NO. 1 /2020 INTERNATIONAL MAGAZINE ON DISTRICT HEATING AND COOLING FOCUS How to District Energize your City Sign up to receive Hot Cool Contents FOCUS ARTICLES: How to District Energize your City 4 8 12 16 20 22 ENERGY TRANSITIONED FUTURE By Isidore McCormack and John Flørning THE BIG PUZZLE STRATEGIC ENERGY PLANNING By Anders Hasselager and Lars Gullev COMPENSATION TO NATURAL GAS COMPANIES WHEN THEIR HEAT MARKETS CONVERT TO D How to District Energize your City How to District Energize your City is the title of this issue of Hot Cool. And that's the essence of DBDH's work. DBDH publishes Hot Cool but the main business is helping cities establish sustainable district heating or helping them integrate green technology into ENERGY TRANSITIONED FUTURE DRIVERS & APPROACHES In this article we discuss different drivers and development approaches and consider some basic necessary steps to take in order to district energize a city. First, we take some different case studies: Isidore McCormack is Chief Project Manager and Jo energy delivery is not well known or common in any of these countries. As a result, each city has their respective barriers to address in order to realise this transition, but these barriers are well-known in other countries with a developed DH sector and so are being addressed incrementally. What e 10 STEP Each of the above projects have taken different routes to project development and have different drivers propelling them forward. However, each has followed some basic steps. We outline ten key steps below to support the development of a policy and investment road map for a district energy s PS 6 TO DISTRICT ENERGIZE YOUR CITY Carry out project feasibility and viability Technical, economic and environmental viability feasibility studies are a critical project develop-ment step for investment realisation and project progression. Todays benchmarks for viability are likely to change as PUZZLE the big Strategic energy planning By Anders Hasselager, Project Manager, Gate 21 and Lars Gullev, CEO, VEKS (Energy Company west of Copenhagen). Experience from The Capital Region of Denmark Looking into the future Lars Gullev, CEO at VEKS, explains: We are looking into a future energy syst In addition, 27% of electricity consumption can be made technically flexible and adapted to wind and solar. For sustainable energy, a technical potential of 37 TW h/year is estimated. The largest potential being heat production, including solar heat, geothermal energy, and surplus heat in combinatio How do we get there? The joint strategic energy plan for the EPT33 municipalities recommends a Roadmap 2025 presenting 34 actions being implemented by 2025. The vision of fossil-free energy systems in 2035 and a fossil-free transport system in 2050 requires considerable effort from many parts. All e Prioritization and continuous adjustment The transition to a fossil-free energy system is a complicated, long-term process. It requires new knowledge, new solutions, and a coordinated effort to make it a reality. There is a need for sustained efforts over the next several years, and therefore the in Compensation to natural gas companies when their heat markets convert to district heating By Ole Odgaard, Former Senior Policy Advisor on district heating at the Danish Energy Agency In many places, lower consumer prices could be obtained by replacing natural gas by district heating. But such conve Compensation = a part of the natural gas distribution companys remaining debt The compensation scheme compen-sates the natural gas companies as follows: the district heating company compensates for the leaving natural gas customers' share of the outstanding debt. If a district heating customer exits Size of compensation in Denmarks 3 natural gas distribution areas (Danish Kroner = kr.) HMN 1 Euro = 7.45 Danish kr. Naturgas DONG (Now Ørsted) NGF (Now Nature Energy) 6,000 m3 per year 756 kr. 8,236 kr. 6,344 kr. 6 12,000 m3 0.380 kr./m3 4.123 kr./m3 3.168 kr./m3 12 45,000 m3 0.361 k Cities in the UK can get a district heating mentor for FREE! This Mentorship offer is sponsored by the Royal Danish Embassy, DBDH, Danish district heating companies, and supported by BEIS, and the Scottish Government, for improving district heating projects in England and Scotland. Mentor Sponsors Transition to DISTRICT HEATING IN SCOTLAND Guy Milligan is Principal Consultant in Rambolls UK energy division and leads on energy strategy and planning, guiding clients ambitious future energy systems and infrastructure to meet net-zero carbon targets. Since 1990 greenhouse gas emissions in Scotl Net Zero MAIN ENERGY SOURCE IN CURRENT HEAT NETWORKS 10% 1% 1% Biomass CHP or boiler Heat pumps Energy from waste 32% Natural gas CHP 10,000 homes will be connected to heat networks this year! Ambitious targets require improved Scottish Government policies and strong governance to drive a r Room for Improvement Delivery models for District Heating in practice The Committee on Climate Changes Central scenario suggests that heat networks can deliver up to 5.7MtCO2 emissions reduction in buildings by 2030, which represents around a six-fold increase on todays heat networks carbon emissi ABERDEEN CITY COUNCIL STIRLING COUNCIL Council owned energy supply company Aberdeen Heat and Power (AH&P) was established by Aberdeen City Council in 2002 as an independent not-for-profit energy services company to deliver affordable heat, and thereby help to alleviate fuel poverty, and to reduce Aquathermal Aquathermal energy is a unique source of heat and cold. In the Netherlands it has a great potential to partly provide the heat demand of the built environment. Earthquake victory for the environment Foreign examples The Netherlands has for a long time been able to sustain heat to house energy TEO concept In the summer the surface water is warmed up by the sun. In Dutch cities the warming up leads to excessively warm surface water. In extreme situations the temperature of the surface water rises to 25 C. This has negative effects on the water quality and contributes to the urban he Smart Sustainable City Cities are growing and we need to create more livable cities to meet the UN Sustainability Goals. Energy plays an important role in air quality, carbon footprint, and fuel poverty. Fortunately, we have opportunities to serve the energy needs in a cost-effective and environment District cooling to Copenhagen Markets Heat from datacenters The first large customer for cooling turned out to be a new large Astrid Birnbaum explains: We have several data centers in our whole-sale market for vegetables and flowers (Copenhagen municipality. And our business plan showed that it w George Robinson George leads on investment and finance in the Heat Network Delivery Unit (HNDU) in the UK Department for Business, Energy and Industrial Strategy (BEIS). All opinions expressed in this article are his alone. QUESTIONING THE VIEW THAT PRIVATE INVESTORS ONLY HUNT DOWN LARGE IRRs The I Capital Available Project 1 only represents a £3m opportunity; whereas Project 2 is 6 times larger. Assuming that the investor can only invest in one project then she must have less than £21m of capital available (or else she might consider investing in both) lets assume she has exactly £18m. If sh Local Authorities and wider public sector investors may well currently consider investing in projects with returns that are lower than most private investors would be able to go down to. However, this is not necessarily because they have access to cheap finance: many private investors also have acce BUSINESS MODELS FOR SURPLUS HEATING Green Energy provides an overview of the four most common business models concerning surplus heat, but it could as well be describing district cooling, a supply of district heating by incineration of residual products, etc. MODEL 1 MODEL 3 The District Heating HEATman Alfred Heller, Civil engineer, PhD, Chief Consulting Engineer, NIRAS A/S, Denmark HEATman is leading the digital agenda for the district heating sector. HEATman is a cooperation between private and public partners. The goal is an integrated and adaptable product platform for district heati A smart digital toolbox for district heating The vital platforms The first vital platform is a private-public partnership that aims at a common promotion and branding of HEATman and its products for the district energy sector. The second platform is a cloud that facilitates the cooperation with basi Digitization of industrial components To increase the impact of HEATman, efforts are included to digitize industrial components. It is a prerequisite of HEATman that the involved components are able be monitored, to communicate digitally and be controlled remotely. Currently the following components Member company profile: FRESE A/S A global family business 2019 was a landmark year for Frese A/S in Slagelse, Denmark, in more than one way. The company celebrated its 75th anniversary since it was established as a small foundry in a local basement. Frese still owns and operates a modern metal Lowest possible Total Cost of Ownership BEST LAMBDA VALUE FOR FLEXIBLE PIPES When district energizing your city, Total Cost of Ownership (TCO) is the essential choice factor for preinsulated pipe systems. Heat loss properties of the pipe system are an important part of the TCO. Thus, we are proud