







energy system from the developer’s perspective. Therefore, the Levelized Cost of Thermal

Energy (LCOEth) is defined as the ratio of the total expenditures (i.e. investment, operation and



In order to calculate the Internal Rate of Return (IRR), the methodology considers using the

Capital Assets Pricing Model (CAPM), which describes the relationship between the expected






of 30 years. This result is the price the client will pay, excluding VAT. This must be compared with

the TCO calculated in section 8.2.1.4. A 50% of the CAPEX is considered to be financed with a

loan paid through the 30 years of the project duration with a 4% effective interest rate. The debt

service account is detailed in APPENDIX 10.4.1.3

The results for the scenario with 50% debt and land cost are shown Figure 8-25 for each

alternative.


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Fuel [USD/MWh]

CAPEX [USD/MWh]

Others [USD/MWh]




14 14 41 57 126


23 8 27 37 95


28 6 28 37 99


The results show that none of the configurations is market competitive, and therefore, further

incentives are required before district energy can be a plausible solution.

FINANCIAL ANALYSIS






is commonly referred to as the firm’s cost of capital. The WACC for the project is 4.51% with a

50% project loan at 4% interest payable for 30 years. The energy price is then calculated by

equaling the NPV to zero for a 30-year operation payback horizon. The cash flow statement for

each of the alternatives can be found in the APPENDIX10.4.1.4 and the profit and loss statement

in the APPENDIX 10.4.1.5.


To simulate the end user energy tariff impact, a CAPEX reduction of $4.2 MUSD is shown in


available space either in government buildings or in public areas (e.g. example parks).

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Fuel [USD/MWh]

CAPEX [USD/MWh]

Others [USD/MWh]




14 14 9 12 49


22 8 10 13 53


28 6 10 14 58


The least costly solution is district heating with heat pumps closely followed by district heating

and cooling with heat pumps. The difference between these two options is just 4 USD/MWh,

strategic considerations must be considered in order to select the best alternative.










prices.

Capacity fee: Covers the capital investment of the district energy system plant, main piping

network and non-variable costs of the plant (administrative, operation and maintenance costs)..

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The scope of a district energy systems includes providing services up to the energy transfer



project CAPEX.

The main results are summarized in Figure 8-27 and Figure 8-28. The fees are normalized in


of each district energy developer since each developer has access to different utility prices and

capital costs.

Figure 8-27 - Median tariff [USD/MWh] for all configurations considering lifespan of 30 years, excluding VAT








26 15 54 95


26 18 56 100


In the case of having a 50% debt and purchasing the land, the least costly energy price for the

final consumer is 95 USD/MWh, for district heating and cooling with heat pumps. The tariff is not

market competitive, and therefore, further incentives are required.

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9 15 29 53


10 17 31 58


In the case of having a 50% loan and a free land concession, the least costly energy price for the

final consumer is 49 USD/MWh, for district heating with heat pumps. This price is closely followed

by district heating and cooling with heat pumps, of 53 USD/MWh. Given the small price difference

of 4 USD/MWh between these two configurations strategic considerations must be taken into

account to choose the best alternative. The next lowest energy price is the district heating and

cooling with chillers and boiler and finally, the most expensive energy price is the district cooling

with chillers.

The tariff price composition can be adapted according to the user’s requirements and the district

energy developer, since there are developers that have access to lower utility prices, while others

have access to better CAPEX or capital costs.


Based on the technical and economic pre-feasibility study developed in Recoleta for Hospitals

sector, systems to provide heating and both, heating and cooling, can reach market competitive

prices if the land where the district energy plant is installed is offered by the local authorities at no

cost. Considering the proximity to Independencia’s hospital sector, where a cooling system also

reaches market competitive prices, the alternative that supplies both, heating and cooling, is

selected. By also considering cooling, the interconnection between the two potential systems as

they grow is facilitated, further encouraging the development of these systems. As previously

shown, the scheme of the energy system is shown in Figure 8-29.

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Figure 8-29 – Scheme of the district heating and cooling with heat pumps configuration


price of 95 USD/MWh. This price is in the higher limit of the 90% range of 52 - 89 USD/MWh.

Considering a free land concession, the energy price decreases to 53 USD/MWh, being in the

lower limit of the 90% range mentioned above. The tariff configuration for the selected option is

summarized in Table 8-25, the fees are normalized in energy units for ease of comparison.

Unit Tariff with land cost Tariff without land cost

Connection fee USD/MWh 26 9

Consumption fee USD/MWh 15 15

Capacity fee USD/MWh 54 29

Total USD/MWh 95 53

Table 8-25 – End User tariff price composition

Considering no land cost, the most expensive component is the capacity fee 29 USD/MWh. This

is because it covers the capital investment including the main piping network. The consumption

fee of 15 USD/MWh corresponds mainly to gas and electricity consumption. The connection fee

of 9 USD/MWh corresponds to secondary piping and non-variable costs of the plant.










Having said that, even though a privately owned model might seem to be the most appropriate in





221/221








Works.




incentives.



their lifespan.


The possibility of applying an incentive scheme should be explored with the government at the

national level and discussed with the Municipality. Among these funding opportunities are free

land concession to install the energy plant or permit fee waivers.



The selected alternative requires, with no land cost, an initial investment of approximately $2.6

MUSD, and achieves an energy tariff of 53 USD/MWhth. This price is in the lower limit of the 90%

range calculated in section 8.2.1.4, of 52 – 98 USD/MWh, therefore, similar tariffs to business as

usual costs can be achieved.


supplied by decentralized split systems. The yearly CO2 emissions of split systems to provide

cooling in the selected sector are 262 tonCO2 and in heating 318 ton CO2. In a scenario with

district energy, the yearly emissions are reduced to 506 tonCO2. This represents a yearly

reduction of 74 tonCO2 (i.e. 13%).













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compared with the P50 of the TCO calculated in section 8.2.1.4. This LCOE can be compared

directly with that resulting from the table, allowing to discard those customers for whom district

energy is not cost effective. As the interconnection of a specific customer is assessed, the

comparison must be made with the Monte Carlo results of that specific typology, shown in Figure

8-3. As previously noted, the results shown are related to the costs of expanding the existing

district network presented in this report, and not applicable when starting a district network from

scratch.

Figure 8-30 – Marginal profitability analysis on adding new clients to the district energy network. Green represents lower prices than “business as usual costs”, yellow represent prices within normal range of “business as usual costs” and pink


As part of the District Energy in Cities Initiative, five rapid assessments in different cities have

been developed. Among these cities is also Independencia, a neighboring city of Recoleta. The

assessment of an interconnection between Recoleta’s and Independencia’s High Potential Sites

is attractive due to its location: not only is it near the city limits, but it is also close to the hospitals

sector of Recoleta. The site assessed in Independencia is a highly cost competitive district cooling

with electric chillers system.










• District heating and cooling with chillers and gas boiler.

The district network results show a 334 m main piping network with 10’’ (25.4 cm) diameter

pipework for cooling and 6’’ (15.4 cm) diameter pipework for heating has the potential to supply

heating and cooling to approximately 6 clients that sum 9 buildings.

150 300 450 600 750 900 1050 1200

125 70 131 192 253 314 375 436 497

250 39 70 100 131 161 192 222 253

375 29 49 70 90 110 131 151 171

500 24 39 54 70 85 100 115 131

625 21 33 45 57 70 82 94 106

750 19 29 39 49 59 70 80 90

875 17 26 35 43 52 61 70 78

1000 16 24 31 39 47 54 62 70

Heating and

cooling

demand

[MWh]


223/221

The economic prefeasibility analysis shows that the most cost-effective option is to develop a

district heating and cooling system using heat pumps, to supply 2.3 GWh of heating and 1.8

GWh of cooling. Installed capacities required are approximately 800 kW for each. Considering no

land cost, the initial investment is approximately of $2.6 MUSD, selling thermal energy at 53

USD/MWh.


supplied by decentralized split systems. The yearly CO2 emissions of split systems to provide

cooling in the selected sector are 262 tonCO2 and in heating 318 tonCO2. In a scenario with

district energy system, the yearly emissions are reduced to 506 tonCO2. This represents a yearly

reduction of 74 tonCO2 (13%).

The growth of the district energy network piping is towards Independencia, with an additional

installation of 600 m of piping. In case of future piping network extension, the consultant has

proposed a tool to estimate the energy selling price which can be compared to a conventional

heating and cooling solution.


risk and social benefits linked with a district energy system, a concession contract is the


while a private expert entity would manage the project. Moreover, a concession can reduce

developer’s risks by securing a minimum guaranteed income, while also providing instruments to








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✓ It is suggested to the municipality to continue the conversations with Clínica Dávila showing

the results of the project and update new opportunities and hot/cold needs. Update

information regarding the Green Hospital Certification, analyze whether it have heat

concession contracts (for example, with a gas company) and look for win-win district energy

connection opportunities.

✓ There are new developments in Recoleta districts, so it is advisable that the municipality

establish working tables with real estate developers so that designs of new buildings are

compatible with district heating and cooling systems.


with the installation and growth of district networks and share costs.





of life.








✓ Recoleta presents great opportunities for the development of profitable projects, due to the

high thermal demand for both heating and cooling. If there exists available financing, it is








✓ One suggestion is to evaluate an inter-communal project between Independencia and

Recoleta that takes the geographical advantages of being a conurbation and economies of

scale. This may be done by a private developer. The municipalities would only have to

promote the opportunities and publicly demonstrate the facilities they can provide.

✓ For the implementation of future district energy systems, it is recommended that the

Municipality grant facilities to developers, such as permits and tax exemption to intervene

streets and public areas for the implementation works.






225/221

departments, regional secretariats of environment, energy, housing, and other public actors

as initiatives progress.
















226/221

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10. APPENDICES

APPENDIX A – DEGREE DAY

APPENDIX B – DECISION MATRIX

APPENDIX C – PEST

APPENDIX D – ECONOMIC ANALYSIS

P012616-2-GE-INF-00001 2 APPENDICES RESTRICTED

10.1. APPENDIX A – DEGREE DAY

Santiago

A Heating Degree Day is the number of degrees that a day's average temperature is below setting

temperature (𝑋𝑇𝑠𝑒𝑡) [72] and is described in the following equations. The equation is defined as

the temperature below which buildings need to be heated from May to September.

𝑖𝑓 𝑋𝑇𝑠𝑒𝑡 >𝑇𝑚𝑎𝑥 − 𝑇𝑚𝑖𝑛

2

∑ 18 −𝑇𝑚𝑎𝑥 − 𝑇𝑚𝑖𝑛

2

365

𝐼=0

= 𝐻𝐷𝐷

Equation 1- Heating Degree Days

𝑖𝑓 𝑋𝑇𝑠𝑒𝑡 ≤𝑇𝑚𝑎𝑥 − 𝑇𝑚𝑖𝑛

2

0 = 𝐻𝐷𝐷


Figure 10-1 shows the Heating Degree Days in Santiago. According to the National Air Quality

System (SINCA by its Spanish acronym), the maximum HDD in a year was 1015 HDD in 2010,

on the contrary the hottest winter only resulted in 485 HDD in 2014. In comparison, the HDD in

Europe in general is 2,000, 3,295 in Berlin, 2,702 in Paris, 1,024 in Barcelona, and 1,860 in Madrid

[73, 74].

Figure 10-1 – Santiago Heating Degree days for the last 14 years. The chart shows the peak and low HDD registered [75]

A Cooling Degree Day (CDD) is the number of degrees that a day's average temperature is above

a set temperature (𝑋𝑇𝑠𝑒𝑡).

𝑖𝑓 𝑋𝑇𝑠𝑒𝑡 <𝑇𝑚𝑎𝑥 − 𝑇𝑚𝑖𝑛

2

0

50

100

150

200

250

300

350

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Hea

tin

g D

egre

e D

ays

HDD Oscillation

HDD oscillation Average


∑𝑇𝑚𝑎𝑥 − 𝑇𝑚𝑖𝑛

2− 𝑋𝑇𝑠𝑒𝑡

365

𝑖=1

= 𝐶𝐷𝐷

Equation 3- Cooling Degree Days

𝑖𝑓 𝑋𝑇𝑠𝑒𝑡 ≥𝑇𝑚𝑎𝑥 − 𝑇𝑚𝑖𝑛

2

0 = 𝐶𝐷𝐷

Santiago experiences moderately high temperatures during the summer. As the cooling period is

short, most households and business owners will not usually invest in an AC, and would rather

use electric fans. Consequently, most large offices and commercial buildings have ventilation and

air conditioning (HVAC) systems. Fans are the most common form of cooling used during heat

waves, if any.

In Santiago, cooling degree days have increased over the last decade, with 2017 being the hottest

year as shown in Figure 10-2. The use of AC systems have increased over 300% [76].

Nevertheless, the maximum CDD in Chile are 170 CDD, which is considerable low compared with

countries such as the Middle East, Africa, India and the Caribbean.

Figure 10-2 – Santiago Cooling Degree Days in last 14 years. Information according to SINCA [3]

Figure 10-3 shows the Cooling Degree Days (CDD) in Santiago. The maximum CDD in a year

was 168 CDD in 2017, on the other hand, the coldest summer reached only 33 CDD in 2004.

0

20

40

60

80

100

120

140

160

180

2002 2004 2006 2008 2010 2012 2014 2016 2018

CDD


Figure 10-3 – Santiago Cooling Degree Days average from the last 14 years [32]. The graph shows the peak CDD and low CDD registered

Developers must pay attention to the temperature rise during the summer time over the period

under study. If the tendency continuous, the need for AC will increase in the near future. However,

according to a Chilean study, only 0.8% of Santiago’s inhabitants have an AC system installed

[76], and most of them live outside of the area of study [77].

Renca





2


2

365

𝐼=0

= 𝐻𝐷𝐷



2

0 = 𝐻𝐷𝐷


Figure 10-14 shows the Heating Degree Days in Renca. According to the National Air Quality

System (SINCA by its Spanish acronym), the maximum HDD in a year was 1015 HDD in 2010,


Europa is 2,000, 3,295 in Berlin, 2,702 in Paris, 1,024 in Barcelona, and 1,860 in Madrid [73, 74].

0

10

20

30

40

50

60

70

80

90

100


CDD Oscillation within 14 years

CDD Oscillation Average


Figure 10-4 – Renca Heating Degree days for the last 14 years. The CHART shows the peak and low HDD registered [75]




2



365

𝑖=1

= 𝐶𝐷𝐷



2

0 = 𝐶𝐷𝐷

Renca experiences moderately high temperatures during the summer. As the cooling period is




waves, if any.

In Renca, cooling degree days have increased over the last decade, with 2017 being the hottest




0

50

100

150

200

250

300

350


Hea

tin

g D

egre

e D

ays

HDD Oscillation



Figure 10-5 – Renca Cooling Degree Days in last 14 years. Information according to SINCA [3]

Figure 10-36 shows the Cooling Degree Days (CDD) in Renca. The maximum CDD in a year was

168 CDD in 2017, on the other hand, the coldest summer reached only 33 CDD in 2004.

Figure 10-6 – Renca Cooling Degree Days average from the last 14 years [32]. The graph shows the peak CDD and low CDD registered




[76], and most of them live outside of the areas of study [77].

Independencia




0

20

40

60

80

100

120

140

160

180

2002 2004 2006 2008 2010 2012 2014 2016 2018

CDD

0

10

20

30

40

50

60

70

80

90

100






2


2

365

𝐼=0

= 𝐻𝐷𝐷



2

0 = 𝐻𝐷𝐷


Figure 10-17 shows the Heating Degree Days in Independencia. According to the National Air

Quality System (SINCA by its Spanish acronym), the maximum HDD in a year was 1015 HDD in

2010, on the contrary the hottest winter only resulted in 485 HDD in 2014. In comparison, the

HDD in Europe in general is 2,000, 3295 in Berlin, 2702 in Paris, 1024 in Barcelona, and 1860 in

Madrid [73, 74].

Figure 10-7 – Independencia Heating Degree days for the last 14 years. The chart shows the peak and low HDD registered [75]




2



365

𝑖=1

= 𝐶𝐷𝐷



2

0 = 𝐶𝐷𝐷

0

50

100

150

200

250

300

350


Hea

tin

g D

egre

e D

ays

HDD Oscillation



Santiago experiences moderately high temperatures during the summer. As the cooling period is




waves, if any.

In Independencia, cooling degree days have increased over the last decade, with 2017 being the

hottest year as shown in Figure 10-28. The use of AC systems have increased over 300% [76].



Figure 10-8 – Independencia Cooling Degree Days in last 14 years. Information according to SINCA [3]

Figure 10-39 shows the Cooling Degree Days (CDD) in Independencia. The maximum CDD in a

year was 168 CDD in 2017, on the other hand, the coldest summer reached only 33 CDD in 2004.

Figure 10-9 – Independencia Cooling Degree Days average from the last 14 years [32]. The graph shows the peak CDD and low CDD registered

0

20

40

60

80

100

120

140

160

180

2002 2004 2006 2008 2010 2012 2014 2016 2018

CDD

0

10

20

30

40

50

60

70

80

90

100








[76], and most of them live outside of the area of study [77].

Recoleta


temperature (𝑋𝑇𝑠𝑒𝑡) [72] and it is described in the following equations. The equation is defined as



2


2

365

𝐼=0

= 𝐻𝐷𝐷

Equation 10- Heating Degree Days.


2

0 = 𝐻𝐷𝐷

Equation 11- Heating Degree Days.

Figure 10-10 shows the Heating Degree Days in Recoleta. According to the National Air Quality

System (SINCA by its Spanish acronym), the maximum HDD in a year was 1,015 HDD in 2010,


Europe in general is 2,000, 3,295 in Berlin, 2,702 in Paris, 1,024 in Barcelona, 1,860 in Madrid

[73, 74].

Figure 10-10 – Recoleta Heating Degree days for the last 14 years. The chart shows the peak and low HDD registered [75]



0

50

100

150

200

250

300

350


Hea

tin

g D

egre

e D

ays

HDD Oscillation




2



365

𝑖=1

= 𝐶𝐷𝐷



2

0 = 𝐶𝐷𝐷

Recoleta experiences moderately high temperatures during the summer. As the cooling period is

short, most households and business owners will not usually bother to invest in an AC, and would

rather use electric fans. Consequently, most large offices and commercial buildings have

ventilation and air conditioning (HVAC) systems. Fans are the most common form of cooling used

during heat waves, if any.

In Recoleta, cooling degree days have increased over the last decade, with 2017 being the hottest




Figure 10-11 – Recoleta Cooling Degree Days in last 14 years. Information according to SINCA [3]

Figure 10-3 shows the Cooling Degree Days (CDD) in Recoleta. The maximum CDD in a year

was 168 CDD in 2017, on the other hand, the coldest summer reached only 33 CDD in 2004.

0

20

40

60

80

100

120

140

160

180

2002 2004 2006 2008 2010 2012 2014 2016 2018

CDD


Figure 10-12 – Recoleta Cooling Degree Days average from the last 14 years [32]. The graph shows the peak CDD and low CDD registered



according to a Chilean study, only 0.8% of Santiago Metropolitan Region’s inhabitants have an

AC system installed [76], and most of them live outside of the area of study [77].

Coyhaique

A Heating Degree Day is the number of degrees that a day's average temperature is below a set

level (𝑋𝑇𝑠𝑒𝑡) [72] and is described in the following equations. The equation is defined as the

temperature below which buildings need to be heated throughout the entire year.


2


2

365

𝐼=0

= 𝐻𝐷𝐷



2

0 = 𝐻𝐷𝐷


Figure 10-13 shows the Heating Degree Days in Coyhaique. According to the National Air Quality

System (SINCA by its Spanish acronym), in 2017 the HDD was 3,273, and in 2016 it was 3,039.

In comparison, the HDD in Europe in general is 2,000, 3,295 in Berlin, 2,702 in Paris, 1,024 in

Barcelona and 1,860 in Madrid [73, 74].

0

10

20

30

40

50

60

70

80

90

100





Figure 10-13 – Coyhaique Heating Degree days for the last 3 years. The chart shows the peak and low HDD registered [75]

Cooling Degree Days is the number of degrees that a day's average temperature is above a set

temperature (𝑋𝑇𝑠𝑒𝑡).


2



365

𝑖=1

= 𝐶𝐷𝐷



2

0 = 𝐶𝐷𝐷

Coyhaique has a cold oceanic climate, with low temperatures, abundant rainfall, strong winds and

high humidity. As the temperatures are in general low, the results show that the CDD in the last

three years is zero and therefore, no cooling is required in the area.


10.2. APPENDIX B – DECISION MATRIX

10.2.1. Introduction

The criteria to select the area with the best conditions to develop a district energy network is

shown in a Decision Matrix detailed in this section. The document assesses both Cooling and

Heating potential. The weighting for each criterion was identified by a combination of Tractebel-

Engie experience, UNEP’s District Energy Good Practice Guide and District Energy Manuals.

Seven weighting points (WP) were selected for the analysis.

Figure 10-14 – Decision Matrix factors propose by Tractebel

ENERGY AVAILABILITYKEY CLIENTS

BUILDING DIVERSITY


ENERGY DENSITY

(COOLING)

URBAN PLAN FUTURE

ENERGY DENSITY

(HEATING)


10.2.2. Santiago

KEY CLIENTS

The following table considers the number of key customer buildings within the area. The score reflects the number of public buildings in the studied area.

Number of Key Customer Buildings Points

5 or more 5

4 4

3 3

2 2

1 1

Table 10-1 – Amount of key client Buildings within the area

ENERGY AVAILABILITY

Existence and availability of the appropriate types of waste energy within the area (nearby, higher

than 1 MWh):

Has waste heat/cool available Points

Yes 5

No 1

Table 10-2 – Waste Energy available within the area

BUILDING DIVERSITY

A highly diverse area is preferred. If the area has at least 5 types of buildings (Government offices,

Retail, Hotel, Office, Education, Hospital, Residential, Community-Library or Auditorium-), it

scores 5. If it has 4 different types of buildings, then the area scores 4 points, and so on.

Diversity Points

5 5

4 4

3 3

2 2

1 1

Table 10-3 – Building density within the area



Whenever an area has 5 types of natural or man-made barriers, such as a river, park, golf course or cemetery, highway, archeological sites, then it scores 0 points. Conversely, whenever it has none of the criteria mentioned before, scores 5 points:

Diversity Points

0 5

1 4

2 3

3 2

4 1

Table 10-4 – Land barriers within the area

ENERGY DENSITY (HEATING)

The heating density depends on the building type heating ratio. The energy density is given by

the next equation:

𝐸°[𝑘𝑊ℎ/[𝑦𝑟 ∗ 𝑙𝑚]] = 𝐻𝑅 ∗ 𝑆𝑙𝑚⁄

𝐻𝑅 = 𝐻𝑒𝑎𝑡𝑖𝑛𝑔 𝑅𝑎𝑡𝑖𝑜 (𝑘𝑊ℎ )

𝑆(𝑚2) = 𝐸𝑠𝑡𝑖𝑚𝑎𝑡𝑒𝑑 𝑠𝑢𝑟𝑓𝑎𝑐𝑒 ([𝑚2])

lm = Estimated maximum piping length [m]

The pre-selected location for the district energy system must be higher than 1,000 𝑚2.

Energy Density (MWh/lm per year) Points

20 5

15 4

10 3

5 2

Under 5 1

Table 10-5 – Energy density for heating within the area


ENERGY DENSITY (COOLING)

The cooling energy density is a function of the building type cooling ratio. The Energy Density is

given by the equation:


CR = Cooling Ratio [kWh/m2 per year]



The pre-selected location for the district energy system must be higher than 1000 𝑚2. The use of

FeederMarket software is encouraged.

Energy Density (MWh/lm) Points

20 5

15 4

10 3

5 2

Under 5 1

Table 10-6 – Energy density for cooling within the area

URBAN PLAN FUTURE

The table below considers the area under construction. The same methodology as for energy density is used.


20 5

15 4

10 3

5 2

Under 5 1

Table 10-7 – Square meters under construction within the area


SUMMARY AND COMPARISON OF QUALIFYING POINTS

The detail of the quantitative analysis, the score assigned to each item and the comparison

between the 3 areas is summarized in Table 10-8.

