Country by Country 2015

TABLE OF CONTENTS
ͧͧ Preface
ͧͧ About EHP
ͧͧ Acknowledgements
ͧͧ International Energy Agency
ͧͧ Executive Summary
ͧͧ Statistics Overview
ͧͧ Country by Country
ͧͧ Austria
ͧͧ Belarus
ͧͧ Bulgaria
ͧͧ China
ͧͧ Croatia
ͧͧ Czech Republic
ͧͧ Denmark
ͧͧ Estonia
ͧͧ Finland
ͧͧ France
ͧͧ Germany
ͧͧ Hungary
ͧͧ Iceland
ͧͧ Italy
ͧͧ Japan
ͧͧ Korea
ͧͧ Kosovo
ͧͧ Latvia
ͧͧ Lithuania
ͧͧ The Netherlands
ͧͧ Norway
ͧͧ Poland
ͧͧ Romania
ͧͧ Serbia
ͧͧ Slovakia
ͧͧ Slovenia
ͧͧ Sweden
ͧͧ Switzerland
ͧͧ United Kingdom
Table of contents - 1 COUNTRY BY COUNTRY / 2015 Survey

PREFACE
PAUL VOSS
PREFACE
Preface - 2 COUNTRY BY COUNTRY / 2015 Survey

PREFACE
Welcome to the Story of Us

A great deal has happened since the publication of the previous edition of our COUNTRY-BY-COUNTRY survey in 2013.
Heating and cooling, a subject which has traditionally languished at the margins of the European policy debate, has
become a priority issue in Brussels1. District Energy in particular has acquired a new degree of importance and visibility
as policy-makers and the broader stakeholder community begin to recognise its high compatibility with the EU’s climate
and energy objectives.
In parallel, actors at all levels of governance, have started to embrace the power of DHC networks with passion, purpose
and conviction. From the United Nations HQ in New York to your local town hall, it’s a good bet that people are talking
about what our industry can deliver2. In short, the future has never looked brighter!
At the same time, and often as a result of this increasing visibility, we will face new (and not-so-new) challenges, notably
ensuring DHC’s compatibility with an increasingly efficient building stock, developing networks in existing urban districts
whose buildings have previously been supplied by conventional boilers, and refurbishing existing networks where
necessary so that they can deliver in practice the efficiency that district energy implies in principle. There is every reason
to believe that we have the resources, the spirit and the confidence to meet these challenges and help District Energy
realise its potential in the years to come.
This survey is more than just a compilation of numbers; more than a series of points on a graph. It is the story of us, the
story of so many people in so many places, driven by a shared conviction that District Energy can and should play a key
role in establishing a more sustainable energy model. We already look forward to celebrating the coming successes in the
2017 survey. In the meantime, I hope you’ll find this edition as informative and encouraging as I do!
Finally, a well-earned word of gratitude to all of the many people and organisations whose knowledge, support and
commitment to cooperation made it possible to compile this precious information in one location. Special thanks go
to Euroheat & Power’s own Krzysztof Laskowski and Dana Popp both of whom worked tirelessly to help deliver this
publication without delays and without panic.
Happy reading!
Paul Voss
Managing Director
1 The European Commission organised on 25-27 February 2015 the first ever high level event on Heating and Cooling – all details are
available on http://heating-and-cooling-in-europe.eu/
2 The United Nations Environment Programme published the “District Energy in Cities” report in February 2015, an initiative supported by
numerous stakeholders including Euroheat & Power and many of its members: http://www.unep.org/energy/districtenergyincities
Preface - 3 COUNTRY BY COUNTRY / 2015 Survey

ABOUT EHP
ABOUT EHP
ABOUT EUROHEAT & POWER

Euroheat & Power (EHP) is the international association representing District Heating & Cooling (DHC) sector. DHC uses
energy which otherwise would be wasted and renewable energies to provide comfort to buildings.
The association unites members from over 30 countries and represents the interests of the sector at the political level
towards European Union and international institutions.
Find out more at www.euroheat.org

or +32 2 740 2110
or office@euroheat.org
 JOIN TODAY!
Do not miss out on all advantages and become a member now.
About EHP - 2 COUNTRY BY COUNTRY / 2015 Survey

ACKNOWLEDGEMENTS
ACKNOWLEDGEMENTS
SPONSORS OF ‘DISTRICT HEATING AND COOLING - COUNTRY BY COUNTRY 2015 SURVEY‘:

• Danfoss A/S • Inpal Energie
• Brugg Rohrsystem AG • Logstor A/S
AUTHORS OF CHAPTERS:
AUSTRIA HUNGARY ROMANIA
Katalin-Andrea Griessmair Péter Orbán Cristina Cremenescu
Association for Gas and District Heating MaTáSzSz - Association of Hungarian Romanian Association of Producers
Companies (FGW) District Heating Enterprises in Cogeneration (COGEN Romania)
BELARUS ICELAND SERBIA

Mikhail Malko Sigurjon N. Kjærnested Bojan Bogdanović and
Institute of Power Engineering of the Samorka, Icelandic Energy and Utilities Petar Vasiljević
National Academy of Sciences of Belarus Pubic utility company
ITALY “Beogradske Elektrane”
BULGARIA Ilaria Bottio
Ilia Nikolaev Associazione Italiana Riscaldamento SLOVAKIA
Bulgarian District Heating Association Urbano – AIRU Jozef Legény
CHINA JAPAN SLOVENIA

James Guan Xin Yuichi Honda Aleksander Trupej and
China District Heating Association Japan Heat Supply Business Association Dejan Koletnik
(JHSBA) Slovensko društvo za daljinsko
CROATIA energetiko (Slovenian District
Jadranka Maras Abramović KOREA Energy Association)
Energy Institute Hrvoje Požar Wonjin Chang
Korea District Heating & Cooling SWEDEN
CZECH REPUBLIC Association Sonya Trad
Jolana Bugáňová Swedish District Heating Association
Association for District Heating of the KOSOVO
Czech Republic (ADH CR) Skender Kabashi SWITZERLAND
University of Prishtina Marcel Kolb
DENMARK Swiss District Heating Organisation
Birger Lauersen LATVIA
Dansk Fjernvarme - Janis Berzins UNITED KINGDOM
Danish District Heating Association Latvian District Heating Association Hanaé Chauvaud de Rochefort
The Association for Decentralised
ESTONIA LITHUANIA Energy (ADE)
Õnne-Ly Reidla Ramunė Gurklienė
Estonian Power and Heat Association Lithuanian District Heating Association IEA
(EPHA) John Dulac and Kira West
NETHERLANDS International Energy Agency
FINLAND Roel Kaljee
Antti Kohopää Association of Energy Companies in EXECUTIVE SUMMARY
Finnish Energy Industries the Netherlands (Energie-Nederland) Krzysztof Laskowski
Euroheat & Power
FRANCE NORWAY
Julie Purdue and Antoine Hochar Heidi Juhler
Syndicat National du Chauffage Urbain Norwegian District Heating Association -
et de la Climatisation Urbaine (SNCU) Norsk Fjernvarme
GERMANY POLAND
Maria Grajcar Małgorzata Kwestarz
AGFW - Energy Efficiency Association Warsaw University of Technology
for Heating, Cooling and CHP
Acknowledgements - 2 COUNTRY BY COUNTRY / 2015 Survey

INTERNATIONAL ENERGY AGENCY
JOHN DULAC
KIRA WEST
INTERNATIONAL ENERGY AGENCY
International Energy Agency

