HOT|COOL NO. 4/2021 - "Going Greener"

NO. 3 / 2021 . 4 / 2021

INTERNATIONAL MAGAZINE ON DISTRICT HEATING AND COOLING

G ING GREENER

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Contents

FOCUS: GOING GREENER

24 28 31 19 4

COLUMN SUSTAINABLE DISTRICT HEATING - ENVIRONMENTAL, ECONOMIC, AND SOCIALLY RESPONSIBLE By Kamma Eilschou Holm

5 8 10 16 14

DISTRICT HEATING - THE KEY TO EFFICIENT RESOURCE-SAVING GREEN CONVERSION By Lars Gullev

PLANNING IS FAST-TRACKING TO SUCCES By Morten Jordt Duedahl and Frits Verheij

PRE-INSULATED PIPES WITH CASINGS OF EXTERNAL SOURCED RECYCLED HDPE By Peter Jorsal

PLANNING IS KEY - AND SEEK INSPIRATION FROM OTHERS By Hrvoje Klobucar and Johan Sølvhøj Heinesen

THERMAL DRONE SURVEY SAVES MONEY By Marianne A. O. Andersen

GOING TOWARDS A GREEN UKRAINIAN ENERGY SYSTEM By Mathilde Johanne Cordua and Ivan Zhuchenko

MEMBER COMPANY PROFILE: ABB By Frank Taaning Grundholm

QUALITY DATA WILL ENSURE GREEN TRANSITION IN THE ENERGY SECTOR By Jens Cornelius

SALASPILS SILTUMS - AND ITS PATH FROM FOSSIL FUELS TO SOLAR ENERGY By Roberts Kaķis

DBDH Stæhr Johansens Vej 38 DK-2000 Frederiksberg Phone +45 8893 9150

Editor-in-Chief: Lars Gullev, VEKS

Total circulation: 8,000 copies in 60 countries 4 times per year

Design og medieproduktion Kailow A/S, CSR-, miljø- og arbejdsmiljøcertificeret.

Coordinating Editor: Linda Bertelsen, DBDH lb@dbdh.dk

info@dbdh.dk www.dbdh.dk

ISSN 0904 9681

How can data help you deliver on the green agenda?

Heating and cooling account for 50% of Europe’s total energy consumption With the EU’s goal of improving energy efficiency with 32,5% by 2030, district heating utilities must produce, manage and distribute energy as efficiently as possible. The transparency created by smart metering solutions and frequent data is key to achieving this efficiency and deliver on the green agenda.

IT’S TIME TO KNOW

kamstrup.com/heat-solutions

SUSTAINABLE DISTRICT HEATING ENVIRONMENTAL, ECONOMIC, AND SOCIALLY RESPONSIBLE In the last months, we have seen rising energy prices all over Europe. The reasons behind this are plenty and divers, but result is that more and more citizens in Europe experience energy poverty. At the same time, the energy sector is facing the largest challenge ever; to reach net-zero greenhouse gas emissions in Europe by 2050 and to make European economies sustainable.

By Kamma Eilschou Holm, CEO at CTR

T his transformation does not only call for massive innova- tion, it also requires substantial long-term investments in new plants, infrastructure, etc. Given this, one could fear that the support for the European goal, both political and from the citizens, will fall apart because of the recently rising energy prices. In June 2021 the European Commission’s Group of Chief Sci- entific Advisors published a statement in response to the sig- nificant increase in energy prices in Europe. In their statement, the Advisors point out that accelerating the transition towards a low-carbon energy system is a solution that can lower energy prices in the long term. Accelerating the transition towards a low-carbon energy systemwould also stabilize energy prices in the long term and reduce Europe’s dependence on fossil fuel imports and further make the systemmore resilient to external threats. The Advisors stress also the need to achieve a fair and effective clean energy transition to mitigate the climate crisis, while protecting those who are in danger of suffering from en- ergy poverty. To achieve all this, Europe must put people at the center of energy policy and rally the whole of society behind this common goal. Reacting to high energy prices plays a piv- otal role and should involve immediate support for households at risk of energy poverty along with investments to increase the share of low-carbon energy production in the long term. The statement is in my opinion spot on. To succeed in making the green transformation, not only of the energy sector, but for the society as a whole, we must think sustainability rather than “just green”. By that I want to set focus at UNs Sustaina- ble Development Goals and the fact, that these 17 goals not only require an environmental development, they also require an economic and a socially responsible development. In other words, to achieve sustainability we must balance economic, environmental and social factors in equal harmony. In many ways district heating can be the answer if we move towards a more holistic approach. One of the great benefits of district heating is that a lot of different energy sources can be used. Over the last decade, in Denmark we have shifted

