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INVESTING IN RENEWABLE ENERGY: THE GEF EXPERIENCE

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INVESTING IN RENEWABLE ENERGY: THE GEF EXPERIENCE ( investing-in-renewable-energygef-experience )

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CASE STUDY: LATVIA—BIOMASS COMBUSTION Co-generation in the Palm Oil Mills in Malaysia The project aimed to: (1) promote the use of wood waste by removing or reducing barriers to replacing imported heavy fuel oil (mazut) with local, sustainably produced wood waste in municipal heating systems; (2) promote the development and implementation of an economical, commercially run, municipal heating system, providing generation, transmission, and distribution in the municipality of Ludza; and (3) help remove or reduce technical, legislative, institutional, organizational, economic, information-related, and financial barriers related to the replication of a pilot project in the municipality. OUTCOMES Since project inception, 11,200 tonnes of CO2 emissions have been avoided annually in Ludza, accounting for about 80 percent of the emissions from using heating oil. The project and the financial scheme developed through the project have encouraged more than 12 other municipalities to make use of forest wastes in their district heating networks, resulting in over 100,000 tonnes of CO2 avoided annually. Project Title: Economic and Cost-Effective Use of Wood Waste for Municipal Heating Systems GEF Agency: Cofinancing: OBJECTIVE UNDP US$2.7 million GEF: US$0.8 million Dates of Implementation: 2001–05 This project was designed to remove barriers to the widespread use of wood waste for heat and hot water delivery at municipal levels in Latvia. It was intended to coinvest in four–six biomass-based municipal heating systems and to lay the foundation for future investments in other municipalities. The project was to correspond to all elements included in Latvian energy policy and is expected to assist the government of Latvia in meeting its goal of an 8 percent reduction in greenhouse gas emissions from 1990 levels by the year 2010. INVESTING IN RENEWABLE ENERGY: THE GEF EXPERIENCE 27

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