JOHN DULAC - KIRA WEST
THE INTERNATIONAL ENERGY AGENCY SEES AN IMPORTANT ROLE FOR COMBINED HEAT AND POWER
AND DISTRICT HEATING AND COOLING IN ITS VISION OF A SUSTAINABLE ENERGY FUTURE
The International Energy Agency (IEA) is an autonomous agency established in 1974, which carries out a comprehensive
programme of energy co-operation among 29 advanced economies. The IEA’s four main areas of focus are: energy security,
economic development, environmental awareness, and engagement worldwide.
Combined Heat and Power (CHP) and District Heating and Cooling (DHC) can deliver environmental, energy, and economic
benefits due to their enhanced conversion of energy and the possibility of using waste heat and renewable energy inputs.
These technologies can also provide flexibility to electric and thermal grids, facilitating the transition to the more integrated,
sustainable energy networks of the future. Despite these benefits, the potential of CHP and DHC systems has not been fully
realised, and could contribute more to climate change mitigation and energy security strategies.
The IEA International CHP and DHC Collaborative was initiated in 2007 with the goal of accelerating deployment of cost-
effective, clean CHP and district energy technologies, leading to increased use of renewable energy, reduced CO2 emissions
and increased overall efficiency of the energy system; and of providing a platform for stakeholders to share best practices
policies and experiences and applied solutions on these technologies.
In 2013, the Collaborative published three new country scorecards, on Japan, Korea, and Finland, followed by two additional
scorecards in 2014, on India and the United States. Each country scorecard aims to provide additional data on CHP and DHC
at the country level, including CHP average performance, CHP capacity breakdown by size and technology, and DHC energy
supply mix; to discuss current status of CHP/DHC in national context; to outline policy efforts and identify strengths and
weaknesses; to evaluate potential for additional deployment; to identify country-specific challenges to CHP and DHC; and
to recommend solutions to help overcome barriers in market and policy frameworks. The report provides a set of policy
strategies to overcome market and policy barriers from an energy systems integration approach. This programme of work will
be continued in the next phase of the Collaborative’s work, with additional country scorecards to be published in 2015-2016.
In 2014, the Collaborative also published a report, Linking Heat and Electricity Systems: Cogeneration and District Heating
and Cooling Solutions for a Clean Energy Future, which developed a compendium of case studies, of both industrial CHP
and integrated approaches of CHP with DHC, distilled lessons learned from those case studies to assess impact on project
development and operation, and identified policy measures and market mechanisms to overcome existing barriers to further
deployment. The report discusses key factors impacting several aspects of CHP/DHC project development and operation:
technology selection, financing mechanism, and business structure. The report was presented at the Collaborative’s workshop
in May 2014, as well as via webinar launch in June.
For more information about the Collaborative, and to download the Collaborative’s publications, please see www.iea.org/chp/.
The IEA intends to continue its work through the CHP and DHC Collaborative in 2015-2016, to continue to analyse options to
overcome existing barriers to enable a step change in the penetration of clean CHP and efficient DHC. Much of this work will
contribute to the Energy Technology Perspectives 2016 publication, which focuses on urban energy systems, with a strong
emphasis on integration. CHP and DHC can play an important role in integrated, future energy systems, and will therefore be
a particularly relevant aspect of the ETP 2016 analysis. For more information on the Energy Technology Perspectives project,
please see www.iea.org/etp/.
In addition, the Implementing Agreement on District Heating and Cooling including Combined Heat and Power (DHC IA) deals
with the design, performance and operation of distribution systems and consumer installations. The DHC IA falls under the
energy technology initiatives (formerly known as Implementing Agreements or ‘IAs’) function within a framework created by
the IEA. The IA mechanism is a flexible and effective means for IEA member and non-member countries, businesses, industries,
international organisations and non-government organisations to research breakthrough technologies, to fill existing research
gaps, to build pilot plants, and to carry out deployment or demonstration programmes. More than 6,000 specialists carry out a
vast body of research through these various initiatives, and more than 1,400 projects have been completed to date. For further
information on the IAs, please consult www.iea.org/techinitiatives/.
The DHC IA has been in operation since 1983, and with more than 80 research projects completed, it is dedicated to helping
make District Heating and Cooling and Combined Heat and Power powerful tools for energy conservation and the reduction
of environmental impacts of supplying heat. The research addresses both technical and policy-related issues. Current projects
include a transformation roadmap from high to low temperature systems, optimising urban form for district networks, a user-
centred approach to system operation and management, governance models and processes for deploying thermal grids, and
a joint project with other IAs on low-temperature District Heating for future energy systems. For more information, please
visit www.iea-dhc.org.
International Energy Agency - 2 COUNTRY BY COUNTRY / 2015 Survey

EXECUTIVE SUMMARY
KRZYSZTOF LASKOWSKI
EXECUTIVE SUMMARY
1 INTRODUCTION
The 2015 edition of the District Heating and Cooling Country-by-Country Survey is the latest effort from Euroheat & Power
to provide a comprehensive statistical overview of the current state of the sector across the globe and compensate for
existing shortcomings with regards to heat statistics. Over the years, this biennial survey, one of Euroheat & Power’s central
publications, has gained widespread recognition and become regarded as the most complete and authoritative overview
of the state of the sector. Throughout the years the editions of the Survey have been well-read and highly popular among
District Heating and Cooling experts, policymakers, consultants, engineering companies, municipal authorities and many
others alike. This year’s edition yet again reaches far beyond Europe and includes chapters on China, Japan and Korea.
There is a lack of consistent data for District Heating available at international level. This means that the energy efficiency
potential of the District Heating and Cooling sector is often overlooked by policymakers. The methodologies used by
the International Energy Agency and Eurostat for collecting heat-related statistics do not recognise the full potential of
District Heating and Cooling for primary energy savings and use of different energy sources1. This is why Euroheat & Power
monitors data on key District Heating denominators including capacity, heat sources, sales, turnover and trench length.
Good data is the lifeblood of evidence-based policy making. Statistics about the energy efficiency potential of District
Heating and Cooling in the EU are crucial to improve its energy policies and facilitate reaching its long-term climate
and energy objectives. Moreover, they are essential for investors in District Heating and Cooling plants and networks,
suppliers of systems, products and services related to the sector to allow them to take informed decisions. As the ongoing
discussions on the EU energy security have shown, heat is an important part of the energy supply system. In this context,
the European Union urgently requires a better understanding of the potential of cogeneration and District Heating to
provide energy savings and sustainable heat.
Members of Euroheat & Power have continued in their support of this coordinated effort to collect District Heating and
Cooling statistics and prove further the benefits of the sector in a transparent and concise manner. As heat accounts
for 45% of final energy consumption in the European Union, District Heating and Cooling can help develop sustainable
solutions and reduce energy imports through heat recovery and recycling whilst satisfying local heat demand. This
publication aims at providing essential data about the state of the sector, complementing statistics with description
of regulatory framework, and helping to get a better understanding of the future development potential in achieving
environmental and energy goals.
2 METHODOLOGY
Following the long tradition of the ‘District Heating and Cooling – Country-by-Country Survey’, the 2015 edition is based
on an extensive questionnaire completed by members and associates of Euroheat & Power throughout the world.
Since the last edition, the questionnaire has been improved and harmonised to ensure that, where possible, District
Heating and Cooling statistics are comparable across countries and include the most important and relevant indicators.
As a result, a category of Top District Heating and Cooling indicators was created, which includes harmonised information
on: District Heating sales, trench length, turnover, heat sources and residential market share.
The members of Euroheat & Power aim to come to a European-wide acceptance of the same key indicators so that, on a
national level, identical data is available in all countries. This in turn will allow for better analysis of and modelling for the
sector.
To complement the numerical data presented by the Top District Heating and Cooling indicators, the questionnaire
is accompanied by a set of questions giving a detailed description and insight into the intricacies of different national
markets. The chapters follow the structure of the questionnaire and, where available, include information on: District
Heating and heat markets, District Cooling and cooling markets, CHP, weather conditions and the energy use of buildings.
The survey therefore includes quantitative data but also provides its qualitative interpretation and contains regulatory
framework analyses from national experts. First and foremost, all chapters in this book are of high quality due to the
painstaking efforts of the authors.
1 For more information see: Euroheat & Power comments on the EU heat statistics
Executive Summary - 3 COUNTRY BY COUNTRY / 2015 Survey

EXECUTIVE SUMMARY
3 DISTRICT HEATING
In the European Union, 45% of the final energy consumption is used for heating, compared with only 20% used for
electricity, 26% for transport and 9% for ‘non-energy use’ (IEA, 2010). Buildings account for 40% of the final energy
consumption out of which 68% of their total energy is used for space heating and 14% for warm water preparation2.
The energy mix used to generate heat is largely based on fossil fuels, with gas and oil accounting for about 51% and 25%
respectively in the OECD Countries (IEA, 2011).
In Europe, there are over 6,000 District Heating systems, which meet 12% of Europe’s total demand for heat. Based on
the IEA 2012 energy balances, 72.8% of district heat used in the 28 EU Member States was recycled heat from electricity
production (CHP) usingHeat
biomass sources
or fossilfor fuels,
District
but alsoHea9ng
from (Waste-to-Energy
EU 28) cogeneration plants or industrial processes.
Heat
Heat ssources
ources for
for DDistrict
istrict HHea9ng
ea9ng (EU
(EU 228)
8)
Only 19.5% of district heat was produced in fossil fuel heat-only boilers. The remaining 7.7% of district heat was produced
directly from renewable energy
Heat sources
sources for inDistrict
heat-only boilers(and
Hea9ng EU 2installations
8) other than CHP. The use of renewables has
been steadily increasing in the past decade and, in total, the share of renewables in the District Heating energy mix is
now at 23.3%, which means that European District Heating systems have already met the EU Renewables target of 20%
by 20203.
Heat sources for District Heating (EU 28)
100%
100%
100%
90%
100%
90%
90%
80% Fossil fuels, direct use
90%
80%
80% Fossil
Fossil fuels,
fuels, ddirect
irect uuse
se
70%
80% Fossil fuels, direct use
70%
70%
Renewables, direct use
60% (geothermal,
Renewables, dbdirect
Renewables, iomass,
irect uuse
se
70%
60%
60% and waste) bbiomass,
(geothermal,
(geothermal, iomass,
50% Renewables,
and aste) direct use
and wwaste)
60%
50%
50% Recycled heat,
(geothermal, renewable
biomass,
CHP (waste
Recycled
Recycled
and w and renewable
hheat,
aste) eat, rbenewable
iomass)
40% CHP
CHP (waste
(waste aand
nd bbiomass)
iomass)
50%
40%
40% Recycled heat, renewable
30% Recycled
CHP heat,
(waste and fossil CHP
biomass)
40%
30%
30% and industries
Recycled
Recycled hheat,
eat, fossil
fossil CCHP
HP
and
and industries
industries
20%
30% Recycled heat, fossil CHP
20%
20%
and industries
10%
20%
10%
10%
0%
10%
1991
1993
1995
1996
1997
1998
1999
2001
2003
2005
2006
2007
2008
2009
2011
1990
1992
1994
2000
2002
2004
2010
2012
0%
0%
1991 1991
1991
1993 1993
1993
1995 1995
1995
1996 1996
1996
1997 1997
1997
1998 1998
1998
1999 1999
1999
2001 2001
2001
2003 2003
2003
2005 2005
2005
2006 2006
2006
2007 2007
2007
2008 2008
2008
2009 2009
2009
2011 2011
2011
1990 1990
1990
1992 1992
1992
1994 1994
1994
2000 2000
2000
2002 2002
2002
2004 2004
2004
2010 2010
2010
2012 2012
2012
0%
Source: Prof. Sven Werner, Halmstad University, based on IEA Energy Balances 2012
2 European Construction Technology Platform (http://www.dhcplus.eu/wp-content/uploads/2012/05/120529_Vision_DHC_

final.pdf)
3 Source: Prof. Sven Werner, Halmstad University, IEA Energy Balances 2012