from using heat based on coal and natural gas to today, where our heat production mainly is based on sustainable biomass, waste energy, solar power and electricity from wind power. The development is not complete, but we do experience con- stant progress. This makes district heating in Denmark more robust against price fluctuations in different fuel markets. This autumn the four largest district heating companies in the cap- ital made a report “Future district heating in the capital area towards 2050”. The key message is that our district heating system is very robust and ready to play a much broader role both when we look at the producers and consumers to come. But the report also shows that this will only work if we succeed to maintain our competitiveness vis-á-vis individual solutions, and that makes the forthcoming investments in the sustaina- ble future a big issue, if that leads to higher heat prices. As infrastructure solutions by nature depends on maximizing utilization to increase return on invested capital, one of the ways to deal with increasing cost is to get new costumers. The report also shows, that even though we in our entire delivery area have a very high share of consumers there is still a poten- tial for new customers. Together we cover 25% of the Danish use of district heating, and district heating covers 64% of the Danish heat demand at all. To realize the additional potential, we need to be very clear about what we deliver. Not only, must we have a stable and reasonable price for all, we also need to show and document that our heat brings great comfort and is produced sustainably. This is what future customers want. Another way to deal with increasing cost is to optimize our infrastructure. The report shows for example that a low-tem- perature network is financially attractive even at a transmission level. This is an important steppingstone for 4 th generations dis- trict heating (4GDH) and more cost savings. Therefore, though there is no doubt about the challenges we face, district heating still gives a lot of good answers. We will definitely be an even more important part of the future than we have been of the past.

DISTRICT HEATING - the key to efficient, resource-saving green conversion

The green conversion of the district heating system in Copenhagen and the surrounding area has been underway for many years. Several players - as the district heating companies CTR, HOFOR, and VEKS - have driven the change in their supply areas.

By Lars Gullev, CEO at VEKS

I n this article, the primary focus will be on VEKS' develop- ment in the supply area from a production based on fossil fuels to green, sustainable heat production. Throughout its life, VEKS has saved resources and has thus constantly focused on reducing CO 2 emissions. Excess heat, cogeneration, waste heat, CO 2 -neutral district heating, climate-friendly heat - many concepts - but what characterizes VEKS' district heating?

Excess heat fromwaste incineration and cogeneration alone has resulted in an annual CO 2 reduction of approximately 500,000 tons compared to if the district heating companies had continued to use oil or natural gas for heating.

VEKS is a joint municipal partnership run as a non-profit company. VEKS comprises district heating production, transmission, and distribution in the western suburbs in the metropolitan area. Since its establishment in 1984, VEKS has had the primary purpose

Thus, fuel oil, coal, and natural gas, previously fueled in the local boilers, could be replaced by district heating from VEKS - a process in 1990. From 1990 to 2000, VEKS' efforts to reduce CO 2 emissions were, first, replacing fuel oil with light gas oil or natural gas at the central and reserve cargo power plants. Sec- ondly, VEKS' energy consultancy focused on lowering the re- turn temperature in the transmission network. A lower return temperature reduces heat loss and electricity consumption for pumping and ensures better efficiency at the Avedore power plant. Incidentally, 1990 is the year subsequently used as the reference year to calculate the CO 2 emissions from the district heating customers in VEKS' supply area. Sustainable biomass Block 2 of the Avedore Power Plant went into operation in 2001. The heat produced in the new block, based on natural gas and wood pellets, had a decisive influence on CO 2 emis- sions in the coming years.

of utilizing heat from the combined heat and power plants and surplus heat fromwaste incineration, larger industrial companies, etc. Cogeneration When VEKS "went into operation" on October 1, 1987, the purpose was to save resources. The together with the district heating company CTR, utilized the surplus heat from waste incineration and the large central combined heat and power plants - for VEKS, primarily the Avedore power plant. The first significant step was to connect the local district heating com- panies in VEKS' supply area to the transmission network.

When the Energy Agreement from 2012 legislatively opened, it was - for both Orsted and the owner of Avedore Power

"That we at VEKS have reached the goal of 70% CO 2 reduction already in 2020, you can be proud of -

CP Kelco CP Kelco has, in collaboration with VEKS, developed a project where surplus heat covers the heating needs of 2,200 house- holds - connected to Koge District Heating. The focus was initially on lowering the noise level from CP Kelcos cooling towers, whose heating fans made noise when letting the excess heat blow away. This connection changed a burdensome noise problem to a surplus heat project, where VEKS today utilizes the surplus heat in the local district heating system instead of it being sent directly into the blue air in a noisy way as before. The effect of the CP Kelco project consti- tuted approximately 1.5% of VEKS' total heat purchases and was officially inaugurated on April 9, 2018, by then Minister Lars Christian Lilleholt. VEKS gas engine In the summer of 2015, gas production started at Solrod Bio- gas A / S, which annually produces approximately six million cubic meters of biogas for VEKS' gas engine in Solrod. VEKS is in- volved in the project as a buyer - of the biogas. At Solrod heat- ing plant, VEKS has built a building for this purpose, which houses a gas engine that produces green electricity for the electricity grid via a generator. Simultaneously, the gas engine is converting the cooling water into district heating for the VEKS system.

proud to be part of a community that over the past 30 years has had a sustained focus on green conversion. We are on target - and we will do even better in the coming years", says Lars Gullev, CEO at VEKS.

In the same year, VEKS bought the biomass-fired CHP plant in Koge, covering more than 10% of VEKS’ total heating needs. Since 2016, Denmark’s largest CHP plant, Avedore Power Plant, has produced heat on both blocks based 100% on sus- tainable biomass and thus displaced the fossil fuels coal and natural gas.

