Heating and cooling in EU policy making
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Transcript of Heating and cooling in EU policy making
THIS RESULTS IN EXPENSIVE,
UNSUSTAINABLE ENERGY
A HUGE AMOUNT OF ENERGY IS WASTED IN EUROPE
14,000 TWh INTO USE, 3,300 TWh OF WHICH FOR HEATING
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HEATING ENERGY AND EMISSIONS TRADINGThe heating need of buildings in the EU is about 3,300 TWh. The majority of this is property- specific gas and oil heating, which is not burdened by the emissions trading scheme, unlike district heat and electricity.
HEAT IS WASTED IN EUROPEThe EU member states use about 14,000 TWh of energy. At the same time, 4,600 TWh of energy is wasted mainly as heat lost into water and air in conversion and distribution processes.
natural gas
oil
district heat
electricity
renewables
coal
75% OF HEATING ENERGY IS OUTSIDE
EMISSIONS TRADING
4,6
00
TW
h W
AS
TE
D
A HUGE AMOUNT OF ENERGY IS WASTED IN EUROPE
IF WASTE ENERGY WAS UTILISED, IT WOULD HEAT UP THE WHOLE OF EUROPEEurope is squandering 4,600 TWh of energy as waste heat from energy production. This is 1.4 times the amount of energy needed for the heating of buildings in the EU member states.
By utilising the waste heat in district heating networks, the energy need could be reduced considerably. This would also save the world’s energy resources, improve each country’s own energy security, strengthen na-tional economies and reduce climate emissions. Without compromising one iota of comfort.
DISTRICT HEAT& COGENERATION HAVE BEEN FORGOTTENThe European Union is on the way towards a low-carbon energy future, and it has set joint energy policy targets. Different member states have adopted different kinds of steering methods depending on their national preconditions.
When selecting the steering methods, district heat and combined heat and power generation (CHP) have been overlooked as tools, despite their great potential. The bill is paid by us, the consumers, in the form of high energy costs.
28€
2009 2010 2011 2012
14€ 17€
13€
PRICE TREND OF EMISSION ALLOWANCESSOURCE: SKM SYSPOWER
EUA-Dec
€/TO
N CO
2
5€
20142013
8€
54
1
3
2
20-20-20 DECISIONS
Energy-efficiency and renewable energy targets
for member states are overlapping with the
climate target.
REGULATION TO PROMOTE
ENERGY EFFICIENCY
Sector-specific regulation does not achieve the optimal
result: most cost- effective solutions,
which are most sensible overall.
In the EU, a huge amount of energy is
wasted in the system, which consequently
produces unnecessary CO2 emissions.
SUPPORT FOR
RENEWABLE ENERGY
Production and investment subsidies disturb the emissions
market and the electricity and heating
market, which therefore cannot operate to their
optimal capacity.
In 2014, renewable energy was supported
in the EU by EUR 45–50 billion.
EMISSIONS TRADING HAS NO
STEERING IMPACT
There are too many emission allowances on the market, which keeps
their price low. Cheap emission allowances do not steer towards energy efficiency, a
reduction in the use of fossil fuels, or utilisa-tion of low-emission
technologies such as district heat.
The problem is enhanced by the fact that the majority of
heating is outside the emissions market and is therefore not covered
by policy measures on emissions.
PROBLEMS IN THE
MARKETNo electricity production
– including combined heat and power gener-
ation – is profitable when the price of electricity
does not meet the production costs.
Building specific heating is excluded from the
emissions market and is not covered by policy measures on emissions.
The market does not treat all operators equally.
THIS RESULTS IN EXPENSIVE,
UNSUSTAINABLE ENERGY
A HUGE AMOUNT OF ENERGY IS WASTED IN EUROPE
6
PREVIOUS SOLUTIONS
ARE MENDED WITH A
PATCHWORK QUILT OF
DECISIONSPatching up of
problems focuses attention on less important issues.
Opportunities in combined heat and
power generation or district heating are
not noticed or realised.
7
DISTRICT HEAT AND COMBINED
HEAT AND POWER GENERATION ARE
AN UNTAPPED OPPORTUNITYIn most countries, energy policy carried on since the 20-20-20 decisions has
not encouraged companies to invest in district heat or combined heat and power
generation. Distortions in the heating market reduce the
attractiveness of district heat to customers.
ELECTRICITY PRICE TREND IN GERMANYSOURCE: EUROSTAT
ELECTRICITY PRICE FOR HOUSEHOLDS PRODUCER PRICE
0
5
10
15
20
25
30
20132005 2006 2007 2008 2009 2010 2011 201220042003
CEN
T/k
Wh
WHAT CAN BE DONE?
