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Policy implications of challenges and opportunities for district heating – The case for a Nordic heating system

Vilén, Karl ; Lygnerud, Kristina LU and Ahlgren, Erik O. (2024) In Energy 308.
Abstract

District heating (DH) is an efficient urban heating solution. Numerous external factors (energy efficiency, fuel-price increases, heat -pump competition and policy changes) are challenging. It is relevant to explore long-term cost-competitiveness of DH. A model has been developed testing three, future DH pathways: (i) phase out of biomass (aligned to the cascading principle of the EU Taxonomy), (ii) including waste heat in the fuel supply mix (aligned to the updated Energy Efficiency Directive) and (iii) lower system temperatures (aligned to the idea of more renewables and waste heat). The model considers the long-term development of the supply and demand sides together and simultaneously. This allows the model to determine the most... (More)

District heating (DH) is an efficient urban heating solution. Numerous external factors (energy efficiency, fuel-price increases, heat -pump competition and policy changes) are challenging. It is relevant to explore long-term cost-competitiveness of DH. A model has been developed testing three, future DH pathways: (i) phase out of biomass (aligned to the cascading principle of the EU Taxonomy), (ii) including waste heat in the fuel supply mix (aligned to the updated Energy Efficiency Directive) and (iii) lower system temperatures (aligned to the idea of more renewables and waste heat). The model considers the long-term development of the supply and demand sides together and simultaneously. This allows the model to determine the most cost-efficient heating solution for different building types in different points in time. The results confirm that a phaseout of biomass would erode -but that developments rendering lower system temperatures and increased waste heat utilization would strengthen-the DH business case. Additionally, it is confirmed that heat pumps constitute the main competition to DH. Hence, to remain a cost-efficient heating alternative in the future, DH systems need to revisit the tradition of centralized heat supply resorting to combustion for decentralized heat supply resorting to heat supply on demand.

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author
; and
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
District heating, Excess heat, Housing, Local heating system modeling, TIMES
in
Energy
volume
308
article number
132831
publisher
Elsevier
external identifiers
  • scopus:85201449714
ISSN
0360-5442
DOI
10.1016/j.energy.2024.132831
language
English
LU publication?
yes
id
9e6712a4-b848-4589-aa21-b1f482cb1ac7
date added to LUP
2024-10-28 12:50:08
date last changed
2025-04-04 14:26:26
@article{9e6712a4-b848-4589-aa21-b1f482cb1ac7,
  abstract     = {{<p>District heating (DH) is an efficient urban heating solution. Numerous external factors (energy efficiency, fuel-price increases, heat -pump competition and policy changes) are challenging. It is relevant to explore long-term cost-competitiveness of DH. A model has been developed testing three, future DH pathways: (i) phase out of biomass (aligned to the cascading principle of the EU Taxonomy), (ii) including waste heat in the fuel supply mix (aligned to the updated Energy Efficiency Directive) and (iii) lower system temperatures (aligned to the idea of more renewables and waste heat). The model considers the long-term development of the supply and demand sides together and simultaneously. This allows the model to determine the most cost-efficient heating solution for different building types in different points in time. The results confirm that a phaseout of biomass would erode -but that developments rendering lower system temperatures and increased waste heat utilization would strengthen-the DH business case. Additionally, it is confirmed that heat pumps constitute the main competition to DH. Hence, to remain a cost-efficient heating alternative in the future, DH systems need to revisit the tradition of centralized heat supply resorting to combustion for decentralized heat supply resorting to heat supply on demand.</p>}},
  author       = {{Vilén, Karl and Lygnerud, Kristina and Ahlgren, Erik O.}},
  issn         = {{0360-5442}},
  keywords     = {{District heating; Excess heat; Housing; Local heating system modeling; TIMES}},
  language     = {{eng}},
  publisher    = {{Elsevier}},
  series       = {{Energy}},
  title        = {{Policy implications of challenges and opportunities for district heating – The case for a Nordic heating system}},
  url          = {{http://dx.doi.org/10.1016/j.energy.2024.132831}},
  doi          = {{10.1016/j.energy.2024.132831}},
  volume       = {{308}},
  year         = {{2024}},
}