The Role of District Heating in Danish Sustainable Energy Supply

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The Role of District Heating in Danish Sustainable Energy Supply 11 June 2013 Sustainable Cities event, Danish-French sharing on high quality & efficient city solutions Organized by The Danish Embassy in Paris and DI La Maison du Danemark, Paris Associate Professor Brian Vad Mathiesen, Department of Development and Planning, Aalborg University people.plan.aau.dk/~bvm/

100% Renewable energy and transport systems The importance of CHP and Wind Power in Denmark Electricity Balancing CHP is part of the solution Smart Grid and CHP: The case of Skagen

40 years of active Energy Planning 40 years of active Government and Parliament Energy Policies. Active Energy Policy put on hold by new government in 2001 NGO strategies and public debate in more than 40 years

Four decades of years of stable energy consumption with an active energy policy World Primary Energy Consumption PJ 1000 Danish Primary Energy Supply 1000 PJ 400 300 200 100 RES Nuclear Ngas Oil Coal 0 800 1900 1920 1940 1960 1980 2000 600 400 200 0 1972 1980 1988 1996 2004 2007 Oil Coal Natural Gas Renewable Energy

Opvarmet areal og energiforbrug 140 Domestic heating 120 100 80 60 Energiforbrug til boligopvarmning 40 PJ 300 Index 1972=100 160 20 0 1972 1980 1988 1996 Areal Varmeforbrug 250 200 150 100 50 0 PJ 140 120 100 80 60 1972 1980 1988 1996 40 20 V.E. Kul Fjernvarmeproduktion Ngas Olie 0 1972 1980 1988 1996 2001 Kraftvarme Kedler

Transition from a hierarchal centralised to a semi-decentralised energy system Status

Energy research in a real life experiment Key facts for energy in Denmark 5,6 Million inhabitants 2012: 30% (app. >35% in Jylland) wind power Approx. 120,000 owners of wind turbines High share of the world s offshore power More than 30% distributed generation 50% of electricity from CHP >60% of houses have district heating Comprehensive energy conservation policy

At present 99% of Danish Wind Power is used in Denmark to meet Domestic demands By Henrik Lund, Frede Hvelplund, Poul A. Østergaard, Bernd Möller, Brian Vad Mathiesen Department of Development and Planning, Aalborg University, Aalborg Anders N. Andersen EMD International, NOVI Research Park, Aalborg, Denmark Poul Erik Morthorst, Kenneth Karlsson, Peter Meibom and Marie Münster Risø DTU, National Laboratory for Sustainable Energy, Roskilde, Denmark Jesper Munksgaard Pöyry, Copenhagen, Denmark Peter Karnøe Department of Organization, Copenhagen Business School, Copenhagen,Denmark Henrik Wenzel, Institute of Chemical Engineering, University of Southern Denmark, Odense, Denmark Hans Henrik Lindboe Ea Energy Analyses, Copenhagen, Denmark

The long-term Objective of Danish Expressed by former Prime Minister Anders Fogh Rasmussen in his opening speech to the Parliament in 2006 and in several political agreements since then: To convert to 100% Renewable Energy Energy Policy Former Prime Minister 16 November 2008: We will free Denmark totally from fossil fuels like oil, coal and gas position Denmark in the heart of green growth New broad agreement in March 2012 with 2020 targets on energy savings and 50% wind power + 2050 100% RE target

Systemintegration Energy saving Efficient convertion Flexible system integration teknologies Renewable energy

Coherent energy systems analyses Technical energy system analyses. Potentials and problems? Barriers and synergies? System solutions? Socio-economic analyses. Good and bad proposals? What proposals make up a coherent total energy plan? What is the total costs? What are the abilities to profit from international trade? www.energyplan.eu EnergyPLAN energy system analyses tool Free software Planning model Deterministic input/output model Enables modelling of radical changes Integration of electricity, heat and transport sectors Modelling of large-scale integration of renewable energy Separation of technical and economic modelling not bound by current institutional schemes

A palette of solutions Flexible consumption Electricity storage CAES systems Regulation of CHP plants Electric heating Heat pumps Electric cars Stopping of wind turbines Production of hydrogen Transmission abroad V2G

Conclusions of our research: Regulation of CHP and heat storage (implemented in DK in 2004): Makes possible to integrate 20% Wind Power (and 50% CHP) Adding large heat pumps and heat storage capacity to existing CHP plants: Makes possible to integrate 40% Wind Power (and 50% CHP) Electricity for transportation (integrate approx. 60% wind power) Important to involve the new flexible technologies in the grid stabilisation task

