District Heating Policies Norway …and cooling!

95% renewable & recovered heat!

IEA / Panel 5 / Norway

Heidi Juhler

DH figures 1999-2014 DH production

DH to customers

Service sector

Production 2014 : 5 TWh Delivered customers: 4,5 TWh 93 enterprices Sales: 300 k USD / 277 k euro 13000 substations Service sector:

65 %

Price 7 US cent/ kWh / 6,6 eurocent/ kWh

Recidential sector : 22% 20% appartment buildings Price: 6,9 US cent/kWh / 6,5 eurocent/ kWh Households Industry

Industrial sector

: 13 %

Price: 3,8 US cent/kWh / 3,6 eurocent/kWh Distribution loss

95% renewables in DH 2014 Fuel oil 1,3% Gas 3,8% Flexible electricity 13,2%

Recovered heat

2014

Bioenergy 18,1%

Heat from surroundings 9,2%

www.fjernkontrollen.no

What about District Cooling? 2014

169 GWh

New trend: No heat sale without cooling    

11 cities 50 000 m pipeline 150 MW Potential 2020 1TWh

No regulation today - not expected

Technology  Seawater or sewage based heat pumps  Free cooling  Absorption cooling from waste heat  Sorptive cooling – based on DH

The heat market 2013 District heating 7%

Petroleum products 10% Biomass / waste 13%

Gas 7% Electricity 63% Incl HP

Benefits of the heating and cooling market 81,7 TWh

1) Renewable supply 2) Increase security of supply in the power sector 3) Ressourse efficiency – waste heat

65 TWh

estimated

Reduced heat demand Increased total heating area by urbanization Peak demand increases > energy demand Slow growth for DH ¾ public sector or state owned Some consolidation Potential for converting from fossil oil to electricity in most sectors And to renewable heat in the building sector DH regulated: consession areas obligation to connect – price reg DC not regulated

Households: 39,3 TWh – 48 % Industry and service sector: 52%

Challenges for Society

Finner grafikk 70%

in-house electrical heating

40% reduction by 2030 Finner grafikk Norway 2015: 5,2 mill 2050: 7 mill

Security of supply

Urbanisation

The Low Carbon Society

How do we achieve security of supply in a society dependent on electricity? Need more flexibility in the system

The Oslo region is the fastest growing city region in Europe. What kind of infrastructure do we need to meet that challenge?

What kind of measures do we choose to achieve the goal of a Low Carbon Society?

Important development  Electrification of all sectors  Increased market for heating and cooling resources GHG emissions in Norway from sectors

Use of energy products in Norway

Investments in DH Investments support from the state owned company Enova – 220 M euro / 250 M $ /

NOK 4,000,000,000

Total investments 2,3 bill euro \ 2,6 bill $ 20,5 mrd nok

2000 M NOK allocated for renewable heat and measures on energy efficiency in 2015.

3,500,000,000 3,000,000,000

Low energy prices make few new

investments but there are some expansion in existing areas of larger city systems New targets for GHG emissions and for the

Norwegian share of renewable energy will

2,500,000,000 2,000,000,000 1,500,000,000 1,000,000,000

be discussed for adjustments of the Renewable directive

500,000,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Enova support 291 M euro \ 331 M $ 2650 M nok 13%

Policies for DHC in Norway

Crucial

to keep regulation on waterborne

Stimulating growth: regulations in an "expansion" market and higher prices on electricity

heating!

■ Building code: The system border at "Netto energy demand" Large buildings still to have flexible heating systems ■ More tax on electricityuse 1,78 euro c/ kWh 1,84 US c/ kWh 16 øre/ kWh ■ Electricity tariffs: if keeping administration tariffs low and peak pricing ■ Heating & cooling strategies in EU ■ Waste heat = recovered heat, 0 emissions for DHC: Recognition of the sector ■ Consession areas – Obligation to connect ■ Investment support also for converting from direct el to water borne systems Negatively impacting growth: no regulation and dominating electricity ■ Low energy prices – low rentability – less investments ■ Building code: if removing obligation to connect in planning&building ac ■ Energy Labeling System: system border "bougth energy", discriminating DHC ■ If CO 2 emissions from waste are allocated to the DHC sector Challenge: «The Return Of the Electric Radiators»

Fossile Fuel Phase Out = Branding DH Parliament has ordered a plan ■

How to phase out fossile oil in the DH Sector?

■

Gas not part of the scope – for now

■

No time limit for the phase-out

Challenge: Politicians fixated on the last %

What we say ■ The phase-out is happening now! ■ We are proactive and have sent a «non-paper» to the Ministry ■ Enova should play a part – this will cost ■ All DH companies have to «think about the last percentage»!

Online energy source tool will provide credebility

Hafslund Heat’s core business is optimal resource recovery in a circular economy Hafslund Heat’s concession area in Oslo

Utilizing resources the society want to get rid of

2014 • 55 % of the heat basted on heat recovery from waste incineration • 8 % of the heat based on heat pumps revering heat from sewage

Hafslund Varme AS: Best on phasing out fuel oil Similar to 150 000 cars driving 15 000 km pr year Production capacity for district heating in Oslo Fuel mix depending on heat demand and prices of energy carriers Installed capacity [MW]

1050

Oil 229 MW

900

600

300

-10°C

Price dependant use

LNG 100 MW Bio oil 220 MW

Electric Power 246 MW

+2°C

Wood pellets 56 MW Heat pumps 30 MW

Waste 161 MW

0

Usage per year [Hours/year]

Agder Energy Heat: Standard model for passiv houses Local heatcentral where hot tap water is energysource

Cabinet has integrated distributors for hot /cold water

System is designed for buidings with low need for heating. DHC: Simpler infrastructure in bulidings (appartments) Only hot water exchanger Reduced return temperature

Integrated distribution for floorheat or lowT radiators/fanconvector Heat from HV tube

Heat distribution system is removed Individual control – hot water always present – no boiler to turn off in summer Simplified installation, suitable for pre-fab bathroom modules Appliccable for DHC, solar, heatpumps, bio..

To sum it all up ■ National regulations - local management ■ Under the political radar with the new government, but supported by regulations from previous governments ■ New technology: o space heating from the hot tap water system, makes a competitive waterborne system o sorptive cooling: cooling houses with DH and water molecules in the ventilation system ■ Cheap surplus electricity is renewable, flexible and used in DH . More integration of el in the system. ■ Regulated prices for consumers, should not exceed the price of DH. Cheap supply, but customers do not appreciate. But free choice for all buildings under 1000m2: will choose electricity.