IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v181y2023ics0301421523002860.html
   My bibliography  Save this article

Sustainable deployment of energy efficient district heating: city business model

Author

Listed:
  • Pardo-Bosch, Francesc
  • Blanco, Ana
  • Mendoza, Nora
  • Libreros, Bibiana
  • Tejedor, Blanca
  • Pujadas, Pablo

Abstract

Heating and cooling account for 50% of the European Union's energy consumption and, therefore, reducing its impact is essential to minimise dependency on energy imports (particularly fossil fuel), which are bound to geopolitical conflicts. District heating arises as a critical player in this transition towards a more efficient energy framework. Despite its numerous advantages, implementation is still hindered by inadequate District Heating business models and incentives. This study conducts a holistic examination on the feasibility, effectiveness and, ultimately, the efficiency of establishing a publicly owned and public-privately managed District Heating infrastructure network via a pilot intervention in the city of San Sebastian in the north of Spain. A Value Proposition Canvas, Value Creation Ecosystem and City Model Canvas analysis provides insight into fundamental patterns and relevant recommendations for other municipalities trying to find a business model in which all the involved stakeholders can capture value while addressing at the same time the energy challenges of cities.

Suggested Citation

  • Pardo-Bosch, Francesc & Blanco, Ana & Mendoza, Nora & Libreros, Bibiana & Tejedor, Blanca & Pujadas, Pablo, 2023. "Sustainable deployment of energy efficient district heating: city business model," Energy Policy, Elsevier, vol. 181(C).
    • Handle: RePEc:eee:enepol:v:181:y:2023:i:c:s0301421523002860
    DOI: 10.1016/j.enpol.2023.113701
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421523002860
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2023.113701?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 & Østergaard, Poul Alberg & Chang, Miguel & Werner, Sven & Svendsen, Svend & Sorknæs, Peter & Thorsen, Jan Eric & Hvelplund, Frede & Mortensen, Bent Ole Gram & Mathiesen, Brian Vad & Boje, 2018. "The status of 4th generation district heating: Research and results," Energy, Elsevier, vol. 164(C), pages 147-159.
    2. Benedetta Grassi & Edoardo Alessio Piana & Gian Paolo Beretta & Mariagrazia Pilotelli, 2020. "Dynamic Approach to Evaluate the Effect of Reducing District Heating Temperature on Indoor Thermal Comfort," Energies, MDPI, vol. 14(1), pages 1-25, December.
    3. Buffa, Simone & Cozzini, Marco & D’Antoni, Matteo & Baratieri, Marco & Fedrizzi, Roberto, 2019. "5th generation district heating and cooling systems: A review of existing cases in Europe," Renewable and Sustainable Energy Reviews, Elsevier, vol. 104(C), pages 504-522.
    4. Kveselis, Vaclovas & Dzenajavičienė, Eugenija Farida & Masaitis, Sigitas, 2017. "Analysis of energy development sustainability: The example of the lithuanian district heating sector," Energy Policy, Elsevier, vol. 100(C), pages 227-236.
    5. Averfalk, Helge & Werner, Sven, 2020. "Economic benefits of fourth generation district heating," Energy, Elsevier, vol. 193(C).
    6. Tereshchenko, Tymofii & Nord, Natasa, 2016. "Energy planning of district heating for future building stock based on renewable energies and increasing supply flexibility," Energy, Elsevier, vol. 112(C), pages 1227-1244.
