THIS RESULTS
IN EXPENSIVE,
UNSUSTAINABLE
ENERGY
A HUGE
AMOUNT
OF ENERGY
IS WASTED
IN EUROPE
HEATING ENERGY AND
EMISSIONS TRADING
HEAT IS WASTED
IN EUROPE
The heating need of buildings
in the EU is about 3,300 TWh.
The majority of this is propertyspecific gas and oil heating,
which is not burdened by the
emissions trading scheme,
unlike district heat and
electricity.
The EU member states use
about 14,000 TWh of energy.
At the same time, 4,600 TWh
of energy is wasted mainly as
heat lost into water and air in
conversion and distribution
processes.
coal
natural gas
4,600 TWh
WASTED
renewables
75%
OF HEATING
ENERGY IS
OUTSIDE
EMISSIONS
TRADING
electricity
district heat
14,000 TWh
INTO USE, 3,300
TWh OF WHICH
FOR HEATING
SOURCE: EUROPEAN COMMISSION
SOURCE: HEAT ROADMAP EUROPE, AALBORG UNIVERSITY
oil
A HUGE
AMOUNT
OF ENERGY
IS WASTED
IN EUROPE
IF WASTE ENERGY
WAS UTILISED, IT
WOULD HEAT UP
THE WHOLE OF EUROPE
Europe is squandering 4,600 TWh of
energy as waste heat from energy
production. This is 1.4 times the
amount of energy needed for the
heating of buildings in the EU
member states.
By utilising the waste heat in district
heating networks, the energy need
could be reduced considerably. This
would also save the world’s energy
resources, improve each country’s
own energy security, strengthen national economies and reduce climate
emissions. Without compromising
one iota of comfort.
DISTRICT HEAT&
COGENERATION
HAVE BEEN
FORGOTTEN
28 €
PRICE TREND OF EMISSION ALLOWANCES
SOURCE: SKM SYSPOWER
EUA-Dec
€/TON CO 2
14€
2009
2010
17€
13€
2011
2012
2013
2014
8€
The European Union is on the
way towards a low-carbon energy
future, and it has set joint energy
policy targets. Different member
states have adopted different
kinds of steering methods
depending on their national
preconditions.
When selecting the steering
methods, district heat and
combined heat and power
generation (CHP) have been
overlooked as tools, despite
their great potential. The bill
is paid by us, the consumers,
in the form of high energy costs.
1
20-20-20
DECISIONS
Energy-efficiency and
renewable energy targets
for member states are
overlapping with the
climate target.
5€
4
3
2
REGULATION
TO PROMOTE
ENERGY
EFFICIENCY
Sector-specific
regulation does not
achieve the optimal
result: most costeffective solutions,
which are most
sensible overall.
In the EU, a huge
amount of energy is
wasted in the system,
which consequently
produces unnecessary
CO2 emissions.
SUPPORT
FOR
RENEWABLE
ENERGY
EMISSIONS
TRADING
HAS NO
STEERING
IMPACT
There are too many
emission allowances on
Production and
the market, which keeps
investment subsidies
their price low. Cheap
disturb the emissions
emission allowances
market and the
do not steer towards
electricity and heating
energy efficiency, a
market, which therefore reduction in the use of
cannot operate to their
fossil fuels, or utilisaoptimal capacity.
tion of low-emission
technologies such
In 2014, renewable
as district heat.
energy was supported
in the EU by EUR
The problem is
45–50 billion.
enhanced by the fact
that the majority of
heating is outside the
emissions market and is
therefore not covered
by policy measures
on emissions.
5
PROBLEMS
IN THE
MARKET
No electricity production
– including combined
heat and power gener­
ation – is profitable when
the price of electricity
does not meet the
production costs.
Building specific heating
is excluded from the
emissions market and
is not covered by policy
measures on emissions.
The market does not treat
all operators equally.
ELECTRICITY PRICE TREND IN GERMANY
SOURCE: EUROSTAT
CENT/kWh
30
25
20
15
10
5
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
ELECTRICITY PRICE FOR HOUSEHOLDS
PRODUCER PRICE
6
PREVIOUS
SOLUTIONS
ARE
MENDED
WITH A
PATCHWORK
QUILT OF
DECISIONS
Patching up of
problems focuses
attention on less
important issues.
Opportunities in
combined heat and
power generation or
district heating are
not noticed or
realised.
7
THIS RESULTS
IN EXPENSIVE,
UNSUSTAINABLE
ENERGY
DISTRICT HEAT
AND COMBINED
HEAT AND POWER
GENERATION ARE
AN UNTAPPED
OPPORTUNITY
In most countries, energy
policy carried on since the
20-20-20 decisions has
not encouraged companies
to invest in district heat or
combined heat and power
generation. Distortions in the
heating market reduce the
attractiveness of district heat
to customers.
A HUGE
AMOUNT
OF ENERGY
IS WASTED
IN EUROPE
WHAT CAN BE DONE?
