HOT|COOL NO. 4/2018 - "Emerging District Heating Markets"

NO. 4 /2018

INTERNATIONAL MAGAZINE ON DISTRICT HEATING AND COOLING

EMERGING DISTRICT HEATING MARKETS

FOCUS

DISTRICT HEATING: A new low-carbon heat solution for the Irish heat market

DISTRICT HEATING IN TXOMIN ENEA, SPAIN - Innovation and efficiency in urban planning

DBDH - direct access to district heating and cooling technology

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CONTENTS

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THE COLUMN REQUIREMENTS FOR EVERYONE - TAKE RESPONSIBILITY AND TAKE FULL ADVANTAGE OF THE RESOURCES: "GO DHC" By Lars Gullev, VEKS

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FOCUS EMERGING DISTRICT HEATING MARKET: THE NETHERLANDS By Christian Broks, Eurowater B.V. – Etten-Leur NL

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FOCUS DEVO’S SMART METERING JOURNEY By Steen Schelle Jensen, Kamstrup

FOCUS DISTRICT HEATING IN BELGIUM By Philip Heylen, Vice Mayor of the City of Antwerp

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FOCUS DISTRICT HEATING IN FRANCE By Guillaume Perrin, FNCCR – Département Energie, France

FOCUS SUPPLYING TO THE FRENCH DISTRICT ENERGY MARKET By Jesper Boysen, BROEN

FOCUS DISTRICT HEATING IN TXOMIN ENEA, SPAIN INNOVATION AND EFFICIENCY IN URBAN PLANNING By Natalia Rey Aguirre, Kamstrup

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FOCUS DISTRICT HEATING: A NEW LOW-CARBON HEAT SOLUTION FOR THE IRISH HEAT MARKET By Donna Gartland, Irish District Energy Association (IrDEA)

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FOCUS PRESENT STATE OF THE HUNGARIAN DISTRICT HEATING SECTOR WITH FUTURE TRENDS AND INVESTMENTS By Tibor ORBÁN, DCEO – Budapest District Heating Company

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MY HOME IS NOT MY CASTLE - BUT A PART OF A DISTRICT HEATING COMMUNITY By Erik Christiansen and Rie Krabsen, EBO Consult

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TURNING DATA INTO VALUE WITH VISUALIZATION By Joacim Sundqvist, Mälarenergi AB

MEMBER COMPANY PROFILE: THE BROEN GROUP

Computer animated illustration (article page 8)

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EMERGING DISTRICT HEATING MARKETS

Editor-in-Chief: Lars Gullev, VEKS

Pre-press and printing: Kailow Graphic A/S

Coordinating Editor: Kathrine Windahl, DBDH

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By Lars Gullev, Managing Director, VEKS

Requi rements for everyone: TAKE RESPONSIBILITY AND TAKE FULL ADVANTAGE OF THE RESOURCES: "GO DHC"

The necessary reduction of our energy consumption does not mean we will have to reduce the comfort of our buildings - no, we just have to act smarter than we have done so far. Not many people in Europe today are aware of the fact that the surplus heat from our production of electricity is larger than the total heat demand in Europe! By utilizing surplus heat from production of electricity and from industrial production - and utilizing it in intelligent district heating systems - it will be possible to save an energy amount corresponding to Europe's current total consumption of natural gas for heating. This is not a dream – documentation for this can be found in the heating and cooling project "Heat Roadmap Europe". We can, if we want to, but it requires for the politicians in the EU and in the individual countries to take responsibility and ensure the necessary robust framework conditions, which are a prerequisite for the long-term investments that must be made in the development of intelligent district heating systems. If the framework conditions are in place, it will ensure future generations to have the same opportunities of access to energy resources, which our generation has had.

In order for us to be able to pass on the planet to our children and grandchildren with an easy conscience, it is imperative that we use the resources we have access to in the most responsible way. This can be done, for example, by ensuring clean air and clean drinking water - but also by ensuring the highest possible efficiency when utilizing fossil fuels such as natural gas, oil and coal. In this respect, it is not only a goal to ensure as low CO2 emissions as possible in order to reduce greenhouse gas emissions as much as possible, but also to utilize fossil fuel resources optimally for future generations. Fortunately, more and more countries choose to take active responsibility for cleaner air, for reducing CO2 emissions and for making better use of our resources. And in more and more countries, the answer is to expand district heating systems as a natural part of a modern, responsible society’s infrastructure. In this issue of Hot Cool, we focus on a range of different countries - France, Holland, Ireland, Spain, Belgium and Sweden. Countries where district heating is either a new player in the market or where district heating already has a significant market share. Everywhere, it is acknowledged that the cheapest way for a society to reduce CO2 emissions - while making the most of the energy resources - is to utilize surplus heat from, for example, electricity generation, waste incineration and industry. However, this is only possible if a district heating infrastructure is established, or has already been established, which allows surplus heat to be "collected" in one place, where there is no heat demand, and subsequently transported to a location through a district heating network, where there is a heating requirement. No other energy concept provides these options.

