CHP in Denmark and Copenhagen -...

CHP in Denmark

and Copenhagen

Jan ElleriisVice-DirectorMetropolitan Copenhagen Heating Transmission Company

District Heating in DenmarkThe history and the drivers

1903 the first DH system in Denmark (Frederiksberg), use of heat from waste incineration

No access to land fill

~ 1925 the first CPH plants in bigger cities, municipal ownership

Visionary technicians

~ 1960 ties, consumer own plant in smaller societies

Price gab heavy fuel oil

1980 Heat Supply Act

Regulation

CHP in Denmark and Copenhagen 2


98 % of energy consumption was imported

92%

6% 2%

Oil

Coal

Renewable

Gross Energy Consumption 1972


Danish Energy Strategy

The late 1970’s with focus on the security of supply(self-sufficiency)

The 1980’s with focus on the national economicoptimisation

The 1990’s with focus on the environmentalprotection

The 2000’s with different focus (liberalisation,economy and some environment)


From Centralized to Decentralized CHP

Centralized production in the mid 80’s Decentralized production of today

• Decentralized CHP

• Wind mill park

• Centralized CHP

Legend:

6

District Heating Systems

District heating utility

Large combined heat and power plant

District Heating and Energy Efficiency Conference, Sarajevo

7

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

Production of District Heating by Type of Producer

District Heating and Energy Efficiency Conference, Sarajevo

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CHP Proportion of Electricity and District Heating Production

0%

20%

40%

60%

80%

100%

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

District Heating Electricity

CHP in Denmark and Copenhagen

9

Composition of Fuels in District Heating Production

0%

20%

40%

60%

80%

100%

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

Oil Natural Gas Coal Renewable Energy and Waste


CHP in Denmark and Copenhagen10

Heating Installations in Dwellings

0

500

1000

1500

2000

2500

3000

1981 1990 2000 2008

1000 Units

Oil Boilers Natural Gas Boilers

District Heating Other

District heating covers 60 %

Long tradition for DH in Denmark

More than 450 DH companies in DK


Legal Framework of District Heating

No thermal power plants but CHP.

Heat Supply Act sets frame for local decisions.

Municipalities have traditionally had the authority.

All DH companies are non-profit entities.

Prices = Sum of true costs (no local subsidies).

DH company forwards the heating bills directly tothe consumers – not via local government.

All consumers can complain about irregularities ormisuse of tariffs and prices to an independent stateregulatory authority.

All DH companies must report on prices, budgetsand delivery conditions to this authority.


Statutory powers of the sectorGovernment

Implement energy strategy

Implement laws

Decide taxies (incentives)

Decide grant and subsidies (incentives)

Regulate the sector through the Energy Agency,Directives and guidelines

Directive regarding fuel and type of production

Control the sector through the

Energy Regulatory Authority, Tariffs and prices

Competition Authority, market and monopoly

www.energistyrelsen.dkwww.energitilsynet.dkwww.konkurrencestyrelsen.dk

http://www.energistyrelsen.dk/


Statutory powers of the sectorMunicipality

Municipalities have statutory power

• Heat planning in municipality

• Approve all energy projects

• Responsible for demarcation between DH and naturalgas supply

• Decide forced connection of end users

Municipalities responsible for establishing DHcompanies


District Heating companies

DH companies have no statutory power

Support the municipality in energy planningmatters (technical experience)

Support municipality defining environmental policy

Responsible for development, operation andmaintenance of DH-system

Responsible for budgeting and pricing strategywithin the framework of the Heat Supply Act

Responsible for financing of projects


Private enterprises

Cooperation between DH-companies and privateenterprises regarding

Development of components for the sector

Standardisation (components, processes)

Construction work

Maintenance of components

Consumer payment for heat – 1Cost


• DH is by law a non profit monopoly business– Only real cost can be covered by the heat payment

• Fixed cost not depending on heat consumption– Depreciation of investments

– Administration

– Fixed maintenance cost

• Variable cost depending on the heat consumption– Heat and energy (procurement or production)

– Power

– Taxes

– Variable maintenance cost

Consumer payment for heat - 2Tariffs


• DH company decides split between fixed and variable element in the consumer tariff

• High share on the variable part gives incentives for energy savings, but problems with the budget

• Fixed element can be based on m2 heated area, installed heating capacity (kW) or recorded max load (kW)

• Calibrated energy meters for variable (m3 or kWh)

• The consumer can be a building complex

• The building owner is responsible for the distribution of the heating cost on al the tenants

Regulatory framework for tariffs

- Tariffs for the coming year shall be present before the start of the year

- Tariffs shall be reported to the Energy Regulatory Authority

- All consumers can make a complaint about the tariffs to the Energy Regulatory Authority

- Every settlement made by the Energy Regulatory Authority can be proved by a individual Appeal Committee

– members pointed out by organisations representing authorities, consumers and producers



The Greater Copenhagen DH system

18 municipalities

4 integrated DH systems, 22 DH

companies

500,000 end – users

34,500 TJ (9,600 GWh,

32,700 GBtu)

Approx 20 % heat demand

in Denmark


Design Concept

MWh fuel comsumption in DH pr. MWh sale

Base load production

Transmissionsystem

Distributionsystem

Heat exchangers

Combined heat and power; waste toenergy; geothermal heat, surplus heat from industry

Global peak load

Localpeak load

End users

Booster pumps

Municipal distribution companies


Existing Heat Production Capacity

- 4 Waste to heat, 400 MW

- 4 CHP, 1.800 MW

– 7 units

– Steam turbines

– Gas turbines

– Coal, oil, gas, straw, wood pillars

- 1 Geothermal, 14 MW

- Several peak and reserve HOB


Strength of the system -flexibility

More efficient and flexible heat productionby optimizing the choice of production unit depending on price on electricity

Heat production from:• Oil• Coal• Natural gas• Incineration• Wood pellets• Straw• Geothermal heat

Heat production from:27 % - Waste2 % - Geothermal

70 % - CHP1 % - Peak load


CTR commercial structure

- Maintenance of technical system

- Construction of new lines and stations

- Operation of transmission system

- Operation of peak load plants (heat only boilers)

- Operation of 24 hour dispatch centre (also for local DH systems)

- Load dispatch (CHP and peak load)

- Heat purchase and sale

- Yearly turnover 1.5 billion DKK


Corporate governance

-Joint municipal company

-Small organisation– 2 directors

– 11 technical staff

– 8 administrative staff

– 8 dispatch operators

-Physical maintenance and operation out sourced to local DH companies and private contractors

-Planning, design and supervision by consultant


Fuel consumption

Waste

Geothermal

CHP biomass

CHP fossil fuel

Peak oil

Fuel consumption 2008

47 % based on CO2-neutral fuel


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Emissions CTR

0

10

20

30

40

50

60

70

2004 2005 2006 2007 2008

kg

/GJ o

r g

/GJ

CO2

SO2

NOx

Yearly reduction

CO2 -5,7 %

SO2 - 12,1 %

NOx - 8,4 %


Marginal CO2 emission end-user level

0

10

20

30

40

50

60

70

80

90

kg/GJ

Individual oil CTR 1989 CTR 2009

CO2

Reduction 48 %

Savings 62 %

Savings ~ 1,000,000 t CO2

CHP in Denmark and Copenhagen -...

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