HOT|COOL NO. 4/2020 - "Large and Growing Markets"

NO. ! / "#"#

INTERNATIONAL MAGAZINE ON DISTRICT HEATING AND COOLING

LARGE AND GROWING MARKETS

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Contents

FOCUS ON LARGE AND GROWING MARKETS

PREFACE LARGE AND GROWING MARKETS

27 24 3

4 8 11 20 22 18 16

"JUST DO IT" – NIKE SAID, AND THEN BADEN WÜRTTENBERG MADE A HEAT PLAN By Morten Jordt Duedahl

DISTRICT HEATING IN THE WORLD From: IEA data and statistics

MEMBER COMPANY PROFILE: KMD

SCALING UP PIT THERMAL ENERGY STORAGES By Morten Vang Bobach

DISTRICT HEATING FROM DENMARK TO SHETLAND By Derek Leask

URBAN THERMAL ENERGY PLANNING By Dr. Volker Kienzlen

DISTRICT HEATING IS THE POWER GRID'S BEST FRIEND By Trygve Mellvang Tomren-Berg

MONEY IN THE CLOUD By Alfred Heller

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POWER REVOLUTION IN POLAND By Konrad Nowak

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Editor-in-Chief: Lars Gullev, VEKS

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ISSN 0904 9681

District heating and cooling (DHC) benefits energy security, the economy, and the environment. It is one of the most effective means to implement renewable energy and benefit from heat and power coupling. But as you can read in this issue of Hot Cool, theDHCpotential remainsmostly unexploited globally. There are opportunities in many countries to deploy new DHC infrastructure, improve the energy efficiency of aging ones, and integrate higher shares of renewables into existing networks. But it doesn't happen — a reason is sometimes lack of experience, knowledge, or practical skills to implement these large-scale energy transformations. Here, DBDH comes in handy. DBDH publishes Hot Cool, but the main business is helping cities or regions in their green transition. We help to find specific answers for a sustainable district heating solution or integrate green technology into an existing district heating system. Any city, or utility in the world, can call DBDH and find help for a green district heating solution suitable for their city. A similar system is often in operation in Denmark, being the most advanced district heating country in the world. DBDH then organizes visits to Danish reference utilities or expert delegations from Denmark to the city. For real or virtually in digital seminars or in digital meetings.

DBDH is a non-profit organization - so guidance by DBDH is free of charge. Just call us.

We'll love to help you district energize your city!

Lars Hummelmose Managing Director, DBDH lh@dbdh.dk +45 2990 0080

The International Energy Agency IEA publishes a range of unique and detailed energy statistics worldwide. Here we share IEA data, giving you an outlook on the status and development of district heating and cooling in the World.

The IEA reports and quality Data & Statistics are ‘Copied and pasted’ by Henrik Søndergaard, Editor of Hot Cool, DBDH.

Interest in district heating and cooling (DHC) in cities is often motivated by a combination of energy security, economic, environmental, and governance considerations. Indeed, DHC networks are potentially one of the most effective means to harness renewable energy to meet the heating and cooling demand because they offer: • Economies of scale and high-efficiency potential through the aggregation of demand. • A way to circumvent building suitability and consumer awareness barriers. • Renewable energy storage possibilities (thanks to thermal inertia) and the opportunity to integrate thermal storage technologies and benefit from the heat and power coupling. This potential remains largely unexploited, however, as there are opportunities in many countries to deploy new DHC infrastructure, improve the energy efficiency of ageing ones (e.g., with better-insulated pipes and higher-efficiency heat generators), and integrate higher shares of renewables into existing networks.

The DHC outlook

Today, district heating (DH) is far from everywhere – and only green somewhere. If DH is the first step, the next step is the green DH transition – a giant leap for mankind.

In 2018, a little less than 6% of global heat consumption was supplied through DHC networks and is expected to increase lightly by 4% until 2024. But, as heat demand is rising too, DHC share in total heat demand remains flat. Fossil fuels are still by far the dominant energy source in DHC globally due to the extensive use of natural gas in Russia and coal in China; overall, renewables accounted for less than 8% of the energy used in district heating 2018. Yet, renewable energy consumption for DHC increased more than two-thirds during 2009-18, mainly due to the extensive transition from fossil fuels to bioenergy in the European Union. Bioenergy is indeed the largest source of renewable energy in DHworldwide by far. Even though heat pumps and solar thermal systems still account for only a marginal share of DH energy, development continues, as new high-efficiency DH systems with lower operating temperatures make their integration possible.

However, renewable energy consumption for DHC is anticipated to expand more than 40% globally, contributing a little more than 8% of renewable heat consumption growth over 2019-24.

