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Efficient District Heating and Cooling Systems in the EU Efficient district heating and cooling systems in the EU Efficient district heating and cooling systems in the EU Case studies analysis, replicable key success factors and potential policy implications Prepared by Tilia GmbH for the JRC Marina GALINDO FERNÁNDEZ Cyril ROGER-LACAN Uwe GÄHRS Vincent AUMAITRE 20 16 This document has been prepared for the European Commission's Joint Research Centre. However it reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein. December 2016 1 EUR 28418 EN Efficient district heating and cooling systems in the EU JRC Science Hub https://ec.europa.eu/jrc JRC104437 EUR 28418 EN PDF ISBN 978-92-79-65048-2 ISSN 1831-9424 doi:10.2760/371045 Luxembourg: Publications Office of the European Union, 2016 © European Union, 2016 The reuse of the document is authorised, provided the source is acknowledged and the original meaning or message of the texts are not distorted. The European Commission shall not be held liable for any consequences stemming from the reuse. How to cite this report: Galindo Fernández, M., Roger-Lacan, C., Gährs, U., Aumaitre, V. , Efficient district heating and cooling systems in the EU - Case studies analysis, replicable key success factors and potential policy implications, EUR 28418 EN , doi: 10.2760/371045 All images © European Union 2016 Title Efficient District heating and cooling systems in the EU Abstract Based on a holistic case studies analysis of 8 efficient district heating and cooling systems in different European Member States (Denmark, Estonia, France, Germany, Italy, Spain and Sweden), the study identifies the key factors enabling to develop high quality, efficient and low-carbon DHC systems, discusses how these key success factors can be replicated in the EU and provides a better view on the role and features of these systems, which can provide an evolutive backbone to balanced energy transitions. Finally, it suggests some potential policy guidelines to support their deployment. December 2016 2 Efficient district heating and cooling systems in the EU Table of Contents List of acronyms ................................................................................................. 4 1. EXECUTIVE SUMMARY ............................................................................... 6 2. Introduction .............................................................................................. 9 3. Case study selection ............................................................................... 10 3.1 Methodology ............................................................................................10 3.1.1 Selection of suitable case studies .........................................................10 3.1.2 Evaluation of preselected DHC networks and selection of a suitable group of case studies ...................................................................................................10 3.2 Final group of case studies ........................................................................11 4. Case study analysis ................................................................................. 12 4.1 Methodology ................................................................................................12 4.2 Case studies ................................................................................................12 4.2.1 DENMARK: Integrated District Heating and Cooling in Greater Copenhagen .......13 4.2.2 DENMARK: Solar District Heating with Seasonal Storage Pit in Gram ................26 4.2.3 ESTONIA: District Heating and Cooling in Tartu ............................................36 4.2.4 FRANCE: Smart District Heating and Cooling in Paris Saclay ...........................51 4.2.5 GERMANY: District Heating in Hafencity (Hamburg) .......................................69 4.2.6 ITALY: District Heating and Cooling in Brescia ..............................................83 4.2.7 SPAIN: District Heating and Cooling in Barcelona...........................................94 4.2.8 SWEDEN: Integrated District Heating and Cooling in Greater Stockholm ......... 105 4.3 Cross-case study synthesis .................................................................... 123 4.3.1 Key Success Factors in DHC systems ......................................................... 123 4.3.2 Influence of the identified KSF in the performance of DHC systems ........... 124 5. Replicability potential in other Member States ........................................... 127 6. Conclusion: lessons learnt and potential policy guidelines .................... 134 6.1. Efficient DHC grids often provide an evolutive backbone to balanced energy transitions. ....................................................................................................... 