HOT|COOL NO. 1/2019 - "District Heating Finance and Economy"

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TOOLS FOR ANALYZING TOTAL COST OF OWNERSHIP There are different tools to assess the Total Cost of Ownership of different pipe systems. Below is an example of a tool to analyze a pre-defined pipe system. The tool gives an indication of which type of pipe system gives the lowest Total Cost of Ownership, and whether you, as the pipeline responsible, make the right choices for the pipe system.

The pre-defined pipe system is as follows:

• Active system, based on the impedance principle. In addition to the above possibilities, the system can locate any faults in the system. • Web-based management system where a single click on your PC gives you an immediate overview of the different detectors in the surveillance system – resistance measurement, galvanic resistance, localization of any faults. HEAT LOSS COSTS Heat loss costs are a critical element in the Total Cost of Ownership analysis of the district heating system.

It is crucial for Total Cost of Ownership analyses that the conditions that apply to the individual energy company are used in the calculations.

Various factors influence the heat loss costs: • Whether TwinPipes or single pipes are chosen. TwinPipes have a lower heat loss than single pipes in the same service pipe dimension. • The insulation series. The standard insulation series are series 1, 2, and 3.

A decisive condition is to settle the price of the energy cost of producing district heating to cover the heat loss.

• The production method is of huge importance for the insulation properties of the foam. Continuously produced pipes have better insulation properties than traditionally produced pipes. • Whether the pipes are produced with diffusion barriers or not, to ensure that

the insulation properties are not deteriorating during their service life. Pipes without diffusion barriers will age and the insulation properties deteriorate over time.

Total Cost of Ownership is calculated instantly for 12 different pipe scenarios for the same project, when above conditions have been entered. (Single pipe, TwinPipe, traditionally produced pipes, continuously produced pipes).

It is also simple to make sensitivity analyses on other conditions e.g. the price of the energy.

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