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2 This report is published by Euroheat & Power whose aim is to inform about district heating and cooling as efficient and environmentally benign energy solutions that make use of resources that otherwise would be wasted, delivering reliable and comfortable heating and cooling in return. This report is the report of Ecoheatcool Work Package 1 The project is co-financed by EU Intelligent Energy Europe Programme. The project time schedule is January 25-December 26. The sole responsibility for the content of this report lies with the authors. It does not necessarily reflect the opinion of the European Communities. The European Commission is not responsible for any use that may be made of the information contained therein. Up-to-date information about Euroheat & Power can be found on the internet at More information on Ecoheatcool project is available at Ecoheatcool and Euroheat & Power Euroheat & Power Avenue de Tervuren 3, 115 Brussels Belgium Tel. +32 () Fax. +32 () Produced in the European Union

3 ECOHEATCOOL The ECOHEATCOOL project structure Target area of EU29 + EFTA3 for heating and cooling Information resources: IEA EB & ES Database Housing statistics Urban & rural population Temperature frequencies Market information for heating and cooling The European heating and cooling market (Work package 1 & 2) Output: Heating and cooling demands in various countries and sectors District heating efficiency (Work package 3) Supply resources: CHP Industrial waste heat Waste incineration Geothermal heat Biomass Free cooling Possibilities for District Heating and Cooling in Europe (Work package 4 & 5) Strategy recommendations (Work package 6) Output: Possible supply to district heating and cooling systems from CHP, RES and waste heat resources for various countries Dissemination of results (Work package 7 and 8) Principal author: Sven Werner, Chalmers University of Technology, Sweden sven.werner@fvb.se Project co-ordinator: Norela Constantinescu, Euroheat & Power, norela.constantinescu@euroheat.org With the contribution from Euroheat & Power, Belgium Danish District Heating Association, Demark Finish Energy Association, Finland German District Heating Association, Germany Italian District Heating Association, Italy Austrian Association of Gas and District Heat Supply Companies, Austria Swedish District Heating Association, Sweden Norwegian District Heating Association, Norway Confederation of European Waste to Energy Plants, Belgium Czech District Heating Association Czech Republic ECOHEATCOOL Work package 1 2

4 Contents 1 Executive summary Introduction The European heat market Objective and focus Target area of 32 European countries Energy balances Main information source used Energy conversion efficiencies References Industrial heat demands Industrial heat demands by branch Industrial heat demands by countries Use of industrial CHP References Other sector heat demands Background Urban and rural conditions for space heating Climatic conditions for space heating Building stock for space heating Heating index for space heating Indoor temperatures Hot water consumption Other sector heat demands Specific demands Correlation between residential demands and the new EHI References Summary of European end use of net heat and electricity Heating costs Energy taxation and VAT Fuel oil, Natural gas and Electricity prices with taxes and VAT District heat Heat cost comparison National heat costs compared to GDP References Suppliers and market actors ECOHEATCOOL Work package 1 3

5 7.1 Business models Fuel and electricity supply District heat supply Equipment suppliers References Conclusions ECOHEATCOOL Work package 1 4

