Highlights of 50 years history of
the Finnish District heating
Finnish-Russian Energy Days 2-4.12.2014
Veli-Pekka Sirola
Finnish Energy Industries (FEI)
2.12.2014
2.12.2014
Veli-Pekka Sirola
2.12.2014
Veli-Pekka Sirola
District heating in Finland, year 2013
Heat sales (incl. taxes) 2,3 mrd €
Sold heat energy 32 TWh
Average price of DH (incl. taxes) 73 €/MWh
Market share of district heat 46 %
In bigger cities ~ 90 %
In new public, commercial and block buildings 75...95 %
District cooling rapidly growing
2.12.2014
1.
Branch cooperation – strong
branch association
Veli-Pekka Sirola
2.12.2014
Veli-Pekka Sirola
Uniform branch, strong association
• Member companies of the branch association Finnish Energy
Industries (FEI) cover ~ 98 % of the DH sales in Finland
• Strong tradition of voluntary cooperation between companies
within the association, sharing experiences and best practices
branch codes of practice, guidelines, reports, statistics,
education/training, events and seminars, research funding
far reaching “standardisation”, e.g. customer substations,
network structures, pipe insulation thicknesses, operation
parameters, maintenance procedures etc.
uniform construction and operation practice
leading to cost efficiency, good quality,
avoiding regulation…
FEI recommendations, codes of practice
common minimum requirements, quality level and procedures
-customer relations and services
-consepts, design and planning
- materials, products, components and services
-procurement, construction and installation
-maintenance, renovation and operation
- quality assurance and management
FEI recommendations - idea
branch know-how – cooperation – FEI working groups
2.12.2014
Veli-Pekka Sirola
2.12.2014
Annual DH statistics in Finland
General statistics, company-specific information
- District heating statistics / yearbook
- Price statistics (published twice a year)
cover close to 100 % of our member companies
Technical (distribution) statistics, average information
- Network construction costs
- Operational key figures
- Network failure statistics
- Supply interruptions (DH availability) statistics
cover about half of our member companies, representing 60...85 %
of total DH sales in Finland
Veli-Pekka Sirola
2.12.2014
2.
Extensive combined heat and
power production
Veli-Pekka Sirola
2.12.2014
Veli-Pekka Sirola
District heat production
72 % 72 % 72 % 74 % 76 %
77 % 79 % 77 % 75 % 76 %
77 % 75 % 75 % 76 % 73 %
75 % 74 % 75 %
71 %
71 %
73 % 69 % 73 %
0
5
10
15
20
25
30
35
40
1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013
TWh/a
cogenerated heat
2.12.2014
Veli-Pekka Sirola
Energy savings due to CHP
Actual fuel
consumption
0
10
20
30
40
50
60
70
80
90
100
1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010
TWh/a
Fuel consumption
without CHP
savings due
to CHP
2.12.2014
3.
Large scale fuel
flexibility
Veli-Pekka Sirola
2.12.2014
Veli-Pekka Sirola
Fuels for district heat and cogeneration
0%
20%
40%
60%
80%
100%
1976 1980 1984 1988 1992 1996 2000 2004 2008 2012
oil
coal
natural gas
peat
other
bio
2.12.2014
Veli-Pekka Sirola
Renewable energy sources in DH
production and CHP
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012
GWh
2.12.2014
4.
Profitable/competitive,
also in small localities
Veli-Pekka Sirola
2.12.2014
District heating on a free heating market
• No price or other specific regulation / law for DH
• Each company decides its tariffs and prices itself and
operates in free competition with other heating forms in
heating markets
A strong incentive for DH companies to develop
their business, services and operations
Veli-Pekka Sirola
2.12.2014
Outcomes of the free competition
• Lowest district heating prices in western Europe and lowest
in the EU compared to purchasing power
• Most reliable DH system – availability 99.98 %
• Average network heat losses 9 % - lowest in Europe
• Low average need of make-up water; 1...1,5 times the
network volume per year
• Highest overall efficiency of CHP-plants (~ 85 %)
• DH competitive and profitable also in smaller localities
Veli-Pekka Sirola
2.12.2014
Veli-Pekka Sirola
Market share of space heating year 2012
Heat pump: includes the electricity
consumption of heat pumps
Electricity: includes the electricity
consumption of heat distribution
equipment and electric sauna stoves
Wood: includes the wood used by
sauna stoves
district heat
46,0 %
electricity
18,6 %
heat pump
11,6 %
light fuel oil
8,2 %
wood
13,1 %
heavy fuel oil
1,4 %
other
1,1 %
Source: Statistics Finland
2.12.2014
Number of customers and network length
0
2000
4000
6000
8000
10000
12000
14000
16000
0
20000
40000
60000
80000
100000
120000
140000
160000
1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010
kmpc.
Number of customers pc. Total length of networks km
Veli-Pekka Sirola
2.12.2014
5.
