Europe as a model for DHC - Danfoss.com

issued by Danfoss District Heating
#3
How to Heat
low-energy #1
buildingS
Professor
svend svendsen
District heating wideSpread
repairS
by Danfoss
For
MoScow
HouSing
russia in a
time of change
Europe as a
model for DHC
Sabine
Froning

26
ACADEMY
Professor Svend Svendsen
sees district heating as
a natural solution for the
coming generation of
low-energy buildings.

CONTENTSFEBRUARY2009
06 News
Tapped for Europe’s largest city
expansion project, Danfoss also
expands its presence in Lithuania
and Poland. Big plans for the 2009
United Nations Climate Change
Conference in Copenhagen. European
Parliament climate directive includes
DHC. And more.
10 Q&A
Sabine Froning, the managing
director of Euroheat & Power,
provides an international
perspective on the growth of
DHC and CHP. Interest in these
technologies is gaining ground
in many countries and Europe
can serve as a model.
14
Discussion
Moscow building
renovations include
focus on energyefficient
heating
systems.
Solutions
Original district heating
systems reconnected in
Natural History Museum
and four other London
landmarks.
22
20 World
According to Robert
Thornton, district energy
has a long past and
a promising future in
the United States.
30 Online
A handy cyber-guide
to help you locate
useful energy-related
Internet sites.
agenda 3

4 agenda
NEw efficiencies for Old systems
Energy-efficient and nature-conscious
energy systems are of global importance.
The concept of simultaneously minimising
carbon emissions, managing individual
consumption, optimising comfort and
improving the overall efficiency of energy
generation, supply and usage is still a relatively
new one. The global community is
very diverse in terms of its commitment to
district heating (DH) as a sustainable solution
that can play a major role in future
energy systems. For this reason, sharing
knowledge and experience across borders
is extremely important. I am happy
that this edition of Agenda is committed
to making some headway on this front,
with case studies and contributions from
around the globe.
There are some great learning opportunities
available in sharing Russian DH
trends and examples. In comparison to
the UK and the United States, Russia has
a very large DH supply. Water-based DH
has a significant share of the domestic
heat supply – as much as 70% – and
most Russian cities were planned and
developed on the understanding that DH
would provide the most efficient energy
system. However, during political transition
throughout the nineties, the lack of
continual investment and maintenance of
these systems has lead to their demise.
Danfoss is in a very privileged position in
Russia today, in that the ethics and benefits
at the core of its solutions are totally in
line with the national government’s strategy
to re-inject 360 degree efficiency into
the country’s DH systems. Energy loss
in the distribution network is currently
as high as 50% in some areas. There is
also the potential of up to 30% savings to
be made within many buildings with the
supply and modernisation of substations,
controls, balancing valves and other components.
The latter is low-hanging fruit if
Russian DH utilities and authorities can
appreciate the return-on-investment that
can be achieved through energy savings
by such modernisation. Danfoss is committed
to endorsing this proposition, not
only in the supply of complete solutions
for major projects, but also in sharing its
knowledge with external engineers, designers
and decision makers at seminars
and other forums.
Transforming the operational efficiency
of Russian DH systems also requires a
certain amount of active responsibility
from the end user. In Russia, like many
countries around the world, DH-based
utilities for multi-dwelling accommodation
are measured and billed according
to occupied space, not individual consumption.
Therefore, the consumer has
a very low knowledge or appreciation
of their personal energy consumption –
thermostats are mainly understood only
as a comfort device and used very seldom.
It is no secret that potential cost
savings are a major motivator for consumers,
and making it a requirement to
measure and bill energy consumption on
an individual basis would encourage end
users to streamline their usage. Until the
real importance of all the dimensions of
energy efficiency is fully understood by
everyone, such cost-focused legislation
would make a real impact in Russia, and
in many other markets.
Mikhail Shapiro
General Manager
Danfoss District Heating, Russia
#3
#3, 2009. Danfoss A/S: Danfoss District Heating, 6430 Nordborg, Denmark, Tel +45 7488 2222, www.dh.danfoss.com.
issued by Danfoss District Heating
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The Danfoss
headquarter
in Nordborg
agenda 5

News Danfoss highlights
6 agenda
RECoRD TEnDER SucceSS In PolAnD
danfoss LPm is proud to report a tender victory of 312 substations
to support the modernisation of 130 km of district heating
network in the large Polish city of Krakow. it is part of an
ongoing €75.4 million project, for which Krakow district heating
company received €54.4 million in eu funding.
danfoss LPm is not a stranger to the project. following successful
realisation of two previous tenders in 2006 and 2007, it
has already delivered 127 substations, automatic controls and
heat exchangers. together with significant exchange of applica-
GRoWTH oF DAnFoSS
SolUTIonS in litHuania
the predominance of one-pipe centralised systems and the lack
of new-build system regulations have made it difficult to mobilize
energy efficiency in Lithuania.
danfoss works closely with local designers, installers and investors
to actively encourage the uptake of more energy-efficient
solutions in this post-soviet territory, and is proud to report mea-
surable success.
in 2005, a pilot scheme in the gandraliskes district of Klaipeda
installed danfoss substations, type akva Lux tdP in 88 domestic
flats. the benefit of a 44% saving in heating tariffs helped make
the advantages of a decentralised system tangible to residents
and stakeholders, and sparked a wave of similar projects across
the country.
over the last two years, 700 danfoss substations, type akva Lux
tdP and akva Lux tdP-f have been installed in the city of Klaipeda,
as well as being implemented into all new-builds in the city of
Panevezys. the same solutions will be used for a new multi-family
house project that will provide 1,742 flats for 6,000 gandraliskes
residents. it has also been confirmed that danfoss substations,
termix vmtd types, will be used for a major multi-family house
renovation initiative in the city of Kaunas later this year.
tion know-how, they have helped transform the efficiency and
comfort of the energy supply to many of the city’s residents and
workforce.
however, the recent 312-unit substation order represents the
company’s biggest to date, and strengthens danfoss’ presence
in the region. so far, 188 units have been delivered out of the
danfoss LPm factory in tuchom, Poland. the remaining 124
substations are scheduled for production, assembly and delivery
in the first half of 2009.

