Energy Policy in Denmark
MONGOLIAN ENERGY
DELEGATION
9 September 2013
Danish Energy Agency
1
Program
• Welcome by Director Energy Technology
Anton Beck
• Danish Energy Policy with emphasis on
District Heating by Senior Adviser Niels
Bisgaard Pedersen
• Integration of wind and solar energy in the
power and heat supply by Senior Adviser
Anders Højgaard Kristensen
The Danish District Heating System
Key figures
 Covers 2/3 of heat demand for space heating and hot
water in residential sector
 Approximately 130 PJ (20% of final energy consumption)




45%
20%
20%
15%
CHP
from
from
from
from
11 large scale CHP plants
~600 small scale CHP – mainly natural gas
heat only boilers – mainly biomass
recovery of industrial waste heat and industrial
 Biomass 28%
Heating installations in residential
homes
1000 Units
3000
2500
2000
1500
1000
500
0
1981
Oil boilers
1990
Natural gas boilers
Source: Statistics Denmark
4
2000
District heating
2011
Other
Decoupling Economic Growth and
Energy Consumption
5
Background
• Energy crisis 1973-74
• 99% dependent on oil imports,
• Low energy efficiency in production and
consumption
• Economic crisis and high unemployment
• SUSTAINABILITY
• Efficiency
• Domestic resources, natural gas replaces oil
• Renewable Energy
Measures to decouple economic
growth and energy consumption
• Decentralisation
• Energy Taxation
• Modern Energy Legislation for electricity
and heat sectors in the late 70ties
• Heat Planning,
• District Heating
• Combined Heat and Power production
• Energy Efficiency in buildings, households
and industry
• Diversified Supply
Infrastructure 1985 – 2009
Decentralisation
Municipal heat planning
• New regulation heat supply in 1979
• Allocation heat supply in geographical
areas based on economic principles
• Definition of areas where different forms of
heat supply should be prioritised
• Location of heat supply installations and
pipelines
• ‘Zoning’ of heat supply in DH, natural gas
and individual solutions
Heat Plannning - Zoning
1)
3)
2)
District Heating generation from 1975
11
CHP share of thermal power and
district heating production
100%
80%
60%
40%
20%
0%
1990
'95
District heating
12
'05
'00
Electricity
'11
Energy consumption for heating
dwellings
Climate adjusted
Index 1990=100
150
Building codes
First code 1977
Next 2015 - 2020
100
50
0
1990
'95
Heated floor space
Final energy consumption per m2
'00
'05
Final energy consumption
Subsidies for energy improvement of
buildings
13
'11
Today the energy demand
in buildings is only 25% of
the demand in 1977,
before the subsidies
Electricity and Natural Gas Market
• 1998 package
• 2005 package
• Interconnections
• Power exchanges
• NordPool
• http://www.energinet.dk/Flash/Forside/ind
ex.html?target=el_net
• http://www.statnett.no/en/The-powersystem/Production-andconsumption/State-of-the-Nordic-PowerSystem-Map/
Share of renewable energy
%
25
20
15
10
5
0
1990
'95
'00
'05
Share of renewable energy according to the EU method of calculation
PJ
120
100
80
60
40
20
0
Electricity and district heating
Wind
15
Straw
Wood
Biogas
Final energy consumption
Waste
Other renewables
'11
Energy Agreement 2020
• Broad political consensus about an ambitious
green transition up to 2020 and a vision for
2050
• 12% reduction of energy consumption in 2020
compared to 2006
• 35% renewable energy in energy production in
2020
• 50% wind energy in the electricity production
in 2020
• 100% renewable energy supply in 2050
• Fossils fuels will be phased out
The Future of District Heating ?
2)
1)
1) New customer in existing areas
2) Extension of existing areas
3) New district heating areas
HAS THE POTENTIAL for DH in DK
BEEN EXHASUSTED WITH CURRENT
TECHNOLOGIES ?
3)
2nd round - Heat Planning today
• Heat planning had low focus for many years. Now 2nd round has begun
• District Heating is again the key
• New drivers: Green cities – strong interest in many municipalities
• National driver: policy on phasing out fossil fuels
• Flexibility tool for large amounts of wind power in the electricity system
• District heating enables large scale use of renewables, e.g. biomass and
solar heating
• Competitive advantage due to no excise tax on biomass
• Significant tax reduction on electricity to DH boilers under certain conditions
Fuels used for District Heating:
Development 1990-2011
100%
80%
60%
40%
20%
0%
1990
'95
Oil
19
Natural gas
'00
Coal
'05
Renewable energy and waste
'11
District heating and wind power
• Huge challenge to integrate increasing amounts of wind 30% in 2012 and
50% in 2020
• The main tool is the strong interconnectors and integration into the Nordic
Power market
• The district heating system will serve as important flexibility tool
• Heat storage already in place, enabling flexibility between power
generation and heat demand for up to 8-10 hours
• Legislation on electricity taxation changed excluding tax on electricity
used for district heating under certain conditions
• A small no of electric boilers with a total capacity of around 200-300
MW being installed these years.
District heating and wind power
• Large scale heat pumps foreseen to be introduced - will keep efficiency
high and will operate during longer periods
• Substitution of CHP with electricity boilers has double effect
• Drives power generation down (at CHP plant)
• Introduces new demand
Solar heating – a feasible
supplement
• Today big interest in large
scale solar heating collectors for
district heat generation
• Mainly as supplement, but
also as main source with
seasonal storage
• Driver is lower cost of fuel
and taxes. Cost of Natural gas
is increasing
• Size of 10.000-50.000 m2
• Total 300.000 m2 + 280.000
m2 under construction
22
Example – Gram District Heating
41.000 m2 solar collector
110.000 m3 heat storage
Investment 93 mio DKK
Cost reduction 15-25%
Conclusion
1) District heating is part of the sustainability
2) Green Cities are very important in an efficient energy system
• Heat Planning
• Expansion of district heating reduced dependence of oil
• Conversion to CHP was important element in deployment of domestic natural gas
•
Power and district heat generation integrated
• Very high overall thermal efficiency
• Flexibility and economic efficient
•
A new role for district heating
• Important flexibility to wind integration
• Possibility to use more biomass and other renewables