Almelo 10 november 1999

Slide1: 

Competitive District Heating in The Netherlands J.J. Hof EnergieNed

DH in The Netherlands characterized: 

DH in The Netherlands characterized Gas to Heat competition is very strong Measures are taken to support CHP and DH DH companies exploring new markets and applying advanced technologies Optimized CHP unit sizes Cost-effective distribution networks Heat storage facilities implemented

Heat sales development of district heatingin The Netherlands: 

Heat sales development of district heating in The Netherlands PJ

DH situation: 

DH situation large share of CHP heat in the district heating projects (more than 90 percent of the heat) high electrical and heat efficiencies in modern CHP units, mostly based on the combined cycle technology (electrical efficiency higher than 50 percent, heat efficiency over 30 percent) heat storage facilities in the projects for flexible operation of CHP units heat sales within 30 km of existing power plants is cost- effective fuels for DH: gas 79%, coal 15%, waste 4%

Economics of a typical project: 

Economics of a typical project Heat cost price 5 NLG/GJ, heat sales 25 NLG/GJ, distribution margin 20 NLG/GJ, is 80 % of sales Gas purchase price 40 ct/m3, gas sales 50 ct/m3, distribution margin 10 ct/m, is 20 % of sales Margin ratio of heat supply : gas supply 4 : 1 Cost ratio of heat network : gasnetwork 3 : 1 Depending largely on type and development stage of the project

Heat price development for single family houses: 

Heat price development for single family houses NLG/GJ

Market trends : 

Market trends shift from connecting single family houses to connecting flats and big buildings, offices, hospitals and hotels supplying heat to horticulture greenhouses introduction of district cooling for hospitals and offices, for shopping malls, schools and universities and for fruit and fish terminals succesful long run demonstration of district heated washing machines and district heated laundry dryers in 15 households CO2 distribution to greenhouses (controlled CO2 supply is good for the growth process of the plants) distribution of heat produced by centralized heat pumps

Support in the past: 

Support in the past Firm and constistent energy policy Loans, Grants and Subsidies Risk sharing agreement between production and distribution companies Favourable tariff policy for CHP gas DH is part of the Environmental Action Plan of the Energy Sector (increase heat deliveries from 12 PJ to 28 PJ per year over the period 1991 - 2001) Heat Plan of the Power Production Companies

Support today: 

Support today contribution from CO2 reduction funds (NLG 50 per ton avoided CO2) the energy tax on gas and on electricity goes to the government, but energy tax on heat (equivalent to the tax on gas) may be used in the district heating project a 10% better forfait in the energy perfomance standard for new buildings, leading to more incentives for a builder to connect the building to a heat network subsidy for low temperature heat consumer networks (500 NLG per house)

cooling operating rooms and shopping mallswith district coolingcooling price below cooling price of electric chillers: 

cooling operating rooms and shopping malls with district cooling cooling price below cooling price of electric chillers using absorption coolers in summer lowers the heat discharge to rivers from power plants

heating swimming pools and hotels: 

heating swimming pools and hotels

Heating horticulture greenhousesheat 10 percent discount compared to gas: 

Heating horticulture greenhouses heat 10 percent discount compared to gas

Heat Map Instrument: 

Heat Map Instrument helps to find those locations in the country which are most attractive for district heating advanced computer model, a lot of parameters to vary if heat demand density is greater than 25 houses per 10,000 m2 area, then district heating is economical

Benefits of district heating: 

Benefits of district heating fuel savings clean, no noise good for the environment low cost to consumers (gas price equivalent) high comfort reliable and safe individual heat metering advanced technology, excellent service good opinions, good press saves room in your house

Environmental effect of energy carriers: 

Environmental effect of energy carriers electricity 558 g CO2 per kWhe (emission) gas 1,78 kg CO2 per m3 (emission) heat - 99 kg CO2 per GJ (avoided emission)

Available market developing instruments: 

Available market developing instruments Campaigns Video promotion films Bid generators Face to face mini PC calculations Slogans Measurement of clients opinions Workshops and lectures Training Information brochures Leaflets

communications and negotations: 

communications and negotations direct contact with potential clients

Slide21: 

getting familiair with district heating heat metering and temperature control no more maintenance of boilers low temperature consumer installations

a house on district heating is at least as comfortable as a house on direct gas firingheat price equivalent to gas cost: 

a house on district heating is at least as comfortable as a house on direct gas firing heat price equivalent to gas cost thermostatic valves on the radiators hot tap water supply up to 12 litres per hour individual heat metering

Showing your product to the publicSubstation near Amsterdam: 