INVESTING IN SUS-TAINABLE ENERGY
WASTE HEAT UTILISED AS
DISTRICT HEAT
WASTE HEAT UTILISED AS
DISTRICT HEAT
IT IS TIME TO IDENTIFY THE PROBLEMS AND TAKE MEASURES!
TO IDENTIFY THE POSSI- BILITIES OF THE HEATING AND COOLING SECTOR and to develop related statistics and
to include heating and cooling as part of the key EU en-ergy policy next to electricity and fuels.
1TO REMOVE OBSTACLES TO DISTRICT HEATING, DISTRICT COOLING AND CHP, i.e. to remove barriers to building a district heat and district cooling infrastruc-ture in member states and cities and
to relieve the emis-sions trading sector of overlapping emis-sions control, such as CO2-based taxation.
2
BETTER ENERGY SYSTEM THROUGH COGENERATION AND DISTRICT HEATMeasures to achieve a low- carbon Europe are currently under preparation. When seeking a solution in Europe, we must not dismiss locally operated district heat and district cooling.
A competitive heating market operates efficiently without nee-ding any production sub sidies. However, support for tech- nolo-gical development, research and innovations is needed.
The selection of practical means in companies is directed by cost effectiveness, utilisation of technological development and the price of carbon dioxide.
In this kind of an operating environment, energy companies can make investments that improve energy security, reduce emissions and benefit the customers.
TO MAKE RENEWABLE ENERGY EQUAL regardless of the producer, production location or production method.
3TO SET A CLEAR TARGET FOR REDUCING CO2 EMISSIONS, i.e. include property-specific heating in emissions trading, and
to create an impartial competi-tion environment for the heating market.
4TO HARMONISE AND PHASE OUT PRODUC-TION SUBSIDIES USED IN DIF-FERENT MEM-BER STATESand to replace them with tech - n ology-neutral sup-port for research, innovation activities and commercialisa-tion of new technology.
5
DISTRIC
T H
EAT
ELECTRICITY
COMBINED HEAT
AND POWER
GENERATION
COMBINED HEAT AND POWER
GENERATION IS STILL UNCOMMON
IN MANY EU COUNTRIES. THE
ENERGY NEED AND EMISSIONS CAN
BE REDUCED WITH CHP.
INVESTING IN SUS-TAINABLE ENERGY
DISTRICT HEAT AND COOLING AS A SOLUTIONDifferent parts of the energy system can be optimised with the district heating and cooling system. With the network, different heat sources can be introduced in the system, the fluctuation of supply and demand can be balanced, and the energy production methods can be optimised to different situations. For customers, district heating and cooling is an interesting and competitive alternative.
FLEXIBILITY TO ELECTRICITY GENERATIONWith combined heat
and power generation, the volume of elect-ricity generation can
be adjusted according to the consumpti-
on need and other electricity production.Cogeneration can be
used for balancing the fluctuation of wind
and solar power.
WASTE HEAT UTILISED AS
DISTRICT HEAT
DISTRICT HEAT AS A SOLUTION
Energy production and consumption and their timing can be optimised by utilising
the possibilities of district heating and cooling. That way, it is possible to utilise the most favourably priced and best sources of
heat and cooling in terms of the climate. Va-rious technologies can be utilised optimally
on both a small and large scale.
A DISTRICT HEATING AND COOLING SYSTEM CAN STORE
ENERGY AS HOT OR COLD WATER IN UNDERGROUND STORAGE TANKS.
MORE RENEWABLESDistrict heating and cooling is the most efficient method of
increasing rene-wable energy in
urban districts. Many renewable energy
solutions are not eco-nomically justifiable to be installed separately
for each building.
With district heating and cooling, custo-
mers will have a wide range of renewable
energy forms at their disposal, from solar and bioenergy to heat pumps and
waste-to-energy.
COMFORT AND SECURITYCustomers will also
need heat and cooling in the future. Energy is needed for space heating and hot tap water, and for space
cooling. Although heating and cooling
needs can be inc-reasingly varied and unexpected, district heating and cooling
systems provide effortless heat and
cooling on demand at all times.
ALL ENERGY IS UTILISED
Only with a district heating and cooling system, heat can be
transmitted from where there is too
much of heat to where it is needed.
Thermal energy from electricity genera-tion, industry and properties, which
would otherwise be unutilised, can be
captured and refined into district heat.
Storage facilities built in the district heating and cooling networks
can be used for storing surplus heat
or, for example, cheap electricity generated
during periods of peak output of solar and wind power. These
storage facilities can be used for reducing energy production
that causes emissions.
DISTRICT HEAT AS A SOLUTION
WASTE HEAT UTILISED AS DISTRICT HEAT!
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