Promote District Energy for a Sustainable City Transformation

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2 Promote District Energy for a Sustainable City Transformation Established in members Leading actors in Denmark 2/3 Manufacturers, Consulting Engineers 1/3 Utilities Magazine HOT COOL Seminars, training, exchanges of know-how in DK and other countries

3 District Heating an Important part of a Sustainable Development Morten Jordt Duedahl Business Development Manager DBDH

4 DISTRICT HEATING IS AN UN-AVOIDABLE PART OF A FUTURE, SMART, GREEN ENERGY SYSTEM 4

5 Why do customers like district heating? What s not to like? Well informed customers It works! Accepted as a utility Like district what?? Cost less and stable prices District Heat or Freeze - Only choice Easy: fuel, carbon, green, safe

6 DH in Denmark

7 Technically DH is NOT Complicated Storage DH is fuel agnostic! Pipes, pumps, valves... Heat demand Like your own boiler a lot bigger and a lot smarter!! Moving free heat to a useful place Extremely well proven technology/system/idea!! 7

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9 DH in Denmark

10 A few remarks Danish district heating is a complex structure developed over 100+ years The Danish Model is good!! In Denmark! DH is part of a Smart Green Energy System: Hydrogen, Storage, Wind, Power, Transport.... Energy Efficiency in Buildings A Smart backbone 10

11 District Heating in Denmark Half of heat demand (50%+) 2/3 of all house holds (app / 64%) All homes in Copenhagen (98%) 2016: new connections 2015: Today ~450 schemes 11

12 Future Targets National 2035 Carbon Neutral Heat 2035 Carbon Neutral Electricity 2050 Transport?? Copenhagen and many other cities 2025 Carbon Neutral Technical and economical limit ~75%

13 Denmark s Wake Up Call First oil-crisis % oil and coal = import dependence Inefficient energy use Sustainable solutions needed!! Support from all levels of society 13

14 14 Consistent Energy Policy Long Term planning Legislation 1976 Electricity Act (CHP, Cost Eff) 1979 Heat Supply Act + RES + WtE 1986 Decentralized CHP 1990, 1993, 2008 Increased biomass (new CHP and conversion) Incentives 1981 Investment grants for biomass DH/CHP 1984, 1992 Subsidies for CHP 1994 Financial support to establish DH on biomass or natural gas 1991 High energy tax and CO 2 tax on fossil fuels Clear business model Profit-for-consumers / owners Long term perspective Municipal guaranteed loans Plan Coordinate Legislate - Support

15 Danish Background Bottom Up AND a Top Down approach Natural monopoly Governance Optimisation Consumer protection Goals and Framework Conditions Long term, Stable but not Constant

16 Planning and zoning in Denmark Natural Gas and District Heating Choice of heat solution must be beneficial to: Society Consumers District heating company In the zone Natural monopoly Mutual obligation - connection and delivery

17 The Future A central part of Smart Energy Systems & 2050 targets Integrate surplus wind and solar electricity Individual solar heating Individual heat pump Individual biomass Individual electric heating Individual gas boilers Individual oil boilers Small scale district heating District heating CO2-emission total 17

18 GDP, CO2 and Energy

19 Status 2017

20 M2 build New Build Others Elec heating Oil Natural Gas Heat Pumps District Heating Year

21 Energy Sources for DH

22 Good planning

23 Storage

24 Budget and Prices HIU Rent and other services B U D G E T Financial cost and depreciation Administration O & M Heat Fixed fee Variable cost P R I C E

25 Surplus Payed back to owners / investors Included in next years budget Saved for future investments and expansions If agreed and approved For specific projects

26 Classic Finance Model Connection fee one time A share in the company Registrered at the building Danish PWLB (Municipal bank) = low interest or bank Surplus from previous years limited

27 Procurement Multiple contracts as relevant All types Short term and/or long term External and/or internal Open tenders

28 Thank you Morten Jordt Duedahl Business Development Manager

29 Evolution of District Heating

30 Evolution of District Heating