How to Promote Local District Heat Production Through Real Estate Investments

Petri Penttinen*, Jussi Vimpari, Kaisa Kontu, Seppo Junnila

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

5 Citations (Scopus)
93 Downloads (Pure)


Future energy systems must be clean, efficient and profitable. Previous cases have shown that incorporating local production into district heating networks is often unprofitable due to high temperature levels. This article suggests a new way of determining areas in existing networks suitable for low temperature district heating, which makes investments by real estate owners into local production profitable. A simulation of district heating network is used together with an investment optimization model to analyse the spatial potential of local production. The results show that some local production was profitable at current temperature levels, but it could be increased significantly if supply temperatures are decreased. This was shown to decrease losses and emissions of the system. Spatial optimization models are needed to increase knowledge on the effects of local production and lower network temperatures in district heating networks. Furthermore, new pricing models for customers have to be developed.
Original languageEnglish
Article number1080343
Number of pages20
JournalJournal of Sustainable Development of Energy, Water and Environment Systems
Issue number2
Publication statusPublished - Jun 2021
MoE publication typeA1 Journal article-refereed


  • district heating
  • spatial analysis
  • smart energy system
  • heat pump
  • local production
  • investment optimization
  • distributed production


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