Influence of different technologies on dynamic pricing in district heating systems: Comparative case studies

Dominik Franjo Dominkovic*, Mikko Wahlroos, Sanna Syri, Allan Schrøder Pedersen

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

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Abstract

District heating markets are often dominated by monopolies in both Denmark and Finland. The same companies, often owned by local municipalities, are usually operating both supplying plants and district heating networks, while the pricing mechanisms are rigid, often agreed upon for one year in advance. The mentioned ownership scheme may cause problems, when one tries to gain a third party access in order to deliver excess heat or heat from cheaper heating plants. In this paper, two case studies were carried out to simulate the district heating systems based on dynamic pricing. Case studies were carried out for Sønderborg, Denmark and Espoo, Finland. The results showed that dynamic pricing fosters feeding the waste heat into the grid, as dynamic pricing reduced the total primary energy consumption and CO2 emissions in both case studies. In the best scenarios, the weighted average heat price decreased by 25.6% in Sønderborg and 6.6% in Espoo, respectively.
Original languageEnglish
JournalEnergy
Volume153
Pages (from-to)136-148
ISSN0360-5442
DOIs
Publication statusPublished - 2018

Keywords

  • District heating
  • Heat production
  • Dynamic pricing
  • Waste heat
  • Renewable heat
  • Combined heat and power (CHP)

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