STUDY FOR THE EU27 by Aalborg University Halmstad University David Connolly Brian Vad Mathiesen Poul Alberg Østergaard Bernd Möller Steffen Nielsen Henrik Lund Urban Persson Daniel Nilsson Sven Werner Ecofys Germany GmbH PlanEnergi Jan Grözinger Thosmas Boersmans Michelle Bosquet Daniel Trier for Heat Roadmap Europe 2050 Presented by: name Why this study? the heating and cooling sector has largely been overlooked in all European Commission scenarios exploring the energy future towards 2030 and 2050. This study focuses on the future European heat and cooling market and its importance in terms of cost-savings, job creation, investments, and a smarter energy system. The EU is wasting energy (heat)… Energy Balance for the EU27 in 2010 (EJ) 80 70 60 Non-specified 50 Non-energy use 40 Transport 30 Electricity Heat for Industry 20 Heat for Buildings 10 0 Primary Energy Supply Final Consumption End Use … and over 6000 DH systems already exist in the EU The study Two Reports: HRE I (2012): Is DHC beneficial in a business-as-usual scenario? HRE II (2013): Is DHC beneficial in a low-heat demand scenario? Methology GIS Mapping Energy System BAU (References) District Heating Demands District Heating Alternatives District Heating Resources Results (PES, CO2, Costs) Many Energy Sources Urban areas (Heating Demands) Power and Heat Generation Waste Management Industrial waste heat potential Geothermal heat Solar Thermal the study indicates that the market shares for district heating for buildings can be increased to 30% in 2030 and 50% in 2050. Energy System Analyse Model Hydro water Hydro storage Hydro power plant Electricity storage system Import/ Export fixed and variable Electricity demand www.EnergyPLAN.eu RES electricity Cooling device PP Fuel Heat pump and electric boiler CHP Boiler Heat demand Heat storage RES heat H2 storage Cooling demand Electrolyser Transport demand Cars Industry Process heat demand HRE I (2012) Is DHC beneficial for the EU energy system in a business-as-usual scenario? HRE I (2012) Year 2030 & 2050: Steps 1 & 2 700 600 500 400 300 200 100 0 -100 IEA EP CPI HRE EP CPI HRE 12% DH 10% DH 30% DH 10% DH 50% DH with RE with RE 2010 2030 2050 Existing CHP & DH EU Energy Roadmap 2050 Additional CHP & DH Biomass Natural gas Oil Coal District Heating Production for Heating Buildings from 2010 to 2050 Nuclear CO2 Emission District Heating Production (TWh) 4000 3500 3000 2500 2000 1500 1000 500 0 CO2 Emissions (Mt) Primary Energy Supply (TWh) Primary Energy Supply & CO2 for Heating Buildings from 2010 to 2050 EP CPI vs. HRE RE 1 800 1 600 1 400 1 200 1 000 800 600 400 200 0 Boiler Solar thermal Geothermal heat Heat pumps Waste incineration 2010 2030 2050 Present 30% DH & 50% DH & 12% DH RE RE IEA HRE Industrial surplus heat Additional CHP Existing CHP HRE I (2012) Cost and Jobs In total cost are reduced by 14 Billion EUR in 2050 Additional investments of a total of 500 billion EUR Additional jobs from to 2013 to 2050: 8-9 million man-year in total Approx. 220,000 jobs. Annual EU27 Costs for Heating Buildings from 2010 to 2050 Annual Heating Building Costs (Billion Euro) Saved fuel costs of annual approx. 30 Billion EUR in 2050 Fuel Fixed operation costs Annual investment costs 140 120 100 80 60 40 20 0 IEA 2010 EP CPI HRE RE 2030 EP CPI HRE RE 2050 HRE I (2012) HRE I Conclusion: 50% DH and CHP Decrease primary energy supply and especially fossil fuels and CO2 LESS FUEL emissions Decrease annual costs of energy in Europe by approximately €14 Billion in 2050 LESS MONEY Create additional 220,000 jobs over the period 2013-2050 MORE EU JOBS Further integration of RES MORE RE HRE I (2012) HRE II (2013) Is DHC beneficial for the EU energy system in a low-heat demand scenario? Is DHC a good idea if we implement a lot of energy efficiency in the buildings? HRE II (2013) District Heating Supply for Residential and Services Buildings (TWh/year) EU-EE vs. HRE-EE DH Supply 1 800 1 600 1 400 Industry 1 200 Waste 1 000 Geothermal 800 Solar 600 Heat Pumps 400 Boiler 200 CHP 0 EU-EE HRE-EE 2030 EU-EE HRE-EE 2050 HRE II (2013) EU-EE vs. HRE-EE: Primary Energy Supply & CO2 Coal Oil Gas Biomass Waste RES 18 000 3 000 15 000 2 500 12 000 2 000 9 000 1 500 6 000 1 000 3 000 500 0 0 EU-EE (13% DH) HRE-EE (30% DH) 2030 EU-EE (13% DH) Carbon Dioxide Emissions (X, Mt/year) Primary Energy Supply (TWh/year) Nuclear HRE-EE (50% DH) 2050 HRE II (2013) Total Costs for Heating and Cooling in the Residential and Services Sectors (B€/year) EU-EE vs. HRE-EE: Heat & Cooling Costs -15% End-Use Energy Efficiency Investments Cooling System Investments Fuel Heating System Investments Centralised Electricity & Heat Plants CO2 800 700 600 500 400 300 200 100 0 EU-EE (13% DH) HRE-EE (30% DH) EU-EE (13% DH) HRE-EE (50% DH) HRE II (2013) Renewables and Energy Efficiency Additional Renewables 100 TWh Geothermal 100 TWh large-scale solar 65 TWh wind (due to a smarter energy system) Context: 2050 total heat is 2600 TWh Energy Efficiency Demand side is extremely important, but eventually it will become expensive Supply side also has many options: PP converted to CHP 100 TWh surplus industrial heat 200 TWh heat from waste incineration HRE II (2013) Main Conclusions District heating is an attractive solution in areas with a high heat density District heating can be compatible and competitive with energy efficiency measures Heat reductions in buildings can be combined with district heating at lower cost HRE I Conclusions If we continue under a business-as-usual scenario, then district heating can: Reduce the PES Reduce the CO2 emissions Reduce the costs of the energy system Creation of local jobs Use more renewable energy HRE II Conclusions If we implement ambitious energy efficiency measures, then district heating will: Meet the same goals: Utilise the same amount of fossil fuels Enable the same CO2 emission reductions BUT, Cost approximately 15% less HRE III HRE III - 20?? Is DHC beneficial for the EU energy system in a ??? scenario? RESEARCH TO BE CONTINUED… Develop national plans that connect the local (mapping) and EU (modelling) results. Optimise the EU energy system by reducing baseload electricity and developing more smart energy system technologies Create an electric heating scenario for the EU27 Thank you Need a copy of the report? www.heatroadmap.eu