WP Area Characteristic Torres de

San Borja Municipality

Estación

Mapocho

1 Key-Client Building 5 2 5

2 Building Diversity 4 2 1

3 Energy Availability 3 1 3

4 Geographical Constraints 5 5 3

5 Future Square Meter

Under constriction

1 2 2

6 Energy Density (Heating) 1 3 1

7 Energy Density (Cooling) 1 1 1

Average Point 2.9 2.3 2.3

Table 10-8 – Summary and comparison of qualifying points

10.2.3. Renca

KEY CLIENTS



5 or more 5

4 4

3 3

2 2

1 1



ENERGY AVAILABILITY


than 1 MWh):


Yes 5

No 1


BUILDING DIVERSITY




Diversity Points

5 5

4 4

3 3

2 2

1 1



Whenever an area has 5 types of natural barriers or human made barriers, such as river, park, golf course or cemetery, highway, archeological sites, then it scores 0 points. Conversely, whenever it has none of the criteria mentioned before, scores 5 points:

Diversity Points

0 5

1 4

2 3

3 2

4 1




The heating Energy Density depends on the building type heating ratio. The Energy Density is

given by the next equation:





The pre-selected location for the energy plant must be higher than 1,000 𝑚2.


20 5

15 4

10 3

5 2

Under 5 1



The cooling energy density is a function of the building type cooling ratio. The Energy Density will

be given by the equation:





The pre-selected location for the district energy must be higher than 1000𝑚2. The use of




20 5

15 4

10 3

5 2

Under 5 1


URBAN PLAN FUTURE

The next table considers the area under construction. The same methodology as for energy density is used.


20 5

15 4

10 3

5 2

Under 5 1






WP Area Characteristic Municipality West Sector Energy Plant






Under constriction

1 1 1





10.2.4. Independencia

KEY CUSTOMERS



5 or more 5

4 4

3 3

2 2

1 1

Table 10-17 – Amount of key customer Buildings within the area

ENERGY AVAILABILITY


than 1 MWh):



Yes 5

No 1


BUILDING DIVERSITY




Diversity Points

5 5

4 4

3 3

2 2

1 1




Diversity Points

0 5

1 4

2 3

3 2

4 1



The heating energy density depends on the building type heating ratio. The Energy Density is







The pre-selected location for the district energy system must be higher than 1,000 𝑚2.


20 5

15 4

10 3

5 2

Under 5 1



The cooling energy density is a function of on the building type cooling ratio. The Energy Density

is given by the equation:





The pre-selected location for the district energy system must be higher than 1000𝑚2. The use of



20 5

15 4

10 3

5 2

Under 5 1



URBAN PLAN FUTURE



20 5

15 4

10 3

5 2

Under 5 1


SUMMARY AND COMPARISON QUALIFYING OF POINTS



WP Area Characteristic Hospital Centro

deportivo Hipódromo






Under constriction

1 1 1






10.2.5. Recoleta

KEY CLIENTS



5 or more 5

4 4

3 3

2 2

1 1


ENERGY AVAILABILITY


than 1 MWh):


Yes 5

No 1


BUILDING DIVERSITY





Diversity Points

5 5

4 4

3 3

2 2

1 1




Diversity Points

0 5

1 4

2 3

3 2

4 1









The pre-selected district energy system location must be higher than 1000𝑚2.



20 5

15 4

10 3

5 2

Under 5 1









The pre-selected district energy system location must be higher than 1000𝑚2. The use of



20 5

15 4

10 3

5 2

Under 5 1


URBAN PLAN FUTURE




20 5

15 4

10 3

5 2

Under 5 1





WP Area Characteristic Hospital Bellavista Municipality






Under constriction

1 1 1




Table 10-32 – Summary and comparison of quantifying points

10.2.6. Coyhaique

KEY CUSTOMERS




5 or more 5

4 4

3 3

2 2

1 1

Table 10-33 – Amount of key customer buildings within the area

ENERGY AVAILABILITY


than 1 MWh):


Yes 5

No 1


BUILDING DIVERSITY

A highly diverse area is preferred. If the area has at least 5 types of buildings (government offices,

retail, hotel, office, education, hospital, residential, community-library or auditorium), it scores 5.

If it has 4 different types of buildings, then the area scores 4 points, and so on.

Diversity Points

5 5

4 4

3 3

2 2

1 1

Table 10-35 – Building diversity within the area




Diversity Points

0 5

1 4

2 3

3 2

4 1






𝐻𝑅 = 𝐻𝑒𝑎𝑡𝑖𝑛𝑔 𝑅𝑎𝑡𝑖𝑜 [𝑘𝑊ℎ ]

𝑆 = 𝐸𝑠𝑡𝑖𝑚𝑎𝑡𝑒𝑑 𝑠𝑢𝑟𝑓𝑎𝑐𝑒 (𝑚2)



20 5

15 4

10 3

5 2

Under 5 1







𝑆 = 𝐸𝑠𝑡𝑖𝑚𝑎𝑡𝑒𝑑 𝑐𝑜𝑛𝑑𝑖𝑡𝑖𝑜𝑛 𝑠𝑢𝑟𝑓𝑎𝑐𝑒 ([𝑚2])




20 5

15 4

10 3

5 2

Under 5 1


URBAN PLAN FUTURE


Energy Density - Urban plan future [MWh/lm] Points

20 5

15 4

10 3

5 2

Under 5 1






WP Area Characteristic Down

Town

Escuela

Agrícola

Quinta

Burgos

1 Key-customer Building 5 2 3




5 Future Square Meter Under constriction 1 1 1


Average Point 3,0 2,0 2,5


10.3. APPENDIX C – PEST

PEST

analysis

Opportunities Barriers

Political factor on PEST analysis

Policy and Regulation

Governmental institutions and the Municipality are motivated and willing to support and adapt regulations concerning the social and environmental benefits.

Strong support from Embassies (Switzerland, Denmark Finland and Germany) and international funds.

The Chilean Ministries of Energy and Environment are preparing a framework to support district energy development

and to increase legislative certainty.

Exhaustive legislation could make the

installation complex and less attractive.

If a pricing regulation is implemented, the business model could become less appealing.

The sheet number of stakeholder authorities (Intendente, Mayor, GORE, CESCO) regions (Departments, Municipalities, Regions, Communes, etc.) and urban planning strategies (PLADECO and Master Plan) may complicate and block (in case of conflict of interest between authorities) the progress of a district energy development, thereby imposing risks on the

investor.

Bureaucracy (paper work, high tax, costs and timing) and coordination complexity to construct underground piping at public assets.

Municipality is unable to raise funds on the

public market.

Waste management represents an opportunity for integrating a district energy system.


Municipality wishes to be part of the initiative and incorporate a district energy into their development plan, PLADECO, which is important in the planning process.

District energy piping distribution network systems use water and therefore distribution risks are lower than with

other fuels such as distributed gas

Technical regulation is under development by the Ministry of energy

A technical set of norms for district piping network is not yet available. Therefore, it is complex to identify how the approval criteria from Municipality would be applied in terms of piping materials, trench sizes, piping depth, proximity to other installations (buried gas, potable, storm water drainage, electrical cabling, data/telecom cabling, metro lines, etc.).

Economical factor on PEST analysis

Business Model

Chile is ranked 55 among 190 economies in the ease of doing business, according world bank annual ranking

Tariff Model

International district energy companies are operating in Chile and have wide knowledge about how manage district energy

…however, they do not operate a district energy system in Chile yet.

Tax regulation

Excessive taxes may impact the attractiveness of the district energy business model.

Social factor on PEST analysis

Social

Aspect

Increasing environmental awareness (global warming, fresh water resources, etc.) is pushing to eco-friendly technologies.

Low expectation on thermal comfort.

Cultural aspects: Traditionally, it is believed that centralized heating is more costly than

fireplaces.

Health

implication Reduces local air pollution.

Stricter regulation on environmental performance and externalities of pollution in social cost analysis will push for higher efficiency systems, such as district energy, in the central south cities of the country.

Reduces noise and heat island effect in the cities.

Energy Poverty

Public policy promoting the improvement of energy efficiency in public and private buildings.


Technical factor on PEST analysis

Technical advantages

Increased R&D in district energy worldwide.

Improved electricity supply and a good

integration with renewables.

An increase in the energy demand and a higher house energy efficiency standard within the city.

Increase in the energy efficiency and

electrical grid resilience.

More efficient electric devices used to provide decentralized heat and cool.

Few buildings with centralized heating and cooling: Buildings with no centralized HVAC have a difficult integration to the district energy network.

Energy efficiency does not meet international constructions standards.

10.4. APPENDIX D – ECONOMIC ANALYSIS

10.4.1. Santiago

CAPEX

The detail of the CAPEX estimate [USD] for each of the options is presented in Table 10-41, Table

10-42, Table 10-43 and Table 10-44.


Table 10-41 - CAPEX [USD] district cooling with chillers

Item [USD] 2020

Development cost

Land cost 8.241.335

Engineering 286.398

Total development cost 8.527.734

Direct cost

Thermal plant

Thermal equipment 502.872

Building construction 97.352

Taxes 22.731

Total thermal plant 622.955

Distribution system

Electromechanical equipment (Cooling) 139.162

Piping installation total 909.249

Taxes 22.731

Warranty -

Total distribution system 1.071.142

Connection system

Interface User 33.376

Piping connection 181.850

Total connection system 215.226

Total direct cost 1.909.323

Indirect cost

Temporary work 190.932

Customs Clearance and Transportation 67.541

Insurance and Guarantees 31.148

Total indirect cost 289.621

Others

Utilities and GG Contractors 286.398

Contingencies 286.398

Total others 572.797

Total CAPEX 11.299.474


Table 10-42 - CAPEX [USD] district heating with heat pumps

Item [USD] 2020

Development cost

Land cost 8.241.335

Engineering 183.060


Direct cost

Thermal plant



Taxes 18.108


Distribution system

Electromechanical equipment (Heating) 117.966

Piping installation total 724.331

Taxes 18.108

Warranty -

Total distribution system 860.406

Connection system





Indirect cost





Others






Table 10-43– CAPEX [USD] district heating and cooling with heat pumps

Item [USD] 2020

Development cost

Land cost 8.241.335

Engineering 362.128


Direct cost

Thermal plant



Taxes 33.639


Distribution system



Piping installation total 1.345.554

Taxes 33.639

Warranty -


Connection system





Indirect cost





Others






Table 10-44 – CAPEX [USD] district heating and cooling with trigeneration

Item [USD] 2020

Development cost

Land cost 8.241.335

Engineering 414.620

Total development cost

Direct cost

Thermal plant



Taxes 33.639


Distribution system




Taxes 33.639

Warranty -


Connection system





Indirect cost





Others






OPEX

The detail of the OPEX estimate [USD] for each of the options is presented in Table 10-45, Table

10-46, Table 10-47 and Table 10-48


Table 10-45 - OPEX [USD] district cooling with chillers

Item [USD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Electricity - 80,084 79,707 79,691 79,149 79,640 79,043 79,367 80,010 79,426 78,758

Natural Gas - - - - - - - - - - -

Fuel total - 80,084 79,707 79,691 79,149 79,640 79,043 79,367 80,010 79,426 78,758

Water - 5,375 5,341 5,341 5,341 5,341 5,341 5,341 5,341 5,341 5,341

Operation and Maintenance - 29,353 29,353 29,353 29,353 29,353 29,353 29,353 29,353 29,353 29,353

Overhaul - 96,597 96,597 96,597 96,597 96,597 96,597 96,597 96,597 96,597 96,597

Selling, General and Administrative Expenses - 18,900 18,900 18,900 18,900 18,900 18,900 18,900 18,900 18,900 18,900

Insurance - 8,907 8,906 8,906 8,905 8,906 8,905 8,906 8,907 8,906 8,904

Total operating expenses - 239,216 238,804 238,788 238,245 238,737 238,138 238,463 239,108 238,522 237,853

Item [USD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Electricity 82,167 82,200 82,578 82,726 82,147 82,279 82,978 82,555 82,604 82,811

Natural Gas - - - - - - - - - -

Fuel total 82,167 82,200 82,578 82,726 82,147 82,279 82,978 82,555 82,604 82,811

Water 5,341 5,341 5,341 5,341 5,341 5,341 5,341 5,341 5,341 5,341

Operation and Maintenance 30,804 30,804 30,804 30,804 30,804 30,804 30,804 30,804 30,804 30,804

Overhaul 104,751 104,751 104,751 104,751 104,751 104,751 104,751 104,751 104,751 104,751

Selling, General and Administrative Expenses 18,900 18,900 18,900 18,900 18,900 18,900 18,900 18,900 18,900 18,900

Insurance 9,646 9,646 9,647 9,648 9,646 9,647 9,648 9,647 9,647 9,648

Total operating expenses 251,609 251,642 252,021 252,170 251,589 251,721 252,422 251,998 252,048 252,255

Item [USD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Electricity 83,184 83,600 84,410 83,997 83,955 84,652 85,422 86,088 85,460 85,451

Natural Gas - - - - - - - - - -

Fuel total 83,184 83,600 84,410 83,997 83,955 84,652 85,422 86,088 85,460 85,451

Water 5,341 5,341 5,341 5,341 5,341 5,341 5,341 5,341 5,341 5,341


Overhaul 104,751 104,751 104,751 104,751 104,751 104,751 104,751 104,751 104,751 104,751


Insurance 9,649 9,650 9,652 9,651 9,651 9,653 9,654 9,656 9,655 9,655



Table 10-46 - district heating with heat pumps

Item [USD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Electricity - 79,152 78,780 78,764 78,228 78,713 78,123 78,443 79,079 78,502 77,842

Natural Gas - - - - - - - - - - -

Fuel total - 79,152 78,780 78,764 78,228 78,713 78,123 78,443 79,079 78,502 77,842

Water - - - - - - - - - - -


Overhaul - 96,597 96,597 96,597 96,597 96,597 96,597 96,597 96,597 96,597 96,597


Insurance - 8,907 8,906 8,906 8,905 8,906 8,905 8,906 8,907 8,906 8,904


Item [USD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Electricity 81,211 81,243 81,617 81,764 81,192 81,321 82,013 81,594 81,643 81,847

Natural Gas - - - - - - - - - -

Fuel total 81,211 81,243 81,617 81,764 81,192 81,321 82,013 81,594 81,643 81,847

Water - - - - - - - - - -


Overhaul 104,751 104,751 104,751 104,751 104,751 104,751 104,751 104,751 104,751 104,751


Insurance 9,646 9,646 9,647 9,648 9,646 9,647 9,648 9,647 9,647 9,648


Item [USD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Electricity 82,216 82,627 83,428 83,020 82,978 83,667 84,428 85,087 84,466 84,457

Natural Gas - - - - - - - - - -

Fuel total 82,216 82,627 83,428 83,020 82,978 83,667 84,428 85,087 84,466 84,457

Water - - - - - - - - - -


Overhaul 104,751 104,751 104,751 104,751 104,751 104,751 104,751 104,751 104,751 104,751


Insurance 9,649 9,650 9,652 9,651 9,651 9,653 9,654 9,656 9,655 9,655



Table 10-47 – OPEX [USD] district heating and cooling with heat pumps

Item [USD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Electricity - 113,021 112,490 112,467 111,703 112,395 111,552 112,010 112,917 112,093 111,151

Natural Gas - 735 713 658 601 562 570 574 526 543 519

Fuel total - 113,756 113,203 113,125 112,304 112,957 112,122 112,583 113,443 112,636 111,670

Water - 4,643 4,630 4,626 4,652 4,660 4,665 4,677 4,696 4,693 4,673


Overhaul - 118,026 118,026 118,026 118,026 118,026 118,026 118,026 118,026 118,026 118,026


Insurance - 10,918 10,917 10,917 10,915 10,916 10,914 10,915 10,918 10,916 10,913


Item [USD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Electricity 115,961 116,007 116,541 116,751 115,934 116,119 117,106 116,509 116,579 116,870

Natural Gas 736 716 669 732 776 790 807 781 749 803

Fuel total 116,697 116,723 117,210 117,483 116,709 116,909 117,913 117,289 117,328 117,673

Water 4,666 4,711 4,697 4,709 4,692 4,729 4,709 4,717 4,717 4,754


Overhaul 131,268 131,268 131,268 131,268 131,268 131,268 131,268 131,268 131,268 131,268


Insurance 12,118 12,118 12,119 12,120 12,118 12,118 12,121 12,119 12,119 12,120


Item [USD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Electricity 117,396 117,983 119,128 118,544 118,485 119,468 120,555 121,495 120,609 120,596

Natural Gas 875 945 1,041 970 880 939 953 898 951 980

Fuel total 118,271 118,928 120,168 119,514 119,364 120,407 121,508 122,394 121,559 121,576

Water 4,757 4,796 4,809 4,829 4,817 4,795 4,824 4,853 4,897 4,925


Overhaul 131,268 131,268 131,268 131,268 131,268 131,268 131,268 131,268 131,268 131,268


Insurance 12,122 12,123 12,127 12,125 12,125 12,127 12,130 12,132 12,130 12,130



Table 10-48 – OPEX [USD] district heating and cooling with trigeneration

Item [USD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Electricity - 57,831 57,559 57,548 57,157 57,511 57,080 57,314 57,778 57,356 56,874

Natural Gas - 3,885 3,768 3,476 3,177 2,967 3,013 3,031 2,780 2,871 2,744

Fuel total - 61,716 61,328 61,024 60,334 60,478 60,093 60,344 60,558 60,228 59,619

Water - 3,566 3,556 3,553 3,573 3,579 3,583 3,592 3,606 3,605 3,590


Overhaul - 137,388 137,388 137,388 137,388 137,388 137,388 137,388 137,388 137,388 137,388


Insurance - 12,528 12,527 12,526 12,525 12,525 12,524 12,525 12,525 12,524 12,523


Item [USD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Electricity 59,336 59,359 59,632 59,740 59,322 59,416 59,922 59,616 59,652 59,801

Natural Gas 3,889 3,782 3,536 3,868 4,098 4,175 4,262 4,125 3,959 4,243

Fuel total 63,225 63,141 63,169 63,607 63,420 63,592 64,183 63,741 63,610 64,044

Water 3,584 3,618 3,608 3,617 3,604 3,632 3,617 3,623 3,623 3,651


Overhaul 150,122 150,122 150,122 150,122 150,122 150,122 150,122 150,122 150,122 150,122


Insurance 13,678 13,678 13,678 13,679 13,679 13,679 13,680 13,679 13,679 13,680


Item [USD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Electricity 60,070 60,370 60,956 60,657 60,627 61,130 61,686 62,167 61,714 61,707

Natural Gas 4,623 4,994 5,498 5,127 4,647 4,964 5,033 4,748 5,022 5,178

Fuel total 64,693 65,364 66,454 65,784 65,274 66,094 66,720 66,915 66,736 66,885

Water 3,653 3,683 3,694 3,709 3,700 3,683 3,705 3,727 3,761 3,783


Overhaul 150,122 150,122 150,122 150,122 150,122 150,122 150,122 150,122 150,122 150,122


Insurance 13,682 13,684 13,686 13,685 13,683 13,685 13,687 13,688 13,687 13,688



DEBT SERVICE ACCOUNT

The detail of debt service account [USD] for each of the alternatives is presented in Table 10-49,

Table 10-50, Table 10-51 and Table 10-52. The debt considers 50% of the total CAPEX, with a

debt period of 30 years and a 4% effective interest rate.


Table 10-49 - Debt service account [USD] district cooling with chillers

Item [USD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Opening balance - 5,624,438 5,524,153 5,419,858 5,311,390 5,198,584 5,081,266 4,959,254 4,832,363 4,700,395 4,563,150

Total payment - 325,262 325,262 325,262 325,262 325,262 325,262 325,262 325,262 325,262 325,262

Interest payment - 224,978 220,966 216,794 212,456 207,943 203,251 198,370 193,295 188,016 182,526

Principle payment - 100,284 104,296 108,467 112,806 117,318 122,011 126,892 131,967 137,246 142,736

Closing balance - 5,524,153 5,419,858 5,311,390 5,198,584 5,081,266 4,959,254 4,832,363 4,700,395 4,563,150 4,420,414

Item [USD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Opening balance 4,420,414 4,271,969 4,117,585 3,957,027 3,790,046 3,616,386 3,435,780 3,247,950 3,052,606 2,849,448

Total payment 325,262 325,262 325,262 325,262 325,262 325,262 325,262 325,262 325,262 325,262

Interest payment 176,817 170,879 164,703 158,281 151,602 144,655 137,431 129,918 122,104 113,978

Principle payment 148,445 154,383 160,558 166,981 173,660 180,606 187,831 195,344 203,158 211,284

Closing balance 4,271,969 4,117,585 3,957,027 3,790,046 3,616,386 3,435,780 3,247,950 3,052,606 2,849,448 2,638,164

Item [USD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Opening balance 2,638,164 2,418,429 2,189,905 1,952,239 1,705,067 1,448,008 1,180,666 902,631 613,475 312,752

Total payment 325,262 325,262 325,262 325,262 325,262 325,262 325,262 325,262 325,262 325,262



Closing balance 2,418,429 2,189,905 1,952,239 1,705,067 1,448,008 1,180,666 902,631 613,475 312,752 -


Table 10-50 - Debt service account [USD] district heating with heat pumps

Item [USD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Opening balance - 5,053,757 4,963,648 4,869,935 4,772,473 4,671,113 4,565,698 4,456,067 4,342,050 4,223,473 4,100,152

Total payment - 292,259 292,259 292,259 292,259 292,259 292,259 292,259 292,259 292,259 292,259



Closing balance - 4,963,648 4,869,935 4,772,473 4,671,113 4,565,698 4,456,067 4,342,050 4,223,473 4,100,152 3,971,899

Item [USD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Opening balance 3,971,899 3,838,516 3,699,797 3,555,530 3,405,492 3,249,452 3,087,171 2,918,398 2,742,875 2,560,331

Total payment 292,259 292,259 292,259 292,259 292,259 292,259 292,259 292,259 292,259 292,259



Closing balance 3,838,516 3,699,797 3,555,530 3,405,492 3,249,452 3,087,171 2,918,398 2,742,875 2,560,331 2,370,485

Item [USD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Opening balance 2,370,485 2,173,045 1,967,707 1,754,156 1,532,063 1,301,086 1,060,871 811,046 551,229 281,019

Total payment 292,259 292,259 292,259 292,259 292,259 292,259 292,259 292,259 292,259 292,259



Closing balance 2,173,045 1,967,707 1,754,156 1,532,063 1,301,086 1,060,871 811,046 551,229 281,019 -


Table 10-51 - Debt service account [USD] district heating and cooling with heat pumps

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Opening balance - 6,079,695 5,971,293 5,858,555 5,741,308 5,619,371 5,492,557 5,360,670 5,223,507 5,080,858 4,932,503

Total payment - 292,259 351,589 351,589 351,589 351,589 351,589 351,589 351,589 351,589 351,589



Closing balance - 4,963,648 5,858,555 5,741,308 5,619,371 5,492,557 5,360,670 5,223,507 5,080,858 4,932,503 4,778,214

2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Opening balance 4,778,214 4,617,753 4,450,874 4,277,319 4,096,823 3,909,106 3,713,881 3,510,847 3,299,692 3,080,090

Total payment 351,589 351,589 351,589 351,589 351,589 351,589 351,589 351,589 351,589 351,589



Closing balance 4,617,753 4,450,874 4,277,319 4,096,823 3,909,106 3,713,881 3,510,847 3,299,692 3,080,090 2,851,704

2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Opening balance 2,851,704 2,614,183 2,367,161 2,110,258 1,843,079 1,565,213 1,276,232 975,692 663,131 338,067

Total payment 351,589 351,589 351,589 351,589 351,589 351,589 351,589 351,589 351,589 351,589



Closing balance 2,614,183 2,367,161 2,110,258 1,843,079 1,565,213 1,276,232 975,692 663,131 338,067 -

Item [USD]

Item [USD]

Item [USD]


Table 10-52 - Debt service account [USD] district heating and cooling with trigeneration

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Opening balance - 6,364,813 6,251,328 6,133,303 6,010,558 5,882,902 5,750,140 5,612,068 5,468,473 5,319,134 5,163,822

Total payment - 368,078 368,078 368,078 368,078 368,078 368,078 368,078 368,078 368,078 368,078



Closing balance - 6,251,328 6,133,303 6,010,558 5,882,902 5,750,140 5,612,068 5,468,473 5,319,134 5,163,822 5,002,297

2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Opening balance 5,002,297 4,834,311 4,659,606 4,477,912 4,288,951 4,092,431 3,888,051 3,675,495 3,454,437 3,224,537

Total payment 368,078 368,078 368,078 368,078 368,078 368,078 368,078 368,078 368,078 368,078



Closing balance 4,834,311 4,659,606 4,477,912 4,288,951 4,092,431 3,888,051 3,675,495 3,454,437 3,224,537 2,985,440

2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Opening balance 2,985,440 2,736,780 2,478,174 2,209,223 1,929,514 1,638,617 1,336,084 1,021,449 694,230 353,921

Total payment 368,078 368,078 368,078 368,078 368,078 368,078 368,078 368,078 368,078 368,078



Closing balance 2,736,780 2,478,174 2,209,223 1,929,514 1,638,617 1,336,084 1,021,449 694,230 353,921 -

Item [USD]

Item [USD]

Item [USD]


CASH FLOW STATEMENT

The estimated cash flow [MUSD] for each alternative is presented in Table 10-53, Table 10-54,

Table 10-55 and Table 10-56. A free land concession is considered and 50% of the capital

investment is financed with debt.


