Scottish Enterprise District Energy Learning Journey to Denmark

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1 Scottish Enterprise District Energy Learning Journey to Denmark

2 SETTING THE SCENE Introduction District heating history briefly Danish district Energy Integrated system - Large City Scale - Copenhagen systems Questions

3 PERNILLE M. OVERBYE B.Sc Mech. Eng. (Copenhagen Eng. College) M.Sc. Energy Conservation & the Environment (Cranfield University, UK) Energy Consultant in the UK Energy Manager in the UK (RAF & Earls Court) Project Engineer/Manager in the UK CHP & District Heating With Ramboll DK since 2002 working within district energy: Project Manager Project Director Market Manager UK & North America Head of Department Since 2008 Board member of the Combined Heat and Power Association in the UK Ramboll Energy phone:

4 UK - DISTRICT ENERGY TEAM Crispin Matson Peter Mildenstein Anthony Riddle Paul Steen Olof Jangsten CMATS PTRM ANRID PSTEEN OLFJ Other teams: Sophie Schorah SSCHO Mairead Kennedy MKENN Energy from Waste Power Environment

5 DK - DISTRICT ENERGY TEAM Pernille M Overbye João Elias Henrik Steffensen Søren V. Knudsen Michele Rosa PMO JME HST SORK MCHR The two teams are supported by 90 specialists covering all areas of district energy services Halldor Kristjansson Jakob Bjerregaard Ileana Badica HDK JAKB IBA

6 TODAY S DISTRICT ENERGY A DEVELOPMENT OVER MORE THAN 100 YEARS US steam systems District heating may be defined as: Utilisation of waste heat Hot water systems Pre-insulated pipes Changes in fuel The distribution of heat through pipes to two or more buildings with different owners. Renewable energy sources

7 KEY ELEMENTS OF EFFICIENT (DANISH) DISTRICT HEATING 7

8 OUR DANISH BACKGROUND No Power Station without heat off- Take Over 400 District Heating schemes in DK Over 60% of all households in Denmark are connected to a heat network (and it is increasing) More than 90% connection to most networks 8

9 REGULATORY FRAMEWORK Heat Supply Law Early 1980 s - Heat planning nationwide Energy planning without nuclear Energy taxes major increase Early 1990 s Connection to district heating mandatory in district heating areas Energy strategy & 2010 Heat Plan Denmark 2010 The Climate Change commision 2011 Energy Strategy New Danish Energy agreement THE HEAT SUPPLY ACT CHAPTER 1 Objectives and Definition Article 1. The objective of this Act is to promote the most socio-economic and environmentally friendly utilization of energy for heating buildings, supplying them with hot water and reduce the dependency of the energy system on oil. (2) in agreement with the objectives mentioned in subsection (1), the supply of heat shall be organised with a view to promoting the highest possible degree of cogeneration of heat and power.

10 Total CO2 in million tons CO2 emission factor: kg/m2 floor area DEVELOPMENT OF CO 2 EMISSIONS Heat plan Denmark Case A: CO 2 at moderately improved building envelope and expansion of district heating Heat pumps, other Stoves, electricity District heating Central heating/w natural gas Central heating/w oil

11 PROVEN FACTORS THAT HELPS THE IMPLEMENTATION OF DISTRICT HEATING Strong energy policy and central Government support National least-cost energy planning Planning and zoning of heat networks Encouragement of local authorities and utilities to implement least-cost projects Economic incentives such as fossil fuel taxes, carbon reduction incentives etc. making district heating attractive 11

12 OWNERSHIP AND REGULATION IN DANISH DISTRICT HEATING The ownership forms 50 mainly large and medium-size municipal-owned companies 350 mainly medium-size and small consumer co-operatives Very few investor-owned companies The heat supply act regulates prices and heat supply projects Cost based and non-profit tariffs are issued by the company Consumers (building owners) can complain to the regulator The regulator can set maximum prices if necessary The municipality approves all investment projects Decisions of the regulator and the municipality can be appealed to the energy appeal board.

13 FROM HEAT PRODUCTION UNITS TO CONSUMER CONNECTIONS Production. Pressurisation system. Thermal storage. Design and operation Temperatures and pressure Controls Distribution Pipes. Pumps. Heat exchangers. Design and operation Temperatures and pressure End-user installations.

