Pricing district heating by marginal cost

Difs, Kristina; Trygg, Louise

doi:10.1016/j.enpol.2008.10.003

Cited by 49 publications

(20 citation statements)

References 6 publications

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“…Also included in the evaluation of economic performance for the DH system is the change in income from sold DH due to increased or decreased DH consumer use. Since the local DH supplier TVAB is in the process of adjusting its DH tariffs according to the actual seasonal production cost, the marginal DH costs, obtained from the optimisation model (see section [32,33]. Besides the marginal DH costs the DH supplier also has a fixed fee (power fee), which is 67 Euro/kW DH.…”

Section: Evaluation Of Economic Performance 421 District Heating Smentioning

confidence: 99%

Energy conservation measures in buildings heated by district heating – A local energy system perspective

Difs

Bennstam²,

Trygg

et al. 2010

Energy

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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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Section: Evaluation Of Economic Performance 421 District Heating Smentioning

confidence: 99%

Energy conservation measures in buildings heated by district heating – A local energy system perspective

Difs

Bennstam²,

Trygg

et al. 2010

Energy

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“…In an earlier study by some of the authors of this papers [4] it was found that the municipal DH system of Linköping, Sweden needs investments in new production capacity to be able to meet an increased heat demand with existing protability margins. These results initiated this study, where possible new investments in biomass gasication for the DH supplier are evaluated.…”

Section: Introductionmentioning

confidence: 99%

Biomass gasification opportunities in a district heating system

Difs

Wetterlund

Trygg

et al. 2010

Biomass and Bioenergy

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This paper evaluates the economic eects and the potential for reduced CO 2 emissions when biomass gasication applications are introduced in a Swedish district heating (DH) system. The gasication applications included in the study deliver heat to the DH network while producing renewable electricity or biofuels. Gasication applications included are: external superheater for steam from waste incineration (waste boost, WB), gas engine CHP (BIGGE), combined cycle CHP (BIGCC) and production of synthetic natural gas (SNG) for use as transportation fuel. Six scenarios are used, employing two time-perspectivesshort-term and medium-term -and diering in economic input data, investment options and technical system. To evaluate the economic performance an optimisation model is used to identify the most protable alternatives regarding investments and plant operation while meeting the DH demand. This study shows that introducing biomass gasication in the DH system will lead to economic benets for the DH supplier as well as reduce global CO 2 emissions. Biomass gasication signicantly increases the potential for production of high value products (electricity or SNG) in the DH system. However, which form of investment that is most protable is shown to be highly dependent on the level of policy instruments for biofuels and renewable electricity. Biomass gasication applications can thus be highly interesting for DH suppliers in the future, and may be a vital measure to reach the 2020 targets for greenhouse gases and renewable energy, given continued technology development and long-term policy instruments.

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“…The results show that this business strategy would lead to economic benefits not only for the industry but also for the DH providers, since it would result in higher electricity production in the DHS and subsequently in higher revenues from electricity sold. When CCP plants are assumed to be the marginal electricity sources, this strategy opens up a possibility for a reduction of global CO2 emissions [17] as well. Henning and Trygg [18] recognized the conversion of industrial processes to DH as a vital measure when redirecting the energy systems toward sustainability.…”

Section: Introductionmentioning

confidence: 99%

“…The conversion to absorption-cooling production would also result in reduced global CO2 emissions, when CCP plants are assumed to be the marginal electricity sources. In order to make the conversion to DH more economically attractive choice for the industry, Difs and Trygg [17] suggested applying the marginal costs for DH production as DH tariffs for the industry. The research was done through a case study which included the local DHS in Linköping, Sweden, and eight local industrial companies.…”

Section: Introductionmentioning

confidence: 99%

Economic and environmental benefits of converting industrial processes to district heating

Ilić¹,

Trygg²

2014

Energy Conversion and Management

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The aim of this study was to analyse the possibilities of converting industrial processes from electricity and fossil fuels to district heating in 83 companies in three Swedish counties.Effects on the local district heating systems were explored, as well as economic effects and impacts on global emissions of greenhouse gases. The study was conducted considering two different energy market conditions for the year 2030.The results show that there is a potential for increasing industrial district heating use in all analysed counties. The greatest potential regarding percentage is found in Jönköping, where the annual district heating use in the manufacturing companies could increase from 5 GWh to 45 GWh. The annual industrial district heating use could increase from 84 GWh to 168 GWh in Östergötland and from 14 GWh to 58 GWh in Västra Götaland. The conversion of the industrial production processes to district heating would lead to district heating demand curves which are less dependent on outdoor temperature. As a result, the utilization period of the base load plants (above all of the combined heat and power plants) would be prolonged; this would decrease district heating production costs due to the increased income from the electricity production. The energy costs for the industrial companies decrease after the conversions as well. Furthermore, the increased electricity production in the combined heat

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Pricing district heating by marginal cost

Cited by 49 publications

References 6 publications

Energy conservation measures in buildings heated by district heating – A local energy system perspective

Energy conservation measures in buildings heated by district heating – A local energy system perspective

Biomass gasification opportunities in a district heating system

Economic and environmental benefits of converting industrial processes to district heating

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