6 1 Executive summary The main purpose with this report (Work Package 1 of the ECOHEATCOOL project) was to present an overall definition and description of the European heat market during 23. The target area covers 32 countries, including the EU25 member states, the four accession countries, and three EFTA countries. The definition of the European heat market is the important foundation for the quantification of the benefits of an expanded use of district heating in Europe. This quantification will be performed in the fourth work package of the ECOHEATCOOL project. Focus was directed towards the demand side of the European energy system and not the supply side. All heat and electricity volumes consider heat (after energy conversion when fuels are used), which is beyond the interface of final consumption used in international energy statistics. However, the origin of the net heat supply is presented. The main information source for the analysis has been the IEA energy balances for OECD and non-oecd countries for 23. The total heat demands in the target area have been estimated by the sum of net heat and electricity end use. Net heat has been estimated as the sum of geothermal heat, solar heat, district heat, and heat generated from the end use of fuels. Electricity use was included since some electricity is used for space heating and hot water preparation. Indoor use of electricity contributes also to the heat balances of buildings, since all electricity use converts into heat in the final end. Industrial demands have been estimated to be 8,7 EJ of net heat used and 4,4 EJ electricity. The industrial customers paid 12 billion EUR for these services, including national energy taxes and excluding VAT. The total demands in the residential, service, and agriculture sectors (also recognised as the others sector in international energy statistics) was 13, EJ of net heat and 5,9 EJ of electricity. The total corresponding customer cost was 27 billion EUR, including national energy taxes and excluding VAT. The demands in the others sector consists mainly of space heating. Therefore, influencing factors as urban versus rural conditions, climatic conditions, and building floor areas have been reviewed. Most of the heat demands appear in urban areas. A new European heating index (EHI) has been invented and introduced in order to explain the geographical distribution of the average specific space heating demands in Europe. The total floor area of residential buildings has been estimated to 2,9 billion m 2, while the corresponding service sector area was estimated to 7, billion m 2. Together, this is almost equal to the land area of Belgium. Major unknown factors in the space heating demands are the indoor temperatures used and national averages of hot water consumption. More detailed national field studies of these parameters would contribute to a better understanding of the heat market. The total end use of net heat and electricity was then 32,1 EJ in the target area during 23. The final transportation demand can be estimated to only 2,6 EJ. The total primary energy supply was 81,1 EJ, while the final energy consumption was 57,3 EJ. This gives the total heat losses in the energy transformation sector to 23,8 EJ, while the heat losses in the consuming sectors was 22,6 EJ, mainly in the transportation sector. Hence, the amazing conclusion is then that the final net heat demands of 21,7 EJ has the same magnitude as the total heat losses in the energy transformation sector. Europe has huge heat losses to be retrieved. ECOHEATCOOL Work package 1 5

7 Furthermore, national heating costs, a heat cost comparison between natural gas and district heat, heat market rules, business models, market actors, and equipment suppliers are presented and mentioned. The five major conclusions from this assessment are: The final demand of heat dominates the demand side in the European energy system. The final demand of heat is dominated by the supply of natural gas and electricity. About the same specific heat demands appear in Western, Central, Eastern, and Northern Europe for the residential and service sectors. The international energy statistics concerning heat deliveries can be further improved. Existing district heating systems can expand further and new systems can be implemented. ECOHEATCOOL Work package 1 6

8 2 Introduction 2.1 The European heat market Heat is used for various purposes in order to fulfil demands in the European final energy consumption. High and medium temperatures heat demands appear mainly within the industry for melting, evaporating, and drying processes. Space heating and domestic hot water supply is the most common low temperature demands appearing in residential, commercial, public, and industrial buildings. Some heat is also used for cooking. Different community sectors have different heat demands depending on activity. The heat is mainly created from primary energy supply by conversion of the calorific value of various fuels as coal, peat, fuel oil, natural gas, wood chips and pellets, and firewood. Electricity is also easily used for all heat demands at different temperature levels. Heat pumps and solar collectors generate small amounts of low temperature heat. Considerable amounts of heat are retrieved from industrial, power, and waste incineration processes. This heat is normally retrieved far from the heat demands, so urban district heating systems are used for gathering, complementing peak and back up supply, distribution, and customer supply. All these various heat supply methods give different amounts of primary energy supply and carbon dioxide emissions. Various heat carriers are also used for short or long heat transfer from the heat sources to the final demands: flue gases, air, water, steam or highly specialised heat transfer fluids. Water is the most common heat carrier in both space and district heating systems. The heat market has also developed by time. Romans using hypocausts for distribution of flue gases below floors in buildings managed the first more organised space heating. Steam heating emerged during the 18 th and the 19 th centuries, mainly for industrial sites. However, it was first during the 2 th century when the residential space heating became more organised. The space heat market evolved then from using coal and firewood in simple inefficient fireplaces to efficient boilers and central heating in buildings. The first institutional European district heating systems were built in the late 19 th century and the first city-based European commercial district heating system was started in Hamburg in Due to various climatic, national, regional, and local conditions, space heating demands have been met in many different ways in Europe. In some countries, the use of natural gas in local boilers dominates. In other countries, district heating systems dominate the low temperature heat market. The annual heat demands are low in the Mediterranean area, so the space heating is by tradition not highly organised. The European heat market is therefore highly diversified, offering and using many different solutions in order to satisfy the final customer demands at an acceptable cost. Hence, the European heat market has eight dimensions, with respect to primary energy supply, emissions, heat carriers, heat demands, community sectors, locations (countries), time, and cost. No coherent and harmonised description exists of the European heat market. The current magnitude of this market is not yet defined. Four different units for heat are used in various descriptions: Tons of oil equivalents, Joules, Watt-hours, and Calories. When the total heat demand is summed up, calorific values of fuels for boilers are often used and added to heat amounts delivered from district heating system or electric heating, neglecting the actual local conversion losses in individual boilers. ECOHEATCOOL Work package 1 7

