VIBORG DISTRICT HEATING

VIBORG DISTRICT HEATING

VISITNovember 3, 2010

70 °C

40 °C

http://www.1tonmindre.dk/

Program• DENMARK• DANISK ENERGY POLICY • DISTRICT HEATING • DANISH DISTIRICT

HEATING• DIMENSIONS ISSUES• VIBORG DISTRICT

HEATING• ECONOMICAL ISSUES• WHAT ARE WE DOING

RIGHT NOW?

GENERAL INFORMATION ON DENMARK

ENERGY POLICY IN THE FIELD OF ELECTRICITY, HEATING AND NATURAL GAS

• Agreement of 20. March 1990• Conversion of existing stations to combined heat and power supply; • Increased use of natural gas and other environmentally-friendly fuels • Electricity savings.• Biomass Agreement of 14. June 1993

• On the future development of biomass. Biomass was to be used in electricity supply from 2000.

• The biomass agreement also covers expansion of the use of biomass in the heating supply sector.

• It must be possible to use biomass resources in combined heat and power supply• in the natural gas areas • in the decentralised combined heat and power sector if there

is a local desire to do so.

• Reform Follow-up Agreement of 22. March 2000

• Implementation of the EU Gas Directive; • Future development in the heating supply sector; • The further organisation of the biomass agreement; • Balancing the costs for prioritised production between East

and West Denmark; • Initiatives in the energy-savings field; • The green energy market; • In the heating supply field, the agreement means, among

other things, that benchmarking and income limits for district heating producers, right of pre-emption in connection with change of ownership and adjustment of the obligation to connect may be introduced and that help is provided for bare field plants.

• Agreement of 20. February 2002

• The Danish Electricity Supply Act was amended with

regard to inclusion of payment for minimum capacity,

handling of electricity overflow, takeover of non-

performing windmills, electrical safety and emergency

planning.

• The framework conditions of decentralised combined heat

and power plants were improved.

• An opportunity was created for sea windmills to be

installed at Samsø.

ENERGY POLICY IN THE FIELD OF ELECTRICITY, HEATING AND NATURAL GAS

Energy policy agreement, 21 February 2008

• The goal is that total gross energy consumption should fall by

2% in 2011 and 4% up until 2020 compared to 2006,

corresponding to a drop from 863 PJ in 2006 to 846 PJ in 2011.

• A very significant portion of further energy

savings will be obtained by increasing energy

companies' overall energy savings obligation

from about 3 PJ/year today to 5.4 PJ/year from

2010. Preparation for the increased savings is

being discussed with the companies.

ENERGY PRODUCTIONDanish Oil and Gas Fields and Pipelines

http://www.ens.dk/en-US

Gross energy consumption by fuel


ENERGY PRODUCTIONDanish Oil and Gas Fields and Pipelines

Energy consumption


Renewable energy A steadily growing portion of energy consumption in the coming years should come from renewable energy sources. An increase to a 20% share of renewable energy has been agreed for 2011. The Danish EU goal for renewable energy will be binding on Danish energy policy until 2020.

12

Production of Renewable Energy by Type

0

20

40

60

80

100

120

140

1980 '85 '90 '95 '00 '05 '08

PJ

Wind Straw Wood Biogas Waste Heat Pumps

Geothermal energy

WhyDISTRICT HEATING?• A cleaner environment• Reduced costs for the

consumers and the society• A steady and secure supply

CHP Proportion of Electricity and District Heating

Production

0%

20%

40%

60%

80%

100%

1980 '85 '90 '95 '00 '05 '08

District Heating Electricity

Production of District Heating by Type of Producer

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

DANISH DISTRICT HEATING

NUMBER OF CHP AND DH PLANTS IN DENMARK

Public-heat supply (cities): 16 centralized CHP285 decentralized CHP130 decentralized DH plants

Private heat supply (enterprises, institutions):380 CHP100 DH plants

In all:665 CHP230 DH plants


DISTRICT-HEATING SUPPLY: KEY FIGURES

• If all of the DH pipes were laid end to end, they would stretch for 50,000 kilometers

• In the last ten years, 400,000 new consumers were connected to the grid

• 60 % of DH is delivered by the 55-60 largest DH plants (most are owned by local authorities)

• In 2008, the following fuels were used to produce DH:

• 46.2% renewable energy• nonrenewable waste 8.9 %,• biomass 35.4 %• other renewables 2.1 %

• natural gas 27.8%• coal 22.0%• oil 3.8%.

