Excess heat could meet approximately 25% of the heat demand in the European building sector. However, the recovery of excess heat is low, which has been attributed to financial, technical and organisational barriers. There is limited information on the perceived risk exposure of excess heat recovery at different points in time, before undertaking the investment or after having undertaken the investment, and at locations with existing district heating networks or not (greenfield). This is unfortunate because experience can enable new collaborations. In this paper, we compare the perceived risk exposure of four greenfield and two ongoing industrial excess heat recovery collaborations. In doing so, we confirm previously identified barriers, such as difficulty to agree on the value of excess heat, the risk of a single heat source and lack of regulation. We also find that, with experience, changes to the excess heat-generating processes are increasingly important, whereas, greenfield sites find the lack of ‘know-how’ to be risky. However, the main conclusion from this paper is that the risks of industrial excess heat recovery collaborations appear to be over-emphasised. In fact, risk exposure of industrial activity can be reduced through industrial waste heat recovery as excess heat is characterized by limited price fluctuations and new environmental requirements from customers and authorities can be met proactively. Combining experience with a standardised excess heat recovery policy should significantly reduce the risk exposure of new collaborations. © 2022 Published by Elsevier Ltd.

The Author(s)There are currently several challenges facing the Swedish district heating (DH) industry. To address these challenges, new business models are needed. One such model involves the widespread use of Heat Pumps (HPs) in DH networks (DHN). However, HPs compete with other more conventional heat sources and their inclusion in DH business models is not yet common. In this study, efficiency gains impacting cost and CO2 emissions for HP inclusions are compared to the current state of affairs and different business model concepts are developed and discussed for a typology of DH systems. The results of this analysis show that using HPs in DHNs can be profitable, achieving maximum cost savings of 33% and emissions savings of 75% (CO2). However, the shift needed in business models for successful HP/DH combination—in spite of significant cost and emission savings potential—will be a significant challenge, considering: (i) the tendency of Swedish DH companies to see HPs as competition and something to avoid, (ii) an overall low level of maturity in terms of service provision, (iii) an arms-length distance to customers (co-creation of value is rare), and (iv) a difficulty in capitalising the value of green technology adoption. © 2021 

The district heating (DH) industry has been characterized by continuous innovation for several decades, but there is limited knowledge on the characteristics of the sector’s innovation activities, arguably the most important information for understanding how the sector can continue to develop and further support the energy transition of society. We perform a systematic literature review (SLR) to identify the types of innovation, the levels of innovation and the relation between different innovations in the DH sector. A total of 899 articles are analyzed and coded into eight groups: fuel, supply, distribution, transfer, DH system, city system, impact and business. Most of the articles (68%) were identified in the groups: “supply”, “DH system,” and “impact”, with a focus on DH from a system or production perspective and its environmental impact. We find that there is limited research on DH firms” challenges, including management perspectives, such as asset management and customer focus. Despite this potential, we find only a limited number of articles related to innovation. Not much scholarly attention has been given to areas of large cost-saving, especially capital cost. © 2021 by the authors. Licensee MDPI, Basel, Switzerland.

This guidebook was written between 2018 and 2021 by seventeen authors that used approximately 15 000 hours of work within the IEA DHC TS2 annex. The content is based on more than 250 literature references and 165 inspiration initiatives to obtain lower temperatures in buildings and heat distribution networks. The author group wrote 40 internal documents about early implementations of low-temperature district heating. Fifteen of these early implementations are presented in this guidebook.The guidebook contains aggregated information about the main economic drivers for low-temperature district heating. It shows how to obtain lower temperatures in heating systems inside existing and new buildings, as well as in existing and new heat distribution networks. An applied study of a campus system in Darmstadt shows the possibility of reducing temperatures in an existing heat distribution network with rather high temperatures. The competitiveness of low-temperature district heating is explored by analysing business models and heat distribution costs. Early adopters of low-temperature district heating are presented by examples and by identified transition strategies. Five groups of network configurations with fourteen variants are presented to be used for low-temperature district heating. Finally, all 165 identified inspiration initiatives and all 137 locations mentioned are listed.