DAnFoSS PREPARES
For cop 15
the danish capital will host the united nations climate change
conference in december 2009, and danfoss preparations are
underway to be an active supporter and presence.
firstly, danfoss is a main sponsor of the danish climate consortium,
a joint venture between the national ministry of economic
and Business affairs and leading business organisations that will
have a major voice at the event. the danish climate consortium
is involved in a series of events and exhibition arrangements
around coP 15 that will provide opportunities to interact with
danish technologies that are having a positive impact on climate
change, including solutions provided by the danfoss group.
danfoss district heating and White Paper partners (grundfos,
Logstor and coWi) have also entered arrangements for a
joint exhibition booth at the Bright green eXPo in Parken, 12th-
13th december (www.brightgreen.dk). it is an event organised
by the confederation of danish industry (di) to bridge the two
weeks of coP 15. the joint booth is an extension of the collabo-
Danfoss highlights News
DHC breaktHrougH
In THE EURoPEAn PARlIAMEnT
the joint dhc industry, including the national and european dhc
associations plus leading industry companies, have worked intensively
during 2008 to influence the contents of the eu directive for
the promotion of renewable energy sources (res). it is a pleasure to
report that the collaborative efforts to ensure that district heating and
cooling (dhc), combined heat and power (chP) and efficient heat
pump technology be featured as key res in the eu climate agreement
have paid dividends.
a key paragraph in the approved directive states: “member states
shall recommend to all actors, in particular local and regional administrative
bodies, to ensure equipment and systems are installed for the
use of heating, cooling and electricity from renewable sources and for
district heating and cooling when planning, designing, building and
refurbishing industrial or residential areas.”
this represents a milestone in elevating the status of dhc to that of
wind and solar energy options, and highlights it as an important element
of combined sustainable energy solutions. the endorsement is
also key to realizing the ambitious targets set for 2020, which include a
20% reduction of co2 compared to 1990 and 20% improved energy
efficiency, of which 20% should be covered by res.
ration initiated by the 2007 district heating/cooling White Paper,
available to download from www.dh.danfoss.com/agenda.
in the coming months, danfoss will continue to explore further
opportunities to provide support for coP 15, and looks forward
to meeting industry colleagues and stakeholders at events and
forums leading to this important world event in copenhagen.
agenda 7

News Danfoss highlights
8 agenda
luxury
coMFort
FoR TURKISH
ToWERS
the selenium twins are two
luxurious 34-storey residential
blocks located in fulya, istanbul.
they reside on a 29,000 m2 area
of land owned by Besiktas JK
football club that includes a
ten-storey hospital building,
21-storey office building and
16,000 m2 supermarket.
asçıoglu construction company
had high demands for the
selenium twins’ energy system.
it selected danfoss to equip the
facility with a solution that boasts
low operational and investment
costs, and delivers consistent
high comfort. a total of 222
danfoss substations – type
termix vmtd-f with heatmeters,
motorized valves, balancing
valves and pressure reducers –
power the supply of heat and hot
water to the domestic towers.
the buildings are installed with
perfect remote meter reading
technology, and use m-bus
data transmission protocol to
obtain data from danfoss heat-
meters and watermeters in order
to generate a combined utility
bill for residents. Based on the
success of the selenium twins
project, asçıoglu construction
company has committed to
replicate the same solution for
two other projects – selenium
Panorama and selenium city. this
will equate to an additional supply
of approximately 500 danfoss
termix vmtd-f substations.

DAnFoSS EqUIPS
europe’S largeSt city
ExPAnSIon PRojECT
danfoss has been selected to supply substations, water heaters
and domestic hot water systems to equip the majority of
the central heating connections in hamburg’s new quarter –
hafencity.
situated in the heart of hamburg, hafencity will transform a
historic harbour area into a new live-and-work vicinity that will
grow the city centre by a massive 40%.
the two million m2 project includes commercial new-builds
that will provide 40,000 work places, and 5,500 new domestic
premises that will house up to 12,000 citizens.
the energy policy for hafencity is driven by sustainable principles,
and a combination of district heating, decentralized
block heating plants, solar power and fuel cells will service
the area.
hafencity is a world-class example of carbon-conscious
urban growth, and danfoss is delighted that its solutions will
play an integral part in this seminal city expansion project.
Danfoss highlights News
FlAT SUbSTATIonS AnD
DECEnTRAlIzED SySTEMS
Made eaSy
in collaboration with Zagreb district heating company, the heating
team from danfoss croatia announce the launch of a new
practical handbook on flat stations and decentralized heating
systems.
the publication is part of an ongoing commitment to provide
quality information, documentation and knowledge to encourage
best practice standards for residential heating systems in
the district heating sector.
the handbook is to be an essential reference for consultants
recommending, planning and installing new heating systems, or
modernizing existing installations. content includes comprehensive
answers to faQs, a series of tables to simplify dimensioning
and tips to guide easier installation.
the handbook is currently available in croatian. for further
information, please contact the danfoss office in Zagreb (email:
danfoss.hr@danfoss.com).
agenda 9

Spreading
the word
AboUT DISTRICT HEATInG AnD CoolInG
Sabine Froning is the managing director of Euroheat & Power (EHP),
the international association for district heating and cooling, Brussels.
Although her organization’s main focus is promoting district
heating/cooling (DHC) and combined heat and power (CHP) within
the EU, interest in these technologies is gaining ground in many countries.
She discusses how Europe can serve as a model for implementing
technologies worldwide that can both benefit local economies and provide
answers to energy use and climate change questions that affect us all.
TExT Rob HolDER, PHoToS CHRISTIAn AlSInG
Since we’re focusing today on how
Europe might help drive development
of district heating in other regions of
the world, let’s start with a somewhat
provocative question: If district heating
is such a good idea, why isn’t it
more widespread?
Well, as a colleague of mine likes to say,
one of the reasons district heating isn’t
more widespread is that it has been sort
of a well-kept secret. Even in countries
like Denmark, where district heating is
well established, not everyone is aware of
its benefits, as the sector hasn’t really advertised
its advantages very much in the
past. beyond simple lack of awareness,
there’s even active prejudice against the
idea of district heating in many areas. I’m
thinking now particularly of eastern European
countries where district heating actually
is widespread. In these countries, as
in Russia, district heating was an integral
part of the old Soviet infrastructure. but
people have memories of very inefficient
application of district heating. They remember
a kind of “all on” or “all off” heating,
in which the only way to regulate heat
in a room was to open or close a window.
They don’t have an idea of modern district
heating as we know it, which can be easily
Sabine Froning Q&A
controlled by individuals or households.
The technology was not up to date, and
the infrastructure was in bad shape. An
International Energy Agency (IEA) study
shows that refurbishing the Russian district
heating system could save 60 billion
cubic meters of natural gas a year, which
basically corresponds to the total gas
consumption of Germany. In the new EU
member states, a lot of progress has already
been made over the past decade,
but there’s still a huge need for further
investments. So even in areas where
district heating already exists, there’s
plenty of work to be done.
agenda 11

