IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v192y2020ics0360544219323345.html
   My bibliography  Save this article

Support schemes adapting district energy combined heat and power for the role as a flexibility provider in renewable energy systems

Author

Listed:
  • Andersen, Anders N.
  • Østergaard, Poul Alberg

Abstract

Combined heat and power units connected to district energy plants have an important role displacing condensing mode power generation and boiler-based heat-only generation. However, often the earnings on the electricity markets are not sufficient to promote the establishment of these; therefore, support schemes are needed. When designing a support scheme to promote combined heat and Power, it is important to consider that in the transition to a renewable energy system, the role changes radically from displacing traditional generation to assisting in the integration of fluctuating renewables and finally providing the electrical capacity needed during hours with insufficient wind and sun. An energyPRO-based comparison of a premium and a triple tariff support scheme is presented. The comparison shows that, during a 20-year period, the cost to society is less than half when using the triple tariff compared to using the premium scheme for providing a certain capacity. While this capacity displaces the same amount of production from condensing mode power plants, the triple tariff promotes larger thermal energy storage capacity compared to the premium scheme, which is beneficial for district energy combined heat and power to fulfil its subsequent tasks in a renewable energy system.

Suggested Citation

  • Andersen, Anders N. & Østergaard, Poul Alberg, 2020. "Support schemes adapting district energy combined heat and power for the role as a flexibility provider in renewable energy systems," Energy, Elsevier, vol. 192(C).
    • Handle: RePEc:eee:energy:v:192:y:2020:i:c:s0360544219323345
    DOI: 10.1016/j.energy.2019.116639
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544219323345
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2019.116639?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lund, Henrik & Munster, Ebbe, 2006. "Integrated energy systems and local energy markets," Energy Policy, Elsevier, vol. 34(10), pages 1152-1160, July.
    2. Soltero, V.M. & Chacartegui, R. & Ortiz, C. & Velázquez, R., 2016. "Evaluation of the potential of natural gas district heating cogeneration in Spain as a tool for decarbonisation of the economy," Energy, Elsevier, vol. 115(P3), pages 1513-1532.
    3. Taljan, Gregor & Verbič, Gregor & Pantoš, Miloš & Sakulin, Manfred & Fickert, Lothar, 2012. "Optimal sizing of biomass-fired Organic Rankine Cycle CHP system with heat storage," Renewable Energy, Elsevier, vol. 41(C), pages 29-38.
    4. Andersen, Anders N. & Østergaard, Poul Alberg, 2018. "A method for assessing support schemes promoting flexibility at district energy plants," Applied Energy, Elsevier, vol. 225(C), pages 448-459.
    5. Dressler, Luisa, 2016. "Support schemes for renewable electricity in the European Union: Producer strategies and competition," Energy Economics, Elsevier, vol. 60(C), pages 186-196.
    6. Lund, Henrik, 2005. "Large-scale integration of wind power into different energy systems," Energy, Elsevier, vol. 30(13), pages 2402-2412.
    7. Lund, Rasmus & Persson, Urban, 2016. "Mapping of potential heat sources for heat pumps for district heating in Denmark," Energy, Elsevier, vol. 110(C), pages 129-138.
    8. Hernández, J.C. & Vidal, P.G. & Almonacid, G., 1998. "Photovoltaic in grid-connected buildings, sizing and economic analysis," Renewable Energy, Elsevier, vol. 15(1), pages 562-565.
    9. Winterscheid, Carlo & Dalenbäck, Jan-Olof & Holler, Stefan, 2017. "Integration of solar thermal systems in existing district heating systems," Energy, Elsevier, vol. 137(C), pages 579-585.
    10. Haas, Reinhard & Panzer, Christian & Resch, Gustav & Ragwitz, Mario & Reece, Gemma & Held, Anne, 2011. "A historical review of promotion strategies for electricity from renewable energy sources in EU countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(2), pages 1003-1034, February.
    11. Averfalk, Helge & Ingvarsson, Paul & Persson, Urban & Gong, Mei & Werner, Sven, 2017. "Large heat pumps in Swedish district heating systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 1275-1284.
    12. Heinz, Boris & Henkel, Johannes, 2012. "Balancing wind energy and participating in electricity markets with a fuel cell population," Energy, Elsevier, vol. 48(1), pages 188-195.