Outside of China, the expansion of renewables in DHC decelerates from the previous six-year period in many countries and regions. In Russia – where district network infrastructure is old and very inefficient – and in the United States, renewable expansion in DHC remains limited or non-existent due to lack of policy support. So, where to look for inspiration on exploiting the opportunities to deploy new DHC infrastructure and improve renewable energy? Of course, large countries have large markets, and not to name the obvious, when comparing DHC markets, it is more relevant to rank the share of district heating in total energy consumption of the countries and rank by renewable energy share in the district heating networks. This story shows markets where DHC penetration is high - but black. Others being small and green. And a few DHC markets where penetration is high and renewable energy share is high too. This is where to look for inspiration!

WEC World Energy Consumption*

DHC Share

RE Renewable Energy in DHC 68,800 ktoe = 800,000 GWh 8%

!" , #$% , %%% ktoe = !&& , %%% , %%% GWh

60,000 ktoe = 9,965,000 GWh 6% of WEC

* IEA defines one tonne of oil quivalent: 1 toe = 11.63 MWh; 1 ktoe = 11.63 GWh

DHC 1.5% of USA's energy consumption

RE in DHC ! %

16% of WEC

DHC networks are well established in the European Union, where they meet more than 8% of total heat demand. Finland, Denmark, Sweden and Baltic countries have the highest penetrations of district heating in Europe. European countries are expected to be the second-largest contributors to projected renewables growth during 2019-24, mostly because more bioenergy is used in existing and new DHC systems

11% of WEC

DHC share RE in DHC

" % # % ! %

! % "# % #! % #! % &' % $' %

UK

Germany France Finland Sweden

DHC 8% of Europe's energy consumption

"$ % "% %

Denmark "( %

One third of all DH in the world is in Russia! Despite a decline since 2012 DHC still provides more than one-third of the country’s heat consumption and the share of DH in total energy consumption is 22%.

DHC 22% of Russia's energy consumption

RE in DHC ! %

5% of WEC

China is responsible for more than one-quarter of global heat demand, and one third of all DHC in the world. China has the fastest-growing district heating capacity in the world as well. In 2005, district networks heated around 40% of floor area in the provinces that make up the Northern Urban Heating Area. Since then, over 95% of floor area growth resulting from greater urbanization has been covered by district heating. The heat supplied through DHC has almost doubled, amounting to 8% of the country’s heat consumption in 2018. Replacing inefficient individual coal-fired boilers with district heating systems and using alternative fuels such as bioenergy and waste in these systems, is part of China’s strategy to fight air pollution in large cities. Renewable energy consumption for DHC is anti- cipated to expand more than 40% globally over 2019-24 with China responsible for more than 80% of this increase.

DHC 5% of China's energy consumption

RE in DHC " %

22% of WEC

Benefits of PTES Thermal Energy Storage (TES) is one of the essential components in the future energy sector. It is a crucial element in reaching the global environmental, energy, and climate targets of the next decades. The TES is the component that binds an integrated and flexible energy system together. PTES is the most flexible and cost-efficient TES. Its high flexibility and low cost enable a cost-efficient transition to a renewable and energy-efficient future. The storage can decouple production and demand and thereby stabilize the energy system and minimize expensive peak load production. This means that a higher share of renewable energy or excess energy can be utilized. A PTES can serve as a peak load or reserve capacity in a district heating system. When combined with power-to- heat units, it can also help the electricity system by offering up or down-regulation capacity. It enables flexible and efficient sector coupling of the power and district heating sectors. Moreover, it will be an essential part of Power-to-X (PtX) processes to secure an optimized operation with high total system efficiency. Technical challenges for PTES lids As mentioned, the PTES technology is a crucial enabler for a cost-efficient transition of today’s energy system. Therefore, the PTES must be made robust and large scale with low maintenance requirements. The PTES technology has been developed and refined throughout the past 30 years. In recent years, increased attention has been paid to the design of the insulating lid. Historically, the lid has caused severe technical failures and un-wanted thermal losses.

By: Morten Vang Bobach, Product Manager, Senior Engineer, Aalborg CSP

There are substantial benefits of implementing a Pit Thermal Energy Storage (PTES) in an energy system. Throughout the lastyears, investmentshavebeenmadeintolow-temperature heat storage to develop, optimize, and commercialize the PTES technology. The latest achievements in improving the insulated PTES lid cover have also matured the technology and made it scalable. The technology has now reached a state where utility companies consider the technology bankable and are prepared to invest on a larger scale. PTES projects, with storage capacities of up to 1 million m 3 each, are currently in the planning and tendering phases. Basic PTES design The basics of a PTES are straightforward, as illustrated in figure 1. A large pit, which will act as the storage, is excavated in the ground. The excavated soil is then placed as embankments around the pit. In the end, the result is a water reservoir partly below and partly above terrain level. The reservoir is typically lined with a polymer liner before water filling. The top surface is covered with a floating, insulating lid to minimize heat loss. Heat is transferred to and from the storage through pipes and diffusers in the same principle as a traditional steel tank thermal storage.