Q&A Sabine Froning
12 agenda
“It’s becoming widely understood that we can’t afford to
continue using more and more fossil fuels, both for environmental
reasons and simply because there are limited resources.
district heating and cooling must inevitably be part of the solution
worldwide because it brings efficiency to the whole energy system.”
What is the level of interest in other
regions of the world -– outside the
EU – and what drives that interest?
We find there’s tremendous interest in
district heating in other countries – not
just on this continent but also in countries
such as China, South Korea and
japan, where growth rates have been
very good over the past ten years.
Interest is driven in large part by concern
over security of gas supplies and climate
change. We recently hosted a large de-
legation from representatives of district
heating companies in japan, and
they were chiefly interested in how we
handle the environmental question.
These two issues – environmental
concerns and fuel suply security – are
the main drivers behind the growth of
district heating in most countries.
The fundamental idea behind modern
district heating is to make use of heat
that would otherwise be wasted, for
example when electricity is generated
or waste is burned – which are fundamental
urban functions everywhere. All
kind of renewable sources like biomass,
geothermal, solar thermal and others
can also contribute. I think that one
reason the northern European countries
have taken the lead in these areas is that
the tradition of collective thinking and
decision-making – which district heating
demands – is rooted in the thinking here.
District heating used to be not so widespread
in the UK, for example, where
everything is more individualized. but
today there is a growing awareness that
energy use needs to be more efficient
in all parts of the world. It’s becoming
widely understood that we can’t afford
to continue using more and more fossil
fuels, both for environmental reasons
and simply because there are limited
resources. District heating must inevitably
be part of the solution worldwide
because it brings efficiency to the whole
energy system.
Are you optimistic about progress in the
near future, and what are some of the
obstacles that district heating faces?
In fact I am quite optimistic – not least
because the IEA has launched an inter-
national initiative on DHC as well as
combined heat and power (CHP). Even
more positive, is the fact that the IEA was
acting in response to a mandate from the
G8 to make recommendations on how to
integrate these energy measures.
The most basic obstacle to development
is that district heating is a longterm
investment, and free markets can
encourage short-term focus. The current
financial crisis might also make it
more difficult to obtain loans for larger
projects. nevertheless, it would be
short-sighted to slow down investment
in energy efficiency, even in countries
suffering the tightest financial pinch. In
the long run, it’s a fact that replacing primary
fuel purchases with domestic district
heating and cooling and CHP infra-
structure leads to a stronger domestic
economy and lower fuel imports. of
course, from country to country there
are various other obstacles to district
heating growth. For example in countries
where the government has a stake in oil
and gas companies, there can be an unbalanced
subsidisation of oil and gas.
The biggest universal political barrier I see
is fragmentation of energy policy. Policies
tend to be focused narrowly on a single
segment of the energy landscape, targeting
demand pressures, for example, but
ignoring the supply sector, or on renew-
ables but not on energy efficiency. This
also often makes it hard to find someone

who is politically responsible for securing
coherence and system optimisation
from a primary energy perspective.
Ideally countries should have a more
horizontal, integrated political structure
for dealing with energy questions. With a
more comprehensive political approach,
district heating and cooling will emerge
as obvious solutions.
Are there particular initiatives
your organization is taking to spread
the idea of district heat to regions
beyond the EU countries?
We have only five people on staff in our
office, so our focus is largely on the EU.
Especially now, the enormous acceleration
of energy policy focus in brussels
requires all our attention. but we
do see the value of wider international
collaboration. In fact, as I mentioned
earlier, we have active contact with our
non-EU associate members – typically
representatives of district heating companies
– in Russia, South Korea and
japan. We’re able to help them answer
questions such as how Europe structures
a balance between energy and
environmental quality and how district
heating is treated under the emissions
trading scheme. They can use what’s
happening in the EU as a model to
Sabine Froning Q&A
help shape their own decision-making
and lobbying work. I should also point
out that the EU has a strong interest in
DHC and CHP growth in other areas
because of our ability to export these
technologies – if the EU wants to be
seen as a leader in energy technology,
DH has to be part of the mix.
As for specific initiatives, just ahead
of the 2009 United nations Climate
Change Conference in Copenhagen
we’re organizing a district heating
summit “The Road to Copenhagen”. It
will take place on 3 november and will
include policy makers from all levels,
national to municipal, from all around
the world. We in EHP are also involved
in a similar congress next May in Venice,
which will also attract worldwide
participants, and which will include
awards for the most innovative district
heating projects submitted by municipalities.
both inside and outside the
EU, we’re making an effort to emphasize
the big message: that in the long
term district heating – and cooling –
offers the prospect of zero-carbon
heat supply. District heating already
provides low-carbon heat supply, but
in view of the huge amount of waste
heat now available we should ask ourselves
why it’s necessary to burn any
fuel specifically for heating and cooling.
A strong proactive district heating
policy – together with further technological
advances and in combination
with renewable energy policies for
areas where district heating can’t be
made available – holds the very real
possibility of phasing out oil and gas
heating. When you raise this possibility,
people listen.
agenda 13

