District heating by arto nuorkivi bratislava 120808
SMART DISTRICT HEATING FROM FINLANDDR. ARTO NUORKIVI, SOLVED EXPERTBRATISLAVA 8.8.2012 The Coldest Country in Europe The Best Country of District Heating
Drivers of DH/CHP in the EU:• Prevention of energy import to EU to grow from the current 50% to 70% by year 2020; and,• Reduction of energy related emissions to fight Climate Change.Development per country in three categories:1. New member countries: Rehabilitation of extensive and old DH systems (PL, HU, RO, EST, LV, LT, CZ, SK, …)2. Older member countries and Norway: Fast development of DH ( DE, NO, IT, FR,..)3. Nordic countries and Austria: Increased fuel flexibility of already modern and extensive modern DH systems (FI, SE, DK, AU)
Finnish DHC: The Benchmark worldwide! Finnish DHC in 2010 The International Energy Agency (IEAHeat sales (incl. taxes) 1,970 mill € 2009) has stated that Finland is theSold heat energy 35.8 TWh model for the world in CHP and DHCAverage price of DH 55.1 €/MWh with high efficiency and environmental(incl. taxes and domestic hotwater ) performance.Inhabitants in DH apartments 2.6 millMarket share of district heat 49%Sold district cooling energy 110 GWh Finnish DHC business and expertise is provided by: • Investments made based on the long-term least cost solution • Several world-class energy consulting companies • Full range of equipment manufacturers both for energy production and distribution • Several universities, research institutes and energy companies who invest in R&D activities for CHP and DHC. Source: Finnish Energy Industries, 2011
BRIEF COMPARISON: SLOVAKIA – FINLANDSlovakia Finland6 state owned companies and 90+ 95% municipally owned companiesothers Tariff is set by the company itselfTariff is regulated No secondary networks at allSecondary networks are common Building owner is the customerApartment owner is the customer Usually CHP and DH in the sameUsually CHP and DH in different companycompanies
DH COMPANIES IN FINLAND Around 150 independent DH companies, – Each has its own strategy, tariffs, contracts, prices, customers, etc. Typically owned by municipalities, 95 % of companies, 87 % of sales – Not because of legal provisions, but for natural reasons – 5-10 years ago forecast major swift towards privatization didn’t materialize Around 40 DH companies generate electricity (CHP) as well One third of DH is produced by another company than the one, which distributes it The branch has a strong tradition of voluntary cooperation between companies in Finnish Energy Industries (FEI) association.Source: Finnish Energy Industries,
WOULD YOU LIKE TO HAVE THE WORLD BEST DHC SYSTEM? • Minimal heat loss • Three quarters of • Minimal need for heat is produced by water replenishment CHP • Maximal reliability • High generation efficiency Efficient Efficient network production Environmental Financial sustainability sustainability • High usage of RES in heat production • Low heat tariffs • Low emissions • High profits • High share of CHP • No subsidies
COMPREHENSIVE CHP AND OPEN ENERGYMARKETS LED TO LOWEST PRICES OF HEAT! “In year 2010 the fuel savings of about 25 TWh were equal to 3,7 million metric tonnes of hard coal. Such savings resulted in 700 kg of coal and 1600 kg of CO2 equivalent saved per inhabitant in 2010.“ TWh/a908070 Fuel consumption without CHP Savings60 due50 to CHP4030 Actual fuel20 consumption10 0 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009Source: Finnish Energy Industries, 7
WOULD YOU LIKE TO HAVE A DHC SYSTEM WITH EXCELLENT KEYPERFORMANCE INDICATORS? Finland Key Performance Indicators (200 companies on Transition Economies average) Network heat losses of production 6-9% 15-40% Make-up water replenishment need per year 1 10-50 Reliability 99,98% 99% or lower CHP share of DH production 76% 30-60% DH generation efficiency 93% 60-90% RES share of DH production 38% 0-10% Staff productivity (GWh / employee) 20 1-4 Profitability % of turnover 10-20% Low or negative
HIGHLY EFFICIENT AND RELIABLEFINNISH DHC NETWORKS • DH is available for customers 99,98% of the time (breaks are less than 2 hours per year, including planned breaks) • Frequency of network damages is 0,1 damages/km, compared to 1-2 damage/km in transition economies • Due to preventive maintenance practices, damages are minimized and if occur, repaired immediately • The efficiency of the DH networks is on average over 91%, in some cities reaching even 94% • Network water replenishment rate is only once a year compared with 10-50 times in transition economies; • Finnish DH pipelines are designed to last minimum 50 years and expected to operate 100 years or even longer. Finnish DH systems are characterized by reliability and ease of use. Heat supply breaks are rare and the DH network requires minimal maintenance.