WASTE HEAT
UTILISED AS
DISTRICT
HEAT
INVESTING
IN SUSTAINABLE
ENERGY
BETTER ENERGY SYSTEM
THROUGH COGENERATION
AND DISTRICT HEAT
Measures to achieve a lowcarbon Europe are currently
under preparation. When seeking
a solution in Europe, we must not
dismiss locally operated district
heat and district cooling.
WASTE HEAT
UTILISED AS
DISTRICT
HEAT
A competitive heating market
operates efficiently without needing any production sub­sidies.
However, support for tech-­ nological development, research and
innovations is needed.
The selection of practical means
in companies is directed by cost
effectiveness, utilisation of
technological development and
the price of carbon dioxide.
In this kind of an operating
environment, energy companies­
can make investments that
improve energy security, reduce
emissions and benefit the
customers.
IT IS TIME TO
IDENTIFY THE
PROBLEMS AND
TAKE MEASURES!
1
TO IDENTIFY
THE POSSIBILITIES OF
THE HEATING
AND COOLING
SECTOR and to
develop related
statistics and
to include heating
and cooling as part
of the key EU energy policy next to
electricity and fuels.
2
TO REMOVE
OBSTACLES
TO DISTRICT
HEATING,
DISTRICT
COOLING
AND CHP, i.e.
to remove barriers
to building a district
heat and district
cooling infrastructure in member
states and cities and
to relieve the emissions trading sector
of overlapping emissions control, such
as CO2-based
taxation.
IC
ST
TR
RI
EC
CT
EL
HE
AT
COMBINED HEAT
AND POWER
GENERATION IS
STILL UNCOMMON
IN MANY EU
COUNTRIES. THE
ENERGY NEED AND
EMISSIONS CAN
BE REDUCED
WITH CHP.
IT
3
TO MAKE
RENEWABLE
ENERGY EQUAL
regardless of the
producer, production
location or production
method.
4
TO SET
A CLEAR
TARGET FOR
REDUCING CO2
EMISSIONS, i.e.
include propertyspecific heating in
emissions trading,
and
to create an
impartial competition environment
for the heating
market.
DI
Y
D H E AT
C O M B IN E
ER
AND POW
N
IO
T
A
GENER
5
TO HARMONISE
AND PHASE
OUT PRODUCTION SUBSIDIES
USED IN DIFFERENT MEMBER STATES
and to replace
them with tech­­n­ology-neutral support for research,
innovation activities
and commercialisation of new
technology.
INVESTING
IN SUSTAINABLE
ENERGY
DISTRICT HEAT
AND COOLING
AS A SOLUTION
WASTE HEAT
UTILISED AS
DISTRICT
HEAT
Different parts of the energy
system can be optimised with
the district heating and cooling
system. With the network,
different heat sources can
be introduced in the system,
the fluctuation of supply and
demand can be balanced, and
the energy production methods
can be optimised to different
situations. For customers,
district heating and cooling is
an interesting and competitive
alternative.
FLEXIBILITY TO
ELECTRICITY GENERATION
With combined heat
on need and other
and power generation, electricity production.
the volume of electCogeneration can be
ricity generation can used for balancing the
be adjusted according
fluctuation of wind
to the consumptiand solar power.
DISTRICT HEAT
AS A SOLUTION
Energy production and consumption and
their timing can be optimised by utilising
the possibilities of district heating and
cooling. That way, it is possible to utilise the
most favourably priced and best sources of
heat and cooling in terms of the climate. Various technologies can be utilised optimally
on both a small and large scale.
MORE RENEWABLES
District heating and
cooling is the most
efficient method of
increasing renewable energy in
urban districts. Many
renewable energy
solutions are not economically justifiable to
be installed separately
for each building.
With district heating
and cooling, customers will have a wide
range of renewable
energy forms at their
disposal, from solar
and bioenergy to
heat pumps and
waste-to-energy.
COMFORT AND SECURITY
Customers will also
need heat and cooling
in the future. Energy
is needed for space
heating and hot tap
water, and for space
cooling. Although
heating and cooling
needs can be increasingly varied and
unexpected, district
heating and cooling
systems provide
effortless heat and
cooling on demand at
all times.
ALL ENERGY
IS UTILISED
Only with a district
heating and cooling
system, heat can be
transmitted from
where there is too
much of heat to
where it is needed.
Thermal energy from
electricity generation, industry and
properties, which
would otherwise be
unutilised, can be
captured and refined
into district heat.
A DISTRICT HEATING AND
COOLING SYSTEM CAN STORE
ENERGY AS HOT OR COLD WATER
IN UNDERGROUND
STORAGE TANKS.
Storage facilities built
in the district heating
and cooling networks
can be used for
storing surplus heat
or, for example, cheap
electricity generated
during periods of peak
output of solar and
wind power. These
storage facilities can
be used for reducing
energy production
that causes
emissions.
WASTE HEAT UTILISED AS DISTRICT HEAT!
Energiateollisuus ry
Fredrikinkatu 51–53 B
00101 Helsinki, Finland
Tel. +358 9 530 520
Finnish Energy Industries
Avenue de Cortenbergh 172
1000 Bruxelles, Belgium
Tel. +358 9 420 23 899
www.energia.fi