INTERREG IIIC - REGENERGY Gefördert durch die Europäische Union Promoted by the European Union...

INTERREG IIIC - REGENERGY

Gefördert durch die Europäische UnionPromoted by the European Union

European District Heating and District Cooling Market

Berlin/Leipzig, 10 May 2006

Thorsten Körner

Stadtwerke Leipzig GmbH



I. European Union

1. Position of the district heating sector in the EU2. District heat production and CHP3. Fuel used in the EU district heating sector4. District cold production in the EU5. Ownership

II. Comparison Germany/Poland/Latvia/Greece/Russia

6. National energy strategies/laws/policies7. Regulation at municipal level8. Price regulation9. Organisational and social problems



EU- District Heating Market

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5

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25

m i

nh

ab

itan

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1. Position of the District Heating Sector in the EU

The new EU members strengthened the position of the DH sector More than 60 m people (EU-8: over 20 m) use DH Poland is the leader in the European district heating as to number of users



EU-District Heating Market

0%10%20%30%40%50%60%70%80%

1. Position of the District Heating Sector in the EU

The new member states (EU-8) strengthened the position of the DH sector More than 60 m people (EU-8: over 20 m) use DH



I. European Union






2. District Heat Production and CHP

CHP is the most important key to improve energy use efficiency, to decrease theenvironmental pollution and CO2-Emissions and to reduce fuel imports.

In EU-8 countries the CHP use is lower than in the old countries.

CHP share in DH production

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20000

40000

60000

80000

100000

120000

GW

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0%

20%

40%

60%

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100%

120%



I. European Union






Fuel used in the "East European DH

sector "

60%7%

26%

7%coal

oi l

Natur al Gas

other s

Fuel used in the "West European DH

sector"

24%

9%

30%

27% coal

oil

Natural Gas

others

The fuel mix for heat production in the EU remains less diversified than in the EU-8 states. There is a large dependency on gas for heat production in the Baltic States (Lithuania 82%,

Latvia 69%, Estonia 45%), Hungary (75%), Luxemburg (98%) and Netherlands (92 %). Coal is the main fuel for DH in Poland (84%), Slovakia (73%) and Germany (56%). EU-8 have a great technical potential for an increased use of renewable energy from

industrial waste heat and waste.

3. Fuel used in the EU District Heating Sector



I. European Union






District Cooling capacity (2003)

0100200300400500600700

MW

4. District Cold Production in the EU

District cold is an efficient tool for providing comfortable indoor cooling in the summer time.

District cold production expands in Sweden, Norway, Italy and Spain, in the EU-8 thedistrict cooling does practically not exist.



I. European Union






In Austria, Finland, Hungary, Latvia and Poland district heating utilities are mainly owned by municipal authorities.

Austria and Germany have municipal multi-utilities (for gas,

district heating, electricity and water supply).

The changes in the energy market (caused by EUdirectives) brought some new trends in the district heatingsector (f.e. privatisations, vertically integration, public private partnership).

5. Ownership



I. European Union






6. National Energy Strategies/Laws/Policies

National Energy

Strategy

Energy Law

CHP Law

Heat Law

Energy Efficiency

LawSupport CHP

Poland 01/2005 Yes No No Nopurchasing obligation

"only"

Latvia 09/1997 Yes No Yes Yespurchasing obligation

and tax supportRegion

Kaliningrad,Russia

2001 Yes No Seg. Leg Seg. Leg No

Greeceeffective

2004Yes No No No No

GermanyNo, but

Seg. Leg.Yes Yes No Seg. Leg

Bonus for CHP electr. by 2010



I. European Union






7. Regulations on municipal levels

Poland

Latvia

Germany

Greece

Organisation of the heat supply within the municipalities Creation of preconditions for a rational use of local energy 17 municipal district heating price regulators

Implementation of own energy plans Ownership of the district heating networks

Regional operational programmes

Energy is a part of the local planning (energy concepts) Local authorities are responsible for local electricity, gas, district heating and water supply



I. European Union






DH Prices / Tariffs (2003)

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30

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60

Austri

a

Denm

ark

Finlan

d

Germ

any

Nethe

rland

s

Sweden

Estonia

Latvi

a

Lithu

ania

Poland

Slovak

ia

Hunga

ry

Czech

Rep

.

€/M

Wh

8. Price Regulation



I. European Union






0

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ry

Lithu

ania

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ia

Poland

Slovak

ia

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€

Monthly gross salary

Yearly costs for DH

9. Organisational and Social Problems




Generally Situation has changed dramatically after the transformation.

Poland 50 % of primary energy is being utilized for heat production. The purchase power indicator in Poland is 40 % higher than

in EU. The ownership and organisational transformation in

the district heating sector proceeds slow and has not beenfinished yet.

Germany The social acceptance of DH is high. Unbundling process has an influence on the DH sector.




Region Kaliningrad Discrepancy between actual investment needs and financial

possibilities. Decrease in reliability. Lack of long term investments resources.

Latvia High non-payment level (70-90%). DH tariffs are used as a political instrument (e. g. beforeelections). Obstacles for the development of co-generation.



Summary 1

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The position of DH sector in the EU strengthened

EU brought bout changes in the national heat policies

In some of the EU-8 countries huge dependence on Gas from Russia is existent

Poland is the „EU-Leader“

Co-generation and new technologies are the keys for improving efficiency

Municipals ownership dominates the DH market in the EU

DH tariffs make investments in improving of efficiency difficult

INTERREG IIIC - REGENERGY Gefördert durch die Europäische Union Promoted by the European Union...

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