DIsCUssION Konstantin Gennadievich belchatov
14 agenda
Moscow in a
time of change
A move to assign the property rights of
residential heating units to their inhabitants
is spurring huge changes in the Russian
housing market. This in turn is providing
new impetus to the development of the
Russian heating supply market. Moscow,
the capital city, is one of the largest national
“building sites”. Konstantin Gennadievich
Belchatov, deputy director of the
Office of Capital Repairs and Construction
of the Department of Housing and
Community Services of Moscow (UKRiS),
answers our questions about the
programme and its prospects.
TExT DMITRIy SHKolnIKoV, Rob HolDER
PHoToS MASHKoV yURI,
CoURTESy oF GUP UKRIS
AnD DAnFoSS RUSSIA

DIsCUssION Konstantin Gennadievich belchatov
16 agenda
“In the Central Administrative district
of Moscow only 5-6 buildings a year –
and sometimes fewer – were repaired.
The same kind of work is being
conducted today, but, as I mentioned
earlier, its volume is quite different,
as is the management system required
for effective coordination.“
The current programme of complex capital repairs in
Moscow is unprecedented in its size. How do these
measures compare with previous efforts, undertaken
before 2008, in both type and volume of work?
We have a good saying: “moscow wasn’t built in a day”.
actually, in such a big city there are always structures in
need of repair. But now a complex modernization plan has
been passed that affects all housing stock up to 2014. it is
connected primarily to the reform of housing and community
dwellings being undertaken throughout the country.
Before being signed over to their owners, buildings have
to be put in good condition. of course, capital repairs of
residential buildings were also conducted before 2008. the
moscow government programme of scheduled preventive
maintenance was carried out within the city and included
the replacement of heating systems, hot and cold water
supply, and other repairs. Both the scale and financing of
that work was several times smaller than what’s being undertaken
today. for example, in the central administrative
district of moscow only 5-6 buildings a year – and sometimes
fewer – were repaired.
the same kind of work is being conducted today, but, as
i mentioned earlier, its volume is quite different, as is the
management system required for effective coordination.
in fact, an entirely new administrative system was established
under the direction of Petr Biryukov, the first deputy
mayor. since the beginning of 2008, there have already
been repairs to 63 residential buildings with a total area
of 508.9 sq. meters. repairs were also made to 92 blocks
of flats, including facades with outer wall insulation, replacement
of window and balcony pulleys and glazing of
balconies. on the whole, capital repairs were conducted in
1,697 residential buildings in the city.
What are the factors influencing the progress of the
repair work? Are there specific difficulties?
the most important factors are the experience of the contractors
and the level of their staff qualifications. i mean
not only technical background but also teamwork and experience.
in any one building, success depends mostly on
the contractor’s skill in finding a common language with
the building’s inhabitants. if they understand and agree
with each other, the work will go smoothly. as the city consists
of many individual addresses, this is the keystone

Konstantin
Gennadievich Belchatov
A 1991 graduate of Kaliningrad Technical College,
Konstantin Gennadievich Belchatov lives in Pushkino,
Moscow Region. In 1994, after having served in the army,
he entered Moscow State Forest University and obtained an
engineering degree. In 2004 Mr. Belchatov was appointed
to the post of lead engineer for support of the municipal
infrastructure in the Central Administrative District of
Moscow. In 2005 he was transferred to the Moscow Board
of Capital Repairs and Construction (GUP UKRiS), taking the
position of deputy chief manager in the Engineering Supervision
Department. In March 2008, he was appointed to the
post of acting director of GUP UKRiS, and later in 2008 he
was appointed as a director of GUP UKRiS. Mr. Belchatov
has a wife and two children.
of success. as for difficulties, they are inseparably associated
with the communication issue i just mentioned. the
only real obstacle that can be a barrier to the success of
the programme is antagonism between owners and contractors,
since you can’t get admission to a flat if its inhabitants
hinder it. if this happens, it’s not possible to do
certain repairs, which leads to breakdown of repair efforts.
it is all interrelated. currently, i don’t find other problems
deriving directly from our work. to settle conflicts that do
arise, we’ve created an executive staff for checking capital
repair fulfillment in every district. if difficulties occur, they
are solved in real time.
Are contractors generally conscientious in
completing projects as specified? How is their
performance monitored?
of course they’re conscientious – otherwise they don’t receive
payment! material incentives clearly work. contractors
are paid only if everything is completed within the framework
of the project specifications and quality requirements.
this is determined through an acceptance report from the
state committee. approval evaluations are performed in
Konstantin Gennadievich belchatov DIsCUssION
agenda 17

DIsCUssION Konstantin Gennadievich belchatov
18 agenda
“Of course rooms
should be ventilated,
but unlike the old
days there’ll be
strong economic
reasons against
senseless heating
of the street.”
compliance with the existing regulatory system, including a
formal report based on tests – in particular a pressure test
of the heating system. also various other project solutions
are checked. moreover, warranty work is the responsibility
of the contractors. if violations are detected, they have to
come back and do the work again.
In your opinion, how much do Moscow citizens know
about the 2008-2014 capital repair programme?
this varies from person to person. socially active citizens
interested in the capital repair process are well informed
about the programme. experience shows that there are a
lot of people who are interested in our initiatives. many apply
with requests about including their houses in the work
plan. in this regard, there is an active interaction between
city residents and municipal organizations. of course,
some people who don’t read newspapers or watch tv become
aware of the programme only at the moment when
the contractors ring the doorbell.
What about energy-saving equipment and its benefits
for both energy companies and building residents?
there is no doubt that energy providers are interested in the
capital repair process, because it’s much easier to service
the new equipment. in addition, new energy application technologies
– such as communication solutions for heating sy-
stems that enable remote monitoring and control – make their
jobs easier. in my opinion, benefits for residents are obvious.
energy saving is important for them because the final target
of the housing and community building reform programme
is the full assignment of property ownership to residents.
once they assume ownership, residents will be responsible
for water, heating and electricity payments. that’s why the
energy-saving measures carried out within this programme
will become a very important economic factor.
equipment choice has to be carefully considered, from
water and electricity meters to heating automation – including
danfoss thermostats, which are installed in heating
systems within the framework of the programme. after
the modernization process is finished, building residents
will be able to control the microclimate in their own flats.
When people pay for heating according to actual energy
consumption, they’ll consider whether it’s better to set the
radiator thermostat to a lower temperature or to open a
window. of course rooms should be ventilated, but unlike