Smart energy systems are crucial in 100% renewable energy systems Electricity smart grids are only one part of this system. The scenarios rely on a holistic smart energy system including the use of: Heat storages and district heating with CHP plants and large heat pumps. New electricity demands from large heat pumps and electric vehicles as storage options. Electrolysers and synthetic liquid fuel for the transport sector, enabling energy storage in a dense liquid form; The use of gas storage and gas grids for biogas and syngas/methane Flexible integration of electricity, heat, gas and transport www.ceesa.plan.aau.dk

Case: Skagen CHP plant

Skagen CHP plant CHP capacity: 13 MWe and 16 MWth (Three 4.3 MWe Wärtsilä Natural Gas engines 250 MWh heat storage 37 MW peak load boilers 10 MW electric boiler Heat Pumps Investment under consideration Operated together with a Waste Incineration plant (heat only).

The main electricity markets Primary reserves (frequency controlled production) Secondary reserves (controlled by status of primary reserves) Manuel regulating power (Tertiary reserves) Intra day market Day ahead spot market 30 sec 15 min 1 hour > 12 hours The M.Sc. Programmes in Environm. Managem. & Sustainable Energy Planning and Management, 8. Semester, http://people.plan.aau.dk/~ana

Skagen Day ahead spot market in Jan. 2005 Regulating power market in approx. 2006 Automatic primary reserve market in Nov. 2009

Cost of entering primary automatic reserves market Cost of making +- 1.4 MW available on the engines: Only approx. 27.000 EUR. Investing in 10 MW electric boiler: Approx 0.7 MEUR.

Short term challenges! Implement those energy saving! We need more wind turbines Implement the next step in the smart energy system i.e. install large heat pumps (and CHP) Avoid suboptimal storage in individual houses and single house heating systems Plan flexible CHP plants Risk of lock in to base load thermal biomass plants Long term planning for short term transport infrastructure investments Fuels based on renewable energy for transport that enables the long term objective of hydrogenation Activation of local communities 70-80% of investments in future 100% RE systems are made in known technologies (in IDA 2050)

Scenarios for expanding district heating Forsyningsform Central kraftvarme Fjernvarme Decentral kraftvarme Naturgas Andet, derunder oliefyr m.m. Scenario 3 1 2

Pre-study Heat Road Map Europe Aalborg University David Connolly Brian Vad Mathiesen Poul Alberg Østergaard Bernd Möller Steffen Nielsen Henrik Lund Halmstad University Urban Persson Daniel Nilsson Sven Werner Planenergi Daniel Trier

GIS based information Urban areas (Heating Demands) Power and Heat Generation Waste Management Industrial waste heat potential Geothermal heat Solar Thermal

Total European Energy Supply Primary Energy Supply [TWh] 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 EU27 Primary Energy Supply & CO2 in 2010 at Different DH Penetrations - High RE Present 12% DH HRE 30% RE HRE 50% RE IEA 7% reduction in Primary Energy Supply 13% reduction in fossil fuels 17% reduction in CO2-emissions HRE 4000 3500 3000 2500 2000 1500 1000 500 0 CO2 Emissions [Mt] Other renewable Biomass Natural gas Oil Coal Nuclear CO2 Emissions IEA Statistics

Cost and Jobs: Saved fuel costs approx. EUR in 2050 Annual costs [Billion ] 140 120 100 80 60 40 20 0 Annual EU27 costs for heating buildings in 2010 to 2050 Annual investment costs Fixed operation costs CO2 emission costs Marginal operation cost Fuel IEA EU CPI HRE RE EU CPI HRE RE 2010 2030 2050 of annual 30 Billion In total cost are reduced by 14 Billion EUR in 2050 (approx. 10%) Additional investments of a total of 500 billion EUR Additional jobs from to 2013 to 2050: 8-9 million man-year in total Approx. 220,000 jobs.

Conclusions Denmark can operate a system with 20% Wind and 50% CHP By adding heat pumps to the CHP units the integration of wind power can be raised to approx. 40% with-out loosing efficiency (nor wind power) Including the CHP plants in the various electricity markets is essential. Once the markets are open for CHP plants the cost of entering them seams small. These elements are important in the EU as well.

More information http://energy.plan.aau.dk/book.php www.ceesa.aau.dk www.energyplanning.aau.dk Hydro water Hydro storage Hydro power plant Electricity storage system Import/ Export fixed and variable Electricity demand RES electricity PP Cooling device Cooling demand Fuel CHP Heat pump and electric boiler Heat demand Boiler RES heat Electrolyser H2 storage www.energyplan.eu Cars Industry Heat storage Transport demand Process heat demand http://www.emd.dk/desire/skagen http://www.emd.dk/el