Heat and the City David Hawkey University of Edinburgh
Jun 19, 2015
Heat and the City
David Hawkey University of Edinburgh
Overview
• What is district heating? • Where has district heating developed in the
past, and how? • How is district heating being developed in the
UK today?
Swedish DH sources
Ericson, K., 2009. Introduction and development of the Swedish district heating systems http://www.res-h-policy.eu/downloads/Swedish_district_heating_case-study_(D5)_final.pdf
Energy system integration
• c
Operational flexibility and balancing
District heating characteristics
• High cost infrastructure / low cost commodity – Heat density
• Long lifespan of pipes / low rate of return – Commitment
• Economies of scope – Diversity / scale
• Natural monopoly – Trust
International comparison
Danish and Swedish development
• Post war experiments exploiting heavy / light oil price difference
• Oil crisis led to national policies which placed responsibilities on local government
• Embedded in wider systems of municipal service provision (including electricity)
• Swedish house building programme • Danish power to compel connection • Heat networks regulated • Learning networks and technology development
Local Authorities • Have strategic, long term view of area plus social
responsibilities • Democratic oversight mitigates subscribers’
perceptions of monopoly risk • Planning policy can encourage connection and shape
heat supply/demand patterns • Control large heat demand on own estate • Accept low (social) rates of return, but financially
constrained • Cross-subsidy? • DH cuts across traditional departmental divisions
District heating in the UK
• Relative fragmentation of local government – Transfer of functions to other organisations – (Legacy of) central control
• Shift from local government provision to enabling • No “problem owner” at present • Voluntaristic development model: political
commitment and extensive negotiation of relationships
• Diverse business models and economic evaluations
Where have we seen development?
• Tendency towards single organisation projects
• Sustainable City initiatives build local relationships even if project development appears slow
• Scottish Community Energy Network secured 60% of CEP – Built local capacity and confidence
• Aberdeen Heat and Power – exploration of commercial supply
£0
£200,000
£400,000
£600,000
£800,000
£1,000,000
£1,200,000
2002-2003 2003-2004 2004-2005
Community energy programme
AverageScottishGrant
Average nonScottish grant
Link up later? I think where it gets complicated … is if you then wanted to sell heat onto a municipal network… The university is never going to want to put itself in a position where we need to shut off
heat to our biomedical research facility because legally we’re obliged to heat social housing up the road. …. Some intermediary, [the] City Council,
needs to sit in the middle. But … they’re not really in the business of
being that intermediary.
• Development of small schemes for later integration
• Connecting infrastructure vs multiple energy centres
• Technical compatibility issues recognised
• Organisational/commercial challenges more challenging
Current policy approaches
• Heat Networks Partnership / Heat Networks Delivery Unit – Support project development / common resources
• Centralised heat mapping • Channelling finance but commercial rates • Place / technology neutral policies • Industry-led consumer protection code • Scottish govt DH targets (becoming “problem
owner”?)
Conclusions
• Diversity and flexibility in how heat networks are configured – Socially shaped – Greater impact of larger integrated systems
• Governance arrangements in UK differ from European DH countries’
• Diversity in development models but most small scale with uncertain prospects for growth