EXECUTIVE SUMMARY
Heat sources for District Heating (EU 28)
3,000
3,000
3,000
2,500
2,500
2,500
Recycled
Recycled heat,
heat,
fossil
fossil
CHP
CHP
2,000
2,000 and
and
industries
industries
Recycled heat, fossil CHP
2,000 and industries
Recycled
Recycled heat,
heat,
renewable
renewable
PJ/year
PJ/year
CHP
CHP (waste
Recycled (waste
and
heat, arnd
biomass)
biomass)
enewable
PJ/year
1,500
1,500
1,500 CHP (waste and biomass)
Renewables,
Renewables, direct
direct
use
use
(geothermal,
(geothermal, b iomass,
b iomass,
Renewables, direct use
1,000
1,000 and
and
waste)
waste) biomass,
(geothermal,
1,000 Fossil
Fossil
f uels,
fuels,
and waste) direct
direct
use
use
Fossil fuels, direct use
500
500
500
0 0
1991
1991
1995
1995
1997
1997
1998
1998
1999
1999
2001
2001
2005
2005
2007
2007
2008
2008
2009
2009
2011
2011
1990
1990
1992
1992
1993
1993
1994
1994
1996
1996
2000
2000
2002
2002
2003
2003
2004
2004
2006
2006
2010
2010
2012
2012
0
1991
1995
1997
1998
1999
2001
2005
2007
2008
2009
2011
1990
1992
1993
1994
1996
2000
2002
2003
2004
2006
2010
2012
Source: Prof. Sven Werner, Halmstad University, based on IEA Energy Balances 2012
More sustainable heat can be easily delivered in the future by expanding District Heating. Today at least 60 million EU
citizens are served by District Heating systems. Additionally, over 140 million EU citizens live in cities with at least one
District Heating system and approximately 57% of the EU population lives in regions that have at least one District Heating
system. As established by the Heat Roadmap Europe pre-studies, if appropriate investments were to be made in urban
heat networks, half of Europe’s heat requirements could be met through District Heating by 2050. This would considerably
reduce the costs of the energy transition, as local heat recycling from cogeneration plants coupled with the increased
use of renewable energy sources reduce Europe’s dependency on energy imports while increasing the efficiency of both
electricity and heat sectors at the same time4.
With a high proportion of variable renewable electricity in the European energy system of the future, District Heating
networks connected to thermal storage can balance the electricity gird by absorbing excess electricity from intermittent
renewable energy sources. Moreover, combined heat and power plants used with District Heating systems can actively
support the electricity supply system during times of peak-load demand.
4 If more District Heating is implemented compared to a reference scenario outlined in the European Commission’s Energy
Roadmap 2050 (assuming the same fuel prices). Sven Werner, Henrik Lund, Heat Roadmap Europe 2050 (2012, http://www.
heatroadmap.eu/)

EXECUTIVE SUMMARY
TOP DISTRICT HEATING AND COOLING INDICATORS

The Top District Heating and Cooling Indicators identified by the Euroheat & Power’s Working Group on Statistics as the
most important statistical sets of data for the sector include the following information:
• Energy supply composition for District Heating;
• District Heating sales to customers;
• District Heating sales turnover;
• Share of citizens served by District Heating;
Energy supply composi0on for Di
• Trench length for the transport and distribution network.
Energy supply composition for District Heating
The main idea behind District Heating is to use energy that is already available and that would otherwise be wasted,
through heat recovery and recycling. In order to reduce primary energy use and CO2 emissions, district heat generation
in Europe is mainly based on heat recycled from combined heat and power (CHP), which includes a variety of fuels, such
as biomass, natural gas and coal. The remaining part is either based on the direct use of renewable energy sources such
as solar thermal, geothermal and biomass heat-only boilers or fossil fuel heat-only boilers used for peak-load demand.
District Heating is a local business using local available resources. Therefore, the fuels used vary throughout Europe and
also depend on national resources and historical developments.
The figure below illustrates the energy supply composition for generated District Heating. The results differ between
countries but in most of them district heat generation is based on recycled heat. The data collated in this survey, together
with other studies such as the Heat Roadmap Europe, provides a solid proof that District Heating is the ideal technology to
make use of the energy that is already available.
Energy supply composition for District Heat generated
100%
90%
80%
70%
60% Other
50% Direct Renewables
40% Recycled heat
30%
20%
10%
0%
Austria
Bulgaria
Croa9a
France
Serbia
Estonia
Iceland
Latvia
Netherlands
Poland
Romania
Slovakia
Slovenia
Switzerland
Czech Rep.
Finland
Lithuania
Hungary
Sweden
Norway
Italy
Denmark
Germany
The three different categories used in the graph above are defined as follows:
• ‘Recycled heat’ includes surplus heat from electricity production (CHP), Waste-to-Energy cogeneration plants and
industrial processes independently of the fuel used (renewables or fossil) for the primary process. Two-thirds of the
energy delivered by heat pumps is also considered as recycled heat.
• ‘Direct renewable’ covers the use of renewable energy in heat-only boilers and installations other than CHP.
• ‘Other’ covers heat-only boilers, electricity and one-third of the heat originating from heat pumps
Where available, detailed information on the development of the energy sources utilised in the District Heating sector can
be found in the specific country chapters.

EXECUTIVE SUMMARY
District Heating sales to customers

Total District Heating sales are a good indicator of the size and significance of the sector in a given country. In combination
with the average District Heating price, it is possible to calculate an indicative District Heating sales turnover, which can
provide information about the economic significance of the sector.
However, District Heating sales are not useful as a way to calculate growth in the sector and can be misleading because
of the changing energy requirements of District Heating customers. As building standards improve and many buildings
connected to District Heating are refurbished, the energy use of buildings is declining. Lower thermal demand has a
negative effect on the total District Heating sales even though the number of customers connected stays the same or
increases. As a result, overall District Heating sales may be falling despite the fact that new customers are actually being
continuously connected to the network.
On the other hand, demand for hot water increases in markets where boilers traditionally used for hot water preparation
are being replaced with District Heating. Additionally, the increase in Europe’s building stock compensates somewhat for
the falling demand for heat from individual buildings.
District Heat sales in 2013 and 2009
300,000
250,000
200,000
TJ
150,000
Total Distri
100,000
Total Distri
50,000
0
Austria
Bulgaria
Croa4a
France
Netherlands
Serbia
Slovakia
Estonia
Iceland
Korea
Latvia
Lithuania
Poland
Slovenia
Sweden
Switzerland
Czech Rep.
Finland
Norway
Italy
Japan
Denmark
Germany
Hungary
Total District Heat sales in 2013
Total District Heat sales in 2013 Total District Heat sales in 2009
Total District Heat sales in 2009

France
Iceland
Korea
Latvia
Netherlands
Serbia
Slovakia
Slovenia
Sweden
Switzerland
Lithuania
Poland
Norway
Slovenia Italy
Japan
Germany
Hungary
District Heating sales in 2013 remained stable in the European Union and amounted to 1,433,788 TJ in the countries
surveyed5, down 4% on 2009 levels. Most District Heating was sold in Germany (254,839 TJ fed into grid) followed by
Serbia
Poland
Slovakia
Sweden
Switzerland
Norway
Poland (248,693 TJ) and Sweden (175,972 TJ). The biggest growth compared with 2009 levels was recorded in Austria (+28%
to 80,747 TJ) and Italy (+41% to 33,119 TJ). The biggest falls in the sales volume of District Heating occurred in Hungary
(-24% to 30,967 TJ), Slovakia (-12% to 82,726 TJ) and Bulgaria (-10% to 18,002 TJ), mostly because of the introduction of
energy efficiency measures at the end-user level but also as a result of refurbishment of old networks with modern, pre-
insulated pipes minimising distribution losses. However, customer disconnections have also influenced the final figures.
5 Includes only those EU countries for which data was available: Austria, Bulgaria, Croatia, Czech Republic, Denmark, Estonia,
Finland, France, Germany, Hungary, Italy, Latvia, Lithuania, Netherlands, Poland, Slovakia, Slovenia, Sweden. Please note that
some national figures may have been given for member companies of national associations only. For details, please see specific
country chapters.

