HAS DISTRICT HEATING STILL A ROLE IN LOW ENERGY CITY QUARTERS?

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1 HAS DISTRICT HEATING STILL A ROLE IN LOW ENERGY CITY QUARTERS? Leopold Urban Fernwärme Wien GmbH Aalborg, August 25 th

2 Company Structure Vienna City Administration 100% Holding Company for public city services 100% Energy Unit Company Provider for District Heating and Waste Management 2

3 Previous history to Vienna s choice on district heating and waste management Surrounding conditions during the period from 1960 s Rising sensibility for waste management Increasing waste and finite landfills Proven technology for district heating and waste combustion Requirement for low-polluting domestic heating and delivery to key accounts Already existing activities by city administration: First waste incineration in 1963 as well as several heating stations General origin targets of city council in Vienna Reduction of growing waste volume Each inhabitant should have access to district heating Connection of important public customers like Vienna General Hospital (approx. 30 MW th ) Municipal process of decision Sept Inquiry by city administration to city committee and city council concerning establishing a private company (linked to city of Vienna) for waste management and district heating Initial equity ös (~EUR ) Oct Acceptance of inquiry by city council Legal signing of partner contract to operate first business year. 3

4 Key Data - Business Year 2008/09 Revenues Heat Sales M 421 EUR GWh Private Customers (connected apartments) Corporate Customers Network Length Thermal Waste Disposal km t Workforce (average/year) Investment Activity District Cooling (in operation) M 95 EUR 23,5 MW Market Share (low temp. heat Vienna) 35% 4

5 Revenues Fernwärme Wien Revenues 2008/09: M 421 EUR M 306,4 EUR Heat/Cooling M 91,3 EUR Waste Disposal Services Rounded off M 23,3 EUR Others 5

6 District Heating Austria s largest Company in District Heating Fernwärme Wien s market share in Austria s DH-market is approx. 38% in respect to total heat sales. The second largest company (KELAG) comes up to 11%. Close to 25% share of the total district heating transport network in Austria. Maximum security of supply due to multiple energy sources: Cogeneration plants firing biomass, natural gas, heating oil, waste, special waste, sewage and bio gas as well as peak load boilers with gas/heating oil. Internationally leading in technology especially in thermal waste treatment plants. 6

7 District Heating Customers 2008/09 Private Customers Business Customers Every third apartment in Vienna is supplied with district heating and the majority also with hot water. Heat sales 2008/09 in GWh Private Customers Business Customers Total heat sales

8 Vienna Model of district heating today (CHP / Waste incineration) Electricity and Heat for Vienna Combined Heat + Power Technology Waste incineration => Exceeding 80% energy-efficiency 8

9 Some impressions characterising the technology-network for low polluting and efficient DH 9

10 District heating plays still a major role due to high efficient production process EJ Input-Output analysis for various parts of the energy system EU27 in Input: Total required primary initial energy supply Output: Consumer useable energy end use of energy CHP potential useable for District Heating Electricity District heat Heat - Industrial sector Analysis published by Prof. Sven Werner / Halmstad University, Sweden 1 2,5 Heat - Other sectors (buildings) Transportation Only District Heating shows an attractive relation between initial energy (input) and useable energy (output) as heat-losses are exploited from electric-power production! 10

11 The Primary Resource Factor (PRF) highlights the advantage of DH s relation. Primary Resource Factor: 1,2 Key indicator for resource management 1,0 0,8 0,6 (calculated in accordance with EN ) 0,4 0,2 PRF = Required initial fossil energy (Input) Useable Energy (Output) 0,0 Useable Endenergy Endenergie Required fossil fuel Notwendiger fossiler Brennstoff (The analysis considers also energy demand of prior production, thus for preparation, transport and transformation) Use it or loose it! Fernwärme Wien: 0,21 (Average of calendar year , Source: Energy Agency 2010) (Picture: Production of industrial heat by OMV oil refinery located in south area of Vienna) Main responsible factors for a low Primary Resource Factor reached by Fernwärme Wien are otherwise unused heat losses, heat extraction and waste incineration. 11

12 Whereby occurs that advantage in particular? 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% from allocation of heat, otherwise unused and transferred without effect to environment. 0% Shares of thermal production Anteil der Produktion GJ 2008/09 fiscal year 2008/09 5% 67% 28% GWh 900 GWh 800 GWh 700 GWh 600 GWh 500 GWh 400 GWh 300 GWh 200 GWh 100 GWh 0 GWh Peak boiler Kessel fossil fossil Abwärme CHP KWK Abwärme Waste Müll und Erneuerbare incineration and Renewables Okt Nov Dez Jan Feb Mrz Apr Mai Jun Jul Aug Sep 12

13 The Aspern Project in Vienna 240 ha area flats jobs 20 years development Energy-saving city quarter layout: passive house standard Use of geothermal energy Source: Wien 3420 Aspern Development AG 13

