1. District Heating and Cooling, including the integration of CHP INTERNATIONAL ENERGY AGENCY © 2002 Novem IEA District Heating and Cooling Programme Current Issues IEA District Heating and Cooling Programme Current Issues Dr Robin Wiltshire Chairman, IEA DHC programme

2. District Heating and Cooling, including the integration of CHP INTERNATIONAL ENERGY AGENCY © 2002 Novem IEA DHC: Current Big Issues Contribution to the IEA response to the request for help from G8 IEA DHC own internal review.

3. District Heating and Cooling, including the integration of CHP INTERNATIONAL ENERGY AGENCY © 2002 Novem DHC Systems are one of the most significant ways to: maximise the efficiency of the thermal electricity generation process by providing a means to use the waste heat share heating - and cooling - loads achieve fuel flexibility - opportunities for CHP, renewables and emergent technologies.

4. District Heating and Cooling, including the integration of CHP INTERNATIONAL ENERGY AGENCY © 2002 Novem DHC Systems are not yet fully recognised as one of the most significant ways to: maximise the efficiency of the thermal electricity generation process by providing a means to use the waste heat share heating - and cooling – loads achieve fuel flexibility - opportunities for CHP, renewables and emergent technologies.

5. District Heating and Cooling, including the integration of CHP INTERNATIONAL ENERGY AGENCY © 2002 Novem DHC Systems are not yet fully recognised… ‘IEA’s Alternative scenario shows… we could reduce consumption by 10% and CO 2 by 16% by 2030. End use efficiency would contribute 60%... The rest would be realised by better power generation… Yet we can do better’ Agreed!! We could also consider heat… This contributes about 70% of buildings related energy consumption.

6. District Heating and Cooling, including the integration of CHP INTERNATIONAL ENERGY AGENCY © 2002 Novem Globally… Annually district heating systems consume 11 – 12 EJ heat… … about 5% of total energy demand in industrial, residential, public, and commercial sectors Globally DHC/CHP systems reduce carbon emissions by 3 – 4 % Across Europe DHC/CHP saves estimated 1.3 – 1.4 EJ per annum.

7. District Heating and Cooling, including the integration of CHP INTERNATIONAL ENERGY AGENCY © 2002 Novem Networks to accommodate new technologies Integration of low carbon energy in UK District Heating schemes Aberdeen: CHP Llanwddyn: Biomass Sheffield: Energy from waste, CHP Slough: Biomass, CHP Southampton: Geothermal, CHP Woking: CHP, Fuel Cell, PV Pipework is ‘technology blind’: any locally available source of heat can be used

8. District Heating and Cooling, including the integration of CHP INTERNATIONAL ENERGY AGENCY © 2002 Novem DHC Systems can help fast growing economies Trend towards urbanisation offers a growing market: DHC best when HC demand density high DHC therefore has high level of applicability to fast growing economies with high energy intensity Energy security: DHC networks use locally available energy and heat that would otherwise be wasted.

9. District Heating and Cooling, including the integration of CHP INTERNATIONAL ENERGY AGENCY © 2002 Novem DHC networks support rapid integration of lower carbon fuels and new technologies. Pipes are ‘technology blind’: any locally available source of heat can be used All buildings on a network receive heat from any new item of plant installed at central energy centre.

10. District Heating and Cooling, including the integration of CHP INTERNATIONAL ENERGY AGENCY © 2002 Novem DHC - a technology that can handle peaks Heat: aggregate loads have smoother peaks Electricity: heat driven chillers reduce peak power demand

11. District Heating and Cooling, including the integration of CHP INTERNATIONAL ENERGY AGENCY © 2002 Novem One policy requirement A level playing field!

12. District Heating and Cooling, including the integration of CHP INTERNATIONAL ENERGY AGENCY © 2002 Novem Building Directive – new developments over 1000m 2 should consider DH, CHP, renewables CHP Directive Energy Services Directive High level policy is helpful… EU Policy background

13. District Heating and Cooling, including the integration of CHP INTERNATIONAL ENERGY AGENCY © 2002 Novem Required: a level playing field! Carbon trading should allow internalisation of benefits for DH. However, most DH schemes are >20MW so they will pay for their carbon emissions while single buildings will not. So the more efficient system is penalised! Access to the grid for CHP electricity should be under transparent and non- discriminatory terms. Small CHP particularly often suffers high connection cost and use of system prices and low price for surplus electricity sale. Efficient technology penalised! Energy and emissions taxes should not penalise environmentally beneficial technologies. Reduced VAT on CHP heat and on district heating pipes would help. There should be consistency in primary energy terms when comparing collective and building-bound technology. … but the benefits are lost in the details!

