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District Heating Tariffs, Economic Optimisation and Local Strategies during Radical Technological Change

Author

Listed:
  • Søren Djørup

    (Department of Planning, Aalborg University, Rendsburggade 14, 9000 Aalborg, Denmark)

  • Karl Sperling

    (Department of Planning, Aalborg University, Rendsburggade 14, 9000 Aalborg, Denmark)

  • Steffen Nielsen

    (Department of Planning, Aalborg University, Rendsburggade 14, 9000 Aalborg, Denmark)

  • Poul Alborg Østergaard

    (Department of Planning, Aalborg University, Rendsburggade 14, 9000 Aalborg, Denmark)

  • Jakob Zinck Thellufsen

    (Department of Planning, Aalborg University, Rendsburggade 14, 9000 Aalborg, Denmark)

  • Peter Sorknæs

    (Department of Planning, Aalborg University, Rendsburggade 14, 9000 Aalborg, Denmark)

  • Henrik Lund

    (Department of Planning, Aalborg University, Rendsburggade 14, 9000 Aalborg, Denmark)

  • David Drysdale

    (Department of Planning, Aalborg University, AC Meyers Vænge 15, 2450 Copenhagen, Denmark)

Abstract

This paper addresses economic aspects of heat savings in the context of strategic heat planning. The analysis uses the city of Aalborg, Denmark, as a case where municipalisation through a recent acquisition of a coal-fired cogeneration of heat and power (CHP) plant has made an update of a municipal strategic energy plan necessary. Combining datasets on buildings and insulation techniques with economic methods, we investigate how the local district heating tariff can be adapted to improve the conditions for heat savings and support the transition to lower supply temperatures in line with the requirements of future fourth generation district heating systems. The paper concludes that implementing a fully variable heat tariff scheme improves the financial incentive for heat savings, while also making the system development less vulnerable to fluctuations and shortages in capital markets. The paper supplements existing literature on heat savings with novelty in its approach and in its systematic investigation of the interplay between tariff policies and interest rates.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jeners:v:13:y:2020:i:5:p:1172-:d:328328
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    References listed on IDEAS

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    Cited by:

    1. Wenxiao Chu & Francesco Calise & Neven Duić & Poul Alberg Østergaard & Maria Vicidomini & Qiuwang Wang, 2020. "Recent Advances in Technology, Strategy and Application of Sustainable Energy Systems," Energies, MDPI, vol. 13(19), pages 1-29, October.
    2. Vannahme, Anna & Ehrenwirth, Mathias & Schrag, Tobias, 2024. "Development and application of a guideline for assessing optimization potentials for district heating systems," Energy, Elsevier, vol. 297(C).
    3. Pažėraitė, Aušra & Lekavičius, Vidas & Gatautis, Ramūnas, 2022. "District heating system as the infrastructure for competition among producers in the heat market," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    4. Thellufsen, J.Z. & Lund, H. & Sorknæs, P. & Østergaard, P.A. & Chang, M. & Drysdale, D. & Nielsen, S. & Djørup, S.R. & Sperling, K., 2020. "Smart energy cities in a 100% renewable energy context," Renewable and Sustainable Energy Reviews, Elsevier, vol. 129(C).

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