COMPREHENSIVE CHP AND OPEN ENERGY MARKETS LED TO LOWEST PRICES OF HEAT! “ Finnish DH tariffs are the lowest in Western Europe and 30 lowest in the world compared to the purchasing power.“ 25 20 15 DH prices EUR/GJ 10 (2009) 5 At he same time, the 0 Finnish DH companies Denmark Finland Germany Sweden are highly profitable.Source: Euroheat&Power: Country by Country / 2011 Survey
LEADING EXPERTISE IN USAGE OF RES Other• Finnish companies have decades of experience and 100 % 90 % Biomass strong position in exporting bio energy technology Domestic 80 %• 36% of DH production is based on biomass and Peat 70 % domestic peat 60 % Wood, biomass and domestic peat• 31% of electricity production is based on RES. 50 % Natural gas• DH in Finland has its roots in the CHP of the wood 40 % provide 36% of sources of heat processing industry 30 % production Coal• The increase of biomass use is even higher in CHP than 20 % Oil in separate heat production 10 %• The national target is to have DH and CHP free from 0% 2002 2010 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2004 2006 2008 fossil fuels by 2050 Other Oil 3% 5% Biomass “ The price of district heating has 18% Coal 22% increased moderately compared to rising prices of oil and gas, because alternative fuels - such as coal, Domestic Peat 18% domestic peat, waste wood, municipal and industrial waste - have been used instead.“ Source: Finnish Energy Industries Natural gas 35% 13
FINLAND: AMONG THE LEADING COUNTRIES ON DISTRICT COOLING IN EUROPE • In Helsinki, despite of the cold climate, a high demand for cooling prevails. • In 2008, Helsinki had the third largest and most rapidly growing cooling system in Europe. (90 MW). • The growth is based on customers’ own willingness to connect district cooling in the free market. • Sea water, conventional heat pumps and absorption chillers, covering 1/3 each, are used as sources for cooling. • More than 80 % of the district cooling production is based on resources that otherwise would be wasted. • The share of renewable sources amounts to 60%.Sale GWh Connected load MW120 160 140 District Cooling Key Figures in Finland, 2010100 120 • Total DC sales: 110 GWh 80 100 • DC trench length for transport and distribution network 60 80 (one way): 66 km 60 • Available DC storage: 38.6 MW 40 40 • Cities offering DC: Helsinki, Turku, Heinola, Lahti 20 20 • Tampere is planning to offer DC 0 0 • DC is competitive in densely built areas where high demand 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 for cooling exists. Delivered energy Connected load Source: Finnish Energy Industries Integration of district heating and cooling provides synergy in CHP operation and in overall energy efficiency.
CASE:In the city of Helsinki, DHC and electricity are produced in CHP processes on a large scale. Theemissions have decreased and the air quality in Helsinki has improved considerably since1990s – despite the fact that energy production has increased by more than 60%!• District heating comprises 1250 km of networks and about 10,000 customers (buildings)• DH covers 93% of the total heating energy demand in Helsinki• More than 90% of DH energy is produced by CHP• The energy efficiency of CHP exceeds 90%, which is one of highest in the world• Despite of low prices of DH, Helsinki Energy is highly profitable.• Helsinki is the third biggest and fastest growing district cooling operation in Europe. Awards: The EU has ranked DHC and CHP in Helsinki as Best Available Technology in 2008. International Energy Agency IEA has awarded Helsinki for superior solutions for climate change mitigation in 2009. Euroheat&Power and IEA has awarded Helsinki the Best District Cooling System in 2011. Source: www.helen.fi 15
CASE: CHP AND TRIGENERATION Salmisaari CHP plant 160 MW electric and 400 MW DH with coal fuel Coal storage in the rock cavern underground – not visible Includes a large absorption heat pump for district cooling (photo:Juhani Eskelinen) Source: www.helen.fi
MORE INFORMATION IN ENGLISH: SOLVED: WWW.SOLVED.FI FINNISH ENERGY INDUSTRIES: WWW.ENERGIA.FI