Item [MMUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Energy sales - 0.47 0.47 0.47 0.47 0.47 0.47 0.47 0.47 0.47 0.47

Fuel cost - (0.08) (0.08) (0.08) (0.08) (0.08) (0.08) (0.08) (0.08) (0.08) (0.08)

Water - (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Operation and Maintenance (includes Overhaul) - (0.14) (0.14) (0.14) (0.14) (0.14) (0.14) (0.14) (0.14) (0.14) (0.14)

Insurance - (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Gross profit - 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24

Selling, General and Administrative Expenses - (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02)

EBITDA - 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22

Depreciation - (0.33) (0.33) (0.33) (0.33) (0.33) (0.33) (0.01) (0.01) (0.01) (0.01)

Debt amortization - (0.03) (0.03) (0.03) (0.03) (0.03) (0.04) (0.04) (0.04) (0.04) (0.04)

EBIT - (0.14) (0.14) (0.14) (0.15) (0.15) (0.15) 0.17 0.17 0.17 0.17

Interest - (0.07) (0.07) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.05)

Tax - - - - - - - (0.04) (0.04) (0.04) (0.04)

Earnings after interest and tax - (0.21) (0.21) (0.21) (0.21) (0.21) (0.21) 0.07 0.07 0.07 0.07

Depreciation - 0.33 0.33 0.33 0.33 0.33 0.33 0.01 0.01 0.01 0.01

Investment (1.68) - - - - - - - - - -

Change in working capital - - - - - - - - - - -

Free cash flow (1.68) 0.12 0.12 0.12 0.12 0.12 0.12 0.08 0.08 0.08 0.08

Actualized Free cash flow (1.68) 0.12 0.11 0.11 0.10 0.10 0.09 0.06 0.06 0.05 0.05

Item [MMUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Energy sales 0.47 0.47 0.47 0.46 0.46 0.46 0.46 0.46 0.46 0.46

Fuel cost (0.08) (0.08) (0.08) (0.08) (0.08) (0.08) (0.08) (0.08) (0.08) (0.08)

Water (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Operation and Maintenance (includes Overhaul) (0.13) (0.13) (0.13) (0.13) (0.13) (0.13) (0.13) (0.13) (0.13) (0.13)

Insurance (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Gross profit 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24

Selling, General and Administrative Expenses (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02)

EBITDA 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22

Depreciation (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) - - - -

Debt amortization (0.04) (0.04) (0.05) (0.05) (0.05) (0.05) (0.05) (0.06) (0.06) (0.06)

EBIT 0.17 0.17 0.17 0.17 0.16 0.16 0.17 0.16 0.16 0.16

Interest (0.05) (0.05) (0.05) (0.04) (0.04) (0.04) (0.04) (0.04) (0.03) (0.03)

Tax (0.04) (0.04) (0.05) (0.05) (0.05) (0.05) (0.05) (0.05) (0.05) (0.05)

Earnings after interest and tax 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08

Depreciation 0.01 0.01 0.01 0.01 0.01 0.01 - - - -

Investment - - - - - - - - - -

Change in working capital - - - - - - - - - -

Free cash flow 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08

Actualized Free cash flow 0.05 0.05 0.05 0.04 0.04 0.04 0.04 0.04 0.03 0.03


Table 10-53 – Cash Flow Statement [MUSD] district cooling with chillers

Item [MMUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Energy sales 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.45

Fuel cost (0.08) (0.08) (0.08) (0.08) (0.08) (0.08) (0.08) (0.08) (0.08) (0.08)

Water (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)


Insurance (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Gross profit 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24


EBITDA 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22

Depreciation - - - - - - - - - -


EBIT 0.16 0.16 0.16 0.16 0.15 0.15 0.15 0.14 0.14 0.14

Interest (0.03) (0.03) (0.02) (0.02) (0.02) (0.02) (0.01) (0.01) (0.01) (0.00)

Tax (0.05) (0.05) (0.05) (0.05) (0.05) (0.06) (0.06) (0.06) (0.06) (0.06)


Depreciation - - - - - - - - - -

Investment - - - - - - - - - -


Free cash flow 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08



Item [MMUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Energy sales - 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33

Fuel cost - (0.08) (0.08) (0.08) (0.08) (0.08) (0.08) (0.08) (0.08) (0.08) (0.08)

Water - - - - - - - - - - -


Insurance - (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Gross profit - 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16


EBITDA - 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.14

Depreciation - (0.21) (0.21) (0.21) (0.21) (0.21) (0.21) (0.00) (0.00) (0.00) (0.00)


EBIT - (0.09) (0.09) (0.09) (0.09) (0.09) (0.09) 0.12 0.11 0.11 0.11

Interest - (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.03)

Tax - - - - - - - (0.03) (0.03) (0.03) (0.03)


Depreciation - 0.21 0.21 0.21 0.21 0.21 0.21 0.00 0.00 0.00 0.00

Investment (1.06) - - - - - - - - - -


Free cash flow (1.06) 0.08 0.08 0.08 0.08 0.08 0.08 0.06 0.05 0.05 0.05


Item [MMUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Energy sales 0.32 0.32 0.32 0.32 0.32 0.32 0.32 0.32 0.32 0.32

Fuel cost (0.08) (0.08) (0.08) (0.08) (0.08) (0.08) (0.08) (0.08) (0.08) (0.08)

Water - - - - - - - - - -


Insurance (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Gross profit 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16


EBITDA 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.14

Depreciation (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) - - - -


EBIT 0.11 0.11 0.11 0.11 0.11 0.10 0.11 0.11 0.10 0.10

Interest (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.02) (0.02) (0.02) (0.02)

Tax (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03)


Depreciation 0.00 0.00 0.00 0.00 0.00 0.00 - - - -

Investment - - - - - - - - - -


Free cash flow 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05



Table 10-54 - Cash Flow Statement [MUSD] district heating with heat pumps

Item [MMUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Energy sales 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.30

Fuel cost (0.08) (0.08) (0.08) (0.08) (0.08) (0.08) (0.08) (0.08) (0.08) (0.08)

Water - - - - - - - - - -


Insurance (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Gross profit 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15


EBITDA 0.13 0.13 0.13 0.13 0.13 0.13 0.13 0.13 0.13 0.13

Depreciation - - - - - - - - - -


EBIT 0.10 0.10 0.10 0.09 0.09 0.09 0.09 0.09 0.09 0.08

Interest (0.02) (0.02) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.00) (0.00)

Tax (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.04) (0.04)


Depreciation - - - - - - - - - -

Investment - - - - - - - - - -


Free cash flow 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05



Item [MMUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Energy sales - 0.61 0.61 0.61 0.61 0.61 0.61 0.61 0.61 0.61 0.61

Fuel cost - (0.11) (0.11) (0.11) (0.11) (0.11) (0.11) (0.11) (0.12) (0.12) (0.12)

Water - (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)


Insurance - (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Gross profit - 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31


EBITDA - 0.28 0.28 0.28 0.28 0.28 0.28 0.28 0.28 0.28 0.28

Depreciation - (0.40) (0.40) (0.40) (0.40) (0.40) (0.40) (0.01) (0.01) (0.01) (0.01)


EBIT - (0.16) (0.16) (0.16) (0.16) (0.17) (0.17) 0.22 0.22 0.22 0.21

Interest - (0.08) (0.08) (0.08) (0.08) (0.08) (0.07) (0.07) (0.07) (0.07) (0.07)

Tax - - - - - - - (0.05) (0.05) (0.05) (0.05)


Depreciation - 0.40 0.40 0.40 0.40 0.40 0.40 0.01 0.01 0.01 0.01

Investment (2.07) - - - - - - - - - -


Free cash flow (2.07) 0.16 0.16 0.16 0.16 0.16 0.16 0.11 0.11 0.11 0.11


Item [MMUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Energy sales 0.60 0.60 0.60 0.60 0.60 0.59 0.59 0.59 0.59 0.59

Fuel cost (0.12) (0.12) (0.12) (0.12) (0.12) (0.11) (0.11) (0.11) (0.11) (0.11)

Water (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)


Insurance (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Gross profit 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31


EBITDA 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27

Depreciation (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) - - - -


EBIT 0.21 0.21 0.20 0.20 0.20 0.20 0.21 0.20 0.20 0.20

Interest (0.06) (0.06) (0.06) (0.06) (0.05) (0.05) (0.05) (0.05) (0.04) (0.04)

Tax (0.05) (0.05) (0.05) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06)


Depreciation 0.01 0.01 0.01 0.01 0.01 0.01 - - - -

Investment - - - - - - - - - -


Free cash flow 0.11 0.11 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10



Table 10-55 - Cash Flow Statement [MUSD] district heating and cooling with heat pumps

Item [MMUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Energy sales 0.57 0.57 0.57 0.57 0.57 0.57 0.57 0.57 0.57 0.57

Fuel cost (0.11) (0.11) (0.11) (0.11) (0.11) (0.11) (0.11) (0.11) (0.11) (0.11)

Water (0.00) (0.00) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)


Insurance (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Gross profit 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30


EBITDA 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26

Depreciation - - - - - - - - - -


EBIT 0.19 0.19 0.19 0.18 0.18 0.18 0.17 0.17 0.17 0.16

Interest (0.03) (0.03) (0.03) (0.02) (0.02) (0.02) (0.02) (0.01) (0.01) (0.00)

Tax (0.06) (0.06) (0.06) (0.06) (0.06) (0.07) (0.07) (0.07) (0.07) (0.07)


Depreciation - - - - - - - - - -

Investment - - - - - - - - - -


Free cash flow 0.10 0.10 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09



Item [MMUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Energy sales - 0.50 0.49 0.49 0.49 0.50 0.49 0.50 0.50 0.50 0.50

Electricity sales - 0.13 0.13 0.13 0.13 0.13 0.13 0.13 0.13 0.13 0.13

Fuel cost - (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06)

Water - (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)


Insurance - (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Gross profit - 0.36 0.35 0.35 0.36 0.36 0.35 0.36 0.36 0.36 0.36


EBITDA - 0.32 0.32 0.32 0.32 0.32 0.32 0.32 0.32 0.32 0.32

Depreciation - (0.46) (0.46) (0.46) (0.46) (0.46) (0.46) (0.01) (0.01) (0.01) (0.01)


EBIT - (0.18) (0.19) (0.19) (0.19) (0.19) (0.19) 0.25 0.25 0.25 0.25

Interest - (0.10) (0.09) (0.09) (0.09) (0.09) (0.09) (0.08) (0.08) (0.08) (0.08)

Tax - - - - - - - (0.06) (0.06) (0.06) (0.06)


Depreciation - 0.46 0.46 0.46 0.46 0.46 0.46 0.01 0.01 0.01 0.01

Investment (2.38) - - - - - - - - - -


Free cash flow (2.38) 0.18 0.18 0.18 0.18 0.18 0.18 0.12 0.12 0.12 0.12


Item [MMUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Energy sales 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48

Electricity sales 0.14 0.14 0.13 0.13 0.13 0.13 0.13 0.13 0.13 0.13

Fuel cost (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06)

Water (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)


Insurance (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Gross profit 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35


EBITDA 0.32 0.32 0.32 0.32 0.32 0.32 0.31 0.31 0.31 0.31

Depreciation (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) - - - -


EBIT 0.24 0.24 0.24 0.23 0.23 0.23 0.24 0.24 0.23 0.23

Interest (0.07) (0.07) (0.07) (0.06) (0.06) (0.06) (0.06) (0.05) (0.05) (0.05)

Tax (0.06) (0.06) (0.06) (0.06) (0.06) (0.07) (0.07) (0.07) (0.07) (0.07)


Depreciation 0.01 0.01 0.01 0.01 0.01 0.01 - - - -

Investment - - - - - - - - - -


Free cash flow 0.12 0.12 0.12 0.12 0.12 0.12 0.11 0.11 0.11 0.11



Table 10-56 - Cash Flow Statement [MUSD] district heating and cooling with trigeneration

Item [MMUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Energy sales 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46


Fuel cost (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06)

Water (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)


Insurance (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Gross profit 0.34 0.34 0.34 0.34 0.34 0.34 0.34 0.34 0.33 0.33


EBITDA 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30

Depreciation - - - - - - - - - -


EBIT 0.22 0.22 0.21 0.21 0.20 0.20 0.20 0.19 0.19 0.18

Interest (0.04) (0.04) (0.03) (0.03) (0.03) (0.02) (0.02) (0.01) (0.01) (0.00)

Tax (0.07) (0.07) (0.07) (0.07) (0.07) (0.08) (0.08) (0.08) (0.08) (0.08)


Depreciation - - - - - - - - - -

Investment - - - - - - - - - -


Free cash flow 0.11 0.11 0.11 0.11 0.10 0.10 0.10 0.10 0.10 0.10



PROFIT AND LOSS STATEMENT

The estimated profit and loss statement [MUSD] for each alternative is presented in Table 10-57,

Table 10-58, Table 10-59 and Table 10-60. A free land concession is considered and 50% of the

capital investment is financed with debt.


Item [MMUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Operating revenues

Energy sales 0.00 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46

Total revenue 0.00 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46

Operating costs

Fuel 0.00 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08

Water 0.00 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

Operation and Maintenance 0.00 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03

Overhaul 0.00 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09

Selling, General and Administrative Expenses 0.00 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02

Insurance 0.00 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

Total operating costs 0.00 0.23 0.23 0.23 0.23 0.23 0.23 0.23 0.23 0.23 0.23

Profit before Interest and Taxes 0.00 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22

Interest expense 0.00 0.06 0.06 0.06 0.06 0.06 0.05 0.05 0.05 0.05 0.05

Profit before taxes 0.00 0.16 0.16 0.16 0.17 0.17 0.17 0.17 0.17 0.17 0.17

Income taxes 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.04 0.04 0.04 0.05

Net earnings 0.00 0.16 0.16 0.16 0.17 0.17 0.17 0.13 0.13 0.13 0.13


Item [MMUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Operating revenues

Energy sales 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46

Total revenue 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46

Operating costs

Fuel 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08

Water 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

Operation and Maintenance 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03

Overhaul 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09

Selling, General and Administrative Expenses 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02

Insurance 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

Total operating costs 0.23 0.23 0.23 0.23 0.23 0.24 0.24 0.24 0.24 0.24

Profit before Interest and Taxes 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22

Interest expense 0.05 0.05 0.04 0.04 0.04 0.04 0.04 0.03 0.03 0.03

Profit before taxes 0.18 0.18 0.18 0.18 0.18 0.18 0.19 0.19 0.19 0.19

Income taxes 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05

Net earnings 0.13 0.13 0.13 0.13 0.13 0.14 0.14 0.14 0.14 0.14


Table 10-57 - Profit and Loss Statement [MUSD] district cooling with chillers

Item [MMUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Operating revenues

Energy sales 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46

Total revenue 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46

Operating costs

Fuel 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08

Water 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01


Overhaul 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09


Insurance 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01





Income taxes 0.05 0.05 0.05 0.05 0.06 0.06 0.06 0.06 0.06 0.06

Net earnings 0.14 0.14 0.15 0.15 0.15 0.15 0.15 0.16 0.16 0.16


Item [MMUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Operating revenues

Energy sales 0.00 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31

Total revenue 0.00 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31

Operating costs

Fuel 0.00 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08

Water 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Overhaul 0.00 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06


Insurance 0.00 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01





Income taxes 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.03 0.03 0.03 0.03

Net earnings 0.00 0.10 0.10 0.10 0.10 0.10 0.10 0.08 0.08 0.08 0.08


Item [MMUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Operating revenues

Energy sales 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31

Total revenue 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31

Operating costs

Fuel 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08

Water 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Overhaul 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06


Insurance 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01





Income taxes 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03

Net earnings 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.09


Table 10-58 - Profit and Loss Statement [MUSD] district heating with heat pumps

Item [MMUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Operating revenues

Energy sales 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31

Total revenue 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31

Operating costs

Fuel 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08

Water 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Overhaul 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06


Insurance 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01





Income taxes 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.04 0.04 0.04

Net earnings 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.10 0.10 0.10


Item [MMUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Operating revenues

Energy sales 0.00 0.58 0.58 0.58 0.58 0.57 0.57 0.58 0.58 0.58 0.58

Total revenue 0.00 0.58 0.58 0.58 0.58 0.57 0.57 0.58 0.58 0.58 0.58

Operating costs

Fuel 0.00 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11

Water 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Overhaul 0.00 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12


Insurance 0.00 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01



Interest expense 0.00


Income taxes 0.00

Net earnings 0.00 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27


Item [MMUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Operating revenues

Energy sales 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58

Total revenue 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58

Operating costs

Fuel 0.11 0.11 0.11 0.11 0.11 0.12 0.12 0.12 0.12 0.12

Water 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Overhaul 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12


Insurance 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01



Interest expense


Income taxes

Net earnings 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27


Table 10-59 - Profit and Loss Statement [MUSD] district heating and cooling with heat pumps

Item [MMUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Operating revenues

Energy sales 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58

Total revenue 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58

Operating costs

Fuel 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12

Water 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Overhaul 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12


Insurance 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01



Interest expense


Income taxes

Net earnings 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27


Item [MMUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Operating revenues

Energy sales 0.00 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46

Electricity sales 0.00 0.13 0.13 0.13 0.13 0.13 0.13 0.13 0.13 0.13 0.13

Total revenue 0.00 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59

Operating costs

Fuel 0.00 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06

Water 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Overhaul 0.00 0.13 0.13 0.13 0.13 0.13 0.13 0.13 0.13 0.13 0.13


Insurance 0.00 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01





Income taxes

Net earnings 0.00 0.22 0.22 0.22 0.22 0.23 0.23 0.23 0.23 0.23 0.23


Item [MMUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Operating revenues

Energy sales 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46


Total revenue 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.60 0.60 0.59

Operating costs

Fuel 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06

Water 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Overhaul 0.13 0.13 0.13 0.13 0.13 0.13 0.13 0.13 0.13 0.13


Insurance 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01





Income taxes

Net earnings 0.24 0.24 0.24 0.24 0.25 0.25 0.26 0.26 0.26 0.27


Table 10-60 - Profit and Loss Statement [MUSD] district heating and cooling with trigeneration

Item [MMUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Operating revenues

Energy sales 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46


Total revenue 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60

Operating costs

Fuel 0.06 0.06 0.06 0.07 0.07 0.07 0.06 0.06 0.06 0.06

Water 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Overhaul 0.13 0.13 0.13 0.13 0.13 0.13 0.13 0.13 0.13 0.13


Insurance 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01





Income taxes

Net earnings 0.27 0.27 0.28 0.28 0.28 0.29 0.29 0.30 0.30 0.30


10.4.2. Renca

CAPEX

The detail of the CAPEX estimate [USD] for each of the OPTIONS is presented in Table 10-41,

Table 10-42, Table 10-43 and Table 10-44.


Item [USD] 2020

Development cost

Land cost 901,648

Engineering 175,348

Total development cost 1,076,995

Direct cost

Thermal plant

Thermal equipment 45,178

Building construction 5,135

Taxes 17,900

Total thermal plant 68,213

Dsitribution system

Electromechanical equipment (Cooling) 144,333

Piping installation total 716,003

Taxes 17,900

Warranty 71,600

Total distribution system 949,836

Connection system

Interface User 7,735

Piping connection 143,201

Total connection system 150,935

Total direct cost 1,168,984

Indirect cost

Temporary work 116,898

Customs Clearance and Transportation 19,725

Insurance and Guarantees 3,411

Total indirect cost 140,034

Others

Utilities and GG Contractors 175,348

Contingencies 175,348

Total others 350,695

Total CAPEX 2,736,708



Item [USD] 2020

Development cost

Land cost 901,648

Engineering 173,541


Direct cost

Thermal plant



Taxes 17,900


Dsitribution system

Electromechanical equipment (Heating) 141,696


Taxes 17,900

Warranty 71,600


Connection system





Indirect cost





Others






Table 10-63– CAPEX [USD] district heating and cooling with chiller and boiler

Item [USD] 2020

Development cost

Land cost 901,648

Engineering 260,754


Direct cost

Thermal plant



Taxes 25,615


Dsitribution system



Piping installation total 1,024,616

Taxes 25,615

Warranty 102,462

Total distribution system 1,438,722

Connection system





Indirect cost





Others






Table 10-64 – CAPEX [USD] district heating with waste heat

Item [USD] 2020

Development cost

Land cost -

Engineering 341,738

Total development cost 341,738

Direct cost

Thermal plant

Thermal equipment -

Building construction -

Taxes -

Total thermal plant -

Distribution system



Taxes 40,638

Warranty 162,551


Connection system





Indirect cost



Insurance and Guarantees -


Others






OPEX

The detail of the OPEX estimate [USD] for each of the options is presented in Table 10-45, Table 10-46, Table 10-47 and Table 10-48.