Basic PTES design

Pumping well

Insulating floating lid

Ballast layer

Pumping well

Ventilation

Liner

Diffuser

Water

Soil

The second principle concerns the layout of the lid. The lid is divided into smaller sections. The sectioning can be seen on the photo of the new lid installed in Marstal, Denmark (figure 2). The lid sectioning has several advantages as it addresses and solves issues with water ponding, air accumulation, and thermal expansion. Each section is designed with an inward fall towards the center using a well-defined ballast layer of gravel. This results in a very efficient handling of rainwater that flows towards the center of each section. In the center of each section, a pump well ensures the removal of the water. This system makes it possible to drain the surface of the lid safely and automatically with no maintenance. Also, any trapped air released from the water will automatically vent at the section's higher level. This can be seen in figure 1. Another advantage of the sectionized lid is that both leakage detection and seeking is highly improved. Any potential leakage in a section will be led towards the pump well, and the control system will detect abnormal events. This means that water cannot accumulate inside the lid and cause the lid to break down. Finally, the sectioning also means that the PTES lid and the PTES technology, in general, are scalable. Therefore, much larger surface areas can be handled, as the number of sections will be increased. State of technology and scaling up With the latest achievements regarding lid design and the Danish market's accumulated experience over the past ten years, PTES is considered a mature technology. A PTES offers low-cost energy storage. It has a long service life, and it can be operated with a minimum of operational resources. The PTES technology, including the new lid design, is commercially available, and a project is currently being installed in Høje Taastrup near Copenhagen, Denmark. Aalborg CSP will supply and install an 11,000 m 2 insulating lid on a 70,000 m 3 PTES with a constant temperature of 90°C in the top of the storage. The PTES technology is a mature technology - also for larger storage. Currently, a tender phase is ongoing for a PTES system consisting of 2 x 500,000 m 3 storages in Aalborg, Denmark, with a design service life of 30 years. The PTES project in Høje Taastrup is a part of the "FLEX_TES" project supported by the Danish research and development program EUDP. Participants in the "FLEX_TES" project are VEKS, Høje Taastrup District Heating Company, PlanEnergi, EA Energy Analysis, and DTU Civil Engineering. The project has been presented in an article in Hot Cool 04/2019.

The scale is one factor of success for the PTES, meaning that a larger scale reduces the cost. On the other hand, the scale has also been one of the challenging factors. Existing PTES systems have surface areas of the insulating lid in the region of 10,000- 20,000 m 2 . The surface's size gives rise to some challenges, and future PTES systems are expected to be considerably larger. The technical difficulties regarding the PTES lid can be divided into four main areas: 1) Water inside lid The water inside the lid due to water vapour diffusion and potential leakages can cause increased heat loss. Polymer liners are not 100% water vapour tight. At high temperatures, the water vapour diffusion through the liner can cause water accumulation inside the lid. 2) Water ponding on top of the lid Handling rainwater on the surface of the lid is a challenge and can result in water ponding and high maintenance cost. 3) Air accumulation below the lid Air relief from the heated water in the storage can create problematic air accumulations below the lid. 4) Thermal expansion The temperature difference of the water from cold to hot condition leads to dimensional changes of the materials used in the PTES. Thermal expansion of liner and insulation of the lid is substantial on a large surface area. If this is not handled properly it stresses the materials. New PTES lid design The technical challenges of PTES lids have been addressed in a development project. The project aimed to create a new lid design that would solve the four main technological challenges. This unique lid design was recently presented and installed at Marstal Fjernvarme in Denmark. The lid design is patented by Aalborg CSP.

The new lid design is based on two main principles.

Firstly, the lid is based on a reversed roof principle, as it is designed as a diffusion-open top cover construction. The purpose of this is to address and solve the issue regarding water accumulation inside the lid due to water vapour diffusion through the liner. In a reversed roof principle, it is ensured that the moisture entering the lid can diffuse out of the lid. Simulations and testing have verified this. Additionally, the roof foil and insulation consist of a multilayer construction. Each layer is designed to the specific environment concerning temperature, diffusion, compression, stiffness, and insulation properties in the construction.

For further information please contact: Morten Vang Bobach, mvb@aalborgcsp.com

Figure 2: The new lid design (10,000 m 2 ) installed on a 75,000 m 3 PTES in Marstal, Denmark.

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By: Derek Leask, Executive Director Shetland Heat Energy and Power

In a recent study of Shetlanders it was found that up to 44% of our DNA was of Scandinavian origin. That suggests a lot of Viking tourists formed strong relationships in the islands many years ago!

