Cost Analysis Of District Heating Compared To
Its Competing Technologies
Author(s)
O. Gudmundsson, J. E. Thorsen & L. Zhang
Abstract
Cost analysis of district heating compared to its competing technologies
O. Gudmundsson1, J. E. Thorsen1 & L. Zhang2
1Danfoss A/S, District Energy Division, Application Center, Denmark
2Department of Civil Engineering, Technical University of Denmark,
Denmark
Abstract
When talking about energy sustainability it is important to note that energy
quality should be fitted to the intended use of the energy. Today, heat generation
accounts for over 40% of the total energy use in Europe and only a minority of
this heat is delivered by district heating.
As for energy quality and heating, space heating generally requires heat with
energy quality of only 7% and domestic hot water requires energy quality of
15%. It is therefore a complete waste of energy quality to serve these sectors
with electricity, which has an energy quality of 100% or by burning fossil fuels
in individual gas boilers. The alternative is to deliver low quality heat through
district heating network to end users.
It is a common misunderstanding that district heating is an investment
expensive technology. In this paper it is shown that the total investment costs are
typically lower than for competing technologies. Due to the fact that district
heating is invariant to the heat source it can easily be the cleanest heating option
available and further, it provides the best possible means to match the energy
quality to the energy need.
This paper will shed some light on: a) the investment cost when establishing
district heating network for inner and outer cities; b) the cost of a few of the
available heat sources for district heating; c) how district heating, cost wise,
compares to other heating technologies available.
The main conclusion of the paper is that district heating is an important player
in today’s heat market and has the potential to be a key player in future energy its competing technologies
Keywords
district heating, renewables, energy, efficiency, environmentally friendly, gas emissions
Related Book
Other papers in this volume
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