EXECUTIVE SUMMARY
Outside the European Union, the biggest district heat sales growth was recorded in China, which remained the largest
market in the world with 3,197,032 TJ (+24.9% from 2009). Total District Heat sales in China
Total District Heat sales in China
3,500,000
3,000,000
2,500,000
2,000,000 Total District Heat sales in 2013
TJ
1,500,000 Total District Heat sales in 2009

1,000,000
500,000
0
China
District Heating sales turnover

District Heating sales turnover, which is a combination of District Heating sales and the average District Heating price,
could only be calculated where data was available in the countries covered by this survey.
It should be noted that this indicator is to be distinguished from the total turnover of the District Heating and Cooling
sector as it provides simplified information only on the heat sold. An indicator for the general turnover of the District
Heating sector would in addition need to consider the entire infrastructure (e.g. pipes or substations) as well as services
provided by consultants etc. The figure would therefore be considerably higher.
In general, the District Heating sales turnover in 2013 increased significantly in comparison to 2009 in most European
countries for which data was available, with the highest values being recorded in Germany (5,701 million Euro, +6%),
Poland (3,083 million Euro, +18%), and Denmark (2,945 million Euro, +18%).
District Heating sales turnover in 2013 and 2009
6,000
5,000
Million Euro
4,000
3,000
Annual District H
2,000
Annual District H
1,000
0
United Kingdom
Serbia
Slovakia
Slovenia
Sweden
Switzerland
Austria
Bulgaria
Iceland
Japan
Korea
Latvia
Poland
Czech Rep.
Estonia
France
Finland
Lithuania
Hungary
Norway
Denmark
Germany
Annual District Heat sales turnover 2013

Annual District Heat sales turnover 2013 Annual District Heat sales turnover 2009
Annual District Heat sales turnover 2009

nited Kingdom
France
Estonia
Iceland
Japan
Korea
Latvia
Serbia
Slovakia
Slovenia
Sweden
Switzerland
Finland
Lithuania
Poland
Hungary
Norway
Germany

Kingdom
Serbia
Poland
Slovakia
Slovenia
Sweden
itzerland
EXECUTIVE SUMMARY
Share of citizens served by District Heating

This indicator was developed in order to show how many people in a given country benefit from District Heating. The
considerable variations from country to country are due to the fact that demand for space heating is met in many
different ways in Europe. In some countries, the use of natural gas in individual boilers dominates the marketplace. In
other countries, District Heating systems dominate the low temperature heat market. In the Mediterranean area, annual
demand for heating is low and the market for space heating has been traditionally fragmented. The European market for
heating is highly diversified, with many different solutions used to satisfy heat demand at an acceptable cost for final
customers.6
In 2013, the share of citizens served by District Heating exceeded 50% in eight European countries: Iceland (92%), Latvia
(65%), Denmark (63%), Lithuania (57%), Estonia (62%), Poland (53%), Sweden (52%) and Finland (50%).
Share of citizens served by District Heating in 2013
Share of ci+zens served by District Hea+ng in 2013

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
United Kingdom
Austria
Belarus
Serbia
Bulgaria
Croa:a
France
Iceland
Slovakia
Switzerland
Korea
Slovenia
Sweden
Latvia
Netherlands
Poland
Romania
Czech Rep.
Estonia
Finland
Lithuania
Hungary
Norway
Italy
Denmark
Germany
Trench length for transport and distribution network

This indicator provides a fair insight into the growth of the market for District Heating. Unlike ‘District Heating sales
to customers’, it does not depend on the amount of energy consumed by customers, which, due to energy efficiency
measures in buildings, decreased in some countries.
Almost all European countries reported an expansion of the trench length development in 2013 in comparison to 2009,
with the biggest percentage change occurring in Italy (+58% to 3,807 km), Austria (+21% to 4,918 km), Sweden (+21% to
23,667 km), Finland (+14% to 13,850 km) and France (+12% to 3,725 km).
6 See Work Package 1 of the Ecoheatcool project, co-financed by the European Commission (http://www.euroheat.org/
ecoheatcool)

Trench length of District Hea4ng pipeline system in 2013
EXECUTIVE SUMMARY
Trench length of the District Heating pipeline system in 2013 and 2009
30,000
25,000
20,000
Trench length
4ng pipeline system in 2013 and 2009

km
15,000 Trench length
10,000
5,000
0
United Kingdom
Switzerland
Austria
Netherlands
Serbia
Slovakia
Slovenia
Sweden
Bulgaria
Croa4a
France
Japan
Korea
Latvia
Lithuania
Poland
Czech Rep.
Estonia
Finland
Hungary
Norway
Italy
Denmark
Germany
Trench length of District Hea4ng pipeline system 2013

The remarkable size of the District Heating trench length in China has risen further by 43% to reach 178,136 km. Trench length of District Hea4ng pipeline system
China
United Kingdom
Serbia
Poland
Slovakia
Slovenia
Sweden
Switzerland
Norway
Trench length of the District Heating pipeline system in China
200,000
180,000
f District Hea4ng pipeline system
160,000 in 2013 and 2009
140,000 Trench length of District Hea:ng pipe
120,000
km
100,000 Trench length of District Hea:ng pipe

80,000
60,000
40,000
20,000
0
China


dom
apan
orea
atvia
ands
rbia
akia
enia
eden
land
ania
land
rway
Italy
EXECUTIVE SUMMARY
4 DISTRICT COOLING
District Cooling is a sustainable alternative to conventional electricity or gas-driven air conditioning systems. As with
District Heating, customers are connected via a pipe network but in this case the pipe is filled with chilled water. Once it
enters the building, the chilled water loses its coldness by cooling down the temperature inside the building. The main
idea behind it is to use local, natural cooling from the deep sea, lakes and rivers and also to use surplus heat from industry,
Combined Heat and Power and waste incineration. With these chillers driven by heat from cogeneration plants and the
use of resources that would otherwise be wasted or difficult to use, District Cooling systems are between five and ten
times more efficient than traditional electricity-driven equipment.
District Cooling capacity in 2013 and 2009

Electrical peak loads, which traditionally used to arise during winter months, are now shifting to the summer months and
are challenging capacity limits. With this in mind, District Cooling can help avoid peak demand for electricity during the
summer months and can reduce cooling-related electricity consumption by up to 80% compared with a conventional
system. As a consequence, the need for investments in new power generation and network capacities, as well as
greenhouse gas emissions from power production, can be significantly reduced.
The cooling market of the European Union is estimated at 1,220 TWh. Today’s District Cooling capacity comes to only 3
TWh but it has a potential for market saturation of 132 TWh. If District Cooling systems were to expand to reach a 25%
share of the European cooling market, 50 GW of additional electricity peak load capacity could be avoided7. This would
also allow for 42-50 million tonnes of CO2 reductions each year, the equivalent of the annual emissions of 9.5 million
passenger vehicles8.
DISTRICT COOLING CAPACITY

In Europe the total installed District Cooling capacity has been steadily increasing in recent years, with Poland (+514%),
Austria (+168%) and Finland (+74%) recording the strongest growth. France remained the biggest market with the capacity
of 669 MWth.
District Cooling capacity in 2013 and 2009

3 and 2009
800
700
600
MW
500
400
300
200
100
10
0
Austria Finland France Germany Hungary Italy Korea Norway Poland
District Cooling capacity 2013

District Cooling capacity 2009
7 Source: Anders Tvärne and Henrik Frohm, Capital Cooling, 2013

8 See WP 5 of Ecoheatcool project, co-financed by the European Commission (http://www.euroheat.org/ecoheatcool)

EXECUTIVE SUMMARY
DISTRICT COOLING SALES

In Europe, the highest growth rates of District Cooling sales were recorded in Finland (+114% to 609 TJ) and Sweden (+14%
to 3,416 TJ). France remained the second biggest EU market in terms of sales (-5% to 3,168 TJ).
d 2009 District Cooling sales in 2013 and 2009
4,000
3,500
3,000
2,500
TJ
2,000
1,500
1,000
500
0 Trench length of District Cooling pipeline system in 2
Austria Finland France Germany Italy Korea Poland Sweden
District Cooling sales 2013

District Cooling sales 2009
TRENCH LENGTH OF DISTRICT COOLING NETWORKS

District Cooling networks were further extended in the 2009-2013 period, albeit significantly less so than District Heating
networks. District Cooling continues to serve mostly the services sector, which tends to be concentrated in urban centres,
while residential customers are rarely supplied and therefore the length of the pipeline is shorter than in the case of
District Heating.
Tre
Trench length of District Cooling pipeline system in 2013 and 2009
ng pipeline system in 2013 and 2009 Tre
600
500
400
km
300
200
100
0
Austria Finland France Germany Italy Korea Norway Poland Sweden
Trench length of District Cooling pipeline system 2013

Trench length of District Cooling pipeline system 2009

EXECUTIVE SUMMARY
BARRIERS FOR DISTRICT COOLING

The energy demand for cooling/air-conditioning purposes is often underestimated or not known by customers and
decision-makers, as the electricity used for chillers is hidden in the building’s total electricity bill and the cooling energy
delivered is not measured. Customers rely on chiller performance coefficients provided by manufacturers to estimate
their consumption. This lack of knowledge is one of the main reasons why building owners/tenants do not seek to reduce
their cooling demand, improve their system or search for an alternative solution.
As the energy demand for cooling purposes is hardly ever known at an individual, national or European level, the statistical
information relating to cooling energy demand is missing and is mainly based on estimations. This leads policymakers to
rarely see cooling as an important area for regulation, research and support.
5 CHP
Total share of CHP in na1onal electricity
DEVELOPMENTS IN CHP produc1on in 2013
The share of CHP in electricity production varies considerably throughout Europe.
Total share of CHP in national electricity production in 2013
70%
60%
50%
40%
30%
20%
10%
0%
United Kingdom
Austria
Belarus
Bulgaria
China
Croa:a
Korea
Latvia
Slovakia
Switzerland
Slovenia
Sweden
Czech Rep.
Estonia
France
Lithuania
Poland
Romania
Finland
Norway
Italy
Denmark
Germany

