Experience of Sweden with the use of nonfossil resources for heat and power generation Erik Larsson, Manager Energy Policy, Swedish District Heating Association 2009-10-01 1
Vision SDHA is working to make the district heating industry an obvious, growing part of an energy future which is ecologically sound, and financially and socially sustainable. 2009-10-01 2
The green concept of district heating: recover surplus heat and other local energy resources! Industrial surplus heat Solar, geothermal Surplus heat from waste Biofuels Surplus heat from biorefineries Fossil fuels and heat pumps Combined heat and power 2009-10-01 3
Members of the Swedish District Heating Association by owner Private/foreign 10% Government 4% 86% Municipal 135 member companies Operation more than 400 DH systems 2009-10-01 4
District Heating in Sweden 9 million inhabitants 50 TWh district heating Almost 50 % of total heat market Present in every urban ares with more than 10 000 inhabitants More than 600 DH systems Still growing Turnover 3,3 billion euro Competing on the heat market 2009-10-01 5
District heating a key resource to combat climate change Fuel/energy used for District Heating in Sweden TWh 60,0 50,0 40,0 30,0 20,0 10,0 0,0 CO 2 CO2 kg/mwh 350,0 300,0 250,0 200,0 150,0 100,0 50,0 0,0 Others CO2(kg/M Surplut heat ind Heat pump Waste Wood Fuel Peat Electric boilers Coal Natural gas Oil 2009-10-01 6
What policies triggered the transition to lowcarbon Swedish district heating? Political commitment to take the lead Main strategy: polluter pays principle. Energy taxes; from 1991 carbon tax. Investment subsidies to selected local projects (Klimp) Local responsibility using local energy sources and entrepreneurship 2009-10-01 7
Delivered heat by ownership 1990-2006 Part of sold heat 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Others Vattenfall Sydkraft / E ON Fortum Muncipality Company Municipality 2009-10-01 8
Why? - continues increasing taxes has changed the DH 45,00 40,00 35,00 30,00 25,00 öre/kwh 20,00 15,00 Oil Coal Natural gas Elektricity Oil industry 10,00 5,00 0,00 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 Källa: Svensk Fjärrvärme Visit London 2009 2009-10-01 9
How? Implementation of Carbon tax example oil 4000 3500 3000 SEK/kbm oil Carbon tax Oil Energy tax Oil 100 /ton 2500 2000 1500 33 /ton 1000 500 23 /ton 0 Källa: Svensk Fjärrvärme Visit London 2009 2009-10-01 10
Expansion - heat delivered 1955-2008. Rapidly growing number of customers result in a slowly expanding deliveries due to increased energy efficiency in buildings and district heating networks GWh/year 50000 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 2009-10-01 11
Deliveries and the total length of the DH-nets in Sweden 2009-10-01 12
Market shares 25% 44% Other 93% 75% 56% District Heating 7% Family houses Blocks of flats Public premises Source: SCB 2009-10-01 13
Political lessons learnt? A high price on CO2 triggers change. The Swedish CO2-tax today: 100 /ton A tax approach makes room for markets to launch competitive alternatives. Not only renewables matter. Efficient use of primary energy is equally important! Investments in infrastructure demand political commitment, local as well as national. This is the great challenge! 2009-10-01 14
Industrial lessons learnt? Important to pursue a flexible approach, in co-operation with other public utilities and private entrepreneurs Research and development vital to promote a modern, innovative district heating sector Essential to secure strong participation from industry in the development of technical tools and rules 2009-10-01 15
Some activities are more inefficient than others EJ Input-Output analysis for various parts of the energy system EU27 in 2006 40 35 30 Input: Total primary energy supply Output: Consumer end use of energy 25 20 15 10 5 0 Electricity District heat Heat - Industrial sector Heat - Other sectors (buildings) Transportation Åre, July 23, 2009 4 Source: Sven Werner, Halmstad University 2009-10-01 16
The Opportunity for DH - Internalization of environmental impact Energy taxes as a means of changing the use of energy from fossil fuel to renewable energy has been used. From 1991 Carbon tax in Sweden. In EU from??? DH has been successful in implementing the idea to phase out fossil fuels DH can provide cheaper energy to the customer by using cheaper energy sources, such as energy from waste, CHP, industrial surplus heat and biomass DH can turn existing building into zero emitting houses. 2009-10-01 17
Sustainable urban energy systems fulfil demands for - Security of supply - Energy efficiency - Non-fossil technologies 2009-10-01 18
Thank you for your attention! 2009-10-01 19