the old days there’ll be strong economic reasons against
senseless heating of the street.
But this system is not yet widespread –
are citizens beginning to understand and accept it?
i think that gradually there will be acceptance of solutions
that allow individual heat billing. especially as all residents
come to understand how much heating energy they consume
and how much is necessary to pay for it.
What is the projected energy gain of the capital
repair programme?
according to project calculations, average household heating
efficiency should increase by 30%. currently, the programme
is in its initial stages. When this year’s heating season
ends, we will be able to evaluate real heat consumption
and compare it with the preceding year. only then we can
speak about the results. But undoubtedly there is potential.
Can you explain a bit more about system-wide
energy-saving measures included in the capital
repair programme?
Plans for heating system modernization include the instal-
Konstantin Gennadievich belchatov DIsCUssION
A system of pipes distributes
heating to individual apartments.
Since the beginning of the 2008,
there have repairs to residential
buildings and blocks of flats
throughout Moscow. Next year
the plan is to conduct capital
repairs in 534 buildings.
lation of substations for heating and domestic hot water,
automatic balancing valves and heat meters, as well as
radiator thermostats for room heating in flats. Within individual
buildings we’re seeing to the insulation of facades and
walls, installation of modern triple-pane windows with Pvc
frames and glassed-in balconies, along with additional insulation
of the roof and basement floor. all these measures
reduce heat loss and increase energy-savings. other
government departments, such as the department for fuel
and energy economy and the department for housing
and community services, are also involved in producing
energy-saving solutions.
What is the outlook for the capital repair
programme in 2009?
next year we’re planning to conduct capital repairs in 534
buildings, including work on facade insulation, window
cases and engineering services replacement.
Finally, what is the impact of the financial crisis on
the progress of the capital repair programme?
at the moment, the financial crisis has had no effect on
either current work or future planning.
agenda 19

wORLD The United States
20 agenda
Back to the future
Robert Thornton, US, is president
of the International district Energy
Association (IdEA), a nonprofit
industry association founded in
1909. Its vision is to promote
energy efficiency and environmental
quality through the advancement
of district heating, district cooling
and cogeneration. In the following
article, Mr. Thornton provides
wide-ranging observations about
district energy/heating – its history
and potential for future growth –
in the United States.
TExT Rob HolDER, PHoToS CoURTESy oF IDEA
Robert Thornton, US, is president of the International
District Energy Association (IDEA), a nonprofit
industry association founded in 1909. Its vision is to
promote energy efficiency and environmental quality
through the advancement of district heating, district
cooling and cogeneration. In the following article, Mr.
Thornton provides wide-ranging observations about
district energy/heating – its history and potential for
future growth – in the United States.
When Robert Thornton was introduced recently
to a prominent energy expert from Massachusetts
Institute of Technology (MIT), the man’s opening remark
was: “Ah, district energy – back to the future.”
His meaning quickly becomes clear when you
consider that next year IDEA celebrates its 100 th
anniversary. In fact, district heating/cooling (DHC)
and cogeneration in the United States are simultaneously
ideas whose time has come and proven
concepts with a long history all across the nation.
The first commercially successful district heating
system was launched in lockport, new york, in
1877 by American hydraulic engineer birdsill Holly,
considered the founder of district heating. Much
farther west, Denver, Colorado, boasts a district
heating system that dates back to 1880. between

and beyond these two locations, the country is dotted with
district energy facilities in all 50 states. Hundreds were built on
university and college campuses, which originally constructed
their own powerhouses to provide heat and power at a time
before investor-owned electric utilities were available to
supply power from an electricity grid.
A tIppIng poInt
“In this country, district energy and combined heat and power
(CHP) are not new ideas at all,” says Thornton. “What is new
is the increasingly widespread recognition that it’s vitally important
to get all the value we can out of our fuel by harvesting
heat efficiently and effectively, which also lets us reduce emissions.
I think there’s been a tipping point within the last 18
months or so – especially as people have been whipsawed
by unpredictable oil prices – and a growing awareness that
greener energy is in everyone’s best interest. Al Gore deserves
much of credit, but many voices are echoing the need
for change.” The U.S. has a solid historical foundation to build
on. District energy has successfully delivered real benefits in
terms of capital efficiency, space efficiency and – especially –
reliability. District energy systems are often hidden assets, but
they deliver value around the clock, not just when the wind
blows or when the sun shines.
“We’re working hard to build recognition and visibility,” Thornton
says. “I’ve briefed Senators, Representatives, Cabinet
members and President bush – and when you have just a
few minutes to explain how it all works, they invariably say,
‘Wow – that makes a lot of sense.’ I believe that ours is an
industry whose time has come around again. We face a combination
of challenges – both energy costs and the threat of
climate change – and DHC/CHP can deliver on both. Many
economists and policy leaders in the U.S. are looking to the
clean energy industry to help drive new job growth and lead
the economic turnaround as well as cut our dependency on
fossil fuels and improve our negative trade balance. President
obama has cited investment in clean energy as his top priority
to spur the economy.”
REAdy to dElIvER
DHC/CHP has a great advantage in being a proven techno-
logy, not an R&D activity. “We can deliver tomorrow,” Thornton
says, “and within the new President’s first term achieve
significant benefits in terms of new green jobs, and emissions
and cost reductions.” The time is right to press for more collaborative
solutions. Especially as in December 2007 IDEA
advocated for legislation within the Sustainable Energy
Infrastructure Act, which was signed by the President and
allocated 3.5 billion dollars over five years to support design,
construction and development of clean district energy and
combined heat and power. The funding, although authorized,
has not yet been appropriated. one of the principal goals of
The United States wORLD
IDEA in early 2009 is to lobby for the appropriation of these
funds as part of an economic stimulus bill.
These transitions aren’t easy,” says Thornton. “There’s a keen
interest in prudent energy decisions, but we need to have the
political will to capitalize on that interest. We see IDEA’s 100 th
anniversary conference in Washington, D.C., in june 2009
as an educational opportunity to show near-term solutions
and how we can deliver higher fuel efficiency and emissions
reductions immediately.” As more and more people see that
it’s not an either-or decision between the environment and
economics – that clean energy and DHC can provide a substantial
return on investment – there are new funds appearing
in search of reasonable-risk energy investment.
tHe power oF a good idea
“After all,” he points out, “development of downtown district
energy in the U.S. has largely been driven by the private sector.
Since 1990 we’ve seen more than 40 new district cooling systems
in north America – mainly through private sector capital
investment – and there’s opportunity for more private-public
partnership for new community-based systems.” He also notes
that real market gains will also require some structural changes
in regulations, such as district energy/CHP qualifying in state
energy efficiency portfolio standards and thermal energy gaining
equal standing with electricity technologies.
“We don’t have the influence of the coal, oil and electric industries,”
Thornton says, “but there’s nothing like the power of a
good idea to focus people’s attention. We have the benefits of
solid arguments and a proven track record. And IDEA is working
together with the International Energy Agency, Euroheat and
Power and other associations around the world. We’re learning
much from the EU and northern European experience and
bringing that information forward to our own policy makers. In
the near term we may see the current financial crisis impact
this market. In the long term, we need a robust cap-and-trade
system, and I believe it’s coming in the U.S.”
IDEA has begun working on improving
recognition of district energy benefits to end-users such as
commercial office buildings and other urban consumers. Currently,
“agency” arrangements like fee-based property management
or complicated modelling guidelines, such as LEED®, seem to either
overlook or pinch off some of the value delivered by highly reliable
steam, hot-water and chilled-water services. IDEA has opened a
dialogue with the U.S. Green Buildings Council and the Environmental
Protection Agency (EPA) to address procedural changes, but must
engage with multiple process stakeholders to more fully understand
market dynamics and offer input to solutions.
agenda 21

