District Heating and Cooling: A smart solution for smart cities

: Climaespaço, the Lisbon DHC

Why the renewed Interest for DHC?

2

Heating and cooling Rest

50% 50%

EU Industry EU Tertiary EU Residential

45%

18%

Source : European Commission, DG Energy

Heating and cooling in Europe

▪ Heating and cooling is 50% of EU final energy consumption

▪ Buildings account for more than 60% of heating and cooling demand

▪ Energy policy will necessarily fail if heating and cooling is not efficiently addressed

3

37%

What is District Heating and Cooling?

4

Production: smart

generation

Distribution:

efficient network

Delivery: energy

transfer station

Why production at district scale?

First reason: any technological upgrade or

change in energy mix will immediately

impact all the district.

It would take decades if thousands of stand

alone installations were spread over the city.

Other reasons: higher efficiency, more energy

sources and technologies, architecture…

5

Energy Sources for DHC

Geothermal

Biomass

Industrial excess heat

Solar

Waste to energy

High efficiency

CHP

The Swedish case study:

In Sweden, there are more than 450 DHC networks. In 40 years, the energy mix of Swedish DHC

moved from 90% coal to 97% renewables and recovered heat.

Heat pumps

The role of DHC in ENERGY TRANSITION

6

Other benefits of DHC

▪ ↓ CO2 emissions

➢ Renewables, waste heat, higher efficiency

➢ Power generation close to demand (CHP), eliminating transport and distribution losses

▪ ↓ peak demand on the electric grid

▪ ↓ Power installed (simultaneity)

▪ ↓ public health risks

➢ No cooling towers in air conditioning, reduces Legionellarisk

▪ Respects architecture

➢ Ideal for areas with high architecture standards and historical districts

▪ ↓ technical areas needed in building

▪ Protection from changing regulations

➢ Phase out of refrigerants

Evolution of

regulations (HCFC…)

Electricity Peak

demand in summer

CO2

emissions

Rules of architecture

Constraints

How is DHC in the world?

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District Heating in the world

8

▪ The first documented geothermal district heating system was built in Chaudes-Aigues

Cantal, France in the 14th century. District heating is one of the oldest uses of geothermal

energy.

▪ The first commercially successful district heating system was launched in Lockport, New

York, in 1877.

▪ In Europe, more than 6.000 district heating systems heat about 12% of all Europeans.

▪ Moscow, St. Petersburg, Warsaw, Berlin, Seoul, New York,

Copenhagen, Stockholm, Helsinki or Paris are among the

biggest district heating systems in the world.

▪ More than 80% of heat provided by DH comes from

recycled heat or renewable sources.

Share of population served by District Heating

Source : Euroheat & Power data (2013)

+50%

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District Cooling in the world

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▪ The first district cooling system was built in Denver, back in 1889. And in the 1930's, large

district cooling systems were created for the Rockefeller Centre, in New York and for

the Capital Buildings, in Washington. Still not at a city scale.

▪ The district cooling concept is now “exploding” throughout the world, especially in

regions with large cooling needs and strong urban expansion (Middle East, Southeast Asia,

China, North America)

▪ Singapore, Qatar, Dubai, Paris, Stockholm or Helsinki are among the biggest district

cooling systems in the world.

▪ District cooling is the optimal solution for high density developments such as

downtown business districts, large commercial areas, airports or university campuses.

▪ District cooling reduces the electricity peak demand and the strain on the electric

grid caused by increasing demands for air conditioning, particularly in summer.

Cooling demand is rapidly increasing

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Income

rise

Climate

change

Urbanization

Co

oli

ng

en

erg

y d

em

an

d

gro

wth

facto

rs

70% of the

population

will live in cities

ASEAN

Latin

America

India

China

Cooling is expected to grow

625% by 2050 in selected regions

of Asia & Latin America.

World final energy use for cooling in the IEA’s 2°C

scenario, 2010–2050

District Cooling✓ The most effective solution to decarbonize dense areas

✓ A solution to provide cooling while respecting energy and environmental issues

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1st Generation

1880 – 1930

- Steam (~200°C)

- Steam pipes in concrete ducts

- Powered by coal plants

- Appeared in US and Europe

2nd Generation

1930 – 1980

- Pressurized water (> 100°C)

- Water pipes in concrete ducts

- Fuel savings through CHP

- Widespread in USSR

3rd Generation

1980 – 2020

- Pressurized water (< 100°C)

- Use of local fuels (biomass, waste

heat, solar) in response to oil crisis

- The Scandinavian model

4th Generation

2020 – 2050

- Low-temperature (40-60°C), low losses

- Intelligent control and metering

- Linked to district cooling systems

- Integrated in smart energy systems:

renewable electricity, renewable heat,

recycled heat

Steam

storage

Coal,

wasteCoal,

Waste

CHP coal,

CHP oil

Heat

Storage

Heat

Storage

Gas, waste,

oil, coal

Biomass,

CHP Biomass

CHP waste,

incineration

Industry

surplus

Heat

Storage

CHP waste,

CHP coal,

CHP gas,

CHP oil,

Industry

surplus

Solar

thermal

PV, wave,

wind

surplus

Long-term

storage

Solar

thermal

Centralized

heat pump

Cold

storage

District

cooling plant

DIS

TR

ICT

HE

AT

ING

NE

TW

OR

K

DIS

TR

ICT

CO

OLIN

G N

ET

WO

RK

The future: 4th Generation DHC

DIS

TR

ICT

HE

AT

ING

NE

TW

OR

K

DIS

TR

ICT

HE

AT

ING

NE

TW

OR

K

DIS

TR

ICT

HE

AT

ING

NE

TW

OR

K

Permanent evolution: from coal (1st generation) to

renewables and recycled heat (3rd & 4th generation)

