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

Presenter

Presentation Notes

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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