DIMENSIONS ISSUES

CostsMainly we accept relative high establishing-costs in order to achieve the

lowest possible running-costs

Dimension ofpipes

• Outdoor temperature -12 °C• Forward temperature 75 - 120 °C• Return temperature 40 - 50 °C• Minimum pressure drop -

velocity of water 1,5 - 2 m/s

User installations• Outdoor temperature - 12 °C• Forward 70 °C• Return 40 °C• Cooling 30 °C

Connection-methods

• Direct connection• Direct connection with

internal shunt• Connection with heat-

exchanger

Connection-methodsDirect connection

Connection-methodsDirect connection with internal shunt

Connection-methodsConnection with heat-exchanger

Establish: 16. April 1953

as an company own by the consumers

(Interest Company)

VIBORG DISTRICT HEATING?


Technical data: Data: Capacity: 90 MW

Fuel: Heat from CHP - VIBORG

Temperature: 70/45 °C (summer) 80/41 °C (winter)

Heating-stations:

West: FAR IND GYL East: HAM

FRI

MP: 174.001 m

CP: 124.861 m

Total: 298.862 m

Heating Distributions System


Organization:• Type: Union• Purpose: § 2.1 The main purpose of the

Union is to distribute heat in municipal Viborg

Owners:• VDH is owned by the consumers.

• If VDH one should make money, it goes back to the consumers.

Viborg Fjernvarme 32

• CHP

• 7.887 installations

• 1.922.000 m²

• Purchase in 2009:264.064 MWh

• Sold in 2009:201.562 MWh



ORGANIZATION


General meeting1 time/year

Board of Directors4 owners3 tenants

Managing directorHJN

AdministrationHJN

Customers Servi

ce Dept.

Assistant 1BB

Assistant 2LJ

Energy

Meters

Dept.

Service

Technician

NL

Service

Technician

KB

Energy

Saving

Dept

Enginee

rEnergy SavingTD

Enginee

rEnergy SavingPH

EconomyJHJ

Production / Distribution

FH

Cleaning Dep

t

Service AssistantCN

Drawing Offic

e

Assistant

SecretaryAMH

Technical AssistantLH

Operatin

g Dept

.

Engineer

JB

Operating

assistantMP

Store manBK


ORGANIZATION





AdministrationHJN

Customers Servi

ce Dept.

Assistant 1BB

Assistant 2LJ

Energy

Meters

Dept.

Service

Technician

NL

Service TechnicianJMP

Energy

Saving

Dept

Enginee

rEnergy SavingTD

Enginee

rEnergy SavingPH

EconomyJHJ

Production / Distribution

KB

Cleaning Dep

t

Service AssistantCN

Drawing Offic

e

Assistant

SecretaryAMH

Operatin

g Dept

.

Engineer

JB

Operating

assistantMP

Store manBK


ORGANIZATION





Administratio

nHJN

EconomyJHJ

Energy savingPH/TD

Production /

Distribution

JB/KB


ORGANIZATION


AdministrationHJN

Customers Service Dept.

Assistant 1

BB

Assistant 2LJ

Energy Meters Dept.

Service Technician

NL

Service Technician

JMP

Energy Saving Dept.

EngineerEnergy Saving

TD

EngineerEnergy Saving

PH

Economy

CFOJHJ


ORGANIZATION


CEOHJN

Production / DistributionJB/KB

Cleaning Dept

Service AssistantCN

Drawing Office

Assistant SecretaryAMH

Operating Dept.

