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Profitability of sparse district heating
Halmstad University, School of Business and Engineering (SET), Biological and Environmental Systems (BLESS), Energiteknik.ORCID iD: 0000-0001-9069-0807
Chalmers University of Technology, Gothenburg, Sweden.
2008 (English)In: Applied Energy, ISSN 0306-2619, E-ISSN 1872-9118, Vol. 85, no 9, p. 867-877Article in journal (Refereed) Published
Abstract [en]

The expansion of district heating into areas of low heat densities (heat sparse areas) constitutes a challenge due to the higher distribution costs. The profitability of sparse district heating has been analysed from actual investments in 74 areas with 3227 one-family houses connected to district heating between 2000 and 2004 in Göteborg, Sweden. The profitability was estimated from a probable price model, a typical marginal heat generation cost, and the investments from the actual connections made. The analysis identified factors as the linear heat density and heat sold per house explaining the main variations in profitability. The profitability analysis was concluded with a competition analysis. The main conclusion is that sparse district heating is possible when reaching low investment costs for the local distribution network and low marginal costs for the heat generation. In Sweden, the general competitiveness of sparse district heating is facilitated by the high consumption taxes for fuel oil, natural gas, and electricity. Hence, it should be more difficult to introduce sparse district heating in other countries with low energy taxes. © 2008.

Place, publisher, year, edition, pages
Elsevier, 2008. Vol. 85, no 9, p. 867-877
Keywords [en]
Distribution costs, District heating, Low heat density, Competition; Electric power generation, Investments, Mathematical models
National Category
Energy Engineering
Identifiers
URN: urn:nbn:se:hh:diva-6032DOI: 10.1016/j.apenergy.2008.01.006ISI: 000256629100007Scopus ID: 2-s2.0-42749090169OAI: oai:DiVA.org:hh-6032DiVA, id: diva2:354029
Available from: 2010-09-29 Created: 2010-09-29 Last updated: 2017-12-12Bibliographically approved

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Werner, Sven

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CiteExportLink to record
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Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf