Presentation is loading. Please wait.

Presentation is loading. Please wait.

1 Efficient and Competitive District Heating and CHP Experience from Finland Seppo Aho Visegrad, Hungary November 5, 2012.

Similar presentations

Presentation on theme: "1 Efficient and Competitive District Heating and CHP Experience from Finland Seppo Aho Visegrad, Hungary November 5, 2012."— Presentation transcript:

1 1 Efficient and Competitive District Heating and CHP Experience from Finland Seppo Aho Visegrad, Hungary November 5, 2012

2 2 A leading Nordic energy company The Nordic countries, Russia and the Baltic Rim in focus Operations in 11 countries Second largest in power generation in the Nordic countries Total Power Generation 72.7 TWh Total Heat Production 47.4 TWh Approx. 10 800 employees in the Fortum Group 1.2 million electricity retail customers 1.6 million electricity distribution customers District heating for ~ 90 cities, in eight countries

3 3 District heating and cooling in Finland 2011 Heat sales (incl. taxes)1 930 mill. € Sold heat energy30,1 TWh Average price of DH (incl. taxes)6,39 c/kWh Inhabitants in DH apartments2,7 mill. Market share of district heat46 % Sold district cooling energy123 GWh Source: Finnish Energy Industries

4 Comprehensive CHP and open energy markets led to lowest prices of heat! 4Finnish Cleantech Source: Finnish Energy Industries, “ Finnish DH tariffs are the lowest in Western Europe and lowest in the world compared to the purchasing power. “ “The fuel savings of about 22 TWh are equal to 3 million metric tonnes of hard coal. Such savings resulted in 600 kg of coal and 1400 kg of CO2 equivalent saved per inhabitant in 2009.“ Source: Euroheat&Power: Country by country/2011 Survey DH prices EUR/GJ (2009)

5 Real price of district heat corrected with cost-of living index, 1.1.1981 = 100 Share of the excise and value addes taxes was 29,4% in the average price of district heat year 2011 Source: Finnish Energy Industries 5

6 6 District heating still highly competitive Customer benefits Most competitive price Highly comfortable and reliable Quality assurance Equipment inspections Technical support 24 / 7 Constant local presence Automated metering and online reporting support energy savings Social benefits Enables efficient CHP production and thus superior CO 2 efficiency Suits urban infrastructure Centralised emission control in power plant, flexible fuel mix

7 DH pricing - principle We are competing with other heating solutions – DH prices have to be competitive Pricing is based also on: – Production structure – Fuel and CO2 allowance prices – Operation and maintenance costs – Capital costs – Taxes DH price is not regulated, however DH is in dominant market positions towards it's existing customers so all customers have to be treaded equally and price must be reasonable

8 Fortum DH products in Finland 62,85€/MWh VAT incl. valid until 1.1.2012 - 1.1.2014 64,70€/MWh 1.7.2012 - 1.7.2014 price is valid for 2 years fixed period 59,66 /MWh VAT included price is valid 6 months and it will be checked 1.1. and 1.7.

9 Key objective is long term competitiveness of district heat price Alternative Pricing in Practice – “IRL” competitiveness

10 Espoo DH system DH network length 800 km Network volume 55 000 m 3 No. of customers 6500 People living in DH houses 200 000 Suomenoja CHP plant 370 MWe 565 MWth Peak and reserve boilers Tapiola Otaniemi Kivenlahti Vermo Kaupunginkallio Juvanmalmi Auroranportti Kalajärvi Masala Kirkkonummi Total capacity is 370 MW elec- tricity and over 1000 MW heat

11 District Heating and CHP Production in Espoo, Finland (Fortum Case) Additional power generation from Suomenoja CHP (2009) New CCGT-plant (Combined Cycle Gas Turbine) as a base load unit Substantial decrease in coal (about 30%) and oil usage Efficiency in energy production: 90% Decrease in CO 2 emissions per produced energy unit: 14% Expansion of district heating network 2nd longest DH network in Finland: 800 km Network efficiency: 93% Innovation in cooling to utilize the heat pumps and the waste heat from data server centers (2011) CO 2 reduction by 3% in total District heating network Heat pump facility District cooling network Server centre CHP plant 11Finnish Cleantech CO2 emissions (g CO2/kWh) per produced district heat reduced by 30% between 1980- 2010.

12 Continious monitoring of the network losses

13 We are constructing a new bio-fuelled CHP plant at the city of Järvenpää, Finland new CHP 25 MW electricity and 60 MW heat using forest based fuels and peat to replace natural gas fired heat production Investment 80 MEUR

14 Fortum to build the world's first industrial-scale integrated bio-oil plant to Joensuu in Finland Integrated with the CHP plant in Joensuu Produces electricity, district heat and 50,000 tonnes of bio-oil per year Raw materials include forest residues and other wood based biomass –Energy wood consumption at the plant almost doubles from existing 300,000 m3 per year In end-use, bio-oil reduces CO2 emissions more than 70% compared to fossil fuels Construction ongoing, in production in the autumn of 2013 Total value of the investment about EUR 30 million, the Ministry of Employment and the Economy has granted project EUR 8.1 million in a new technology investment Technology development in cooperation between Fortum, Metso, UPM and VTT

15 15 Fortum Pärnu in Estonia – a new biomass based CHP Biofuel and peat fired CHP plant. City of Pärnu (43000 popul.) is located in south-west Estonia Fortum is the sole owner of the district heating operations Heat sales abt. 250 GWh/a Previously based on peat, wood, natural gas and shale oil A new CHP plant 24 MWe/45 MWh, peat, wood and industrial waste 110 GWh electricity, 260 GWh heat Multifuel CFB boiler, 100% fuel flexibility. 14 MW flue gas condenser CO2 reduction abt. 60% Electricity sales to spot market at market conditions (NordPool) Option to acquire subsidized price based on energy market act for biofuel and peat based electricity (limited time) Order of turbine and generator July 2008 Start of commercial operation December 2010

16 District Heat in Stockholm Heat production 9 TWh District cooling 0.4 TWh Electricity 1,6 TWh Existing WtE CHP Plant A new WtE CHP Plant under construction A new bio CHP under planning

17 Fortum Fuel Mix in Stockholm Bio fuels 33% Fossil fuels 21% Waste to Energy 28% Seawater, Free cooling and Waste water 18%

18 18 Waste to Energy CHP Plant in Klaipeda, Lithuania City of Klaipeda is located in the coast of Baltic Sea in Lithuania Heat distribution company Klaipedos Energia is a Joint Venture between City of Klaipeda (75%) and Fortum (19.9%) Heat sales abt. 910 GWh/a Fortum Klaipeda is the production company which will invest in to the new Waste to Energy plant in Klaipeda. Owned by Fortum 90% and Klaipedos Energia 10% A new WtE CHP plant is to be constructed 23 MWe/55 MWh + 10 MW flue gas condenser, 170 GWhe/500 GWhh 260 000 t of waste (municipal and industrial) Grate boiler Start of commercial operation Q1/2013 Investment 123 M€ Strong support of the Lithuanian Government and the City of Klaipeda Waste supplier, the Waste Management Company of Klaipeda and neighbouring Municipalities Heat sold to Klaipedos Energia under TPA and long term competitive contract Gate fee agreed for the take of of the waste

19 19 Thank you!

Download ppt "1 Efficient and Competitive District Heating and CHP Experience from Finland Seppo Aho Visegrad, Hungary November 5, 2012."

Similar presentations

Ads by Google