14. District Heating and Cooling, including the integration of CHP INTERNATIONAL ENERGY AGENCY © 2002 Novem Took place in June 2005 as part of Euroheat & Power seminar Results disseminated to conference audience Presentations from all 7 project leaders IEA DHC Recent Activities: Annex VII End-of-Annex Seminar

15. District Heating and Cooling, including the integration of CHP INTERNATIONAL ENERGY AGENCY © 2002 Novem Annex VII projects Strategies to manage heat losses technique and economy A comparison of distributed and large-scale CHP/DH Two-step decision and optimisation model for centralised or decentralised thermal storage in DHC systems Dynamic heat storage optimisation and demand side management How standards and insulation properties influence the competitiveness of district energy Improvement of operational temperature differences in district heating systems Biofouling and Microbiologically influenced corrosion in District Heating Networks. Reports available to participant countries; www.iea-dhc.org

16. District Heating and Cooling, including the integration of CHP INTERNATIONAL ENERGY AGENCY © 2002 Novem Annex VIII projects Cost benefits and long term behaviour of a new all plastic piping system Assessing the actual annual energy efficiency of building scale cooling systems New materials and constructions for improving the quality and lifetime off district heating pipes including joints – thermal, mechanical and environmental performance Improved cogeneration and heat utilisation in district heating networks.

17. District Heating and Cooling, including the integration of CHP INTERNATIONAL ENERGY AGENCY © 2002 Novem Annex VIII project selection 8 areas of interest defined Very uneven distribution of proposals received 44 proposals received – only 6 could be selected – many good proposals not selected Basis of selection was quality of projects as scored by all ten participant countries.

18. District Heating and Cooling, including the integration of CHP INTERNATIONAL ENERGY AGENCY © 2002 Novem Future project selection – possible approaches Project selections to cover all areas of interest Project teams overall to include all participant countries

19. District Heating and Cooling, including the integration of CHP INTERNATIONAL ENERGY AGENCY © 2002 Novem Future project selection – possible approaches Project selections to cover all areas of interest –More effort in defining the areas of interest (AOIs) –AOIs probably fewer in number –Maintain the ‘other areas’ category to cater for innovative ideas outside our AOI catchment –In the event of few and poor projects in some AOIs, effort to be made to find acceptable projects: possibilities include readvertising or seeking to improve proposals Project teams to include all participant countries –Current tendency for ‘cosy’ project partnerships that do not represent the circumstances of all participant countries –We may request project consortiums to expand.

20. District Heating and Cooling, including the integration of CHP INTERNATIONAL ENERGY AGENCY © 2002 Novem Future project selection – possible approaches Project selections to cover all areas of interest –More effort in defining the areas of interest (AOIs) –AOIs probably fewer in number –Maintain the ‘other areas’ category to cater for innovative ideas outside our AOI catchment –In the event of few and poor projects in some areas, possibilities include readvertising or seeking to improve proposals Project teams to include all participant countries –Current tendency for ‘cosy’ project partnerships that do not represent the circumstances of all participant countries –We may request a project consortium to expand.

21. District Heating and Cooling, including the integration of CHP INTERNATIONAL ENERGY AGENCY © 2002 Novem Future project work – possible approaches IEA DHC currently operates by competitive bidding: this is called 'cost sharing' The programme has delivered regular high quality and highly commended research work Committee wishes to retain this efficient operation However, another approach may also be accommodated: 'task sharing' projects work by defining a common theme first then seeking appropriate funding A possible task sharing project theme is currently under development “Low Exergy District Heating” - the committee has not yet decided.

22. District Heating and Cooling, including the integration of CHP INTERNATIONAL ENERGY AGENCY © 2002 Novem How could Euroheat & Power RTD help? Developing and defining areas of interest –attendance at IEA committee meetings (already happens) –helping to define new areas that require work (already happens) –countries are asked to select their favoured AOIs – so could EHP Must have relevance to all IEA DHC participant countries Promotional effort to expand the membership of IEA DHC Providing suggestions on groups that can work together Workshops: IEA DHC presence at events like this; possible joint workshops.

23. District Heating and Cooling, including the integration of CHP INTERNATIONAL ENERGY AGENCY © 2002 Novem Further information Find out more about IEA DHC at www.iea-dhc.org

24. District Heating and Cooling, including the integration of CHP INTERNATIONAL ENERGY AGENCY © 2002 Novem Join us! If your country is a not a member and would consider joining please contact me at: wiltshirer@bre.co.uk