HOT|COOL NO.1/2021 - "Fuel, Flexibility & Green Transition"

- AND DISTRICT HEATING

WHY DISTRICT HEATING IN ANDORRA?

A heating system historically fuelled by gas oil Energy demand in Andorra is approximately 2,400 GWh/year. Electricity represents only 25% of this energy demand: the transport sector (people and goods) accounts for 50%, while 25% is consumed in heating. Until the early 2010s, heating was nearly all generated by domestic fuel and individual boilers. As a consequence of the crises of 2007 and 2008, which led to increased volatility in European energy markets and had a direct impact on fossil fuel prices, new and rehabilitated buildings in Andorra have more and more been installed with electric heating systems. As a result, the country's demand for heating oil has decreased by 35% over the last 15 years. Moreover, this trend has been reinforced even more by the need to reduce CO 2 emissions in response to climate change. Accordingly, whether due to the variability of fuel prices or raising awareness of the need to contribute to climate action, Andorran society is increasingly reluctant to invest in systems based on fossil fuels. However, most of the country's heating is still fuelled by gas oil. Furthermore, the managed electricity grid could meet the expected increase in demand and integrate renewable energy sources. More investment could be made in the network and in production infrastructure to absorb the demand for heating that currently covers diesel consumption. But this would not be energy efficient at all..

DH systems enable the transformation of the energy model. They respond to heat demand – which is very high in Andorra and has been historically covered by fossil fuel – while also guaranteeing service quality and competitive prices. Moreover, as these systems reduce electricity demand, they also avoid the need for a large investment in theelectricitygrid to respond to peaks in demand. In this way, district heating helps to reduce the risk to the competitiveness of electricity prices.

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