22 agenda

Micro network sOLUTIONs
How to bring back
Queen Victoria’s
buildings
to low carbon emissions
The reinstalling of district heating at five energy-gorging old public
institutions in central London means a return to the original effective
way of heating.
TExT jESPER WITH, PHoToS AnnA KARI
A huge dinosaur in its original size is facing us as we enter the
impressive main hall of the natural History Museum (nHM)
in central london. Here you will find one of the world’s largest
and most important collections of natural history. built in
1881 in the reign of queen Victoria, the main building is one
of the finest examples of 19 th -century architecture. It is full of
phenomenal details like handmade terracotta tiles and was
constructed in such a way that the ventilation functioned natu-
rally for much of the time. The necessary heating came from
a local district steam heating system, which was installed at
nHM – as it was in four other public buildings, situated close
to each other in “Albertopolis” in the South Kensington area.
DIsTrICT HeATIng For 100 yeArs
“later the natural ventilation system was destroyed by bombs
in the 2 nd World War, by the installation of gas fired boilers
and by the installation of air conditioning, which didn’t fit
the construction of the building. That was not well thought
through, since it destroyed the effectiveness of the natural
ventilation systems,” Simon Tilleard explains. He works for
the london Climate Change Agency (lCCA), but before that
he was chief engineer for several years here at nHM, so he
The total CO2 emissions of the Natural History
Museum and its four partner institutions are
58,000 tons per year. The project team believe
this can be cut by half within a few years if the
master plan is implemented.
agenda 23

sOLUTIONs Micro network
24 agenda
has deep insight into the building’s construction.
In the 1950’s a large-scale 42 MW district heating system
was installed in the five institutions to replace all the smaller
DH systems, and this operated until 2000 when two of the
institutions withdrew. “Since there was district heating here
for more than 100 years, it is actually nothing new for us to
reconnect these five old buildings – three of them from Victorian
times – into one micro DH network system,” Simon Tilleard
says. The project, supported by the lCCA, once again involves
the five institutions - the natural History Museum, the
Science Museum, the Victoria & Albert Museum (V&A), the
Royal Albert Hall and the Imperial College (a university). Work
is going on in each organisation to implement an energy sy-
stem model, which will demonstrate the leadership of the institutions
and the city administration and give an overview of
energy use.
A Blue WHAle
We pass a blue whale, which is so huge that it fills out almost
one whole gallery alone. The 69 million specimen at the
museum demand the strict control of heating and cooling
in order to ensure their preservation for the future. Simon
Tilleard takes us from the main building to the boiler house,
where a new 1.8 MW CHP was installed last summer. It is
placed next to two 9 MW gas-fired boilers, which are taking
Simon
Tilleard of the
London Climate
Change Agency
and former
chief engineer
at the Natural
History
Museum.
care of the daily heat supply. nHM uses 3 MW of electricity
during the day, 1.5 MW at night. The CHP covers the needs
of nHM in the summertime, and the surplus heat from producing
electricity is used for the cooling system. This makes
things much more efficient.
“In 2006 it was then refurbished with the CHP and we estab-
lished an absorption refrigeration machine as well to turn
surplus heat into cooling during summer. The knowledge
of Danish experts was used in this process,” Simon Tilleard
says. The V&A, one of the world’s greatest museums of art
and design, is just next to nHM at Exhibition Road and is
connected to the same boiler house.
A CoMMon MAsTer plAn
Implementing an energy system model for the five public
buildings was financed by a 3 million pound grant from the
Treasury, and the project has resulted in a partnership of the
institutions that is determined to reduce the carbon emissions
from the estate.
To cover electricity and heat the nHM alone would need a
9 MW CHP. This hasn’t been possible, according to Tilleard
because it wouldn’t be possible to sell surplus electricity for
a reasonable price on the market. “So it could have been
better, but still, as a result of this project of nHM and V&A
alone we save 2,000 tons of Co2 per year. It is quite a big
step,” Simon Tilleard says. The overall idea is to develop a
master plan for the five institutions, which can be used at
other places. Estimates indicate that 50% of the energy used
can be saved, where 7 % alone comes from metering measures.
4 % should come from behavioural changes from staff,
including the daily energy-system management.
WHere Do We loose IT?
Down in the boiler house Simon Tilleard shows us the pipeline,
which leads to the Imperial College. or to be specific:
the end of the pipeline, since the connection to the college
is simply cut off. Instead Imperial College uses its own boilers.
The university is spread over 300,000 square meters and
is a huge energy user. Its leadership doesn’t know where
exactly the energy is being used, since there are no energy
meters in the different buildings. The same problem exists in
the Victorian buildings, and this has lead to a new project to
install an extensive network of energy meters in all necessary
places. The data gathered by these meters will make an important
contribution to the overall energy-system model and
the plans to reconnect all five buildings into one micro DH
network system connected to a CHP and other renewable
technologies. This will be a most effective way to save the
city of london huge amounts of Co2 emissions every year.