    13. Nielsen, Steffen & Sorknæs, Peter & Østergaard, Poul Alberg, 2011. "Electricity market auction settings in a future Danish electricity system with a high penetration of renewable energy sources – A comparison of marginal pricing and pay-as-bid," Energy, Elsevier, vol. 36(7), pages 4434-4444.
    14. Connolly, D. & Lund, H. & Mathiesen, B.V. & Werner, S. & Möller, B. & Persson, U. & Boermans, T. & Trier, D. & Østergaard, P.A. & Nielsen, S., 2014. "Heat Roadmap Europe: Combining district heating with heat savings to decarbonise the EU energy system," Energy Policy, Elsevier, vol. 65(C), pages 475-489.
    15. Gawel, Erik & Purkus, Alexandra, 2013. "Promoting the market and system integration of renewable energies through premium schemes: A case study of the German market premium," UFZ Discussion Papers 4/2013, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    16. Sovacool, Benjamin K., 2013. "Energy policymaking in Denmark: Implications for global energy security and sustainability," Energy Policy, Elsevier, vol. 61(C), pages 829-839.
    17. Lund, Henrik & Østergaard, Poul Alberg, 2000. "Electric grid and heat planning scenarios with centralised and distributed sources of conventional, CHP and wind generation," Energy, Elsevier, vol. 25(4), pages 299-312.
    18. Jiménez Navarro, Juan Pablo & Cejudo López, José Manuel & Connolly, David, 2017. "The effect of feed-in-tariff supporting schemes on the viability of a district heating and cooling production system," Energy, Elsevier, vol. 134(C), pages 438-448.
    19. Gebremedhin, Alemayehu & Carlson, Annelie, 2002. "Optimisation of merged district-heating systems--benefits of co-operation in the light of externality costs," Applied Energy, Elsevier, vol. 73(3-4), pages 223-235, November.
    20. Toke, David & Fragaki, Aikaterini, 2008. "Do liberalised electricity markets help or hinder CHP and district heating? The case of the UK," Energy Policy, Elsevier, vol. 36(4), pages 1448-1456, April.
    21. Gawel, Erik & Purkus, Alexandra, 2013. "Promoting the market and system integration of renewable energies through premium schemes—A case study of the German market premium," Energy Policy, Elsevier, vol. 61(C), pages 599-609.
    22. Østergaard, Poul Alberg & Lund, Henrik, 2011. "A renewable energy system in Frederikshavn using low-temperature geothermal energy for district heating," Applied Energy, Elsevier, vol. 88(2), pages 479-487, February.
    23. Fragaki, Aikaterini & Andersen, Anders N. & Toke, David, 2008. "Exploration of economical sizing of gas engine and thermal store for combined heat and power plants in the UK," Energy, Elsevier, vol. 33(11), pages 1659-1670.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Manfren, Massimiliano & Nastasi, Benedetto & Groppi, Daniele & Astiaso Garcia, Davide, 2020. "Open data and energy analytics - An analysis of essential information for energy system planning, design and operation," Energy, Elsevier, vol. 213(C).
    2. Østergaard, P.A. & Lund, H. & Thellufsen, J.Z. & Sorknæs, P. & Mathiesen, B.V., 2022. "Review and validation of EnergyPLAN," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    3. Aliana, Arnau & Chang, Miguel & Østergaard, Poul Alberg & Victoria, Marta & Andersen, Anders N., 2022. "Performance assessment of using various solar radiation data in modelling large-scale solar thermal systems integrated in district heating networks," Renewable Energy, Elsevier, vol. 190(C), pages 699-712.
    4. Østergaard, Poul Alberg & Andersen, Anders N., 2023. "Optimal heat storage in district energy plants with heat pumps and electrolysers," Energy, Elsevier, vol. 275(C).
    5. Østergaard, Poul Alberg & Andersen, Anders N. & Sorknæs, Peter, 2022. "The business-economic energy system modelling tool energyPRO," Energy, Elsevier, vol. 257(C).
    6. Østergaard, Poul Alberg & Andersen, Anders N., 2021. "Variable taxes promoting district heating heat pump flexibility," Energy, Elsevier, vol. 221(C).
    7. Gao, Shuang & Jurasz, Jakub & Li, Hailong & Corsetti, Edoardo & Yan, Jinyue, 2022. "Potential benefits from participating in day-ahead and regulation markets for CHPs," Applied Energy, Elsevier, vol. 306(PA).
    8. Golmohamadi, Hessam & Larsen, Kim Guldstrand & Jensen, Peter Gjøl & Hasrat, Imran Riaz, 2022. "Integration of flexibility potentials of district heating systems into electricity markets: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 159(C).
    9. Nielsen, Steffen & Østergaard, Poul Alberg & Sperling, Karl, 2023. "Renewable energy transition, transmission system impacts and regional development – a mismatch between national planning and local development," Energy, Elsevier, vol. 278(PA).