    7. Münster, Marie & Morthorst, Poul Erik & Larsen, Helge V. & Bregnbæk, Lars & Werling, Jesper & Lindboe, Hans Henrik & Ravn, Hans, 2012. "The role of district heating in the future Danish energy system," Energy, Elsevier, vol. 48(1), pages 47-55.
    8. Busch, Jonathan & Roelich, Katy & Bale, Catherine S.E. & Knoeri, Christof, 2017. "Scaling up local energy infrastructure; An agent-based model of the emergence of district heating networks," Energy Policy, Elsevier, vol. 100(C), pages 170-180.
    9. Isaac, Morna & van Vuuren, Detlef P., 2009. "Modeling global residential sector energy demand for heating and air conditioning in the context of climate change," Energy Policy, Elsevier, vol. 37(2), pages 507-521, February.
    10. Kristina Lygnerud, 2019. "Business Model Changes in District Heating: The Impact of the Technology Shift from the Third to the Fourth Generation," Energies, MDPI, vol. 12(9), pages 1-16, May.
    11. Giuseppe Grossi & Albert Meijer & Massimo Sargiacomo, 2020. "A public management perspective on smart cities: ‘Urban auditing’ for management, governance and accountability," Public Management Review, Taylor & Francis Journals, vol. 22(5), pages 633-647, May.
    12. Sayegh, M.A. & Danielewicz, J. & Nannou, T. & Miniewicz, M. & Jadwiszczak, P. & Piekarska, K. & Jouhara, H., 2017. "Trends of European research and development in district heating technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P2), pages 1183-1192.
    13. Werner, Sven, 2017. "International review of district heating and cooling," Energy, Elsevier, vol. 137(C), pages 617-631.
    14. Rezaie, Behnaz & Rosen, Marc A., 2012. "District heating and cooling: Review of technology and potential enhancements," Applied Energy, Elsevier, vol. 93(C), pages 2-10.
    15. Paiho, Satu & Saastamoinen, Heidi, 2018. "How to develop district heating in Finland?," Energy Policy, Elsevier, vol. 122(C), pages 668-676.
    16. Ma, Zheng & Knotzer, Armin & Billanes, Joy Dalmacio & Jørgensen, Bo Nørregaard, 2020. "A literature review of energy flexibility in district heating with a survey of the stakeholders’ participation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 123(C).
    17. Madina, Carlos & Zamora, Inmaculada & Zabala, Eduardo, 2016. "Methodology for assessing electric vehicle charging infrastructure business models," Energy Policy, Elsevier, vol. 89(C), pages 284-293.
    18. Leoni, Paolo & Geyer, Roman & Schmidt, Ralf-Roman, 2020. "Developing innovative business models for reducing return temperatures in district heating systems: Approach and first results," Energy, Elsevier, vol. 195(C).
    19. Lund, Henrik & Østergaard, Poul Alberg & Connolly, David & Mathiesen, Brian Vad, 2017. "Smart energy and smart energy systems," Energy, Elsevier, vol. 137(C), pages 556-565.
    20. Persson, U. & Möller, B. & Werner, S., 2014. "Heat Roadmap Europe: Identifying strategic heat synergy regions," Energy Policy, Elsevier, vol. 74(C), pages 663-681.
    21. 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.
    22. Lund, H. & Möller, B. & Mathiesen, B.V. & Dyrelund, A., 2010. "The role of district heating in future renewable energy systems," Energy, Elsevier, vol. 35(3), pages 1381-1390.
    Full references (including those not matched with items on IDEAS)

