The extensive energy use in the European building sector creates opportunities for implementing energy conservation measures (ECMs) in residential buildings. If ECM are implemented in buildings that are connected to a district heating (DH) system, the operation of DH plants may be affected, which in turn may change both revenue and electricity production in cogeneration plants. In this study a local energy system, containing a DH supplier and its customer, has been analysed when implementing three ECMs: heat load control, attic insulation and electricity savings. This study is unique since it analyses economic and CO 2 impacts of the ECMs in both a user and a supplier perspective in combination with a deregulated European electricity market. Results show that for the local energy system electricity savings should be prioritised over a reduction in DH use, both from an economic and a global CO 2 perspective. For the DH supplier attic insulation demonstrates unprofitable results, even though this measure affects the expensive peak load boilers most. Heat load control is however financially beneficial for both the DH supplier and the residences. Furthermore, the relation between the fixed and variable DH costs is highlighted as a key factor for the profitability of the ECMs.

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One initiative to reduce greenhouse gas (GHG) emissions involves developing standards for GHG inventories. Companies and cities (regions) can use GHG inventories to compile and report their GHG emissions. Standards for corporate and city GHG inventories often claim that GHG inventories can be used for identifying emissions opportunities, building reduction strategies and setting, measuring and reporting emissions targets. Attributional emissions factors are generally used in corporate and city GHG inventories. For purchased electricity, heat and steam, this means using average emission factors for regional or national production of each energy carrier. Also contractual emissions factors can be used. Changes in emissions from affected production elsewhere are not included. For purchased electricity and district heating (DH), a GHG inventory can be improved by lowered purchases or by purchasing a different energy carrier. Furthermore, combined heat and power (CHP) technology can help reduce global GHG emissions in the supply and conversion of energy, as CHP production is more efficient than conventional separate production of electricity and heat. In CHP production, excess heat from electricity production is utilised for heating buildings, hot water, industry processes etc., either directly or through DH systems. This thesis analyses how emissions reduction measures based on corporate or city GHG inventories, carried out using GHG Protocol standards, affect global CO2 emissions when electricity or CHP-based DH is affected. The incentive of a GHG inventory to a company purchasing electricity and DH, and to a city regarding purchases and production of electricity and DH in its region, is analysed. This is done for GHG inventories conducted in a nation where electricity produced within the nation is regarded as CO2-lean (Sweden) and in a nation where it is more CO2-rich (Germany). The indirect incentive to the DH company to change its production, in order to improve the GHG inventory of its customers and of the city where the DH system is located, is also analysed. Consequential analyses are used to assess how global CO2 emissions are affected by changes in purchases or production of electricity and DH that are incentivised by the GHG inventories studied. These consequential analyses include changes in emissions from affected electricity production elsewhere. The results show that the strength of incentive to reduce purchase of electricity or CHP-based DH by a company or in a city can differ between GHG inventories and consequential analysis. This is most clear when electricity produced within the nation is regarded as CO2lean (Sweden) while affected electricity production elsewhere is CO2-rich. For replacing purchases of CHP-based DH with electricity, or vice versa, the incentive in a GHG inventory can be the reverse of that in a consequential analysis. Moreover, the incentive to lower the use of electricity is lost when contractual emissions factors with zero emissions, such as First, I wish to thank Anders Jonsson,...