EngineerJB

Operating assistantMP

Store manBK


TARIF MODEL

Tariff model• Transparent an

understandable• Easy to administer• Costs covered by income from

those parts off tariff, to which they naturally belong

• Each consumer must pay his share of the costs



ECONOMICAL ISSUES

Fixed Expenses

Variable Expenses

Rent for Energy Meter


VIBORG DISTRICT HEATINGECONOMICAL ISSUES

Fixed Expenses

•Maintenance of Distributions System•Cars•Insurance•Telephone•Technical assistance•Interest•Write off•Appropriation for future investments•Wages•Pensions

Shared between the customers by the space in there houses

DK Kr./m²



•Purchase of heat from CHP-Viborg•Loss in pipes and energy meters•Electricity•Supplementary water•Chemicals for water treatment

Shared between the customers by the consumption of heat

DK Kr./kWh

Variable Expenses



•Maintenance of Energy Meter•Customers service•Making the Year account

Shared between the customers by the size of there energy meter

DK Kr.

Rent for Energy Meter

Tariff 2009Yearly charge:Capacity cont. (Housing area) DKr. per m2 14,00Consumption charge DKr. per kWh 0,374 Subscription (meterrent):1,5 m³ Multicall DKr. 532,00 2,5/3 m³ Multicall DKr. 538,00 5/6 m³ Multicall DKr. 1.092,00 10 m³ Multicall DKr. 1.312,00 15 m³ Multicall DKr. 1.507,00 25/30 m³ Multicall DKr. 1.689,0040/50 m³ Multicall DKr. 1.689,00 Connection charge: DKr. 8.000,00 Develop charge:For each 1.000 m2 DKr. 14.000,00 Various works:Meter control DKr. 725,00 Change of owner/tenant:Reading of the meter (Viborg Fjernvarme) DKr. 250,00Owner/tenant reads the meter DKr. 130,00 Reminder and interest fee:Interest for overdue payments is fixed at an annualinterest, correspondent to the at any time fixed market rate, with a extra charge of 6%. 1. reminder for an overdue payment DKr. 100,00Visit from Viborg Fjernvarme regarding overdue payment DKr. 260,00Closing and reopening after overdue payment DKr. 820,00 All prices are exclusive VAT.



Key figures

04/0507/08

(18 mdr.) 2009

Units Index Units

(****)

Index Units Index

Financial key figures

Turnover total(1.000 kr.) 112.481 100 200.850 -128.07

8 114

Purchase of heat ( 1.000 kr.) 87.902 100 164.534 -110.91

1 126 Profit before financing (1.000 kr.) 3.329 100 2.649 80 -1.884 -57 Depreciation (1.000 kr.) 8.208 100 10.547 - 6.597 80 Result of the year (1.000 kr.) 3.643 100 4.514 124 -1.468 -40 Investments (1.000 kr.) 5.844 100 11.428 - 8.821 151 Balance (1.000 kr.) 59.295 100 71.955 121 61.035 103 Equity capital (1.000 kr.) 38.296 100 27.439 72 25.972 68 Long-termt debt (1.000 kr.) 2.427 100 0 0 0 0 Long-termt debt per. consumer (kr.) 351 100 0 0 0 0 Number of employees 12,5 100 14,0 112 13,3 107 Bemærkninger:

All cost is without vat(*) Index for graddage er for alle årene udtrykt i forhold til normalåret på 3.112 graddage = index 100.(**) Omfatter tab i ledningsnet og målerafvigelser. Energi medgået til opvarmning af spædevand indgår ikke.(***) Inkluderer diverse længdejusteringer som følge af overgang til ny systemopmåling på ledningsnettet.(****) Adskillige index-tal for 07/08 er pga. af forlænget/ændret regnskabsårsperiode usammenlignelige med tidligere år og derfor udeladt.