Reliable and highly efficient
networks / heat distribution
Veli-Pekka Sirola
Finnish DH distribution system
• Hot water DH, closed two pipe system
• Design temperature 120 °C
• Design pressure 1,6 MPa (16 bar)
• Varying flow temperature 115… ~ 70 °C
• Return temperature ~ 40 … 65 °C
• Always indirect consumer connections (both space heating
and hot tap water)
• Heat meters at every customer, now mainly remotely read
• Year-round heat delivery
• Expected lifetime of DH pipes 50…70...100… years
2.12.2014
Veli-Pekka Sirola
2.12.2014
Veli-Pekka Sirola
Uniform laying practice
• Use of preinsulated pipes (~ 40 years)
• Extensive use of twin pipes in smaller dimensions
• Reliable preheated laying and joint constructions
• Quality chain from design to maintenance, certification
• Avoiding chambers, draining and venting valves as far as
possible
• Branches made usually by drilling-in to pipelines in operation
2.12.2014
Veli-Pekka Sirola
Use of twin pipe system in smaller
dimensions up to DN 100, even DN 200
Investment
•material savings
•much less fittings and joints
•simpler, faster installation
•saving potential : 10...40 %
Operation
•clearly smaller heat losses: 10...50 %
•30 years of good experience
failure rate only 2...5 failures / 100 km, year
cost efficient (both investment and operation)
2.12.2014
Supply interruptions / DH availability
2007 – 2013 ( availability 2013 = 99,98 %)
Veli-Pekka Sirola
2.12.2014
Failure rate by DH pipe type 1993-2013
Veli-Pekka Sirola
2.12.2014
6.
Smart heat
metering
Veli-Pekka Sirola
Introduction of smart heat
meters in Finland
• Every DH company is responsible for metering
• Heat meters are now mainly (85...90 % of all)
remotely read smart meters – hourly or monthly metering data
• No requirements for smart heat metering in legistlation – the
implementation has been market oriented
• Automated system cheaper than manual in the long run
• Enables new services and new operation models, e.g.
– faster revealing of tampering or defect meters
– tools to identify faults or inefficiencies in building heating system
– new tariff models
– accurate defination of the need of the heat capacity of the building
– meter data made available for the customers as a web service
– significant acceleration in billing
– improved management and optimization of network operation
2.12.2014
There are 140 000
district heat
customers, each of
them has a heat
meter
There are 140 000
district heat
customers, each of
them has a heat
meter
Veli-Pekka Sirola
Thank you!

Highlights of 50 years history of the Finnish District heating - ENG Veli-Pekka Sirola

  • 1.
    Highlights of 50years history of the Finnish District heating Finnish-Russian Energy Days 2-4.12.2014 Veli-Pekka Sirola Finnish Energy Industries (FEI) 2.12.2014 2.12.2014 Veli-Pekka Sirola
  • 2.
    2.12.2014 Veli-Pekka Sirola District heatingin Finland, year 2013 Heat sales (incl. taxes) 2,3 mrd € Sold heat energy 32 TWh Average price of DH (incl. taxes) 73 €/MWh Market share of district heat 46 % In bigger cities ~ 90 % In new public, commercial and block buildings 75...95 % District cooling rapidly growing
  • 3.
    2.12.2014 1. Branch cooperation –strong branch association Veli-Pekka Sirola
  • 4.
    2.12.2014 Veli-Pekka Sirola Uniform branch,strong association • Member companies of the branch association Finnish Energy Industries (FEI) cover ~ 98 % of the DH sales in Finland • Strong tradition of voluntary cooperation between companies within the association, sharing experiences and best practices branch codes of practice, guidelines, reports, statistics, education/training, events and seminars, research funding far reaching “standardisation”, e.g. customer substations, network structures, pipe insulation thicknesses, operation parameters, maintenance procedures etc. uniform construction and operation practice leading to cost efficiency, good quality, avoiding regulation…
  • 5.
    FEI recommendations, codesof practice common minimum requirements, quality level and procedures -customer relations and services -consepts, design and planning - materials, products, components and services -procurement, construction and installation -maintenance, renovation and operation - quality assurance and management FEI recommendations - idea branch know-how – cooperation – FEI working groups 2.12.2014 Veli-Pekka Sirola
  • 6.
    2.12.2014 Annual DH statisticsin Finland General statistics, company-specific information - District heating statistics / yearbook - Price statistics (published twice a year) cover close to 100 % of our member companies Technical (distribution) statistics, average information - Network construction costs - Operational key figures - Network failure statistics - Supply interruptions (DH availability) statistics cover about half of our member companies, representing 60...85 % of total DH sales in Finland Veli-Pekka Sirola
  • 7.
    2.12.2014 2. Extensive combined heatand power production Veli-Pekka Sirola
  • 8.
