Dalkia to operate district heating network of Iasi, Romania's second largest city
Dalkia, via its subsidiary Dalkia Romania, has won the international call for tenders launched by Iasi, Romania's second most important financial and academic center. The public service management contract is to operate the city's district heating network for 20 years. It significantly strengthens Dalkia's position as the leading private operator in the Romanian heating market.
Following an international call for tenders, the Iasi municipal council appointed Dalkia to operate the city's district heating network. The contract, signed July 6 by representatives from the two parties, is for the generation, transmission, distribution and supply of heating for a period of 20 years. The public service management contract has been awarded to Dalkia Termo Iasi S.A., a special purpose entity held 90% by Dalkia Romania and 10% by the Iasi municipality.
In terms of its population, Iasi is Romania's second biggest city. It is the main urban center in the northeast of the country, and has a population of 320,000. Its district heating network supplies 45,000 housing units with heating and hot water via a 317 km distribution network. To feed the network, two main cogeneration plants with an installed capacity of 1,500 MW thermal and 150 MW electricity will produce both heat and electricity during the heating season.
Under the terms of the contract, Dalkia Termo Iasi commits to:
- ensure a continuous supply of heating and hot water for the buildings connected to the network;
- keep tight control over changes to the cost of heating by putting in place a forward-planning mechanism that incorporates changing fuel prices and socioeconomic data;
- invest in the heating network's technical development;
- develop an extensive policy to promote the network to potential users and improve customer relations.
As soon as the contract comes into effect, network customers will benefit from a 25% reduction in the price of heating and hot water compared with the sale price calculated by the former operator.
"District heating is essential for the future of our city, despite the difficulties the system has recently undergone. Awarding its management under concession to a highly experienced specialist operator gives us the guarantee that our residents will benefit from continuous, good quality service for the next 20 years."
"With this latest contract, Dalkia has consolidated its position with Romanian municipalities as a competitive player that can offer sustainability in the heating market. Our expertise in energy and environmental efficiency lets us build a long-term partnership with cities and offer solutions that are tailor-made to their precise needs."
In Romania, Dalkia is a benchmark in the energy sector. Its references include operation of the Ploiesti district heating network under a public service management contract since 2004. Through this contract, its expertise as leader in local energy production has enabled it to lower the use of primary fuels by 30% and reduce CO2 emissions.
For Dalkia Romania, the new contract is worth additional revenue of 30 million euros from the first year of operation.