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Analyzing variables for district heating collaborations between energy utilities and industries

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  • Thollander, P.
  • Svensson, I.L.
  • Trygg, L.

Abstract

One vital means of raising energy efficiency is to introduce district heating in industry. The aim of this paper is to study factors which promote and inhibit district heating collaborations between industries and utilities. The human factors involved showed to affect district heating collaborations more than anything else does. Particularly risk, imperfect and asymmetric information, credibility and trust, inertia and values are adequate variables when explaining the establishment or failure of industry-energy utility collaborations, while heterogeneity, access to capital and hidden costs appear to be of lower importance. A key conclusion from this study is that in an industry-energy utility collaboration, it is essential to nurture the business relationship. In summary, successful collaboration depends more on the individuals and organizations involved in the relationship between the two parties than on the technology used in the collaboration.

Suggested Citation

  • Thollander, P. & Svensson, I.L. & Trygg, L., 2010. "Analyzing variables for district heating collaborations between energy utilities and industries," Energy, Elsevier, vol. 35(9), pages 3649-3656.
    • Handle: RePEc:eee:energy:v:35:y:2010:i:9:p:3649-3656
    DOI: 10.1016/j.energy.2010.05.009
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    3. Thollander, Patrik & Backlund, Sandra & Trianni, Andrea & Cagno, Enrico, 2013. "Beyond barriers – A case study on driving forces for improved energy efficiency in the foundry industries in Finland, France, Germany, Italy, Poland, Spain, and Sweden," Applied Energy, Elsevier, vol. 111(C), pages 636-643.
    4. Lygnerud, Kristina & Klugman, Sofia & Fransson, Nathalie & Nilsson, Johanna, 2022. "Risk assessment of industrial excess heat collaborations – Empirical data from new and ongoing installations," Energy, Elsevier, vol. 255(C).
    5. Anna-Lena Lane & Magdalena Boork & Patrik Thollander, 2019. "Barriers, Driving Forces and Non-Energy Benefits for Battery Storage in Photovoltaic (PV) Systems in Modern Agriculture," Energies, MDPI, vol. 12(18), pages 1-17, September.
    6. Persson, Urban & Werner, Sven, 2012. "District heating in sequential energy supply," Applied Energy, Elsevier, vol. 95(C), pages 123-131.
    7. Sanaei, Sayyed Mohammad & Nakata, Toshihiko, 2012. "Optimum design of district heating: Application of a novel methodology for improved design of community scale integrated energy systems," Energy, Elsevier, vol. 38(1), pages 190-204.
    8. Lygnerud, Kristina & Wheatcroft, Edward & Wynn, Henry, 2019. "Contracts, business models and barriers to investing in low temperature district heating projects," LSE Research Online Documents on Economics 101286, London School of Economics and Political Science, LSE Library.
    9. Sandvall, Akram Fakhri & Ahlgren, Erik O. & Ekvall, Tomas, 2016. "System profitability of excess heat utilisation – A case-based modelling analysis," Energy, Elsevier, vol. 97(C), pages 424-434.
    10. Hasan, A S M Monjurul & Tuhin, Rashedul Amin & Ullah, Mahfuz & Sakib, Taiyeb Hasan & Thollander, Patrik & Trianni, Andrea, 2021. "A comprehensive investigation of energy management practices within energy intensive industries in Bangladesh," Energy, Elsevier, vol. 232(C).
    11. Colmenar-Santos, Antonio & Rosales-Asensio, Enrique & Borge-Diez, David & Mur-Pérez, Francisco, 2015. "Cogeneration and district heating networks: Measures to remove institutional and financial barriers that restrict their joint use in the EU-28," Energy, Elsevier, vol. 85(C), pages 403-414.
    12. Lygnerud, Kristina & Werner, Sven, 2018. "Risk assessment of industrial excess heat recovery in district heating systems," Energy, Elsevier, vol. 151(C), pages 430-441.
    13. Kumar, Shravan & Thakur, Jagruti & Gardumi, Francesco, 2022. "Techno-economic modelling and optimisation of excess heat and cold recovery for industries: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    14. Olsson, Linda & Wetterlund, Elisabeth & Söderström, Mats, 2015. "Assessing the climate impact of district heating systems with combined heat and power production and industrial excess heat," Resources, Conservation & Recycling, Elsevier, vol. 96(C), pages 31-39.

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