9 2.2 Objective and focus The main objective for this report is to give a coherent, defined, and harmonised description of the total European heat market concerning the heat demand, sector, location, and cost dimensions during 23. This objective and narrow focus give the following implications for the eight dimensions of this heat market: TIME: The time dimension is reduced to only consider the year 23, since neither a detailed description of the historic evolution of the heat market will be included nor will forecasts for the future be presented. HEAT DEMAND: The main focus is on the final end use on the demand side. All heat amounts presented refer to heat obtained after energy conversion from fuels or heat obtained in other ways. But since no real international heat use statistics is available, the corresponding energy supply statistics is used for estimations instead. General energy conversion factors are assumed and used for various fuels and sectors. Only one unit (Joule) for heat is used, including multiples of this unit (MJ, GJ, TJ, PJ, and EJ). Joule is the standard unit for heat in the international Système international d unités system, finally adopted in 196. SECTORS: The focus is the industrial and other sectors as final energy use sectors. The other sectors are a common label in international energy statistics for gathering the agriculture, residential, and service sectors, where the service sector gathers all activities in public and commercial buildings. The transportation and energy transformation sectors are neglected in the analysis. However, the transportation sector is another heat market, since heat engines dominate that sector. LOCATIONS: The perspective is the existing variation within Europe issue-by-issue, not country-by-country. Hence, no detailed descriptions for every country will be given. Countries are only labels in each diagram or discussion topics in the text. Throughout this report, few absolute national magnitudes will be presented in figures, tables and diagrams. The focus is to show the structure of the European heat market, so relative values as per capita, per m 2, percentages will be used for the various locations. The total magnitude of each national heat market depends firstly from the size of the population. Background values for countries are reported in the enclosed appendix. COST: The final cost for customers are estimated by including national taxes, but excluding VAT. PRIMARY ENERGY SUPPLY: This dimension is not included in this report. However, the origin of heat generated is presented for fuels used directly by end users. But the origin for electricity and district heat is not traced. Primary energy supply for district heat will be highlighted in the WP4 report. EMISSIONS: Carbon dioxide emissions are also neglected in this report, since these emissions are associated to the primary energy supply and the succeeding energy conversion, not to the final heat demands. HEAT CARRIERS: The various heat carriers used for heat distribution at final end users are not included in the analysis. This report will form the foundation for estimating the implications from expanding existing and establishing new district heating systems in the succeeding report within the ECOHEATCOOL project. This next report will focus on primary energy supply and carbon dioxide emission reductions due to district heating. ECOHEATCOOL Work package 1 8

10 2.3 Target area of 32 European countries The target area for this heat market assessment is 32 European countries. These countries are: the current EU25, divided into two sub-groups: the former EU15 before May 24 and NMS1, the ten new member states from the enlargement in May 24 the four accession countries in the ACC4 group (Bulgaria, Romania, Turkey, and Croatia) the EFTA countries in the EFTA3 group (Iceland, Norway and Switzerland). These four sub-groups, defined according to Table 1, will be used throughout the report. The 32 countries vary in size with respect to population according to Figure 1. Table 1. The 32 countries examined divided into to four different groups. EU15 NMS1 ACC4 EFTA3 Austria Cyprus Bulgaria Iceland Belgium Czech Republic Croatia Norway Denmark Estonia Romania Switzerland Finland Hungary Turkey France Latvia Germany Lithuania Greece Malta Ireland Poland Italy Slovak Republic Luxembourg Slovenia Netherlands Portugal Spain Sweden United Kingdom Population, million Austria, EU15 Belgium, EU15 Denmark, EU15 Finland, EU15 France, EU15 Germany, EU15 Greece, EU15 Ireland, EU15 Italy, EU15 Luxembourg, EU15 Netherlands, EU15 Portugal, EU15 Spain, EU15 Sweden, EU15 United Kingdom, EU15 Cyprus, NMS1 Czech Republic, NMS1 Estonia, NMS1 Hungary, NMS1 Latvia, NMS1 Lithuania, NMS1 Malta, NMS1 Poland, NMS1 Slovak Republic, NMS1 Slovenia, NMS1 Bulgaria, ACC4 Croatia, ACC4 Romania, ACC4 Turkey, ACC4 Iceland, EFTA3 Norway, EFTA3 Switzerland, EFTA3 Figure 1. Average population during 23 in the 32 countries examined. Source: Eurostat online database 25. ECOHEATCOOL Work package 1 9

