MARKETING OF RENEWABLE ENERGY SOURCES ...

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MARKETING OF RENEWABLE ENERGY SOURCES IN THE REGION KOŠICKÁ KOTLINA

Prof. Dr. Adriana Csikósová Assoc. Prof. Dr. Katarína Čulková Dr. Marcela Taušová Technical University in Košice, Slovakia

ABSTRACT Slovak republic has to produce till 2020 from total energy consumption 14% through using of renewable energy sources, which presents 65,8 PJ. In spite Slovakia disposes with significant technical potential for using of renewable energy sources, in comparing with market potential it is rather low value. Big part of this potential loss its economical potential that means theoretically it is possible to use renewable energy sources in greater measure, but it is restrained by financial demand or economical inadvisability. Using of alternative energy sources is hindered mainly by geographical limitations, but also by their not sufficient using in areas, where there are proper conditions, but weak interest of community due to the low informing. Contribution gives results of research of the individual types of renewable energy sources in concrete region of Slovak Republic. This region presents Košická kotlina, where there was made detail marketing analysis of individual types of renewable energy sources and strategy, recommended in connection with their using and support in the region. Keywords: region Košická kotlina, renewable energy sources, marketing analysis, strategy INTRODUCTION Position of region Košická kotlina, illustrated by Figure 1, is situated in south-east part of river Torysa that is flowing to river Hornád. At south-west part of hollow basin there is river Bodva with Ida inflow. Region is surrounded by mountain Slanské vrchy from east part, Šarišská vrchovina and Čergov from north part and Volovské vrchy from west part. Surrounding of hollow basin around cities Moldava nad Modvou and Košice has character of lowland. Although Košická kotlina does not belong among protected areas as a whole, from east-west part it reaches to the area of National park – Slovakian paradise [4]. In the area there are several water reservoirs, used also for recreation or water using. Bukovec or Ružín are the best known ones [4]. Region consists from seven counties, where belong 240 communities together. According data from Statistical Office of Slovakia in the region 575 575 inhabitants lived to 31th December 2013 [5].

14th International Multidisciplinary Scientific GeoConference SGEM 2014

Fig. 1 Region Košická kotlina [4] PRESENT MARKETING SITUATION OF RENEWABLE ENERGY SOURCES IN REGION KOŠICKÁ KOTLINA Prices of electricity, produced from renewable energy sources (RES) and high effective combined production are determined by URSO – Office for regulation of net branches through generally binding legal decree. During stating of price there is regarding type of renewable energy source, used technology, term of equipment installment to service for electricity production and volume of installed performance of equipment. During prices of electricity there is regarded also reconstruction and modernization of equipment. Price of electricity can be increased by coefficient that regards used technology and core inflation. In case there was provided support for producer of electricity with aim to purchase equipment from supporting programs, financed from state budget or from EU funds, price of electricity is decreased. Price of electricity is determined by URSO for following period that will not overreach three years, and price cannot be lower than 90% of price level, applicable in given year [7]. In the region there is high unemployment that presents 19, 17% and its still growing. Cities Košice and Prešov are economically strongest area in the region, with unemployment 10, 53% and 11%. But on the other hand permanently increasing prices of traditional energy sources create pressure that could influence people to positive attitude towards RES using [1]. From practice skills, connected with operation of equipment for RES production and according technical potential and economical productiveness, most perspective using of technologies in the region are in following ranking: 1. burning of wood biomass for heat production 2. burning of agricultural biomass for heat production 3. geothermal bore hole and stocks of heat 4. thermal solar collectors [3].

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Mentioned technologies present from economical point of view natoľko convenient source of energy and heat that their installment is not limited to using of investment support [3]. Technologies as for example: 1. wind turbines 2. small hydroelectric plants 3. biogas stations Are indeed perspective and they have sufficient potential in the region, but their installment is connected mainly with private investors [3]. Economically convenient sources of energy are considered following: 1. production of electricity from solar energy (photovoltaic) 2. production of electricity from biomass (cogeneration, gasification of solid biomass) 3. production of electricity from geothermal energy. There is assumed their economical advance would change in the future. Main barriers present high investment costs [3]. In region Košická kotlina biomass has vast potential and it is one of most prosperous sources for energy production or heat production. Technically used potential of biomass in region presents around 15% from total production of electric energy. But economical potential is decreased mainly due to high investment costs, difficult logistics of biomass, growing prices of biomass, problems with donations, limited possibilities for using during summer period. Therefore production of electricity from biomass is not so interesting fro investors. Theoretical potential for heat production in the area presents around 35% from total heat production. Assumption is that biomass for heating would be used mainly by inhabitants of houses, for which its stocking does not present so big problem as for using of biomass in industry, where there is necessary big volume of biomass for covering of needs. Building of stations for production and using of biogas from excrements of farmer animals is theoretically possible, but from technical point of view and from the view of sources availability there is necessary to build in surrounding of any cooperatives of the region farming of farmer animals. Figure 2 illustrates review of chosen biomass type prices, available in the region.

