Demand management of buildings in thermal networks: Project Summary Report (Annex 84): Energy in Buildings and Communities Technology Collaboration Programme

The integration of buildings into the energy system introduces both opportunities and challenges for district heating and cooling (DHC) utilities. While demand response (DR) strategies and new pricing models can improve efficiency, barriers such as split incentives, regulatory constraints, and information asymmetries hinder their implementation. Additionally, knowledge gaps exist regarding cost-effective deployment and stakeholder engagement.

Research and interviews presented in the Subtask A deliverable indicate that households generally support DR schemes as long as comfort and control are maintained. A lack of transparency in DR programs can lead to frustration, emphasising the need for better communication. While many DHC providers acknowledge the potential of DR, they focus more on supply-side measures due to regulatory and knowledge barriers.

Key Recommendations combining both ends of the DR value chain (i.e. DHC customers and DHC utilities) for successful implementation of the DR programs, leading to a more sustainable and energy efficient DHC
sector are:

- Improve Communication: Ensure clear information about DR programs to enhance participation and user satisfaction.
- Development of Fair Pricing Models: Gradually introduce variable tariffs with protections for low-income households and support for energy-efficient renovations.
- Stronger promotion of Knowledge Sharing: Facilitate collaboration and best practice exchanges among DHC utilities.
- Addressing Regulatory Barriers: Advocate for policy adjustments to enable demand-side flexibility.
- Incentivize Customer Participation: Use financial, environmental, and energy-saving incentives to engage consumers effectively.

Also, the report aims to summarise the work of Subtask B indicating the complex relationship between building types and district heating and cooling (DHC) systems in Europe, with a focus on demand-side management (DSM), the technologies and strategies that can enhance energy efficiency, sustainability, and demand response in buildings connected to DHC network, the current technical state of DHC substations, and the overarching evaluation all technological elements discussed to assess their impact and significance, as well as to rate the flexibility of a proposed concept.

Moreover, the report aims to provide a comprehensive overview, delivered by Subtask C, of cutting-edge methods, frameworks, software, numerical tools, and algorithms relevant to smart thermal management of
individual buildings and building clusters connected to district heating and cooling networks. It covers aspects such as dynamic modelling, large data processing and analysis, automated fault detection, and digital twins for orchestrating smart thermal operations and demand response of buildings integrated into thermal grids. The focus is on achieving energy-efficient, cost-effective, and sustainable district heating and cooling systems.

The report presents the key findings from the questionnaire developed for Subtask D, which served as a standardised framework for collecting and documenting relevant information about 29 DSM implementations and projects in district heating (DH) networks.

Finally, this document should guide professionals, researchers, policymakers, and stakeholders interested in the latest advancements in building energy management that benefit district heating and cooling systems.