11 2.4 Energy balances The total energy balance for the target area during 23 is presented in Figure 2. The various steps in the energy supply are divided into three different added bars: Total primary energy supply, Total final consumption and Estimated final end use. The total primary supply of 81,1 EJ contains the total calorific value of all fuels and other energy amounts supplied to satisfy the total energy demand. The second added bar contains all energy commodities used by all community sectors. The difference between the two first added bars reflects what occurs in the energy transformation sector, including power generation, oil refining, central heat generation for district heating systems, and distribution losses in electricity and heat distribution systems. The figure reveals that all hydro and nuclear resources and most of the coal was used for generating electricity, while most of the petroleum products, natural gas, and combustible renewables are transferred directly to the final energy consumers in the different community sectors. The total heat losses from the energy transformation sector were huge, 23,8 EJ, corresponding to 29 % of all primary energy supply. Most of this heat was lost in thermal power generation due to low conversion efficiencies. So higher conversion efficiencies in thermal power plants would considerably reduce the energy supply for electricity generation and the associated carbon dioxide emissions. For final consumption, 1,7 EJ electricity and 1,9 EJ heat (mainly district heat) were delivered. These amounts correspond to 18 and 3,2 % of the total final energy consumption of 57,3 EJ. The third added bar contains the estimated final end use of heat for various purposes, electricity for power and lightning, and finally power for overcoming friction, speed change, altitudes, and air resistance in transportation. Heat amounts to more than 2 EJ, while electricity use was 1,4 EJ, since some electricity was used for transportation purposes. Also in this third step, the heat losses were huge from high temperature industrial processes, heat generation in local boilers, and conversion losses from engines in vehicles. The total final energy consumption from the second added bar in Figure 2 are divided into three main sectors (industry, transport, and others) in Figure 3. The other sector includes the agriculture, residential, public, and commercial sectors (omitting the industry, transport, and energy sectors). Most of the final heat demands appear in the industry and other sectors, being the focus in this heat market analysis. The energy demand in the transport sector is neglected in this report, although major heating and cooling demands appear in this sector. Most of the transportation heat demands in cold countries are met by retrieving conversion heat losses from engines (similar to combined heat and power). Some minor heat demands during non-operation are met directly by using electricity or fuels in car and engine heaters. All transportation cooling demands are met by extra fuel supply to engines feeding small mechanical chillers. In theory, it would be possible to generate cold in small absorption chillers using the high temperature engine conversion heat losses. The major conclusion from this simple energy balance analysis is that the huge total heat losses correspond to more than half of the total energy supply. A future European energy system must reduce these losses in order to increase the energy efficiency, reduce the carbon dioxide emissions, and increase the security of supply. The heat sector in general and the district heat sector in particular could contribute to meet these objectives, by using existing heat losses in the energy system to satisfy local heat demands on the European heat market. ECOHEATCOOL Work package 1 1

12 EJ EU25 + ACC4 + EFTA3 during 23 Total Primary Energy Supply = 81,1 EJ Losses in the energy transformation sector Losses in end use Combustible Renewables and Waste Solar/Wind/Other Geothermal Hydro Nuclear Natural Gas Petroleum Products Coal and Coal Products Transportation Total Primary Energy Supply Total Final Consumption Total End Use (estimated) Electricity Heat Figure 2. Energy balances for EU25+ACC4+EFTA3 during 23. Heat in the Total Final Consumption bar considers commercial heat deliveries, mostly through district heating systems, while heat in the Total End Use bar considers all heat used by end users, except heat generated from electricity, still allocated to the electricity area. EJ 25 EU25 + ACC4 + EFTA3 during 23 Total Final Consumption = 57,3 EJ Combustible Renewables and Waste Solar/Wind/Other 2 Geothermal 15 Natural Gas 1 5 Petroleum Products Coal and Coal Products Electricity Total Industry Sector Total Transport Sector Total Other Sectors Heat Figure 3. Final energy consumption for EU25+ACC4+EFTA3 during 23. Heat for the industrial and other sectors considers commercial heat deliveries, mostly through district heating systems. The major part of the heat delivered from industrial CHP plants is not included. ECOHEATCOOL Work package 1 11