Shetland was actually part of Denmark up until 1469. At that time King Christian the 1st who was not quite as well off as he wanted to be, pawned the islands to King James the third of Scotland as part of a dowry payment for his daughter Margaret’s marriage to the Scottish king. This was an I.O.U. that was supposed to be redeemed but Scotland formally annexed the islands three years later and they never did return to Denmark. A local restaurant in Lerwick called the Dowry commemorates this event today. However there is no need to travel far in Shetland to see the constant influence of Scandinavian history. From street names such as King Haakon and King Harald street; hotels such as the Kveldsro and Busta, and place names such as Lerwick, Muckle Roe and Tingwall, Scandinavian influence is all around. What does this all have to do with the Lerwick district heating scheme I hear the reader ask? Well, back in the 1990’s the Shetland Islands council started looking for new solutions for disposing of domestic and commercial waste and reducing its environmental impact. A UK based organisation may have been expected to look nationally for solutions. But with the close connections still prevalent with Scandinavia, Shetland looked across the North Sea to Denmark for inspiration in finding the answer to the problem. After contacts were made and exchange visits had taken place the outcome was to invest in a project to build a waste to energy plant producing heat for a local district heating scheme to supply the islands capital town of Lerwick. Copenhagen based waste to energy (WTE) engineers, COWI, were engaged to design and create the system and Shetland Heat Energy and Power (SHEAP) came into existence in 1999.

The WTE plant was built with Danish expertise and came on line in 2000 and was owned and operated by the council. SHEAP was formed as a separate organisation and was financed and owned by the Shetland Charitable Trust (SCT) which uses funds derived from the Oil and Gas industry in Shetland to benefit the local community. Over the years the charitable trust gradually stepped back from having a hands-on role in the business. Whilst SCT is still the full share holder SHEAP now operates independently and as a separate commercial entity. This created an unusual industry model. Most WTE companies own the means of production and the mode of delivery and supply of the heat produced. Many will also be producing electricity as well. In Shetland SHEAP and the Energy Recovery Plant WTE (owned by the council) are very much community facing and therefore work very closely together to ensure maximum community benefit.

This manifests itself in low carbon/emission disposal of municipal waste and affordable and low emission energy for supply to the community in the form of heat and hot water.

Shetland is 200miles away from the nearest city in Scotlandwhich is Aberdeen, somany of the developments or initiatives that take place in the islands are not visible or recognised in mainland Scotland or at a national central government level. SHEAP has worked away for over 20 years now providing low cost, low emission heat and being a major part of the solution in diverting Shetland’s waste away from land fill. However this has gone mostly under the national political radar. As governments around the world take increasing accelerated action to prevent catastrophic climate change, heating networks are suddenly being seen as a really positive weapon in the move away from fossil fuel based energy. Recent legislation at Scottish government level is now recognising and supporting the creation and development of heating networks across Scotland and the waste to energy infrastructure that exists in Shetland is at last being seen as a leader in this field and as the positive force for good that it is.

There is also the famous fire festivals called Up Helly Aa’s, held to celebrate the end of winter and ostensibly to celebrate Viking heritage but in reality more to do with the Shetlanders love of a good party. However the craft and skill that goes into producing hundreds of authentic Viking outfits each year with replica armour and weaponry creates a nostalgic impression of our Scandinavian past that maintains the connection to this present day.

The irony of this is that we now have a different challenge. As heat networks are embraced and new developments are encouraged the Shetland scheme has been in operation so long, the preservation and asset management of the network are now key priorities.

Not to fall behind, SHEAP have initiated a renewed estate management programme and set about introducing measures which will hopefully see the network last for another twenty years at least.

Part of this programme was to look to benchmark and share knowledge and experiences with other district heating operators and organisations. Who better to turn to at this time than our colleagues in Denmark once more.

In early summer we came across an advert in the Hot/Cool Danish District Heating magazine promoting a mentoring programme for UK based district heating companies. We contacted Morten Duedahl, business development manager at DBDH, who explained the scheme and invited us to participate. Soon we were introduced to our mentor Morten Stobbe from VEKS who operate district heating schemes in Copenhagen. Several ZOOM calls later we’ve now had high quality presentations and discourse from various representatives from the district heating supply chain in Denmark. Morten from VEKS has remained a consistently positive presence where we’ve exchanged knowledge and ideas on operating district heating. During this time we also reached out to other district heating schemes in the United Kingdom and exchanged ideas and knowledge on the challenges and opportunities we have. Ironically this quality of engagement and strong communication is almost because of Covid-19 and not despite it. Suddenly having the opportunity and ability to arrange video calls and reach out to so many people has been really helpful. Living remotely in Shetland almost every meeting prior to Covid-19 requires a plane trip, so seeing the world becoming used to video conferencing is not only good for us – it’s good for the planet. Through our mentoring with the DBDH we began to develop a new approach to network management. An issue for us, and it seems for many district heating operators, is that most interventions seem to be reactive. There are so many disadvantages to this, it’s hard to know where to begin.

However we can say it’s like a sticking plaster approach where we’re constantly just repairing leaks. What we wanted to do in Shetland is renovate the network and improve its integrity so that we eliminate leaks.

