NW Open district heating

Transcription

1 NW Open district heating

2 Traditional heat market 4. Circullation inside the building 3. Heat from air Building will select optimal combination between 4 options (0-100 % each) 2. Heat from the ground 1. DH (or fuel)

3 Current heat market 4. Circullation inside a bulding 3. Heat from air or to air There is too much heat inside a building a system needed to deliver heat out There is no cooling on earth there is just heat transfer! 2. Heat from ground or to ground 1. District heat (or fuel) Two way heat transfer is a natural part of heating market

4 DH and current heat market Traditional district heat require hybrid solution on current heat market DH has to adapt to market change Possible solutions are 2-way heat sales and DHC Fortum already started both operations in Stockholm 4

5 Two-way district heating 4. Circullation inside building 3. From air or to air Customer sell surplus heat to DH network Energy company pays market price for heat 2. Heat from ground or to ground 1. DHC Both customer and energy company achieve benefits

6 4. Circullation inside a building 3. From air or to air 2. Heat from ground or to ground 1. DHC

7 Products in Stockholm 1. Prime heat (to supply pipeline, +90 or more) 2. Secondary heat (return pipeline, +55 or more) 3. Recycled heat (DC return pipeline, +15 or more, only during winter) 4. Heat capacity (both production and negative consumption) 7

8 Pricing principle in Stockholm Prime heat Outdoor (C) < >21 SEK/MWh Secondary heat Outdoor (C) < >21 SEK/MWh Recovery heat Water temperature (C) >=30 SEK/MWh NB! Preliminary pricing

9 Traditional district heating Production Network Customers

10 10 Heat from surplus to demand

11 Alternatives for scale Cooling network Production Cooling solution Cooling solution Heat network Heat network Heat network

12 More profitable heat and capacity HOB CHP Network Customers Customers

13 Potential for 2-way heat sales in Stockholm Roughly 1000 MW capacity and yearly 1000 GWh energy Option to avoid 1000 MW capacity investments (~150 M ) Yearly profitability improvement for 1000 GWh sales (if improvement 10 /MWh, yearly profit will increase 10 M ) Enable new customer connections that otherwise would be unprofitable 13

14 BRISTA LFV/Arlanda Networks in Stockholm Vilunda FORTUM Capacity need Yearly heat production 3500 MW 9000 GWh Sollentuna/Rotebro Other major companies: E.ON, Norrenergi, Söderenergi 80 km Järfälla HÄSSELBY Akalla Sollentuna Norrenergi VÄRTAN GWh heat market in metropolitan area with 2 million people Årsta Lidingö HAMMARBY Orminge Heat trade based on hourly marginal costs and production optimization as well Fittja HMC HÖGDALEN Farsta Skogås (Nearly) anyone can join the system IGELSTA 14

15 Open heat system in Stockholm Both large-scale and small-scale production are on the market (level playing field) 2. More profitable heating and cooling solutions for customers 3. Better performance for energy companies 4. Energy efficiency will be improved and emissions will be reduced 5. Win-win-win situation 15

16 Open DHC as a smart system 1. Heat to right place with right timing (two-way heat transfer) 2. Combination of small-scale and large-scale 3. Entire system optimization 4. End-use management and energy storages (both physical and virtual storages) 5. Better economical performance

17 Summary of open district heat Heat market is 2-way market, the key is the deliver heat to right place with right timing All required technology is already there it is just a question of products and pricing DHC is future solution if the industry is able to create new way of thinking and new business models 17

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20 EJ End Use Dominated by Heat EU25 + ACC4 + EFTA3 during 2003 Total Primary Energy Supply = 81,1 EJ Losses in the energy transformation sector Losses in end use Combustible Renewables and Waste Solar/Wind/Other Geothermal Hydro Nuclear Natural Gas Petroleum Products Coal and Coal Products 10 0 Total Primary Energy Supply Total Final Consumption Total End Use (estimated) Transportation Electricity Heat SOURCE: Ecoheatcool project (

21 Potentials of available heat sources and corresponding heat flows during 2003 in EJ/year for the target area of 32 countries Residual heat from all thermal power generation Heat sources much greater than end use in Europe 19,2 Potential for direct use of geothermal heat 370 Solar will provide another source Industrial CHP 1,8 1,6 0,03 Biomass potential 2,3 District heat generated Heat losses in power generation equal to heat demand in Europe ,17 0,14 0,03 1,1 Surplus heat from industries 0,5 Waste incinerated 2,0 Non-recycled waste SOURCE: Ecoheatcool project (

22 HEAT HIERARCHY

23 DHC is outsourced energy solution Customer outsource heating and cooling production to energy company (compare to electricity or any other activity) Harms and risks of own production are avoided Customer can concentrate on their key businesses 23

24 Electricity 4. Electricity sales in free market (Electricity is a side product and value of it should be maximized) 3. Possibility to fuel switch (Fuel switch is a real option that has a value) Fuels mix CHP plant 2. Production based on heat demand Heat Network Customer 1. Heat demand that defines production (Price based on alternative cost) 12/9/2010 NW World Energy Congress 24

25 Energy efficiency evaluation of DHC CHP electricity replace other production on market Fuel supply CHP Customer Asiakkaat

26 District energy solution in Espoo CHP plant Data center Heat pump facility District heating network District cooling network 26

27 Thanks!