13 2.5 Main information source used The database of international energy balances from International Energy Agency (IEA) in Paris has been chosen as the main information source for this analysis of the European heat market. This database is divided between OECD and non-oecd countries and contains four dimensions: Countries, Years, Sectors, and Energy sources. Through an intelligent user interface, it is possible to download any possible combination of these four dimensions. The IEA energy balance database contains one column denoted to heat, which shows the disposition of heat produced for sale. This is mainly district heat, but some direct heat deliveries to final customers are also included. Pending national conditions, the actual fraction of district heat varies among countries. This section will end with a European estimation of the district heat share of these commercial heat deliveries. Hence, the term heat throughout this report is equal to the amount of heat accounted in the heat column in the IEA energy balance database. An alternative information source could have been the Eurostat energy balance information in the NEWCRONOS database available at the Eurostat webpage. A comparison performed in Figure 4 reveals that existing information in the Eurostat database corresponds very well to the IEA Energy Balance database. However, the Eurostat energy balance database contains no information for three countries with respect to significant heat deliveries: France, Italy, and Switzerland. A large deviation also appears for Germany. No significant information can be found in the Eurostat database beyond what can be found in the IEA database. Hence, the IEA database has a wider degree of retrieval with respect to heat deliveries. In the IEA energy balances, some discrepancies appear between the heat deliveries reported and national or Euroheat & Power information available about district heat deliveries. This situation is summarised in Figure 5. These discrepancies between IEA and national information appear for 23: 1. Spain, Malta, and Cyprus: Heat deliveries are totally missing. This eems to be correct, since no district heating systems have been identified during 23 in these countries. 2. Belgium, Portugal, Luxembourg, Greece, and Ireland: Heat deliveries are reported by IEA for these five countries, where no national or Euroheat information is available. 3. Italy and Turkey: All heat deliveries are missing in the IEA energy balances. Italian heat deliveries during 23 were 17,3 PJ according to Associazione Italiana Riscaldamento Urbano, the Italian District Heating Association (AIRU, 24). In Turkey, 13 small geothermal district heating systems are known (Mertoglu, 25). However, direct use of geothermal heat is reported in the IEA database for both Italy (9,1 PJ) and Turkey (32,8 PJ). 4. Netherlands, Germany, Finland, and Slovak republic: Heat deliveries are higher than reported by the national district heating associations. For Netherlands, heat deliveries (97,7 PJ) are more than 4 times higher than the district heat deliveries (21,1 PJ) reported by (EnergieNed, 24), the Dutch association of energy suppliers. For Germany, 354 PJ is reported in the IEA energy balances, while (AGFW; 24) only reports 284 PJ. No heat delivery is allocated to the service sector in the IEA energy balances, but 37 PJ for the residential sector. The (AG Energiebilanzen, 24) reports 161 PJ for the residential sector and 16 PJ for the service sector. For Finland, 159 PJ is higher than the 11 PJ reported by (SKY, 24), the former Finnish district heating association. For Slovak republic, 43, PJ is higher than the 25,8 PJ reported by TZS, the Slovakian District Heating Association. Some of these discrepancies can be explained by that all heat-delivering companies are not members of the national associations. Similar minor discrepancies appear also in other countries. 5. France and Iceland: Heat deliveries are lower than reported by national district heating associations. In France, heat deliveries of 27,5 PJ in IEA Energy Balances are much lower than the 86,4 PJ of district heat deliveries reported by (SNCU, 23), the French District Heating Association. All heat deliveries are allocated to the service sector, giving no heat ECOHEATCOOL Work package 1 12