what is the purpose of london eSco?
The ESCo is a joint venture between london Climate Change
Agency and EDF Energy, a French energy utility with more
than 5 million customers in the UK. The lCCA is owned by
the london Development Agency (lDA) and was set up in
2006 to introduce measures to reduce Co2 emissions. The
london ESCo designs, builds, finances and operates Co2
schemes that deliver sustainable solutions.
How will london reduce its co2 emissions?
The new mayor, boris johnson, puts a lot of effort into bringing
down Co2 emissions in london. The city currently uses
4 GW of electricity per year, which leads to 34 million tons of
carbon emissions. The Climate Change Action Plan promotes
de-carbonization of london’s electricity supply by moving
move 25% of it away from the grid by 2025 and proposes
instead to produce it locally, utilising CHP facilities in order
to improve energy efficiency. That initiative alone will save us
approximately 2.5 million tons of Co2 per year.
why do you focus on decentralized energy supply?
Decentralized Energy is a central point in achieving reductions
in Co2 emissions. london’s existing building stock is responsible
for a large part of these emissions and we actually know
how to reduce emissions by supplying energy to buildings
efficiently. CHP systems supply heating as well as electricity
to its customers, and when required they also provide cooling
(CCHP systems) – thus improving substantially the generation
and delivery of energy and also reducing Co2 emissions.
District heating in combination with CHP is an effective way
of reducing emissions. It is not the only method, but an important
one, and therefore a lot of effort is directed toward
delivering decentralised energy schemes.
Micro network sOLUTIONs
The de-carbonization
OF A METROpOlIS
The 34 mt CO2 that London is using every year is
way too much. A Climate Change Action Plan was
therefore introduced by the mayor of London to
tackle CO2 emissions. Paul Yiannouzis, director of
the London ESCO, is working to implement parts
of the big plan.
TExT jESPER WITH, PHoToS AnnA KARI
can you give some examples?
The 2012 olympics taking place in london has led to several
projects. A huge development area built for the olympics will
be supplied by two energy centres housing CHP systems to
supply heating and electricity, and in selected areas cooling,
to the new facilities to be used for the Games. They will mainly
be gas fired, but renewable fuel will be used as well. In barkantine
the london ESCo has designed, financed, built and
is now operating a decentralised system providing heat and
electricity to a large number of local residents.
do you need to change regulations
to promote dH systems?
yes, and that is a challenge. Mr. Smith on the 9
agenda 25
th floor cannot
say no to centralized heating, if the rest of the building
will be connected to a DH system. otherwise it doesn’t
make sense. The attention to climate changes must be
prioritized to individual choice. luckily district heating
is mostly cheaper and more stable for the customer. At
present the UK doesn’t have legislation supporting the use
of decentralised DH systems. In london legislation is in
place requiring the use of DH for new building developments.
but in the existing building stock comprising either
blocks of flats or individual single occupancy houses the
implementation of DH systems is extremely difficult. Property
owners are reluctant to adopt changes, since financial
incentives are limited, and DH systems limit choice of supplier.
Financially the viability of DH systems is dependent
on a number of issues including tariffs, customer retention,
take-up of cooling as well as heating and hot water. The
london ESCo is working closely with the lCCA and other
organisations to support the UK Government in developing
a DH directive.

26 agenda

District heating is more alive than ever. Also, district heating
is a clever choice for the new generation of low-energy
buildings, according to Professor Svend Svendsen from the
Technical University of Denmark.
Some people have claimed that district heating is not useful
for supplying the growing number of low-energy buildings,
which are expected to be built in the coming years.
Instead they suggest the use of heat pumps or other
alternative solutions, since though low-energy houses do
need heat supply, they need a much smaller amount than
traditionally built houses. but professor Svend Svendsen
and his team disagree. District heating systems have been
technically upgraded – for instance, they use twin pipes
in smaller dimensions – and are ready to supply the new
generation of low-energy houses. optimized DH systems
low-energy buildings ACADeMY
The future
low-energy
needs
society
district heating
TExT jESPER WITH, PHoToS CHRISTIAn AlSInG
for low-energy houses are competitive with heat pumps
and with other heat sources from a socio-economic point
of view.
“If we want to reach the goals of bringing down Co2
emissions in the world, I see no other way out. We have
to use district heating from burning of waste and central
solar heating plants – and use it more than we do today.
In Denmark 60 percent of all homes are heated by district
heating, and this proves that district heating works very
well. Most countries don’t have this size of district heating
agenda 27

ACADeMY low-energy buildings
28 agenda
network, but I think there will be many more of them in the
future. The EU, for instance, is recommending it as one
of the most important options in order to reach the 2020
goals,” Svend Svendsen says.
lower teMperature in tHe SySteM
In co-operation with several Danish companies Svend
Svendsen has proved in a recent scientific project that the
new low-temperature district heating system can live up
to the demands of low-energy buildings. The solution is
a low-temperature system consisting of small and wellinsulated
twin pipes. The challenge has been to design a
cost-effective system with a very low heat loss, which can
supply sufficient DH temperatures all the year around in an
urban area of houses with low energy demand for space
heating. For this reason the traditional DH system has to be
gradually developed, since low-energy houses don’t need
the high temperature (around 70ºC), which today is sent
out in the network from Danish heat plants. It is possible to
base a DH system for low-energy single-family houses on
flow temperature just a little higher than 50ºC and obtain a
return temperature below 20ºC as an average, according to
the analyses of the Copenhagen scientists.
“40ºC for domestic water and 25ºC for room temperature is
what you need in your house, and this means that you can
keep a very low supply temperature (in the DH network) and
very small water flows inside the buildings. In this way you
can achieve a heat loss in the underground DH network as
Svend Svendsen is a professor at the Technical
University of Denmark. He is a specialist in
low-energy district heating systems and is working on the
challenge of making society independent from fossil fuels.
His vision is that low-energy buildings heated by renewable
energy from a low-energy district heating system is the
cheapest way to achieve the future low-energy society.
low as 15 % of the heat delivery from the heat plants. you
just need to use well-insulated twin pipes in small dimensions,”
Svend Svendsen explains. Already now you can
find examples of low-energy houses supplied by the new
low-temperature DH system in Denmark. And in Austria
there are so-called Passive Houses, which get their small
requirement of heat supply from the public DH network.
away FroM FoSSil FuelS
Developing DH systems for modern low-energy buildings
is only a part of the answer, however, in order to reach a
point where Europe is totally or partly free from its dependence
on fossil fuels – which must be the final goal, according
to Svend Svendsen.
“burning of fossil fuels is not the answer of the future.
We have got to leave that road. Instead we need to use
sustainable energy solutions and mass burn incineration,
which is a bi-product of society anyway. Waste manage-