The sticking plaster approach also means that leaks occur in the most inconvenient places at the most inconvenient time – Murphy’s law as we say here in the UK. We want to control how we intervene on the network and reduce this erratic approach, both operationally and for customers. Prior to joining the mentoring scheme, we’d started considering the possibility of drone surveys as a method of assessing our network condition. We’ve some very good drone companies in Shetland but they are not familiar with thermographic surveying. Through the mentoring programme we were introduced to a Danish drone company specialising in district heating surveys and that was a light bulb moment for us. We partnered themwith our local drone specialist in Lerwick and we now have a proposal for a full drone survey which should give us visibility on all vulnerable areas of the network.

Through discussion with Morten at VEKS, we learned of the traffic light approach to network management. This is where areas of towns can be divided into high, medium and low risk. We’ve adopted this approach at SHEAP and now have a planned intervention and renovation programme on our network for next year. We anticipate that the drone survey will provide the data we require and this can be done on a more regular basis and will form the basis of a proactive estate management programme into the future.

Of course we will still have unexpected leaks, I’m sure. But now at least we feel empowered and have changed our asset management regime to proactive from reactive and that is a huge benefit going forward.

These are not the only links we maintain with Denmark. Babcock and Wilcox Volund recently signed a significant contract to install water cooled wear zones at the Waste to Energy plant in Lerwick. After twenty years, we’re still working with COWI and have recently engaged them to look at a number of new energy initiatives on our behalf. The history books say that Shetland was first colonised by the Norsemen in the 9th century. Eleven hundred years is a long time to maintain a working relationship so we must have something in common and not just our shared ancestry. We’ve been delighted with our participation in the DBDH mentoring programme and our cooperation with our Danish district heating suppliers. I’m not sure if we’ll still be doing business in another eleven hundred years’ time but support for just another 50 years of Lerwick district heating will do fine meantime.

For further information please contact: Derek Leask, Derek.Leask@shetland.gov.uk

Even a hero needs the right tool for the job The he !" u " ili " y indus " ry is full of loc ! l heroes. Whe " her you work under ground or behind " he screen, we rely on you for ! s "! ble supply ! nd your exper " ise in improving energy efficiency. Even ! hero needs " he righ " " ool for " he job. Do you h ! ve " he righ " " ools for your job? Le " ’s "! lk!

https://www.kamstrup.com/heat-solutions

Compulsory municipal heat planning for all cities with more than20,000 inhabitants: (energyneeds, potentials to reduce the energy consumption, potentials of renewable energies and excess heat, necessary areas, strategy for implementation). All 1,100 municipalities in Baden-Württemberg are required to submit their data on the energy consumption of the municipal building stock to an online database. This requirement intends to push municipalities towards effective energy manage- ment. To this end, KEA-BW has developed – together with three other state energy agencies - the toolbox Kom.EMS, which helps municipalities to manage the municipal building stock systematically. The amendment's cornerstones were discussed already in 2018, but the political process was somewhat lengthy. In the end, it took almost two years to achieve an agreement for the regulations. From an energy efficiency point of view, these are the most important topics:

By: Dr. Volker Kienzlen, KEA climate protection and energy agency Baden-Württemberg

ThestateofBaden-Württemberg introducescompulsory municipal heat planning for the biggest cities in the state. For the first time, the cities have to develop a vision for their CO 2 -neutral heat supply 2050. The Danish example was successfully adopted to German boundary conditions. We expect that the obligation to craft the first municipal heat plans will boost district heating systems in the South-West of Germany. This experience can then be used as a role model for other regions or states. Today, only a few cities have a clear vision of decarbonizing their heat supply within the coming decades. In Baden- Württemberg, the climate protection law obliges 103 cities and towns to work out their vision for a fossil-free heat supply by 2050 and develop a roadmap. These cities are home to 5.5 million people and thus half of the state's population. The parliament finally adopted the amendment to the state's climate protection law from 2013 on October 14th, 2020. With this amendment, Baden-Württemberg will pave the way towards a carbon-free thermal energy supply of the cities.

PV will be required on all new non-residential buildings and parking lots for more than 75 cars from 2022 onwards.

Climate mobility plans are introduced for cities.

A tool to foster sustainable construction, NBBW, will be implemented in all grant schemes.

The results have to be submitted to the regional council, where an evaluation can be made.

This article will focus on the requirements for municipal heat planning.