14 deliveries to the residential sector in France. For Iceland, the IEA heat deliveries are 8,8 PJ, while Samorka reports 18,4 PJ of district heat deliveries through (Euroheat & Power, 25). IEA energy balances reports further 2,3 + 21,8 PJ of direct use of geothermal heat in the industrial and other sectors, giving a IEA total of 32,9 PJ. In (Ragnarsson, 25), a total of 23,8 PJ was reported as direct use of all geothermal heat including all district heating systems and the Reykjavik Energy alone delivered 1,7 PJ during 23. So the IEA heat delivery for 23 of 8,8 PJ is actually less than the annual delivery of the largest district heating system and the IEA total of 32,9 PJ seems to be an overestimation. 6. Switzerland, Czech republic, Poland, and Hungary: Heat deliveries are somewhat (between 8 and 19 %) lower than national information about district heat deliveries. A heat delivery in the IEA energy balance database is defined as based on heat produced for sale. The high correlation in Figure 5 reveals that this definition corresponds very well to heat deliveries from traditional urban district heating systems. The following major discrepancies appear: Netherlands, about 8 % of the heat deliveries of 97,7 PJ can be allocated to heat deliveries from local, mostly industrial, combined heat and power plants to a third party, explaining the discrepancy identified above. United Kingdom, most of the heat deliveries of 75,1 PJ origin from local combined heat and power plants. Some few ordinary district heating systems exist (Nottingham, Sheffield, Southampton, London-Whitehall, London-Charterhouse Street, Lerwick etc). Finland, IEA heat deliveries of 159 PJ also include direct deliveries of heat from CHP plants to industries, since (SKY, 24) reports 96 % of all other sector heat deliveries, but only 18 % of the industrial heat deliveries. Portugal, a similar situation appears probably with local heat deliveries from combined heat and power plants, since heat deliveries was 9,5 PJ, with 93 % to industrial customers. Only one minor district heating system (Lisbon-Parque das Nações) with annual heat sales of,1 PJ have been identified. Hence, discrepancies appear partly from different definitions of a heat delivery and partly from errors in the reporting routines to Eurostat and IEA. It is obvious that the largest reported errors appear for Germany, France, Italy, and Iceland. Minor errors appear for Switzerland and Poland. All these discrepancies are accepted in this report and are not manually adjusted from national information available. However, the discrepancies are mentioned when appropriate and when various issues are analysed and discussed. In total, the IEA energy balances reports 1,86 EJ of heat deliveries for the target area during 23. Corresponding volume from Eurostat was 2,13 EJ, while national information ends up with 1,76 EJ. After assessing various discrepancies, true district heat deliveries can be estimated to be 1,76 EJ including some minor revisions. Further,21 EJ in the IEA database consider direct deliveries to customers from CHP plants, giving a true total of 1,97 EJ, which should be compared to the actual IEA total of 1,86 EJ. This concluding analysis shows that 89 % of the heat deliveries in the IEA energy balance for 23 was district heat. The remaining 11 % consider other direct heat deliveries. However, actual heat deliveries should have been 6 % higher, due to missing district heat deliveries, mainly in France and Italy. ECOHEATCOOL Work package 1 13

15 Heat deliveries during 23 in various European countries, Correlation between two different information sources 1 Germany 2% IEA energy balance, PJ France Switzerland Equal -7% Ireland Eurostat energy balance, PJ Figure 4. Comparison between the Eurostat and IEA energy balance databases concerning total heat deliveries for 23. Heat deliveries during 23 in various European countries, Correlation between two different information sources IEA energy balance, PJ Belgium Portugal Luxembourg Greece Slovak republic Netherlands Iceland Germany Finland France 2% Equal -7% Ireland Italy National or Euroheat district heating information, PJ Figure 5. Comparison between the IEA energy balance database concerning total heat deliveries for 23 and corresponding information from Euroheat or various national information sources. ECOHEATCOOL Work package 1 14

16 2.6 Energy conversion efficiencies The focus and interface in this project is the actual heat demands in Europe. In order to estimate these demands, comparable information about heat amounts must be used. Calorific values of fuels used for generating heat should not be added to other heat amounts from district heating systems. But the final interface in the IEA database contains only supply of fuels for final consumption when fuels are used for generating heat. The whole situation is summarised in Figure 6. In order to estimate actual final heat demands, general averages of energy conversion efficiencies according to Table 2 have been used. Fuels have efficiencies lower than 1% in order to compensate for local conversion losses. Table 2. Energy conversion efficiencies used for estimation of final heat demands. Coal and Coal Products Petroleum Products Natural Gas Geothermal Solar/Wind/ Other Combustible Renewables and Waste Electricity Industrial sector 85% 85% 9% 1% 1% 85% 1% 1% Other sector 64% 78% 85% 1% 1% 64% 1% 1% Source: Fuel supply efficiencies for the other sector are cited from Appendix 4 of (BRE, 22) for 25, all other efficiencies are own assumptions. Heat All Primary Energy Supply for the industrial and others sector Geothermal and solar heat Interface for final consumption in the IEA energy balances Unrefined fuels Refined fuels The Energy Transformation Sector (oil refineries, power plants, and district heating systems) Local conversion of fuels to heat Heat Electricity Net heat used Human metabolism Final heat demand Interface for this project Figure 6. Presentation of the interface in the IEA energy balances and the interface in this project. ECOHEATCOOL Work package 1 15