Could we give each other a more valuable Christmas present than that?

BEST WISHES FOR A HAPPY NEW YEAR FROM EVERYONE IN DBDH.

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By Christian Broks B. Eng., Branch Manager Eurowater B.V. – Etten-Leur NL

FOCUS EMERGING DH MARKETS

Some notes from the study trip:

Recent developments show a tendency towards lower system temperatures for district heating projects in the Netherlands. Lower system temperatures change the system conditions, which increase the need for asset management and correct water treatment. On October 3rd, “Warmtenetwerk” (The Dutch District Heating Foundation) with about 50 organizations from the Dutch heating sector made a three-day study trip to Denmark, the world leader in sustainable heating networks. Heat companies, producers, universities, branch organizations, as well as the Dutch Ministry of Energy, Utilities and Climate obtained information about the Danish recipe for success. The dialogue was held on how the Dutch heating sector can speed up the energy transition by learning from the Danish experience. Although Dutch district heating exists since 1923, the situation in the Netherlands differs significantly from the Danish situation: District heating in Denmark started to grow seriously in the 1970s when 92 % of the energy consumption was based on imported oil. With the 1973 oil crisis, it became clear how vulnerable and dependent you are when being in such a position. (The current import of biomass is therefore currently up for discussion as Denmark does not want to be dependent on imported energy sources.) In the Netherlands 2,800 billion m3 of natural gas reserves were discovered in the 1960s. Within a short period of time, a nationwide coverage of a gas network was established. Natural gas became the default in the Netherlands for decades, providing cheap, clean and easy energy to the Dutch households. Nowadays, after having used more than 75 % of the domestic gas resources, smaller earthquakes in Dutch development areas are starting to become more severe and frequent. Natural gas from Russia makes the Netherlands more dependent on imported energy sources, and international climate goals force the Dutch to alter their mindset.

• Denmark considers heating as a welfare right just like clean water. The district heating sector is subject to political control, and public monopoly is often seen as better than private monopolies. • Although the price of district heating in Denmark is higher compared to the price in the Netherlands, the perception of the Danish consumers is that it is the most attractive way of heating. This is caused by the fact that existing dwellings have often an easy access and free of charge connection to the grid, and alternatives are more expensive. • Danish district heating companies are allowed to charge their real costs to their customers, where in the Netherlands prices are benchmarked against natural gas prices. • District heating projects in Denmark start with an objective that looks not only at the actual project to realize, but also at the future bigger, socio-economic picture, often with a municipality guarantee that allows competitive financing. The learnings from Denmark are food for thought in the Netherlands where, prior to the financial crisis, district heating projects were initiated when building new houses. During the recent financial crisis, a lot of these initiatives were killed due to the decrease in sales of new houses. Although the housing market in the Netherlands is booming at the moment, newly built houses currently have reduced their energy need, so district heating is a difficult business case for these kinds of projects. Since July 2018, there is, however, no longer an obligation to connect to the natural gas grid. This means that for new building projects, natural gas is no longer the default choice. This leads to a tendency towards lower system temperatures, such as the project “Stadsoevers” in the city of Roosendaal. Surplus heat from the local waste incineration plant is used for heating at a low temperature of 40 °C, in combination with heat pumps producing hot domestic water.

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Building project in Roosendaal, the Netherlands where low-temperature heating network uses the waste from the Suez waste disposal plant to heat the new homes.

The demand for correct water treatment is therefore rising. Desalination, degassing as well as correcting the pH value of the water in the district heating systems is the key, preferably using significantly fewer and less chemicals. The Danish District Heating Association has published recommendations on water treatment and corrosion prevention, which is one

The use of low temperature also appears in other projects, like waste heat from data centers in Amsterdam, the “Mijnwater” project in Heerlen, and projects with thermal energy from surface water (TEO) or thermal energy from wastewater (TEA). This shows that the Netherlands are not only looking to Denmark as an example, but also beyond, using lower temperature levels and innovative techniques. The low-temperature systems also have new system requirements to pay attention to new pipe materials, different material combinations and new connection types. They can all affect the quality of the water transported by the district energy. We can compare the transported water to the blood in a body; it is important for the health and condition of the system. It is crucial if you expect a system life span of over 50 years. The lowering of system temperatures causes new system conditions. The dissolved amount of oxygen can be more than three times as high in a district heating system at 40 °C compared to a system at 90 °C. In a system with a pressure of 3 bar and 40 °C, up to 18.6 mg/l oxygen can be dissolved in the water, whereas 0.02 mg/l is the limit. This can cause corrosion and thus water leakage, interruption of supply due to maintenance and a shorter life span of pipes etc. In other words, this heavily affects your OPEX. Lower system temperature will also increase bacteriological activity, which can cause biofilm and eventually lead to microbiologically influenced corrosion (MIC) such as pitting or reduction of the heat transfer in heat exchangers, thus reducing the system efficiency.

example of sharing knowledge on how to increase life span and minimize costs at networks and other key assets. EUROWATER has contributed to

the publication and translated the information into English, French and German, making the Danish knowledge available throughout Europe.