Low temperature district heating is recognized as a key technology for the (cost-) efficient integration of renewable energy and waste heat sources in our energy systems. Several studies indicate that a deployment of local district heating schemes is a key measure for reaching the politically set climate goals. Further, implementation of low temperature district heating systems are recommended for taking maximum advantages of synergies with other sectors for decarbonization of the heating sector. Within the IEA DHC Annex TS2 project already realized low temperature community energy system concepts as well as planned or designed systems are identified and visualized. Furthermore, projects showing an innovative heat use or operation of buildings are also included in the analyses. The different projects are assessed and compared. The presentation of the demonstrators is set up in such a way that knowledge is generated about the indoor heating system, the district heating system and of the competitiveness of low temperature district heating systems, giving the evidence that these systems are feasible, efficient and reliable under various boundary conditions. The demonstrators further indicate that there are existing challenges, where further research on innovative district heating concepts for integrating decentral feed-in of renewable energy is required. The demonstrators included in the IEA DHC Annex TS2 are analysed in regard to which elements of new knowledge they can generate. For each demonstrator there are specific innovations in focus. Furthermore, the case studies show that the related business models for the utilities change when system temperatures are lowered. The paper presents and discusses the results from current research work within of the IEA DHC Annex TS2 on Implementation of Low Temperature District Heating Systems (Averfalk et al., 2021; Annex TS2, 2021 [1]). © 2021 The Author(s)

This paper addresses the implications on the business model of district heating companies of the technology shift targeting lower temperatures in the distribution network. Lower temperatures are valuable, since heat supply to low-energy buildings with low grid losses is facilitated. In addition, low-temperature heat sources can be integrated into an efficient energy system, improving the environmental performance of the industry. This technology shift opens a window of opportunity to update the business logic in the sector, since the lower temperatures allow a diversification of the value proposed to customers and a closer, long-term customer relationship. The extent to which the business model is impacted by the shift is not known. Thus, six cases of low temperature implementation from five European countries have been identified. Interviews with the project managers of the implementations show that the six cases made limited change to the primary business model when making the technological shift. Consequently, there is an unexplored potential for updating the value proposition and the customer relationship.

Background: The Swedish district heating sector is successfully transitioning to a low-carbon energy system. The industry has expanded since the 1950s and currently meets more than half the Swedish heat demand. The heat market was deregulated in 1996, and thereafter, companies have been exposed to an increasing number of challenges related to technology, institutional factors and market. Since municipal ownership dominates, municipal companies must manage these challenges to ensure future competitiveness. However, theory suggests that business change is difficult when the current model is still working. To date, Swedish district heating companies have revisited their price models and customer perceptions. There is limited knowledge on how the business challenges are managed and on the management strategy’s impact on the business. In this paper, new knowledge is generated regarding how the customer and resource-oriented sides of the municipally owned district heating business in Sweden are changing. Methods: A case study approach was adopted. Data were collected by interviews and by review of the national research programme on district heating (Fjärrsyn). The programme served as a proxy for frontline research on Swedish district heating. The data were analyzed through the business model canvas framework. Results: Changes to meet external pressures are identified on the customer side of the business model, but changes are also spreading to other parts of it. However, the key resource component (distribution networks and production unit) and its logic of economics of scale are unchanged and dominate. The logic is not compatible with shrinking heat demand; nevertheless, it is preferred. Conclusions: It is concluded that external challenges have resulted in changes in the customer side of the business model. However, the largest challenge is the transformation of key resources. Accounting for external challenges extends the life of the current business model, but it is not increasing competitiveness. The prolonged life creates a window of opportunity for the companies to begin the needed transformation of their key resources. If the transformation is successful, district heating will have a role in the future energy system. If the transformation is not undertaken, the future is less certain. © 2018, The Author(s).

The recovery of industrial excess heat for use in district heating systems can be characterised by great political interest, high potential, low utilisation and often high profitability. These characteristics reveal that barriers are present for its greater utilisation. One identified barrier is the risk that industries with excess heat can terminate their activities, resulting in the loss of heat recovery. Excess heat recovery investments are therefore sometimes rejected, despite them being viable investments. The risk of termination of industrial activities has been assessed by a study of 107 excess heat recoveries in Sweden. The analysis verified that terminated industrial activities are one of two major explanations for terminated heat delivery. The other major reason is substitution by another heat supply. These two explanations correspond to approximately 6% of all annual average heat recoveries. The identified risk factors are small annual heat recovery and the use of heat pumps when low-temperature heat was recovered. The main conclusion is that a small proportion of industrial heat recovery has been lost in Sweden because of terminated industrial activities. The risk premium of losing industrial heat recovery for this specific reason should be considered to be lower than often presumed in feasibility studies. © 2018 Elsevier Ltd