17 2.7 References AG Energiebilanzen, Alle tabellen der vorläufigen Auswertungstabellen zur Energiebilanz, October 24, available at AGFW, Hauptbericht der Fernwärmeversorgung 23. Frankfurt am Main, October 24. AIRU, Il riscaldamento in Italia nel 23. Foglio di Collegamento, Annuario, Settembre 24. BRE, Labeling and other measures for heating systems in dwellings. Final technical report, SAVE-project 4.131/Z/99-283, January 22. Energiened, Energy in the Netherlands 24 facts & figures. Arnhem, June 24. Euroheat & Power, District Heating and Cooling, country by country survey 25. Brussels 25. Eurostat, the online database for Energy and Environment, table es_16a, available at the Eurostat website epp.eurostat.cec.eu.int IEA, Energy balances for OECD countries , available on CD-ROM or online at Paris 25. IEA, Energy balances for non-oecd countries , available on CD-ROM or online at Paris 25. Mertoglu O, Geothermal applications in Turkey, Proceedings World Geothermal Congress 25, Turkey, April 25. Ragnarsson A, Geothermal development in Iceland 2-24, Proceedings World Geothermal Congress 25, Turkey, April 25. SNCU, Enquete Chauffage Urbain Année 22, Décembre 23. SKY, District Heating in Finland 23. Suomen Kaukolämpö ry, Helsinki 24. ECOHEATCOOL Work package 1 16

18 3 Industrial heat demands 3.1 Industrial heat demands by branch Industrial heat demands are characterised with a wide diversity with respect to temperature levels, branches, countries, and energy supply, since many different industrial processes appear and the energy supply can differ from country to country due to local conditions. Three different temperature levels have been used in Figure 7 for describing the quality of the demand for heat to be used in various industrial branches: Low temperature level is defined as lower than 1ºC, corresponding to the typical heat demands for space heating. The heat is used in low temperature industrial processes as washing, rinsing, and food preparation. Some heat is also used for space heating of industrial buildings and on-site hot water preparation. Medium temperature level is represented by an interval between 1ºC and 4ºC. This heat is normally supplied through steam as a local heat carrier. The purpose is often to evaporate or to dry. High temperature level constitutes temperature levels over 4ºC. This high quality is needed for manufacture of metals, ceramics, and glass etc. These temperatures can be created by using hot flue gases, electric induction etc. According to the Figure 7, the chemical, non-metallic mineral, and basic metal industries have the highest temperature demands. Other branches use more medium and low temperature heat. In total, high temperature demands dominate by 43 % of the total demand of 11,8 EJ. Low and medium temperature demands corresponds to 3 and 27 %, respectively. High and medium temperature processes often generate waste heat with temperature enough to be recovered in district heating systems. Medium and low temperature processes can be supplied with heat from industrial combined heat and power plants. Low temperature heat demands can also be satisfied from district heat deliveries. End use of net heat and electricity for various industrial branches is shown in Figure 8 by origin of energy supply source. The conversion efficiencies from Table 2 have been used when estimating the net heat amounts from fuels. The total demand was 13,2 EJ, with 4,4 EJ for electricity and 8,7 EJ for net heat used. The discrepancy compared to Figure 7 constitutes electricity for transportation purposes and an estimating error due to different conversion efficiencies used. The metal, chemical, non-metallic mineral, food, and paper & pulp industries are the most heat demanding branches. The industrial energy supply is dominated by electricity (34 %) and natural gas (31%). District heat has a minor market share of 3,4 %, due to some deliveries to the chemical and some non-specified industries. Combustible renewables and waste have a total market share of 4,8 %. These fuels are mainly used in the paper & pulp (61 %) and wood industries (17 %). The biomass use in the Finnish and Swedish paper & pulp industry corresponds alone for 39 % of the total market share of combustible renewables and waste for industrial demands in the whole target area. ECOHEATCOOL Work package 1 17