Plant and VEKS - economically attractive to convert Block 1 of Avedore Power Plant from coal to sustainable biomass.

VEKS' customers have reached the goal With the Climate Agreement from June 2020, a large major- ity in the Danish parliament decided that in 2030 Denmark should reduce CO 2 emissions by 70% compared to 1990. And where does VEKS stand concerning this goal? VEKS' supply area has already reached the national goal of reducing CO 2 emissions by 70% by 2030. CO 2 emissions from a district heating customer in VEKS' supply area were 58.22 kg / GJ, in 1990 while in 2020, we had reduced it to 14 kg / GJ. These numbers correspond to a decrease of 75.9% since 1990. Thus, district heating customers in VEKS' supply area are already in line with the national targets, which only apply for 2030. If you are using natural gas, the discharge from your home is still 56.5 kg CO 2 / GJ. This number largely corresponds to the CO 2 emissions of a district heating customer in VEKS' supply area in 1990. By converting from natural gas to district heating, it is possible to overtake the national CO 2 reduction targets of 70% immediately. VEKS projects supporting the green transition VEKS is involved in several projects that contribute to the green transition - you save resources and thereby reduce CO 2 emis- sions.

The surplus heat project at CP Kelco alone has resulted in an annual CO 2 reduction of approximately 10,000 tons compared to if the customers had continued to use natural gas for heating.

“VEKS’ gas engine generates around 25,000 MWh (25 million kWh) of green electricity annually. The heat from the gas en- gine covers 1% of VEKS’ total heat sales”. More on the way Over the years, VEKS has "collected heat" where it made sense, and more is on the way. In recent years, we have gained experience from a collaborative project on large heat pumps, which also involves VEKS, at the same time as large-scale geothermal energy in the metropoli- tan area is also a high-priority development area. VEKS will, together with Hoje Taastrup District Heating, put a 70,000 m3 water pit heat storage into operation in 2021/2022. The project has received EUDP support, which is the supply to support development projects by the Danish Energy Agen- cy. The heat storage unit will utilize the district heating even

That the biomass conversion on Block 1 alone has resulted in an annual CO 2 reduction of approximately 100,000 tons compared to heat production on coal.

DH in the area of Copenhagen The areas marked with light blue indicate the transmission pipeline belonging to VEKS.

better, as you store the district heating when it is cheap to produce - conversely, you use the heat from the storage when it is expensive to produce. Therefore, the new warehouse will benefit the total electricity and heat production in the entire metropolitan area and thus also the green transition - mainly because you can reduce the local heat production based on fossil fuels, oil, or natural gas. A total of seven energy companies will benefit from the upcoming heat storage. At the end of 2020, VEKS collaborated with Carbon Capture Cluster Copenhagen (C4) with eight other energy companies - including Copenhagen / Malmo Port - to capture CO 2 from

The heat storage alone will result in an annual CO 2 reduction of up to 15,000 tons.

At the end of 2021, VEKS has initiated the first discussions with Orsted (owner of Avedore Power Plant) about the utilization of surplus heat from a potential future PtX plant, where the supply of CO 2 comes from a straw-fired boiler. All in all, the district heating system of the future in Copen­ hagen will use large heat pumps and surplus heat from waste energy plants, data centers, CO 2 capture, and PtX factories. An exciting future where district heating will be the back- bone of modern society focuses on efficiently using our energy resources.

several large energy plants in the Copenhagen area. VEKS' in- terest in this collaboration is the possibility of utilizing surplus heat from the "CO 2 capture process" in the district heating sys- tem. The partnership provides an opportunity to catch up to 3 million tons of CO 2 annually in 2030, part of which will be biogenic CO 2 . Throughout 2021, VEKS has been in dialogue with some data centers that want to establish server hotels in the Copenha- gen area with robust electricity infrastructure. The surplus heat from these data centers - large quantities - can be utilized in the district heating system.

For further information please contact: Lars Gullev, lg@veks.dk

A completely newway of doing articles in Hot Cool is podcasts. The theme in this magazine is ”Going Green,” To discuss that, we have invited Hrvoje Klobucar from the Croatian city Karlovac and Johan Sølvhøj Heinesen from Egedal DH Company north of Copenhagen in Denmark. Both are managing directors of their DH companies, and both have long experience in our industry. The two gentlemen discuss the challenges with going green, converting from natural gas to DH (also an interpretation of going green), ownership, and how to attract more customers to the companies. In the last part of the podcast, you will get their advice on managing the green transition in the best possible way. PLANNING IS KEY - and seek inspiration fromothers

By Hrvoje Klobucar, Karlovac DH managing director and Johan Sølvhøj Heinesen, Egedal DH managing director

