Heat Roadmap Europe 2050 STUDY FOR THE EU27 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 Why this study? The heating and cooling sector has largely been overlooked in all scenarios exploring the energy future towards 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 Existing Studies Existing reports: Generalscenario Consensus: ”Combined heat & power (CHP) and Fail to provide proper analysis district heating (DH) are important” of heating and cooling Have a too low time and geographical resolution to model . . . but fail to quantify to which extent the realitiesthese of the energy market, DHC options can be used in especially the future energy system . . . Acknowledge the importance of DHC until 2030/2050, but Assume high shares of electric heating, low heat The European Commission in theand Energylow Roadmap 2050 communication: consumption, shares of DHC by 2050 “An analysis of more ambitious energy efficiency measures and costoptimal policy is required. Energy efficiency has to follow its economic potential. This includes questions on to what extent urban and spatial planning can contribute to saving energy in the medium and long term; how to find the cost-optimal policy choice between insulating buildings to use less heating and cooling and systematically using the waste heat of electricity generation in combined heat and power plants.” The EU is wasting energy (heat)... Energy Balance for the EU27 in 2010 (EJ) 80 70 60 Non-specified Non-energy use Transport Electricity Heat for Industry Heat for Buildings 50 40 30 20 10 0 Primary Energy Supply Final Consumption End Use … while >70% of EU citizens live in Urban Areas… … and 6000 District Heating systems already exist in the EU What is this Study? Two Reports: Pre-study 1 (2012): is DHC beneficial in a business-as-usual scenario Pre-study 2 (2013): is DHC beneficial in a low-heat demand scenario Methodology GIS Mapping Energy System Modelling BAU (References) District Heating Demands District Heating Alternatives District Heating Resources Results (PES, CO2, Costs) GIS Mapping: Many Heat 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 Systems Analyses 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 Pre-Study 1 (2012) Is DHC beneficial for the EU energy system in a business-as-usual scenario? 2010 Modelling IEA Data 2010 Model IEA Statistics District Heating Alternatives Ref = 12% DH 2010 = 30% DH 2010= 50% DH Results (PES, CO2, Costs) District Heating Benefits in 2 steps Step 1: (Energy Efficiency) - Increasing DH to 30% then 50% - Increasing CHP - Using Oil/Natural gas in CC-CHP Step 2: (Utilise waste and RE sources) - Industrial waste heat - Waste incineration - Geothermal heat - Large-scale Solar Thermal Year 2010 Step 1: Energy Efficiency EU27 Primary Energy Supply and CO2 for Heating Buildings 3,500 700 3,000 600 2,500 500 2,000 400 1,500 300 1,000 200 500 100 0 0 Present 12% 30% DH 50% DH Existing CHP & DH Additional CHP & DH Biomass Natural gas Oil Coal Nuclear CO2 Emissions DH IEA CO2 Emissions (Mt) Primary Energy Supply (TWh) in 2010 at Different DH Penetrations HRE Year 2010 Step 2: Utilise Resources 3,500 700 3,000 600 2,500 500 2,000 400 1,500 300 1,000 200 500 100 0 0 Present 30% DH 50% DH 12% DH with RE with RE IEA HRE CO2 Emission (Mt) Primary Energy Supply (TWh) EU27 Primary Energy Supply & CO2 for Heating Buildings in 2010 at Different DH Penetrations while also Utilising RE Resources Existing CHP & DH Additional CHP & DH Biomass Natural gas Oil Coal Nuclear CO2-emissions Year 2010 Total Energy Supply 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 4,000 3,500 3,000 2,500 2,000 1,500 7% reduction in Primary Energy Supply 1,000 13% reduction in fossil fuels 500 0 Present 12% DH 30% DH with RE 50% DH with RE 17% reduction in CO2-emissions IEA HRE CO2 Emissions (Mt) Primary Energy Supply (TWh) EU27 Primary Energy Supply & CO2 in 2010 at Different DH Penetrations while also Utilising RE Resources Other renewable Biomass Natural gas Oil Coal Nuclear CO2 Emissions What is a Business-asUsual