How many names does a
single good idea need? In Europe, the
concept of low-energy housing seems
to attract names like a magnet: Passiv Haus,
Low-Energy House Class 1, Null Energie
Haus, OIB 2010, Minergie, Nordic Swan,
Code Level 3, Zero Carbon Home, Effinergie.
But they all describe a single positive
tendency: National building regulations are
constantly getting stricter, and as a result
houses will use much less energy in the
future than they do today. This also means
that architects, engineers, contractors and
energy system suppliers are forced to work
much more closely together than formerly to
meet the more stringent standards.
ment in CHPs has a big potential internationally,” he says.
It is not used very much in Europe today, but according to
Svend Svendsen it is an environmentally very good solution
– so long as gas treatment takes place. lots of countries
are still using open-air waste disposal sites from where the
trace gas methane is contributing to the greenhouse effect.
“That is bad. I recommend much more waste management
and much more solar energy connected to the heat
plants. In this way we will get rid of a big part of our fossil
fuels dependency, save lots of money and bring down Co2
emissions dramatically,” Svend Svendsen says.
tHe revolution HaS Started
The DH expert is well aware that district heating is rather
undeveloped in many countries. However, this doesn’t
mean there is no future for this system in these countries.
on the contrary, he recommends to city authorities that di-
strict heating in combination with combined heat and power
should be part of the plan when they are developing new
city areas. And a look around Europe shows us that it is
already being done in cities like london, berlin and Milan as
well as in new york. In old city centres, it is more difficult.
“but without political plans this will not be reality. In Denmark
it seems to go slowly forward, but the revolution has
already started concerning the buildings. The new Danish
building Regulations of 2008 put up strict demands, and
already in 2010 all new buildings have to live up to low-
energy Class 2 regulations. This also goes for modernization
of existing buildings. I’m always saying: Insulate the houses
properly and modernize or build out the district heating sy-
stems. Then we are on the right track. If we don’t do that, it
will be extremely difficult to bring down Co2 emissions and
get rid of fossil fuels - which I think is necessary in the long
run,” professor Svend Svendsen concludes.
low-energy buildings ACADeMY
agenda 29

ONLINe digital resources
VIRTUAl ENERGY hUBS
From legislation and events, to practical energy-saving advice.
The agenda cyber hitlist helps you navigate through the encyclopaedic
volume of energy-related portals. Click and go.
dENMARK
WWW.Cop15.DK
a site dedicated to copenhagen hosting the next united
nations climate change conference (coP15), which
kicks off on 7 december 2009. delegates for the 2009 conference
of Parties (coP) will include environmental ministers and
officials from 189 countries, along with representatives from
a large number of eligible ‘interested’ and business organisations.
the objective of the two-week programme is to establish
an ambitious global climate agreement for 2012. in addition to
key coP15 conference information and logistics, the site also
includes details of other worldwide energy events, extensive
dENMARK UK
WWW.CopenHAgenClIMATeCounCIl.CoM
home of the ‘climate community’, a new gateway
to interact and gain insights from high-level climate
experts, KoLs, decision makers and business innovators
from around the globe. the ‘virtual summit’ feature is a
six-month-long series of online events, live interviews and
discussions leading up to the World Business summit on
climate change in may 2009, which will bring together
the world’s top scientists, economists, media and government
representatives to decide on recommendations for
the next international framework on climate change. site
language: english.
GERMANY
WWW.Co2onlIne.De
a non-profit initiative aimed at motivating private households,
trade and commerce to reduce co2 emissions
– and costs. Provides an impressive range of expert online
advice on technical modernisation measures for heating and
thermal insulations, and includes valuable information on grant
schemes. over 2,300,000 users have taken advantage of the
online energy-efficiency consultations since 2004, and their
success has prompted a series of european versions. go to
www.co2online.de/partner/internationale-partner.html to hyperlink
to all local co2online portals. site language: germany
and links to various local language sites.
30 agenda
background information on international climate diplomacy,
up-to-date world energy news and ten downloadable ‘about
denmark’ profile sheets. developed by the danish government,
the information sheets outline the country’s approach to
energy supply, climate change and environmental issues. With
a history of an exemplary focus on environmental technology
and sustainable energy sources, denmark boasts an economic
growth rate of 70% over the last 25 years, and only a minimal
increase in energy consumption. this makes the danish capital
a knowledgeable and valuable host of coP15. site language:
danish and english.
WWW.ClIMATeCHAngeCorp.CoM
climate change news stories and analysis for the global
business community. the site includes well-categorized
subscribable news feed, in-depth intelligence and key opinions
from the world’s leading climate change and business experts.
the ‘markets’ area delivers global news at a glance, the ‘technology’
area provides outstanding coverage of cutting-edge
engineering and the ‘Branding’ area contains some insightful
reads into eco labelling and claiming. a valuable portal that
is part of ethical corporation, an independent publisher, think
tank and conference organiser specialising in business ethics.
site language: english.
INTERNATIONAl
WWW.unFCCC.CoM
the official site of the united nations framework convention
on climate change (unfccc), maintained to
support arrangements for meetings organised under the convention,
transmit official data and assist member Parties in
communicating convention-related information. it has an extensive
reference on the Kyoto Protocol, and a vast video-ondemand
and webcast library of coP, cmP and sB events and
meetings. for those looking for a concise introduction into climate
change and the convention, the site’s ‘feeling the heat’
resource is the perfect read. site language: english, french
and spanish.

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www.euroHeat.org

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