    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. Jodeiri, A.M. & Goldsworthy, M.J. & Buffa, S. & Cozzini, M., 2022. "Role of sustainable heat sources in transition towards fourth generation district heating – A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    2. 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).
    3. Alessandro Guzzini & Marco Pellegrini & Edoardo Pelliconi & Cesare Saccani, 2020. "Low Temperature District Heating: An Expert Opinion Survey," Energies, MDPI, vol. 13(4), pages 1-34, February.
    4. Dorotić, Hrvoje & Pukšec, Tomislav & Schneider, Daniel Rolph & Duić, Neven, 2021. "Evaluation of district heating with regard to individual systems – Importance of carbon and cost allocation in cogeneration units," Energy, Elsevier, vol. 221(C).
    5. Johansen, Katinka & Werner, Sven, 2022. "Something is sustainable in the state of Denmark: A review of the Danish district heating sector," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    6. Jimenez-Navarro, Juan-Pablo & Kavvadias, Konstantinos & Filippidou, Faidra & Pavičević, Matija & Quoilin, Sylvain, 2020. "Coupling the heating and power sectors: The role of centralised combined heat and power plants and district heat in a European decarbonised power system," Applied Energy, Elsevier, vol. 270(C).
    7. Meibodi, Saleh S. & Loveridge, Fleur, 2022. "The future role of energy geostructures in fifth generation district heating and cooling networks," Energy, Elsevier, vol. 240(C).
    8. Moreno, Diana & Nielsen, Steffen & Sorknæs, Peter & Lund, Henrik & Thellufsen, Jakob Zinck & Mathiesen, Brian Vad, 2024. "Exploring the location and use of baseload district heating supply. What can current heat sources tell us about future opportunities?," Energy, Elsevier, vol. 288(C).
    9. 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).
    10. Persson, Urban & Wiechers, Eva & Möller, Bernd & Werner, Sven, 2019. "Heat Roadmap Europe: Heat distribution costs," Energy, Elsevier, vol. 176(C), pages 604-622.
    11. Möller, Bernd & Wiechers, Eva & Persson, Urban & Grundahl, Lars & Lund, Rasmus Søgaard & Mathiesen, Brian Vad, 2019. "Heat Roadmap Europe: Towards EU-Wide, local heat supply strategies," Energy, Elsevier, vol. 177(C), pages 554-564.
    12. Mengting Jiang & Camilo Rindt & David M. J. Smeulders, 2022. "Optimal Planning of Future District Heating Systems—A Review," Energies, MDPI, vol. 15(19), pages 1-38, September.
    13. Ma, Zheng & Knotzer, Armin & Billanes, Joy Dalmacio & Jørgensen, Bo Nørregaard, 2020. "A literature review of energy flexibility in district heating with a survey of the stakeholders’ participation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 123(C).
    14. Sommer, Tobias & Sotnikov, Artem & Sulzer, Matthias & Scholz, Volkher & Mischler, Stefan & Rismanchi, Behzad & Gjoka, Kristian & Mennel, Stefan, 2022. "Hydrothermal challenges in low-temperature networks with distributed heat pumps," Energy, Elsevier, vol. 257(C).
    15. Gjoka, Kristian & Rismanchi, Behzad & Crawford, Robert H., 2023. "Fifth-generation district heating and cooling systems: A review of recent advancements and implementation barriers," Renewable and Sustainable Energy Reviews, Elsevier, vol. 171(C).
    16. Østergaard, Dorte Skaarup & Smith, Kevin Michael & Tunzi, Michele & Svendsen, Svend, 2022. "Low-temperature operation of heating systems to enable 4th generation district heating: A review," Energy, Elsevier, vol. 248(C).
    17. Lund, Henrik & Østergaard, Poul Alberg & Chang, Miguel & Werner, Sven & Svendsen, Svend & Sorknæs, Peter & Thorsen, Jan Eric & Hvelplund, Frede & Mortensen, Bent Ole Gram & Mathiesen, Brian Vad & Boje, 2018. "The status of 4th generation district heating: Research and results," Energy, Elsevier, vol. 164(C), pages 147-159.
    18. Beatriz María Paredes-Sánchez & José Pablo Paredes & Natalia Caparrini & Elena Rivo-López, 2021. "Analysis of District Heating and Cooling Energy Systems in Spain: Resources, Technology and Management," Sustainability, MDPI, vol. 13(10), pages 1-22, May.
    19. Sorknæs, Peter & Østergaard, Poul Alberg & Thellufsen, Jakob Zinck & Lund, Henrik & Nielsen, Steffen & Djørup, Søren & Sperling, Karl, 2020. "The benefits of 4th generation district heating in a 100% renewable energy system," Energy, Elsevier, vol. 213(C).
    20. Østergaard, Poul Alberg & Werner, Sven & Dyrelund, Anders & Lund, Henrik & Arabkoohsar, Ahmad & Sorknæs, Peter & Gudmundsson, Oddgeir & Thorsen, Jan Eric & Mathiesen, Brian Vad, 2022. "The four generations of district cooling - A categorization of the development in district cooling from origin to future prospect," Energy, Elsevier, vol. 253(C).

    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:enepol:v:181:y:2023:i:c:s0301421523002860. 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.elsevier.com/locate/enpol .

    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.