Economic incentives for flexible district heating in the nordic countries

Daniel Møller Sneum*, Eli Sandberg

*Corresponding author for this work

    Research output: Contribution to journalJournal articleResearchpeer-review

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    Abstract

    By analysing four types of district heating plants, ranging from fully integrated with an electricity system (combined heat and power and electric boiler) to no integration with an electricity system (wood chip boiler), operation and investment incentives for flexible district heating plants under current Danish, Finnish, Norwegian and Swedish framework conditions have been investigated. Hourly-based operation optimisation over 20 years using the modelling software energyPRO showed that the largest investment incentive in Finland, Norway and Sweden was for combined heat and power with an electric boiler. This is largely driven by subsidies. Conversely, the less-subsidised Danish case incentivised investment in wood chip boilers. Untaxed biomass is the major energy source in all scenarios, while electricity use is limited. Capacity component-based tariffs can eliminate operation of electric boilers, while less costly energy component-based tariffs can increase the operation of electric boilers. Heat storage was found to be a no-regrets solution for optimising operation and lowering costs in all cases.

    Original languageEnglish
    JournalInternational Journal of Sustainable Energy Planning and Management
    Volume16
    Pages (from-to)27-44
    ISSN2246-2929
    DOIs
    Publication statusPublished - 5 Jun 2018

    Keywords

    • District heating
    • Electricity grid tariffs
    • Energy taxation
    • Flexibility
    • Thermal storage

    Cite this

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    abstract = "By analysing four types of district heating plants, ranging from fully integrated with an electricity system (combined heat and power and electric boiler) to no integration with an electricity system (wood chip boiler), operation and investment incentives for flexible district heating plants under current Danish, Finnish, Norwegian and Swedish framework conditions have been investigated. Hourly-based operation optimisation over 20 years using the modelling software energyPRO showed that the largest investment incentive in Finland, Norway and Sweden was for combined heat and power with an electric boiler. This is largely driven by subsidies. Conversely, the less-subsidised Danish case incentivised investment in wood chip boilers. Untaxed biomass is the major energy source in all scenarios, while electricity use is limited. Capacity component-based tariffs can eliminate operation of electric boilers, while less costly energy component-based tariffs can increase the operation of electric boilers. Heat storage was found to be a no-regrets solution for optimising operation and lowering costs in all cases.",
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    Economic incentives for flexible district heating in the nordic countries. / Sneum, Daniel Møller; Sandberg, Eli.

    In: International Journal of Sustainable Energy Planning and Management, Vol. 16, 05.06.2018, p. 27-44.

    Research output: Contribution to journalJournal articleResearchpeer-review

    TY - JOUR

    T1 - Economic incentives for flexible district heating in the nordic countries

    AU - Sneum, Daniel Møller

    AU - Sandberg, Eli

    PY - 2018/6/5

    Y1 - 2018/6/5

    N2 - By analysing four types of district heating plants, ranging from fully integrated with an electricity system (combined heat and power and electric boiler) to no integration with an electricity system (wood chip boiler), operation and investment incentives for flexible district heating plants under current Danish, Finnish, Norwegian and Swedish framework conditions have been investigated. Hourly-based operation optimisation over 20 years using the modelling software energyPRO showed that the largest investment incentive in Finland, Norway and Sweden was for combined heat and power with an electric boiler. This is largely driven by subsidies. Conversely, the less-subsidised Danish case incentivised investment in wood chip boilers. Untaxed biomass is the major energy source in all scenarios, while electricity use is limited. Capacity component-based tariffs can eliminate operation of electric boilers, while less costly energy component-based tariffs can increase the operation of electric boilers. Heat storage was found to be a no-regrets solution for optimising operation and lowering costs in all cases.

    AB - By analysing four types of district heating plants, ranging from fully integrated with an electricity system (combined heat and power and electric boiler) to no integration with an electricity system (wood chip boiler), operation and investment incentives for flexible district heating plants under current Danish, Finnish, Norwegian and Swedish framework conditions have been investigated. Hourly-based operation optimisation over 20 years using the modelling software energyPRO showed that the largest investment incentive in Finland, Norway and Sweden was for combined heat and power with an electric boiler. This is largely driven by subsidies. Conversely, the less-subsidised Danish case incentivised investment in wood chip boilers. Untaxed biomass is the major energy source in all scenarios, while electricity use is limited. Capacity component-based tariffs can eliminate operation of electric boilers, while less costly energy component-based tariffs can increase the operation of electric boilers. Heat storage was found to be a no-regrets solution for optimising operation and lowering costs in all cases.

    KW - District heating

    KW - Electricity grid tariffs

    KW - Energy taxation

    KW - Flexibility

    KW - Thermal storage

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