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Developing innovative business models for reducing return temperatures in district heating systems: Approach and first results

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  • Leoni, Paolo
  • Geyer, Roman
  • Schmidt, Ralf-Roman

Abstract

Temperature reduction plays a key-role in increasing the energy efficiency of existing European district heating (DH) systems and, most important, in allowing a higher and more cost-efficient integration of sustainable low-temperature sources. However, technical, economical and legal barriers hamper the necessary investments. Purpose of this study is the elaboration of business models encouraging a substantial temperature reduction in existing DH systems and enabling the transition towards the 4GDH. Particular focus is paid on solutions incentivizing the deep implementation of measures on the demand side to reduce the network return temperatures. The information collected through the review of international success stories and through interviews with stakeholders is used to derive recommendations for business models and propose new ideas for Austrian DH utilities, though the replicability in other countries is not excluded. The elaborated solutions are intended to overcome the main barriers acting in synergy on three levels: 1) customers’ engagement in fault detection and in temperature reduction; 2) financing of fault detection and optimization measures through strategic partnerships and crowdfunding platforms; 3) Energy Saving Contracting, especially (but not only) to solve the split incentive issue in rental homes.

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  • 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).
    • Handle: RePEc:eee:energy:v:195:y:2020:i:c:s0360544220300700
    DOI: 10.1016/j.energy.2020.116963
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    6. Benakopoulos, Theofanis & Vergo, William & Tunzi, Michele & Salenbien, Robbe & Kolarik, Jakub & Svendsen, Svend, 2022. "Energy and cost savings with continuous low temperature heating versus intermittent heating of an office building with district heating," Energy, Elsevier, vol. 252(C).
    7. Benakopoulos, Theofanis & Tunzi, Michele & Salenbien, Robbe & Svendsen, Svend, 2021. "Strategy for low-temperature operation of radiator systems using data from existing digital heat cost allocators," Energy, Elsevier, vol. 231(C).
    8. Nielsen, Tore Bach & Lund, Henrik & Østergaard, Poul Alberg & Duic, Neven & Mathiesen, Brian Vad, 2021. "Perspectives on energy efficiency and smart energy systems from the 5th SESAAU2019 conference," Energy, Elsevier, vol. 216(C).
    9. Neumayer, Martin & Stecher, Dominik & Grimm, Sebastian & Maier, Andreas & Bücker, Dominikus & Schmidt, Jochen, 2023. "Fault and anomaly detection in district heating substations: A survey on methodology and data sets," Energy, Elsevier, vol. 276(C).
    10. Angelidis, O. & Ioannou, A. & Friedrich, D. & Thomson, A. & Falcone, G., 2023. "District heating and cooling networks with decentralised energy substations: Opportunities and barriers for holistic energy system decarbonisation," Energy, Elsevier, vol. 269(C).
    11. Søren Djørup & Karl Sperling & Steffen Nielsen & Poul Alborg Østergaard & Jakob Zinck Thellufsen & Peter Sorknæs & Henrik Lund & David Drysdale, 2020. "District Heating Tariffs, Economic Optimisation and Local Strategies during Radical Technological Change," Energies, MDPI, vol. 13(5), pages 1-15, March.

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