There is, however, a need for more knowledge and guidelines on low-temperature systems in relation to water treatment; something that has come to the attention of the Dutch District Heating Foundation “Warmtenetwerk” and needs to be elaborated. The main challenge for the near future lies in the seven million existing houses. For almost two million of them, district heating is seen as a feasible option. At the same time, surplus heat equivalent of nine million houses is thrown away in the Netherlands. This is a future challenge for the Dutch district heating industry.

Christian Broks, cbr.nl@eurowater.com For further information please contact:

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Photo: DEVO

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By Steen Schelle Jensen, Head of Product Management – Heat/Cooling Solutions, Kamstrup

“We chose the drive-by solution in 2010, based on the simplicity of the meter reading system. But in 2016, we did an analysis and found that it would be more efficient for us to move to fixed network reading,” says director of DEVO, René Prop. The main driver for DEVO’s upgrade was being able to drastically improve the efficiency of their meter reading as well as getting hourly values from all meters, which would significantly enhance the quality of their data analysis. “Quarterly readings meant we only discovered errors on a quarterly basis, which again meant that our workload was bunched together. With more frequent data we discover things faster, meaning we can act faster and fix minor issues before they turn into big problems.”

Smart metering is a key lever to support the expected growth of the Dutch district heating market. It can provide the data-based insight to ensure district heating remains both competitive and attractive to end users. Dutch energy company, DEVO, has improved their system efficiency as well as customer relations after upgrading to network reading with hourly values and is now looking to further digitalise their business with innovative analytics. In the coming years, district heating in the Netherlands is expected to see significant growth due to the plans to phase-out natural gas by 2050. A central challenge for utilities will therefore be to utilise and expand their networks as efficiently as possible while making sure district heating remains competitive and an attractive choice for Dutch end users at the same time. Smart metering is a fundamental part of the solution because, with frequent readings and the right tools, smart meter data can provide network transparency and be turned into actionable knowledge. However, for most utilities smart metering is a step- by-step journey. This makes it crucial that they choose a solution they can build on as their needs change and they achieve new insights along the way. Energy company Duurzame Energie Veenendaal-Oost (DEVO) did exactly that. FROM DRIVE-BY TO NETWORK READING DEVO’s first step was implementing smart heat meters and a simple drive-by solution in their new residential area with more than 1,000 houses.

DEVO quickly saw significant improvements on both their operations and customer relations.

IMPROVED SYSTEM EFFICIENCY The increased amount of meter data has given DEVO a better understanding of their system. “Hourly values give us much more insight into the flow in our system and based on that new knowledge we have already made a number of corrections that have improved our overall system efficiency,” says René Prop. One specific example of data-based value creation was DEVO’s detection of faulty or misadjusted valves in their combined heating and cooling system.

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NEEDS BEFORE TECHNOLOGY There was nothing coincidental about DEVO’s choice of communication technology. “We deliberately chose a solution that was dedicated to our needs and based on a proven technology – that was key for us. Smart city systems are not always based on proven technology and there are many different stakeholders involved. We don’t need to be able to steer traffic lights with our system. Our number one priority is our customers.” As DEVO upgraded to fixed network meter reading and the newest radio technology at the same time, they had to change the communication modules in their meters. Nevertheless, René Prop expects that the additional investment of going from basic to frequent and intelligent meter reading will have paid for itself in three years’ time: “We did a test with five to ten houses and everybody was happy with the result. We then had to change the communication modules but that was a 5-minute job and we had to go into the houses anyway. The whole area could be covered with just three antennas, so financially it was a no brainer for us.” ANALYTICS AND BEYOND By 2025, DEVO’s supply area is expected to hold 3,000 houses compared to 1,150 today and with more and more houses connected, knowing the exact network performance will only become increasingly relevant. DEVO is therefore preparing to continue their journey up the smart metering value chain with innovative analytics enabling data-driven optimisation in a more efficient and cost-effective way. René Prop sees great potential regarding future investments in the design and planning of DEVO’s distribution network: “With the information we have from the existing system, the engineering companies we work with will have a much better basis for designing our future system.” To him, the main benefit from digitalisation is clear: “More than anything else, digitalisation gives us speed. Instant knowledge. And the faster we learn, the better we can perform.” TODAY’S CHOICES DEFINE TOMORROW’S OPTIONS Knowing where you want to end up is one thing. Knowing how to get there is another. But rather than fixing your gaze on the destination, focus should always be on the next step. For district heating utilities about to invest in the next generation of metering systems, perhaps the most important thing is therefore to make sure their choices today will leave all doors open for them further down the road – while creating as much value as possible each step of the way. DEVO’s journey is a great example of that.

