Framework conditions for Nordic district heating - Similarities and differences, and why Norway sticks out

Eli Sandberg*, Daniel Møller Sneum, Erik Trømborg

*Corresponding author for this work

    Research output: Contribution to journalJournal articleResearchpeer-review

    Abstract

    The district heating (DH) sectors differ considerably among the Nordic countries: DH is an important contributor to heat supply in Denmark, Finland and Sweden, but in Norway it plays only a minor role. In this study, we compare historical, economic, jurisdictional, political and geographical framework conditions for DH and assess their impacts on the development of DH in the Nordic region. DH is subject to national and municipal regulations, with tax and subsidy schemes that are complex and vary between the countries. The total fuel prices induce differences in fuel distribution. Electricity is competitive, both in DH and individual heating in Norway. This study further suggests, by comparing the impacts and implications of differences in cost components in a model plant, that differences in profitability is currently small between the Nordic countries. However, historical and geographical factors, such as local commitment and differences in infrastructure, constitute the major difference in the penetration of DH. Adaptability, in terms of fuel flexibility, is important for the industry's survivability and electricity prices are crucial for the development of DH. Energy efficiency measures and competition from residential heat pumps are the industry's largest challenges.
    Original languageEnglish
    JournalEnergy
    Volume149
    Pages (from-to)105-119
    ISSN0360-5442
    DOIs
    Publication statusPublished - 2018

    Keywords

    • District heating
    • Energy policy
    • Framework conditions
    • Nordic

    Cite this

    @article{c707673aef49439dba0428f6f931b53b,
    title = "Framework conditions for Nordic district heating - Similarities and differences, and why Norway sticks out",
    abstract = "The district heating (DH) sectors differ considerably among the Nordic countries: DH is an important contributor to heat supply in Denmark, Finland and Sweden, but in Norway it plays only a minor role. In this study, we compare historical, economic, jurisdictional, political and geographical framework conditions for DH and assess their impacts on the development of DH in the Nordic region. DH is subject to national and municipal regulations, with tax and subsidy schemes that are complex and vary between the countries. The total fuel prices induce differences in fuel distribution. Electricity is competitive, both in DH and individual heating in Norway. This study further suggests, by comparing the impacts and implications of differences in cost components in a model plant, that differences in profitability is currently small between the Nordic countries. However, historical and geographical factors, such as local commitment and differences in infrastructure, constitute the major difference in the penetration of DH. Adaptability, in terms of fuel flexibility, is important for the industry's survivability and electricity prices are crucial for the development of DH. Energy efficiency measures and competition from residential heat pumps are the industry's largest challenges.",
    keywords = "District heating, Energy policy, Framework conditions, Nordic",
    author = "Eli Sandberg and Sneum, {Daniel M{\o}ller} and Erik Tr{\o}mborg",
    year = "2018",
    doi = "10.1016/j.energy.2018.01.148",
    language = "English",
    volume = "149",
    pages = "105--119",
    journal = "Energy",
    issn = "0360-5442",
    publisher = "Elsevier",

    }

    Framework conditions for Nordic district heating - Similarities and differences, and why Norway sticks out. / Sandberg, Eli; Sneum, Daniel Møller; Trømborg, Erik.

    In: Energy, Vol. 149, 2018, p. 105-119.

    Research output: Contribution to journalJournal articleResearchpeer-review

    TY - JOUR

    T1 - Framework conditions for Nordic district heating - Similarities and differences, and why Norway sticks out

    AU - Sandberg, Eli

    AU - Sneum, Daniel Møller

    AU - Trømborg, Erik

    PY - 2018

    Y1 - 2018

    N2 - The district heating (DH) sectors differ considerably among the Nordic countries: DH is an important contributor to heat supply in Denmark, Finland and Sweden, but in Norway it plays only a minor role. In this study, we compare historical, economic, jurisdictional, political and geographical framework conditions for DH and assess their impacts on the development of DH in the Nordic region. DH is subject to national and municipal regulations, with tax and subsidy schemes that are complex and vary between the countries. The total fuel prices induce differences in fuel distribution. Electricity is competitive, both in DH and individual heating in Norway. This study further suggests, by comparing the impacts and implications of differences in cost components in a model plant, that differences in profitability is currently small between the Nordic countries. However, historical and geographical factors, such as local commitment and differences in infrastructure, constitute the major difference in the penetration of DH. Adaptability, in terms of fuel flexibility, is important for the industry's survivability and electricity prices are crucial for the development of DH. Energy efficiency measures and competition from residential heat pumps are the industry's largest challenges.

    AB - The district heating (DH) sectors differ considerably among the Nordic countries: DH is an important contributor to heat supply in Denmark, Finland and Sweden, but in Norway it plays only a minor role. In this study, we compare historical, economic, jurisdictional, political and geographical framework conditions for DH and assess their impacts on the development of DH in the Nordic region. DH is subject to national and municipal regulations, with tax and subsidy schemes that are complex and vary between the countries. The total fuel prices induce differences in fuel distribution. Electricity is competitive, both in DH and individual heating in Norway. This study further suggests, by comparing the impacts and implications of differences in cost components in a model plant, that differences in profitability is currently small between the Nordic countries. However, historical and geographical factors, such as local commitment and differences in infrastructure, constitute the major difference in the penetration of DH. Adaptability, in terms of fuel flexibility, is important for the industry's survivability and electricity prices are crucial for the development of DH. Energy efficiency measures and competition from residential heat pumps are the industry's largest challenges.

    KW - District heating

    KW - Energy policy

    KW - Framework conditions

    KW - Nordic

    U2 - 10.1016/j.energy.2018.01.148

    DO - 10.1016/j.energy.2018.01.148

    M3 - Journal article

    VL - 149

    SP - 105

    EP - 119

    JO - Energy

    JF - Energy

    SN - 0360-5442

    ER -