The conclusion is... The situation in the two cities is quite different, and maybe also quite similar. The result is that we agree on what is essential for district heating companies to go green and remain com- petitive. The conclusion is to plan very well. Planning will keep your opportunities flexible, the prices as low as possible, and give access to several heat sources so one can optimally mix the heat supply, taking care of both costs and sustainability. A well- planned and well-constructed systemwill provide the DH com- pany more options to use a different fuel mix dependent on price fluctuations for each of them and prioritize green fuels. This approach can make your systemmore flexible from day to day and at the same time from decade to decade. Also, we agree that seeking inspiration from others is the way forward. Hrvoje Klobucar seeks inspiration from Denmark. But one should seek inspiration from everywhere possible. That is also what the Best Practice study survey (mentioned in this magazine) found through a pan-European study done with 8 DH companies. Getting new customers Winning customers is always a challenge due to a lack of knowledge of district heating and the perception that DH is too expensive. But bringing new customers on is also a part of going green, as you can convert them from a strict fossil heat source (natural gas) to something that is greener and has the option to develop even further in a green direction. In Egedal, they convince up to 70% of the potential customers in areas today served by gas to convert to district heating – well done! Here they do a lot of marketing to promote the offer

Listen to Johan from Egedal DH company north of Copenhagen and Hrvoje from Karlovac, Croatia, discuss how to make district heating greener. This podcast is also an excellent opportunity to learn about the differences between district heating in Denmark and Croatia.

through multiple channels – also Facebook - to reach out to as many customers as possible. Of course, today’s high gas prices play a positive role, but not as significant as one would expect; simplicity, sustainability, and easy comfort are also essential. It is also interesting to notice that the marketing done to convince customers is quite different in different areas, even in Denmark. The price is less critical in more affluent areas, where easiness and the renewable argument win over many people. Especially the easiness of getting connected, the option to pay a small amount every month instead of dealing with all the trouble of installing and maintaining your system (tasks that the DH company takes over) is a winning argument. In the area where Johan is now managing director of the DH company, price is a bit more critical. In Karlovac, they also aim to get new customers, but here the price is the main obstacle as natural gas prices, and the cost of other sources is meager, and therefore, it is hard to compete with them. Ownership – always interesting Hrvoje and Johan also touch upon the ownership models for the district heating companies they manage. In both cities, the municipality owns the DH company, and they both have sig- nificantly green agendas. But listen in and hear what they have to say.

FACTS ABOUT KARLOVAC DISTRICT HEATING It covers about 50% of the buildings in Karlovac and has approx. 7.800 customers. Today the production capaci- ty is around 87 MW. In Karlovac, district heating is only on from fall to spring - eight months per year. Domestic hot water is heated differently, so district heating is only for heating. Fur- ther, the heating is only on from 5 in the morning to 10 at night. This situation puts a lot of strain on the pipe system. To become greener, we hope to change tomore solar, geothermal, and of course, biomass. The way for- ward is to introduce more optimization activities, dig- italization, and an extensive pipe network renovation.

For further information please contact: Hrvoje Klobucar, hrvoje.klobucar@gradska-toplana.hr. Johan Sølvhøj Heinesen, jsh@egedalfjernvarme.dk Morten Jordt Duedahl, md@dbdh.dk

FACTS ABOUT EGEDAL DISTRICT HEATING Egedal has 800 customer – a number that will rapidly grow. Using 25 GWH primarilyfrom renewable sources – from woodchips, solar and heat pumps, and peak load from gas CHP. In 6 years, Egedal hopes to have 120GWh and be 100% fossil-free. That means a lot of new customers. Also, take a look at this recent video about Egedal District Heating – YouTube.

Going towards a green Ukrainian energy system

By: Mathilde Johanne Cordua, Climate Assistant and Ivan Zhuchenko, Project Manager, Ramboll

Ukraine aims to align its climate policy and legislation with the Paris Agreement and the European Green Deal by strengthening its cooperation with the EU on energy efficiency and substitutions for fossil fuels. However, the need for the substantial rehabilitation of Ukraine's buildings and energy infrastructure and the massive debt in the district heating sector is challenging Ukraine's green transition towards energy security, efficiency, and sustainability. Ramboll is a preferred partner in the energy sector in Ukraine, where they have supported rehabilitation projects for Ukraine's energy systems since 2010.

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Biofuel PP

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Solar PP

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0,2% 3,4% 4,7%

2,4% 0,2% 4,7%

0,2% 4,7%

Smal HPP

Large HPP

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Figure 1: Renewable’s goal in electricity balance according to State Agency on Energy Efficiency and Energy Saving of Ukraine

D uring the Soviet era, several countries of the former Sovi- et Union built district heating (DH) systems. In Ukraine, the state policy on the soviet-style DH sys- tems has remained more, or less the same since then, including dependency on fossil fuels, significant subsidies, in- efficiencies, and high excess generation capacity compared to systems in the Nordic region. The DH systems in Ukraine are aging, inefficient, and not meet- ing customer needs due to underinvestment and declined ser- vice quality. If you live in Ukraine, you will no doubt come across the many apartments where you cannot regulate the heat. The room temperature is either too warm or too cold during winter.

Opening the window becomes the only possibility to regulate temperature simply because the Ukrainian DH system and building installations are outdated. The excess capacity and large DH networks have further grown in Ukraine as customers disconnected from the DH networks, primarily due to the poor service quality, thus leaving the DH system ineffective and unbalanced. With weak salary growth and increasing prices, it became diffi- cult for citizens to paymore for heat, especially during Ukraine’s very harsh winter, where the temperature can drop to -26°C. As a result, the DH companies are faced with challenges when trying to increase heat prices, and recoverable tariffs have be- come more political rather than technical questions.

