1 Efficient and Competitive District Heating and CHP Experience from Finland Seppo Aho Visegrad,...
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Transcript of 1 Efficient and Competitive District Heating and CHP Experience from Finland Seppo Aho Visegrad,...
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Efficient and Competitive District Heating and CHP
Experience from Finland
Seppo Aho
Visegrad, Hungary November 5, 2012
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A leading Nordic energy company
• The Nordic countries,Russia and the Baltic Rim in focus
• Operations in11 countries
• Second largest in power generation in the Nordic countries
• Total Power Generation 72.7 TWh• Total Heat Production 47.4 TWh
• Approx. 10 800employees in the Fortum Group
• 1.2 million electricity retail customers
• 1.6 million electricity distribution customers
• District heating for ~ 90 cities, in eight countries
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District heating and cooling in Finland 2011
• Heat sales (incl. taxes) 1 930 mill. €
• Sold heat energy 30,1 TWh
• Average price of DH (incl. taxes) 6,39 c/kWh
• Inhabitants in DH apartments 2,7 mill.
• Market share of district heat 46 %
• Sold district cooling energy 123 GWh
Source: Finnish Energy IndustriesSource: Finnish Energy Industries
Comprehensive CHP and open energy markets led to lowest prices of heat!
4Finnish Cleantech
Source: Finnish Energy Industries,
“ Finnish DH tariffs are the lowest in
Western Europe and lowest in the
world compared to the purchasing
power.“
“The fuel savings of about 22 TWh are
equal to 3 million metric tonnes of
hard coal. Such savings resulted in
600 kg of coal and 1400 kg of CO2
equivalent saved per inhabitant in
2009.“
Source: Euroheat&Power: Country by country/2011 Survey
DH prices EUR/GJ (2009)
Real price of district heatcorrected with cost-of living index, 1.1.1981 = 100
Share of the exciseand value addes taxeswas 29,4% in theaverage price of districtheat year 2011
Source: Finnish Energy IndustriesSource: Finnish Energy Industries
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Total costs, block of flats
0,00
50,00
100,00
150,00
Districtheating
Heatpump
Oil boiler Pelletboiler
€/M
Wh
Investment and capital costs Maintenance costs
Fixed costs Variable costs
District heating still highly competitive
Customer benefits• Most competitive price• Highly comfortable and reliable• Quality assurance
• Equipment inspections• Technical support 24 / 7• Constant local presence
• Automated metering and online reporting support energy savings
Social benefits• Enables efficient CHP production and
thus superior CO2 efficiency• Suits urban infrastructure• Centralised emission control in power
plant, flexible fuel mix
DH pricing - principle
• We are competing with other heating solutions
– DH prices have to be competitive
• Pricing is based also on:– Production structure– Fuel and CO2 allowance prices– Operation and maintenance costs– Capital costs– Taxes
• DH price is not regulated, however DH is in dominant market positions towards it's existing customers so all customers have to be treaded equally and price must be reasonable
Fortum DH products in Finland
62,85€/MWh VAT incl.valid until 1.1.2012 - 1.1.201464,70€/MWh 1.7.2012 - 1.7.2014price is valid for 2 years fixed period
59,66 /MWh VAT includedprice is valid 6 months and itwill be checked 1.1. and 1.7.
Key objective is long term competitiveness of district heat price Alternative Pricing in Practice – “IRL” competitiveness
Price development for district heating in Stocholm Sweden (193 MWh)
0
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700
800
900
1000
1100
1200
2007 2008 2009 2010 2011 2012
kr/
MW
h
District heating Heat pump/oil Pellets/oil Heat pump/electricity
Espoo DH system DH network length 800 kmNetwork volume 55 000 m3
No. of customers 6500 People living in DH houses 200 000
Suomenoja CHP plant• 370 MWe• 565 MWth
Peak and reserve boilers•Tapiola•Otaniemi •Kivenlahti•Vermo•Kaupunginkallio•Juvanmalmi•Auroranportti•Kalajärvi •Masala•Kirkkonummi
Total capacity is 370 MW elec-tricity and over 1000 MW heat
District Heating and CHP Production in Espoo, Finland (Fortum Case)
• Additional power generation from Suomenoja CHP (2009)
• New CCGT-plant (Combined Cycle Gas Turbine) as a base load unit
• Substantial decrease in coal (about 30%) and oil usage
• Efficiency in energy production: 90%
• Decrease in CO2 emissions per produced energy unit: 14%
• Expansion of district heating network
• 2nd longest DH network in Finland: 800 km• Network efficiency: 93%
• Innovation in cooling to utilize the heat pumps and the waste heat from data server centers (2011)
• CO2 reduction by 3% in total
District heating network
Heat pump facility
District cooling network
Server centre
CHP plant
11Finnish Cleantech
CO2 emissions (g CO2/kWh) per produced district heat reduced by 30% between 1980-2010.