Key figures

04/0507/08

(18 mdr.) 2009

Units Index Units(****)Index Units Index

Consumer related dataDegree days (normal year 3.112) (*) 2.909 93 3.721 - 2.857 92 Connected consumers/ meter accounts 6.911 100 7.764 112 7.887 114 Consumer density I (per kilometer) 25,2 100 26,4 105 26,4 105 Consumer density II (m main pipes per consumer) 23,0 100 22,2 96 22,1 96 Consumer density III (m connection pipe per consumer) 16,6 100 15,7 95 15,8 96 Consumer density IV (m pipes total per consumer) 39,6 100 37,9 96 37,9 96 Residens and business area (1.000 m2) 1.681 100 1.865 111 1.922 114 Avarage area per consumer (m2) 243 100 240 99 244 100 Rate of contribution (kr/m2) 13,50 100 15,00 111 14,00 104 Meter rent (kr./1,5 m3-villamåler) 481 100 481 100 532 111 Cost of heat (øre/kWh) 43,90 100 55,90 127 48,95 112 Avarage purchase of heat (øre/kWh) 34,91 100 44,59 128 42,00 120 Bemærkninger:All cost is without vat(*) Index for graddage er for alle årene udtrykt i forhold til normalåret på 3.112 graddage = index 100.(**) Omfatter tab i ledningsnet og målerafvigelser. Energi medgået til opvarmning af spædevand indgår ikke.(***) Inkluderer diverse længdejusteringer som følge af overgang til ny systemopmåling på ledningsnettet.(****) Adskillige index-tal for 07/08 er pga. af forlænget/ændret regnskabsårsperiode usammenlignelige med tidligere år og derfor udeladt.



Key figures

04/0507/08

(18 mdr.) 2009


Technical data operationSales of heat (MWh) 190.690 100 278.757 - 201.562 106 Purchase of heat (MWh) 251.774 100 369.000 - 264.064 105 Energy for make up water (MWh) 506 100 887 - 223 44 Total loss in distribution net (MWh) (**) 60.578 100 89.356 - 62.280 103 Sales of heat per consumer (MWh) 27,6 100 35,9 - 25,6 93 Sales of heat per degree day (MWh/degree day) 65,6 100 74,9 - 70,6 108 Purchase of heat per degree day (MWh/degree day) 86,6 100 99,2 - 92,4 107 Efficiency (MWh-sales in % of MWh- purchase) 75,7 100 75,5 - 76,3 101 Loss in distribution per consumer (MWh) 8,8 100 11,5 - 7,9 90 Loss in distribution per km pipe net (MWh) 221 100 - - 208 94 Power consumption total (MWh) 1.277 100 1.755 - 1.211 95

Amount of circulated water in the network (1.000 m3) 7.516 100 10.414 - 7.543 100

Amount Circ. water in relation Power cons.(m3/kWh) 6,2 100 6,3 - 6,6 106 Purchace of makeup water (m3) 12.044 100 19.051 - 6.731 56 Own makeup water production (m3) 6.848 100 12.147 - 4.092 60 External makeup water (m3) 496 100 1.718 - 1.709 345 Total makeup water consumption (m3) 7.344 100 13.865 - 5.801 79 Avarage supply temp. winter oC 75 100 72 97 72 96 Avarage supply temp. summer oC 69 100 69 99 67 97 Avarage return temp. winter oC 43 100 40 94 40 94 Avarage return temp. summer oC 46 100 43 94 42 92 Bemærkninger:All cost is without vat(*) Index for graddage er for alle årene udtrykt i forhold til normalåret på 3.112 graddage = index 100.(**) Omfatter tab i ledningsnet og målerafvigelser. Energi medgået til opvarmning af spædevand indgår ikke.(***) Inkluderer diverse længdejusteringer som følge af overgang til ny systemopmåling på ledningsnettet.(****) Adskillige index-tal for 07/08 er pga. af forlænget/ændret regnskabsårsperiode usammenlignelige med tidligere år og derfor udeladt.