ENGIE: a world leader in DHC

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ENGIE DHC systems in the world

14

1 DCS in Philippines

2 DHC in

the USA

1 DHC in

New Zealand

2 DHC in China

71 DCS in

Middle East

1 DCS in

Malaysia

250 DHC systems operated in the world

With Tabreed, ENGIE became the world leader in District CoolingTotal capacity: ~4.200 MW

180 DHC in

Europe

15

Lisbon

Barcelona

Zaragoza

Paris

London

Monaco

Poland

5 DHS

Slovakia

17 DHS

Italy

12 DHS

Belgium

3 DHS

France

+140 DHS

14 DCS

Netherlands

12 DHC

UK

11 DHS

3 DCS

In EUROPE ENGIE DHC Activities

250 networks operated

1.700 M€ Turnover

2000 employees

Target by 2018 > 50% RES in our networks

Ke

y f

igu

res

ENGIE DHC systems in the world

Case Study:

Climaespaço, the Lisbon DHC

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Lisbon DHC: Parque das Nações

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PARQUE DAS NAÇÕESThe heart of modern Lisbon

▪ A unique location, with 5 km of

riverfront.

▪ 3,3 km2

▪ A new city built from scratch:

✓ 2.500.000 m2 of construction

✓ 20.000 people living

✓ 20.000 people working

✓ Some of the most important

attractions of the city

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BRIEF HISTORY

Almost 20 years supplying heating and cooling

▪ 1992: Lisbon was chosen to host EXPO’98, the last world

exposition of the XX Century.

▪ 1994: The EXPO’98 urban planning has been approved,

including the first Portuguese DHC.

▪ 1995: Climaespaço won the international tender to design, build,

finance and operate the DHC under a concession agreement.

▪ 1996: Construction of the DHC started.

▪ 1998: EXPO’98. Beginning of operation of the DHC.

Lisbon DHC: brief history

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Technical overview

▪ A high efficiency trigeneration

plant

▪ A network with 85 km of pipes

(4 x 21 km)

▪ 130 energy transfer stations

(ETS)

▪ About 6.000 energy meters

CLIMAESPAÇOCommercial overview

▪ Almost 3.500 customers (30 large, 300 medium, +3.000 small)

▪ 1,5 million m2 of construction floor connected so far

Network

Trigeneration

Plant

ETS

Lisbon DHC: general presentation

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TRIGENERATION PLANT

▪ Cooling capacity: 35 MW

▪ Heating capacity: 29 MW

▪ Electrical capacity: 5 MW

▪ Chilled water tank: 15.000 m3

Overall Efficiency: 85%

Electrical Efficiency: 30%

Thermal Efficiency: 55%

Heat

recovery

Peak demand

Security of Supply

Tariff management

Storage

Lisbon DHC: trigeneration plant

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Lisbon DHC: trigeneration plant

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NETWORK

▪ 85 km of pre-insulated pipes (4 x 21 km).

▪ Mainly steel pipes, but over the recent years HDPE pipes are being used for cooling.

▪ Main pipes installed in technical galleries.

Lisbon DHC: network

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Lisbon DHC: energy transfer station

Connected buildings need a small and clean room instead of extensive air

conditioning plants

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THE DHC IS GROWING AGAIN, AFTER THE ECONOMIC CRISIS

Lisbon DHC: development

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Vasco da Gama Shopping Mall

Lisbon Oceanarium

Vodafone Haedquarters

Lisbon Casino

Hospital CUF Descobertas

Orient Railway Station

SOME OF THE CUSTOMERS

Lisbon DHC: customers

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Microsoft Headquarters

Teleperformance Call Centers Myriad Cristal CenterHotel Myriad by SANA

Science Museum

SOME OF THE CUSTOMERS

Lisbon DHC: customers

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FIL – Lisbon Exhibition Centre

Contact Center EDP

Meo Arena Art’s Business Center & VIP Executive Art’s Hotel

Hotel Tivoli OrienteEspelho do Tejo Condominium

SOME OF THE CUSTOMERS

Lisbon DHC: customers

DHC context in Portugal

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DHC IN PORTUGAL

No culture of district energy

▪ The Lisbon DHC – located in Parque das Nações district – is so far the only existing

system.

▪ A few other opportunities have been screened over the recent years, with no success so far

(e.g. RUTE Project, for downtown Porto).

▪ Portugal has a high potential for district cooling. Energy demand for HVAC is rapidly

growing.

▪ A relatively mild climate is the main reason why district

heating was never adopted in Portugal.

▪ There is no legal framework or any type of incentive for DHC.

The transposition of EED forgot the promotion of DHC.

▪ Energy policy is mainly oriented for renewables rather than

energy efficiency.