The visits of ministry delegations to Denmark in the framework of the German-Danish Energy Dialog showed the effect of an obligation for urban thermal energy planning. Minister Untersteller signed an MoU 2017 while projects with the Danish Energy Agency supported the process. In parallel to the legislative process, the state government initiated a pilot project in three cities in Baden-Württemberg. The cities are different in size and in the range of 20,000 to 230,000 inhabitants (Freiburg, Baden-Baden, and Rastatt). A different engineering company conducted each project. This pilot phase was closely followed by the ministry for the environment and the KEA climate protection and energy agency (KEA-BW). This initial phase's findings are summarized in a guidebook drafted by KEA-BW being published at the end of this year. Valuable input was the report "Experience with Heat planning in Denmark" provided by the Danish Energy Agency. The cities have to finalize their plans by the end of 2023. KEA- BW will assist them on their way: KEA-BW will manage a network of municipalities obliged to municipal heat planning. We supply a list of FAQs and are available for individual problems. Next, KEA-BW supports the engineering companies that work for the cities. We expect that a few big cities can perform the planning process with their municipal staff. The majority needs the support of an experienced engineering company. The next step for KEA-BW is to develop a technical handbook defining boundary conditions for the task. Heat plans of different cities need to be comparable; hence the boundary conditions for calculations have to be identical: Interest rate or the availability of renewable gases, and their price has to be defined. Our expectation is that district heating will play a significantly more dominant role in the future. Excess heat, cogeneration, heat pumps, and solar thermal systems can be used much more efficiently if the systems exceed a single building's demand. Thus, municipal heat planning will pave the road towards new and more efficient district heating systems.

If the transition towards a carbon-free heat supply shall be successful, municipalities need a clear strategy. This strategy must be local; local boundary conditions must be considered. In the first step, the status quo of energy consumption has to be analyzed. One element is a map showing the building type and the age of the buildings. This information already forms a valuable basis for the heat demand of the residential buildings. The amendment explicitly allows municipalities to gather heat consumption data, i.e., data from utilities or chimney sweeps, who own a good database of all installed heating systems. They are as well obliged to provide their data for the forthcoming planning process. Such data is essential to get a proper image of the current situation of the heat supply. Furthermore, municipalities have the right to use data available within the administration anyhow. Of course, data privacy regulations have to be observed during the entire planning process. The next step covers the analysis of the potential to reduce energy demand and supply fossil-free energy. Depending on the age and type of the building, thermal insulation can be applied. My intention is to focus on the differences between the cuities: Depending on the structure of the companies in the city, the potential to use excess heat is different. At least the sewage pipes and wastewater treatment plants are a valuable source of energy in each municipality. The use of renewable energies mainly depends on the available space, i.e., for large solar thermal and PV installations close to the municipality, and the access to environmental heat sources. Based on the status quo and the potentials analysis, a scenario for the whole city's CO 2 -neutral heat consumption is then developed. It covers the demand for residential buildings and the need for industry, including process heat. Boundary conditions concerning the availability and price of green electricity and green gas also have to be observed. As a result, the municipality obtains a city map, showing neighborhoods suitable for district heating, areas for heat pumps, and some buildings where biomass is an appropriate energy source. In any case, we expect the potential for district heating to be severalfold of today's level. The final step of the planning process is a local strategy for the transition of the heating sector. How will the city reach its targets within the given 30 years? This transformation strategy describes concrete measures necessary to become carbon neutral by 2050, at the latest.

For further information please contact: Volker Kienzlen, volker.kienzlen@kea-bw.de

District heating is the power grid's best friend

The market share of renewable energy in the Norwegian heating market is almost 100 % and at the beginning of 2020 a national ban on the use of fossil oil for heating entered into force.

By: Trygve Mellvang Tomren-Berg Norsk Fjernvarme (Norwegian DH association)

Waste heat is key In the 1980s, modern large scale district heating started to emerge in the Norwegian heatingmarket, driven bymunicipal- owned waste incineration plants in cities like Trondheim, Oslo, and Ålesund. The purpose of waste incineration was, and still is, to get rid of unsustainable landfills. But in addition, the excess heat from the plants is a valuable local energy resource to free up capacity in the cities' power grids during the cold winter months. Our power system's bottleneck has always been the peak hour demand of electricity during winter. District heating provided a solution framed as " the Norwegian district heating model:" to utilize excess heat and local renewable energy sources to reduce peak hour demand in the power grid. The concept of district heating using energy resources, otherwise wasted, continued through the next decades in several parts of Norway. In 2009, a national ban on landfills was introduced, leading to the building of more waste incineration plants. However, the urban district heating developement was not solely excess heat from waste incineration based, but also waste heat from other industries and local bioenergy sources.

How can district heating compete in a heating market dominated by electrical heating based on renewable energy? For most European countries, this question may seem irrelevant since we all know fossil fuels dominate the European heating sector. In Norway, the situation is different. Norway is blessed with unique possibilities for hydropower through nature, and hydropower has been the backbone of our power system for decades. Today, almost 100 % of electricity production comes from renewable hydropower. Usually, domestic production is more extensive than domestic consumption, and electricity prices have been low. Because of this hydropower dominated system, large scale combined heat and power plants (CHP) have never really been necessary for Norway. The concept of using excess heat from power production has likewise never been an alternative in the heating market. Consequently, when the oil crisis hit in the 1970s, heating solutions based on fossil oil were replaced or supplemented with much cheaper direct electrical heating, not other heating solutions. Very different from our neighbours in Sweden, where CHP was the go-to solution in urban areas and a driving force for the district heating revolution in the Swedish heating market in the 1970s.