Item [USD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Electricity - 2,249 2,255 2,241 2,234 2,255 2,243 2,228 2,216 2,195 2,216

Natural Gas - - - - - - - - - - -

Fuel total - 2,249 2,255 2,241 2,234 2,255 2,243 2,228 2,216 2,195 2,216

Water - 107 107 107 107 107 107 107 107 107 107


Overhaul - 58,449 58,449 58,449 58,449 58,449 58,449 58,449 58,449 58,449 58,449

Selling, General and Administrative Expenses - 432 432 432 432 432 432 432 432 432 432

Insurance - 5,266 5,266 5,266 5,266 5,266 5,266 5,266 5,266 5,266 5,266


Item [USD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Electricity 2,203 2,200 2,187 2,204 2,183 2,199 2,205 2,184 2,196 2,187

Natural Gas - - - - - - - - - -

Fuel total 2,203 2,200 2,187 2,204 2,183 2,199 2,205 2,184 2,196 2,187

Water 107 107 107 107 107 107 107 107 107 107


Overhaul 58,449 58,449 58,449 58,449 58,449 58,449 58,449 58,449 58,449 58,449

Selling, General and Administrative Expenses 432 432 432 432 432 432 432 432 432 432

Insurance 5,266 5,266 5,266 5,266 5,266 5,266 5,266 5,266 5,266 5,266


Item [USD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Electricity 2,185 2,179 2,176 2,177 2,198 2,181 2,171 2,157 2,141 2,152

Natural Gas - - - - - - - - - -

Fuel total 2,185 2,179 2,176 2,177 2,198 2,181 2,171 2,157 2,141 2,152

Water 107 107 107 107 107 107 107 107 107 107


Overhaul 58,449 58,449 58,449 58,449 58,449 58,449 58,449 58,449 58,449 58,449

Selling, General and Administrative Expenses 432 432 432 432 432 432 432 432 432 432

Insurance 5,266 5,266 5,266 5,266 5,266 5,266 5,266 5,266 5,266 5,266



Table 10-66 – OPEX [USD] district heating with heat pumps

Item [USD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Electricity - 11,320 11,351 11,284 11,246 11,355 11,293 11,218 11,155 11,051 11,157

Natural Gas - - - - - - - - - - -

Fuel total - 11,320 11,351 11,284 11,246 11,355 11,293 11,218 11,155 11,051 11,157

Water - - - - - - - - - - -


Overhaul - 57,847 57,847 57,847 57,847 57,847 57,847 57,847 57,847 57,847 57,847


Insurance - 5,235 5,235 5,234 5,234 5,235 5,234 5,234 5,234 5,234 5,234


Item [USD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Electricity 11,091 11,075 11,008 11,096 10,990 11,073 11,099 10,994 11,055 11,011

Natural Gas - - - - - - - - - -

Fuel total 11,091 11,075 11,008 11,096 10,990 11,073 11,099 10,994 11,055 11,011

Water - - - - - - - - - -


Overhaul 57,847 57,847 57,847 57,847 57,847 57,847 57,847 57,847 57,847 57,847


Insurance 5,234 5,234 5,234 5,234 5,234 5,234 5,234 5,234 5,234 5,234


Item [USD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Electricity 11,001 10,969 10,956 10,958 11,065 10,982 10,928 10,861 10,779 10,835

Natural Gas - - - - - - - - - -

Fuel total 11,001 10,969 10,956 10,958 11,065 10,982 10,928 10,861 10,779 10,835

Water - - - - - - - - - -


Overhaul 57,847 57,847 57,847 57,847 57,847 57,847 57,847 57,847 57,847 57,847


Insurance 5,234 5,234 5,234 5,234 5,234 5,234 5,234 5,233 5,233 5,233



Table 10-67 – OPEX [USD] district heating and cooling with chiller and boiler

Item [USD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Electricity - 1,625 1,630 1,620 1,615 1,630 1,621 1,611 1,602 1,587 1,602

Natural Gas - 22,388 22,932 21,921 22,011 20,217 20,425 22,492 23,536 22,063 19,971

Fuel total - 24,014 24,562 23,541 23,626 21,847 22,047 24,103 25,138 23,649 21,573

Water - 99 99 99 100 100 101 101 100 100 101


Overhaul - 86,918 86,918 86,918 86,918 86,918 86,918 86,918 86,918 86,918 86,918


Insurance - 7,883 7,884 7,882 7,882 7,878 7,878 7,883 7,886 7,882 7,877


Item [USD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Electricity 1,592 1,590 1,581 1,593 1,578 1,590 1,594 1,579 1,587 1,581

Natural Gas 18,112 19,798 20,572 21,564 21,439 19,698 19,282 20,460 21,586 21,720

Fuel total 19,704 21,388 22,153 23,157 23,017 21,288 20,876 22,039 23,173 23,300

Water 100 100 100 100 100 100 100 100 100 101


Overhaul 86,918 86,918 86,918 86,918 86,918 86,918 86,918 86,918 86,918 86,918


Insurance 7,872 7,876 7,878 7,881 7,880 7,876 7,875 7,878 7,881 7,881


Item [USD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Electricity 1,579 1,575 1,573 1,573 1,589 1,577 1,569 1,559 1,548 1,556

Natural Gas 22,684 23,004 24,885 23,255 22,830 21,960 21,852 23,113 22,658 24,738

Fuel total 24,263 24,579 26,458 24,829 24,419 23,537 23,422 24,673 24,206 26,294

Water 101 101 102 103 102 102 102 102 103 104


Overhaul 86,918 86,918 86,918 86,918 86,918 86,918 86,918 86,918 86,918 86,918


Insurance 7,884 7,884 7,889 7,885 7,884 7,882 7,881 7,885 7,883 7,889



Table 10-68 – OPEX [USD] district heating with waste heat

Item [USD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Electricity - - - - - - - - - - -

Natural Gas - - - - - - - - - - -

Fuel total - - - - - - - - - - -

Water - - - - - - - - - - -


Overhaul - 82,569 82,569 82,569 82,569 82,569 82,569 82,569 82,569 82,569 82,569


Insurance - 7,431 7,431 7,431 7,431 7,431 7,431 7,431 7,431 7,431 7,431


Item [USD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Electricity - - - - - - - - - -

Natural Gas - - - - - - - - - -

Fuel total - - - - - - - - - -

Water - - - - - - - - - -


Overhaul 82,569 82,569 82,569 82,569 82,569 82,569 82,569 82,569 82,569 82,569


Insurance 7,431 7,431 7,431 7,431 7,431 7,431 7,431 7,431 7,431 7,431


Item [USD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Electricity - - - - - - - - - -

Natural Gas - - - - - - - - - -

Fuel total - - - - - - - - - -

Water - - - - - - - - - -


Overhaul 82,569 82,569 82,569 82,569 82,569 82,569 82,569 82,569 82,569 82,569


Insurance 7,431 7,431 7,431 7,431 7,431 7,431 7,431 7,431 7,431 7,431




Item [USD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Opening balance - 1,368,354 1,343,956 1,318,582 1,292,194 1,264,749 1,236,207 1,206,524 1,175,652 1,143,546 1,110,156

Total payment - 79,132 79,132 79,132 79,132 79,132 79,132 79,132 79,132 79,132 79,132



Closing balance - 1,343,956 1,318,582 1,292,194 1,264,749 1,236,207 1,206,524 1,175,652 1,143,546 1,110,156 1,075,430

Item [USD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Opening balance 1,075,430 1,039,316 1,001,756 962,694 922,070 879,821 835,882 790,185 742,660 693,235

Total payment 79,132 79,132 79,132 79,132 79,132 79,132 79,132 79,132 79,132 79,132



Closing balance 1,039,316 1,001,756 962,694 922,070 879,821 835,882 790,185 742,660 693,235 641,832

Item [USD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Opening balance 641,832 588,373 532,776 474,955 414,821 352,282 287,241 219,599 149,251 76,089

Total payment 79,132 79,132 79,132 79,132 79,132 79,132 79,132 79,132 79,132 79,132



Closing balance 588,373 532,776 474,955 414,821 352,282 287,241 219,599 149,251 76,089 -



Item [USD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Opening balance - 1,350,835 1,326,749 1,301,700 1,275,649 1,248,556 1,220,380 1,191,076 1,160,600 1,128,905 1,095,943

Total payment - 78,119 78,119 78,119 78,119 78,119 78,119 78,119 78,119 78,119 78,119



Closing balance - 1,326,749 1,301,700 1,275,649 1,248,556 1,220,380 1,191,076 1,160,600 1,128,905 1,095,943 1,061,661

Item [USD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Opening balance 1,061,661 1,026,009 988,930 950,369 910,265 868,556 825,180 780,068 733,152 684,359

Total payment 78,119 78,119 78,119 78,119 78,119 78,119 78,119 78,119 78,119 78,119



Closing balance 1,026,009 988,930 950,369 910,265 868,556 825,180 780,068 733,152 684,359 633,614

Item [USD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Opening balance 633,614 580,840 525,955 468,874 409,510 347,771 283,563 216,787 147,340 75,114

Total payment 78,119 78,119 78,119 78,119 78,119 78,119 78,119 78,119 78,119 78,119



Closing balance 580,840 525,955 468,874 409,510 347,771 283,563 216,787 147,340 75,114 -


Table 10-71 - Debt service account [USD] district heating and cooling with chiller and boiler

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Opening balance - 1,809,452 1,777,190 1,743,636 1,708,741 1,672,450 1,634,707 1,595,454 1,554,632 1,512,176 1,468,023

Total payment - 104,641 104,641 104,641 104,641 104,641 104,641 104,641 104,641 104,641 104,641



Closing balance - 1,777,190 1,743,636 1,708,741 1,672,450 1,634,707 1,595,454 1,554,632 1,512,176 1,468,023 1,422,103

2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Opening balance 1,422,103 1,374,346 1,324,679 1,273,025 1,219,306 1,163,437 1,105,334 1,044,906 982,062 916,703

Total payment 104,641 104,641 104,641 104,641 104,641 104,641 104,641 104,641 104,641 104,641



Closing balance 1,374,346 1,324,679 1,273,025 1,219,306 1,163,437 1,105,334 1,044,906 982,062 916,703 848,731

2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Opening balance 848,731 778,039 704,520 628,060 548,541 465,842 379,835 290,388 197,362 100,616

Total payment 104,641 104,641 104,641 104,641 104,641 104,641 104,641 104,641 104,641 104,641



Closing balance 778,039 704,520 628,060 548,541 465,842 379,835 290,388 197,362 100,616 -

Item [USD]

Item [USD]

Item [USD]


Table 10-72 - Debt service account [USD] district heating with waste heat

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Opening balance - 1,771,870 1,740,277 1,707,421 1,673,250 1,637,713 1,600,754 1,562,317 1,522,342 1,480,768 1,437,532

Total payment - 102,467 102,467 102,467 102,467 102,467 102,467 102,467 102,467 102,467 102,467



Closing balance - 1,740,277 1,707,421 1,673,250 1,637,713 1,600,754 1,562,317 1,522,342 1,480,768 1,437,532 1,392,566

2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Opening balance 1,392,566 1,345,801 1,297,165 1,246,585 1,193,981 1,139,272 1,082,376 1,023,204 961,664 897,663

Total payment 102,467 102,467 102,467 102,467 102,467 102,467 102,467 102,467 102,467 102,467



Closing balance 1,345,801 1,297,165 1,246,585 1,193,981 1,139,272 1,082,376 1,023,204 961,664 897,663 831,103

2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Opening balance 831,103 761,879 689,887 615,015 537,148 456,167 371,946 284,356 193,263 98,526

Total payment 102,467 102,467 102,467 102,467 102,467 102,467 102,467 102,467 102,467 102,467



Closing balance 761,879 689,887 615,015 537,148 456,167 371,946 284,356 193,263 98,526 -

Item [USD]

Item [USD]

Item [USD]


CASH FLOW STATEMENT


Table 10-55 and Table 10-56. It is considered a free land concession and 50% of the CAPEX

being financed with debt.


Item [MMUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Energy sales - 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22

Fuel cost - (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)

Water - (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)


Insurance - (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Gross profit - 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07


EBITDA - 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07

Depreciation - (0.36) (0.36) (0.36) (0.36) (0.36) (0.36) (0.00) (0.00) (0.00) (0.00)


EBIT - (0.32) (0.32) (0.33) (0.33) (0.33) (0.33) 0.02 0.02 0.02 0.02

Interest - (0.07) (0.07) (0.07) (0.07) (0.07) (0.07) (0.07) (0.06) (0.06) (0.06)

Tax - - - - - - - - (0.00) (0.00) (0.00)

Earnings after interest and tax - (0.40) (0.40) (0.40) (0.40) (0.40) (0.40) (0.04) (0.04) (0.04) (0.04)

Depreciation - 0.36 0.36 0.36 0.36 0.36 0.36 0.00 0.00 0.00 0.00

Investment (1.86) - - - - - - - - - -


Free cash flow (1.86) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04)

Actualized Free cash flow (1.86) (0.04) (0.04) (0.04) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03)

Item [MMUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Energy sales 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22

Fuel cost (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)

Water (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)


Insurance (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Gross profit 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07


EBITDA 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07

Depreciation (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) - - - -


EBIT 0.02 0.01 0.01 0.01 0.01 0.01 0.00 0.00 (0.00) (0.00)

Interest (0.06) (0.06) (0.05) (0.05) (0.05) (0.05) (0.05) (0.04) (0.04) (0.04)

Tax (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.01) (0.01) (0.01) (0.01)

Earnings after interest and tax (0.04) (0.04) (0.04) (0.05) (0.05) (0.05) (0.05) (0.05) (0.05) (0.05)

Depreciation 0.00 0.00 0.00 0.00 0.00 0.00 - - - -

Investment - - - - - - - - - -


Free cash flow (0.04) (0.04) (0.04) (0.05) (0.05) (0.05) (0.05) (0.05) (0.05) (0.05)

Actualized Free cash flow (0.03) (0.03) (0.03) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02)


Table 10-73 – Cash flow statement [MUSD] district cooling with chillers

Item [MMUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Energy sales 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22

Fuel cost (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)

Water (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)


Insurance (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Gross profit 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07


EBITDA 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07

Depreciation - - - - - - - - - -


EBIT (0.01) (0.01) (0.01) (0.02) (0.02) (0.02) (0.03) (0.03) (0.03) (0.04)

Interest (0.03) (0.03) (0.03) (0.03) (0.02) (0.02) (0.02) (0.01) (0.01) (0.00)

Tax (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.02) (0.02)

Earnings after interest and tax (0.05) (0.05) (0.05) (0.05) (0.05) (0.05) (0.06) (0.06) (0.06) (0.06)

Depreciation - - - - - - - - - -

Investment - - - - - - - - - -


Free cash flow (0.05) (0.05) (0.05) (0.05) (0.05) (0.05) (0.06) (0.06) (0.06) (0.06)

Actualized Free cash flow (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02)


Item [MMUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Energy sales - 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36

Fuel cost - (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Water - - - - - - - - - - -


Insurance - (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Gross profit - 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19


EBITDA - 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19

Depreciation - (0.35) (0.35) (0.35) (0.35) (0.35) (0.35) (0.00) (0.00) (0.00) (0.00)


EBIT - (0.20) (0.20) (0.20) (0.20) (0.20) (0.20) 0.15 0.14 0.14 0.14

Interest - (0.07) (0.07) (0.07) (0.07) (0.07) (0.07) (0.06) (0.06) (0.06) (0.06)

Tax - - - - - - - (0.03) (0.03) (0.03) (0.03)


Depreciation - 0.35 0.35 0.35 0.35 0.35 0.35 0.00 0.00 0.00 0.00

Investment (1.84) - - - - - - - - - -


Free cash flow (1.84) 0.08 0.08 0.08 0.08 0.08 0.08 0.05 0.05 0.05 0.05


Item [MMUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Energy sales 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36

Fuel cost (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Water - - - - - - - - - -


Insurance (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Gross profit 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19


EBITDA 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19

Depreciation (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) - - - -


EBIT 0.14 0.14 0.13 0.13 0.13 0.13 0.13 0.12 0.12 0.12

Interest (0.06) (0.06) (0.05) (0.05) (0.05) (0.05) (0.04) (0.04) (0.04) (0.04)

Tax (0.03) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04)


Depreciation 0.00 0.00 0.00 0.00 0.00 0.00 - - - -

Investment - - - - - - - - - -


Free cash flow 0.05 0.05 0.05 0.04 0.04 0.04 0.04 0.04 0.04 0.04



Table 10-74 – Cash flow statement [MUSD] district heating with heat pumps

Item [MMUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Energy sales 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36

Fuel cost (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Water - - - - - - - - - -


Insurance (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Gross profit 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19


EBITDA 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19

Depreciation - - - - - - - - - -


EBIT 0.12 0.11 0.11 0.11 0.10 0.10 0.10 0.09 0.09 0.09

Interest (0.03) (0.03) (0.03) (0.03) (0.02) (0.02) (0.02) (0.01) (0.01) (0.00)

Tax (0.04) (0.04) (0.04) (0.04) (0.04) (0.05) (0.05) (0.05) (0.05) (0.05)


Depreciation - - - - - - - - - -

Investment - - - - - - - - - -


Free cash flow 0.04 0.04 0.04 0.04 0.04 0.04 0.03 0.03 0.03 0.03



Item [MMUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Energy sales - 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54

Fuel cost - (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.03) (0.02)

Water - (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)


Insurance - (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02)

Gross profit - 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29


EBITDA - 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29

Depreciation - (0.52) (0.52) (0.52) (0.52) (0.52) (0.52) (0.00) (0.00) (0.00) (0.00)


EBIT - (0.27) (0.27) (0.28) (0.28) (0.28) (0.28) 0.23 0.23 0.22 0.22

Interest - (0.11) (0.11) (0.10) (0.10) (0.10) (0.10) (0.09) (0.09) (0.09) (0.09)

Tax - - - - - - - (0.05) (0.05) (0.05) (0.05)


Depreciation - 0.52 0.52 0.52 0.52 0.52 0.52 0.00 0.00 0.00 0.00

Investment (2.69) - - - - - - - - - -


Free cash flow (2.69) 0.14 0.14 0.14 0.14 0.14 0.14 0.08 0.08 0.08 0.08


Item [MMUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Energy sales 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54

Fuel cost (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02)

Water (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)


Insurance (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02)

Gross profit 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29


EBITDA 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29

Depreciation (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) - - - -


EBIT 0.22 0.22 0.21 0.21 0.21 0.20 0.20 0.20 0.19 0.19

Interest (0.08) (0.08) (0.08) (0.08) (0.07) (0.07) (0.07) (0.06) (0.06) (0.05)

Tax (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06)


Depreciation 0.00 0.00 0.00 0.00 0.00 0.00 - - - -

Investment - - - - - - - - - -


Free cash flow 0.08 0.08 0.08 0.08 0.08 0.08 0.07 0.07 0.07 0.07



Table 10-75 – Cash flow statement [MUSD] district heating and cooling with chiller and boiler

Item [MMUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Energy sales 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54

Fuel cost (0.02) (0.02) (0.02) (0.03) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02)

Water (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)


Insurance (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02)

Gross profit 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29


EBITDA 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29

Depreciation - - - - - - - - - -


EBIT 0.19 0.18 0.18 0.17 0.17 0.16 0.16 0.15 0.15 0.14

Interest (0.05) (0.05) (0.04) (0.04) (0.03) (0.03) (0.02) (0.02) (0.01) (0.01)

Tax (0.06) (0.07) (0.07) (0.07) (0.07) (0.07) (0.07) (0.07) (0.08) (0.08)


Depreciation - - - - - - - - - -

Investment - - - - - - - - - -


Free cash flow 0.07 0.07 0.07 0.07 0.07 0.06 0.06 0.06 0.06 0.06



Item [MMUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Energy sales - 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43

Fuel cost - - - - - - - - - - -

Water - - - - - - - - - - -


Insurance - (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Gross profit - 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27


EBITDA - 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27

Depreciation - (0.37) (0.37) (0.37) (0.37) (0.37) (0.37) - - - -


EBIT - (0.13) (0.14) (0.14) (0.14) (0.14) (0.14) 0.22 0.22 0.22 0.22

Interest - (0.08) (0.07) (0.07) (0.07) (0.07) (0.07) (0.07) (0.06) (0.06) (0.06)

Tax - - - - - - - (0.05) (0.05) (0.06) (0.06)


Depreciation - 0.37 0.37 0.37 0.37 0.37 0.37 - - - -

Investment (1.88) - - - - - - - - - -


Free cash flow (1.88) 0.16 0.16 0.16 0.16 0.16 0.16 0.10 0.10 0.10 0.10


Item [MMUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Energy sales 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43

Fuel cost - - - - - - - - - -

Water - - - - - - - - - -


Insurance (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Gross profit 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27


EBITDA 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27

Depreciation - - - - - - - - - -


EBIT 0.22 0.22 0.21 0.21 0.21 0.21 0.20 0.20 0.20 0.20

Interest (0.06) (0.06) (0.06) (0.05) (0.05) (0.05) (0.05) (0.04) (0.04) (0.04)

Tax (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06)


Depreciation - - - - - - - - - -

Investment - - - - - - - - - -


Free cash flow 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10



Table 10-76 – Cash flow statement [MUSD] district heating with waste heat

Item [MMUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Energy sales 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43

Fuel cost - - - - - - - - - -

Water - - - - - - - - - -


Insurance (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Gross profit 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27


EBITDA 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27

Depreciation - - - - - - - - - -


EBIT 0.19 0.19 0.19 0.18 0.18 0.18 0.17 0.17 0.17 0.16

Interest (0.04) (0.03) (0.03) (0.03) (0.02) (0.02) (0.02) (0.01) (0.01) (0.00)

Tax (0.06) (0.06) (0.06) (0.06) (0.07) (0.07) (0.07) (0.07) (0.07) (0.07)


Depreciation - - - - - - - - - -

Investment - - - - - - - - - -


Free cash flow 0.10 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09





Table 10-58, Table 10-59 and Table 10-60. It is considered a free land concession and 50% of

the CAPEX being financed with debt.


Item [MMUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Operating revenues

Energy sales - 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22

Total revenue - 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22

Operating costs

Fuel - 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Water - 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Operation and Maintenance - 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02

Overhaul - 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12

Selling, General and Administrative Expenses - 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Insurance - 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

Total operating costs - 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15

Profit before Interest and Taxes - 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07

Interest expense - 0.07 0.07 0.07 0.07 0.07 0.07 0.06 0.06 0.06 0.06

Profit before taxes - (0.00) (0.00) (0.00) 0.00 0.00 0.00 0.01 0.01 0.01 0.01

Income taxes - - - - - - - 0.00 0.00 0.00 0.00

Net earnings - (0.00) (0.00) (0.00) 0.00 0.00 0.00 0.00 0.01 0.01 0.01

Item [MMUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Operating revenues

Energy sales 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22

Total revenue 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22

Operating costs

Fuel 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Water 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Overhaul 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12


Insurance 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01





Income taxes 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.01 0.01 0.01

Net earnings 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.02 0.02 0.02



Item [MMUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Operating revenues

Energy sales 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22

Total revenue 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22

Operating costs

Fuel 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Water 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Overhaul 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12


Insurance 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01





Income taxes 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.02 0.02

Net earnings 0.02 0.02 0.03 0.03 0.03 0.03 0.04 0.04 0.04 0.04


Item [MMUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Operating revenues

Energy sales - 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35

Total revenue - 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35

Operating costs

Fuel - 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

Water - - - - - - - - - - -


Overhaul - 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12


Insurance - 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01




Profit before taxes - 0.11 0.11 0.12 0.12 0.12 0.12 0.12 0.12 0.13 0.13

Income taxes - - - - - - - 0.03 0.03 0.03 0.03

Net earnings - 0.11 0.11 0.12 0.12 0.12 0.12 0.09 0.09 0.09 0.09

Item [MMUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Operating revenues

Energy sales 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36

Total revenue 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36

Operating costs

Fuel 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

Water - - - - - - - - - -


Overhaul 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12


Insurance 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01





Income taxes 0.03 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04

Net earnings 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.11 0.11 0.11



Item [MMUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Operating revenues

Energy sales 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36

Total revenue 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36

Operating costs

Fuel 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

Water - - - - - - - - - -


Overhaul 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12


Insurance 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01





Income taxes 0.04 0.04 0.04 0.04 0.04 0.05 0.05 0.05 0.05 0.05

Net earnings 0.11 0.11 0.12 0.12 0.12 0.12 0.13 0.13 0.13 0.13


Item [MMUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Operating revenues

Energy sales - 0.54 0.54 0.53 0.54 0.54 0.53 0.53 0.53 0.53 0.53

Total revenue - 0.54 0.54 0.53 0.54 0.54 0.53 0.53 0.53 0.53 0.53

Operating costs

Fuel - 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02

Water - 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Overhaul - 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17


Insurance - 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02





Income taxes - - - - - - - 0.05 0.05 0.05 0.05

Net earnings - 0.18 0.18 0.19 0.19 0.19 0.19 0.14 0.14 0.15 0.15

Item [MMUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Operating revenues

Energy sales 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54

Total revenue 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54

Operating costs

Fuel 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02

Water 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Overhaul 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17


Insurance 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02





Income taxes 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06

Net earnings 0.15 0.15 0.16 0.16 0.16 0.16 0.16 0.17 0.17 0.17


Table 10-79 - Profit and Loss Statement [MUSD] district heating and cooling with chiller and boiler

Item [MMUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Operating revenues

Energy sales 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54

Total revenue 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54

Operating costs

Fuel 0.02 0.02 0.02 0.03 0.02 0.02 0.02 0.02 0.02 0.02

Water 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Overhaul 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17


Insurance 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02





Income taxes 0.06 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.08 0.08

Net earnings 0.18 0.18 0.18 0.18 0.19 0.19 0.20 0.20 0.20 0.21


Item [MMUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Operating revenues

Energy sales - 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43

Total revenue - 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43

Operating costs

Fuel - - - - - - - - - - -

Water - - - - - - - - - - -


Overhaul - 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12


Insurance - 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01





Income taxes - - - - - - - 0.05 0.05 0.06 0.06

Net earnings - 0.19 0.19 0.19 0.20 0.20 0.20 0.15 0.15 0.15 0.15

Item [MMUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Operating revenues

Energy sales 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43

Total revenue 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43

Operating costs

Fuel - - - - - - - - - -

Water - - - - - - - - - -


Overhaul 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12


Insurance 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01





Income taxes 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06

Net earnings 0.15 0.15 0.15 0.16 0.16 0.16 0.16 0.16 0.16 0.17


Table 10-80 - Profit and Loss Statement [MUSD] district heating with waste heat

Item [MMUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Operating revenues

Energy sales 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43

Total revenue 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43

Operating costs

Fuel - - - - - - - - - -

Water - - - - - - - - - -


Overhaul 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12


Insurance 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01





Income taxes 0.06 0.06 0.06 0.06 0.07 0.07 0.07 0.07 0.07 0.07

Net earnings 0.17 0.17 0.17 0.18 0.18 0.18 0.18 0.19 0.19 0.19

P012616-2-GE-INF-00001 2 APPENDICES

10.4.3. Independencia

CAPEX


10-42, Table 10-43 and

Table 10-44.

