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11 Energy Policy in Denmark MONGOLIAN ENERGY DELEGATION 9 September 2013 Danish Energy Agency.

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Presentation on theme: "11 Energy Policy in Denmark MONGOLIAN ENERGY DELEGATION 9 September 2013 Danish Energy Agency."— Presentation transcript:

1 11 Energy Policy in Denmark MONGOLIAN ENERGY DELEGATION 9 September 2013 Danish Energy Agency

2 Program Welcome by Director Energy Technology Anton Beck Danish Energy Policy with emphasis on District Heating by Senior Adviser Niels Bisgaard Pedersen Integration of wind and solar energy in the power and heat supply by Senior Adviser Anders Højgaard Kristensen

3 The Danish District Heating System Key figures  Covers 2/3 of heat demand for space heating and hot water in residential sector  Approximately 130 PJ (20% of final energy consumption)  45% from 11 large scale CHP plants  20% from ~600 small scale CHP – mainly natural gas  20% from heat only boilers – mainly biomass  15% from recovery of industrial waste heat and industrial CHP  Biomass 28%

4 4 Heating installations in residential homes Source: Statistics Denmark

5 Decoupling Economic Growth and Energy Consumption 5

6 Background Energy crisis 1973-74 99% dependent on oil imports, Low energy efficiency in production and consumption Economic crisis and high unemployment SUSTAINABILITY Efficiency Domestic resources, natural gas replaces oil Renewable Energy

7 Measures to decouple economic growth and energy consumption Decentralisation Energy Taxation Modern Energy Legislation for electricity and heat sectors in the late 70ties Heat Planning, District Heating Combined Heat and Power production Energy Efficiency in buildings, households and industry Diversified Supply

8 Infrastructure 1985 – 2009 Decentralisation

9 Municipal heat planning New regulation heat supply in 1979 Allocation heat supply in geographical areas based on economic principles Definition of areas where different forms of heat supply should be prioritised Location of heat supply installations and pipelines ‘Zoning’ of heat supply in DH, natural gas and individual solutions

10 Heat Plannning - Zoning 1) 3) 2)

11 11 District Heating generation from 1975

12 12 CHP share of thermal power and district heating production

13 13 Climate adjusted Index 1990=100 Energy consumption for heating dwellings Today the energy demand in buildings is only 25% of the demand in 1977, before the subsidies Subsidies for energy improvement of buildings Building codes First code 1977 Next 2015 - 2020

14 Electricity and Natural Gas Market 1998 package 2005 package Interconnections Power exchanges NordPool ex.html?target=el_net ex.html?target=el_net system/Production-and- consumption/State-of-the-Nordic-Power- System-Map/ system/Production-and- consumption/State-of-the-Nordic-Power- System-Map/

15 15 Share of renewable energy

16 Energy Agreement 2020 Broad political consensus about an ambitious green transition up to 2020 and a vision for 2050 12% reduction of energy consumption in 2020 compared to 2006 35% renewable energy in energy production in 2020 50% wind energy in the electricity production in 2020 100% renewable energy supply in 2050 Fossils fuels will be phased out

17 The Future of District Heating ? 1) New customer in existing areas 2) Extension of existing areas 3) New district heating areas HAS THE POTENTIAL for DH in DK BEEN EXHASUSTED WITH CURRENT TECHNOLOGIES ? 1) 3) 2)

18 2 nd round - Heat Planning today Heat planning had low focus for many years. Now 2 nd round has begun District Heating is again the key New drivers: Green cities – strong interest in many municipalities National driver: policy on phasing out fossil fuels Flexibility tool for large amounts of wind power in the electricity system District heating enables large scale use of renewables, e.g. biomass and solar heating Competitive advantage due to no excise tax on biomass Significant tax reduction on electricity to DH boilers under certain conditions

19 19 Fuels used for District Heating: Development 1990-2011

20 District heating and wind power Huge challenge to integrate increasing amounts of wind 30% in 2012 and 50% in 2020 The main tool is the strong interconnectors and integration into the Nordic Power market The district heating system will serve as important flexibility tool Heat storage already in place, enabling flexibility between power generation and heat demand for up to 8-10 hours Legislation on electricity taxation changed excluding tax on electricity used for district heating under certain conditions A small no of electric boilers with a total capacity of around 200-300 MW being installed these years.

21 District heating and wind power Large scale heat pumps foreseen to be introduced - will keep efficiency high and will operate during longer periods Substitution of CHP with electricity boilers has double effect Drives power generation down (at CHP plant) Introduces new demand

22 22 Solar heating – a feasible supplement Today big interest in large scale solar heating collectors for district heat generation Mainly as supplement, but also as main source with seasonal storage Driver is lower cost of fuel and taxes. Cost of Natural gas is increasing Size of 10.000-50.000 m2 Total 300.000 m2 + 280.000 m2 under construction Example – Gram District Heating 41.000 m2 solar collector 110.000 m3 heat storage Investment 93 mio DKK Cost reduction 15-25%

23 Conclusion 1) District heating is part of the sustainability 2) Green Cities are very important in an efficient energy system Heat Planning Expansion of district heating reduced dependence of oil Conversion to CHP was important element in deployment of domestic natural gas Power and district heat generation integrated Very high overall thermal efficiency Flexibility and economic efficient A new role for district heating Important flexibility to wind integration Possibility to use more biomass and other renewables

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