Energy savings through existing technology

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1 MAKING MODERN LIVING POSSIBLE EHP Congress Venice, May 2009 Energy savings through existing technology Per Boysen International Sales Manager Danfoss District Heating Date 1

2 Programme Introduction Danfoss A/S profile The pull for energy savings The need for District Heating & Cooling RES Directive Danfoss examples of savings from District Heating The role of District Heating & Cooling in the future Date 2

3 Energy saving technology is already here! and has been so for several years. District Heating & Cooling (DHC) offers the energy efficiency and supply stability which is demanded now and will be in the future. As a multi-fuel system, DHC can extract the best from any source of energy including those of the future. Date 3

4 Danfoss philosophy Energy savings start with the consumer and end with the district heating plant Danfoss is Date 4

5 Headquarters Date 5

6 Niels B. Christiansen President & CEO Executive Committee Kim Fausing Executive Vice President & COO Frederik Lotz Executive Vice President & CFO Corporate Functions & Services Danfoss Ventures Danfoss Refrigeration & Air Conditioning Division Kjeld Stærk President Danfoss Automatic Controls Danfoss Household Compressors Danfoss Commercial Compressors Danfoss Electronic Controls & Sensors Danfoss Heating Division Nis Storgaard President Danfoss Heating Controls Danfoss District Heating Danfoss Heating Solutions Danfoss Water Controls Danfoss Motion Controls Division Troels H. Petersen President Danfoss Drives Danfoss Gearmotors Danfoss Silicon Power Danfoss Solar Inverters Owner share 55 % Danfoss Services Division Roland Fritsch Senior Vice President Danfoss Global Business Services Danfoss Industri Service Danfoss IT Date 6

7 Group figures Danfoss is a family-owned, global company (no public shares, but approx. 3% employee shares) Net sales 2007: EUR 3,000 mill Employees: 22,500 worldwide (March 2008) Production of 250,000 items per day Europe North Latin Africa Asia Pacific Total America America Manufacturing sites Sales companies Agents and distributors ~115 Date 7

8 International sales and services Danfoss companies Agents and distributors Date 8

9 Danfoss is the worldwide #1 Supplier within District Heating The expanded Danfoss product range Large distributor stations Commercial and multi-family house substations One-family house and flat substations Date 9

10 Our products are found in the entire DH system - from the utility to the consumer Date 10

11 The pull for energy savings Scarce resources Climate change Responsibility for the next generations Date 11

12 District Energy The Concept Any energy The idea of district energy is to have an efficient and often large-scale production of heating or source, cooling in a centralized plant. renewable, present or Most times the heating or cooling is co-generated with electrical power, which yields a very high efficiency future, utilisation of the energy input. can be used in the District Energy system! The district energy system is unique in the way that it lends itself to an endless range of fuels it is in other words a multifuel energy system. Date 12

13 District Energy - Centralised Community Heating Plant as the Core Traditional Power Plant 60% of energy wasted as heat to the environment Fuel input = 100% Typical: Oil, Gas and Coal 40% energy output as electricity New combined Heat & Power plant 10% of energy wasted as heat to the environment Fuel input = 100% Typical: Natural gas, waste and biomass 40% energy output as electricity 50% energy produced for heating and/or cooling distributed by district energy system Date 13

14 The RES Directive by EU In Spring 2007 EU decided on it s 20x20x20 in 2020: 20 percent increase in energy intensity (efficiency) 20 percent reduction of CO2 20 percent renewable energy Achieving this ambition will at least cost EURO 100 bn (Barroso) EURO 155 per year per European citizen. UK: 9 bn. per year (open Europe). The Climate and Energy Package contains the Directive on Renewable Energy Sources (RES) outlining how to achieve 20 percent renewable energy. District heating and heat pumps play significant roles in the RES Directive. Date 14

15 The implementation process EU National Responsibility Fall 2009 June 30, 2010 EU Directive National Implementation National Enforcement X legislatory instruments! financial instruments information instruments District Heating & Cooling is now accepted as being a vital part of the future energy supply! Date 15

16 Examples of energy savings Date 16

17 Petropavlovsk city, Kazakhstan, flats building, consisting from 2 equal blocks with identical technical characteristics and 2 inputs of heat One part of building, which was selected as a bench was equipped only with a heat counter. Pilot part was equipped with full set of devices for automatic regulation of heat consumption. Date 17

18 Petropavlovsk city, Kazakhstan, 2003 Electronic Controller ECL Comfort 300, differential pressure controller, seated valves, gear actuators for dependent schematics of heating and independent schematics of hot water supply Energy saving effect for whole year (January December 2003) - 26% МВт Jan- 03 Feb- 03 Mar- 03 Summarized accumulated power Apr- 03 May- 03 Jun- 03 Jul-03 Aug- 03 Sep- 03 Oct- 03 Nov- 03 Dec- 03 First half Second half (components Danfoss) tout door, єc о С Date 18

19 Kurchatow, Kursk Region, Russia Carl Bro A/S (1999) Three 14-storey residential buildings connected to one substation; reference 3 similar buildings connected to another substation. weather compensator and a new heat exchanger in the substation; radiator thermostats, balancing valves and differential pressure valves in 3 demo buildings; energy meters; consumption based billing system. 2 seasons monitoring programme Reference Demonstration 50% reduction in space heating consumption OH 19 28/05/2009 Energy savings through existing technology

20 Gdansk, Poland Dansk Energi Management (1998) 9 multi-family houses in different areas of Gdansk; 9 adequate buildings as references. new compact substation; automatic balancing valves; radiator thermostats; energy meters; consumption based billing system. 2 seasons monitoring programme 37% reduction in space heating consumption Date 20

21 The prospects for District Heating & Cooling District Heating and Cooling has been around for decades. The principle of central production of energy is nevertheless just as relevant now and in the future due to the high effectiveness, low pollution and supply stability in a DHC system. There are multiple examples of the energy saving effects of effective District Heating and Cooling systems. When combined with renewable energy sources, DHC becomes a very powerful energy system. By the RES directive, the important position of DHC in the future could not be stated any clearer. Date 21

22 Danfoss philosophy Energy savings always start with the consumer and end with the district heating plant Date 22