At the same´time, the use of power to heat in district heating systems was starting to grow.

Flexible use of electricity It may seem like a paradox, but Norway's history of using electricity for heating, and a tariff system designed for it, has been paving the way for power to heat-solutions for district heating as well.

The way forward? Avoid losses! The current EU strategy on energy system integration highlights the need to reuse energy in urban areas to develop an integrated, circular energy system. The plan is a perfectly timed push in the right direction for policymakers all over Europe. For district heating companies in Scandinavia, the strategy feels like a pat on the back for a job well done so far, but it also serves as inspiration for the years to come. In Norway, the reuse of recovered heat fromwaste incineration, other types of waste heat, heat pumps, and bioenergy (mainly waste fractions from forestry, buildings, and sawmills) already accounts for 85 % of the energy output from district heating. It will continue to be the primary source also for the next decade. However, we now also see an immense potential for reusing waste heat originating from both electrification and hydrogen production, which are the two other trends highlighted in the EU strategy.

In the 1980s, large scale heat pumps, using sewage water as a source, were introduced in Sandvika, close to Oslo. Other cities followed, and similar heat pumps, most of them sea water- based, are the backbone of several district heating systems in Norway today. Also, electrical boilers have been present in developing district heating systems throughout the country. In practice, the electrical boilers are used as a flexibility mechanism for the power grid with a specific tariff system. The grid operators are allowed to turn off the electrical boilers in the district heating systems at short notice whenever peak demand is threatening the grid's stability. The district heating companies will then immediately switch to other sources in their production. In return, district heating companies get a rebate tariff for the use of the electrical boilers. Because of this flexibility mechanism, approximately 10 % of the Norwegian district heating production came from electrical boilers in 2019. However, the share of power-to-heat was much larger in some DH systems, most notable in Norway's capital Oslo, by far the largest city in Norway. Here the production from electrical boilers was 19 % in 2019. Oslo's district heating system has 250 MW electrical boilers for flexible use, giving the power grid operator a powerful tool for balancing the grid. EV + DH = Efficient The absence of (fossil) CHP in Norway, and the large share of direct electrical heating, gives Norway a unique possibility to use the heating and cooling sector to free up capacity in the power grid for the necessary electrification of other sectors. A great example of this is the ongoing electrification of the transport sector. Throughheavy government tax cuts for electric vehicles in the last decade, Norway now has the largest market share of electric cars globally. However, the EV revolution has put our power grid to the test. It highlights how electrification is driving the need for costly strengthening of power grids at the local level, especially in the cities. On the other hand, the roll-out of charging infrastructure is a market opportunity for district heating companies. We are experiencing several cases of real estate companies switching from stand-alone electrical boilers in commercial buildings to district heating, making room for EV charging without additional grid cost. A telling example of this trend is Storogården in Oslo. The owner Malling & Co, replaced two 700 kW stand-alone electrical boilers with district heating, freeing up capacity for 700 standard EV charging stations.

In short, in a circular, integrated, renewable energy system, district heating will be an efficient tool to reduce energy losses.

Surplus heat from large scale data centers is a perfect example of this and a prominent district heating source. In Sweden, most notably in Stockholm, data centers have been built into district heating systems for years. In Norway, the use of surplus heat from smaller, in-house data centers is nothing new, but next year the first large-scale data center is connected to the district heating network in Oslo. The surplus heat from this data center alone will annually provide heat corresponding to the heat demand of 5,000 apartments through the district heating network. It makes sense to reuse data center heat for those apartments instead of providing them with direct electrical heating solutions, which would only add to peak hour demand in the power grid. In a circular energy system, reuse is a must! The same will apply to the production of green hydrogen from electricity (PtX), a process that generates a large amount of waste heat. To achieve the ambition of circularity in the energy system, the potential for utilization of waste heat should influence both data centers and hydrogen production plants' location. Innovation needed The case of Norway can serve as an example of how district heating can function as a cost-cutting flexibility mechanism for the power grid. However, the Norwegian district heating companies' challenge is the relatively small penetration of waterborne heating systems in the existing building stock due to the large share of direct electric heating systems. In this respect, district heating's potential is much more considerable in other European countries, where waterborne heating is the standard. On the other hand, there are now signs of new, innovative waterborne heating solutions designed for retrofitting of electrically heated buildings. This kind of innovation is essential for unleashing the true potential of the Norwegian power grid's best friend.

2019 6.6 TWh

For further information please contact: Trygve Mellvang Tomren-Berg, trygve@fjernvarme.no

By: Alfred Heller, Civil Engineer, PhD, Chief Consulting Engineer, NIRAS A/S, Denmark

Cooperation between mostly Danish partners, aiming at the next generation digitally supported district heating, is described in Hot Cool 2020 no.1.