Replacement of DN 600 pre-insulated pipe in Zhytomyr, Ukraine

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2020

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Power Plant and CHP

Renewable Power Plants

Hydpo Power Plants

Figure 2 : Power generation sources

Rehabilitated gas boilers with low NOx emissions, Lutsk, Ukraine

The new 5 MW biofuel wood chips boiler house as a part of the Lutsk DH project

Even with subsidies from local authorities, Ukraine’s DH com- panies cannot keep up with essential maintenance invest- ments in the DH network, pay salaries, and instead build up significant debt. The debt of the DH companies to Ukraine’s largest oil and gas company Naftogaz amounted to UAH 34 billion (EUR 1.1 bil- lion) in 2020. The Ministry of Territories and Communities Development as- sessment states that the DH sector requires at least EUR 5.2 billion in investments to modernize the networks without con- sidering the costs of new networks or more comprehensive renovations. Besides, there is a need for investment to cover the upgrades in the electrical grid to support the heat. Thus, the total costs are likely much higher. Due to the inefficiencies of Ukraine’s DH sector leading to non- cost recovery for heat supply, the DH tariffs for the residential sector have been held artificially low to match affordability. Therefore, DH companies base their tariffs on affordability rath- er than the actual costs of DH. The vast cash flow gap leaves them unable to invest in the modernization of the DH systems. Energy transition targets and potential Ukraine has taken significant policy steps on the energy transi- tion pathway to develop energy efficiency measures and phase out fossil fuels in recent years.

In 2017, the Ukrainian government adopted the Energy Strate- gy 2035 as a roadmap to improve the energy effectiveness, se- curity, competitiveness, and sustainability of Ukraine’s energy system. The goal is to reach 25% of renewables in the balance of primary energy and electricity in 2035. Recently, Ramboll has contributed to conducting a technical, environmental, and financial viability assessment of Kyiv’s DH system rehabilitation. Kyiv is the capital of Ukraine, with a population of approx. 3 million. The city consumes over 2 billion cubic meters of natu- ral gas per year. The municipal-owned company Kyivteploen- ergo (KTE) operates the 2,800 km long DH system, the third largest in Europe and one of the largest in the world, supplying 12.7 million MWh of heat per year. The rehabilitation project is evaluated at a capital value of EUR 140 million. It includes a new cogeneration unit with sizeable thermal storage, a new heat recovery system, network replace- ment, SCADA installation, boiler house closure, and recon- struction. Ukrainian-Danish energy cooperation supports the long-term energy planning A new collaboration between The Nordic Environmental Fi- nance Corporation (NEFCO) and Danish Danida Sustainable Infrastructure Finance (DSIF) will support the modernization of parts of the DH infrastructure in Kremenchuk city.

The project will furthermore support a better control over en- ergy consumption through the installation of a new central remote-control system, and 25,000 citizens will benefit from affordable DH heating bills while at the same time gaining ac- cess to a more sustainable DH infrastructure. International support plays an important role. Ukraine needs immediate actions and financial support to mitigate the DH sector’s operational gaps and emergency maintenance. But due high cost of finance in Ukraine and the DH companies’ difficult economic situation, donor support for implementing energy efficiency measures is often the best or only opportunity for financing rehabilitation investments. Such donors include international financing institutions (IFI), such as the European Investments Bank (EIB), the World Bank Group, KfW, the international project and export finance bank, NEFCO, and the European Bank for Reconstruction and Devel- opment (EBRD). The new electricity market model and more international fi- nancing, with lower requirements for grantees of repayment to rehabilitate the DH system, together can make the green transition of the Ukrainian energy system possible.

The total investment for the project is EUR 12.7 million, com- prising a EUR 4.45 million grant from DSIF, financed by the Ministry of Foreign Affairs in Denmark, and a EUR 6 million loan from NEFCO. The city’s contribution is approx. EUR 2.25 million. Ramboll has contributed to the project by preparing the feasibility study for DSIF to ensure the loan and grant and outlining the technical, environmental, and financial evalua- tion of the project. Throughout the next two years, the project will be realized through the development of technical specifications, tender documents, contractor procurements, and construction su- pervision. Among the systemic improvements is an installation of a 4 MW biomass boiler with thermal storage, new gas boilers, replace- ment of DH pipes, and 122 new individual heat substations. This project will introduce two new concepts to Ukraine based on Danish experience. The rehabilitation of a whole city district will provide the opportunity to introduce variable flow supply driven by demand instead of the typical generation supply. Additionally, thermal storage is to be included, demonstrat- ing the benefits when optimizing biomass plant utilization. We expect the project to significantly reduce CO2 emissions by 10,500 tons while also demonstrating modern approaches utilized in Scandinavia.

For further information please contact: Mathilde Johanne Cordua, mjca@ramboll.com Ivan Zhuchenko, iz@ramboll.kiev.ua

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QUALITY DATA will ensure green transition in the energy sector

The future energy infrastructure puts high demands on the underlying IT architecture in the energy companies. The IT architecture must enable unhampered data exchange across older technologies, cloud services, meters, sensors, OT/IT systems, etc. The goal is a Smart Grid that transforms raw data into valuable knowledge on reducing our resource consumption as a society.

