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Influence of different technologies on dynamic pricing in district heating systems: Comparative case studies

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

Energy, 2018, vol. 153, issue C, 136-148

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 plants. 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 the total primary energy consumption and CO2 emissions in both case studies. In the best scenarios, the weighted average heat price decreased by 25.6% in Sønderborg and 6.6% in Espoo, respectively.

Keywords: District heating; Heat production; Dynamic pricing; Waste heat; Renewable heat; Combined heat and power (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:153:y:2018:i:c:p:136-148

DOI: 10.1016/j.energy.2018.04.028

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