    2.12.2014 Veli-Pekka Sirola District heatproduction 72 % 72 % 72 % 74 % 76 % 77 % 79 % 77 % 75 % 76 % 77 % 75 % 75 % 76 % 73 % 75 % 74 % 75 % 71 % 71 % 73 % 69 % 73 % 0 5 10 15 20 25 30 35 40 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 TWh/a cogenerated heat
  • 9.
    2.12.2014 Veli-Pekka Sirola Energy savingsdue to CHP Actual fuel consumption 0 10 20 30 40 50 60 70 80 90 100 1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010 TWh/a Fuel consumption without CHP savings due to CHP
  • 10.
  • 11.
    2.12.2014 Veli-Pekka Sirola Fuels fordistrict heat and cogeneration 0% 20% 40% 60% 80% 100% 1976 1980 1984 1988 1992 1996 2000 2004 2008 2012 oil coal natural gas peat other bio
  • 12.
    2.12.2014 Veli-Pekka Sirola Renewable energysources in DH production and CHP 0 2000 4000 6000 8000 10000 12000 14000 16000 18000 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 GWh
  • 13.
  • 14.
    2.12.2014 District heating ona free heating market • No price or other specific regulation / law for DH • Each company decides its tariffs and prices itself and operates in free competition with other heating forms in heating markets A strong incentive for DH companies to develop their business, services and operations Veli-Pekka Sirola
  • 15.
    2.12.2014 Outcomes of thefree competition • Lowest district heating prices in western Europe and lowest in the EU compared to purchasing power • Most reliable DH system – availability 99.98 % • Average network heat losses 9 % - lowest in Europe • Low average need of make-up water; 1...1,5 times the network volume per year • Highest overall efficiency of CHP-plants (~ 85 %) • DH competitive and profitable also in smaller localities Veli-Pekka Sirola
  • 16.
    2.12.2014 Veli-Pekka Sirola Market shareof space heating year 2012 Heat pump: includes the electricity consumption of heat pumps Electricity: includes the electricity consumption of heat distribution equipment and electric sauna stoves Wood: includes the wood used by sauna stoves district heat 46,0 % electricity 18,6 % heat pump 11,6 % light fuel oil 8,2 % wood 13,1 % heavy fuel oil 1,4 % other 1,1 % Source: Statistics Finland
  • 17.
    2.12.2014 Number of customersand network length 0 2000 4000 6000 8000 10000 12000 14000 16000 0 20000 40000 60000 80000 100000 120000 140000 160000 1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010 kmpc. Number of customers pc. Total length of networks km Veli-Pekka Sirola
  • 18.
    2.12.2014 5. Reliable and highlyefficient networks / heat distribution Veli-Pekka Sirola
  • 19.
    Finnish DH distributionsystem • Hot water DH, closed two pipe system • Design temperature 120 °C • Design pressure 1,6 MPa (16 bar) • Varying flow temperature 115… ~ 70 °C • Return temperature ~ 40 … 65 °C • Always indirect consumer connections (both space heating and hot tap water) • Heat meters at every customer, now mainly remotely read • Year-round heat delivery • Expected lifetime of DH pipes 50…70...100… years 2.12.2014 Veli-Pekka Sirola
  • 20.
    2.12.2014 Veli-Pekka Sirola Uniform layingpractice • Use of preinsulated pipes (~ 40 years) • Extensive use of twin pipes in smaller dimensions • Reliable preheated laying and joint constructions • Quality chain from design to maintenance, certification • Avoiding chambers, draining and venting valves as far as possible • Branches made usually by drilling-in to pipelines in operation
  • 21.
    2.12.2014 Veli-Pekka Sirola Use oftwin pipe system in smaller dimensions up to DN 100, even DN 200 Investment •material savings •much less fittings and joints •simpler, faster installation •saving potential : 10...40 % Operation •clearly smaller heat losses: 10...50 % •30 years of good experience failure rate only 2...5 failures / 100 km, year cost efficient (both investment and operation)
  • 22.
    2.12.2014 Supply interruptions /DH availability 2007 – 2013 ( availability 2013 = 99,98 %) Veli-Pekka Sirola
  • 23.
    2.12.2014 Failure rate byDH pipe type 1993-2013 Veli-Pekka Sirola
  • 24.
  • 25.
    Introduction of smartheat meters in Finland • Every DH company is responsible for metering • Heat meters are now mainly (85...90 % of all) remotely read smart meters – hourly or monthly metering data • No requirements for smart heat metering in legistlation – the implementation has been market oriented • Automated system cheaper than manual in the long run • Enables new services and new operation models, e.g. – faster revealing of tampering or defect meters – tools to identify faults or inefficiencies in building heating system – new tariff models – accurate defination of the need of the heat capacity of the building – meter data made available for the customers as a web service – significant acceleration in billing – improved management and optimization of network operation 2.12.2014 There are 140 000 district heat customers, each of them has a heat meter There are 140 000 district heat customers, each of them has a heat meter Veli-Pekka Sirola
  • 26.