By Jens Cornelius, Senior Business Director at KMD

T he Danish energy sector is in the middle of a transforma- tion process. Sustainable energy sources such as wind and solar must account for a far greater share of Danish energy production in the future. In 2020, the Danish government and a broad parliamentary majority agreed on an ambitious climate accord to ensure a green energy sector and essential steps towards a greener industry. The agreement contains several concrete initiatives. Some of them are constructing the world's first energy islands totaling 5 GW – one in the North Sea and one in the Baltic Sea. The agreement also details investments in carbon capture (CC) and green fuels. The focus on sustainable energy sources calls for an adjustment of the electricity infrastructure to handle the fluctuations in en- ergy production caused by the changing wind and weather conditions. An intelligent infrastructure will help develop the electricity system and thereby create a reliable and efficient balance between production and consumption of electricity — a Smart Grid. Data is a cornerstone in the green transition The intelligent utilization of data will make the base of the fu- ture electricity system in Denmark. Meaning that the shift from primarily fossil-based energy production to 100% green ener- gy production – the target is coal, oil, and gas independence in 2050 – will be helped by automated processes and new tech- nology. The raw material in both automated processes and new technology is intelligent energy data.

The vision is an international network of public and private players that exchange data in a secure, lawful infrastructure. The network will allow Denmark always to have the energy needed - energy produced green and sustainably using wind, solar, biomass, and geothermic technology. The data-driven energy company At KMD, we work with the notion of becoming a data-driv- en company. In the energy sector, being data-driven means that you – from a technology standpoint – use the insights of the past to determine the investments and actions of the future. Most energy companies have, for instance, vast amounts of historical data on energy consumption in Den- mark. But these data are not activated due to, among oth- er things, technological silos, outdated platforms, and the lack of system interfaces. The data sits there – unorgan- ized and entirely too immense to be used meaningfully. The data-driven energy company allows itself to – via data inte- grations – draw meaning from the historical data to build the intelligence needed to carry out an efficient green transition of the sector in a focused and prioritized order. Avoid the Tetris structure I usually describe the system architecture of the past in ener- gy companies by using the popular computer game Tetris. In Tetris, the idea is to place the falling pieces correctly. If you are skilled and quick on your fingers, the pieces will fall into place layer by layer in the grid. But if you fail at long-term thinking, more and more unintended gaps will form – gaps that you are

On the other hand, the company also needs to reach for new opportunities in cloud technology, as this is one of the keys to modernizing the system portfolio and innovating the com- pany's core outputs. The intelligent customer journeys of the future will, for instance, not be created in old silo systems. They will be built in the cloud using many exciting tools to strength- en customer loyalty and ensure our reason to exist in the mar- ket. Data collection from every corner of the business The energy sector will have access to more and more infor- mation in the future. Therefore, energy companies cannot use the data integration principles of the past – for instance, Batch Data Integration or file-based integration – to build the data structure of tomorrow. Instead, they must work with real-time integrations and API-based integrations. Integrations require that the companies work with a roadmap for the desired in- tegrations not to get lost in feature requests from the business side but rather stick to a future-proof plan. Secondly, it requires access to the proper IT toolbox and the right IT craftsmen to realize the plan. In data integration projects, KMD always emphasizes the im- portance of bringing all energy data into play. There cannot be parts of the business where data sources or meters can- not deliver data to the platform that collects and aggregates data. The company's sweeping digitalization journey must be just that – sweeping. The value of data integration in an energy company lies in its contribution to the green transition, which becomes more precise when all the business is transparent through data access. Launchpad for new business models Creating the right data collection and data analysis capabilities in the system architecture can also work as a platform for uti- lizing new kinds of energy data from, for instance, IoT devices. In this way, energy companies can also use the digitization of the business to build entirely new business models. To stay in the 'lingo' of today, you could call these new initiatives Data Provisioning-as-a-Service or Data Sharing-as-a-Service. The op- portunities to establish new lines of business are many when you use the coupling between a company's local insight and a nationally covering Smart Grid to devise and develop new services.

stuck with until the game's logic at the end catches up with you, and the game is over.

The analogy fits the system architecture of energy companies. Just like in Tetris, energy companies that have been around for many years risk that their technical debt comes back to haunt them if they fail to build their system landscape in a way that allows for new pieces to fall into place and take part in a great- er architectural whole. One of my colleagues describes the energy sector's lack of data exchange across the application portfolio as "Accidental IT." Over time the system landscape in many energy compa- nies has grown wildly in a structure that today complicates the transversal exchange of energy data, which is a prerequisite to push the green transition. Overlapping functionality, data du- plication, and even dependency on End-of-Life technologies are well-known challenges in these companies.

Distributed energy systems with high complexity require an IT architecture that can handle the increased complexity.