Item [USD] 2020

Development cost

Land cost 8.241.335

Engineering 414.620


Direct cost

Thermal plant



Taxes 33.639


Distribution system




Taxes 33.639

Warranty -


Connection system





Indirect cost





Others







Item [USD] 2020

Development cost

Land cost 8.241.335

Engineering 414.620


Direct cost

Thermal plant



Taxes 33.639


Distribution system




Taxes 33.639

Warranty -


Connection system





Indirect cost





Others







Item [USD] 2020

Development cost

Land cost 4,778,922

Engineering 966,570


Direct cost

Thermal plant

Thermal equipment 1,087,051


Taxes 78,244

Total thermal plant 1,884,140

Distribution system



Taxes 78,244

Warranty 312,974


Connection system





Indirect cost





Others



Total others 1,933,140




Item [USD] 2020

Development cost

Land cost 4,778,922

Engineering 674,648


Direct cost

Thermal plant



Taxes 60,559


Distribution system



Taxes 60,559

Warranty 242,238


Connection system




Total direct cost

Indirect cost





Others






Table 10-84 – CAPEX [USD] district heating and cooling with heat pumps and gas boiler

Item [USD]

Development cost

Land cost 4,778,922

Engineering 1,219,011


Direct cost

Thermal plant



Taxes 116,771


Distribution system




Taxes 116,771

Warranty 467,083


Connection system



Total connection system 1,082,331


Indirect cost





Others

Utilities and GG Contractors 1,219,011

Contingencies 1,219,011




Table 10-85 – CAPEX [USD] district heating and cooling with trigeneration

Item [USD]

Development cost

Land cost 4,778,922

Engineering 1,396,619


Direct cost

Thermal plant

Thermal equipment 1,609,740


Taxes 116,771


Distribution system




Taxes 116,771

Warranty 467,083


Connection system



Total connection system 1,082,331


Indirect cost




Total indirect cost 1,262,058

Others


Contingencies 1,396,619




OPEX




Item [USD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Electricity - 304,841 302,403 301,012 298,092 299,791 300,930 299,516 299,516 301,163 301,284

Natural Gas - - - - - - - - - - -

Fuel total - 304,841 302,403 301,012 298,092 299,791 300,930 299,516 299,516 301,163 301,284

Water - 20,140 20,022 20,022 20,022 20,022 20,022 20,022 20,022 20,022 20,022


Overhaul - 336,019 336,019 336,019 336,019 336,019 336,019 336,019 336,019 336,019 336,019


Insurance - 31,054 31,048 31,044 31,037 31,041 31,044 31,041 31,041 31,045 31,045


Item [USD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Electricity 300,832 299,568 299,868 302,237 302,751 302,811 299,783 299,123 297,269 299,885

Natural Gas - - - - - - - - - -

Fuel total 300,832 299,568 299,868 302,237 302,751 302,811 299,783 299,123 297,269 299,885

Water 20,022 20,022 20,022 20,022 20,022 20,022 20,022 20,022 20,022 20,022


Overhaul 336,019 336,019 336,019 336,019 336,019 336,019 336,019 336,019 336,019 336,019


Insurance 31,044 31,041 31,041 31,047 31,049 31,049 31,041 31,040 31,035 31,041


Item [USD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Electricity 291,134 289,358 291,210 290,045 290,190 289,987 287,406 287,147 285,913 287,314

Natural Gas - - - - - - - - - -

Fuel total 291,134 289,358 291,210 290,045 290,190 289,987 287,406 287,147 285,913 287,314

Water 20,022 20,022 20,022 20,022 20,022 20,022 20,022 20,022 20,022 20,022


Overhaul 327,218 327,218 327,218 327,218 327,218 327,218 327,218 327,218 327,218 327,218


Insurance 30,228 30,223 30,228 30,225 30,225 30,225 30,218 30,218 30,214 30,218



Table 10-87 - OPEX [USD] district heating with heat pumps

Item [USD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Electricity - 202,919 201,295 200,369 198,426 199,557 200,315 199,374 199,374 200,470 200,550

Natural Gas - - - - - - - - - - -

Fuel total - 202,919 201,295 200,369 198,426 199,557 200,315 199,374 199,374 200,470 200,550

Water - - - - - - - - - - -


Overhaul - 210,833 210,833 210,833 210,833 210,833 210,833 210,833 210,833 210,833 210,833


Insurance - 19,482 19,478 19,476 19,471 19,474 19,476 19,473 19,473 19,476 19,476


Item [USD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Electricity 200,250 199,408 199,608 201,185 201,527 201,567 199,551 199,112 197,878 199,619

Natural Gas - - - - - - - - - -

Fuel total 200,250 199,408 199,608 201,185 201,527 201,567 199,551 199,112 197,878 199,619

Water - - - - - - - - - -


Overhaul 210,833 210,833 210,833 210,833 210,833 210,833 210,833 210,833 210,833 210,833


Insurance 19,476 19,473 19,474 19,478 19,479 19,479 19,474 19,473 19,470 19,474


Item [USD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Electricity 193,794 192,612 193,845 193,069 193,166 193,031 191,313 191,140 190,319 191,251

Natural Gas - - - - - - - - - -

Fuel total 193,794 192,612 193,845 193,069 193,166 193,031 191,313 191,140 190,319 191,251

Water - - - - - - - - - -


Overhaul 197,897 197,897 197,897 197,897 197,897 197,897 197,897 197,897 197,897 197,897


Insurance 18,295 18,292 18,295 18,293 18,294 18,293 18,289 18,289 18,286 18,289



Table 10-88 – OPEX [USD] district heating and cooling with heat pumps and gas boiler

Item [USD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Electricity - 439,705 436,187 434,181 429,969 432,420 434,063 432,023 432,023 434,400 434,573

Natural Gas - 1,603 1,594 1,588 1,743 1,673 1,831 1,701 1,737 1,577 1,575

Fuel total - 441,308 437,782 435,769 431,712 434,093 435,894 433,724 433,761 435,977 436,148

Water - 18,393 18,310 18,438 18,606 18,732 18,661 18,796 18,707 18,859 18,981


Overhaul - 426,588 426,588 426,588 426,588 426,588 426,588 426,588 426,588 426,588 426,588


Insurance - 39,542 39,533 39,528 39,519 39,525 39,529 39,524 39,524 39,530 39,531

Total operating expenses - 1,131,164 1,127,546 1,125,657 1,121,758 1,124,272 1,126,006 1,123,965 1,123,913 1,126,287 1,126,581

Item [USD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Electricity 433,921 432,099 432,531 435,948 436,689 436,776 432,409 431,457 428,782 432,556

Natural Gas 1,535 1,508 1,371 1,286 1,237 1,263 1,391 1,303 1,201 1,192

Fuel total 435,457 433,607 433,902 437,234 437,926 438,040 433,800 432,761 429,984 433,747

Water 19,008 19,035 19,092 19,157 19,114 19,061 19,034 19,168 19,223 19,383


Overhaul 426,588 426,588 426,588 426,588 426,588 426,588 426,588 426,588 426,588 426,588


Insurance 39,529 39,524 39,525 39,534 39,535 39,536 39,525 39,523 39,516 39,526

Total operating expenses 1,125,915 1,124,087 1,124,440 1,127,846 1,128,497 1,128,558 1,124,280 1,123,372 1,120,644 1,124,577

Item [USD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Electricity 419,933 417,372 420,043 418,363 418,572 418,279 414,556 414,183 412,402 414,423

Natural Gas 1,765 1,725 1,647 1,806 1,666 1,749 1,580 1,556 1,510 1,648

Fuel total 421,698 419,097 421,690 420,169 420,238 420,028 416,137 415,739 413,912 416,071

Water 19,456 19,400 19,522 19,479 19,415 19,494 19,639 19,696 19,768 19,790


Overhaul 392,744 392,744 392,744 392,744 392,744 392,744 392,744 392,744 392,744 392,744


Insurance 36,450 36,443 36,450 36,446 36,446 36,446 36,436 36,436 36,431 36,437



Table 10-89 – OPEX [USD] district heating and cooling with trigeneration

Item [USD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Electricity - 219,973 218,213 217,209 215,102 216,328 217,150 216,130 216,130 217,319 217,405

Natural Gas - 13,837 13,764 13,711 15,047 14,442 15,807 14,683 15,000 13,616 13,594

Fuel total - 233,810 231,977 230,921 230,149 230,770 232,957 230,813 231,130 230,934 230,999

Water - 13,193 13,134 13,226 13,346 13,437 13,386 13,482 13,419 13,527 13,615


Overhaul - 503,010 503,010 503,010 503,010 503,010 503,010 503,010 503,010 503,010 503,010


Insurance - 45,888 45,884 45,881 45,880 45,881 45,887 45,882 45,882 45,882 45,882

Total operating expenses - 1,039,446 1,037,549 1,036,582 1,035,930 1,036,643 1,038,785 1,036,731 1,036,986 1,036,898 1,037,052

Item [USD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Electricity 217,079 216,168 216,384 218,093 218,464 218,508 216,323 215,847 214,508 216,396

Natural Gas 13,255 13,018 11,837 11,106 10,676 10,907 12,007 11,251 10,370 10,288

Fuel total 230,335 229,186 228,221 229,199 229,140 229,414 228,330 227,097 224,878 226,684

Water 13,634 13,653 13,694 13,741 13,711 13,672 13,653 13,749 13,789 13,903


Overhaul 503,010 503,010 503,010 503,010 503,010 503,010 503,010 503,010 503,010 503,010


Insurance 45,881 45,878 45,876 45,878 45,878 45,879 45,876 45,873 45,868 45,872


Item [USD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Electricity 210,081 208,800 210,136 209,296 209,400 209,254 207,391 207,205 206,314 207,325

Natural Gas 15,235 14,894 14,218 15,593 14,386 15,102 13,645 13,431 13,036 14,229

Fuel total 225,317 223,694 224,354 224,888 223,786 224,356 221,036 220,635 219,350 221,553

Water 13,956 13,915 14,003 13,972 13,926 13,983 14,087 14,128 14,180 14,195


Overhaul 469,167 469,167 469,167 469,167 469,167 469,167 469,167 469,167 469,167 469,167


Insurance 42,823 42,819 42,821 42,822 42,819 42,821 42,813 42,812 42,809 42,814




The detail of Debt Service Account [USD] for each of the alternatives is presented in Table 10-490,

Table 10-50,Table 10-51 and Table 10-93. The debt considers 50% of the total CAPEX, with a



Table 10-90 - Debt Service Account [USD] district cooling with chillers

Item [USD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Opening balance - 7,157,593 7,029,973 6,897,247 6,759,213 6,615,657 6,466,359 6,311,089 6,149,608 5,981,668 5,807,011

Total payment - 413,924 413,924 413,924 413,924 413,924 413,924 413,924 413,924 413,924 413,924



Closing balance - 7,029,973 6,897,247 6,759,213 6,615,657 6,466,359 6,311,089 6,149,608 5,981,668 5,807,011 5,625,367

Item [USD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Opening balance 5,625,367 5,436,457 5,239,991 5,035,666 4,823,169 4,602,171 4,372,334 4,133,303 3,884,710 3,626,174

Total payment 413,924 413,924 413,924 413,924 413,924 413,924 413,924 413,924 413,924 413,924



Closing balance 5,436,457 5,239,991 5,035,666 4,823,169 4,602,171 4,372,334 4,133,303 3,884,710 3,626,174 3,357,297

Item [USD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Opening balance 3,357,297 3,077,665 2,786,847 2,484,396 2,169,848 1,842,718 1,502,502 1,148,678 780,700 398,004

Total payment 413,924 413,924 413,924 413,924 413,924 413,924 413,924 413,924 413,924 413,924



Closing balance 3,077,665 2,786,847 2,484,396 2,169,848 1,842,718 1,502,502 1,148,678 780,700 398,004 -


Table 10-91 - Debt Service Account [USD] district heating with heat pumps

Item [USD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Opening balance - 5,610,712 5,510,672 5,406,631 5,298,428 5,185,897 5,068,865 4,947,152 4,820,570 4,688,925 4,552,014

Total payment - 324,468 324,468 324,468 324,468 324,468 324,468 324,468 324,468 324,468 324,468



Closing balance - 5,510,672 5,406,631 5,298,428 5,185,897 5,068,865 4,947,152 4,820,570 4,688,925 4,552,014 4,409,626

Item [USD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Opening balance 4,409,626 4,261,543 4,107,537 3,947,370 3,780,797 3,607,561 3,427,395 3,240,023 3,045,156 2,842,494

Total payment 324,468 324,468 324,468 324,468 324,468 324,468 324,468 324,468 324,468 324,468



Closing balance 4,261,543 4,107,537 3,947,370 3,780,797 3,607,561 3,427,395 3,240,023 3,045,156 2,842,494 2,631,726

Item [USD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Opening balance 2,631,726 2,412,527 2,184,560 1,947,475 1,700,906 1,444,474 1,177,785 900,428 611,977 311,988

Total payment 324,468 324,468 324,468 324,468 324,468 324,468 324,468 324,468 324,468 324,468



Closing balance 2,412,527 2,184,560 1,947,475 1,700,906 1,444,474 1,177,785 900,428 611,977 311,988 -


Table 10-92 - Debt Service Account [USD] district heating and cooling with heat pumps and gas boiler

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Opening balance - 8,436,641 8,286,215 8,129,772 7,967,071 7,797,862 7,621,885 7,438,868 7,248,531 7,050,581 6,844,712

Total payment - 487,892 487,892 487,892 487,892 487,892 487,892 487,892 487,892 487,892 487,892



Closing balance - 8,286,215 8,129,772 7,967,071 7,797,862 7,621,885 7,438,868 7,248,531 7,050,581 6,844,712 6,630,609

2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Opening balance 6,630,609 6,407,941 6,176,367 5,935,530 5,685,059 5,424,570 5,153,661 4,871,916 4,578,901 4,274,165

Total payment 487,892 487,892 487,892 487,892 487,892 487,892 487,892 487,892 487,892 487,892



Closing balance 6,407,941 6,176,367 5,935,530 5,685,059 5,424,570 5,153,661 4,871,916 4,578,901 4,274,165 3,957,240

2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Opening balance 3,957,240 3,627,637 3,284,851 2,928,353 2,557,596 2,172,008 1,770,996 1,353,944 920,210 469,127

Total payment 487,892 487,892 487,892 487,892 487,892 487,892 487,892 487,892 487,892 487,892



Closing balance 3,627,637 3,284,851 2,928,353 2,557,596 2,172,008 1,770,996 1,353,944 920,210 469,127 -

Item [USD]

Item [USD]

Item [USD]


Table 10-93 - Debt Service Account [USD] district heating and cooling with trigeneration

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Opening balance - 9,443,082 9,274,711 9,099,605 8,917,495 8,728,101 8,531,130 8,326,281 8,113,238 7,891,673 7,661,246

Total payment - 546,094 546,094 546,094 546,094 546,094 546,094 546,094 546,094 546,094 546,094



Closing balance - 9,274,711 9,099,605 8,917,495 8,728,101 8,531,130 8,326,281 8,113,238 7,891,673 7,661,246 7,421,601

2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Opening balance 7,421,601 7,172,371 6,913,171 6,643,604 6,363,253 6,071,689 5,768,462 5,453,106 5,125,136 4,784,047

Total payment 546,094 546,094 546,094 546,094 546,094 546,094 546,094 546,094 546,094 546,094



Closing balance 7,172,371 6,913,171 6,643,604 6,363,253 6,071,689 5,768,462 5,453,106 5,125,136 4,784,047 4,429,315

2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Opening balance 4,429,315 4,060,393 3,676,714 3,277,688 2,862,702 2,431,115 1,982,265 1,515,462 1,029,986 525,091

Total payment 546,094 546,094 546,094 546,094 546,094 546,094 546,094 546,094 546,094 546,094



Closing balance 4,060,393 3,676,714 3,277,688 2,862,702 2,431,115 1,982,265 1,515,462 1,029,986 525,091 -

Item [USD]

Item [USD]

Item [USD]


CASH FLOW STATEMENT


Table 10-55 and Table 10-976 .


Item [MUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Energy sales - 1.68 1.68 1.68 1.68 1.67 1.67 1.67 1.67 1.67 1.67

Fuel cost - (0.32) (0.32) (0.32) (0.32) (0.32) (0.32) (0.32) (0.32) (0.32) (0.32)

Water - (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02)


Insurance - (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03)

Gross profit - 0.88 0.88 0.88 0.88 0.88 0.88 0.88 0.88 0.88 0.88


EBITDA - 0.81 0.81 0.81 0.81 0.81 0.81 0.81 0.81 0.81 0.81

Depreciation - (0.94) (0.94) (0.94) (0.94) (0.94) (0.94) (0.04) (0.04) (0.04) (0.04)


EBIT - (0.42) (0.42) (0.41) (0.41) (0.40) (0.40) 0.50 0.51 0.52 0.52

Interest - (0.13) (0.14) (0.14) (0.15) (0.15) (0.16) (0.17) (0.17) (0.18) (0.19)

Tax - - - - - - - (0.17) (0.17) (0.16) (0.16)


Depreciation - 0.94 0.94 0.94 0.94 0.94 0.94 0.04 0.04 0.04 0.04

Investment (7.38) - - - - - - - - - -


Free cash flow (7.38) 0.38 0.38 0.38 0.38 0.38 0.38 0.22 0.22 0.22 0.22


Item [MUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Energy sales 1.66 1.66 1.65 1.66 1.66 1.65 1.66 1.66 1.66 1.66

Fuel cost (0.31) (0.31) (0.31) (0.31) (0.31) (0.31) (0.31) (0.31) (0.32) (0.31)

Water (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02)


Insurance (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03)

Gross profit 0.89 0.89 0.89 0.89 0.89 0.89 0.89 0.89 0.89 0.89


EBITDA 0.82 0.82 0.82 0.82 0.82 0.82 0.82 0.82 0.82 0.82

Depreciation (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) - - - -


EBIT 0.54 0.55 0.56 0.57 0.58 0.58 0.64 0.65 0.66 0.67

Interest (0.19) (0.20) (0.21) (0.21) (0.22) (0.23) (0.24) (0.25) (0.26) (0.27)

Tax (0.16) (0.16) (0.16) (0.16) (0.15) (0.15) (0.16) (0.16) (0.15) (0.15)


Depreciation 0.04 0.04 0.04 0.04 0.04 0.04 - - - -

Investment - - - - - - - - - -


Free cash flow 0.23 0.24 0.24 0.24 0.24 0.25 0.24 0.24 0.24 0.24



Table 10-94 - Cash Flow Statement [MUSD] district cooling with chillers

Item [MUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Energy sales 1.66 1.66 1.65 1.65 1.65 1.65 1.65 1.65 1.65 1.65

Fuel cost (0.31) (0.31) (0.31) (0.31) (0.31) (0.31) (0.31) (0.31) (0.31) (0.31)

Water (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02)


Insurance (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03)

Gross profit 0.89 0.89 0.89 0.89 0.89 0.89 0.89 0.89 0.89 0.89


EBITDA 0.82 0.82 0.82 0.82 0.82 0.82 0.82 0.82 0.82 0.82

Depreciation - - - - - - - - - -


EBIT 0.68 0.69 0.70 0.71 0.73 0.74 0.75 0.77 0.78 0.80

Interest (0.28) (0.29) (0.31) (0.32) (0.33) (0.34) (0.36) (0.37) (0.39) (0.40)

Tax (0.15) (0.15) (0.14) (0.14) (0.14) (0.13) (0.13) (0.13) (0.12) (0.12)


Depreciation - - - - - - - - - -

Investment - - - - - - - - - -


Free cash flow 0.25 0.25 0.25 0.26 0.26 0.26 0.27 0.27 0.28 0.28



Item [MUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Energy sales - 1.08 1.08 1.07 1.08 1.07 1.07 1.07 1.07 1.07 1.07

Fuel cost - (0.20) (0.20) (0.20) (0.20) (0.20) (0.20) (0.20) (0.20) (0.20) (0.20)

Water - - - - - - - - - - -


Insurance - (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02)

Gross profit - 0.61 0.61 0.61 0.61 0.61 0.61 0.61 0.61 0.61 0.61


EBITDA - 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58

Depreciation - (0.58) (0.58) (0.58) (0.58) (0.58) (0.58) (0.01) (0.01) (0.01) (0.01)


EBIT - (0.22) (0.21) (0.21) (0.20) (0.20) (0.20) 0.38 0.39 0.39 0.40

Interest - (0.09) (0.10) (0.10) (0.11) (0.11) (0.11) (0.12) (0.12) (0.13) (0.13)

Tax - - - - - - - (0.12) (0.12) (0.12) (0.12)


Depreciation - 0.58 0.58 0.58 0.58 0.58 0.58 0.01 0.01 0.01 0.01

Investment (5.28) - - - - - - - - - -


Free cash flow (5.28) 0.27 0.27 0.27 0.27 0.27 0.27 0.15 0.15 0.16 0.16


Item [MUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Energy sales 1.06 1.05 1.05 1.06 1.06 1.05 1.05 1.06 1.06 1.06

Fuel cost (0.20) (0.19) (0.19) (0.20) (0.19) (0.19) (0.19) (0.20) (0.20) (0.20)

Water - - - - - - - - - -


Insurance (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02)

Gross profit 0.61 0.61 0.61 0.61 0.61 0.61 0.61 0.61 0.61 0.61


EBITDA 0.57 0.57 0.57 0.57 0.57 0.57 0.57 0.57 0.57 0.57

Depreciation (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) - - - -


EBIT 0.40 0.41 0.41 0.42 0.43 0.43 0.45 0.45 0.46 0.47

Interest (0.14) (0.14) (0.15) (0.15) (0.16) (0.17) (0.17) (0.18) (0.19) (0.20)

Tax (0.12) (0.11) (0.11) (0.11) (0.11) (0.11) (0.11) (0.11) (0.10) (0.10)


Depreciation 0.01 0.01 0.01 0.01 0.01 0.01 - - - -

Investment - - - - - - - - - -


Free cash flow 0.16 0.16 0.16 0.16 0.16 0.17 0.17 0.17 0.17 0.17




Item [MUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Energy sales 1.06 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05

Fuel cost (0.20) (0.19) (0.19) (0.19) (0.19) (0.19) (0.19) (0.19) (0.19) (0.19)

Water - - - - - - - - - -


Insurance (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02)

Gross profit 0.61 0.61 0.61 0.61 0.61 0.61 0.61 0.61 0.61 0.61


EBITDA 0.57 0.57 0.57 0.57 0.57 0.57 0.57 0.57 0.57 0.57

Depreciation - - - - - - - - - -


EBIT 0.48 0.49 0.49 0.50 0.51 0.52 0.53 0.54 0.55 0.56

Interest (0.20) (0.21) (0.22) (0.23) (0.24) (0.25) (0.26) (0.27) (0.28) (0.29)

Tax (0.10) (0.10) (0.10) (0.09) (0.09) (0.09) (0.09) (0.08) (0.08) (0.08)


Depreciation - - - - - - - - - -

Investment - - - - - - - - - -


Free cash flow 0.17 0.18 0.18 0.18 0.18 0.19 0.19 0.19 0.19 0.20



Item [MUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Energy sales - 1.50 2.12 2.12 2.12 2.12 2.12 2.12 2.12 2.12 2.12

Fuel cost - (0.44) (0.44) (0.44) (0.44) (0.44) (0.43) (0.43) (0.43) (0.43) (0.43)

Water - (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02)


Insurance - (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04)

Gross profit - 0.51 1.14 1.14 1.14 1.14 1.14 1.14 1.14 1.14 1.14


EBITDA - 0.41 1.04 1.04 1.04 1.04 1.04 1.04 1.04 1.04 1.04

Depreciation - (1.13) (1.13) (1.13) (1.13) (1.13) (1.13) (0.04) (0.04) (0.04) (0.04)


EBIT - (1.06) (0.42) (0.42) (0.41) (0.40) (0.40) 0.71 0.72 0.72 0.73

Interest - (0.15) (0.15) (0.16) (0.17) (0.17) (0.18) (0.19) (0.20) (0.20) (0.21)

Tax - - - - - - - (0.22) (0.22) (0.22) (0.21)


Depreciation - 1.13 1.13 1.13 1.13 1.13 1.13 0.04 0.04 0.04 0.04

Investment (8.34) - - - - - - - - - -


Free cash flow (8.34) (0.07) 0.56 0.56 0.56 0.56 0.56 0.34 0.34 0.34 0.34

Actualized Free cash flow (8.34) (0.07) 0.51 0.49 0.47 0.45 0.43 0.25 0.24 0.23 0.22

Item [MUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Energy sales 2.07 2.07 2.07 2.07 2.07 2.06 2.07 2.07 2.07 2.07

Fuel cost (0.42) (0.42) (0.42) (0.43) (0.42) (0.42) (0.42) (0.43) (0.43) (0.42)

Water (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02)


Insurance (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04)

Gross profit 1.12 1.12 1.12 1.12 1.12 1.12 1.12 1.12 1.12 1.12


EBITDA 1.01 1.01 1.01 1.01 1.01 1.01 1.01 1.01 1.01 1.01

Depreciation (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) - - - -


EBIT 0.72 0.73 0.74 0.75 0.76 0.77 0.81 0.82 0.84 0.85

Interest (0.22) (0.22) (0.23) (0.24) (0.25) (0.26) (0.27) (0.28) (0.30) (0.31)

Tax (0.21) (0.20) (0.20) (0.20) (0.20) (0.19) (0.20) (0.20) (0.19) (0.19)


