Post on 19-Mar-2020
CHP in Denmark
and Copenhagen
Jan ElleriisVice-DirectorMetropolitan Copenhagen Heating Transmission Company
District Heating in DenmarkThe history and the drivers
1903 the first DH system in Denmark (Frederiksberg), use of heat from waste incineration
No access to land fill
~ 1925 the first CPH plants in bigger cities, municipal ownership
Visionary technicians
~ 1960 ties, consumer own plant in smaller societies
Price gab heavy fuel oil
1980 Heat Supply Act
Regulation
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98 % of energy consumption was imported
92%
6% 2%
Oil
Coal
Renewable
Gross Energy Consumption 1972
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Danish Energy Strategy
The late 1970’s with focus on the security of supply(self-sufficiency)
The 1980’s with focus on the national economicoptimisation
The 1990’s with focus on the environmentalprotection
The 2000’s with different focus (liberalisation,economy and some environment)
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From Centralized to Decentralized CHP
Centralized production in the mid 80’s Decentralized production of today
• Decentralized CHP
• Wind mill park
• Centralized CHP
Legend:
6
District Heating Systems
District heating utility
Large combined heat and power plant
District Heating and Energy Efficiency Conference, Sarajevo
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0
20
40
60
80
100
120
140
1980 '85 '90 '95 '00 '05 '08
PJ
Large-scale CHP Units Small-scale CHP Units
District Heating Units Autoproducers, CHP
Autoproducers, Heat only
Production of District Heating by Type of Producer
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CHP Proportion of Electricity and District Heating Production
0%
20%
40%
60%
80%
100%
1980 '85 '90 '95 '00 '05 '08
District Heating Electricity
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Composition of Fuels in District Heating Production
0%
20%
40%
60%
80%
100%
1980 '85 '90 '95 '00 '05 '08
Oil Natural Gas Coal Renewable Energy and Waste
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Heating Installations in Dwellings
0
500
1000
1500
2000
2500
3000
1981 1990 2000 2008
1000 Units
Oil Boilers Natural Gas Boilers
District Heating Other
District heating covers 60 %
Long tradition for DH in Denmark
More than 450 DH companies in DK
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Legal Framework of District Heating
No thermal power plants but CHP.
Heat Supply Act sets frame for local decisions.
Municipalities have traditionally had the authority.
All DH companies are non-profit entities.
Prices = Sum of true costs (no local subsidies).
DH company forwards the heating bills directly tothe consumers – not via local government.
All consumers can complain about irregularities ormisuse of tariffs and prices to an independent stateregulatory authority.
All DH companies must report on prices, budgetsand delivery conditions to this authority.
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Statutory powers of the sectorGovernment
Implement energy strategy
Implement laws
Decide taxies (incentives)
Decide grant and subsidies (incentives)
Regulate the sector through the Energy Agency,Directives and guidelines
Directive regarding fuel and type of production
Control the sector through the
Energy Regulatory Authority, Tariffs and prices
Competition Authority, market and monopoly
www.energistyrelsen.dkwww.energitilsynet.dkwww.konkurrencestyrelsen.dk
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Statutory powers of the sectorMunicipality
Municipalities have statutory power
• Heat planning in municipality
• Approve all energy projects
• Responsible for demarcation between DH and naturalgas supply
• Decide forced connection of end users
Municipalities responsible for establishing DHcompanies
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District Heating companies
DH companies have no statutory power
Support the municipality in energy planningmatters (technical experience)
Support municipality defining environmental policy
Responsible for development, operation andmaintenance of DH-system
Responsible for budgeting and pricing strategywithin the framework of the Heat Supply Act
Responsible for financing of projects
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Private enterprises
Cooperation between DH-companies and privateenterprises regarding
Development of components for the sector
Standardisation (components, processes)
Construction work
Maintenance of components
Consumer payment for heat – 1Cost
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• DH is by law a non profit monopoly business– Only real cost can be covered by the heat payment
• Fixed cost not depending on heat consumption– Depreciation of investments
– Administration
– Fixed maintenance cost
• Variable cost depending on the heat consumption– Heat and energy (procurement or production)
– Power
– Taxes
– Variable maintenance cost
Consumer payment for heat - 2Tariffs
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• DH company decides split between fixed and variable element in the consumer tariff
• High share on the variable part gives incentives for energy savings, but problems with the budget
• Fixed element can be based on m2 heated area, installed heating capacity (kW) or recorded max load (kW)
• Calibrated energy meters for variable (m3 or kWh)
• The consumer can be a building complex
• The building owner is responsible for the distribution of the heating cost on al the tenants
Regulatory framework for tariffs
- Tariffs for the coming year shall be present before the start of the year
- Tariffs shall be reported to the Energy Regulatory Authority
- All consumers can make a complaint about the tariffs to the Energy Regulatory Authority
- Every settlement made by the Energy Regulatory Authority can be proved by a individual Appeal Committee
– members pointed out by organisations representing authorities, consumers and producers
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The Greater Copenhagen DH system
18 municipalities
4 integrated DH systems, 22 DH
companies
500,000 end – users
34,500 TJ (9,600 GWh,
32,700 GBtu)
Approx 20 % heat demand
in Denmark
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Design Concept
MWh fuel comsumption in DH pr. MWh sale
Base load production
Transmissionsystem
Distributionsystem
Heat exchangers
Combined heat and power; waste toenergy; geothermal heat, surplus heat from industry
Global peak load
Localpeak load
End users
Booster pumps
Municipal distribution companies
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Existing Heat Production Capacity
- 4 Waste to heat, 400 MW
- 4 CHP, 1.800 MW
– 7 units
– Steam turbines
– Gas turbines
– Coal, oil, gas, straw, wood pillars
- 1 Geothermal, 14 MW
- Several peak and reserve HOB
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Strength of the system -flexibility
More efficient and flexible heat productionby optimizing the choice of production unit depending on price on electricity
Heat production from:• Oil• Coal• Natural gas• Incineration• Wood pellets• Straw• Geothermal heat
Heat production from:27 % - Waste2 % - Geothermal
70 % - CHP1 % - Peak load
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CTR commercial structure
- Maintenance of technical system
- Construction of new lines and stations
- Operation of transmission system
- Operation of peak load plants (heat only boilers)
- Operation of 24 hour dispatch centre (also for local DH systems)
- Load dispatch (CHP and peak load)
- Heat purchase and sale
- Yearly turnover 1.5 billion DKK
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Corporate governance
-Joint municipal company
-Small organisation– 2 directors
– 11 technical staff
– 8 administrative staff
– 8 dispatch operators
-Physical maintenance and operation out sourced to local DH companies and private contractors
-Planning, design and supervision by consultant
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Fuel consumption
Waste
Geothermal
CHP biomass
CHP fossil fuel
Peak oil
Fuel consumption 2008
47 % based on CO2-neutral fuel
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Emissions CTR
0
10
20
30
40
50
60
70
2004 2005 2006 2007 2008
kg
/GJ o
r g
/GJ
CO2
SO2
NOx
Yearly reduction
CO2 -5,7 %
SO2 - 12,1 %
NOx - 8,4 %
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Marginal CO2 emission end-user level
0
10
20
30
40
50
60
70
80
90
kg/GJ
Individual oil CTR 1989 CTR 2009
CO2
Reduction 48 %
Savings 62 %
Savings ~ 1,000,000 t CO2