EXECUTIVETotal
SUMMARY share of CHP in District Hea3ng
genera3on in 2013
However, CHP plants play a crucial role for generating District Heat with a share of cogeneration exceeding 50% in most
countries.
Total share of CHP in District Heating generation in 2013
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
United Kingdom
Austria
Bulgaria
China
Croa;a
France
Korea
Latvia
Romania
Switzerland
Czech Rep.
Estonia
Finland
Lithuania
Poland
Slovakia
Slovenia
Sweden
Norway
Italy
Denmark
Germany
6 OVERVIEW OF DISTRICT HEATING

IN THE EUROPEAN UNION
District Heating in Europe varies from mature markets to relatively new markets with high potential for future growth. In
general, the Nordic markets are considered to be the most mature with modern energy infrastructure increasingly making
use of renewable energy sources. The Central and Eastern European markets are also well established with high market
share but equally high need for renovation. Finally, the Western European markets, where District Heating has been
historically less present, register the strongest growth each year and have the biggest potential for future development.
MATURE MARKETS
In Finland, Sweden and Denmark District Heating is well established with modern infrastructure and high market share.
Business models differ from the liberalised market of Finland with no specific regulations for District Heating, to Denmark with
the Heat Supply Act which includes the not-for-profit principle that governs the way in which District Heating utilities operate.
District Heating continues to grow in all Nordic markets with new customer connections helping to generate even higher
sales turnover year-on-year. A growing trench length of modern pre-insulated pipes is accompanied by an increased use
of already significant renewable energy sources for District Heating generation including increased use of large-scale heat
pumps and industrial surplus heat in Sweden and Finland.
Despite an already high market share and saturation in some of the biggest cities, coupled with the expected decrease in
heat demand stemming from insulation and better temperature control equipment, there still exists a potential for the
expansion of District Heating in the region. For Sweden this potential is estimated at 4 TWh by 2020 and 8 TWh by 2030
according to the Swedish Energy Agency. As District Heating has a long tradition in the Nordic countries with technical
know-how shared among many well-established consultancies, contractors and component suppliers operating globally,
the transition towards low-temperature 4th generation District Heating is already underway, which allows to remain
optimistic about the future prospects for the sector.

EXECUTIVE SUMMARY
REFURBISHMENT MARKETS
District Heating in Central and Eastern Europe has a tradition dating back to the communist era which saw a significant
development of its infrastructure leading to a very high market share in urban areas today. However, this also means
that there is a need for renovation of old networks with new pre-insulated pipes. As district heat is still predominantly
generated from fossil fuels, there is an increasing tendency to replace them with renewable energy solutions in accordance
with EU climate and energy objectives. A reduction of the heat demand resulting from thermal insulation of buildings
poses another challenge for the development of the sector.
Despite all these challenges, District Heating networks continue to register growth measured in the pipeline trench length
with new customer connections in Poland and the Czech Republic, the biggest markets in the region. In both countries air
pollution standards foster technological change as coal-fired heat-only boilers are being replaced with cogeneration plants,
often biomass fired, helping to increase the use of renewables in the fuel mix. The evolution towards low-temperature
District Heating currently underway is expected to limit heat losses in distribution networks and further stimulate the
uptake of renewable energy sources. Both countries will also see the development of Waste-to-Energy plants in the
coming years, providing sustainable heat in the biggest cities.
Given the challenges ahead of the sector in the region, maintaining a competitive price of District Heating will remain key
for its future market share as customer disconnections are already heavily affecting some of the markets in the region,
notably Romania and Slovakia.
EXPANSION AND NEW DEVELOPMENT MARKETS

The Western European markets have traditionally been dominated by individual boilers. Yet, as governments begin to
recognise the benefits of District Heating for primary energy savings and the environment, District Heating plays an
increasingly important role with its market share steadily growing each year. The new legislative framework, such as the
Heat Act in the Netherlands published in 2014 or the Heat Strategy published by the UK Government in 2013, together
with incentives for District Heating, such as the Heat Fund in France, will set the pace for the future development of the
sector.
However, the growth of the sector will also depend on the future price of gas, which remains the main alternative heating
solution in countries from the region. Moreover, the lack of awareness among policymakers about the positive contribution
of District Heating to the energy transition will probably remain the biggest obstacle to overcome. In all markets with no
national legislative framework for District Heating, the future growth will also depend on the successful implementation
of the European legislation, in particular the Energy Efficiency Directive. As the District Heating networks develop, the
new capacity added into the system is likely to make increasing use of renewable energy sources, as already observed in
Italy and France. The strong growth in installed capacity, sales, turnover and trench length in the past few years coupled
with high density of heat demand that can be met with sustainable energy sources, allows remaining optimistic about the
future prospects of District Heating in the region.
DISTRICT HEATING AND THE EU CLIMATE AND ENERGY OBJECTIVES

As for the role of District Heating in delivering the EU 2050 climate and energy objectives, the authors of many country
chapters pointed out that the potential of District Heating must be better recognised by the EU policymakers. As an
example, the vast majority of the heating of residential, commercial and public buildings is outside of the EU Emission
Trading System (ETS). As many of the individual heating solutions are exempted from various fees and taxes imposed on
District Heating plants, this gives them a competitive edge. For an efficient energy transition, the EU energy efficiency
and renewable energy policies will have to address these and other barriers for District Heating development. Incentives
to invest in sustainable and highly efficient District Heating and Cooling systems which are required for the EU to meet its
climate and energy objectives will also have to be put in place to facilitate an effective energy transition.

STATISTICS OVERVIEW
STATISTICS OVERVIEW COUNTRY BY COUNTRY / 2015 Survey
Unit Austria Belarus Bulgaria China Croatia Czech Rep. Denmark Estonia Finland France Germany Hungary Iceland Italy Japan Korea Kosovo Latvia Lithuania Netherlands Norway Poland Romania Serbia Slovakia Slovenia Sweden Switzerland United
Kingdom
TOP District Heating and Cooling Indicators 2013
Energy supply composition for

District Heat generated
Recycled heat1 % 58% 68% 74% 74% 54% 37% 76% 21% 87% 68% 24% 61% 78% 53% 79% 12% 55% 98% 4.8% 75% 87% 67% 53%
Direct Renewables2 % 23% 2% 46% 15% 9% 39% 1% 2% 76% 16% 12% 20% 1% 61% 6% 2% 0.4% 3% 2% 28% 31%
Other3 % 18% 32% 26% 24% 0.2% 48% 16% 40% 12% 30% 23% 10% 27% 20% 27% 38% 94.8% 22% 10% 5% 16%
Total District Heat sales in 2013 TJ 80,747 18,002 3,197,032 9,678 89,417 105,563 23,025 114,160 86,112 254,839 30,967 28,181 33,119 22,902 172,160 317 21,464 27,100 26,100 16,920 248,693 22,983 82,726 7,744 175,972 17,890
Total District Heat sales in 2009 TJ 63,074 20,088 2,631,880 9,550 93,114 99,568 24,724 116,690 89,719 284,386 40,859 25,271 23,559 22,997 201,389 22,022 27,899 25,300 13,360 272,801 20,870 94,240 7,613 182,970 16,060
Annual District Heat sales M Euro 1,466 207 1,711 2,945 354.6 1,861 1,634 5,701 508.21 145 1,103 343.42 544.98 306.3 3,083 478 1,905 102.69 2,801 271.46 437.5
turnover 2013
Annual District Heat sales M Euro 1,068 223 1,596 2,492 310.3 1,494 1,500 5,383 84 1,108 2,445 305.89 491.02 277.9 2,617 303 1,824 78.94 2,589 233.68
turnover 2009
Percentage of citizens served % 24% 70% 18% 10% 38% 63% 62% 50% 7% 12% 15% 92% 6% 15% 65% 57% 4% 1.00% 53% 23% 27% 35% 15% 52% 4% 2%
by District Heating
Trench length of District Heating km 4,918 1,566 178,136 410 7,738 29,000 1,450 13,850 3,725 20,219 2,158 3,807 672 1,700 2,565 4,000 1,686 20,139 2,085 4,984 753 23,667 1,432 361
pipeline system 2013
Trench length of District Heating km 4,049 1,520 124,807 460 7,554 28,000 1,447 12,200 3,321 19,538 2,285 2,404 736 2,037 1,800 2,535 3,800 1100 19,286 1,970 705 19,528 940
Number of District Heating systems 13 110 666 394 230 400 501 3,372 214 48 200 139 111 68 357 400 261 317 70 57 2,350 63 153 2,000
(plants)
Total installed District Heating MWth 10,300 6,162 462,595 1,800 22,958 5,406 23,270 21,230 49,691 8,377 2,290 8,056 4,241 29,961 213 3,639 9,920 5,850 3,330 56,521 10,480 6,652 15,793 2,276 2,466 335
capacity
Total investment in District Heating M Euro 212.1 2,377 290 500 6.63 53 155 668.22 50
District heated floor space M m2 66 38 5,717 145 31 277 15 112 51 193 27 35.3 41 506 52 41 49 8 308 18.7
Total heat demand for domestic TJ 205,030 70,000 38,686 172,070 131,187 198,500 1,050,000 1,664,400 741,763 25,500 270,000 431,853 90,000 29,523 289,080 182,400
space heating (2012)
Total share of CHP in national % 16% 47.5% 9% 20% 17% 13% 66% 16% 34% 4% 16% 48% 5% 49% 66% 0.5% 19% 7% 27% 32% 9% 2.8% 5.8%
electricity production
Total share of CHP in % 58% 68% 47% 78% 75% 73% 37% 73% 23% 81% 68% 67% 73% 56% 1.5% 57% 90% 31% 77% 41% 52.8% 80%
District Heating generation
CHP heat autoproduction TJ 23,500 10,077 157,210 8,686 867,311 163,276 644 10,365 109,760 20,304
Average energy use of buildings kWh/m² 13.5 kgce 148 136 200 125 171 182 MJ/m3 106 210 130 275 150 139
per m2
District Cooling
District Cooling capacity 2013 MWth 75 204 669 153 10 182 145 43 1
District Cooling capacity 2009 MWth 28 117 630 176 153 167 90 7 1
District Cooling sales 2013 TJ 265 609 3,168 588 6,5 366 251 0.255 3,416
District Cooling sales 2009 TJ 88 285 3,330 675 2,2 461 1,258 46 0.255 2,984
Trench length of District Cooling km 11.2 96 158 51 67 55 20 0.6 506