René Prop explains that frequent data also helps the company optimise their distribution: “We have been able to change several valves to optimise the pressure in different areas so that we produce heat more efficiently, but still deliver the same amount of heat to our customers.” ENHANCED END-USER ENGAGEMENT Frequent meter data has also enabled DEVO to become more proactive in how they approach their customers. “We monitor our system closely so whenever we spot irregularities we can quickly find the cause and notify our customers – often before they themselves realise something is wrong,” explains René Prop. Going forward, DEVO plans to focus even more on engaging their customers and consequently helping them save both energy and money: “We will be implementing an online system where our customers have access to their own data. This will give them insight into their consumption patterns, so they can take responsibility for changing them.” This effort directly addresses the challenge of convincing consumers to give up their free choice of supplier to be part of a collective system based on an efficient and sustainable energy source. “The environment is one thing, but in our experience, people also want to avoid the hassle of an individual heating solution and of course a key incentive is their wallets.”

Steen Schelle Jensen, ssj@kasmtrup.dk For further information please contact:

Photo: DEVO

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By Philip Heylen, Chairman of the board of ISVAG and Honorary Vice Mayor of the City of Antwerp

Photos: computer animated illustrations

The city of Antwerp, Belgium is located – as the crow flies – 618 kilometers north of Mont Blanc, the highest peak of the Alps. That is rather north of the Alps, indeed. Unlike Copenhagen however, Antwerp has absolutely no tradition of district heating. In fact, not a single town or village in the Flanders region has the experience or knowhow in district heating systems that Denmark has been accumulating over the past hundred years. The good news: the concept of district heating is finally gaining ground in Flanders too. So how come the momentum is building this time, albeit hesitant and a little late?

for the rollout of district heating. The fact that almost every house in our country is connected to the natural gas network and has its own individual heating system, makes the transition to a heat network all the more difficult. District heating dominates as a heating solution for households in Denmark, whereas Flanders is still very dependent on gas and other fossil fuels. Yet the benefits of district heating are most apparent in areas with high density energy demands… like Flanders. All the more reason to advocate sustainable use of surplus heat.

Denmark has over 30,000 kilometers of pipelines for district heating transport and distribution. The region of Flanders has a meagre 50 kilometres of district heating pipelines so far. Along the 64,000 kilometres of public roads in Flanders, more than 500,000 kilometers of cables and pipelines - or 8 meters of cables and pipelines per meter of road – have been buried. This is the logical consequence of the fact that most homes are connected to various utilities such as telephone, electricity, cable TV, water and natural gas. This provides enormous convenience, but at the same time forms an inhibiting factor

* Quoted at a recent district heating event.

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WHY IS THE MOMENTUM BUILDING NOW?

So, there is a real sense of urgency and public support for investing in sound and sustainable solutions. And district heating is without any doubt one of them: the smart use of surplus heat is both efficient in avoiding emissions and in offering the possibility of a long-term, sustained change in energy supply. That is why ISVAG, the intermunicipal waste management organisation in Antwerp, also wants to pick up the gauntlet. We treat the non-recyclable household waste of more than 1 million citizens in the region. Our plant has been operational since 1980 and for nearly two decades we have been generating electricity for more than 25,000 households. Thanks to the efforts of OVAM, the Flemish waste administration, we are world champions in prevention, waste sorting and recycling. But even in the transition to a circular economy, a considerable amount of non-recyclable residual waste will remain in the coming decades, which will need to be processed. We need a safe sink to remove polluted substances. The construction of a brand new high-tech waste-to-energy plant is creating the impetus for ISVAG to focus even more on energy efficiency. In the past, our motto was that we process waste with the least possible impact on the environment. Now we go a step further and we are even turning that motto around. We want to have the greatest possible impact! A positive impact. We want to make a significant contribution to ensuring a stable supply of energy, and allowing a substantial amount of emissions from numerous small private combustion plants in the region to disappear.

1. Ambitious goals: Like almost anywhere in Europe, both federal/regional governments and local authorities are committed to a climate-neutral policy and to reaching carbon goals by 2050. 2. Huge potential for reducing emissions in Flanders: The major cities in Flanders – Antwerp and Brussels – unfortunately also suffer the most from air pollution. Traffic jams have a huge impact, and like most old cities, Antwerp and Brussels have narrow streets that can get snarled up with trucks and cars. Older houses, often much less well or completely not insulated at all, and heated by oil, natural gas or even wood stoves, have a major impact on the air quality in and around our cities. 3. People are fed up with air pollution: Ordinary citizens are getting organized and are calling on their politicians to act, at the ballot box as well. Measures are being taken – the city center of Antwerp for example, is a low emission zone – yet it is already clear by now that fighting air pollution caused by traffic alone will not suffice in order to reach the climate-neutral goals by 2050. 4. Belgium is facing an unprecedented energy supply crisis: Belgium is facing a shortfall in electricity production capacity this winter. The risk of a scenario with possible ‘black-outs’ has never been higher. The government has made it clear that there is no way back. Our nuclear power plants have to disappear, and renewable energy is the only way forward. Flanders must and will meet its climate targets. But in a region like ours, with many days when the sun is barely visible, a lot of windless periods and, above all, little free space available, we will have to pull out all the stops.

