12th International Symposium on District Heating and Cooling

oiler for the whole building (several apartments) orseveral buildings. Another problem for individual andautonomous heating is that in case of gas supplyinterruption there is no reserve fuel resources tocontinue heating. Reserve fuel can be provided only forcentralized DH.Frequent failures in the heating systems as a result ofoutdated equipment and poor funding are still commonthroughout the country. Some service breaks in coldestwinter times have caused serious impacts on humanlife already.Legally, local authorities that establish tariffs forpopulation lower than the cost coverage level have tocompensate the difference to energy‐generatingcompanies. In practice the compensation is not alwayspaid in full which leads to arrears accumulation andaggravates financial state of heat‐generators. Theprocedure of heat tariffs increase is rather complicated,as well as time consuming.According to the Law of Ukraine adopted in April 2006,heat producers such as CHPs and renewable sourcespower plants are not allowed to cross‐subsidy heatproduction to cover losses from heat production at thecost of electricity production or other activity.Nevertheless, official sources say that due to low heattariffs for CHPs heat production is subsidized by thecost of electricity production. But the unofficial sourcesassert that CHPs may charge heat tariffs that are evenhigher than heat production cost to cover losses fromelectricity production, because electricity tariffs are setonly by NERC while heat tariffs are set by heatproduction companies with the approval of local bodiesof power.3.4. Current ActivitiesThe DH strategy is under preparation in Ukraine as amulti-ministerial approach and it should be ready in fall2010. CHP development is in the focus of the strategy.There has also been comprehensive frameworksupport initiated by USAID, EBRD and EU toreformulate the national energy policy, including DHCand CHP. It is uncertain now how much the politicalelection of April 2010 will influence availability of suchforeign technical assistance in the years to come.4. U.S.A.4.1. Status of DHCThe total DHC industry base comprises approximately2 500 systems, in which the number of customerbuildings served by a typical DHC system may rangefrom as few as 3 or 4 in the early stages of new systemdevelopment to the largest system served byConsolidated Edison in Manhattan. The downtownThe <strong>12th</strong> <strong>International</strong> <strong>Symposium</strong> on District Heating and Cooling,September 5 th to September 7 th , 2010, Tallinn, Estonia220DHC/CHP system in New York City is the World‘slargest steam system with 1850+ customers.DHC (primarily DH currently) delivers about 3,5 % ofthe total final energy demand in the industrial,residential, public, and commercial sectors. In the pasttwo decades, some 47 Mm 2 has been connected to theDHC systems, but the total customer base volumenumber is not available.The DHC systems are predominantly (80%) withsteam, the consumption being a mixture of steamheating, cooling and DHW depending on the particularcase. There is little residential heat load but themajority is public: offices, malls, universities andmilitary bases.Countrywide, the DH and DC markets are expanding at3-4%/a and up to 10%/a, respectively, but almost solelyon campuses, hospitals, military bases and in thedowntown commercial and public buildings.[5]In general, however, DHC together with CHP has beentragically underutilized as a tool to combat climatechange, to reduce life-cycle costs of energy supply andto defend energy independence in U.S.A.4.2. Market DriversThe U.S. Congress has acknowledged the benefitsDHC/CHP by stating that: approximately 30% of the total quantity of energyconsumed in the United States is used to providethermal energy – heating and cooling buildingspace, DHW and industrial processes; thermal energy is an essential, but oftenoverlooked segment of the national energy mix; DHC systems provide sustainable thermal energyinfrastructure by producing and distributing thermalenergy from CHP, sources of industrial ormunicipal surplus heat and from renewablesources such as biomass, geothermal, and solar; DHC systems provide advantages that supportsecure, affordable, renewable, and sustainableenergy for the U.S., including use of local fuels orwaste heat sources that keep jobs and energydollars in local economies, stable, predictableenergy costs for businesses and industry,reduction in reliance on fossil fuels, reduction inemissions of GHG, and flexibility to modify fuelsources in response to future changes in fuelavailabilities and prices and development of newtechnologies; DHC helps cut peak power demand and reducepower transmission and distribution systemconstraints; and,CHP systems increase energy efficiency of powerplants by capturing thermal energy and using thethermal energy to provide heating and cooling, more