Trench length of District Cooling km 6 58 131 56 58 20 50 14 0.6 311

1 ‘Recycled heat’ includes surplus heat from electricity production (CHP), Waste-to-Energy cogeneration plants and industrial processes
independently of the fuel used (renewables or fossil) for the primary process. Two-thirds of the energy delivered by heat pumps is also
considered as recycled heat.
2 ‘Direct renewables’ covers the use of renewable energy in heat-only boilers and installations other than CHP.
3 ‘Other’ covers heat-only boilers, electricity and one-third of the heat originating from heat pumps.
COUNTRY BY COUNTRY
10,300MWth
TOTAL INSTALLED
DISTRICT HEATING
85% CAPACITY
OF DISTRICT HEAT
x2
TOTAL INSTALLED DISTRICT
COMES FROM COOLING CAPACITY
DIRECT RENEWABLES MORE THAN DOUBLED
AND RECYCLED HEAT FROM 2011 TO 2013
AUSTRIA
KATALIN-ANDREA GRIESSMAIR
AUSTRIA
1 DISTRICT HEATING
KEY FIGURES
2013 2011 2009

Total installed District Heat capacity (in MWth) 10,300 9,500 8,200
Trench length in km for transport and
4,918 4,376 4,049
distribution network (one way)
Estimation of the total investment in District
Heating and Cooling in Euro (excluding 212,092,252 255,602,192 281,935,072
operational and maintenance costs)
Average CO2 emissions per GWh of district heat
~ 24.3 t/TJ ~ 23.0 t/TJ ~ 22.4 t/TJ
generated
DISTRICT HEATING SALES TO CUSTOMERS (IN TJ)
2013 2011 2009

Residential sector 30,114 26,653 26,288
Industrial sector 11,418 10,902 9,438
Services and other 39,215 35,724 27,347
TOTAL 80,747 73,279 63,074
District Heating sales to customers (in TJ)
District Hea-ng sales to customers (in TJ)

90,000
80,000
70,000
60,000
Services and other
50,000
TJ
40,000 Industrial sector

30,000 Residen>al sector
20,000
10,000
0
2013 2011 2009
Austria - 2 COUNTRY BY COUNTRY / 2015 Survey

AUSTRIA
District Heating development
6,000 90,000
80,000
5,000
70,000
trench length (in km)
Total sales (in TJ)

4,000 60,000
50,000
3,000
40,000
2,000 30,000
20,000
1,000
10,000
0 0
2013 2011 2009
Trench length in km for transport and distribuAon network (one way)
Total sales
AVERAGE DISTRICT HEATING PRICE IN EUR/GJ*
EUR/GJ (Excl. VAT) EUR/GJ (Incl. VAT)

2013 18.2 21.8
2011 17.8 21.3
2009 16.9 20.3
* Defined as national average weighted by delivery and excluding and including output taxes (VAT) and including transmission and distribution
charges and other taxes if applicable.
HEAT SALES TURNOVER
Total District Heat Sales Average District Heating Price Heat sales Turnover

(in TJ) (in EUR/GJ excl. VAT) (in Million EUR)*
2013 80,747 18.2 1,466
2011 73,279 17.8 1,303
2009 63,074 16.9 1,068
* Heat sales turnover calculated with a simplified method as a product of the first and second column

AUSTRIA
ENERGY SUPPLY COMPOSITION OF DISTRICT HEAT GENERATED
2013 2011
Source In TJ In % In TJ In %
In cogeneration
Coal and coal products 3,327 3.8 % 3,200 4%
Oil and petroleum products 3,243 3.7 % 3,871 4.9 %
Natural gas 22,545 25.7 % 21,942 27.5 %
Combustible renewables* 16,093 18.3 % 16,949 21.2 %
Waste** 6,055 6.9 % 5,295 6.6 %
Renewables (direct use)
Combustible renewables* 19,097 21.8 % 15,978 20 %
Solar and other 650 0.7 % 575 0.7 %
Renewable waste*** 601 0.7 % 564 0.7 %
Others
Natural gas 13,453 15.3 % 8,955 11.2 %
Non-renewable waste**** 1,423 1.6 % 1,401 1.8 %
TOTAL 87,769 100 % 79,764 100 %
* includes wood pellets, wood chips, biomass and firewood

**includes both bio-degradable and non-renewable waste
***biodegradable fraction of municipal waste in accordance with Art. 2e of the Renewables Directive
**** non-biodegradable fraction of municipal waste in accordance with Art. 2e of the Renewables Directive
Energy
Energy supply
supply composi0on
composition of gDistrict
of generated enerated
Heat District Heat1
100%
90%
80%
70%
Other
60%
Direct Renewable
50%
Recycled Heat
40%
30%
20%
10%
0%
2013 2011 2009
‘Recycled heat’ includes surplus heat from electricity production (CHP), waste-to-energy cogeneration plants and industrial processes
‘Direct use of renewable’ covers the use of renewable energy in heat-only boilers and installations other than CHP.
‘Other’ covers heat-only boilers, electricity and one-third of the heat originating from heat pumps.

AUSTRIA
FUEL USE FOR DISTRICT HEATING OVER THE LAST TEN YEARS
The trend towards the use of more renewable fuels has continued during the last ten years. In addition, the use of natural
gas has increased over the last decade. However, further development of the natural gas market seems to be uncertain
at present, as a result of continuous changes on the international energy markets. Especially gas-fired CHP plants have
difficulties operating in a cost-efficient way due to low electricity prices and high gas prices.
Heat
Heat fffrom
rom CCogenera-on
ogenera-on bby ffuel
uel (((MWh)
Heat rom
Heat Cogenera-on
from Cogeneration by b y y (MWh)
fuel fuel MWh)
MWh)
16,000,000
16,000,000 Others
16,000,000
14,000,000 Others
14,000,000 Others
14,000,000 Biomass
12,000,000 Biomass
12,000,000 Biomass
12,000,000 Waste
10,000,000 Waste
10,000,000 Waste
10,000,000 Coke Oven Gas, Blast
8,000,000 Coke Oven Gas, Blast
8,000,000 Furnace
Coke Gas
Oven Gas, Blast
8,000,000 Furnace G as
6,000,000 Natural
Furnace Gas
6,000,000 Natural GGas
as
6,000,000 Natural Gas
4,000,000 Oil
4,000,000 Oil
4,000,000 Oil
2,000,000 Lignite
2,000,000 Lignite
2,000,000 Lignite
0
0
0
8
8
0
2
4
6
0
2
4
6
0
2
9989 98
0080 08
9909 90
9929 92
9949 94
9969 96
0000 00
0020 02
0040 04
0060 06
1001 10
1021 12
202 20
202 20
191 19
191 19
191 19
191 19
202 20
202 20
202 20
202 20
202 20
191 19
Heat from Heat

hea/ng pplants
from heating lants by (MWh)
by fuel fuel (MWh)
Heat
Heat ffrom
rom h
h ea/ng
ea/ng p
p lants
lants b
b y
y ffuel
uel ((MWh)
MWh)
Heat from hea/ng plants by fuel (MWh)
12,000,000
Solar, Heat Pump,
12,000,000 Geothermal
12,000,000 Solar, Heat Pump,
Electricity
10,000,000
12,000,000 Solar, Heat Pump,
Geothermal
Solar, Heat Pump,
10,000,000 Geothermal
Electricity
Biomass
Geothermal
Electricity
10,000,000 Electricity
8,000,000
10,000,000 Biomass
Waste
Biomass
8,000,000 Biomass
in MWh
8,000,000 Waste
Coke Oven Gas,
6,000,000
8,000,000 Waste
Blast Furnace Gas
Waste
Wh
Coke Oven
Natural Gas,
Gas
Wh
6,000,000 Coke FOurnace

Blast ven Gas,
Gas
Wh
M
6,000,000 Coke
Blast Oven Gas,
Oil Furnace
Natural Gas Gas
M
Min
4,000,000
6,000,000 Blast Furnace
Natural Gas Gas
in in
Natural Gas
4,000,000 Oil
Lignite
4,000,000 Oil
2,000,000
4,000,000 Oil
Lignite
Lignite
2,000,000 Lignite
2,000,000
2,000,000 0

98
08
90
92
94
96
00
02
04
06
10
12
0
19
20
19
19
19
19
20
20
20
20
20
20
0
0

98 98 98
08 08 08
90 90 90
92 92 92
94 94 94
96 96 96
00 00 00
02 02 02
04 04 04
06 06 06
10 10 10
12 12 12
19 19 19
20 20 20
19 19 19
19 19 19
19 19 19
19 19 19
20 20 20
20 20 20
20 20 20
20 20 20
20 20 20
20 20 20