Scenario? Energy Roadmap 2050 Completed for the European Commission in 2011, by the National Technical University in Athens Presents 6 energy scenarios for the EU27: Reference: Business-as-usual CPI: Updated business-as-usual EE: Energy Efficiency CCS: Carbon Capture and Storage Nuclear High Renewable Energy Designing the DHC Alternatives EU CPI PRIMES Data 2030 & 2050 Model EU Energy Roadmap 2050 Current Policy Initiatives (CPI) District Heating Alternatives 2010 = 12% DH 2030 = 30% DH 2050= 50% DH Results (PES, CO2, Costs) 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 EU Energy Roadmap 2050 Existing CHP & DH 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 Present 12% DH IEA 2030 30% DH & RE 2050 50% DH & RE HRE Industrial surplus heat Additional CHP Existing CHP Year 2030 & 2050: Total Energy Supply 20,000 4000 18,000 3600 16,000 3200 14,000 2800 12,000 2400 10,000 HRE 2050 compared to EU CPI 2050: 2000 8,000 1600 6,000 5% reduction in Primary Energy Supply 4,000 1200 800 10% reduction in fossil fuels 2,000 0 2010 13% reduction in CO2-emissions EP CPI 10% DH HRE 30% DH with RE 2030 EP CPI 10% DH HRE 50% DH with RE 2050 Other Renewables Biomass Natural gas Oil Coal Nuclear CO2 Emissions 400 0 IEA 12% DH CO2-emissions (Mt) EU Energy Roadmap 2050 Primary Energy Supply (TWh) EU27 Primary Energy Supply & CO2 from 2010 to 2050 EP CPI vs HRE RE 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 Fuel Annual Heating Building Costs (Billion Euro) Saved fuel costs of annual approx. 30 Billion EUR in 2050 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 HRE1 Conclusion: 50% DH and CHP Decrease primary energy supply and LESSfuels FUEL and CO2 especially fossil emissions Decrease annual costs of energy in LESS MONEY Europe by approximately €14 Billion in 2050 Create additional jobs over MORE EU220,000 JOBS the period 2013-2050 Further integration of RES MORE RE Pre-Study 2 (2013) Is DHC beneficial for the EU energy system in a low-heat demand scenario? Future: EU Energy Roadmap 2050 Completed for the European Commission in 2011, by the National Technical University in Athens HRE2: Is district heating a good idea if we implement a lot of energy efficiency in the buildings? Presents 6 energy scenarios for the EU27: Reference: Business-as-usual CPI: Updated business-as-usual Energy Efficiency (EU-EE) Carbon Capture & Storage Nuclear High Renewable Energy Energy Modelling EU-EE PRIMES Data 2030 & 2050 Model EU Energy Roadmap 2050 Energy Efficiency (EE) District Heating Alternatives 2010 = 12% DH 2030 = 30% DH 2050= 50% DH Results (PES, CO2, Costs) Key Measures in the EU-EE Scenario High renovation rates for existing buildings due to better/more financing and planned obligations for public buildings (more than 2% refurbishment per year) Passive houses standards after 2020 Obligation of utilities to achieve energy savings in their customers' energy use over 1.5% per year (up to 2020) Strong minimum requirements for energy generation, transmission and distribution including obligation that existing energy generation installations are upgraded to the CPI vs. EE Gross Inland Consumption (TWh) 20,000 16,000 12,000 RES Nuclear Natural gas Oil Solids 8,000 4,000 0 CPI EE 2010 CPI EE 2030 CPI EE 2050 Electricity in the EE Scenario EE 2010 CPI 2050 EE 2050 70 64 Percentage (%) 60 50 40 49 45 45 40 30 20 28 25 15 21 18 20 14 8 10 0 21 0 Efficiency for CHP indicator (% CCS indicator (% nuclear in renewable energy thermal of electricity of electricity electricity in electricity electricity from CHP) from CCS) generation (%) generation (%) production (%) EU-EE Scenario Heat Demand Concerns EU-CPI Scenario Space and Hot Water Heat Demands (TWh/year) Hot water demand decreases by 50% between 2010 and 2050 Specific Heat Demands reduce by 70% between 2010 and 2050 EU-EE Scenario 4000 3500 3000 2500 2000 1500 1000 500 0 2015 2020 2025 2030 2035 2040 2045 2050 Energy Efficiency Costs EU-EE Scenario 63% Drop in Heat Demands Cost B€300/year 2010-2050 Additional Cost of Energy Efficiency Measures (€/kWh Saved) 3.00 2.50 2.00 1.50 1.00 0.50 0.00 0% 10% 20% 30% 40% 50% Heat Demand Reduction (%) 60% 70% 80% HRE-EE Hot Water Growth = +16% Residential and non-residential buildings is expected to grow by 32% and 42% respectively between 2015 and 2050 Population will grow by 3.2% between 2010 and 2050. Individuals are likely to take more showers and baths in the future than they do today. People are not expected to live with one another as much in the future. At present, there are regions in Europe where the use of hot water is limited due to technical and financial limitations. HRE-EE Space Heating = -47% Space Heating Demand (TWh/year) 3500 3000 Shallow Renovation 2500 2000 1500 1000 500 0 Target Scenario Shallow Renovation + REN Target Scenario Deep Renovation Implementing District Heating 1. Individual boilers are replaced by district heating: 30% in 2030 and 50% in 2050 Individual heat pumps are not replaced 2. Individual cooling units are replaced with district cooling. 10% in 2030 and 20% in 2050 Natural cooling and absorption heat pumps are both used. Heat Demand by Source 4,000 3,500 Heat Demands (TWh/year) 3,000 Geothermal Heat Pumps 2,500 Direct Electricity Solar 2,000 Biomass Gas 1,500 Oil 1,000 Solids District Heating 500 0 EU-EE HRE-EE 2030 EU-EE HRE-EE 2050 Implementing District Heating 3. New DH production facilities are constructed: CHP, boilers, heat pumps, and thermal storage. 4. Additional resources can now be utilised by the district heating network: Industrial surplus heat: 100 TWh/year Direct geothermal heat: 100 TWh/year Waste incineration: 150 TWh/year Large-scale solar thermal: 100 TWh/year Wind power for large-scale heat pumps: 65 TWh/year Heat Resources Potential: Power Plants = 2000 TWh Industry surplus heat = 750 TWh Large-scale solar thermal = 350 TWh Waste = 200 TWh Geothermal = 120 TWh Large-scale heat pumps = ? Biomass heat = ? Total Heat Demand in the EU in 2010 = 3300 TWh EU-EE vs. HRE-EE Additional Resources Heat Available from Unconventional Resources due to District Heating* (TWh/year) Industry Waste Incineration^ Geothermal Large-Scale Solar 600 500 400 300 200 100 0 EU-EE HRE-EE 2030 EU-EE HRE-EE 2050 District Heating Supply for Residential and Services Buildings (TWh/year) EU-EE vs. HRE-EE DH Supply 1,800 1,600 1,400 Industry Waste Geothermal Solar Heat Pumps Boiler CHP 1,200 1,000 800 600 400 200 0 EU-EE HRE-EE 2030 EU-EE HRE-EE 2050 Results 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) HRE-EE (50% DH) 2050 Carbon Dioxide Emissions (X, Mt/year) Primary Energy Supply (TWh/year) Nuclear EU-EE vs. HRE-EE: Fossil Fuels Coal Oil Gas 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 HRE-EE 2030 EU-EE HRE-EE 2050 Carbon Dioxide Emissions (X, Mt/year) Primary Energy Supply (TWh/year) Nuclear 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) 2030 EU-EE (13% DH) HRE-EE (50% DH) 2050 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 Case Study: Århus Legend District heating area Built up areas Aarhus municipality Case Study Conclusions District heating is an attractive solution in areas with a high heat density District heating can be seen as an efficiency measure similar to reductions in heat demand, because it enables the use of fuels in a more efficient way Heat reductions in buildings can be combined with district heating so that it is competitive with individual solutions HRE1 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 Use more renewable energy HRE2 Conclusions If we implement a lot of 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 10% less Study 3? (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 4th Generation District Heating: http://www.4dh.dk/ Benefits of District Heating Improves the efficiency of the system (CHP, O&M, etc.) Creates short-term and long-term flexibility Enables more renewable energy resources and surplus heat to be utilised Reduces the thermal capacity necessary Increases the comfort-levels for the end-user Thank you Need a copy of the report? www.heatroadmap.eu www.4dh.dk/hre