Key figures

04/0507/08

(18 mdr.) 2009


Technical data pipe networkRepair of broken pipes (no.) 10 100 22 - 17 170 Renovation of distribution net ( m dobb.) 1.628 100 1.057 - 1.175 72 Renovation of connection pipes (m dobb.) 0 100 138 - 1.433 -Renovation pipes total (m dobb.) 1.628 100 1.195 - 2.608 160 New established distribution pipes (m dobb.) 3.535 100 6.521 - 2.287 65 New established connection pipes (m dobb.) 3.780 100 6.395 - 2.506 66 Total new established pipes ( m dobb.) 7.315 100 12.916 - 4.793 66 Total distribution net (m dobb.) 159.261 100 172.220 108 174.001 109 Total connection net (m dobb.) 114.506 100 121.664 106 124.861 109 Total net (m dobb.) (***) 273.767 100 293.884 107 298.862 109 Bemærkninger:All cost is without vat(*) Index for graddage er for alle årene udtrykt i forhold til normalåret på 3.112 graddage = index 100.(**) Omfatter tab i ledningsnet og målerafvigelser. Energi medgået til opvarmning af spædevand indgår ikke.(***) Inkluderer diverse længdejusteringer som følge af overgang til ny systemopmåling på ledningsnettet.(****) Adskillige index-tal for 07/08 er pga. af forlænget/ændret regnskabsårsperiode usammenlignelige med tidligere år og derfor udeladt.

VIBORG DISTRICT HEATING Technical Issues

Temperature

2002 2003 2004 2005 2006 2007 2008 2009 201064

66

68

70

72

74

76

78

80Temperature AHEAD

2002 2003 2004 2005 2006 2007 2008 2009 201035

37

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41

43

45

47

49

51Temperature RETURN

40 45 50 55 60 65 70 75 80 8510

20

30

40

50

60

70

80 Tretur som funktion af Tfrem i 2009

Tretur

Fremløbstemperatur °C

Ret

urlø

bste

mpe

ratu

r °C

VIBORG DISTRICT HEATING Technical Issues

Temperature

10

20

30

40

50

60

70

80

40 45 50 55 60 65 70 75 80 85

Ret

urte

mpe

ratu

r °C

Fremtemperatur °C

Tretur som funtion af Tfrem i 2002

Tretur

WHAT ARE WE DOING RIGHT NOW?• Energy Saving• Natural Gas to District Heating• Geothermal Energy• Renewable Energy

Energy Saving2009

7.491 GJ/2.081 MWh

≈ 73,5 average consumer(28,3 MWh)

≈ 148,6 households(14 MWh)

Energy Saving2010

13.013 GJ/3.615 MWh

≈ 127,7 average consumer(28,3 MWh)

≈ 258,2 households(14 MWh)

Natural Gas to District Heating

Natural Gas to District Heating

CONVERSION OF NATURAL GAS FIELDSThere are made calculations on all natural gas fields in Viborg Municipality regarding conversion to district heating Included in the heat need for natural areas are also consumers of oil as heating terms.

Priority 1 is the maximum reference price is above 300 DKK / MWh, priority 2 is between 200 to 300 DKK / MWh, while the priority 3 is below 200 DKK / MWh. If all of the estimated natural gas fields will be converted to district

CONVERSION OF NATURAL GAS FIELDS

Geothermal Energy

What is viewing?• Geothermal heat, why?

Viborg Geothermal Project was started by Viborg District in order– to increase supply and– generate a CO2 mitigation in the future distribution

of heat.

The geothermal potential Kvols expected to lie in the range 16-32 MW thermal exclusive heat pumps.

Similarly, oil exploration well in Kvols is a similar drilling by Klejtrup (Hobro 1), giving a additional opportunities for geothermal heat.

Renewable EnergyEnergy Policy in Denmark

Renewable EnergyViborg DH’s Energy Policy

Saving fossil fuels and thus CO2 emissions in a cost effective manner.

Achieving national goals for Denmark with respect to saving CO2 outside the quota regulated market.

Increase supply security. Respect for the environment. Meet heating legislative objectives. Paving the way for the desire for an

energy-based 100% on renewable energy. Reduce consumers' total expenditure to

meet the thermal comfort.

Renewable EnergyViborg DH’s to day

Renewable EnergyViborg DH’s 100 % renewable energy

VIBORG DISTRICT HEATING

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