Fig. 2 Prices of individual biomass types


In Košická kotlina river Torysa, Hornád and Bodva with inflow Ida have greatest potential. They present mountain – lowland type of rivers, which have biggest inflows in March and lowest inflow in September. Surrounding of region is acceptable for using of water energy and water flows could be used more, since present situation in the region Košická kotlina presents using of water less than 50% of available technical potential. Flowing in this type of rivers during the year is significantly changing and therefore they are ideal for construction of hydroelectric power plants. From the view of investment and from the view of negative influences to living environment more and more small water hydroelectric power plants, as well as big water hydroelectric plants are used in the area. From SWOT analysis of possible water energy using in the region results dominion of weaknesses over strengths, but in the region there is potential that should be intensively developed and it should use water energy that is one of cheapest renewable energy source. There is necessary to remove gradually shortages that hinder development and building of new hydroelectric plants from the side of state and its support. Table 1 Small and big hydroelectric power plant in region Košická kotlina Company

Title of small hydroelectric plant

Total installed capacity MW

CES BETA, s.r.o.

MVE T2 Košice

0,135

CES BETA, s.r.o.

MVE Ťahanovce

0,44

CES BETA, s.r.o.

MVE Brezovica

0,111

MVE Družstevná pri Hornáde spol. s.r.o.

MVE Družstevná pri Hornáde

0,8

MVE OPÁTSKE, spol. s r.o.

MVE Vyšné Opátske

0,63

Východoslovenské vodárne a kanalizácie, štátny podnik Košice

MVE ÚV Bukovec

12

VE Ružín 1 a 2

VE Ružín 1 a 2

60

In the region potential is till 2020 for building of further 6 new small hydroelectric plants and 2 big hydroelectric plants, mainly at river Hornád. According research Košická kotlina proved as most perspective area for using of geothermal energy in Slovakia, part of the area is covered by zones, indicating potential till 1000 Mwt. Long term plan of company Geoterm Košice is known for construction of geothermal electric power plant and heat station in area of Bidovce, Svinica, Ďurkov and Olšovany, where there is made detail project with total heat performance 100 MWt, which could present greatest source in middle Europe. Heat production would present heating for city Košice and it would cover 48% of total heat production in heat station TEKO. This project should be considered as one of key projects in region Košická kotlina and therefore state’s support of the region should be certainty. In analyzed area and according research holes geothermal waters have temperature over 100°C and layer temperature in depth 3 km has temperature 143°C. Geothermal energy in region Košická kotlina presents total potential yet 1 200 MWt per year, but in present time there is possibility of using only 300 MWt per year.

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Table 2 Review of geothermal sources research in region Košická kotlina

In the region there is used solar energy for production of electric energy and heating of water. Area achieves average annual solar radiance approximately 1055 kWh·m-2, which presents proper condition for using of solar energy.

Fig. 3 Map of solar radiance in region Košická kotlina According report, published by Ministry of Economy in Slovakia, to 30th June 2013 124 photovoltaic power plants existed in the region Košická kotlina, connected to the net with their installed performance 40,656 MW, majority of the equipments have performance under 1 MW. Return on investment from solar collectors is developing individually, but most often in interval 8-20 years. Persistence of solar equipments is around 20-30 years; number of companies provides guarantee of system till 12 years. From the view of SWOT analysis defensive strategy would be ideal for using of solar energy. That means, solar energy presents sources that is strongly used in the region although conditions for its using are less convenient in comparing with countries with stronger solar radiance. Good availability of technologies and services for using of solar energy provides that its using in the region is popular and we can assume during removing of weaknesses its using could increase double. Most solar heat equipments are installed in households, which means personal consumption and therefore economical potential depends closely on buying ability of inhabitants as well as financial support of RES. Trend of solar technologies instalment has increasing character in the region. Every year there is assumed 20% annual growth of solar energy using. This trend is positive and therefore state’s support in this area is necessary as well [3]. Region Košická kotlina is situated in area, where meteorological conditions do not allow to use wind sufficiently for energy production, average speed of wind is around 4 m-s , which is yet not inconvenient situation, but areas with speed minimally 6 m-s are


