HEAT PUMPS AS A LINK BETWEEN INDUSTRY AND DISTRICT HEATING

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1 HEAT PUMPS AS A LINK BETWEEN INDUSTRY AND DISTRICT HEATING Jesper Koch Head of Development and Analysis Green Energy Association / Danish District Heat Association jko@danskfjernvarme.dk

2 GREEN ENERGY IS A ANALYSIS DEPARTMENT AT DANISH DISTRICT HEATING ASSOCIATION The Association of 400 companies who supply 99% of district heating heat comfort for 1,7 million Danish homes (64%). 50 municipality owned utilities and companies who has a supply of 70% of all district heat. Around 350 cooperatives owned by the consumers. Many are in the process of merging to fewer and larger cooperatives. Other members 3 transmission companies 11 associated members

3 DISSEMINATION OF CHP IN DENMARK 460 plants and units generate district heating Heat centrals, CHP units, industrial units. Central and local plants and units. From 620 MWe power plants to 1 MWt heat stations Fuel diversity Coal, biomass (straw, woodchips and pellets), natural gas, municipality waste, thermal solar and biogas. Wide dissemination km district heating transmission and distribution grid 64% of all homes uses district heating.

4 DOMINATION OF WINDPOWER 128 Norge Samlet for det Det nordiske prisområde 137 Sverige GW 2 GW 33 Danmark 13 5 GW 19 6 GW 13 5 GW 21 8 GW 99 Nordtyskland GW GW GW GW 4

5 NOT EVERYBODY IS IN FAVOR OF WIND POWER

6 TWO MAJOR CHALLENGES What are we going to do with CHP? What are we going to do with the electrification? 6

7 REDUCTION IN POWER PLANT CAPACITY TOWARDS 2020 Capacity (MW) Large plants CHP - Not in operation Small plants (CHP) - Not in operation 4,600 (2,400) 1,800 (100) 4,100 1,100 Industrial CHP Thermal capacity in operation 7,000 5,800 Interconnectors - Import/export 5,100 7,900 Offshore wind farms 1,300 2,700 Onshore wind turbines 3,300 3,000 Total capacity 19,200 19,400 Reduction in thermal power plant capacity and growth in wind power capacity together with extra interconnectors capacity to Norway, Sweden, Germany and Netherland is a substantial change of the power system. Some of the power plants will be converted from CHP to biomass boilers

8 STATUS More windpower less CHP Low electricity prices 600 full load hours in 2013! 8

9 COMPETITION

10 DISTRICT HEATING CAN PROVIDE THE SOLUTIONS La Accumulation 1 mio. m3 CHP 5000 MW MW Elec. boilers 400 MW Heat Pumps 17 MW

11 STORAGE SYSTEMS Steeltank (TTES) Borehol storage (BTES) Pool storage (PTES) ATES (Aquifer)

12 MW-varme STATUS HEAT PUMPS IN DISTRICT HEATING , ,7 I alt (i dag) ENS 2020 Danish Energy Agency expects 10 PJ i

13 HEAT PRODUCTION PRICE IN DH WITH CHP AND HEAT PUMP

14 [DKK/år] Consumerprice in domestic house for diff. Heat Supply No grant for gas Biomass boiler covers extended DH (20 pct) Biomass Boiler Solar Heat covers 20 pct Heat Pump Individuel naturgas Individuel varmepumpe/jordvarme Fjernvarme inkl. grundbeløb 14

15 KEY POINTS TO BE ADDRESSED District Heating in the core of Smart Energy It is possible to balance a power system with more than 50% wind power using the district heating systems is a solution. What to do? Taxes and regulation must be updated to enhance power to heat solutions with heat pumps in district heating. CHP plants need a new business case as back up for wind power and technical balancing of the power system (ancillary services).

16 POSSIBLE SOLUTION X Max pris i forhold til individuel opvarmning Biomass Boiler X x

17 THANK YOU FOR YOUR ATTENTION Dansk Fjernvarme og Grøn Energi Fjernvarmens Hus Merkurvej Kolding Phone jko@danskfjernvarme.dk

18 HEAT BILL AN EXAMPLE FREDERICIA CITY (PRICES 2015) Elements in the Heat Bill Variable price elements Measured Energy Quantity: 75,00 DKK/ GJ Measured amount of water: 2,40 DKK/ M3 (incentive to max cooling of water) Fixed price elements Subscription Contributions: DKK (measurement equipment) + Basic fixed contribution: DKK/ sq. m. (depended of building areal) Yearly heat bill (average family): Eksample: House Heat dem. Heat Bill pr. Year inclusive VAT 125 m² 55 GJ ,- DKK 150 m² 65 GJ ,- DKK 175 m² 75 GJ ,- DKK 18