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Initially, we are building a mini-heating network of around 1.6 km with which we supply heat to nearby companies (3 MW). We are starting construction of this network right now, based on our existing facility. In a second phase, when our new plant is operational, we want to roll out a larger network of 12 km in the direction of the city (> 50 MW). It is our intention that other heat sources can be linked to this and that the network itself can be interconnected with other new, yet to be realized, networks in the long term. In this way we are building, step by step, an extensive regional network, that will contribute significantly to a climate-neutral, smart city.

A growing energy consumption and an increasing demand for sustainable solutions call for Ramboll’s expertise in designing sustainable energy systems. Heat pump solutions enable the co-production of heating and cooling by reusing surplus heat from facilities like data centres, industries or wastewater treatments. This makes the technology a key element in cleaner and more efficient energy systems.

For further information

please contact:

Philip Heylen, Philip.heylen@isvag.be

TAKING ENERGY EFFICIENCY TO THE NEXT LEVEL (WHILE REDUCING CO2 EMISSIONS) See how we integrate technology in district energy systems: www.ramboll.com/district-energy

RAMBOLL HAS PROVIDED CONSULTING SERVICES TO MORE THAN 200 DISTRICT ENERGY SYSTEMS WORLDWIDE, RANGING FROM SMALL VILLAGE SCHEMES TO CITY-WIDE TRANSMISSION NETWORKS.

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By Guillaume Perrin, Responsible of DH & DC services, FNCCR – the Energy department France

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Biomass plant, France

District heating and cooling in France are going through a fine development, however, it is important to continue the effort and strengthen a multi-scale and multi-energy approach in order to ensure that district heating will have good interaction with electricity and gas networks. For the moment, there are in France 669 district heating networks representing 5,015 km, supplying 24,643 GWh of net thermal energy (2016). The French district heating sector is expected to grow in the near future given the ambitious target set in the 2015 Energy Transition Law and the multi-annual energy plan. Compared to 2012, district heating and cooling from renewable and recovered energy sources are assumed to increase by a five-fold by 2030.

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CHANGES IN THE PAST AND THE FUTURE The biggest change faced by the French district heating market during the past years may well be that whereas renewable energy accounted for 40 % ten years ago, the number has now changed to 52 %. This is quite an increase, and one to be rather proud of. In addition to this, plants are being converted (e.g. from coal) to biomass, etc. Another factor with an impact is a new territorial organization in public authorities: on one side the “syndicat d’énergie” (a grouping of rural cities and villages to act together), and on the other side the “metropole”, which is a grouping of a big city with the cities in the neighborhood that will act together in the development of district heating and cooling. A challenge in the future could be to find enough farm land for the solar panels. The eco quartiers are mainly located in districts that still have some lands, but also have a big advantage for solar sources - the new buildings only need low temperatures for heat, which is a big opportunity for solar energy and reused heat from the sanitation network, for instance. Besides, what is positive is that due to third generation district heating, district cooling can play an even bigger part and become more prominent in these districts. Thanks to the new territorial organization, both with the “metropole” and “syndicat d’énergie”, France can expect a growth of medium-sized district heating plants in the next years. Another change to anticipate is that in the future, municipalities will have a bigger role to play. This is due to two factors, namely the desire by the municipality to be engaged in the market, and the waiting of the citizens to be more involved in the projects of the territories. Traditionally, the situation for district heating in France is that around 20 % (in terms of energy delivered) is owned by the municipalities, mainly small district heating systems, and 80 % by partnerships by large energy companies, mainly the biggest district heating systems. However, this is about to change, as the 20 % will be doubled within the next 15 years.

Natural gas is still the main fuel source for district heating in France and tends to replace other fossil fuels with a higher carbon footprint, namely coal and oil. Renewables or recovered energy are used by a majority of heat networks (77 % in 2015). In the last ten years, there has been an increase of 1 % per year of the percentage of renewable energy in the national mix. Waste-to-energy is by far the main resource used but biomass plants are developing rapidly. Regarding district cooling, France has a total installed capacity of 719 MWth, representing one of the most extensive networks within Europe. District cooling is under constant development in France, as the cooling demand is growing, and special working groups are dealing with ways to qualify the renewable methods to produce cooling. There are huge differences between the different types of district heating in France. In terms of size, the areas are varying from as short as 300 meters with only few houses connected (around 10 houses and public facilities) to connections of 20-30 km with 60-80 buildings connected. The energy mix in French district heating is divided on incineration/waste with about 50 %, biomass 20 %, and the rest, industrial heat, geothermal, solar etc. Mostly present in dense urban areas, district heating and cooling are now supplied with 53 % of renewable energy and recovery. One source that is not used as much as it could or should is solar. However, an increase in the use of solar district heating in the future can be expected. In general, the French market is anticipating a growth in the sector, primarily concerning the medium-sized district heating systems located in eco quartiers (eco districts). In this sector, there is still land that can be used for the solar panel, and the energy demand is at a good level, in terms of low temperature, to be produced by solar energy.