Depreciation 0.04 0.04 0.04 0.04 0.04 0.04 - - - -

Investment - - - - - - - - - -


Free cash flow 0.33 0.34 0.34 0.34 0.34 0.35 0.34 0.34 0.35 0.35



Table 10-96 - Cash Flow Statement [MUSD] district heating and cooling with trigeneration

Item [MUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Energy sales 2.07 2.07 2.07 2.06 2.06 2.06 2.06 2.06 2.06 2.06

Fuel cost (0.43) (0.42) (0.42) (0.42) (0.42) (0.42) (0.42) (0.42) (0.42) (0.41)

Water (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02)


Insurance (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04)

Gross profit 1.12 1.12 1.12 1.12 1.12 1.12 1.12 1.12 1.12 1.12


EBITDA 1.01 1.01 1.01 1.01 1.01 1.01 1.01 1.01 1.01 1.01

Depreciation - - - - - - - - - -


EBIT 0.86 0.87 0.89 0.90 0.91 0.93 0.94 0.96 0.98 0.99

Interest (0.32) (0.33) (0.35) (0.36) (0.37) (0.39) (0.40) (0.42) (0.44) (0.46)

Tax (0.19) (0.18) (0.18) (0.18) (0.17) (0.17) (0.16) (0.16) (0.16) (0.15)


Depreciation - - - - - - - - - -

Investment - - - - - - - - - -


Free cash flow 0.35 0.36 0.36 0.36 0.37 0.37 0.38 0.38 0.38 0.39



Item [MUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Energy sales - 0.96 1.70 1.71 1.71 1.71 1.70 1.70 1.70 1.70 1.70


Fuel cost - (0.23) (0.24) (0.24) (0.24) (0.24) (0.23) (0.23) (0.23) (0.23) (0.23)

Water - (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)


Insurance - (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04)

Gross profit - 0.57 1.32 1.32 1.32 1.32 1.32 1.31 1.31 1.31 1.32


EBITDA - 0.47 1.22 1.22 1.22 1.21 1.21 1.21 1.21 1.21 1.21

Depreciation - (1.35) (1.35) (1.35) (1.35) (1.35) (1.35) (0.06) (0.06) (0.06) (0.06)


EBIT - (1.26) (0.51) (0.51) (0.50) (0.49) (0.49) 0.81 0.82 0.83 0.84

Interest - (0.17) (0.18) (0.19) (0.19) (0.20) (0.21) (0.22) (0.23) (0.23) (0.24)

Tax - - - - - - - (0.25) (0.25) (0.25) (0.25)


Depreciation - 1.35 1.35 1.35 1.35 1.35 1.35 0.06 0.06 0.06 0.06

Investment (9.62) - - - - - - - - - -


Free cash flow (9.62) (0.08) 0.66 0.66 0.66 0.66 0.66 0.40 0.40 0.41 0.41

Actualized Free cash flow (9.62) (0.08) 0.61 0.58 0.56 0.53 0.50 0.29 0.28 0.27 0.26

Item [MUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Energy sales 1.66 1.65 1.65 1.66 1.65 1.65 1.65 1.66 1.66 1.65


Fuel cost (0.23) (0.22) (0.22) (0.23) (0.23) (0.22) (0.23) (0.23) (0.23) (0.23)

Water (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)


Insurance (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04)

Gross profit 1.28 1.28 1.28 1.28 1.28 1.27 1.28 1.28 1.28 1.28


EBITDA 1.18 1.17 1.17 1.18 1.18 1.17 1.17 1.18 1.18 1.18

Depreciation (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) - - - -


EBIT 0.82 0.83 0.84 0.85 0.86 0.87 0.94 0.96 0.98 0.98

Interest (0.25) (0.26) (0.27) (0.28) (0.29) (0.30) (0.32) (0.33) (0.34) (0.36)

Tax (0.23) (0.23) (0.23) (0.23) (0.22) (0.22) (0.23) (0.23) (0.23) (0.22)


Depreciation 0.06 0.06 0.06 0.06 0.06 0.06 - - - -

Investment - - - - - - - - - -


Free cash flow 0.39 0.40 0.40 0.40 0.41 0.40 0.39 0.40 0.41 0.41



Table 10-97 – Cash Flow Statement [MUSD] district heating and cooling with trigeneration

Item [MUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Energy sales 1.66 1.66 1.65 1.65 1.65 1.65 1.65 1.65 1.65 1.65


Fuel cost (0.23) (0.23) (0.23) (0.23) (0.22) (0.22) (0.22) (0.22) (0.22) (0.22)

Water (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)


Insurance (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04)

Gross profit 1.28 1.28 1.27 1.27 1.27 1.27 1.27 1.27 1.27 1.27


EBITDA 1.18 1.17 1.17 1.17 1.17 1.17 1.17 1.17 1.17 1.16

Depreciation - - - - - - - - - -


EBIT 1.00 1.01 1.02 1.04 1.05 1.07 1.09 1.11 1.12 1.14

Interest (0.37) (0.38) (0.40) (0.42) (0.43) (0.45) (0.47) (0.49) (0.51) (0.53)

Tax (0.22) (0.21) (0.21) (0.20) (0.20) (0.19) (0.19) (0.18) (0.18) (0.17)


Depreciation - - - - - - - - - -

Investment - - - - - - - - - -


Free cash flow 0.41 0.41 0.42 0.42 0.42 0.42 0.43 0.44 0.44 0.44




The estimated profit and loss statement [MUSD] for each alternative is presented in Table

10-5798, Table 10-5899, Table 10-59100 and Table 10-101.


Item [MUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Operating revenues

Energy sales 0.00 1.67 1.67 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66

Total revenue 0.00 1.67 1.67 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66

Operating costs

Fuel 0.00 0.32 0.32 0.32 0.32 0.32 0.32 0.32 0.32 0.31 0.31

Water 0.00 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02


Overhaul 0.00 0.32 0.32 0.32 0.32 0.32 0.32 0.32 0.32 0.32 0.32


Insurance 0.00 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03





Income taxes 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.17 0.17 0.17 0.16

Net earnings 0.00 0.69 0.68 0.68 0.67 0.66 0.66 0.48 0.48 0.47 0.47

Item [MUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Operating revenues

Energy sales 1.66 1.66 1.65 1.66 1.66 1.65 1.66 1.66 1.66 1.66

Total revenue 1.66 1.66 1.65 1.66 1.66 1.65 1.66 1.66 1.66 1.66

Operating costs

Fuel 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.32 0.31

Water 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02


Overhaul 0.32 0.32 0.32 0.32 0.32 0.32 0.32 0.32 0.32 0.32


Insurance 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03





Income taxes 0.16 0.16 0.16 0.16 0.15 0.15 0.16 0.16 0.15 0.15

Net earnings 0.46 0.46 0.45 0.44 0.44 0.43 0.41 0.41 0.40 0.39



Item [MUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Operating revenues

Energy sales 1.66 1.66 1.65 1.65 1.65 1.65 1.65 1.65 1.65 1.65

Total revenue 1.66 1.66 1.65 1.65 1.65 1.65 1.65 1.65 1.65 1.65

Operating costs

Fuel 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31

Water 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02


Overhaul 0.32 0.32 0.32 0.32 0.32 0.32 0.32 0.32 0.32 0.32


Insurance 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03





Income taxes 0.15 0.15 0.14 0.14 0.14 0.13 0.13 0.13 0.12 0.12

Net earnings 0.38 0.37 0.37 0.36 0.35 0.34 0.33 0.32 0.31 0.30


Item [MUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Operating revenues

Energy sales 0.00 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06

Total revenue 0.00 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06

Operating costs

Fuel 0.00 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20

Water 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Overhaul 0.00 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19


Insurance 0.00 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02





Income taxes 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.12 0.12 0.12 0.12

Net earnings 0.00 0.48 0.48 0.47 0.47 0.47 0.46 0.34 0.33 0.33 0.33

Item [MUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Operating revenues

Energy sales 1.06 1.05 1.05 1.06 1.06 1.05 1.05 1.06 1.06 1.06

Total revenue 1.06 1.05 1.05 1.06 1.06 1.05 1.05 1.06 1.06 1.06

Operating costs

Fuel 0.20 0.19 0.19 0.20 0.19 0.19 0.19 0.20 0.20 0.20

Water 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Overhaul 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19


Insurance 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02





Income taxes 0.12 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.10 0.10

Net earnings 0.32 0.32 0.31 0.31 0.30 0.30 0.29 0.29 0.28 0.28



Item [MUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Operating revenues

Energy sales 1.06 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05

Total revenue 1.06 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05

Operating costs

Fuel 0.20 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19

Water 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Overhaul 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19


Insurance 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02





Income taxes 0.10 0.10 0.10 0.09 0.09 0.09 0.09 0.08 0.08 0.08

Net earnings 0.27 0.27 0.26 0.25 0.25 0.24 0.23 0.22 0.22 0.21


Item [MUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Operating revenues

Energy sales 0.00 1.47 2.08 2.08 2.08 2.08 2.07 2.07 2.07 2.07 2.07

Total revenue 0.00 1.47 2.08 2.08 2.08 2.08 2.07 2.07 2.07 2.07 2.07

Operating costs

Fuel 0.00 0.44 0.44 0.43 0.43 0.44 0.43 0.43 0.43 0.43 0.43

Water 0.00 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02


Overhaul 0.00 0.38 0.38 0.38 0.38 0.38 0.38 0.38 0.38 0.38 0.38


Insurance 0.00 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04





Income taxes 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.21 0.21 0.21 0.21

Net earnings 0.00 0.25 0.86 0.85 0.85 0.84 0.84 0.61 0.61 0.60 0.60

Item [MUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Operating revenues

Energy sales 2.07 2.07 2.07 2.07 2.07 2.06 2.07 2.07 2.07 2.07

Total revenue 2.07 2.07 2.07 2.07 2.07 2.06 2.07 2.07 2.07 2.07

Operating costs

Fuel 0.42 0.42 0.42 0.43 0.42 0.42 0.42 0.43 0.43 0.42

Water 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02


Overhaul 0.38 0.38 0.38 0.38 0.38 0.38 0.38 0.38 0.38 0.38


Insurance 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04





Income taxes 0.21 0.20 0.20 0.20 0.20 0.19 0.20 0.20 0.19 0.19

Net earnings 0.59 0.59 0.58 0.57 0.56 0.56 0.54 0.53 0.52 0.51


Table 10-100 - Profit and Loss Statement [MUSD] district heating and cooling with heat pumps and gas boiler

Item [MUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Operating revenues

Energy sales 2.07 2.07 2.07 2.06 2.06 2.06 2.06 2.06 2.06 2.06

Total revenue 2.07 2.07 2.07 2.06 2.06 2.06 2.06 2.06 2.06 2.06

Operating costs

Fuel 0.43 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.41

Water 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02


Overhaul 0.38 0.38 0.38 0.38 0.38 0.38 0.38 0.38 0.38 0.38


Insurance 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04





Income taxes 0.19 0.18 0.18 0.18 0.17 0.17 0.16 0.16 0.16 0.15

Net earnings 0.51 0.50 0.49 0.48 0.47 0.46 0.44 0.43 0.42 0.41


Item [MUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Operating revenues

Energy sales 0.0 0.9 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7


Total revenue 0.00 1.44 2.17 2.16 2.17 2.17 2.16 2.15 2.15 2.15 2.15

Operating costs

Fuel 0.00 0.23 0.23 0.23 0.23 0.23 0.23 0.23 0.23 0.23 0.23

Water 0.00 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01


Overhaul 0.00 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46


Insurance 0.00 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04





Income taxes 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.25 0.24 0.24 0.24

Net earnings 0.00 0.29 1.01 1.00 1.00 0.99 0.98 0.72 0.71 0.71 0.70

Item [MUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Operating revenues

Energy sales 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7


Total revenue 2.15 2.15 2.14 2.15 2.15 2.14 2.15 2.15 2.16 2.15

Operating costs

Fuel 0.23 0.22 0.22 0.23 0.23 0.22 0.23 0.23 0.23 0.23

Water 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01


Overhaul 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46


Insurance 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04





Income taxes 0.23 0.23 0.23 0.23 0.22 0.22 0.23 0.23 0.23 0.22

Net earnings 0.69 0.68 0.67 0.67 0.66 0.65 0.63 0.62 0.61 0.60


Table 10-101- Profit and Lo

Item [MUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Operating revenues

Energy sales 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.6 1.6


Total revenue 2.15 2.15 2.14 2.14 2.14 2.13 2.13 2.14 2.13 2.13

Operating costs

Fuel 0.23 0.23 0.23 0.23 0.22 0.22 0.22 0.22 0.22 0.22

Water 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01


Overhaul 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46


Insurance 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04





Income taxes 0.22 0.21 0.21 0.20 0.20 0.19 0.19 0.18 0.18 0.17

Net earnings 0.59 0.58 0.56 0.55 0.54 0.52 0.51 0.50 0.48 0.47


10.4.4. Recoleta

CAPEX


10-42, Table 10-43 and Table 10-44.


Item [USD] 2020

Development cost

Land cost 4,286,438

Engineering 175,637


Direct cost

Thermal plant



Taxes 13,828


Distribution system



Taxes 13,828

Warranty 55,310


Connection system





Indirect cost





Others







Item [USD] 2020

Development cost

Land cost 4,173,824

Engineering 135,192


Direct cost

Thermal plant



Taxes 10,891


Distribution system



Taxes 10,891

Warranty 43,563


Connection system




Total direct cost 901,282

Indirect cost





Others






Table 10-104– CAPEX [USD] district heating and cooling with heat pumps

Item [USD] 2020

Development cost

Land cost 4,286,438

Engineering 243,215


Direct cost

Thermal plant



Taxes 20,903


Distribution system




Taxes 20,903

Warranty 83,612


Connection system



Total connection system

Total direct cost

Indirect cost





Others






Table 10-105 – CAPEX [USD] district heating and cooling with chillers and boiler

Item [USD] 2020

Development cost

Land cost 4,153,689

Engineering 268,347


Direct cost

Thermal plant



Taxes 21,239


Distribution system




Taxes 21,239

Warranty 84,955


Connection system





Indirect cost





Others






OPEX




Item [USD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Electricity - 28,851 29,059 28,847 29,110 29,098 28,909 28,926 28,648 28,711 28,821

Natural Gas - - - - - - - - - - -

Fuel total - 28,851 29,059 28,847 29,110 29,098 28,909 28,926 28,648 28,711 28,821

Water - 2,035 2,028 2,028 2,028 2,028 2,028 2,028 2,028 2,028 2,028


Overhaul - 54,959 54,959 54,959 54,959 54,959 54,959 54,959 54,959 54,959 54,959


Insurance - 5,024 5,024 5,024 5,024 5,024 5,024 5,024 5,023 5,023 5,023


Item [USD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Electricity 28,744 28,807 28,735 28,488 28,605 28,328 28,359 28,450 28,344 28,188

Natural Gas - - - - - - - - - -

Fuel total 28,744 28,807 28,735 28,488 28,605 28,328 28,359 28,450 28,344 28,188

Water 2,028 2,028 2,028 2,028 2,028 2,028 2,028 2,028 2,028 2,028


Overhaul 55,434 55,434 55,434 55,434 55,434 55,434 55,434 55,434 55,434 55,434


Insurance 5,066 5,066 5,066 5,065 5,066 5,065 5,065 5,065 5,065 5,065


Item [USD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Electricity 28,422 28,422 28,695 28,523 28,477 28,551 28,651 28,391 28,558 28,353

Natural Gas - - - - - - - - - -

Fuel total 28,422 28,422 28,695 28,523 28,477 28,551 28,651 28,391 28,558 28,353

Water 2,028 2,028 2,028 2,028 2,028 2,028 2,028 2,028 2,028 2,028


Overhaul 55,434 55,434 55,434 55,434 55,434 55,434 55,434 55,434 55,434 55,434


Insurance 5,065 5,065 5,066 5,065 5,065 5,066 5,066 5,065 5,066 5,065



Table 10-107 – OPEX [USD] District heating with heat pumps

Item [USD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Electricity - 56,683 57,091 56,674 57,190 57,167 56,796 56,830 56,284 56,408 56,622

Natural Gas - - - - - - - - - - -

Fuel total - 56,683 57,091 56,674 57,190 57,167 56,796 56,830 56,284 56,408 56,622

Water - - - - - - - - - - -


Overhaul - 39,306 39,306 39,306 39,306 39,306 39,306 39,306 39,306 39,306 39,306


Insurance - 3,679 3,680 3,679 3,681 3,680 3,680 3,680 3,678 3,679 3,679


Item [USD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Electricity 56,472 56,596 56,455 55,969 56,199 55,654 55,715 55,893 55,686 55,380

Natural Gas - - - - - - - - - -

Fuel total 56,472 56,596 56,455 55,969 56,199 55,654 55,715 55,893 55,686 55,380

Water - - - - - - - - - -


Overhaul 39,405 39,405 39,405 39,405 39,405 39,405 39,405 39,405 39,405 39,405


Insurance 3,688 3,688 3,688 3,686 3,687 3,686 3,686 3,686 3,686 3,685


Item [USD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Electricity 55,840 55,840 56,376 56,038 55,948 56,093 56,290 55,778 56,107 55,703

Natural Gas - - - - - - - - - -

Fuel total 55,840 55,840 56,376 56,038 55,948 56,093 56,290 55,778 56,107 55,703

Water - - - - - - - - - -


Overhaul 39,405 39,405 39,405 39,405 39,405 39,405 39,405 39,405 39,405 39,405


Insurance 3,686 3,686 3,687 3,687 3,686 3,687 3,687 3,686 3,687 3,686



Table 10-108 – OPEX [USD] district heating and cooling with heat pumps

Item [USD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Electricity - 40,595 40,888 40,589 40,959 40,942 40,676 40,700 40,310 40,398 40,552

Natural Gas - 718 661 624 633 581 577 585 637 692 667

Fuel total - 41,313 41,549 41,213 41,591 41,523 41,253 41,286 40,947 41,090 41,219

Water - 1,620 1,633 1,640 1,637 1,649 1,655 1,668 1,678 1,681 1,674


Overhaul - 74,324 74,324 74,324 74,324 74,324 74,324 74,324 74,324 74,324 74,324


Insurance - 6,796 6,797 6,796 6,797 6,797 6,796 6,797 6,796 6,796 6,796


Item [USD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Electricity 40,444 40,533 40,432 40,084 40,249 39,858 39,902 40,030 39,882 39,662

Natural Gas 639 676 628 678 689 696 691 737 696 745

Fuel total 41,083 41,209 41,060 40,762 40,937 40,555 40,593 40,766 40,578 40,408

Water 1,642 1,651 1,644 1,636 1,637 1,639 1,640 1,645 1,643 1,656


Overhaul 74,658 74,658 74,658 74,658 74,658 74,658 74,658 74,658 74,658 74,658


Insurance 6,826 6,826 6,826 6,825 6,826 6,825 6,825 6,825 6,825 6,824


Item [USD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Electricity 39,992 39,992 40,376 40,133 40,069 40,173 40,314 39,947 40,183 39,893

Natural Gas 675 718 693 646 665 644 669 663 621 684

Fuel total 40,667 40,710 41,068 40,779 40,734 40,817 40,983 40,610 40,804 40,577

Water 1,657 1,650 1,653 1,657 1,657 1,665 1,670 1,666 1,667 1,666


Overhaul 74,658 74,658 74,658 74,658 74,658 74,658 74,658 74,658 74,658 74,658


Insurance 6,825 6,825 6,826 6,825 6,825 6,825 6,826 6,825 6,825 6,825



Table 10-109 – OPEX [USD] district heating and cooling with chillers and boiler

Item [USD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Electricity - 28,078 28,280 28,074 28,329 28,318 28,134 28,151 27,881 27,942 28,048

Natural Gas - 1,022 942 889 901 827 822 833 907 985 950

Fuel total - 29,100 29,222 28,963 29,231 29,145 28,956 28,984 28,788 28,927 28,999

Water - 2,035 2,051 2,060 2,056 2,071 2,078 2,095 2,108 2,111 2,103


Overhaul - 81,654 81,654 81,654 81,654 81,654 81,654 81,654 81,654 81,654 81,654


Insurance - 7,427 7,427 7,426 7,427 7,427 7,426 7,427 7,426 7,426 7,427


Item [USD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Electricity 27,974 28,035 27,965 27,725 27,838 27,568 27,599 27,687 27,585 27,433

Natural Gas 910 962 894 965 981 992 984 1,049 992 1,061

Fuel total 28,884 28,998 28,859 28,690 28,819 28,560 28,583 28,736 28,576 28,494

Water 2,062 2,074 2,065 2,056 2,056 2,059 2,060 2,067 2,064 2,080


Overhaul 82,267 82,267 82,267 82,267 82,267 82,267 82,267 82,267 82,267 82,267


Insurance 7,481 7,482 7,481 7,481 7,481 7,481 7,481 7,481 7,481 7,480


Item [USD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Electricity 27,661 27,661 27,926 27,759 27,714 27,786 27,883 27,630 27,793 27,593

Natural Gas 962 1,023 986 920 946 917 953 944 885 974

Fuel total 28,622 28,684 28,912 28,679 28,661 28,703 28,836 28,574 28,677 28,567

Water 2,081 2,073 2,076 2,081 2,081 2,091 2,098 2,092 2,094 2,093


Overhaul 82,267 82,267 82,267 82,267 82,267 82,267 82,267 82,267 82,267 82,267


Insurance 7,481 7,481 7,482 7,481 7,481 7,481 7,481 7,481 7,481 7,481




Item [USD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Opening balance - 3,252,871 3,194,872 3,134,553 3,071,821 3,006,580 2,938,730 2,868,165 2,794,778 2,718,455 2,639,079

Total payment - 188,114 188,114 188,114 188,114 188,114 188,114 188,114 188,114 188,114 188,114



Closing balance - 3,194,872 3,134,553 3,071,821 3,006,580 2,938,730 2,868,165 2,794,778 2,718,455 2,639,079 2,556,529

Item [USD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Opening balance 2,512,936 2,428,547 2,340,783 2,249,508 2,154,582 2,055,859 1,953,187 1,846,408 1,735,358 1,619,867

Total payment 184,906 184,906 184,906 184,906 184,906 184,906 184,906 184,906 184,906 184,906



Closing balance 2,428,547 2,340,783 2,249,508 2,154,582 2,055,859 1,953,187 1,846,408 1,735,358 1,619,867 1,499,755

Item [USD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Opening balance 1,499,755 1,374,839 1,244,926 1,109,817 969,304 823,170 671,190 513,132 348,751 177,794

Total payment 184,906 184,906 184,906 184,906 184,906 184,906 184,906 184,906 184,906 184,906



Closing balance 1,374,839 1,244,926 1,109,817 969,304 823,170 671,190 513,132 348,751 177,794 -



Item [USD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Opening balance - 2,981,966 2,928,797 2,873,501 2,815,994 2,756,186 2,693,987 2,629,299 2,562,023 2,492,057 2,419,292

Total payment - 172,447 172,447 172,447 172,447 172,447 172,447 172,447 172,447 172,447 172,447



Closing balance - 2,928,797 2,873,501 2,815,994 2,756,186 2,693,987 2,629,299 2,562,023 2,492,057 2,419,292 2,343,616

Item [USD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Opening balance 2,317,253 2,239,436 2,158,506 2,074,339 1,986,804 1,895,769 1,801,092 1,702,628 1,600,226 1,493,728

Total payment 170,508 170,508 170,508 170,508 170,508 170,508 170,508 170,508 170,508 170,508



Closing balance 2,239,436 2,158,506 2,074,339 1,986,804 1,895,769 1,801,092 1,702,628 1,600,226 1,493,728 1,382,969

Item [USD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Opening balance 1,382,969 1,267,780 1,147,984 1,023,396 893,824 759,069 618,925 473,174 321,593 163,950

Total payment 170,508 170,508 170,508 170,508 170,508 170,508 170,508 170,508 170,508 170,508



Closing balance 1,267,780 1,147,984 1,023,396 893,824 759,069 618,925 473,174 321,593 163,950 -


Table 10-112 - Debt service account [USD] district heating and cooling with heat pumps

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Opening balance - 3,541,585 3,478,438 3,412,766 3,344,466 3,273,435 3,199,562 3,122,734 3,042,833 2,959,736 2,873,315

Total payment - 204,810 204,810 204,810 204,810 204,810 204,810 204,810 204,810 204,810 204,810



Closing balance - 3,478,438 3,412,766 3,344,466 3,273,435 3,199,562 3,122,734 3,042,833 2,959,736 2,873,315 2,783,438

2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Opening balance 2,733,597 2,641,798 2,546,327 2,447,038 2,343,776 2,236,384 2,124,697 2,008,542 1,887,741 1,762,108

Total payment 201,143 201,143 201,143 201,143 201,143 201,143 201,143 201,143 201,143 201,143



Closing balance 2,641,798 2,546,327 2,447,038 2,343,776 2,236,384 2,124,697 2,008,542 1,887,741 1,762,108 1,631,449

2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Opening balance 1,631,449 1,495,564 1,354,244 1,207,271 1,054,418 895,452 730,128 558,190 379,375 193,407

Total payment 201,143 201,143 201,143 201,143 201,143 201,143 201,143 201,143 201,143 201,143



Closing balance 1,495,564 1,354,244 1,207,271 1,054,418 895,452 730,128 558,190 379,375 193,407 -

Item [USD]

Item [USD]

Item [USD]


Table 10-113 - Debt service account [USD] district heating and cooling with chillers and boiler

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Opening balance - 3,670,933 3,605,480 3,537,409 3,466,615 3,392,989 3,316,418 3,236,785 3,153,966 3,067,834 2,978,257

Total payment - 212,290 212,290 212,290 212,290 212,290 212,290 212,290 212,290 212,290 212,290



Closing balance - 3,605,480 3,537,409 3,466,615 3,392,989 3,316,418 3,236,785 3,153,966 3,067,834 2,978,257 2,885,096

2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Opening balance 2,825,848 2,730,951 2,632,259 2,529,618 2,422,872 2,311,856 2,196,399 2,076,324 1,951,447 1,821,574

Total payment 207,931 207,931 207,931 207,931 207,931 207,931 207,931 207,931 207,931 207,931



Closing balance 2,730,951 2,632,259 2,529,618 2,422,872 2,311,856 2,196,399 2,076,324 1,951,447 1,821,574 1,686,506

2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Opening balance 1,686,506 1,546,035 1,399,945 1,248,012 1,090,002 925,671 754,767 577,027 392,177 199,934

Total payment 207,931 207,931 207,931 207,931 207,931 207,931 207,931 207,931 207,931 207,931



Closing balance 1,546,035 1,399,945 1,248,012 1,090,002 925,671 754,767 577,027 392,177 199,934 -

Item [USD]

Item [USD]

Item [USD]


CASH FLOW STATEMENT


Table 10-55 and Table 10-56. A free land concession is considered and 50% of the capital

investment is financed with debt.


