Learning 12: Do not allow direct fuel use in district heating boilers except for reserve load purposes. Peak load capacity and flexibility should be based on heat storage systems. Learning 13: Collect waste heat from power production (CHP), waste incineration (CHP), hydrogen production, carbon cap- ture and industrial processes, and any other renewable fuel production and use it in district heating networks. Learning 14: Heat sources for district heating should be low-temperature infrastructure (heat from wastewater treat- ment, freshwater systems, mines, underground rails, electricity transformers, gas compressors, etc.), waste heat sources, and ambient heat sources in combination with high-temperature intermittent sources like CHP, waste heat (non-constant high temperature) and heat from cooling. Learning 15: Establish electrical boilers in connection with CHP capacity when the number of annual hours with renewa- ble electric production capacity is above electricity demand of more than 500 – 1500 hours/year.
Commercial grid companies with a monopoly for transporting energy are an issue because a monopoly normally does not incentivize efficiency and deliver low-price service. Addition- ally, commercial companies with monopolies do not want to expand and develop the system if there are risks. They often try to get subsidies from the government if forced to develop and expand according to national objectives. Suppose com- mercial grid companies are regulated on prices by a govern- ment-appointed regulator. In that case, they will always try to get higher prices and costs approved if the government asks them to make developments according to Government objec- tives. In general, all infrastructure systems like railways, water supply, sewage systems, waste collecting, roads, highways, dig- ital networks, electricity grids, natural gas grids, district heating networks, etc., are essential for society and quality of life and Central and Local Governments should monitor, develop, and make joint planning for those infrastructure systems. Infrastructure companies deliver service to all and should therefore be publicly owned and non-profit. Security of sup- ply and low costs are essential for society and local revenue, which best can be achieved by local and public ownership of grid companies able to deliver on public objectives without subsidies. Grid companies should establish and provide capac- ity, including the security of supply. A model with commercial companies delivering the energy to publicly owned grids is a proven model in countries with low energy costs and prices. However, transparency is important regardless of the model for organising grid companies. Learning 19: Designate zones for the specific heating system – district heating, electricity, or gas (Natural gas, biomethane, or hydrogen) and be aware that district heating delivers addition- al energy conservation, flexibility, and low-cost heat in urban areas, which electricity and gas grids cannot. Learning 20: Energy grid companies should be transparent, non-profit, and publicly owned to ensure public objectives are met.
Learning 16: Require that large cooling systems produce cool- ing combined with heat.
Learning 17: Establish district heating transmission lines if the price difference between the two areas can finance invest- ments. Learning 18: Tariff systems in district heating systems should follow costs without disruption and cross-subsidizing pay- ments. Learnings organising infrastructure. Infrastructure for transporting energy in networks like the elec- tricity grid, natural gas grid, and district heating networks are natural monopolies. The costs for transporting energy in these networks depend on having a monopoly because it then can be optimised, benefitting all consumers. If, for example, a heat network is present in an area natural gas grid for individual supply is not needed, the electricity grid does not need to ex- pand to deliver capacity for heating, and everybody saves costs. Energy systems get expensive for consumers if the capacity for the same purpose is established in the same area. It will be cheaper for consumers if the type of heating system is decided for each area and zones are designated.
For further information please contact: johntang.jensen@beis.gov.uk
For further information please contact: John Tang Jensen, JohnTang.Jensen@beis.gov.uk
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