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FRENCH DISTRICT HEATING IN NUMBERS A national survey lists 664 district heating plants and 20 district cooling plants, whose total installations cover 5,015 km. The use of renewable and recovery energy continues to grow. For the first time in 2015, the threshold exceeded 50% ; in 2016, it is close to 53%. District heating currently serves 2.32 million housing units (i.e. 24.6 TWh of heat delivered in 2016), mostly in urban dense areas. The residential sector consumes 57% of the heat delivered, while the tertiary sector (including utilities) consumes 35%.

Guillaume PERRIN, g.perrin@fnccr.asso.fr For further information please contact:

When looking at the market 30-50 years ahead, one of the biggest changes could be that the big cities will take on having more public services. More companies will have cities as direct investor and shareholders, and a strategy will be to invest (more) money in regional and local projects. The pace of development of district heating and cooling in France has had a good increase, but it is vital to continue the effort and strengthen a multi-scale and multi-energy approach, to ensure that district heating will have good interaction with electricity and gas networks.

How do you locate heat loss in your district? Imagine if you could use smart meter data to unlock the distribution network black box, locate leaks and heat loss and see what happens in the pipes below your feet. The solution is ready. It’s up to you to take the next step. kamstrup.com/heatintelligence

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By Jesper Boysen, Sales Director, BROEN

With 65.8 million citizens (13% of EU28) - and a climate requiring more than 2,200 heating degree days per year (DK comparison is above 3,100) - district energy should be a key parameter in the French energy mix, but below 5 million citizens or less than 10% of the French people have in fact district heating in residential homes. Heating and cooling take up 45% of the accumulated French energy consumption – and residential heating 62% of this. The demand for cooling is growing, but still at a lower level and concentrated around the service sector in larger cities (museums and public buildings etc.). Some 93% of the cooling demand derive from the service sector – only 4% residential and 3% industrial. With 42% of the heating and cooling need, natural gas is a key component in the French energy mix – oil and district heating come in second with each 12%. FRENCH ENERGY POLITICS According to Euroheat & Power, heat networks currently provide approximately 6% of France’s heat demand. However, the sector is expected to grow in the near future given the ambitious target set in the 2015 Energy Transition Law. Compared to 2012, district heating and cooling from renewable and recovered energy sources are assumed to increase by a five-fold by 2030. This is equal to an annual growth of 10% or grid extensions of 930 km on average. The growing French energy sector is subject to a wide range of regulations like tax and finance laws impacting the current and future opportunities in France, such as the subsidies from the heat fund, reduced VAT rate for energy grids with more than 50% renewables, thermal regulations and the zoning rules.

SUPPLYING TO THE FRENCH DISTRICT ENERGY MARKET With the given macroeconomic and political framework in France, it is important for foreign companies to have a local representation in France. It is critical to understand local legislation and have knowledge on subsidies - not to mention that up to date local project experience knowledge and contacts are necessary in order to succeed. The personal skills of course need to include technical, language and cultural skills. District energy is not new to France, but there will be lessons to learn when the market takes off as expected in near future. It is going to be very important to deliver from experienced suppliers with proven quality, logistics and value chains in place in order to avoid quality defiance on an expected steep growth curve.

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VALVE TECHNOLOGY IN FRENCH DISTRICT HEATING In the French district energy market, a core characteristic is a higher flow temperature than registered on other European markets and a demand for full bore valves with less pressure loss. Especially in a young market facing a rapid growth, the quality of the components is important in order to avoid accumulating quality issues – further stressed by the fact that no technology trends have yet become mainstream and no major standard demand specification has been settled. We have recorded a large demand for safety and security aspects, and also on the French market the most recent standards for underground valves are in request - like EN488:2015 and EHP003.

Installation of BROEN Ballomax® Trunnion ball valves in a hot underground water loop on the Paris IDF heat network, EN488:2015 EHP003.

Valve chamber around BROEN Ballomax® Trunnion ball valves for underground installation.