Item [MMUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Energy sales - 0,24 0,24 0,24 0,24 0,24 0,24 0,24 0,24 0,24 0,24

Fuel cost - (0,03) (0,03) (0,03) (0,03) (0,03) (0,03) (0,03) (0,03) (0,03) (0,03)

Water - (0,00) (0,00) (0,00) (0,00) (0,00) (0,00) (0,00) (0,00) (0,00) (0,00)

Operation and Maintenance (includes Overhaul) - (0,07) (0,07) (0,07) (0,07) (0,07) (0,07) (0,07) (0,07) (0,07) (0,07)

Insurance - (0,00) (0,00) (0,00) (0,00) (0,00) (0,00) (0,00) (0,00) (0,00) (0,00)

Gross profit - 0,13 0,13 0,13 0,13 0,13 0,13 0,13 0,13 0,13 0,13

Selling, General and Administrative Expenses - (0,01) (0,01) (0,01) (0,01) (0,01) (0,01) (0,01) (0,01) (0,01) (0,01)

EBITDA - 0,12 0,12 0,12 0,12 0,12 0,12 0,12 0,12 0,12 0,12

Depreciation - (0,16) (0,16) (0,16) (0,16) (0,16) (0,16) (0,01) (0,01) (0,01) (0,01)

Debt amortization - (0,02) (0,02) (0,02) (0,02) (0,02) (0,02) (0,02) (0,02) (0,02) (0,02)

EBIT - (0,05) (0,05) (0,05) (0,05) (0,05) (0,05) 0,10 0,10 0,10 0,10

Interest - (0,03) (0,03) (0,03) (0,03) (0,03) (0,03) (0,03) (0,03) (0,03) (0,03)

Tax - - - - - - - (0,02) (0,02) (0,02) (0,02)

Earnings after interest and tax - (0,08) (0,08) (0,08) (0,08) (0,08) (0,08) 0,05 0,05 0,05 0,04

Depreciation - 0,16 0,16 0,16 0,16 0,16 0,16 0,01 0,01 0,01 0,01

Investment (0,86) - - - - - - - - - -


Free cash flow (0,86) 0,07 0,07 0,07 0,07 0,07 0,07 0,05 0,05 0,05 0,05

Actualized Free cash flow (0,86) 0,07 0,07 0,07 0,06 0,06 0,06 0,04 0,04 0,03 0,03

Item [MMUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Energy sales 0.38 0.38 0.38 0.38 0.38 0.38 0.38 0.38 0.38 0.38

Fuel cost (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03)

Water (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)


Insurance (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Gross profit 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27


EBITDA 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26

Depreciation (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) - - - -


EBIT 0.18 0.18 0.17 0.17 0.17 0.16 0.16 0.16 0.16 0.15

Interest (0.09) (0.09) (0.09) (0.08) (0.08) (0.08) (0.07) (0.07) (0.06) (0.06)

Tax (0.04) (0.05) (0.05) (0.05) (0.05) (0.05) (0.05) (0.05) (0.05) (0.05)


Depreciation 0.01 0.01 0.01 0.01 0.01 0.01 - - - -

Investment - - - - - - - - - -


Free cash flow 0.05 0.05 0.05 0.04 0.04 0.04 0.04 0.04 0.04 0.04



Table 10-114 – Cash Flow Statement [MUSD] district cooling with chillers

Item [MMUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Energy sales 0.38 0.38 0.38 0.38 0.38 0.38 0.38 0.38 0.38 0.38

Fuel cost (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03)

Water (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)


Insurance (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Gross profit 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27


EBITDA 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26

Depreciation - - - - - - - - - -


EBIT 0.15 0.14 0.14 0.13 0.13 0.12 0.12 0.11 0.10 0.10

Interest (0.06) (0.05) (0.05) (0.04) (0.04) (0.03) (0.03) (0.02) (0.01) (0.01)

Tax (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.07) (0.07) (0.07)


Depreciation - - - - - - - - - -

Investment - - - - - - - - - -


Free cash flow 0.04 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.02 0.02



Item [MMUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Energy sales - 0,21 0,21 0,21 0,21 0,21 0,21 0,21 0,21 0,21 0,21

Fuel cost - (0,06) (0,06) (0,06) (0,06) (0,06) (0,06) (0,06) (0,06) (0,06) (0,06)

Water - - - - - - - - - - -


Insurance - (0,00) (0,00) (0,00) (0,00) (0,00) (0,00) (0,00) (0,00) (0,00) (0,00)

Gross profit - 0,10 0,10 0,10 0,10 0,10 0,10 0,10 0,10 0,10 0,10


EBITDA - 0,09 0,09 0,09 0,09 0,09 0,09 0,09 0,09 0,09 0,09

Depreciation - (0,13) (0,13) (0,13) (0,13) (0,13) (0,13) (0,01) (0,01) (0,01) (0,01)


EBIT - (0,05) (0,05) (0,05) (0,05) (0,05) (0,05) 0,07 0,07 0,07 0,07

Interest - (0,03) (0,03) (0,03) (0,03) (0,03) (0,02) (0,02) (0,02) (0,02) (0,02)

Tax - - - - - - - (0,02) (0,02) (0,02) (0,02)


Depreciation - 0,13 0,13 0,13 0,13 0,13 0,13 0,01 0,01 0,01 0,01

Investment (0,68) - - - - - - - - - -


Free cash flow (0,68) 0,05 0,05 0,05 0,05 0,05 0,05 0,03 0,03 0,03 0,03

Actualized Free cash flow (0,68) 0,05 0,05 0,04 0,04 0,04 0,04 0,02 0,02 0,02 0,02

Item [MMUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Energy sales 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35

Fuel cost (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06)

Water - - - - - - - - - -


Insurance (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)

Gross profit 0.23 0.23 0.23 0.23 0.23 0.23 0.23 0.23 0.23 0.23


EBITDA 0.23 0.23 0.23 0.23 0.23 0.23 0.23 0.23 0.23 0.23

Depreciation (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) - - - -


EBIT 0.15 0.15 0.14 0.14 0.14 0.13 0.13 0.13 0.13 0.12

Interest (0.09) (0.08) (0.08) (0.08) (0.07) (0.07) (0.07) (0.06) (0.06) (0.06)

Tax (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.05) (0.05)


Depreciation 0.01 0.01 0.01 0.01 0.01 0.01 - - - -

Investment - - - - - - - - - -


Free cash flow 0.03 0.03 0.03 0.03 0.03 0.03 0.02 0.02 0.02 0.02




Item [MMUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Energy sales 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35

Fuel cost (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06)

Water - - - - - - - - - -


Insurance (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)

Gross profit 0.23 0.23 0.23 0.23 0.23 0.23 0.23 0.23 0.23 0.23


EBITDA 0.23 0.23 0.23 0.23 0.23 0.23 0.23 0.23 0.23 0.23

Depreciation - - - - - - - - - -


EBIT 0.12 0.11 0.11 0.11 0.10 0.10 0.09 0.09 0.08 0.07

Interest (0.05) (0.05) (0.04) (0.04) (0.03) (0.03) (0.02) (0.02) (0.01) (0.01)

Tax (0.05) (0.05) (0.05) (0.05) (0.05) (0.05) (0.05) (0.06) (0.06) (0.06)


Depreciation - - - - - - - - - -

Investment - - - - - - - - - -


Free cash flow 0.02 0.02 0.02 0.02 0.02 0.01 0.01 0.01 0.01 0.01



Item [MMUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Energy sales - 0,21 0,33 0,33 0,33 0,33 0,33 0,33 0,33 0,33 0,33

Fuel cost - (0,04) (0,04) (0,04) (0,04) (0,04) (0,04) (0,04) (0,04) (0,04) (0,04)

Water - (0,00) (0,00) (0,00) (0,00) (0,00) (0,00) (0,00) (0,00) (0,00) (0,00)


Insurance - (0,01) (0,01) (0,01) (0,01) (0,01) (0,01) (0,01) (0,01) (0,01) (0,01)

Gross profit - 0,07 0,18 0,18 0,18 0,18 0,18 0,18 0,18 0,18 0,18


EBITDA - 0,05 0,17 0,17 0,17 0,17 0,17 0,17 0,17 0,17 0,17

Depreciation - (0,21) (0,21) (0,21) (0,21) (0,21) (0,21) (0,01) (0,01) (0,01) (0,01)


EBIT - (0,18) (0,06) (0,06) (0,06) (0,07) (0,07) 0,13 0,13 0,13 0,13

Interest - (0,05) (0,05) (0,04) (0,04) (0,04) (0,04) (0,04) (0,04) (0,04) (0,04)

Tax - - - - - - - (0,03) (0,03) (0,03) (0,03)


Depreciation - 0,21 0,21 0,21 0,21 0,21 0,21 0,01 0,01 0,01 0,01

Investment (1,15) - - - - - - - - - -


Free cash flow (1,15) (0,01) 0,10 0,10 0,10 0,10 0,10 0,07 0,07 0,07 0,07

Actualized Free cash flow (1,15) (0,01) 0,09 0,09 0,09 0,08 0,08 0,05 0,05 0,05 0,04

Item [MMUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Energy sales 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48

Fuel cost (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04)

Water (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)


Insurance (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Gross profit 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33


EBITDA 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31

Depreciation (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) - - - -


EBIT 0.22 0.21 0.21 0.21 0.20 0.20 0.20 0.20 0.20 0.19

Interest (0.10) (0.10) (0.10) (0.09) (0.09) (0.08) (0.08) (0.08) (0.07) (0.07)

Tax (0.05) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.07) (0.07)


Depreciation 0.01 0.01 0.01 0.01 0.01 0.01 - - - -

Investment - - - - - - - - - -


Free cash flow 0.07 0.07 0.07 0.07 0.07 0.06 0.06 0.06 0.06 0.06



Table 10-116 - Cash Flow Statement [MUSD] district heating and cooling with heat pumps

Item [MMUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Energy sales 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48

Fuel cost (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04)

Water (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)


Insurance (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Gross profit 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33


EBITDA 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31

Depreciation - - - - - - - - - -


EBIT 0.19 0.18 0.18 0.17 0.16 0.16 0.15 0.14 0.14 0.13

Interest (0.06) (0.06) (0.05) (0.05) (0.04) (0.03) (0.03) (0.02) (0.01) (0.01)

Tax (0.07) (0.07) (0.07) (0.07) (0.07) (0.08) (0.08) (0.08) (0.08) (0.08)


Depreciation - - - - - - - - - -

Investment - - - - - - - - - -


Free cash flow 0.06 0.05 0.05 0.05 0.05 0.05 0.05 0.04 0.04 0.04



Item [MMUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Energy sales - 0,22 0,34 0,34 0,34 0,34 0,34 0,34 0,34 0,34 0,34

Fuel cost - (0,03) (0,03) (0,03) (0,03) (0,03) (0,03) (0,03) (0,03) (0,03) (0,03)

Water - (0,00) (0,00) (0,00) (0,00) (0,00) (0,00) (0,00) (0,00) (0,00) (0,00)


Insurance - (0,01) (0,01) (0,01) (0,01) (0,01) (0,01) (0,01) (0,01) (0,01) (0,01)

Gross profit - 0,08 0,20 0,20 0,20 0,20 0,20 0,20 0,20 0,20 0,20


EBITDA - 0,06 0,19 0,19 0,19 0,19 0,19 0,19 0,19 0,19 0,19

Depreciation - (0,23) (0,23) (0,23) (0,23) (0,23) (0,23) (0,01) (0,01) (0,01) (0,01)


EBIT - (0,19) (0,07) (0,07) (0,07) (0,07) (0,07) 0,15 0,15 0,14 0,14

Interest - (0,05) (0,05) (0,05) (0,05) (0,05) (0,05) (0,04) (0,04) (0,04) (0,04)

Tax - - - - - - - (0,04) (0,04) (0,04) (0,04)


Depreciation - 0,23 0,23 0,23 0,23 0,23 0,23 0,01 0,01 0,01 0,01

Investment (1,27) - - - - - - - - - -


Free cash flow (1,27) (0,01) 0,11 0,11 0,11 0,11 0,11 0,08 0,08 0,08 0,08

Actualized Free cash flow (1,27) (0,01) 0,10 0,10 0,09 0,09 0,09 0,06 0,05 0,05 0,05

Item [MMUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Energy sales 0.49 0.49 0.49 0.49 0.49 0.49 0.49 0.49 0.49 0.49

Fuel cost (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03)

Water (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)


Insurance (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Gross profit 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35


EBITDA 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33

Depreciation (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) - - - -


EBIT 0.23 0.23 0.22 0.22 0.22 0.21 0.22 0.21 0.21 0.20

Interest (0.11) (0.10) (0.10) (0.10) (0.09) (0.09) (0.08) (0.08) (0.07) (0.07)

Tax (0.06) (0.06) (0.06) (0.06) (0.06) (0.06) (0.07) (0.07) (0.07) (0.07)


Depreciation 0.01 0.01 0.01 0.01 0.01 0.01 - - - -

Investment - - - - - - - - - -


Free cash flow 0.08 0.08 0.07 0.07 0.07 0.07 0.07 0.07 0.06 0.06



Table 10-117 - Cash Flow Statement [MUSD] district heating and cooling with chillers and boiler

Item [MMUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Energy sales 0.49 0.49 0.49 0.49 0.49 0.49 0.49 0.49 0.49 0.49

Fuel cost (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03)

Water (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)


Insurance (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Gross profit 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35


EBITDA 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33

Depreciation - - - - - - - - - -


EBIT 0.20 0.19 0.19 0.18 0.18 0.17 0.16 0.16 0.15 0.14

Interest (0.06) (0.06) (0.05) (0.05) (0.04) (0.04) (0.03) (0.02) (0.01) (0.01)

Tax (0.07) (0.07) (0.08) (0.08) (0.08) (0.08) (0.08) (0.08) (0.09) (0.09)


Depreciation - - - - - - - - - -

Investment - - - - - - - - - -


Free cash flow 0.06 0.06 0.06 0.06 0.06 0.05 0.05 0.05 0.05 0.05





Table 10-119, Table 10-120 and Table 10-121. A free land concession is considered and 50% of

the capital investment is financed with debt.


Item [MMUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Operating revenues

Energy sales 0.00 0.39 0.39 0.39 0.39 0.39 0.39 0.39 0.39 0.39 0.39

Total revenue 0.00 0.39 0.39 0.39 0.39 0.39 0.39 0.39 0.39 0.39 0.39

Operating costs

Fuel 0.00 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03

Water 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Overhaul 0.00 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06


Insurance 0.00 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01





Income taxes 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.04 0.04 0.04 0.04

Net earnings 0.00 0.15 0.15 0.15 0.15 0.16 0.16 0.12 0.12 0.12 0.13

Item [MMUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Operating revenues

Energy sales 0.39 0.39 0.39 0.39 0.39 0.39 0.39 0.39 0.39 0.39

Total revenue 0.39 0.39 0.39 0.39 0.39 0.39 0.39 0.39 0.39 0.39

Operating costs

Fuel 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03

Water 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Overhaul 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06


Insurance 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01





Income taxes 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.06 0.06

Net earnings 0.13 0.13 0.13 0.14 0.14 0.14 0.14 0.15 0.15 0.15



Item [MMUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Operating revenues

Energy sales 0.39 0.39 0.39 0.39 0.39 0.39 0.39 0.39 0.39 0.39

Total revenue 0.39 0.39 0.39 0.39 0.39 0.39 0.39 0.39 0.39 0.39

Operating costs

Fuel 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03

Water 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Overhaul 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06


Insurance 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01





Income taxes 0.06 0.06 0.06 0.06 0.06 0.07 0.07 0.07 0.07 0.07

Net earnings 0.16 0.16 0.16 0.17 0.17 0.18 0.18 0.19 0.19 0.19


Item [MMUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Operating revenues

Energy sales 0.00 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.35 0.36 0.36

Total revenue 0.00 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.35 0.36 0.36

Operating costs

Fuel 0.00 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06

Water 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Overhaul 0.00 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04


Insurance 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00





Income taxes 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.03 0.04 0.04 0.04

Net earnings 0.00 0.12 0.12 0.12 0.12 0.13 0.13 0.10 0.10 0.10 0.11

Item [MMUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Operating revenues

Energy sales 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36

Total revenue 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36

Operating costs

Fuel 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06

Water 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Overhaul 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04


Insurance 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00





Income taxes 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.05 0.05 0.05

Net earnings 0.11 0.11 0.11 0.11 0.12 0.12 0.12 0.12 0.13 0.13



Item [MMUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Operating revenues

Energy sales 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36

Total revenue 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36

Operating costs

Fuel 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06

Water 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Overhaul 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04


Insurance 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00





Income taxes 0.05 0.05 0.05 0.05 0.05 0.06 0.06 0.06 0.06 0.06

Net earnings 0.13 0.14 0.14 0.14 0.15 0.15 0.16 0.16 0.16 0.17


Item [MMUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Operating revenues

Energy sales 0.00 0.37 0.49 0.49 0.49 0.49 0.49 0.49 0.49 0.49 0.49

Total revenue 0.00 0.37 0.49 0.49 0.49 0.49 0.49 0.49 0.49 0.49 0.49

Operating costs

Fuel 0.00 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04

Water 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Overhaul 0.00 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08


Insurance 0.00 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01





Income taxes 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.05 0.05 0.05 0.06

Net earnings 0.00 0.07 0.19 0.19 0.20 0.20 0.20 0.15 0.15 0.16 0.16

Item [MMUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Operating revenues

Energy sales 0.49 0.49 0.49 0.49 0.49 0.49 0.49 0.49 0.49 0.49

Total revenue 0.49 0.49 0.49 0.49 0.49 0.49 0.49 0.49 0.49 0.49

Operating costs

Fuel 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04

Water 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Overhaul 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08


Insurance 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01





Income taxes 0.06 0.06 0.06 0.06 0.06 0.06 0.07 0.07 0.07 0.07

Net earnings 0.16 0.17 0.17 0.17 0.17 0.18 0.18 0.18 0.18 0.19


Table 10-120 - Profit and Loss Statement [MUSD] district heating and cooling with heat pumps

Item [MMUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Operating revenues

Energy sales 0.49 0.49 0.49 0.49 0.49 0.49 0.49 0.49 0.49 0.49

Total revenue 0.49 0.49 0.49 0.49 0.49 0.49 0.49 0.49 0.49 0.49

Operating costs

Fuel 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04

Water 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Overhaul 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08


Insurance 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01





Income taxes 0.07 0.07 0.07 0.08 0.08 0.08 0.08 0.08 0.08 0.09

Net earnings 0.19 0.20 0.20 0.20 0.21 0.21 0.22 0.22 0.23 0.23


Item [MMUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Operating revenues

Energy sales 0.00 0.38 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51

Total revenue 0.00 0.38 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51

Operating costs

Fuel 0.00 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03

Water 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Overhaul 0.00 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08


Insurance 0.00 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01





Income taxes 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.06 0.06 0.06 0.06

Net earnings 0.00 0.07 0.20 0.21 0.21 0.21 0.22 0.16 0.16 0.17 0.17

Item [MMUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Operating revenues

Energy sales 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51

Total revenue 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51

Operating costs

Fuel 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03

Water 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Overhaul 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08


Insurance 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01





Income taxes 0.06 0.06 0.06 0.06 0.06 0.07 0.07 0.07 0.07 0.07

Net earnings 0.17 0.18 0.18 0.18 0.18 0.19 0.19 0.19 0.20 0.20


Table 10-121 - Profit and Loss Statement [MUSD] district heating and cooling with chillers and boilers

Item [MMUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Operating revenues

Energy sales 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51

Total revenue 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51

Operating costs

Fuel 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03

Water 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Overhaul 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08


Insurance 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01





Income taxes 0.08 0.08 0.08 0.08 0.08 0.08 0.09 0.09 0.09 0.09

Net earnings 0.20 0.21 0.21 0.22 0.22 0.23 0.23 0.24 0.24 0.25


10.4.5. Coyhaique

CAPEX


10-42 and Table 10-43.

Table 10-122 CAPEX [USD] district heating with wood chip

Item [USD] 2020

Development cost

Land cost -

Engineering 725,685


Direct cost

Thermal plant



Taxes 78,634


Dsitribution system



Taxes 78,634

Warranty 314,537


Connection system





Indirect cost





Others






Table 10-123- CAPEX [USD] district heating with cogeneration

Item [USD] 2020

Development cost

Land cost -

Engineering 740,272


Direct cost

Thermal plant



Taxes 78,634

Total thermal plant

Dsitribution system



Taxes 78,634

Warranty 314,537


Connection system





Indirect cost





Others






Table 10-124– CAPEX [USD] district heating with ground source heat pumps

Item [USD] 2020

Development cost

Land cost -

Engineering 893,316


Direct cost

Thermal plant



Taxes 78,634


Dsitribution system



Taxes 78,634

Warranty 314,537


Connection system



Total connection system


Indirect cost





Others






OPEX

Details of the OPEX estimate [USD] for each of the options is presented in Table 10-45, Table 10-46 and Table 10-47.


