IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

A review of the pricing mechanisms for district heating systems

Listed author(s):
  • Li, Hailong
  • Sun, Qie
  • Zhang, Qi
  • Wallin, Fredrik
Registered author(s):

    Heating represents the largest proportion of energy use as supplied to consumers across all end energy uses. Therefore, there is huge potential for energy savings in the heating sector in order to reduce the emission of CO2. District heating (DH) has been considered an efficient, environmentally friendly and cost-effective method for heating in buildings, and is playing an important role in the mitigation of climate change. In the interest of fairness and in the highly competitive market the DH companies operate, there is a strong need to develop a novel heat pricing mechanism in order to promote sustainable development of DH systems. In this paper, existing methods and models regarding heat pricing have been reviewed. The features of different pricing mechanisms have been analysed, including advantages and disadvantages. Insights into developing an advanced pricing mechanism for DH systems have been offered.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.sciencedirect.com/science/article/pii/S136403211400820X
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Elsevier in its journal Renewable and Sustainable Energy Reviews.

    Volume (Year): 42 (2015)
    Issue (Month): C ()
    Pages: 56-65

    as
    in new window

    Handle: RePEc:eee:rensus:v:42:y:2015:i:c:p:56-65
    DOI: 10.1016/j.rser.2014.10.003
    Contact details of provider: Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description

    Order Information: Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/bibliographic
    Web: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/bibliographic

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as
    in new window


    1. Björkqvist, Olof & Idefeldt, Jim & Larsson, Aron, 2010. "Risk assessment of new pricing strategies in the district heating market: A case study at Sundsvall Energi AB," Energy Policy, Elsevier, vol. 38(5), pages 2171-2178, May.
    2. Karlsson, Asa & Gustavsson, Leif, 2003. "External costs and taxes in heat supply systems," Energy Policy, Elsevier, vol. 31(14), pages 1541-1560, November.
    3. Henning, Dag, 1997. "MODEST—An energy-system optimisation model applicable to local utilities and countries," Energy, Elsevier, vol. 22(12), pages 1135-1150.
    4. Fahlén, E. & Ahlgren, E.O., 2010. "Accounting for external costs in a study of a Swedish district-heating system - An assessment of environmental policies," Energy Policy, Elsevier, vol. 38(9), pages 4909-4920, September.
    5. Korppoo, Anna & Korobova, Nina, 2012. "Modernizing residential heating in Russia: End-use practices, legal developments, and future prospects," Energy Policy, Elsevier, vol. 42(C), pages 213-220.
    6. Schramm, Gunter, 1991. "Marginal cost pricing revisited," Energy Economics, Elsevier, vol. 13(4), pages 245-249, October.
    7. 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.
    8. Andersson, M., 1994. "Shadow prices for heat generation in time-dependent and dynamic energy systems," Energy, Elsevier, vol. 19(12), pages 1205-1211.
    9. Della Valle, Anna P., 1988. "Short-run versus long-run marginal cost pricing," Energy Economics, Elsevier, vol. 10(4), pages 283-286, October.
    10. Zhang, Junli & Ge, Bin & Xu, Hongsheng, 2013. "An equivalent marginal cost-pricing model for the district heating market," Energy Policy, Elsevier, vol. 63(C), pages 1224-1232.
    11. Poputoaia, Diana & Bouzarovski, Stefan, 2010. "Regulating district heating in Romania: Legislative challenges and energy efficiency barriers," Energy Policy, Elsevier, vol. 38(7), pages 3820-3829, July.
    12. Verbruggen, Aviel, 1983. "Cogeneration -- allocation of joint costs," Energy Policy, Elsevier, vol. 11(2), pages 171-176, June.
    13. Westin, Paul & Lagergren, Fredrik, 2002. "Re-regulating district heating in Sweden," Energy Policy, Elsevier, vol. 30(7), pages 583-596, June.
    14. Linden, Mikael & Peltola-Ojala, Päivi, 2010. "The deregulation effects of Finnish electricity markets on district heating prices," Energy Economics, Elsevier, vol. 32(5), pages 1191-1198, September.
    15. Sjödin, Jörgen & Henning, Dag, 2004. "Calculating the marginal costs of a district-heating utility," Applied Energy, Elsevier, vol. 78(1), pages 1-18, May.
    16. Difs, Kristina & Trygg, Louise, 2009. "Pricing district heating by marginal cost," Energy Policy, Elsevier, vol. 37(2), pages 606-616, February.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:42:y:2015:i:c:p:56-65. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.