BROEN has for years kept an eye on the French market and seen a very high potential, but also a more modest development up until recent years. We now spur the first footprints of the expected solid and steep growth ahead. Some years ago, the French district energy market experienced declining development with a weak competition and small interest from European suppliers, but this now changes and the political initiatives from 2015 now seem to kick in. The major cities now all start investing in district heating and cooling, but especially in the Northern and Eastern regions of France, we see another kind of potential for synergies with networks that might, at a later point, get regionally connected. In general, the interest in district energy is quite substantial in France and the Danish heritage - with decades of accumulated experience from a Scandinavian climate - has given breed to quality products, which are in demand in France standing at the threshold of a steep growth in district energy. We believe our accumulated knowledge and presence in large district energy projects around the world will be a great advantage.

Flexible solution of operation of 3 underground BROEN Ballomax® Trunnion ball valves in a tight space.

THE POTENTIAL OF DISTRICT HEATING IN FRANCE Apart from the already mentioned political changes implemented already in 2015, a growing demand in France is gaining further momentum by the fact, that the country also needs to comply with environmental targets for CO2 emissions and meet already stated CO2 levels in 2020 and 2030. On a wider scope, the European Union in 2016 highlighted district heating as the backbone of the energy transition in general and also for this reason we see a tremendous potential in France in the immediate future - we are ready to meet this demand already now.

Jesper Boysen, jbo@broen.com For further information please contact:

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By Natalia Rey Aguirre, Key Account Manager, Heat/Cooling meters, Kamstrup

FOCUS EMERGING DH MARKETS

residences, which will be included in an energy rehabilitation that involves being connected to the new system. Almost 50 % of the new homes (606) will be social housing. Two biomass boilers will produce heat with an output of 1,400 kW each, which, thanks to a proper system operation, will produce more than 90 % of the consumed thermal energy. Two gas boilers will serve as backup. With this system, the generation of thermal energy will be optimised with a minimum fuel consumption. The system will be operated by a joint venture formed by Ferrovial Servicios, S.A. and Tecnocontrol Servicios, S.A. This innovative heating system would be of little use if the corresponding distribution system did not match its standard. In this case, the hot water will flow through 3 kilometres of buried, pre-insulated and linear pipeline connecting the point of production with each of the buildings that are connected to the system. The thermal conductivity of the pipes is λ=0.023 W/m-K, with a thickness of 30 mm and 60 mm. The outlet temperature of the hot water is 90 º C, and the inlet temperature is 70 º C. It is expected that the losses that may occur in the more than 3 kilometres of pipes do not reach 3 % of the total thermal energy transported.

In the city of San Sebastián in the beautiful north cost of Spain, a new neighbourhood has emerged from the renovation of the neighbourhood of Txomin. It is a new residential area on the banks of the Urumea river that seeks to be a benchmark in the field of energy efficiency. The neighbourhood is characterized by a deep respect for the environment, which is manifested in charging points for electric vehicles, public LED lighting and smart meters that at all times provide information about the energy consumption accumulated by the users. But the most remarkable aspect of this new residential area is the district heating system, which will lower prices for the residents as well as cause a substantial drop in the CO2-emissions. BIOMASS AS A SOURCE OF ENERGY The heating system is a biomass heating system, the largest in the Basque Country to date, promoted by the San Sebastián Municipality, which will maintain its ownership through its public company Fomento de San Sebastián, S.A. once in operation. The district heating of Txomin will provide heating and hot water to all residences in the new neighbourhood, both to the new residences, 874 in the first phase to which 359 will be added in the second phase, and to the existing 157

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The complete system of district heating has been executed and funded in three blocks: the thermal power plant itself; the heat network of the primary circuit; and the hydraulic installations of the buildings. The production system of the thermal energy needs its own building. The cost of the building and the system itself is about 3 million euros (3,000,000). Nearly 50 % of this amount has been contributed by the San Sebastián Municipality. The TBA (Temporary Business Association) in charge of the operating service has contributed more than one million euros (1,000,000) while six hundred thousand euros (600,000) have been funded by the European Union within the Replicate project. With regard to the heat network, the costs have been integrated within the urban project. The costs for the hydraulic installations in each of the buildings lie with the building owners of the installations, with a lower cost for each residence than for an installation with the traditional system. The energy rehabilitation of the existing residences as well as the connection of these to the Txomin district heating system lies within the Replicate project, and in addition to the Horizon 2020 financing, it relies on funding from the Department for Environment, Territorial Planning and Housing of the Basque Government.

Thermal power plant building. The boilers and the control room of the heat network are located in a special building, financed by the city council of San Sebastián, the TBA that will operate the system and the European Union through the REPLICATE project.

In each of the buildings of the new neighbourhood, a substation for exchange and dual control (2x100 %) will be installed, which will be connected by two pipes' distribution to the individual heat units of each dwelling. The equipment has been supplied by the company Indelcasa, while the energy meters are from Kamstrup. The communication of these meters with the control system allows the monitoring of the main data of each of the consumption points from the central. FINANCING OF THE PROJECT For years, efforts have been ongoing in the Basque Country to promote this type of sustainable and ecological projects, and, in particular, heat networks. The district heating of Txomin is the result of a commitment on the part of the municipality, co- funded by the European project Replicate within the Program H2020, contract number 691735 (SCC1 Smart Cities and Communities), which is led by Fomento de San Sebastián and which also involves the cities of Florence and Bristol. The main objective of this project is to build a model of a sustainable city to promote the transition to a smart city.

