A Global Initiative to Unlock the Potential of Energy Efficiency and Renewable Energy
District Energy in Cities: An Integrated Approach to the Energy Transition Nordic Heating and Cooling Workshop, Helsinki. 12th June 2015 Ms. Lily Riahi, DES Initiative, Energy, Climate, and Technology Branch, UNEP
Contents
2
Introduction to the Global District Energy in Cities Initiative 1
Sharing Nordic expertise globally through the Initiative
How the Initiative can support Nordic activities in district energy
2
3
District energy: key solution to the energy transition
3
Danish CHP and wind development 1985 – 2009
Image: Lauersen, 2014
In order to stay below 2oC we will need district energy to: • improve energy
efficiency • reduce fossil fuel
consumption • achieve 100%
renewables • provide the systems
approach needed
Market barriers are holding back district energy’s potential
4
• Cities account for more than 70% of global energy use.
• Waste heat capture. • Huge cooling demand growth. • Refurbishment systems • Integrating and balancing
renewables Barriers Development costs and patient capital
Lack of Capacity and Awareness
Lack of Recognition of
savings and benefits
Comprehensive Policy
Frameworks
Huge potential
Launch of the Global District Energy in Cities Initiative
5
Scope of Activities
6
5 International Organizations 6 Industry Associations* 8 Private Sector Companies 2 Networks 26 Municipal Governments
Leveraging the Partnership and Pool of Expertise to Provide
Capacity Building & Knowledge Transfer
Best practice sharing. Training workshops.
Heat planning. Local coordination
development
Technical Assistance. City twinning.
Pre feasibility and feasibility studies.
International consultants. Metering equipment.
Demonstrations activities Local planning policies.
Local and national support programmes.
Regulatory framework. Tariff structures
Awareness raising Study tours
Assistance in negotiations. at national
level. Public consultations.
Successful Market Transformation
Launch of Publication: An Address from Achim Steiner
7
“In launching this report we want to draw the attention of the world’s decision
makers, mayors and leaders at the community level to the importance of
district energy systems.” - Achim Steiner, UN Environment Programme Executive Director. Launch of the District Energy in Cities Report - Paris, 25 February
2015
8
Best practice technologies
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Katri Vala heat pump in Helsinki
Captures 165, 000 Gwh of heat!
Danish expertise and technology showcased by work
of Danfoss in Anshan, China
Best practice city policies
10
Multiple business models for varying risk and control
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Best practice national policies
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“In Sweden, a CO2 tax was critical to the country’s energy transition strategy and Gothenburg identified the CO2 tax as the most important national policy for district energy in the city”
UNEP, District Energy in Cities
Best practices: EU Policy on heat planning
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“EU legislation on energy efficiency requires that regional and local authorities plan and design an urban heating and cooling infrastructure that utilizes all available renewable energy sources and CHP in their region.”
UNEP, District Energy in Cities
Nordic best practice featured in multiple case studies
14
8 of 36 case studies in the
publication are based on
Nordic best practice.
Developing the Initiative’s methodology for accelerating DES
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Nordic cities represent 8 of 45 champion cities. Best practice from champion cities combined: • Technology and benefits • City policies • Business models • National policies
Methodology and Key Steps
10 Key Steps to developing District Energy
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Decision tree for local and national governments
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What will the Initiative do?
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Methodology and Key Steps
Cities and countries around the world requesting help from the Initiative:
• India • China • Serbia
• Kosovo • Croatia • Morocco
• Bosnia and Herzegovina
• Mongolia
• Philippines • Colombia • Indonesia
• Kenya • Bahamas
Contents
19
Introduction to the Global District Energy in Cities Initiative 1
Sharing Nordic expertise globally through the Initiative
How the Initiative can support Nordic activities in district energy
2
3
Realising the Initiative’s full potential
20
Business as Usual
Funded Initiative Activities
Potential Initiative Activities
• New cities without heat/cool planning.
• Abandoned refurbishment systems.
• European best practice not shifting abroad
• DHC mostly confined to Nordics and EE
• 3 pilot cities in India, China and Eastern Europe.
• State/Provincial replication
• Global training and decision tools for local governments
• City-twinning
• Multiple pilot cities builds to national momentum and replication
• New markets emerge for European best practice transfer
• DES becomes status-quo in new city design
• Energy transition
- Initial funding of Initiative - In-kind support from select partners
- More funds to Initiative - European universities, cities and private sector contribute expertise
21
China – Heat planning Huge potential impact of renewable energy heating guidelines under the new energy cities programme
• demonstration projects being developed • Nordic expertise and best practice can be transferred • currently includes more than 80 cities but aims at including 100
cities all over China. Will shape heat delivery in China for decades
Initiative actions Test guidelines at the local level using international expertise and local tools developed by Initiative in a demonstration.
Identify barriers and opportunities for integration of renewables. Showcase Nordic/EU-China cooperation in district energy
National policy could benefit from Nordic/EU best practice in heat planning. National replication of best practices and lessons
22
China – Macro-economic benefits
Nordic/EU DES approaches require strong analytics to justify replication
Initiative actions Develop socio-economic cost-benefit analysis of Chinese heat policy.
EU expertise huge. EU Heat Planning Legislation requiring cost-benefit analysis
EU Expertise: • Universities • Private sector • Cities • National
governments
Must include: • Impact of heat planning • Renewables integration • Alternative technologies • Air pollution • Mitigation and adaption
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Anshan – Heat planning based on macro-economic benefits
• Heat planning for city: hydraulically separated transmission, pooling networks, waste heat connection, hot water connections and renewables.
• Pollution fines and coal savings between 60-90% leads to macro-economic benefits payback of <2.5 years.
• Heat planning • Renewables integration • Maximising efficiency • Waste heat connection • Stakeholder coordination
Danish experience
Nordic China best practice transfer that is highly replicable approach across province and China
Initiative activities in Eastern Europe
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• Accession and non-accession countries need support with district heating modernisation.
• Initiative provides platform for independent support and could develop systems integrated policies (e.g. CHP FiT)
• Initiative will provide neutral technical assessments and capacity building
• Yerevan, Armenia had CHP FiT inception and PPP but country lacked local capacity
Transfer of expertise and development of local capacity
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Contents
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Introduction to the Global District Energy in Cities Initiative 1
Sharing Nordic expertise globally through the Initiative
How the Initiative can support Nordic activities in district energy
2
3
European perspective
27
Finland: Building code and EPBD
Heat Roadmap: Planning for districts
Norway: Licensing of DH
Sweden: Levelling the playing field
European perspective
28
Denmark: Connecting energy systems
Germany: Energy-saving ordinance
Germany: CHP FiT and solar PV
Building on European Leadership
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Renewables leadership
Figures: REN21
Transferring European best practise abroad
• Europe retains global leadership in district energy
• Cities, universities, countries, and private sector can share best practice globally
• Global District Energy in Cities Initiative provides platform for accelerating DES
Thank you!
30 unep.org/energy/des
Ms. Lily Riahi - Advisor on Sustainable Energy in Cities United Nations Environment Programme I Energy, Climate, and Technology Branch 15 rue de Milan, 75009 Paris I Tel: + 33 1 44 37 42 92 I Email: [email protected]