Showing your product to the public Substation near Amsterdam

Conclusions: 

Conclusions District heating can grow in a competitive market Competition stimulates creative solutions The best solutions will win, and district heating is one of them Heat delivery has many advantages compared to direct use of fuel or direct use of electricity for heating and cooling puposes

Slide26: 

CO2 emission eduction by DH/CHP in Western and Eastern European countries J.J.Hof chairman of the Committee for Ecology of Euro Heat & Power

Specific total CO2 emission per capita: 

Specific total CO2 emission per capita ton CO2 per inhabitant (1996)

UN scenario and reality 1990 -1996: 

UN scenario and reality 1990 -1996 Gigagram CO2 Western Europe

Target development: 

Target development Gigagram CO2 per year Traget Development of CO2 emissions in Europe

Relative CO2 reduction targets agreed in Kyoto: 

Relative CO2 reduction targets agreed in Kyoto %

CO2 reduction: 

CO2 reduction Avoided CO2 emission Classical Electricity Production Avoided CO2 emission Classical Heat Production CO2 emission of HOB’s (4) CO2 emission of CHP’s CO2 reduction by DH/CHP mln ton CO2

Conclusions Total Potential CO2 reduction: 

Conclusions Total Potential CO2 reduction CO2 reduction district heating can to a very large extent contribute to reaching the total CO2 reduction target of “Kyoto” the CO2 reduction of district heating: in 1990: 1,135 mln ton, 24% CO2 of the emission of the energy sector in 1997: 875 mln ton, 19% CO2 of the emission of the energy sector in 2012: 3,675 mln ton, 78% CO2 of the emission of the energy sector the CO2 reduction in 2012 can be realised: for 33% in the Western European countries for 67% in the Eastern European countries

CO2 levels without and with District Heating and Combined Heat and Power in 2012 : 

CO2 levels without and with District Heating and Combined Heat and Power in 2012 mln ton CO2 per year

European Union’s CHP policy: 

European Union’s CHP policy Increase share of CHP electricity from 10% in 1996 to 18% in 2010 Share renewables 12 % in 2010

Split up local CHP and DH/CHP: 

Split up local CHP and DH/CHP Local CHP in 1996 (in %) Austria 11 Belgium 2 Denmark 24 Finland 16 France 2 Germany 2 Italy 13 Netherlands 32 Portgual 8 Spain 8 Sweden 0 ?? UK 5 average 6% DH/CHP in 1996 (in %) Austria 15 Belgium 2 Denmark 32 Finland 16 France 0,2 Germany 5 Italy 13 Netherlands 10 Portugal 0 Spain 0 Sweden 7 UK 0,03 average 4%

Specific kg CO2 reduction per GJ heat deliveredat + 4% points extra DH/CHP: 

Specific kg CO2 reduction per GJ heat delivered at + 4% points extra DH/CHP

CO2 effect DH/CHP: 

CO2 effect DH/CHP when +4% point of the electricity market as extra DH/CHP: 205.6 mln ton extra CO2 reduction per year for Western European countries assuming full heat market on CHP/DH: for Eastern European countries 2450 mln ton for Western European countries 1335 mln ton i.e. 43 % of all CO2 emissions

Necessary growth factor of heat delivery to meet the + 4% point DH/CHP target: 

Necessary growth factor of heat delivery to meet the + 4% point DH/CHP target Austria 2,2 Belgium 4,2 France 1,7 Italy 8,3 The Netherlands 4,5 United Kingdom 8,5 Switzerland 2,1 Finland 1,25 Sweden 1,10 Denmark 1,02 Germany 1,07

Success factors for great CO2 reduction: 

Success factors for great CO2 reduction large share of heat coming chp-installations and low share of heat from heat-only-boilers using heat storage facilities in the heating networks avoiding separate production of electricity and/or separate production of heat using cleaner fossil fuels and “renewable” heat sources a high share of CHP in the heat and electricity market rapid increase of heat delivery in the Western European countries rehabilitation of Eastern European chp-installations and Eastern European heating networks

Conclusions: 

Conclusions DH / CHP can contribute significantly to meeting the CO2 reduction targets set in Kyoto Using full potential of DH/CHP, a large share of all CO2 emissions can be avoided If district heating CHP-electricity is increased from 4% in 1996 to 8% in 2010, this will lead to 205 mln ton CO2 reduction per year in the Western European countries

Liberalized energy market means free competition, free competition means best solutions, best solutions means prosperity.: 

Liberalized energy market means free competition, free competition means best solutions, best solutions means prosperity. “CHP and renewable heat” horse “direct fossile fueled” horse Kyoto target