19 25 PJ Estimated industrial heat demands by quality for EU25 + ACC4 + EFTA3 during 23 2 High, over 4 C 15 1 Medium, 1-4 C 5 Low, below 1 C Basic Metals Chemical Non-Metallic Minerals Transport Equipment Machinery Mining and Quarrying Food and Tobacco Pulp & paper Others Figure 7. Industrial heat demands estimated by temperature quality and by manufacturing branch for the whole target area of 32 countries. The figure has been created by using experiences from the German industry reported in (AGFW, 25) and applied on the IEA database for the target area. PJ Industrial end use of net heat and electricity for EU25 + ACC4 + EFTA3 during 23 for various branches Solar/Wind/Other Combustible Renewables and Waste Coal and Coal Products Petroleum Products Natural Gas Electricity Geothermal Iron and Steel Chemical and Petrochemical Non-Ferrous Metals Non-Metallic Minerals Transport Equipment Machinery Mining and Quarrying Food and Tobacco Paper, Pulp and Printing Wood and Wood Products Construction Textile and Leather Non-specified Industry Heat Figure 8. Industrial end use of net heat and electricity by origin of supply for the whole target area of 32 countries. ECOHEATCOOL Work package 1 18

20 3.2 Industrial heat demands by countries The industrial end use of net heat and electricity per capita by country is presented in Figure 9. The industrial energy consumption level is high in Iceland, Finland, Luxembourg, Norway, Sweden and Belgium due to high fractions of energy intensive industries. The highest GJ per capita deliveries of commercial heat to the industrial sector can be found in Finland (1,6), Netherlands and Czech Republic (3,2 each), Luxembourg and Poland (2,1 each), and Hungary (2,). The region average is,8 GJ. As stated earlier in section 2.5, direct heat deliveries are included in the IEA energy balances for both Finland and Netherlands. These deliveries are deliveries to industrial customers from CHP plants. The corresponding market shares is shown in Figure 1, revealing that high market shares for heat appear in Hungary (15 %), Poland (13 %), Finland (12 %), Netherlands and Czech republic (1 %), Bulgaria (9 %), and Lithuania and Estonia (8 % each). The overall average market share in the target area is only 3,4 %, so in these countries, district heat deliveries to the industrial sector are 3-5 times higher than the region average. The industrial use of district heat was high in the former CEE planned economies. Transition to market economy has reduced this historical high consumption, explaining most of the district heat recession in these countries during the last 15 years. The use of district heat for industrial purposes has now reached a stable level. Industrial heat demands do normally not correlate with the outdoor temperature, since the used industrial temperature levels are much higher than the outdoor temperature. Figure 11 shows how the industrial end use per capita varies with the climate, revealing that countries with high per capita demands are located in cold climates. This gives an opportunity to cooperate with local domestic heat supply, if the local conditions are suitable. The total demand was 13,2 EJ, with 4,4 EJ of electricity and 8,7 EJ of net heat used, thereof,44 EJ delivered as district heat. Industrial end use of net heat and electricity, GJ/capita Heat Electricity Petroleum Products Combustible Renewables and Waste Geothermal Natural Gas Coal and Coal Products Solar/Wind/Other Austria, EU15 Belgium, EU15 Denmark, EU15 Finland, EU15 France, EU15 Germany, EU15 Greece, EU15 Ireland, EU15 Italy, EU15 Luxembourg, EU15 Netherlands, EU15 Portugal, EU15 Spain, EU15 Sweden, EU15 United Kingdom, EU15 Cyprus, NMS1 Czech Republic, NMS1 Estonia, NMS1 Hungary, NMS1 Latvia, NMS1 Lithuania, NMS1 Malta, NMS1 Poland, NMS1 Slovak Republic, NMS1 Slovenia, NMS1 Bulgaria, ACC4 Croatia, ACC4 Romania, ACC4 Turkey, ACC4 Iceland, EFTA3 Norway, EFTA3 Switzerland, EFTA3 Figure 9. Final industrial consumption of net heat and electricity per capita during 23. ECOHEATCOOL Work package 1 19