The <str<strong>on</strong>g>12th</str<strong>on</strong>g> <str<strong>on</strong>g>Internati<strong>on</strong>al</str<strong>on</strong>g> <str<strong>on</strong>g>Symposium</str<strong>on</strong>g> <strong>on</strong> <strong>District</strong> <strong>Heating</strong> <strong>and</strong> <strong>Cooling</strong>,September 5 th to September 7 th , 2010, Tallinn, Est<strong>on</strong>ia2000420030%<strong>District</strong> heat generati<strong>on</strong> in [PJ]18001600140012001000800600400200027 36 46 56 65 75 85 94 104 114 123carb<strong>on</strong> price in [€/t CO2]Heat Plant RESHeat PlantCHP RESCHP FCCHP CCSFigure 12: <strong>District</strong> heat generati<strong>on</strong> in the EU-27 in 2030 bytechnology groupCHPUse of Electricity [PJ]418041604140412041004080406040404020400027 36 46 56 65 75 85 94 104 114 123Carb<strong>on</strong> price [€ 2000/tCO2]25%20%15%10%5%0%-5%-10%Change of Electricity supply by technologycompared to CO 2 price of 27 €/tFigure 13: Use of electricity in the EU-27 in 2030 bytechnologySUMpublicgenerati<strong>on</strong>C<strong>on</strong>densingindustrialCHPindustrialIn the industrial sector, the share of CHP will grow. Theadditi<strong>on</strong>al emissi<strong>on</strong> reducti<strong>on</strong>s by the industrial sectorof 301 Mt in the year 2030 could be split into industrialsupply <strong>and</strong> industrial producti<strong>on</strong> processes. The supplyside covers the industrial generati<strong>on</strong> of energycommodities or energy services. These are electricityfrom industrial c<strong>on</strong>densing power plants <strong>and</strong> CHPs,heat <strong>and</strong> steam from CHPs <strong>and</strong> boilers, space heating<strong>and</strong> heat for hot water as well as cooling. The supplyactivities play an important role in the industrial subsectorswith a high share of space heating (such asfood & tobacco or other industries) or low temperatureprocess heat (such as pulp & paper or food & tobacco).In total, from the additi<strong>on</strong>al reduced emissi<strong>on</strong>s, 147 Mtare reduced by industrial supply processes <strong>and</strong> 154 Mtby producti<strong>on</strong> processes in 2030. While at lower a CO 2price more emissi<strong>on</strong>s are reduced <strong>on</strong> the supply side(66% of the additi<strong>on</strong>al reducti<strong>on</strong> based <strong>on</strong> supplyprocesses at 46 €/t), at higher prices more <strong>and</strong> morereducti<strong>on</strong>s take place <strong>on</strong> the producti<strong>on</strong> side (49 %based <strong>on</strong> supply processes at 123 €/t).The additi<strong>on</strong>al electricity needed at high CO 2 prices ismainly generated by industrial autoproducers. Withinthis industrial producti<strong>on</strong>, the additi<strong>on</strong>al electricitymainly comes from CHP power plants. The use ofelectricity in the industrial sector from public generati<strong>on</strong>remains relatively c<strong>on</strong>stant even when the CO 2 priceincreases. Accordingly, <strong>on</strong>e key way to reduce theemissi<strong>on</strong>s <strong>on</strong> the supply side is through the extendeduse of CHP plants for industrial power generati<strong>on</strong>. Thishigher amount of electricity from industrialautoproducers (Figure 13) leads to higher c<strong>on</strong>versi<strong>on</strong>losses in total when the fuel use is c<strong>on</strong>sidered. Asdescribed above, that is <strong>on</strong>e reas<strong>on</strong> for the differencebetween final energy c<strong>on</strong>sumpti<strong>on</strong> <strong>and</strong> fuelc<strong>on</strong>sumpti<strong>on</strong>. Another reas<strong>on</strong> is the lower efficiency ofelectricity generati<strong>on</strong> due to the higher use of CCS.The other part of the industrial supply processes is theindustrial heat generati<strong>on</strong>. The drivers for the emissi<strong>on</strong>reducti<strong>on</strong> in industrial heat producti<strong>on</strong> are a switch tobiomass (from