Here are some of the commercial cloud features the HEATman project will offer to district heating utilities and building owners in the future: - Data to be collected to an easily accessible central cloud platform. - Data owners can delegate third-party data access comfortably - from one central platform. - Cloud platformwith inbuilt data standardization of different types of consumption data, inlet/outlet temperature, weather data etc., which are easily collected through API. - Display and access data through the user-friendly Microsoft PowerBI visualization tool and API for automation. - Building owner can grant access to a district heating company to take control of a building, for demand side flexibility. - New data ingestion sources which will enable other HEATman partners to get hold of more data in order to deliver better analytics, insights and visualizations. - Danfoss heat controller (ECL) integration will allow 3rd parties (Building/Data Owner) to delegate access to data and control. Security and GDPR Cybersecurity and compliance with privacy regulations are pivotal for all platforms like HEATman. According to security by design principles, all the user data processed is stored separately from consumption data and device data. Storing the data anonymized strengthens security measures, making it possible only for authorized personnel to match user information such as names, emails, and usernames with their exact consumption information. End-to-end encryption starting from users, leading to the data collection devices. Credentials, security, and encryption keys are unique and single-use, and every device has a security protocol.

This article looks at new components in the cloud, performing a useful DH tool in the HEATman concept.

A research platform called "Science Cloud for CITIES" is applied - but not in the commercial version. All are open source, giving considerable freedom to design. HEATman plans to develop a commercial counterpart for the Science Cloud. This article shows the first insights into the "Commercial Cloud," one of the centerpieces of HEATman. The solution is developed by the Danish company NorthQ based on existing infrastructure monitoring and supporting buildings - primarily giving value to building-fleet owners. Commercial cloud solution As a central partner in the HEATman project, NorthQ handles the cloud platform and enables partners to exchange data, insights, and control options. The example image below describes the communication complexity of the commercial cloud concept. Scalability and security are pivotal. All considered apps and algorithms are secure, scalable, and easy to integrate - making district heating better, more cost-effective, and more efficient for users and utilities.

ENERGY PRODUCERS Neogrid & Hillerød Energy producer EMD Production optimization

HEATING OPTIMIZATION Neogrid & LeanHeat Get data from buildings and devices Analyze data Control ECL directly

DATA PROVIDERS Kamstrup & Logstor Provides data

SCIENCE CLOUD Tools for researches

RESEARCH DTU

Develops algorithm

ENERGY DISTRIBUTION Distribution Energy distribution network ENFOR Algorithm Desmi Pump manufacturer

BUILDINGS Danfoss ECL Provides data Provides control

The need for sustainable solutions on a large scale has never been so pressing, and finding viable economic and environmental answers is key to transforming the district heating sector into an industry driven by efficiency and innovative technologies. About HEATMAN The HEATman project was born from the necessity of digitalizing the district heating industry. The project consists of both private and public organizations that have joined efforts in order to optimize district heating operations through the use of data on a large nation-wide scale. To reach the goal of lowering district heating operational expenses and consumption by a minimum of 2%, Danish utility companies have combined forces with NorthQ and other leading IT companies and universities. The key to success is collecting, visualizing, and analyzing the vast amount of consumption data in an organized manner that drives value across the whole district heating ecosystem. Afterwards, sending control signals will allow for improved operational efficiency where utilities can react fast to weather and consumption patterns. Updating this old heating system will be a massive step towards Denmark's desire to drastically lower CO 2 emissions and be as sustainable and efficient as possible when using its energy resources. NIRAS, which is the leading part of the project, recognizes enormous possibilities to provide end-to- end solutions to their district heating customers both inside and outside Denmark - in the rest of the Nordic and Baltic regions.

Meeting the requirements that the GDPR lays on digital actors is demanding. Still, the microservice-based cloud architecture offers district heating plants, operating personnel of buildings, and energy managers full control of their building data, thus fully complying with the GDPR rules and regulations. Thanks to a decoupling of the user and device data, end- to-end encryptions, and redundancy by design, HEATman makes sure that data and users' private information is safe. As a straightforward example data stream, automated by the platform, has a well-defined end date. A specific procedure executes the processes demanded by the GDPR compliance, e.g., stopping data-delivery, erasing data, etc. Future developments Here are some of the future features that will be developed and integrated exclusively for the HEATman commercial cloud platform project: - Advanced data cleaning functions. - Data management functions (gives you opportunity to delegate special rights to access data). - Further heat unit control functions. - Integration of pump control solutions (for accurate heating measurement, analysis, control). - Integration with various HEATman project partners. A smart digital solution supporting the DH sector The HEATman project has one main goal: to develop a digital solution that will transform the way District Heating and Cooling companies handle data to deliver energy services. NorthQ will continue to develop this idea until February 2022, when the project is expected to be successfully completed, where a robust business model is expected for the overall HEATman consortium.

For further information please contact: Alfred Heller, AHR@niras.dk

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