AUSTRIA
SUMMARY OF THE NATIONAL DISTRICT HEATING AND COOLING MARKET

Heat supply holds a central position within the Austrian energy supply. Heat and hot water generation represent nearly
one third of the final energy consumption. District Heating (including hot water generation) accounts for a 21% share of
the total heat demand.
On average during the last five years, approximately two thirds of the heat supplied to District Heating networks was
produced in high efficient cogeneration plants. However, this trend is decreasing due to difficult economic circumstances
faced by CHP plants. District Heating generation has shifted more and more from highly efficient CHP plants to heating-
only boilers.
Between 2008 and 2013, the final energy consumption of District Heating increased with 29%, equivalent to an annual
growth rate of approximately 5%. In 2013, 37% of District Heating was delivered for the residential sector, 49% for the
services sector, with the remaining 14% for manufacturing.
Today, District Heating utilities in Austria operate a pipeline network of nearly 4,900 km – a 26% increase over the last five
years, equivalent to a 5% annual growth rate.
THE ROLE OF DISTRICT HEATING IN DELIVERING THE EU 2050 CLIMATE AND ENERGY OBJECTIVES
The development of a new Austrian energy strategy up to 2030 is in progress. It is expected that District Heating will
occupy an important role in the national heat policy.
NATIONAL LEGISLATIVE FRAMEWORK HAVING AN IMPACT ON DISTRICT HEATING

Within the national legal package for energy efficiency, taking effect in 2015, several laws have been adopted, introducing
or continuing the subsidisation of District Heating and CHP.
Law for expansion of District Heating and Cooling networks (WKLG)
A law for expansion of District Heating and Cooling was first adopted in 2008 providing state aid of up to 60 million Euro
per year for the construction of new District Heating and Cooling infrastructure.
This planned investment support is meant to lead to:
1. cost-effective CO2 reduction;
2. more energy efficiency;
3. lower electricity use for air conditioning through District Cooling networks;
4. less of air pollution;
5. cost-effective use of existing (industrial) waste heat;
6. acceleration of District Heating expansion in urban regions.
The measures supported by this law are expected to lead to a permanent reduction of emissions of up to 3 million tonnes
of CO2.
NB: Up until the end of 2014, only 52 million Euro had been awarded to companies, instead of the 360 announced by the
Ministry for the Economy.
CHP-Law (KWK-Gesetz)
The aim of the law is to support the construction of new and modernised highly-efficient CHP plants with a subsidy
of maximum 30% of investment costs, depending on the plant conditions and subsidies available. The maximum yearly
subsidies may amount to 12 million Euro.
CHP-Points-Law (KWK-Punkte-Gesetz)
As subsidies for existing CHP plants were phased out by 2010, and due to economic difficulties facing CHP plants, a
new system for subsidies for existing CHP plants (up to 36 million Euro per year) has been adopted. At the moment of
publication of this survey, the proposed legislation was awaiting the green light from the European Commission, within
the notification process.
Environmental support scheme (UFI)
This scheme supports measures targeted at reducing CO2 emissions, such as installing biomass CHP. A subsidy is granted
for investment costs (planning and hardware costs). The scheme is targeted at projects on the border to profitability. A
maximum of 30% of the environmentally relevant costs are subsidised.

AUSTRIA
Regulation on buildings (Wohnbauförderungen)

In Austria, legislative authority for the construction sector lies with the federal states. Major differences can therefore
be observed. In every province, there are schemes to subsidise the investment costs of heating systems, with a focus on
renewables. Most states also provide subsidies for District Heating.
EXISTING DRIVING FORCES AND/OR OPPORTUNITIES THAT FAVOUR AN EXPANSION

OF DISTRICT HEATING
The upcoming 2030 Austrian energy strategy is expected to drive things forward, with District Heating occupying an
important role in the national heat policy.
EXISTING BARRIERS TO THE EXPANSION OF DISTRICT HEATING

The main barriers are listed below:
• The critical situation of CHP due to fuel prices - high gas price versus low electricity price, determined by import
instead of national production;
• High (preliminary) investment costs;
• Time-consuming administrative procedures for permits;
• Not enough support allocation as foreseen by WKLG and UFI;
• Future energy savings obligations;
• Lack of planning and legal security.
The uncertain economic situation on the global energy market, the dramatic deterioration of the economic situation of
CHP plants and the lack of clear and stable framework conditions lead to a decrease of investment plans. District Heating
companies have therefore reduced their investment intentions. The ten-year investment volume for the period 2014 to
2023 decreased from an initially foreseen 1.5 billion Euro a year to 1.1 billion Euro, equivalent to a 25% drop.
2 HEAT MARKET
TOTAL HEAT DEMAND FOR DOMESTIC SPACE HEATING IN 2013: 205,030 TJ
CITIZENS SERVED BY DISTRICT HEATING
Number of citizens served by District Heating 2,012,516

Total number of citizens 8,477,230

AUSTRIA

Share of ci+zens served by District Hea+ng
24%
DISTRICT HEATED FLOOR SPACE
2013 2011 2009

million m 2
66 57 53
SHARE OF ENERGY SOURCES USED TO SATISFY HEAT DEMAND IN THE RESIDENTIAL SECTOR IN 2013
Source In %
District Heating 12.4%
Natural gas 21.9%
Electricity 5.8%
Oil / Petroleum products 22.6%
Coal 0.7%
Renewables* 32.5%
Heat pumps 4.1%
TOTAL 100%
* Includes wood pellets, wood chips, biomass, firewood, geothermal, solar thermal

AUSTRIA
Energy sources used to satisfy heat demand
Energy sources used to sa/sfy heat demand
4%
12%
District Hea1ng
Natural gas
32% Electricity
22%
Oil / Petroleum products
Coal
Renewables*
6% Heat pumps
1% 23%
In 2013, space heating and hot water generation accounted for 30% of the final energy consumption, with a 30% dominating
share of renewable energy (biofuels, biomass, waste, ambient heat) and 24% natural gas. The District Heating share within
the total final energy consumption was 7%, satisfying 21% of the total Austrian heat demand.
3 DISTRICT COOLING
KEY FIGURES
2013 2011 2009

Total installed District Cooling capacity (in MWth) 75 35 28
Total District Cooling sales (in TJ) 264.9 233.4 88.2
District Cooling trench length in km for transport and
11.2 7.4 6
Development o
Development off installed District
installed CoolingC
District capacity (incMWth)
ooling apacity
(in MWth)
80
60
MWth
40
20
0
2013 2011 2009

AUSTRIA
Development of District Cooling sales (in MWh)

300
250
200
TJ
150
100
50
0
2013 2011 2009
District
District Cooling
Cooling trench length
trench development
length (one way(in
development km)way
one
in km)
12
10
8
km
6
4
2
0
2013 2011 2009
DISTRICT COOLING DEVELOPMENT OVER THE LAST FIVE YEARS (2008-2013)

District Cooling is considered to be a very ecological system compared to traditional cooling systems, causing less CO2
emissions and mainly using waste heat from production plants as primary energy. Being a new operation area, District
Cooling provides considerable new sales potential to Austrian District Heating companies.
Investments of 90 million Euro have been made in the years 2008 to 2013. District Cooling sales amounted to about 90
GWh in 2013.
However, due to the aforementioned economic circumstances, investments in District Cooling have also been reduced. The
ten-year volume of planned investments for the period 2014 to 2023 is 28 million Euro, only a quarter of the investments
previously intended.

OF DISTRICT COOLING
The 2008 law for expansion of District Heating and Cooling (WKLG) was put in place to provide state aid of up to 60 million
Euro per year for the construction of new District Heating and Cooling infrastructure.

AUSTRIA
EXISTING BARRIERS TO THE EXPANSION OF DISTRICT COOLING

Despite the favourable context intended by the 2008 law for expansion of District Heating and Cooling (WKLG), subsidies
have been only partially allocated. Moreover, District Cooling is also confronted with high (preliminary) investment costs,
administrative burden to getting permits as well as the lack of adequate planning and legal security.
4 COOLING MARKET
Studies indicate that in Austria (in Vienna, in particular) the demand for cooling energy is also on the rise. Compression
refrigerators, which are powered by electricity, are certainly very efficient at producing cold air. However, even in a
country such as Austria which makes full use of its capacity to produce hydroelectricity, a rise in consumption would mean
that additional electricity would have to be produced in thermal power plants, necessarily increasing dependency on fossil
fuels and, by consequence, emission levels.
While District Cooling was for many years only present in Linz, several projects were completed in Vienna since 2007. A
preliminary market research survey has noted that there are a number of sites around Vienna which could make use of
the District Cooling output of 240 MWh.
Today, District Cooling is in the same position District Heating was in Austria in the 1970s. In view of the ecological
and commercial benefits generated by District Cooling, it has a bright future and the network is expected to expand
considerably over the coming decades.
5 CHP IN ELECTRICITY GENERATION

SHARE OF CHP IN ELECTRICITY GENERATION IN 2013: 16%
SHARE OF CHP IN DISTRICT HEATING GENERATION IN 2013: 58%
FUEL SOURCES USED FOR CHP IN 2013
CHP/District heat CHP/Industry CHP/Total

Source In TJ In TJ In TJ
Oil / Petroleum products 872 7,456 8,327
Coal and coal products 4,167 2,412 6,579
Natural gas 43,560 9,638 53,198
Renewables* 20,378 14,651 35,029
Waste 4,138 3,830 7,968
TOTAL 73,116 37,985 111,101
* Includes wood pellets, wood chips, biomass and firewood

AUSTRIA
Fuel sources used for CHP in 2013

120,000
100,000
80,000 Waste
Renewables*
TJ
60,000
Natural gas
40,000
Coal and coal products
20,000 Oil / Petroleum products
0
in TJ in TJ in TJ
6 CLIMATE CONDITIONS
NUMBER OF HEATING DEGREE DAYS IN 2013: 3,301
DESCRIPTION OF THE CLIMATIC CONDITIONS

Austria is situated in the south of central Europe. The Alps cover almost two-thirds of the country. It is the country with
the highest share of forest in Europe (46% of the total area). The climate is mainly transitional central European and is
influenced by continental streams in the east.
A moderate climate prevails throughout the four seasons. There are cold winters and warm summers with average
precipitation. The temperature can reach up to 30°C in July and August. May, September and the first half of October
are considered to be the driest months. April and November are the wettest months. Frost and snow are present from
December to March. In the mountains above 2,000 meters snow is present from November to May and, above 2,800
meters, throughout the year.