Thermal power plant. Heat is produced in two 1400 kW biomass boilers. These boilers will generate 85% of the thermal energy consumed in the new neighbourhood.

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Substation 450 kW. Each building has a substation that supplies hot water to all homes. Individual heat unit. Each house has a heat unit with instantaneous production of domestic hot water with a meter that allows monitoring the consumption of all users of the heat network.

FUNCTIONING OF THE SYSTEM People who move to the new neighbourhood of Txomin Enea will do so to eco-efficient homes, designed to respect the environment by reducing energy consumption. These residents also have access to their energy consumption in real time, since the data is updated every 5 minutes, and thanks to this information they will be able to improve their consumption patterns. For the consumers, part of the price is fixed, and another part is variable: the fixed price is 240 euros per year per service point plus a variable price according to the actual amount of consumed thermal energy. The variable part is divided into two: the price of the energy consumed in each residence (0.08050 euros/kWh) and the energy that is lost in the distribution grid (0.04901 euros/kWh), which shall be apportioned among all the consumers. The price for the energy not consumed is calculated to cover only the costs of the primary energy, encouraging all actors involved in the heat network to minimise losses. The prices will be reviewed once a year based on a series of variables related to the costs of the system, but with the guarantee from Fomento de San Sebastián that the end user price will never exceed the CPI (Consumer Price Index) year- on-year.

It is estimated that the economic savings for each of the residences will be approximately between the 10 % and 15 % of the price of a traditional centralized system and even more with an individual system. In addition, CO2 emissions will be reduced by more than 80 %.

THE NUMBERS:

- 2x1,400 kW biomass, 2x2,300 kW gas. - 1,390 residences with individual heat units. - 14 double substations for the buildings. - 10 %-15 % economic savings or the end user. - 80 % lower emissions.

For further information please contact:

Natalia Rey Aguirre, NRA@kamstrup.es

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FOCUS EMERGING DH MARKETS

By Donna Gartland, Director, Irish District Energy Association (IrDEA)

Ireland relies heavily on energy imports; around 67 % of all primary energy supply is imported, which is set to increase back up to the 90 % levels seen in 2006 as indigenous natural gas supplies decrease to 2022. Ireland is at the very end of the pipeline at the edge of Europe, with all imported natural gas coming through the UK. With Brexit looming, this is now an even bigger security of supply issue. Most buildings in Ireland’s cities and towns are connected to the natural gas grid and use natural gas for heating. Natural gas is a cheap source of heat, currently at approximately 6.5c/kWh for domestic and 4.8c/kWh for commercial customers (incl. all taxes), which makes it difficult for renewable fuels and low-carbon emerging technologies to compete. As well as low costs of alternative heat sources, there are many other barriers to implementing DH schemes in Ireland, including a lack of political buy-in and long-term policy strategy, supports for other low-carbon heat technologies and not for DH technologies, no local energy planning or national heat planning, and a lack of a secure customer base. At a national level, DH has never been considered as an option for heat supply in Ireland, and consequently it has never been factored into national energy models, related regulations and policy schemes. This has led to many current systems, such as building Energy Performance Certificates, failing to take proper account of the benefits of DH and the use of waste heat. All of these aspects combined leaves DH a risky market for investment and is why it has failed to be delivered through the private market to date.

Ireland has no history of large-scale district heating and most people in Ireland would not know what district heating is, but all this is about to change. The district heating sector in Ireland is gaining momentum, due to pressures from lobby groups to act on climate change and Ireland’s slow progress to meet EU targets. Both national and local level public sector stakeholders are now supporting the roll-out of pilot district heating schemes.

THE CURRENT SITUATION FOR DISTRICT HEATING IN IRELAND

While district heating and cooling systems are common in cities and towns across Europe, Ireland’s heating sector did not follow the same historical path. District heating (DH) currently contributes to less than 1 % of Ireland’s heat demand, levels which are similar only to much warmer European countries such Greece, Malta and Cyprus. As any Irish person will know, Ireland unfortunately does not enjoy the same warm weather as these Mediterranean countries, and on average 75 % of Irish household energy consumption is used for heating. Studies have shown that the average Dublin household requires the same heat annually as the average household in Copenhagen. While Ireland has a sufficient heat demand, it has a more distributed population than many other countries, and not many high-rise residential buildings. This is one of the reasons why historically DH has not been favoured over other individual building-based heating options. Individual oil and gas boilers are the most common technologies currently used for heating.

Plans for the new District Energy Centre in the South Dublin County Council Scheme, which will recycle waste heat from a large data centre to feed nearby public and private sector customers

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