In Sweden, district heating meets currently above half of the heat demands in buildings. District heating research in Sweden has a long tradition dating back to 1975. The latest research program period included 34 projects and was executed between 2013 and 2017. In this paper, a synthesis is performed on the Swedish research frontier by assessing these recent research projects. The three study purposes was to provide an overview over the executed projects, to identify new research questions, and to identify future challenges to the Swedish district heating industry. The assessment was based on six defined key areas, such as demand, resources, system frameworks, technology, cold supply, and international perspective. The subsequent content analysis was performed from three perspectives: the perspective of energy system transition, the customer perspective, and the sustainability perspective. Final conclusions include the three future challenges for the Swedish district heating industry. These are future strategies to communicate the value of district heating, vision for district heating beyond the transition to fossil free supply, and technology development for efficient use of low temperature heat sources. © 2018 Elsevier Ltd

Bakgrunden till studien är att nya förutsättningar genom energieffektivisering, konkurrens från värmepumpar och nya krav på kundsidan gör en modernisering av fjärrvärmeverksamhet nödvändig. En del av denna modernisering är att kunna dra nytta av de fördelar som lägre temperaturer i näten medför. Därtill skapas genom den nya tekniken förutsättningar för att ta hand om värmekällor som idag inte utnyttjas (t.ex. värme från kylprocesser och annan infrastruktur såsom värme från avloppsvatten och värme från kollektivtrafik).

Befintlig teknik är beprövad och bygger på att det finns ekonomiska incitament att förbränna biobränsle och avfall. Steget till att pröva en ny teknik där andra värmekällor och en ny gränsdragning gentemot kund blir nödvändig är därför stort och förenat med ett antal frågor. Det är just de frågor som uppkommer i ett fjärrvärmeföretag inför implementering av 4e generationens fjärrvärmeteknik som projektet försöker identifiera. Det blir dock så att enbart en del av frågorna besvaras genom att studien har ett avgränsat fokus. Fokus är på jämförelse mellan ett 3GDHtvårörsystem och ett 4GDH-trerörsystem i ett sekundärnät i ett nybyggnationsområde.

I projektet simuleras hur utfallet blir för olika parametrar om man hade valt att implementera 4e generationens teknik istället för 3e generationens teknik.

Resultaten påvisar att:

• 4e generationens lösning ökar energieffektiviteten i byggnader, detta främst genom att behovet av varmvattencirkulation försvinner.• Beaktas enbart distributionsförluster i näten så är 4e generationen mer effektiv än 3e generationen.• Genom lägenhetsväxlaren i 4e generationens lösning så elimineras risken för Legionella helt. En möjlig barriär för 4e generationens teknik består dock i att boverkets byggregler inte är konstruerade för att varmvattencirkulation inte finns.• Lägenhetsväxlarna innebär en kostnad per lägenhet vilket begränsar lösningens kostnadseffektivitet jämfört med en större värmeväxlare i fastighetens bottenplan. Idag är 4e generationens teknik lämpad för fastigheter med 10-15 lägenheter, är det fler lägenheter blir 4e generationens lösning dyrare än den konventionella 3e generationens lösning.• En viktig aspekt med 4e generationens lösning att värmeförlusten från huset förflyttas från fastighetsägaren till fjärrvärmeföretaget, genom att värmeleverans sker till varje lägenhet och inte vid husvägg. Initialt kan sådan börda på fjärrvärmeföretaget verka negativ med avseende på kostnad. Diskussionerna i projektet mynnade ut i att parterna enas om att affären blir mer rättvisande och att fastighetsägaren får ökad insyn i värmeförbrukningen vilket, med rätt affärsmodell, kan skapa ökat förtroende och en möjlighet att dela på förlusten mellan de två parterna.

Projektet har omfattat löpande dialog med EKSTAs VD vilket varit värdefullt för att skapa förståelse kring fastighetsägarens perspektiv och frågor rörande 4e generationens teknik. Därtill har en workshop med EKSTAs driftspersonal hållits för att diskutera relevansen i de resultat som tagits fram. I projektet ingår BengtGöran Dalman med över 35 års erfarenhet av fjärrvärmeverksamhet vid Göteborg Energi. Projektets verklighetskoppling leder till slutsatsen att det inte föreligger någon särskild driftsproblematik för implementering av 4e generationens system.

Som en egen del i projektet uppmärksammas den diskussion som förs i branschen kring möjligheten att dra nytta av billig el, främst under perioder då det blåser mycket och det blir ett överskott av el i elnätet. I studien analyseras möjligheten att inte använda en konventionell pelletspanna som tilläggsvärmekälla utan en eldriven panna. Resultaten visar att med dagens styrning genom skatter och avgifter så är det inte möjligt att dra nytta av att det förekommer perioder med mycket lågt elpris. Rådande regelverk stödjer istället installationer såsom pelletspannor.

© ENERGIFORSK