coal <strong>and</strong> clearly from gas) <strong>and</strong> the useof CCS in industrial CHPs (Figure 14). Between a CO 2price of 36 <strong>and</strong> 56 €/t of CO 2 in 2030, there is a clearincrease in the use of renewables in boilers. The shareof renewables in the total fuel use in industrial boilersincreases from 33% to 51%. As a result, the thermalefficiency of boilers has an overall decrease.In industrial CHPs, there is also a slight increase in theuse of s. This switch takes place between CO 2 pricesof 27 €/t to 65 €/t. However, the main changec<strong>on</strong>cerning CHPs is the increasing use of CCS. At aCO 2 price above 94 €/t, there is a clear rise in the useof this technology. These CCS CHPs are mainly gasfired 10 . This is why the share of renewables used inindustrial CHPs declines at a price over 75 €/t again.Like biomass, the extended CCS use also leads tolower efficiencies resulting in both the efficiency ofboilers <strong>and</strong> CHPs to decline over time. Accordingly, thekey driver is not efficiency improvements, but the useof renewables <strong>and</strong> CCS. The effects of renewables <strong>and</strong>CCS compensate the trend to lower energy intensitywithin <strong>on</strong>e technology. Gas boilers become moreefficient <strong>and</strong> as do biomass boilers. However, the moreefficient biomass boilers still use more fuel than the gasboilers.Looking at the heat output by technology, there is alsoa shift (Figure 14). At lower emissi<strong>on</strong> prices, the heatoutput from industrial boilers stays almost c<strong>on</strong>stant.Within this range, the share of renewables usedincreases (as illustrated in Figure 13). Afterwards, at aprice above 65 €/t, boilers are substituted with heatfrom CHPs <strong>and</strong> district heat. Both heat commodities23510For a detailed analysis of the CCS potentials, costs<strong>and</strong> the modelling of CCS in TIMES PanEU see/Kober, Blesl (2010a), Kober, Blesl (2010b), Kober,Blesl (2009)/
The <str<strong>on</strong>g>12th</str<strong>on</strong>g> <str<strong>on</strong>g>Internati<strong>on</strong>al</str<strong>on</strong>g> <str<strong>on</strong>g>Symposium</str<strong>on</strong>g> <strong>on</strong> <strong>District</strong> <strong>Heating</strong> <strong>and</strong> <strong>Cooling</strong>,September 5 th to September 7 th , 2010, Tallinn, Est<strong>on</strong>iaare generated in combinati<strong>on</strong> with an increasing shareof renewables, a higher CO 2 price <strong>and</strong> from CCS.Efficiency <strong>and</strong> share [%]90%80%70%60%50%40%30%20%10%0%27 36 46 56 65 75 85 94 104 114 123Carb<strong>on</strong> price [€ 2000/tCO2]CHP industrial η(total)CHP industrialshare RESBoiler industrialηBoiler industrialshare RESCCS CHPindustrial (shareFuel input)Figure 14: Efficiency of heat supply technologies <strong>and</strong>share of CCS at industrial CHP in the EU-27 in 2030150<strong>District</strong> Heatthat the climate c<strong>on</strong>diti<strong>on</strong>s within Europe differsubstantially.Within the energy system of the EU-27, there aredifferent emissi<strong>on</strong> reducti<strong>on</strong> pathways. The emissi<strong>on</strong>scould be reduced by a fuel switch in more efficient (orbetter, less carb<strong>on</strong> intensive) energy supply or by achange in producti<strong>on</strong> processes. Key driversc<strong>on</strong>cerning the emissi<strong>on</strong> reducti<strong>on</strong> in producti<strong>on</strong>processes <strong>and</strong> in heat dem<strong>and</strong> side are efficiencyimprovements due to new technologies <strong>and</strong>technological improvements. The key driver c<strong>on</strong>cerningthe supply side of electricity <strong>and</strong> heat generati<strong>on</strong> is theincreased use of renewables, mainly biomass, for heatgenerati<strong>on</strong>. The CCS technology also plays animportant role in the reducti<strong>on</strong> of emissi<strong>on</strong>s. Due to theincreased use of renewables in CHP <strong>and</strong> heat plants<strong>and</strong> the use of CCS, the efficiency in the supplyprocesses decreases at higher CO 2 prices.change in heat output [PJ]100500-50-100CHP industrialBoilerIn the l<strong>on</strong>g run to a CO 2 -free world, the possibility togenerate district heat with renewable energy <strong>and</strong> theuse of CCS make the decarb<strong>on</strong>isati<strong>on</strong> of the energyc<strong>on</strong>sumpti<strong>on</strong> in the end use sectors possible.In general, the progressi<strong>on</strong> of district heat dependscrucially <strong>on</strong> the possibility of generating CO 2 emissi<strong>on</strong>free district heat <strong>and</strong> electricity.-15036 46 56 65 75 85 94 104 114 123Carb<strong>on</strong> price [€ 2000/tCO2]Figure 15: Heat supply by technology in the industrialsector in the EU-27 in 2030 compared to the scenario withthe lowest CO 2 price of 27 €/tIn total, all these described effects c<strong>on</strong>cerning theindustrial supply processes lead to the additi<strong>on</strong>alemissi<strong>on</strong> reducti<strong>on</strong> in 2030 of 147 Mt at a price ofbetween 123 €/t <strong>and</strong> 27 €/t. In general, more emissi<strong>on</strong>sare reduced in boilers than in CHPs. The reas<strong>on</strong>s arethe fuel switch from coal <strong>and</strong> mainly gas to renewablesat lower CO 2 prices <strong>and</strong> later <strong>on</strong> the substituti<strong>on</strong> ofboilers with CHPs (less boilers are used <strong>and</strong> therewithproduce less emissi<strong>on</strong>s).Due to a higher use of CHPs, there is no clear increasein emissi<strong>on</strong>s during the mid-term ranges. When theoutput of heat stays c<strong>on</strong>stant <strong>and</strong> a higher share ofCCS is used, then clear emissi<strong>on</strong> reducti<strong>on</strong>s fromCHPs (additi<strong>on</strong>al 48.7 Mt in 2030 at 123 €/t comparedto 27 €/t) occur.CONCLUSION AND OUTLOOK<strong>District</strong> heating generati<strong>on</strong> offers an ec<strong>on</strong>omic potentialfor expansi<strong>on</strong> in the future. Depending <strong>on</strong> the regi<strong>on</strong>sor countries, the development will be different becausethe starting point is ec<strong>on</strong>omic growth <strong>and</strong> the existingnati<strong>on</strong>al laws or cross-subsidies for competitor‘s energycarriers. In additi<strong>on</strong>, it is necessary to take into accountREFERENCES[1] Blesl, M.; Kober, T.; Bruchof, D.; Kuder, R.: Effectsof climate <strong>and</strong> energy policy related measures <strong>and</strong>targets <strong>on</strong> the future structure of the Europeanenergy system in 2020 <strong>and</strong> bey<strong>on</strong>d, Energy Policy,2010 (forthcoming)[2] Blesl, M.; Kober, T.; Bruchof, D.; Kuder, R.: Beitragv<strong>on</strong> technologischen und strukturellenVeränderungen im Energiesystem der EU 27 zurErreichung ambiti<strong>on</strong>ierter Klimaschutzziele,Zeitschrift für Energiewirtschaft 04/2008[3] Blesl, M.: CHP <strong>and</strong> district heat in the Europeunder an emissi<strong>on</strong> reducti<strong>on</strong> regime, in: 11th<str<strong>on</strong>g>Internati<strong>on</strong>al</str<strong>on</strong>g> <str<strong>on</strong>g>Symposium</str<strong>on</strong>g> <strong>on</strong> <strong>District</strong> <strong>Heating</strong> <strong>and</strong><strong>Cooling</strong> in Reykjavik, Isl<strong>and</strong>[4] Blesl, M., Cosmi, C. ,Kypreos, S. , Salvia, M.:Technical paper n° Technical Report n° T3.18 –RS 2a ―Summary report of Pan European modelresults – BAU scenario‖ EU Integrated ProjectNEEDS ―New Energy Externalities Developmentsfor Sustainability‖ October, 2008[5] DEHSt (2010): DeutscheEmissi<strong>on</strong>sh<strong>and</strong>elsstelle, Kohlendioxidemissi<strong>on</strong>ender emissi<strong>on</strong>sh<strong>and</strong>elspflichtigen Anlagen im Jahr2009 in Deutschl<strong>and</strong>, Mai 2010236
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