14 Key facts of Aspern New multi-functional city quarter planned for around inhabitants as well as for jobs. Starting point of time 2008, expected finish Type of use: Living, Offices, Services, Business- and Scientific-Quarter, extensive public and green areas. One of largest city development quarters in Europe (Gross floor space 2,2 million m 2 ). Location: 22 nd district in Vienna, north-eastern city location (area of former airport). Traffic connection: 2013 underground and regional railway link, planned connection to motorway A23. Use of geothermal energy for space heating, first stage 50 MW thermal capacity planned. Integration into DH-network of Fernwärme Wien. Building Construction: Passive House Standard (~15 kwh/m 2 space heat). 14

15 Location of development city Aspern Source: Wien 3420 Aspern Development AG 15

16 Principles of regional planning Small structures, short distances Advantage of city living area combined with free and green spaces Ecologically friendly construction and mobility Sustainability as prior principle (mobility, flexible use, energy-efficiency) Source: Wien 3420 Aspern Development AG Living and combined use Mainly living Business units Research & Development institutes Education facilities Green areas Water pond General Motors Car Manufacturer 16

17 District Heating Challenges in Aspern Passive house standard with low demand for space-heat, but usually hot water demand all season, which is forgotten very often in public discussion. High competition of fashionable alternative heat sources, mainly heat pumps and solar-thermals which on one hand would reduce necessary heat-density for DH-operation and on other hand can be less environmental friendly. Different starting points of time, locations and tenders for construction- units of whole project leading to uncertainty of DHplanning (dimensioning of local DH-grid in Aspern). 17

18 How did Vienna deal with that aspects in Aspern Potential of geothermal expected sources, parallel development with possibility of DH-operation. Pre-Feasibility-Study of developer indicates optimal energy-mixsolution for DH combined with geothermal resource and reserved roof-space for photovoltaic. Use of geothermal heat, characterised by a Primary Resource Factor of only 2% (based on fossil PRF), which is a big local advantage for DH. Development-procedure carried out by use of a scoring-system where no obligation exists on specific selection of energy-system. Currently good position for DH. DH is main pillar for reduction of CO 2 -emissions according to climate protection plan. (KLiP ). It includes also the political requirement to increase DH-market-share from currently 35% to 50% in

19 District Heating Market faces reducing heat demand in future Scenario for Vienna: Heat Demand incl. Hot Water Currently crowding out competition at expense of non-renewable resources (oil, and gas). In general already decreasing heat market for years. 19

20 Development of apartments according to their age in Austria Present development Scenario Apartments (1000 units) Principal residences 25% of households coming up to our todays low-energy-standard until % remaining from building-period before 1991 Source: Vienna University of Technology / Energy Economics Group, Statistics Austria 20

21 Heat demand a future outlook into the Austrian market Non-livingbuildings Households: Consumption for heat and hot water (TWh) Principal residences Living-buildings Demand for energy is already supposed to level off Within next 40 years expected demand (heat and hot water) will decrease by 45% Source: Vienna University of Technology / Energy Economics Group 21

22 Approach for DH-compensation-example if Zero-Building can be realised Initial Situation: Multifamily-House / 20 apartments Space Heat (kwh/m 2 ) Hot Water (kwh/m 2 ) Total Demand (kwh/m 2 ) Necessary number of apartments* Today s Low Energy Standard =75 20 Passive House Standard =50 30 Zero Building =25 60 * in order to hold heat-supply unchanged Under assumption of today s DH-technology a provider needs to connect three times more apartments to receive same energysupply-result in future. From economic point of view only buildings in a range of 60 connected apartments will be reasonable. 22

23 Sometimes misleading political guidance Different treatment of unused/surplus/ambient heat Heat pump with SPF of 3,0 (incl. hot water) has PRF of 0,95 (with a PRF of 2,85* for electricity) and an acknowledged renewable share of 66%. (Directive 2009/28/EG) Heat from CHP with PRF of 0-0,3 does not count as renewable. * mix for Austria based on fossil thermal production and power-imports PRF Primary Resource Factor SPF Seasonal Performance Factor CHP Combined Heat & Power 23

24 Challenges for DH within a decreasing heat market Lower general heating demand due to new building structures, but high potential to exploit unused heat and lost industrial heat. New technologies like heat pump for individual households sounding currently attractive to public, but from primary energetic point of view, they can be worse. Overall view necessary: In many cases only space-heat-supply is taken into account without hot water demand, which averages additional 25 kwh/m 2. Communication to society necessary (customers, political body). DH is attractive due to low CO 2 -Emissions and low Primary Resource Factor. 24

25 The future role of DH in cities Some key points Fossil transition and added application of renewable sources can be a further boost to a higher market share of DH. Advantage of DH-connection in urban areas due to better surfacevolume-proportion of buildings (structure of multifamily-houses). Increasing demand for larger individual living-spaces, especially in city-areas. Better performance of large-scale, central DH-systems than decentralised small DH s (technologies of scope, more efficient flue-gascleaning, better capacity utilisation, higher efficiency). But best possible: Compensation of new DH-connected apartments due to decreasing heat-market-demand. 25

26 Resume If you wish to do something for our environment as well as to select a sustainable energy resource: Connect your building to District Heating! 26

27 THANK YOU FOR YOUR ATTENTION! Leopold Urban Fernwärme Wien GmbH Dept. Grid Planning and Investments leopold.urban@fernwaermewien.at 27