    10. Zhou, Pengfei & Luo, Jie & Cheng, Fei & Yüksel, Serhat & Dinçer, Hasan, 2021. "Analysis of risk priorities for renewable energy investment projects using a hybrid IT2 hesitant fuzzy decision-making approach with alpha cuts," Energy, Elsevier, vol. 224(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Østergaard, P.A. & Lund, H. & Thellufsen, J.Z. & Sorknæs, P. & Mathiesen, B.V., 2022. "Review and validation of EnergyPLAN," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    2. Andersen, Anders N. & Østergaard, Poul Alberg, 2018. "A method for assessing support schemes promoting flexibility at district energy plants," Applied Energy, Elsevier, vol. 225(C), pages 448-459.
    3. Østergaard, Poul Alberg & Andersen, Anders N., 2018. "Economic feasibility of booster heat pumps in heat pump-based district heating systems," Energy, Elsevier, vol. 155(C), pages 921-929.
    4. Golmohamadi, Hessam & Larsen, Kim Guldstrand & Jensen, Peter Gjøl & Hasrat, Imran Riaz, 2022. "Integration of flexibility potentials of district heating systems into electricity markets: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 159(C).
    5. Østergaard, Poul Alberg & Andersen, Anders N., 2021. "Variable taxes promoting district heating heat pump flexibility," Energy, Elsevier, vol. 221(C).
    6. Ma, Tao & Østergaard, Poul Alberg & Lund, Henrik & Yang, Hongxing & Lu, Lin, 2014. "An energy system model for Hong Kong in 2020," Energy, Elsevier, vol. 68(C), pages 301-310.
    7. Mathiesen, B.V. & Lund, H. & Connolly, D. & Wenzel, H. & Østergaard, P.A. & Möller, B. & Nielsen, S. & Ridjan, I. & Karnøe, P. & Sperling, K. & Hvelplund, F.K., 2015. "Smart Energy Systems for coherent 100% renewable energy and transport solutions," Applied Energy, Elsevier, vol. 145(C), pages 139-154.
    8. Averfalk, Helge & Ingvarsson, Paul & Persson, Urban & Gong, Mei & Werner, Sven, 2017. "Large heat pumps in Swedish district heating systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 1275-1284.
    9. Kwon, Pil Seok & Østergaard, Poul Alberg, 2013. "Priority order in using biomass resources – Energy systems analyses of future scenarios for Denmark," Energy, Elsevier, vol. 63(C), pages 86-94.
    10. Østergaard, Poul Alberg & Andersen, Anders N., 2016. "Booster heat pumps and central heat pumps in district heating," Applied Energy, Elsevier, vol. 184(C), pages 1374-1388.
    11. Østergaard, Poul Alberg & Jantzen, Jan & Marczinkowski, Hannah Mareike & Kristensen, Michael, 2019. "Business and socioeconomic assessment of introducing heat pumps with heat storage in small-scale district heating systems," Renewable Energy, Elsevier, vol. 139(C), pages 904-914.
    12. Chittum, Anna & Østergaard, Poul Alberg, 2014. "How Danish communal heat planning empowers municipalities and benefits individual consumers," Energy Policy, Elsevier, vol. 74(C), pages 465-474.
    13. Sorknæs, Peter & Lund, Henrik & Andersen, Anders N., 2015. "Future power market and sustainable energy solutions – The treatment of uncertainties in the daily operation of combined heat and power plants," Applied Energy, Elsevier, vol. 144(C), pages 129-138.
    14. Lund, Henrik & Werner, Sven & Wiltshire, Robin & Svendsen, Svend & Thorsen, Jan Eric & Hvelplund, Frede & Mathiesen, Brian Vad, 2014. "4th Generation District Heating (4GDH)," Energy, Elsevier, vol. 68(C), pages 1-11.
    15. Moser, Simon & Mayrhofer, Julia & Schmidt, Ralf-Roman & Tichler, Robert, 2018. "Socioeconomic cost-benefit-analysis of seasonal heat storages in district heating systems with industrial waste heat integration," Energy, Elsevier, vol. 160(C), pages 868-874.
    16. Narula, Kapil & Chambers, Jonathan & Streicher, Kai N. & Patel, Martin K., 2019. "Strategies for decarbonising the Swiss heating system," Energy, Elsevier, vol. 169(C), pages 1119-1131.
    17. Guelpa, Elisa & Bischi, Aldo & Verda, Vittorio & Chertkov, Michael & Lund, Henrik, 2019. "Towards future infrastructures for sustainable multi-energy systems: A review," Energy, Elsevier, vol. 184(C), pages 2-21.
    18. Aliana, Arnau & Chang, Miguel & Østergaard, Poul Alberg & Victoria, Marta & Andersen, Anders N., 2022. "Performance assessment of using various solar radiation data in modelling large-scale solar thermal systems integrated in district heating networks," Renewable Energy, Elsevier, vol. 190(C), pages 699-712.
    19. Rämä, Miika & Wahlroos, Mikko, 2018. "Introduction of new decentralised renewable heat supply in an existing district heating system," Energy, Elsevier, vol. 154(C), pages 68-79.
    20. Winkler, Jenny & Gaio, Alberto & Pfluger, Benjamin & Ragwitz, Mario, 2016. "Impact of renewables on electricity markets – Do support schemes matter?," Energy Policy, Elsevier, vol. 93(C), pages 157-167.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:192:y:2020:i:c:s0360544219323345. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.