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>iaIt was also shown that if all plants in the system arereplaced with BCHP plants, with an electricity-to-heatoutput ratio 0.46, up to 10TWh electricity can beproduced <strong>and</strong> the potential for decrease of GECO 2 ofthe system would be 3 t<strong>on</strong>s CO 2 annually. If all plantsin the system are replaced with NGCHP plants, with anelectricity-to-heat output ratio 1.2, the electricitygenerati<strong>on</strong> in the system can increase to 11TWh <strong>and</strong>the potential for decrease of the GECO 2 of the systemwould be about 5 t<strong>on</strong>s CO 2 annually. However, sincethese two studies were d<strong>on</strong>e, a new c<strong>on</strong>nectivitybetween networks has been built <strong>and</strong> the total installedelectricity capacity in the system has increased by 20%[5]. Furthermore, new CHP technologies are c<strong>on</strong>stantlybeing developed, which enable greater electricityefficiency <strong>and</strong> c<strong>on</strong>sequently greater benefits fromec<strong>on</strong>omic, energy <strong>and</strong> envir<strong>on</strong>mental viewpoints.Regarding interc<strong>on</strong>necti<strong>on</strong> <strong>and</strong> cooperati<strong>on</strong> of DHsystems, some studies have been c<strong>on</strong>ducted in aSwedish c<strong>on</strong>text. However, n<strong>on</strong>e of them have focused<strong>on</strong> cooperati<strong>on</strong> between energy companies. They haveinstead focused <strong>on</strong> cooperati<strong>on</strong> between energycompanies <strong>and</strong> industry.Tholl<strong>and</strong>er et al. [15] found that technical aspects areseldom barriers to cooperati<strong>on</strong>. The barriers are ratherrisk, different aspects of informati<strong>on</strong> duringnegotiati<strong>on</strong>s, <strong>and</strong> other social factors such as inertiaam<strong>on</strong>g pers<strong>on</strong>nel. Driving forces have been ec<strong>on</strong>omicfactors such as an aim for lower costs <strong>and</strong> means ofc<strong>on</strong>trol, as well as envir<strong>on</strong>mental values. In a study witha similar aim, Fors [16] found the same results, thattechnical aspects are seldom barriers. Informati<strong>on</strong>during negotiati<strong>on</strong>s, stable c<strong>on</strong>tracts <strong>and</strong> theimportance of involving the pers<strong>on</strong>nel at the plants inthe process are important factors. It is also importantthat the cooperati<strong>on</strong> benefits both parties. Grönkvistet al.[17] reached a similar c<strong>on</strong>clusi<strong>on</strong> in a study thatemphasises the importance of the willingness of people<strong>on</strong> both sides to cooperate. The main advantages ofthe cooperati<strong>on</strong> are lower costs <strong>and</strong> benefits for theenvir<strong>on</strong>ment, while the main disadvantages are lessflexibility as both parties work under c<strong>on</strong>tracts.Historically, interc<strong>on</strong>necti<strong>on</strong> of technical systems hasbeen seen in the theory of Large Technical Systems as<strong>on</strong>e way for systems to grow. Systems start in a localc<strong>on</strong>text, but when the technology is transferred to othergeographic areas, the systems grow <strong>and</strong> can then beinterc<strong>on</strong>nected as they often have grown into eachother. Interc<strong>on</strong>necti<strong>on</strong> of systems can also beexplained through the fact that larger systems have ahigher load factor <strong>and</strong> better ec<strong>on</strong>omic mix [18], [19],[20].4. RESULTS OF THE SCENARIOSThe results from the scenarios are presented inTable VI <strong>and</strong> Table VII.According to the optimisati<strong>on</strong> results, if betterc<strong>on</strong>nectivity is introduced, some ec<strong>on</strong>omic benefitsexist. In both cases the case with <strong>on</strong>ly existing plants inthe system <strong>and</strong> the case where the new plants areintroduced in the model (scenarios 2 <strong>and</strong> 5) thedecrease in system costs would be about 10 milli<strong>on</strong> €annually. The potential for decrease of theenvir<strong>on</strong>mental impact of the system is more notable. Ifbetter c<strong>on</strong>nectivity were introduced in the systemtoday, the biomass share in total fuel use would be 8%higher <strong>and</strong> c<strong>on</strong>sequently both the local emissi<strong>on</strong>s ofCO2 (LECO2) <strong>and</strong> GECO2 of the system would beabout 0.25 milli<strong>on</strong> t<strong>on</strong>s lower annually. The potential fordecrease of GECO2 of the system if better c<strong>on</strong>nectivityis introduced after the building of new CHP plants(scenarios 4 <strong>and</strong> 5) is 0.4 milli<strong>on</strong> t<strong>on</strong>s annually.Table VI. – Results for the scenarios – ec<strong>on</strong>omic aspects.Sc.AnnualsystemcostsCHP heatproducti<strong>on</strong>shareElectricityAnnualproducti<strong>on</strong>Theincomefromelectricitymilli<strong>on</strong> € % TWh Milli<strong>on</strong> €1 258 47 2.30 1222 245 47 2.31 1253 243 48 2.35 1504 204 58 2.96 1645 192 62 3.15 1766 403 4247 344 100 6.39 4828 546 2819 504 100 17.66 777As the electricity price increases, the system wouldearn extra income from the electricity sold, <strong>and</strong> thus theheat producti<strong>on</strong> cost would decrease (scenarios 1, 3).This gives an even bigger advantage to CHPgenerati<strong>on</strong> compared with pure heat producti<strong>on</strong>.291