134 6.2. The development of those efficient DHC grids relies on a new balance between cooperation and competition within open, evolutive systems ................................... 136 6.3 Potential implications on some policy guidelines ................................................ 139 ANNEX 1 Preliminary questionnaire sent to DHC networks ............................. 142 ANNEX 2 Evaluation grid and case studies selection ....................................... 143 December 2016 3 Efficient district heating and cooling systems in the EU List of acronyms ATES Aquifer Thermal Energy Storage B2B Business to Business CAPEX Capital Expenditure CBA Cost Benefit Analysis CHP Cogeneration Heat and Power COP Coefficient of Performance DBO Design, Build, Operate DC District Cooling DH District Heating DHC District Heating and Cooling EBITDA Earnings Before Interest, Taxes, Depreciation and Amortization EE Energy Efficiency EIB European Investment Bank EPC Engineering, Procurement, Construction ETS Emissions Trading System EU European Union HDD Heating Degree Days HOB Heat Only Boiler H&C Heating and Cooling HSE Health, Safety and Environment JRC Joint Research Centre KSF Key Success Factor LNG Liquefied Natural Gas O&M Operation and Maintenance OPEX Operational Expenditure PPP Public Private Partnership PV Photovoltaic RDI Research, Development and Innovation RE Renewable Energy RONA Return on Net Assets SPV Special Purpose Vehicle TSO Transmission System Operator VAT Value Added Tax WACC Weighted Average Cost of Capital WTE Waste-to-energy December 2016 4 Efficient district heating and cooling systems in the EU ACKNOWLEDGEMENTS The authors would like to thank all the contributors to this report for their time and valuable inputs. Supervision and coordination Special thanks to the JRC team in charge of coordinating and supervising the study, and in particular to Ronald Piers de Raveschoot and Johan Carlsson for their guidance and comments. Data contributors and local reviewers for the case studies analysis We extend these special thanks to the local contacts interviewed and met for the case studies analysis: Organisation Main contributors and local reviewers 1. Greater Copenhagen (DK) Ramboll Anders Dyrelund (main contact) Danish Energy Agency Anders Hasselager Danish DH Association Birger Lauersen HOFOR Henrik Lorentsen Bageskov Vestforbraending Ole Holmboe CTR Jan Elleriis 2. Gram (DK) Ramboll Flemming Ulbjerg (main contact) Gram Fjernvarme Lars M. Damkjaer 3. Tartu (EST) Fortum Tartu Margo Külaots (main contact) Fortum Harri-Pekka Karhonen (main contact) Fortum Kristian Rehnström, Monika Kuusela Tartu City Council Jarno Laur Ministry of Economic Affairs and Communications Jako Reinaste ECA Külli Haab, Mare Karotamm, Riina Randmaa 4. Paris-Saclay (FR) Tilia Vincent Aumaître (main contact) EPAPS Julien Sorreau, Antoine du Souich 5. HafenCity (DE) enercity contracting Nadja von Neuhoff (main contact) City of Hamburg Dr. Björn Dietrich Tilia Uwe Gährs AGFW Adolf Topp 6. Brescia (IT) A2A Alessandro Gnatta(main contact) A2A Lorenzo Spadoni AIRU Fabrizio Tadiello 7. Barcelona (ES) Ecoenergies Barcelona Àngel Andreu del Álamo (main contact) Ecoenergies Barcelona Jaume Villa ADHAC Rafael González Barcelona City Council Cristina Castells i Guiu, Manel Torrent i Aixa 8. Stockholm (SE) Fortum Värme Anders Lindstrom, Adam Lindroth (main contacts) Energiföretagen Sverige Erik Thornström Fortum Harri-Pekka Karhonen Other contributors Last but not least, we would like to thank Eloi Piel from Euroheat & Power for his contribution to identify potential case studies as well as all the respondents to the Stage 1 questionnaire, and the Tilia backoffice team for its support throughout the study. December 2016 5 Efficient district heating and cooling systems in the EU 1. EXECUTIVE SUMMARY Efficient DHC systems A. Context main indicators Economically viable (robust Efficient district heating and cooling (DHC) systems business model) can play a key role in achieving the Energy Union’s Affordable prices for heating objectives. They improve energy efficiency (EE) and and cooling enable to increase the share of local renewable and Stable and resilient supply recycled energies in heating and cooling (H&C). High quality service Moreover, a higher share of these systems in H&C Mid-to long term adaptability of markets can facilitate the integration of intermittent the service renewable energy (RE) in the electricity mix, providing Low-CO2 emissions and global balancing to the grid (e.g. through thermal storage or environmental footprint flexible CHP production) and, overall, increase the EU’s security of energy supply. DHC systems have already proved
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