Scarcity of expertise is a factor One of the challenges for energy companies is their access to the right IT professionals. The digitization wave rolls in every part of society and not just the energy sector. Most companies with a digital plan are searching high and low for employees to help them define the exemplary target architecture and carry out the IT investments of the future in a business-led tempo and sequence. It takes deep domain knowledge to recognize the organiza- tion of the energy sector and how it will evolve over the years to come. Combining deep domain knowledge and technical expertise is vital to create the right data integrations and strike a balance between on-prem and cloud because that is a del- icate balance. On the one hand, there is a need for protecting the historic investments in the on-prem-based system portfolio that com- prise the foundation of the core business. It may be true that the technologies and systems are out of date, but they still con- tain a lot of valuable information on both users and the energy consumption of the past.

Considering that 20% of energy consumers in Denmark (typ- ical companies with production facilities) account for 80% of the total energy consumption, there is a considerable market for information that can help this 'Top 20 list' of companies intelligently reduce their energy consumption. A sort of Insight-as-a-Service that can point to the most apparent areas of optimization through data analysis allowing the company to reduce its energy consumption, save money and help the carbon accounting. Data enrichment with OT/IT Lastly, the digitalization and data plan within the energy sector is naturally linked to the OT/IT relationship (OT = Operationel Technology and IT = Information Technology). If the energy companies are to harvest the benefits of the sweeping digitalization ultimately – even in the outermost parts of the company – it will also include the online access of machines, equipment, processes, and products. The tech- nologies that bridge OT and IT already exist. And in KMD, we have even built the necessary governance structure that makes the data transmission across OT and IT a secure and compliant discipline. The enrichment of, for instance, the SCADA systems with data from smart meter devices and vice versa is, in addition to the coupling of pumping stations, IoT devices, DataHub, etc., all part of the future's Smart Grid. The new possibilities to calcu- late and predict the energy balance in the grid have derived effects that will spread far into society and point in a green, sustainable direction.

Have a pleasant journey.

For further information please contact: Jens Cornelius, jci@kmd.dk

Solar collectors in action

Salaspils Siltums - and its path from fossil fuels to solar energy

The mantra at Salaspils Siltums Ltd. is that the best way to protect the future environment is by acting now. It is of utmost importance to actively do something about global climate changes every day at both national and company levels.

By Roberts Kaķis, Data analyst at Salaspils Siltums

T he primary purpose of “Salaspils Siltums” is to reduce the utility CO 2 footprint and become more independent of fossil fuels. Solar energy is clean – with no greenhouse gas emissions released into the atmosphere. From 100% fossil to 90% renewable Till 2012, Salaspils Siltums was purchasing heat from the adja- cent cogeneration plant running on natural gas, while the rest of the energy was produced using natural gas. In this way, all the thermal energy transmitted to the heating network was made using only fossil fuels. In 2012, however, the company integrated its first plant, a 7MW wood chip boiler producing thermal energy using renewable energy sources. To increase energy efficiency and the system’s overall effectiveness, in 2015, we decided to supplement the woodchip boiler with a 1.68 MW flue gas condenser. At that moment, these significant changes which Salaspils Siltums made left a remarkable pos- itive impact on the environment- in 2016, total CO 2 emissions decreased by 80% compared to 2011, and thermal energy pro- duced from renewable energy resources was 55%. Salaspils Siltums changed the system to control and moni- tor all devices used in heat production processes along with these changes. They also changed all heat pipelines with a to- tal length of more than 20 km —all these changes allowed to decrease heat losses by more than 20% compared to 2011. But in 2019, Salaspils Siltums took the next step towards green energy setting up a solar collector park with a total area of 21’672 m 2 , installing 1’720 solar collectors. Simultaneously, we built an 8’000 m 3 storage tank for thermal energy and in- stalled another 3 MW woodchip boiler with a 0,5 MW flue gas condenser to replace gas-produced energy during the winter months. In 2020 up to 90% of the annual thermal energy pro- duction was from renewable energy sources, including 20% solar energy. But will we in Latvia, where there are not so many sunny days, be able to produce heat with the sun? The most striking example of solar energy use at the Europe- an and global level is Denmark, where they installed the first

solar collectors in 1988. The Danish model also inspired Salaspils Siltums, and evaluating the climatic conditions in Latvia, which are very similar to Denmark, we concluded that we could also set good results in the use of such technologies. But to be sure that it was, in 2017, Salaspils Siltums installed 87 solar panels on the top of the company’s building roof. That was a pilot project to examine how productive and efficient solar energy technologies would work in Latvia conditions. The results were excellent, and now, solar panels are producing 23,5 MWh of electricity every year, which fully safeguards the needs of the administration. This experience served as an undisputed argument why it is justified to integrate solar collectors into the company’s production system. Now the solar collector field has worked for two whole years, and each year the performance is improving, mainly because of the improvement of the man- agement of the collector field. One of the primary skills that have improved is determining weather conditions and charac- teristics and predicting how they will change. This skill allows managing the processes in the solar collector field to make it perform as well as possible for each scenario. Forward-looking construction with a view to the future One of the most significant bottlenecks that this project has highlighted is that since this is the first large-scale so- lar project in Latvia that includes installing a solar collec- tor field, the local experts haven’t experienced how to car- ry out such tasks. For that reason, one of the conditions for the project applicants was that it had to include two parties - one part experienced in working with multiple similar projects and another consisting of local experts. The main aim of such conditions was to raise the compe- tence of local experts. Here in Latvia, we would have the representation that would ensure in-service servicing for all the systems built within the framework of this project. Before the pandemic, we organized several tours for all types of leads – pupils, students, local entrepreneurs, experts from abroad, etc. We are doing our best to teach all our knowledge to others interested in doing similar projects or who want to