Table 10-125 - OPEX [USD] district heating with wood chip

Item [USD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Electricity - 11,556 11,527 11,433 11,492 11,535 11,419 11,447 11,547 11,461 11,476

Wood Chip - 239,806 240,837 240,837 241,777 244,049 246,319 247,304 248,219 247,127 247,943

Fuel total - 251,362 252,364 252,270 253,269 255,584 257,738 258,751 259,767 258,588 259,418


Overhaul - 241,442 241,442 241,442 241,442 241,442 241,442 241,442 241,442 241,442 241,442


Insurance - 22,358 22,361 22,360 22,363 22,369 22,374 22,377 22,379 22,376 22,378


Item [USD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Electricity 11,416 11,342 11,325 11,240 11,127 11,078 10,985 10,933 11,040 11,149

Wood Chip 248,761 250,527 251,178 253,213 252,352 254,648 256,838 258,200 259,336 261,670

Fuel total 260,177 261,869 262,503 264,453 263,479 265,727 267,824 269,132 270,375 272,819


Overhaul 241,442 241,442 241,442 241,442 241,442 241,442 241,442 241,442 241,442 241,442


Insurance 22,380 22,384 22,386 22,391 22,388 22,394 22,399 22,403 22,406 22,412


Item [USD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Electricity 11,185 11,127 11,227 11,116 11,023 10,944 10,942 10,874 10,958 10,914

Wood Chip 260,858 263,415 265,470 267,089 266,181 265,808 266,898 269,460 270,080 272,754

Fuel total 272,043 274,542 276,696 278,205 277,204 276,752 277,840 280,334 281,038 283,668


Overhaul 241,442 241,442 241,442 241,442 241,442 241,442 241,442 241,442 241,442 241,442


Insurance 22,410 22,416 22,421 22,425 22,423 22,422 22,424 22,431 22,432 22,439



Table 10-126 - OPEX [USD] district heating with cogeneration

Item [USD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Electricity - 11,556 11,527 11,433 11,492 11,535 11,419 11,447 11,547 11,461 11,476

Wood Chip - 149,852 150,496 150,496 151,083 152,503 153,922 154,537 155,109 154,427 154,936

Fuel total - 161,408 162,023 161,929 162,575 164,038 165,341 165,984 166,656 165,887 166,412


Overhaul - 246,102 246,102 246,102 246,102 246,102 246,102 246,102 246,102 246,102 246,102


Insurance - 25,562 25,601 25,834 25,728 25,810 25,637 25,812 25,604 25,580 25,631


Item [USD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Electricity 11,416 11,342 11,325 11,240 11,127 11,078 10,985 10,933 11,040 11,149

Wood Chip 155,448 156,551 156,958 158,230 157,692 159,127 160,495 161,346 162,056 163,514

Fuel total 166,864 167,893 168,283 169,469 168,819 170,205 171,481 172,278 173,095 174,663


Overhaul 246,102 246,102 246,102 246,102 246,102 246,102 246,102 246,102 246,102 246,102


Insurance 25,556 25,846 25,600 25,804 25,613 25,809 25,830 25,696 25,703 25,853


Item [USD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Electricity 11,185 11,127 11,227 11,116 11,023 10,944 10,942 10,874 10,958 10,914

Wood Chip 163,007 164,605 165,889 166,901 166,333 166,100 166,781 168,382 168,770 170,440

Fuel total 174,192 175,731 177,115 178,016 177,356 177,044 177,723 179,256 179,727 181,354


Overhaul 246,102 246,102 246,102 246,102 246,102 246,102 246,102 246,102 246,102 246,102


Insurance 25,765 25,598 25,833 25,669 25,768 25,719 25,792 25,878 25,655 25,853



Table 10-127 – OPEX [USD] district heating with ground source heat pumps

Item [USD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Electricity - 58,535 58,388 57,910 58,211 58,426 57,842 57,981 58,491 58,052 58,128

Wood Chip - 179,855 180,628 180,628 181,332 183,037 184,739 185,478 186,164 185,345 185,957

Fuel total - 238,389 239,016 238,537 239,543 241,463 242,581 243,459 244,655 243,397 244,085


Overhaul - 296,285 296,285 296,285 296,285 296,285 296,285 296,285 296,285 296,285 296,285


Insurance - 27,262 27,263 27,262 27,264 27,269 27,272 27,274 27,277 27,274 27,276


Item [USD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Electricity 57,825 57,449 57,363 56,933 56,364 56,116 55,644 55,377 55,920 56,474

Wood Chip 186,571 187,895 188,384 189,910 189,264 190,986 192,629 193,650 194,502 196,252

Fuel total 244,396 245,345 245,747 246,843 245,628 247,102 248,273 249,027 250,422 252,726


Overhaul 296,285 296,285 296,285 296,285 296,285 296,285 296,285 296,285 296,285 296,285


Insurance 27,277 27,279 27,280 27,283 27,280 27,283 27,286 27,288 27,292 27,297


Item [USD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Electricity 56,654 56,360 56,867 56,304 55,837 55,435 55,424 55,080 55,504 55,282

Wood Chip 195,644 197,561 199,102 200,317 199,636 199,356 200,173 202,095 202,560 204,565

Fuel total 252,298 253,921 255,969 256,621 255,472 254,791 255,597 257,175 258,064 259,847


Overhaul 296,285 296,285 296,285 296,285 296,285 296,285 296,285 296,285 296,285 296,285


Insurance 27,296 27,300 27,306 27,307 27,304 27,303 27,305 27,309 27,311 27,315




The detail of debt service account [USD] for each of the options is presented in Table 10-49,

Table 10-50 and Table 10-51. The debt considers 50% of the total CAPEX, with a debt period of

30 years and a 4% effective interest rate.


Table 10-128 - Debt service account [USD] district heating with wood chip

Item [USD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Opening balance - 4,030,744 3,958,875 3,884,132 3,806,399 3,725,556 3,641,480 3,554,041 3,463,105 3,368,530 3,270,173

Total payment - 233,098 233,098 233,098 233,098 233,098 233,098 233,098 233,098 233,098 233,098



Closing balance - 3,958,875 3,884,132 3,806,399 3,725,556 3,641,480 3,554,041 3,463,105 3,368,530 3,270,173 3,167,882

Item [USD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Opening balance 3,167,882 3,061,499 2,950,861 2,835,797 2,716,130 2,591,677 2,462,246 2,327,638 2,187,645 2,042,052

Total payment 233,098 233,098 233,098 233,098 233,098 233,098 233,098 233,098 233,098 233,098



Closing balance 3,061,499 2,950,861 2,835,797 2,716,130 2,591,677 2,462,246 2,327,638 2,187,645 2,042,052 1,890,636

Item [USD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Opening balance 1,890,636 1,733,163 1,569,391 1,399,069 1,221,933 1,037,712 846,122 646,869 439,645 224,133

Total payment 233,098 233,098 233,098 233,098 233,098 233,098 233,098 233,098 233,098 233,098



Closing balance 1,733,163 1,569,391 1,399,069 1,221,933 1,037,712 846,122 646,869 439,645 224,133 -


Table 10-129 - Debt service account [USD] district heating with cogeneration

Item [USD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Opening balance - 4,106,482 4,033,263 3,957,115 3,877,921 3,795,560 3,709,904 3,620,822 3,528,177 3,431,826 3,331,620

Total payment - 237,478 237,478 237,478 237,478 237,478 237,478 237,478 237,478 237,478 237,478



Closing balance - 4,033,263 3,957,115 3,877,921 3,795,560 3,709,904 3,620,822 3,528,177 3,431,826 3,331,620 3,227,407

Item [USD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Opening balance 3,227,407 3,119,025 3,006,308 2,889,082 2,767,167 2,640,375 2,508,512 2,371,374 2,228,751 2,080,423

Total payment 237,478 237,478 237,478 237,478 237,478 237,478 237,478 237,478 237,478 237,478



Closing balance 3,119,025 3,006,308 2,889,082 2,767,167 2,640,375 2,508,512 2,371,374 2,228,751 2,080,423 1,926,161

Item [USD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Opening balance 1,926,161 1,765,730 1,598,880 1,425,357 1,244,893 1,057,211 862,021 659,024 447,906 228,344

Total payment 237,478 237,478 237,478 237,478 237,478 237,478 237,478 237,478 237,478 237,478



Closing balance 1,765,730 1,598,880 1,425,357 1,244,893 1,057,211 862,021 659,024 447,906 228,344 -


Table 10-130 - Debt service account [USD] district heating with ground source heat pumps

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Opening balance - 4,960,708 4,872,258 4,780,270 4,684,603 4,585,109 4,481,635 4,374,022 4,262,105 4,145,711 4,024,661

Total payment - 286,878 286,878 286,878 286,878 286,878 286,878 286,878 286,878 286,878 286,878



Closing balance - 4,872,258 4,780,270 4,684,603 4,585,109 4,481,635 4,374,022 4,262,105 4,145,711 4,024,661 3,898,769

2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Opening balance 3,898,769 3,767,842 3,631,677 3,490,066 3,342,790 3,189,624 3,030,330 2,864,665 2,692,374 2,513,190

Total payment 286,878 286,878 286,878 286,878 286,878 286,878 286,878 286,878 286,878 286,878



Closing balance 3,767,842 3,631,677 3,490,066 3,342,790 3,189,624 3,030,330 2,864,665 2,692,374 2,513,190 2,326,840

2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Opening balance 2,326,840 2,133,035 1,931,478 1,721,859 1,503,855 1,277,131 1,041,338 796,113 541,080 275,844

Total payment 286,878 286,878 286,878 286,878 286,878 286,878 286,878 286,878 286,878 286,878



Closing balance 2,133,035 1,931,478 1,721,859 1,503,855 1,277,131 1,041,338 796,113 541,080 275,844 -

Item [USD]

Item [USD]

Item [USD]


CASH FLOW STATEMENT

The estimated cash flow [MUSD] for each alternative is presented in Table 10-531, Table 10-54

and Table 10-55.


Item [MMUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Energy sales - 1.18 1.18 1.18 1.18 1.18 1.18 1.18 1.18 1.18 1.18

Fuel cost - (0.25) (0.25) (0.25) (0.25) (0.25) (0.25) (0.25) (0.25) (0.25) (0.25)


Insurance - (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02)

Gross profit - 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60


EBITDA - 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.55 0.55 0.55

Depreciation - (0.77) (0.77) (0.77) (0.77) (0.77) (0.77) (0.03) (0.03) (0.03) (0.03)


EBIT - (0.29) (0.29) (0.29) (0.30) (0.30) (0.30) 0.44 0.43 0.43 0.42

Interest - (0.16) (0.16) (0.15) (0.15) (0.15) (0.14) (0.14) (0.14) (0.13) (0.13)

Tax - - - - - - - (0.10) (0.10) (0.11) (0.11)


Depreciation - 0.77 0.77 0.77 0.77 0.77 0.77 0.03 0.03 0.03 0.03

Investment (4.00) - - - - - - - - - -


Free cash flow (4.00) 0.33 0.33 0.33 0.33 0.33 0.33 0.22 0.22 0.22 0.22


Item [MMUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Energy sales 1.18 1.18 1.18 1.18 1.18 1.18 1.18 1.18 1.18 1.18

Fuel cost (0.26) (0.26) (0.26) (0.26) (0.26) (0.26) (0.26) (0.26) (0.26) (0.26)


Insurance (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02)

Gross profit 0.60 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59


EBITDA 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55

Depreciation (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) - - - -


EBIT 0.42 0.41 0.40 0.40 0.39 0.39 0.41 0.41 0.40 0.40

Interest (0.13) (0.12) (0.12) (0.11) (0.11) (0.10) (0.10) (0.09) (0.09) (0.08)

Tax (0.11) (0.11) (0.11) (0.11) (0.11) (0.11) (0.12) (0.12) (0.12) (0.13)


Depreciation 0.03 0.03 0.03 0.03 0.03 0.03 - - - -

Investment - - - - - - - - - -


Free cash flow 0.21 0.21 0.21 0.21 0.21 0.20 0.20 0.19 0.19 0.19



Table 10-131 – Cash flow statement [MUSD], district heating with wood chip

Item [MMUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Energy sales 1.18 1.18 1.18 1.18 1.18 1.18 1.18 1.18 1.18 1.18

Fuel cost (0.26) (0.26) (0.26) (0.26) (0.26) (0.26) (0.26) (0.26) (0.26) (0.27)


Insurance (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02)

Gross profit 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59


EBITDA 0.55 0.55 0.55 0.55 0.55 0.55 0.54 0.54 0.54 0.54

Depreciation - - - - - - - - - -


EBIT 0.39 0.39 0.38 0.37 0.36 0.36 0.35 0.34 0.33 0.32

Interest (0.07) (0.07) (0.06) (0.06) (0.05) (0.04) (0.03) (0.03) (0.02) (0.01)

Tax (0.13) (0.13) (0.13) (0.13) (0.13) (0.14) (0.14) (0.14) (0.14) (0.14)


Depreciation - - - - - - - - - -

Investment - - - - - - - - - -


Free cash flow 0.19 0.19 0.19 0.18 0.18 0.18 0.18 0.17 0.17 0.17



Item [MMUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Energy sales - 2.12 2.12 2.12 2.12 2.12 2.12 2.12 2.12 2.12 2.12


Fuel cost - (1.39) (1.38) (1.40) (1.42) (1.38) (1.39) (1.40) (1.44) (1.44) (1.47)


Insurance - (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03)

Gross profit - 0.66 0.66 0.65 0.62 0.67 0.65 0.64 0.60 0.61 0.57


EBITDA - 0.61 0.62 0.60 0.58 0.62 0.60 0.60 0.55 0.56 0.53

Depreciation - (0.76) (0.76) (0.76) (0.76) (0.76) (0.76) (0.03) (0.03) (0.03) (0.03)


EBIT - (0.22) (0.22) (0.24) (0.26) (0.22) (0.25) 0.48 0.43 0.43 0.40

Interest - (0.16) (0.16) (0.16) (0.15) (0.15) (0.15) (0.14) (0.14) (0.14) (0.13)

Tax - - - - - - - (0.11) (0.10) (0.11) (0.10)


Depreciation - 0.76 0.76 0.76 0.76 0.76 0.76 0.03 0.03 0.03 0.03

Investment 4.07 - - - - - - - - - -


Free cash flow 4.07 0.38 0.38 0.37 0.34 0.39 0.37 0.25 0.21 0.22 0.20


Item [MMUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Energy sales 2.12 2.12 2.12 2.12 2.12 2.12 2.12 2.12 2.12 2.12


Fuel cost (1.45) (1.46) (1.45) (1.39) (1.37) (1.37) (1.37) (1.40) (1.39) (1.44)


Insurance (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03)

Gross profit 0.59 0.58 0.58 0.65 0.67 0.67 0.67 0.64 0.64 0.60


EBITDA 0.55 0.54 0.54 0.61 0.63 0.63 0.63 0.60 0.60 0.55

Depreciation (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) - - - -


EBIT 0.41 0.40 0.39 0.46 0.47 0.47 0.49 0.46 0.45 0.40

Interest (0.13) (0.12) (0.12) (0.11) (0.11) (0.10) (0.10) (0.09) (0.09) (0.08)

Tax (0.11) (0.10) (0.11) (0.13) (0.13) (0.13) (0.14) (0.14) (0.14) (0.13)


Depreciation 0.03 0.03 0.03 0.03 0.03 0.03 - - - -

Investment - - - - - - - - - -


Free cash flow 0.21 0.20 0.20 0.25 0.26 0.26 0.25 0.23 0.23 0.19



Table 10-132 – Cash flow statement [MUSD], district heating with cogeneration

Item [MMUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Energy sales 2.12 2.12 2.12 2.12 2.12 2.12 2.12 2.12 2.12 2.12


Fuel cost (1.46) (1.44) (1.42) (1.44) (1.44) (1.47) (1.46) (1.44) (1.43) (1.40)


Insurance (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03)

Gross profit 0.58 0.60 0.61 0.60 0.59 0.57 0.57 0.59 0.60 0.63


EBITDA 0.54 0.55 0.57 0.56 0.55 0.52 0.53 0.55 0.56 0.59

Depreciation - - - - - - - - - -


EBIT 0.38 0.39 0.40 0.38 0.36 0.33 0.33 0.34 0.34 0.36

Interest (0.08) (0.07) (0.06) (0.06) (0.05) (0.04) (0.03) (0.03) (0.02) (0.01)

Tax (0.12) (0.13) (0.14) (0.13) (0.13) (0.13) (0.13) (0.14) (0.15) (0.16)


Depreciation - - - - - - - - - -

Investment - - - - - - - - - -


Free cash flow 0.18 0.19 0.20 0.19 0.18 0.16 0.16 0.17 0.18 0.20



Item [MMUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Energy sales - 1.37 1.37 1.37 1.37 1.37 1.37 1.37 1.37 1.37 1.37

Fuel cost - (0.24) (0.24) (0.24) (0.24) (0.24) (0.24) (0.24) (0.24) (0.24) (0.24)


Insurance - (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03)

Gross profit - 0.73 0.73 0.73 0.73 0.73 0.73 0.73 0.73 0.73 0.73


EBITDA - 0.69 0.69 0.69 0.69 0.69 0.69 0.69 0.68 0.68 0.68

Depreciation - (0.80) (0.80) (0.80) (0.80) (0.80) (0.80) (0.03) (0.03) (0.03) (0.03)


EBIT - (0.21) (0.21) (0.21) (0.22) (0.22) (0.22) 0.55 0.54 0.54 0.53

Interest - (0.20) (0.19) (0.19) (0.19) (0.18) (0.18) (0.17) (0.17) (0.16) (0.16)

Tax - - - - - - - (0.13) (0.13) (0.13) (0.13)


Depreciation - 0.80 0.80 0.80 0.80 0.80 0.80 0.03 0.03 0.03 0.03

Investment (4.91) - - - - - - - - - -


Free cash flow (4.91) 0.40 0.40 0.40 0.40 0.40 0.40 0.27 0.27 0.27 0.27


Item [MMUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Energy sales 1.37 1.37 1.37 1.37 1.37 1.37 1.37 1.37 1.37 1.37

Fuel cost (0.24) (0.24) (0.24) (0.24) (0.24) (0.24) (0.24) (0.24) (0.24) (0.24)


Insurance (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03)

Gross profit 0.73 0.73 0.72 0.73 0.72 0.72 0.72 0.73 0.73 0.73


EBITDA 0.68 0.68 0.68 0.68 0.68 0.68 0.68 0.68 0.68 0.68

Depreciation (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) - - - -


EBIT 0.53 0.52 0.51 0.51 0.50 0.50 0.52 0.51 0.50 0.50

Interest (0.15) (0.15) (0.14) (0.14) (0.13) (0.13) (0.12) (0.11) (0.11) (0.10)

Tax (0.14) (0.14) (0.14) (0.14) (0.14) (0.14) (0.15) (0.15) (0.16) (0.16)


Depreciation 0.03 0.03 0.03 0.03 0.03 0.03 - - - -

Investment - - - - - - - - - -


Free cash flow 0.26 0.26 0.26 0.26 0.26 0.25 0.25 0.24 0.24 0.24



Table 10-133 – Cash flow statement [MUSD], district heating with ground source heat pumps

Item [MMUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Energy sales 1.37 1.37 1.37 1.37 1.37 1.37 1.37 1.37 1.37 1.37

Fuel cost (0.24) (0.24) (0.24) (0.24) (0.24) (0.24) (0.24) (0.25) (0.25) (0.25)


Insurance (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03)

Gross profit 0.73 0.73 0.73 0.73 0.72 0.72 0.72 0.72 0.72 0.72


EBITDA 0.68 0.68 0.68 0.68 0.68 0.68 0.68 0.68 0.68 0.68

Depreciation - - - - - - - - - -


EBIT 0.49 0.48 0.48 0.47 0.46 0.45 0.44 0.43 0.42 0.40

Interest (0.09) (0.08) (0.08) (0.07) (0.06) (0.05) (0.04) (0.03) (0.02) (0.01)

Tax (0.16) (0.16) (0.16) (0.17) (0.17) (0.17) (0.17) (0.17) (0.18) (0.18)


Depreciation - - - - - - - - - -

Investment - - - - - - - - - -


Free cash flow 0.24 0.24 0.24 0.23 0.23 0.23 0.22 0.22 0.22 0.21





Table 10-58 and Table 10-59.


Item [MMUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Operating revenues

Energy sales 0.00 1.18 1.18 1.18 1.18 1.18 1.18 1.18 1.18 1.18 1.18

Total revenue 0.00 1.18 1.18 1.18 1.18 1.18 1.18 1.18 1.18 1.18 1.18

Operating costs

Fuel 0.00 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25


Overhaul 0.00 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24


Insurance 0.00 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02





Income taxes 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.10 0.10 0.10 0.11

Net earnings 0.00 0.39 0.40 0.40 0.40 0.40 0.41 0.31 0.31 0.31 0.31

Item [MMUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Operating revenues

Energy sales 1.18 1.18 1.18 1.18 1.18 1.18 1.18 1.18 1.18 1.18

Total revenue 1.18 1.18 1.18 1.18 1.18 1.18 1.18 1.18 1.18 1.18

Operating costs

Fuel 0.25 0.25 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26


Overhaul 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24


Insurance 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02





Income taxes 0.11 0.11 0.11 0.11 0.11 0.11 0.12 0.12 0.12 0.12

Net earnings 0.32 0.32 0.32 0.32 0.33 0.33 0.33 0.33 0.33 0.34


Table 10-134 - Profit and Loss Statement [MUSD], district heating with wood chip

Item [MMUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Operating revenues

Energy sales 1.18 1.18 1.18 1.18 1.18 1.18 1.18 1.18 1.18 1.18

Total revenue 1.18 1.18 1.18 1.18 1.18 1.18 1.18 1.18 1.18 1.18

Operating costs

Fuel 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26


Overhaul 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24


Insurance 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02





Income taxes 0.13 0.13 0.13 0.13 0.13 0.14 0.14 0.14 0.14 0.14

Net earnings 0.34 0.35 0.35 0.35 0.36 0.37 0.37 0.38 0.38 0.39


Item [MMUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Operating revenues

Energy sales 0.00 2.12 2.12 2.12 2.12 2.12 2.12 2.12 2.12 2.12 2.12


Total revenue 0.00 2.38 2.38 2.38 2.38 2.38 2.38 2.38 2.38 2.37 2.37

Operating costs

Fuel 0.00 1.47 1.46 1.36 1.45 1.37 1.44 1.45 1.36 1.46 1.36


Overhaul 0.00 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25


Insurance 0.00 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03





Income taxes 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.10 0.12 0.10 0.13

Net earnings 0.00 0.34 0.35 0.45 0.37 0.44 0.39 0.27 0.34 0.27 0.35

Item [MMUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Operating revenues

Energy sales 2.12 2.12 2.12 2.12 2.12 2.12 2.12 2.12 2.12 2.12


Total revenue 2.37 2.37 2.37 2.37 2.37 2.37 2.37 2.37 2.37 2.38

Operating costs

Fuel 1.37 1.45 1.42 1.39 1.39 1.47 1.38 1.48 1.37 1.37


Overhaul 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25


Insurance 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03





Income taxes 0.13 0.10 0.11 0.12 0.12 0.10 0.14 0.11 0.14 0.15

Net earnings 0.35 0.28 0.31 0.34 0.34 0.29 0.35 0.28 0.36 0.37


Table 10-135 - Profit and Loss Statement [MUSD], district heating with cogeneration

Item [MMUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Operating revenues

Energy sales 2.12 2.12 2.12 2.12 2.12 2.12 2.12 2.12 2.12 2.12


Total revenue 2.38 2.38 2.38 2.38 2.38 2.38 2.38 2.37 2.38 2.38

Operating costs

Fuel 1.43 1.48 1.44 1.45 1.43 1.42 1.40 1.44 1.38 1.40


Overhaul 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25


Insurance 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03





Income taxes 0.13 0.12 0.13 0.13 0.14 0.14 0.15 0.14 0.16 0.16

Net earnings 0.33 0.30 0.34 0.33 0.35 0.36 0.38 0.36 0.41 0.40


Item [MMUSD] 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Operating revenues

Energy sales 0.00 1.37 1.37 1.37 1.37 1.37 1.37 1.37 1.37 1.37 1.37

Total revenue 0.00 1.37 1.37 1.37 1.37 1.37 1.37 1.37 1.37 1.37 1.37

Operating costs

Fuel 0.00 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24


Overhaul 0.00 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30


Insurance 0.00 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03





Income taxes 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.13 0.13 0.13 0.13

Net earnings 0.00 0.48 0.49 0.49 0.50 0.50 0.50 0.38 0.38 0.38 0.39

Item [MMUSD] 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Operating revenues

Energy sales 1.37 1.37 1.37 1.37 1.37 1.37 1.37 1.37 1.37 1.37

Total revenue 1.37 1.37 1.37 1.37 1.37 1.37 1.37 1.37 1.37 1.37

Operating costs

Fuel 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24


Overhaul 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30


Insurance 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03





Income taxes 0.13 0.14 0.14 0.14 0.14 0.14 0.15 0.15 0.15 0.16

Net earnings 0.39 0.39 0.40 0.40 0.40 0.41 0.41 0.41 0.42 0.42


Table 10-136 - Profit and Loss Statement [MUSD], district heating with ground source heat pumps

Item [MMUSD] 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

Operating revenues

Energy sales 1.37 1.37 1.37 1.37 1.37 1.37 1.37 1.37 1.37 1.37

Total revenue 1.37 1.37 1.37 1.37 1.37 1.37 1.37 1.37 1.37 1.37

Operating costs

Fuel 0.25 0.25 0.25 0.25 0.25 0.24 0.24 0.25 0.25 0.25


Overhaul 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30


Insurance 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03





Income taxes 0.16 0.16 0.16 0.16 0.17 0.17 0.17 0.17 0.18 0.18

Net earnings 0.42 0.43 0.44 0.44 0.45 0.46 0.46 0.47 0.48 0.48

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