considered as proper meteorological condition. Wind turbines could be noisy for inhabitants due to the air turbulence, and therefore their placing demands sufficiently proper choice of locality. Locality has important task also from the view of necessity to connect equipments to distribution nets and also from the view that equipment cannot reach to protected area. These factors exclude number of relatively proper localities in the region. Most proper using of this way for energy obtaining in areas, where there is financial or technical demanding of electric conducts providing. It does not mean technology with guarantees that capacity would be stable, therefore main motivation should be energy using for own consumption, not supplementation to net with goal to make profit. Wind energy in the region is lightly used not only due to the bad meteorological conditions and noise, demanded choice of proper locality, but also due to the not attractive prices of technology and instability. It presents less used source of energy, available in Košická kotlina. Its using could be increased in the future, but there is no assumption this source could be used more than any other RES. Rate of wind energy on energy production from RES presents only fewer than 5%. In present time any big projects are prepared in this region. Ideal solution for stimulation of investors could be in this case support from state or autonomy by the way of documents creation that would include also data from research about meteorological conditions, made and financed by state. Energy of surrounding can be used in any place in region Košická kotlina. Due to the growing prices of heat using of energy from surrounding will be approved, since efficiency of heat pump presents 60-70% rate for heat production during optimal conditions, which considerably limits using of fossil fuels for heating and it influence living environment positively. Potential for using of surrounding energy is almost in any place of Slovakia, but high investment costs are barrier for its full using. Installment of heat pumps to already existing buildings is financially demanded. Using of surrounding energy has long tradition in the region, mainly due to passive buildings, using solar energy. Mainly glass surface are used, since air is more easily heated through them in buildings [6]. Energy of surrounding is similarly as energy from biomass or geothermal energy good choice for region and offensive marketing strategy is convenient with orientation to development of the area and innovation providing. Price of heat pumps and difficult instalment to already existing buildings presents main inconvenience. But both barriers cannot stop using of surrounding energy and there is assumed permanent growth of its using. RESULTS AND DISCUSSION From the view of energetic balance of Košická kotlina region RES present in spite of their development still only negligible rate on heat and electric energy production. Due to the improving of situation, closely connected with RES using in region Košická kotlina, it would be necessary to accept number of measurements and to orientate to support and help of inhabitants, willing to contribute to RES development. We mention several most serious problems, since their removing could increase RES using. Suggested measurements for Slovakia and correspondent autonomies:

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changes in legislation from the view of state’s support for using of RES, mainly for personal entity. Establishment of conveniences also for corporate entity.

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simplifying of ways for obtaining of irreclaimable support from EU and Slovakia for RES development and using

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removing of time consuming processes for applications processing and allowances for RES using, inflexibility of activities and preferring of political or economical interests at correspondent offices in region

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providing of convenient bank’s credits for support of RES using, for purchase of technologies and services, connected with technologies instalment

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regular creation of actual studies and reports about possibilities of projects feasibility, orientated to RES using. Researches, financed by state and preparation of projects about possibilities of RES using, which could be affecting mainly as stimulus of investors

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establishment of information system about possibilities of RES using in the region

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organizing of expert seminars about possibilities of RES using and support EU programs in region Košická kotlina

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creation of agency or information and advisory institution that would provide services for whole public, including common inhabitants, companies and institutions

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initiation of information campaign about RES using possibilities for inhabitants in region Košická kotlina in all available forms and media

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building of energetic infrastructure in region Košická kotlina

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coordination of communities and their preparation for RES problem solving

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determination of fix repurchase prices of RES

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finding of new possibilities for financing of RES using and support in region Košická kotlina

Increasing of RES using in Košická kotlina could have positive consequences for whole region. First of all employment in the region could increase – potential presents 1000 – 1500 new working posts. Region can have benefit also from decreasing of energetic dependence, mainly on supplementation of fossil fuels, where prices are permanently increasing. Improving of living environment quality is contribution for region as well, due to decreasing of hot – house gas and waste production. Investment costs and absence of state’s support, as well as informing, present biggest barriers for RES using. Such barriers reach to any RES source, not only in region Košická kotlina, but in whole Slovakia, and therefore there is necessary to accept measurements for removing of the barriers.


According results we can see the biggest potential in Košická kotlina belongs to: solar energy, geothermal energy, energy from biomass and energy from surrounding. Water energy is less used; in spite its potential is relatively high. Wind energy is lowest perspective source of energy in the region, and therefore less finances, time and research is invested to it in the region. Acknowledgements Contribution is partial result of project solving VEGA MŠVVaŠ SR 1/0176/13 and 1/1033/12.

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