As much as it was the merit of the solar collector field, it has no less value to the accumulation tank. It was possible to store the thermal energy from the wood chip boilers in the accumula- tion tank. It allowed us to produce the energy for the peak loads not to have to use other fuels. The total power of the wood chip boilers and flue gas condensers are a bit smaller than the peak load for the thermal energy of the city. The accumulation tank produces thermal energy in the time slots when the load is smaller and stores the difference between the produced ener- gy and the load. For example, at night, when the load is small, it is possible to make more energy than needed. The difference goes to the accumulation tank, and in the morning, when the load reaches its peak, the required difference, that wood chip boilers with flue gas condensers can’t cover, is taken from the accumulation tank, which is filled up during the night. An accumulation tank is an excellent piece of equipment, which is essential for solar thermal systems. But it also facil- itates work for other technologies, as in the above example. During periods of maintenance of boilers, it is possible to fill the storage tank and not use fossil fuels at the time of stopping. Cooperation between solar collectors and panels The latest project from November 2021 of implementing a 110-kW solar panel field will cover the need for electricity that needs the solar collector field. This will allow producing ther- mal energy next summer without using any external energy sources. Electricity is required to ensure the solar collectors’ function of circulation pumps.

understand how it works and its benefits. We are also trying to share production data at every opportunity so that everyone who wants to know and familiarize themselves with solar technologies can do it. Performance has been excellent. In the first full year, when the solar collector field was on the agenda, it produced in total 11’088 MWh, approximately 19% of the total annual thermal energy demand in Salaspils city. The rest was made by wood chip boilers (59%), flue gas con- densers (12%), and to cover the peaks – by natural gas (10%). After the first year, Salaspils Siltums experts researched how good the performance of the 1 m 2 solar collector is. The results were surprisingly good - 1 m 2 of solar collector annually pro- duces 511,6 kWh of thermal energy. The yearly sum of global irradiation is appr. 1150 kWh/m 2 , which means that the effi- ciency of the collectors was almost 45%. A significant amount of thermal energy from solar collectors is produced in 7 months of the year. From April to Septem- ber, solar collectors made at least 1’000 MWh each month, and in March, it was very close – 989 MWh. The most productive month was May, when 1824 MWh were produced. Compared to 2021, the overall produced energy has decreased – 10’023 MWh. The main reason is that the spring, August, and September were much colder than last year and cloudier. However, June and July were very sunny, and the collector field was quite productive – in June were 2’154 MWh produced, but in July were 2’200 MWh produced. So Salaspils Siltums produced all demanded thermal energy only from renewable energy resources from April till the mid- dle of August. It looks like no fossil fuels will be used to cover the demand of the city during autumn.

The whole project allowed a price reduction of thermal energy for the citizens of Salaspils city by 12,7%.

Now in writing, the heat price is 48,2 EUR/MWh, independent of the natural gas market fluctuations. Green production is not only environmentally friendly but also beneficial for thermal energy producers.

Production scheme

For further information please contact: Roberts Kaķis, roberts@salaspilssiltums.lv

PLANNING is fast-tracking to success We better get this right! One way is to understand what best practice is and how others have done. Best practice can inform us and provide guidance and inspiration to both newcomers and more experienced practitioners.

By Morten Jordt Duedahl, Business Development Manager at DBDH and Frits Verheij, Senior consultant at TNO

T his was acknowledged by EU Joint Research Centre ear- ly this year and they initiated a study of European Best Practices that interviewed 8 European district heating projects to identify what best practice was to them and them condense that to general best practices. How to best plan and construct a district heating network District heating networks are very large and not least long- term investments, they influence a lot of citizens directly through the heat bill and play a significant role in our future energy system. It requires a lot of courage to launch such a project as it will influence your city for many years to come. At the same time, district heating networks plays a major role in cities green transition towards a carbon zero society. Plan well and you will succeed Planning is always important. For district heating projects planning is a vital part of any project. A good and well-struc- tured planning process is themost essential step towards suc- cess. The study showed that the key to a successful district

Seek, and you shall find Another best practice that was mentioned by many was “seek inspiration and support from others.” The planning and con- struction of DH networks is, for many cities, not something that is everyday work. Reaching out to colleagues can give you a lot of knowledge, information, inspiration, and support - colleagues in your own country and from abroad. All inter- viewees mentioned the national network as an invaluable source, as this network can easier relate the specific project to local conditions. Antwerp and Salaspilz also mentioned their international relations as a very powerful inspiration as they found it challenging to find the relevant experience locally. What have we done to determine best practices? The Danish Board of District Heating (DBDH) and TNO from the Netherlands investigated the best practices in planning and construction of district heating. Specifically, they asked JRC for best practices for networks being built in an existing build environment. No greenfield areas were allowed in the study! And the projects had to be relatively new, and all built within the last five years.

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