Table VII. – Results for the scenarios – envir<strong>on</strong>mentalaspects.Sc.Biomassshare inthesystemLECO 2% [milli<strong>on</strong>t<strong>on</strong>s/year]1 48 2.50 0.322 52 2.25 0.063 49 2.46 0.23GECO 2 ofthe system[milli<strong>on</strong>t<strong>on</strong>s/year]4 52 2.12 – 0.695 55 1.91 – 1.0867 100 0 – 6.0789 0 7.80 – 8.98The income from the electricity sold in scenario 3 isabout 30 milli<strong>on</strong> € higher then the income in scenario 1,<strong>and</strong> because of that the system cost is 6% lower. Thedifference between the electricity producti<strong>on</strong> inscenarios 1 <strong>and</strong> 3 is not significant, but in spite of that,the decrease of GECO2 of the system in scenario 3 isalmost 100%. The reas<strong>on</strong> is higher biomass share inthe total fuel used in the system in scenario 3, <strong>and</strong>c<strong>on</strong>sequently lower LECO2 in the system.The introducti<strong>on</strong> of three new plants in the system(scenario 4) would lead to a significant reducti<strong>on</strong> of theheat producti<strong>on</strong> cost compared with the system today.The income from the electricity sold would be 35%higher <strong>and</strong>, as a result, the annual system costs wouldbe 20% lower. This c<strong>on</strong>firms that heat producti<strong>on</strong> inCHP plants has a major influence <strong>on</strong> the ec<strong>on</strong>omicefficiency of the district heating system. With theassumpti<strong>on</strong> that the electricity produced would replacethe marginal electricity in the European electricitymarket, reducti<strong>on</strong> of GECO2 of the system would bealmost 1 milli<strong>on</strong> t<strong>on</strong>s annually.If all plants in the system are BCHP (scenarios 6–8) orNGCHP (scenario 9) plants, the annual electricityproducti<strong>on</strong> would be as high as 4.5% <strong>and</strong> 12% of thetotal electricity producti<strong>on</strong> in Sweden, which was about145 TWh in the year 2008 [1]. The annual income fromthe electricity sold in those scenarios is much higherthen the income from the electricity sold in the otherscenarios. In the scenarios with typical Europeanelectricity price, (scenarios 7–9), the income from theelectricity sold is 220%, 90% <strong>and</strong> even 420% higherthen in scenario 3, where the system with the existingplants is analysed with the higher electricity price. It isThe <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>ia292also notable that in scenarios 6, 7 <strong>and</strong> 9 the annualincome from electricity is higher than the annualsystem costs. However, since all plants in thosescenarios are new, the total investments are high.Because of that, if the analysed time period is just10 years, the annual system costs are much higherthen today.The lowest GECO2 of the system are in the scenarioswhere all plants in the system are BCHP (scenarios 6-8) <strong>and</strong> NGCHP (scenario 9) plants. In those two casesGECO2 in Sweden, which is about 60 milli<strong>on</strong> t<strong>on</strong>sannually [21] would be reduced by approximately 9%<strong>and</strong> 15% respectively, with the assumpti<strong>on</strong> that theelectricity produced would replace the marginalelectricity. LECO2 in the system is highest in thescenario where all plants are NGCHP but at the sametime GECO2 of the system is lower because of the highelectricity producti<strong>on</strong>.5. RESULTS FROM THE INTERVIEWSIn the following secti<strong>on</strong> the results from the interviewswill be presented. The interc<strong>on</strong>necti<strong>on</strong>s between thesystems make it possible to cooperate regarding heatproducti<strong>on</strong> <strong>and</strong> distributi<strong>on</strong>.5.1 The system todayThe interviews show that the interc<strong>on</strong>necti<strong>on</strong>s have ahistorical background. Most of them were made duringa period when a regi<strong>on</strong>al energy company calledSTOSEB (Greater Stockholm Energy Company)existed, where the municipalities, which to a largeextent owned the systems then, were represented. Themain reas<strong>on</strong> for the interc<strong>on</strong>necti<strong>on</strong>s then was supplysecurity. When the systems were interc<strong>on</strong>nected, thecompanies could help each other during stops, <strong>and</strong> thisis still the case. All representatives say this, <strong>and</strong> therepresentative from Söderenergi expresses it this way:…At the same time it is a comm<strong>on</strong> good. It is good thatthe systems are interc<strong>on</strong>nected. It is an extra security if<strong>on</strong>e plant should stop for some reas<strong>on</strong> [22].The advantages historically <strong>and</strong> foremost today arealso ec<strong>on</strong>omic. The emissi<strong>on</strong>s trading makes itadvantageous, since the companies can use theproducti<strong>on</strong> better by making ―capacity trades‖ <strong>and</strong> evenout the producti<strong>on</strong> cost between the companies:We see that we can use existing producti<strong>on</strong> moreeffectively. Most of the trades are a trade to mid-priceso to speak. You can say that we split the profit.Capacity trading (effektköp) is also comm<strong>on</strong>. Like wehave here with Söderenergi, we have partlya producti<strong>on</strong> cooperati<strong>on</strong> <strong>and</strong> partly we buy capacity.They have more capacity than they need today [23].
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academic access is facilitated as t
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