Continious monitoring of the network losses
Network losses in Espoo DH Network 2004-2011 (sliding 12 month average)
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280
300
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2004-2010
Ab
solu
te l
oss
es
[GW
h]
2,0 %
4,0 %
6,0 %
8,0 %
10,0 %
12,0 %
Sp
eci
fic
loss
es
[%]
Losses [GWh]
Losses [%]
Linear (Losses [%])
Linear (Losses [GWh])
We are constructing a new bio-fuelled CHP plant at the city of Järvenpää, Finland
new CHP
25 MW electricity and 60 MW heat using forest based fuels and peat to replace natural gas fired heat productionInvestment 80 MEUR
Fortum to build the world's first industrial-scale integrated bio-oil plant to Joensuu in Finland
• Integrated with the CHP plant in Joensuu
• Produces electricity, district heat and 50,000 tonnes of bio-oil per year
• Raw materials include forest residues and other wood based biomass
– Energy wood consumption at the plant almost doubles from existing 300,000 m3 per year
• In end-use, bio-oil reduces CO2 emissions more than 70% compared to fossil fuels
• Construction ongoing, in production in the autumn of 2013
• Total value of the investment about EUR 30 million, the Ministry of Employment and the Economy has granted project EUR 8.1 million in a new technology investment
• Technology development in cooperation between Fortum, Metso, UPM and VTT
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Fortum Pärnu in Estonia – a new biomass based CHP
Biofuel and peat fired CHP plant.
City of Pärnu (43000 popul.) is located in south-west EstoniaFortum is the sole owner of the district heating operations Heat sales abt. 250 GWh/aPreviously based on peat, wood, natural gas and shale oil
A new CHP plant 24 MWe/45 MWh, peat, wood and industrial waste110 GWh electricity, 260 GWh heatMultifuel CFB boiler, 100% fuel flexibility. 14 MW flue gas condenserCO2 reduction abt. 60%
Electricity sales to spot market at market conditions (NordPool)Option to acquire subsidized price based on energy market actfor biofuel and peat based electricity (limited time)
Order of turbine and generator July 2008Start of commercial operation December 2010
District Heat in Stockholm
Heat production 9 TWh
District cooling 0.4 TWh
Electricity 1,6 TWh
Existing WtE CHP Plant
A new WtE CHP Plant under construction
A new bio CHP under planning
Fortum Fuel Mix in Stockholm
Bio fuels33%
Fossil fuels21%
Waste to Energy 28%
Seawater, Free cooling and Waste water 18%
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Waste to Energy CHP Plant in Klaipeda, Lithuania
City of Klaipeda is located in the coast of Baltic Sea in LithuaniaHeat distribution company Klaipedos Energia is a Joint Venture between City of Klaipeda (75%) and Fortum (19.9%)Heat sales abt. 910 GWh/a
Fortum Klaipeda is the production company which will invest in to the new Waste to Energy plant in Klaipeda. Owned by Fortum 90% and Klaipedos Energia 10%
A new WtE CHP plant is to be constructed23 MWe/55 MWh + 10 MW flue gas condenser,170 GWhe/500 GWhh260 000 t of waste (municipal and industrial)Grate boilerStart of commercial operation Q1/2013Investment 123 M€
Strong support of the Lithuanian Government and the City of KlaipedaWaste supplier, the Waste Management Company of Klaipeda and neighbouring MunicipalitiesHeat sold to Klaipedos Energia under TPA and long term competitive contractGate fee agreed for the take of of the waste
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Thank you!