The effect of price regulation on the performances of industrial symbiosis: a case study on district heating

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Abstract

This study of the district heating system of Aalborg (Denmark) analyses how fiscal instruments affect the extent excess heat recovery helps reduce the carbon footprint of heat. It builds on a supply-and-demand framework and characterizes the changes in excess heat supply with consequential life cycle assessment in reference to one gigajoule distributed. The heat supply
curve is defined through ten scenarios, which represent incremental shares of excess heat as the constraints of the said legal instruments are lifted. The heat demand curve follows the end-users’response to price changes. The most ambitious scenario doubles the amount of excess heat supplied and reduces the heat carbon footprint by 90% compared to current level, for an end-user
price increase of 41%. The price increase results from a higher supply of excess heat at a higher price and an unchanged purchase cost from the coal-fired CHP plant despite a lower supply. This highlights the necessity of a flexible supplier when the share of recovered excess heat is high.
Original languageEnglish
JournalInternational Journal of Sustainable Energy Planning and Management
Volume14
Pages (from-to)39-56
Number of pages18
ISSN2246-2929
DOIs
Publication statusPublished - 2017

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district heating
District heating
symbiosis
heat
carbon footprint
regulation
performance
Carbon footprint
supply
life cycle
coal
cost
price
effect
Hot Temperature
scenario
life cycle assessment
Waste heat utilization
demand
Denmark

Keywords

  • District heating
  • Excess heat
  • Heat recovery
  • Industrial symbiosis
  • Life cycle assessment

Cite this

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title = "The effect of price regulation on the performances of industrial symbiosis: a case study on district heating",
abstract = "This study of the district heating system of Aalborg (Denmark) analyses how fiscal instruments affect the extent excess heat recovery helps reduce the carbon footprint of heat. It builds on a supply-and-demand framework and characterizes the changes in excess heat supply with consequential life cycle assessment in reference to one gigajoule distributed. The heat supplycurve is defined through ten scenarios, which represent incremental shares of excess heat as the constraints of the said legal instruments are lifted. The heat demand curve follows the end-users’response to price changes. The most ambitious scenario doubles the amount of excess heat supplied and reduces the heat carbon footprint by 90{\%} compared to current level, for an end-userprice increase of 41{\%}. The price increase results from a higher supply of excess heat at a higher price and an unchanged purchase cost from the coal-fired CHP plant despite a lower supply. This highlights the necessity of a flexible supplier when the share of recovered excess heat is high.",
keywords = "District heating, Excess heat, Heat recovery, Industrial symbiosis, Life cycle assessment",
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AB - This study of the district heating system of Aalborg (Denmark) analyses how fiscal instruments affect the extent excess heat recovery helps reduce the carbon footprint of heat. It builds on a supply-and-demand framework and characterizes the changes in excess heat supply with consequential life cycle assessment in reference to one gigajoule distributed. The heat supplycurve is defined through ten scenarios, which represent incremental shares of excess heat as the constraints of the said legal instruments are lifted. The heat demand curve follows the end-users’response to price changes. The most ambitious scenario doubles the amount of excess heat supplied and reduces the heat carbon footprint by 90% compared to current level, for an end-userprice increase of 41%. The price increase results from a higher supply of excess heat at a higher price and an unchanged purchase cost from the coal-fired CHP plant despite a lower supply. This highlights the necessity of a flexible supplier when the share of recovered excess heat is high.

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