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15 TEMPERATURE & PRESSURE Steam system Super-heated system: water > 120ºC (High temperature hot water) Normal hot water system: water < 120ºC Low temperature system: Supply temperature (summer): 65-75ºC Supply temperature (winter): 75-90ºC Cooling of district heating water at user installation Low return temperature Even lower temperature system 50ºC/20ºC Pressure ratings - 40 bar, 25 bar, 16 bar, 10 bar, 6 bar

16 DESIGN CONCEPT Base load production Combined heat and power; EfW; geothermal heat, surplus heat from industry; solar; biomass Transmission system Booster pumps Global peak load Heat exchangers Distribution system Municipal distribution companies Local peak load MWh fuel comsumption in DH pr. MWh sale End users 16

17 THE INTEGRATED DISTRICT HEATING SYSTEM IN THE COPENHAGEN REGION 17

18 CTR

19 NORDFORBRÆNDINGEN

20 DISTRICT HEATING END USER INSTALLATION Heat exchanger Pipework Valves Instrumentation Energy Meter Small space No combustion products

21 Floor area in million m2 Curve: CO2-emission kg. per MWh heating at end-user THE WAY AHEAD FOR DENMARK 2010 Heat Plan Denmark Danish heating sector has reduced CO 2 emissions by a factor 2,5 since 1980 Further 50% reduction before 2020 and almost CO 2 neutral society before 2030 Key proposals District heating ~70% market share Heat pumps outside of heat network areas Historical Heat supply of the building stock Modest development Projection End-user heat demand reductions additional 25% Wide integration of CHP, heat pumps and RES Individuel solar heating Individuel heat pump Individuel biomass Individuel electric heating Individuel gas boilers Individuel oil boilers Small scale district heating District heating CO2-emission total

22 INTEGRATED DELIVERY STRATEGY City-wide district heating grids way forward Use of heat networks to store surplus wind energy through use of electric boilers and heat pumps. Integration of solar thermal, geothermal and large scale heat pumps into heat networks. Seasonal storage Increasing contributions from biomass and biogas (including biogas injection) Use of embedded CHP to balance variability in wind production Ongoing optimization of building envelopes (low temperature heating, high temperature cooling, micro DC grid for micro electronics, demand side management of appliances)

23 INTEGRATED DELIVERY CONCEPT 23

24 DISTRICT HEATING HEAT SOURCES AND SHARE OF CHP 24

25 SOLAR HEATING PLANT, MARSTAL, DENMARK Largest solar heating plant in the world Area covered by solar panels: 18,000 m 2 Output: 13,000 kw Services: Planning, design, tendering, procurement, construction supervision and follow-up on operation

26 RISE FJERNVARME ÆRØ. DENMARK Small distribution network 115 consumers Production: 3 GWh/year Peak power: 1MW Production based on wooden pills and solar heating panels (3600 m²) 5 km main distribution pipe 3 km service pipes Heat loss from network: 33% of production

27 GLOSTRUP KOMMUNALE VARMEFORSYNING 96 consumers Production: 77 GWh/year Peak power: 19 MW Primarily based on production from waste incineration plants and combined heat and power plants 8 km main distribution pipe 4 km service pipes Heat loss from network: 4% of production

28 ROSKILDE FORSYNING DENMARK More than 6500 consumers Production: 398 GWh/year Peak power: 140 MW Primarily based on production from waste incineration plants and CHP plants 265 km main distribution pipe Approx. 130 km service pipes Heat loss from network: 18% of production

29 NEW SUSTAINABLE BUILDINGS INTERACT WITH THE ENERGY INFRASTRUCTURE Ramboll HQ, Copenhagen Access to metro and facilities for bikes District Heating Ground source cooling Natural light Low energy electronics Ramboll office in Kolding Close to rail District heating Free cooling from stream Floor heating-cooling system Low temperature heating (25 o C return) High temperature cooling (15 o C )

30 Heat prices - one-family to houses houses in Denmark in including VAT and fuel (1) taxes including VAT and fuel taxes Varmepriser inkl. moms for 2005/2006 Acontopriser Individuel olie Individuel N-gas Tusinder Vægtet gennemsnit Simpelt gennemsnit 6 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% % Antal værker i % Hus s tørre ls e m ² - 1 8,1 M W h/å r Olie /ga s pris e r: Ge nne m s nit til s e pte m be r Virk nings gra de r: Olie : 7 2 %, N-ga s : 8 5 % - inge n a fs k riv ninge r,» ga m le a nlæ g«30

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32 SOME UK CHALLENGES Existing heating systems use electric heating or individual boilers. New construction still only a small % of the existing stock. Low energy prices and low energy taxes. High district heating installation costs (due to design options). New construction only typically dwellings (or less) in each phase. Local Government has limited resources and powers. Central Government sees district heating as an option mainly for new construction and assumes existing energy infrastructures and markets will dominate. Social-technical change needs to be driven. Needs to think big and look at the overall picture. Market forces (except renewables) 32

33 THANK YOU