HOT|COOL NO. 3/2024 "HEAT PLANNING"

Acknowledgments The Danish Energy Authority (EUDP) supported the participation of the Danish consortium in the IEA DHC project Digitalisation of District Heating and Cooling. References Schmidt, Dietrich (ed.), et al. (2023). Guidebook for the Digitalisation of District Heating: Transforming Heat Networks for a Sustainable Future, Final Report of DHC Annex TS4. ISBN 3-89999-096-X, AGFW Project Company, Frankfurt am Main, Germany. https://www.iea-dhc.org/fileadmin/documents/Annex_TS4/ IEA_DHC_Annex_TS4_Guidebook_2023.pdf Oddgeir Gudmundsson, Jan Eric Thorsen and Anders Dyrelund. District Energy – the resilient energy infrastructure, Energy Master Planning for Resilient Public Communities, October 2020. https://prod.euroheat.org/dhc/knowledge-hub/district-ener- gy-the-resilient-energy-infrastructure Digitalisation in District Heating and Cooling systems, Euroheat & Power, May 2023. https://prod.euroheat.org/dhc/knowledge-hub/dhc-re- port-on-digitalisation-in-dhc-systems

on the operational side, which traditionally relies on inflexible rule-based control logic. However, as the DHC sector embraces renewable and waste heat sources, which are often fluctuating and small-scale, the complexity of the operation can quickly become unmanageable for the traditional rule-based approach. By adopting digital solutions, the complexities can be controlled, enabling greater system flexibility and opening the infrastructure for alternative energy sources, such as waste heat from other sectors. Further, multi-source DHC systems with effective digital tools supporting the operation can take advantage of synergies between connected sources and by that minimize the capacity requirement of each individual energy source, leading to much lower installed capacity compared to decarbonization via electrification on a building level and by that minimize the environmental and economic footprint, which is the hallmark of any sustainable energy transformation. Considering the outsized impact the energy sector has on global warming, contributing to 75% of greenhouse gas emissions, it is fundamental that capable local energy infrastructures fulfilling local demands, like DHC, act globally and adopt end-to- end digital solutions for enabling continuously optimized thermal generation and distribution. This is the key enabler for expanding the reach of existing schemes and building new DHC systems capable of supplying affordable green energy to fulfill building thermal demands in urban areas. Conclusions Due to the general complexity of DHC systems, various digital solutions target different aspects of the system. Depending on the aspects being addressed, different challenges may arise. Some challenges are generic, such as challenges 4 and 6, while others are more human or historically related, like challenges 1 and 2. Additionally, there are challenges associated with the evolving legal environment, as described in challenge 5. Challenges 3 and 7 relate to the inherent risk of lock-in when choosing complex solutions for critical infrastructure systems. Once integrated and necessary for system operation, switching between digital solutions can become a practical nightmare scenario, perhaps requiring an operational shutdown for days, if not weeks, while changing the software system. This embedded nature poses the risk of vendor lock-in, which will hamper the development of digital solutions and must, therefore, be avoided. At Danfoss, we acknowledge the existence of these challenges and work diligently to address them in our solutions. We further foresee that cooperation with other solutions benefits the long-term growth of the DHC digital solution business.

For further information please contact: Oddgeir Gudmundsson, og@danfoss.com

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