Heat transmission In Copenhagen. Jan Elleriis Vice-Director Metropolitan Copenhagen Heating Transmission Company

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1 Heat transmission In Copenhagen Jan Elleriis Vice-Director Metropolitan Copenhagen Heating Transmission Company

2 The Greater Copenhagen DH system 18 municipalities 4 integrated DH systems 25 DH companies 500,000 end users 34,500 TJ (9,600 GWh, 32,700 GBtu) Approx 20 % heat demand in Denmark Rambøll november

3 Design Concept Base load production Combined heat and power; waste to energy; geothermal heat, surplus heat from industry 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 Rambøll november

4 Existing Heat Production Capacity - 4 Waste to heat, 400 MW - 4 CHP, MW 7 units Steam turbines Gas turbines Coal, oil, gas, straw, wood pillars - 1 Geothermal, 14 MW - Several peak and reserve HOB Rambøll november

5 Strength of the system - flexibility More efficient and flexible heat production by optimizing the choice of production unit depending on price on electricity Optimized on hourly basis, three times a day Heat production from: Oil Coal Natural gas Incineration Wood pellets Straw Geothermal heat Heat production from: 27 % - Waste 2 % - Geothermal 70 % - CHP 1 % - Peak load Rambøll november

6 Background - CTR is a joint municipal company five - Founded due to a directive from the Energy Agency - Need for new power capacity area ideal for CHP - In the beginning 16 municipalities involved Result two companies, two new CHP units but technical one transmission system - Financed on the international marked Municipal security for loan Very high rating Low rate of interest Rambøll november

7 Organisational Structure Copenhagen Frederiksberg Gentofte Gladsaxe Taarnby The Board Economic committee Technical committee Management Rambøll november

8 Organisation of Company - Big project 3 billion DKK investment Turn over 1 2 billion DKK - Small organisation choosen - Limited number of employees 30 persons - Al physical maintenance and operation outsourced Local DH companies External companies with expertice - Consultant takes care of design, all projects and technical analysis Rambøll november

9 Political focus is very much on the environmental aspects Rambøll november

10 kg/gj or g/gj Emissions CTR CO2 SO2 NOx Yearly reduction CO 2-2,3 % SO 2-17,2 % NOx - 12,1 % Rambøll november 2012

11 Marginal CO2 emission end-user level Savings ~ 1,000,000 t CO 2 Reduction 48 % Savings 62 % Rambøll november

12 Fuel consumption 2011 Non fossil fuel 42% Rambøll november

13 Existing CO2 emission from fossil fuels - Coal in CHP boilers - Natural gas in CHP boilers - Oil in CHP boilers - Natural gas in CHP gas turbines - Oil in peak load HOB - Natural gas in peak load HOB - Plastic fraction in waste to heat plant Rambøll november

14 Coming challenges before 2025 Political strategy Heat from CTR zero CO2 emission - Negotiate with power plants Convert 700 MW boiler capacity from coal to biomass Install new storage capacity for biomass Rambøll november Construct two new geothermal plants Capacity around 100 MW - Convert 1,000 MW HOB capacity to bio fuel or RE Initiate that plastic fraction is removed from waste before incineration New heat plan indicates high cost to solve the waste problem

15 Promotion and Subvention of DH in Denmark Rambøll november

16 Legal Framework of District Heating No thermal power plants but CHP. Heat Supply Act sets frame for local decisions. Municipalities have traditionally had the authority. All DH companies are non-profit entities. Prices = Sum of true costs (no local subsidies). DH company forwards the heating bills directly to the consumers not via local government. All consumers can complain about irregularities or misuse of tariffs and prices to an independent state regulatory authority. All DH companies must report on prices, budgets and delivery conditions to this authority. Rambøll november

17 Statutory powers of the sector Government Implement energy strategy Implement laws Decide taxies (incentives) Decide grant and subsidies (incentives) Regulate the sector through the Energy Agency, Directives and guidelines Directive regarding fuel and type of production Control the sector through the Energy Regulatory Authority, Tariffs and prices Competition Authority, market and monopoly Rambøll november

18 Statutory powers of the sector Municipality Municipalities have statutory power Heat planning in municipality Approve all energy projects Responsible for demarcation between DH and natural gas supply Decide forced connection of end users Municipalities responsible for establishing DH companies Rambøll november

19 District Heating companies DH companies have no statutory power Support the municipality in energy planning matters (technical experience) Support municipality defining environmental policy Responsible for development, operation and maintenance of DH-system Responsible for budgeting and pricing strategy within the framework of the Heat Supply Act Responsible for financing of projects Municipal guaranty Rambøll november

20 Subvention of DH in Denmark - Very high taxes on fossil fuel Indirect subvention of CHP (200% effeiciency) - No tax on biomass (in the future) - Direct subvention of power produced on biomass Rambøll november