Regulatory challenges and good practices for district energy. Monika Kuusela Public Affairs, Fortum Corporation
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1 Regulatory challenges and good practices for district energy Monika Kuusela Public Affairs, Fortum Corporation
2 Fortum in brief Our core Hydro and nuclear Combined heat and power production Circular economy Energy-related products and expert services 9,000 professionals in the Nordics, the Baltics, Russia, Poland and India We are the largest electricity retailer in the Nordics with 2.4 million customers. And one of the leading heat producers globally 2/3 of our power production is hydro and nuclear 96 % of our electricity production is CO 2 free in Europe, 62% in all operations
3 Our services will change our customers lives Solar panels EV charging Smart heating Virtual power plants Electricity retail Smart living solutions Insurances We are building smart and helpful services that give our customers peace of mind.
4 Fortum s recent investments in heating and cooling Stockholm Open district heating concept Naantali Co-owned Multifuel CHP (ready 2017) Brista and Högdalen Co-owned Waste CHP Värtan Co-owned Bio-CHP Kumla Waste treatment facility Stockholm Brista Högdalen Värtan Nyborg Kumla Joensuu Riihimäki Naantali Järvenpää Espoo Klaipeda Zabrze Pärnu Tartu Jelgava Częstochowa Joensuu Bio oil production at CHP Järvenpää Bio-CHP Riihimäki waste treatment + circular economy village Espoo Heat recovery from water treatment facility Bio Coal-bio Waste Other Co-owned Espoo Recovering waste heat from data centres Jelgava Bio-CHP Espoo Geothermic DH with St1 (ready 2017) Finland Electric vehicles charging poles, Solar panels Pärnu Bio-CHP Klaipeda Waste-CHP Nyborg Biggest hazardous waste unit in Europe Zabrze Waste/coal/bio- CHP (ready 2018) Czestochowa Coal/bio-CHP Espoo Heat recovery from hospital (ready 2016) 4
5 Principles for well-functioning DHC networks Single DH system operator model Base load capacity (CHP, heat pumps, industrial waste heat) Commercially negotiated TPA Utilization of variety of waste heat sources (see picture) Market price to buy excess heat to replace stranded capacity Demand response Supply response Heat and electricity storages Distrct cooling 5
6 FOR A CLEANER WORLD District heating and district cooling represent the most suitable energy solutions for satisfying urban heat and cold demands Base load from power and heat cogeneration District cooling to replace local cooling Use of biofuels, waste fuels and surplus heat from industry District cooling has a resource efficiency rate 5 to 10 times higher than electrically driven air conditioners Integrated DH and DC Fair competition between heat sources Fair weighing factor according to resource efficiency 6 Incentives to promote DHC
7 7 10/30/2017
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10 Main enablers for the development of district heating and cooling Constructive and forward-looking dialogue between the national and EU authorities, regulatory bodies, municipalities, DH operators and end-customers is a key Energy policy should cover whole heat market related targets for decarbonization, security of supply and energy efficiency Transparency and predictability of legal environment, where changes and new legislative proposals includes impact assessments are desired District heating and cooling regulation, when in place, shall be cost covering and incentive-based
11 Key take-aways Energy efficiency measures will drop consumption significantly One-component tariff structures should be replaced as soon as possible. The consumption profiles of different customers will change One tariff will not be enough to cover the needs of the customers. Technology will enable new heating alternatives for the customers District heating has to develop in order to stay attractive. Cooling becomes a standard solution in buildings Heat companies have to respond to this need to stay attractive. New renewable forms of production and heat recovery will emerge Optimisation of the production becomes even more important. 11
12 Thank you for the
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