District Heating Tariffs, Economic Optimisation and Local Strategies during Radical Technological Change

Søren Djørup, Karl Sperling, Steffen Nielsen, Poul Alborg Østergaard, Jakob Zinck Thellufsen, Peter Sorknæs, Henrik Lund and David Drysdale
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Søren Djørup: Department of Planning, Aalborg University, Rendsburggade 14, 9000 Aalborg, Denmark
Karl Sperling: Department of Planning, Aalborg University, Rendsburggade 14, 9000 Aalborg, Denmark
Steffen Nielsen: Department of Planning, Aalborg University, Rendsburggade 14, 9000 Aalborg, Denmark
Poul Alborg Østergaard: Department of Planning, Aalborg University, Rendsburggade 14, 9000 Aalborg, Denmark
Jakob Zinck Thellufsen: Department of Planning, Aalborg University, Rendsburggade 14, 9000 Aalborg, Denmark
Peter Sorknæs: Department of Planning, Aalborg University, Rendsburggade 14, 9000 Aalborg, Denmark
Henrik Lund: Department of Planning, Aalborg University, Rendsburggade 14, 9000 Aalborg, Denmark
David Drysdale: Department of Planning, Aalborg University, AC Meyers Vænge 15, 2450 Copenhagen, Denmark

Energies, 2020, vol. 13, issue 5, 1-15

Abstract: This paper addresses economic aspects of heat savings in the context of strategic heat planning. The analysis uses the city of Aalborg, Denmark, as a case where municipalisation through a recent acquisition of a coal-fired cogeneration of heat and power (CHP) plant has made an update of a municipal strategic energy plan necessary. Combining datasets on buildings and insulation techniques with economic methods, we investigate how the local district heating tariff can be adapted to improve the conditions for heat savings and support the transition to lower supply temperatures in line with the requirements of future fourth generation district heating systems. The paper concludes that implementing a fully variable heat tariff scheme improves the financial incentive for heat savings, while also making the system development less vulnerable to fluctuations and shortages in capital markets. The paper supplements existing literature on heat savings with novelty in its approach and in its systematic investigation of the interplay between tariff policies and interest rates.

Keywords: district heating; heat savings; strategic heat planning; economic optimisation; renewable energy (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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