The reconstruction (modernisation and automation) of the production units and the supply network is a project, which is being implemented within the 4th stage of the Rehabilitation of the District Heating Systems in Serbia Project, more commonly known as “KfW 4”, which is implemented within the German-Serbian financial cooperation by the Government of Germany and the Government of the Republic of Serbia (Ministry of Energy, Development and Environment Protection) through a loan arrangement of the German Development Bank - KfW. The aim of the program launched in 2001 is to advance district heating in the cities of the Republic of Serbia. The KfW 4 programme has started in 2012.
During 2009, with the consent of its founder, the Subotica Municipal Assembly, the Subotica DH PUC applied for funds at the KfW Development Bank with the aim to modernise and advance the company's production units and the supply network. The Subotica DH PUC met the requirements and criteria and the investment programme proposal was accepted. The project budget is 4,5 million euros and the loan conditions are: 2,5% interest rate, grace period of 4 years and repayment term of 12 years.
The funds are used for the continuation of the system retrofitting, since the company has already reconstructed about 70% of it during the recent years.
The project encompasses several sub-projects:
• reconstruction of the outdated thermal substations with the possibility of remote supervisory control of 30 MW total installed power. The beginning of the works has been foreseen for May 2014.
• Further improvement of the supervisory control system (SCADA) to facilitate the better and more efficient work of the production and supply system. The beginning of the works has been foreseen for May 2014.
• Continuing the reconstruction of main and street hot water pipeline in a total length of about 10,5 kms. The beginning of the works has been foreseen for June 2013.
• Construction of the CHP plant and the hot water network within the Hospital with approx. 500 kW thermal power based on natural gas. The beginning of the works has been foreseen for September 2014.
The general objectives of this project are to advance the energy efficiency of the DH system in Subotica and provide for a reliable and quality heating for residential houses, industry and commercial buildings by cutting the costs and diminishing environmental impacts.
The sub-projects shall provide the following specific, positive outcomes:
• The reconstruction of the thermal substations shall increase the accuracy in control and regulations, which will lead to reduced primary fuel consumption.
• The improvement of the SCADA system is necessary to achieve an efficient production and supply system. It is expected that the level of the whole system's exploitation will raise for 1% accompanied with an increase in the technical and organisational reliability of the system.
• The reconstruction of the hot water branch pipelines will reduce both heat and water losses and it will have a direct impact on the savings in primary fuel and in chemicals used for water preparation.
• The planned CHP plant will generate electrical power, while the new hot water supply network will provide higher reliability in thermal energy supply.