Potential for dynamic pricing in district heating systems in Denmark and Finland

Dominik Franjo Dominković, Mikko Wahlroos, Sanna Syri, Allan Schrøder Pedersen

Research output: Contribution to conferenceAbstractScientificpeer-review

Abstract

District heating markets are often dominated by monopolies in both Denmark and Finland. The same companies, often owned by local municipalities, are usually operating both supplying plants and district heating networks, while the pricing mechanisms are rigid, often agreed upon for one year in advance. The mentioned ownership scheme may cause problems, when one tries to gain a third party access in order to deliver excess heat or heat from cheaper heating plant. In this paper two case studies were carried out to simulate the district heating systems based on dynamic pricing. Case studies were carried out for Sønderborg, Denmark and Espoo, Finland. The results showed that dynamic pricing fosters feeding the waste heat into the grid, as dynamic pricing reduced total primary energy consumption and CO2 emissions in both case studies. In the best scenarios, the average heat price decreased by 11.8% in Sønderborg and 15.4% in Espoo.
Original languageEnglish
Pages1-14
Number of pages14
Publication statusPublished - 2017
MoE publication typeNot Eligible
EventConference on Sustainable Development of Energy, Water and Environment Systems - Dubrovnik, Croatia
Duration: 4 Oct 20178 Oct 2017
Conference number: 12

Conference

ConferenceConference on Sustainable Development of Energy, Water and Environment Systems
Abbreviated titleSDEWES
CountryCroatia
CityDubrovnik
Period04/10/201708/10/2017

Keywords

  • District heating
  • Heat production
  • Dynamic pricing
  • Waste heat
  • Renewable heat
  • Combined heat and power

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