AUSTRIA
NATIONAL DISTRICT HEATING ASSOCIATION
Association of Gas and District Heating Supply Companies (Fachverband Gas Wärme – FGW)
Schubertring 14, A-1015 Vienna, Austria
Tel: +43 1 513 15 88 31
Fax: +43 1 513 15 88 25
www.gaswaerme.at
Contact Person: Katalin-Andrea Griessmair
Email: office@gaswaerme.at

23.4 MILLION
70% Gcal
OF THERMAL ENERGY
WAS SUPPLIED
VIA DISTRICT HEATING
GREENHOUSE
GAS EMISSIONS FROM
THE ENERGY SECTOR
OF CITIZENS
ARE SERVED BY
DISTRICT HEATING -45.9%
1990
2012
BELARUS
MIKHAIL MALKO
BELARUS
1 DISTRICT HEATING
KEY FIGURES AND FUEL USE FOR DISTRICT HEATING
The utilities of the state-owned industrial company BelEnergo of the Ministry of Energy and the utilities of the Ministry of
Housing and Communal Services are responsible for District Heating in Belarus. BelEnergo has branches in every “oblast”
(region) of Belarus (Brestenergo, Gomelenergo, Grodnoenergo, Minskenergo, Mogilevenergo and Vitebskenergo).
BelEnergo has a total number of 20 CHP plants, among which CHP Minsk-4 (1,035 MWe), CHP Minsk-5 (720 MWe), CHP
Minsk-3 (542 MWe), CHP Gomel-2 (544 MWe) and CHP Novopolotsk (505 MWe).
BelEnergo also has a number of mini-CHPs. Their contribution to the total installed CHP capacity is about 1%. At the end
of 2013, the total CHP capacity of BelEnergo amounted to 4,338.2 MW1.
The number of heat-only boilers belonging to the Belarusian Ministry of Housing and Communal Services is about 3,000.
The table below presents the amount of thermal energy generated by the BelEnergo utilities and the utilities of the
Ministry of Housing and Communal Services.
THERMAL ENERGY GENERATION IN MILLION GCAL2
Generator 2005 2006 2007 2008 2009 2010 2011 2012 2013
CHPs 28.6 29.4 27.8 26.8 27.6 30.9 29.1 30.6 30.5
Heat-only boilers 17.4 17.8 15.4 15.0 14.9 15.5 14.6 15.4 14.3
Total combined 46 47.2 43.2 41.8 42.5 46.4 43.7 46.0 44.8
Use in District Heating 24.4 24.5 22.3 21.0 22.1 23.4 22.3 23.4 23.4
There was only a slight variation in the amount of thermal energy used for District Heating in the period 2005 to 2013.
This also indicates a very slight change in the amount of energy sources used for thermal energy generation by the utilities
mentioned above.
Approximately 50% of the total thermal energy generated by BelEnergo and the utilities of the Ministry of Housing and
Communal Services is used for Districts Heating in Belarus. The other 50% is supplied to different enterprises for industrial
processes (mostly thermal energy generated by the BelEnergo CHPs).
The table and graph below show the evolution in time of the amounts of fuel used by BelEnergo and the utilities of
the Ministry of Housing and Communal Services. The data is calculated on the basis of the statistical handbook “Energy
balance in the Republic of Belarus” of the National Statistical Committee, published in 2014.
1 Energy Strategy, No 4 (40), July-August, 2014, p. 20-23

2 National Statistical Committee, “Energy balance in the Republic of Belarus”, edited 2012-2014
Belarus - 2 COUNTRY BY COUNTRY / 2015 Survey

Assessment of fuel (in Million tons of cole equivalent) using for generation of thermal energys
BELARUS
ent of by
fuelutilities of BelEnergo
(in Million andequivalent)
tons of cole of the Ministry
usingfor
forHousing and of
generation Communal Services of the
thermal energys
Republic of
s of BelEnergo andBelarus
of the based onfor
Ministry data given in
Housing andhandbooks
Communal "Energy balance
Services of thein the Republic of Belarus,
Minsk,
of Belarus basedEVOLUTION
2012,on 2013 OF
andFUEL
data given2014 USED FOR 3.2.5
(Tables
in handbooks THERMAL
"Energy ENERGYinGENERATION
the Republic(2005-2013)
of handbooks).
balance of Belarus,
12, 2013 and 2014 (Tables 3.2.5 of handbooks).
Heat-only boilers CHPs Systems with CHP and
Year
(M tce)
January 18, 2015 (M tce) heat-only boilers (M tce)
2005 January 18, 2015
3.25 5.34 8.59
2006 3.32 5.50 8.82
Year
Heat-only boilers CHPs Systems with CHP & heat-only boilers
2007 2.91 5.25 8.16
2005
Heat-only boilers CHPs 3.24881 Systems with CHP8.58622
5.33741 & heat-only boilers
05 2006
2008
3.24881 3.322339 8.58622
5.33741 5.496703 2.85 8.819042 5.11 7.96
06 2007
3.322339 5.496703
2009 2.9110728.8190425.248154 8.159226
2.85 5.26 8.11
07 2008
2.911072
2010 2.847338.159226
5.248154 5.109968 2.95 7.957298 5.86 8.81
08 2009
2.84733
2011
2.845886 5.262499
5.109968 7.957298 2.78 8.108385 5.56 8.34
09 2010
2.845886 2.9496598.108385
5.262499 5.864908 8.814567
2012 2.94 5.87 8.81
10 2011
2.949659 5.864908 2.7797418.8145675.556429 8.33617
11 2012
2013
2.779741 5.556429 2.942968 8.336175.867151 2.79 8.810119 5.89 8.68
12 2013
2.942968 2.7899988.810119
5.867151 5.893539 8.683536
There was only a small increase between 2005 and 2013 in the total amount of fuel used for thermal energy generation
13 2.789998
by BelEnergo and 5.893539 8.683536
a small decrease in consumption of the total amount of fuel used for thermal energy generation by the
utilities of the Ministry of Housing and Communal Services. BelEnergo uses only natural gas, therefore the consumption of
natural gas by the utilities of this company had a small increase between 2005 and 2013.
Temporal patterns of using fuel for district heating in Belarus in 2005-2013

Temporal pa4erns of using fuel for district hea?ng in Belarus in 2005-‐2013
Temporal pa4erns of using fuel for district hea?ng in Belarus in 2005-‐2013
10
10
9
9
Million tonnes of coal equivalent
8
Million tonnes of coal equivalent
8
7
7
6 Heat-‐only boilers
6 Heat-‐only boilers
5 CHPs
5 CHPs
Systems with CHP & heat-‐only boilers
4
Systems with CHP & heat-‐only boilers
4
3
3
2
2
1
1
0
0 2005 2007 2009 2011 2013
2005 2007 2009 2011 2013
The utilities of the Ministry of Housing and Communal Services generate heat only for District Heating and their fuels
used are natural gas, local fuel (mostly wood and peat), fuel oil and other fuels (only negligible contribution). There was
a small decrease in the total amount of fuel between 2005 and 2013 and a quite significant change in the contribution of
the different types of fuel.

BELARUS
DEVELOPMENT OF FUEL USE FOR DISTRICT HEATING (2008-2015) IN UTILITIES OF THE MINISTRY
OF HOUSING AND COMMUNAL SERVICES (IN %)3
Year Natural gas Local fuel Fuel oil Other

2008 69.9 25.2 4.8 0.1
2009 67.7 28.2 3.9 0.2
2010 69.2 28.8 1.8 0.2
2011 65.9 33.0 1.0 0.1
2012 64.4 34.9 0.7
2013 51.6 47.9 0.5
2014 (expected) 50.8 48.9 0.3
2015 (expected) 45.4 54.4 0.1

Belarus has the most developed District Heating system in the Commonwealth of Independent States. District Heating
covers practically all urban areas (approximately 70% of the total population of Belarus). Traditional stove heating (using
wood and peat) as well as gas boilers are used in rural areas. 2,500 rural households were connected to the gas network
before the end of 20134, equivalent to approximately 11% of the total number of rural households (23,500). The length of
the natural gas network in Belarus in 2013 amounted to 50,600 km, including 25,400 km in rural areas5.
Approximately 2,000-2,500 km of new pipelines have been constructed and commissioned annually thanks to the
increased level of connectivity to the gas network. In 2013, Belarus put into operation 2,600 km of gas pipelines, including
1,591 km in rural areas6.
23.4 million Gcal of thermal energy was supplied for space heating and domestic hot water in Belarus in 2013 via District
Heating (see the table on the next page), equivalent to 32% of the total amount of thermal energy generated in Belarus
in this year.
3 Energy efficiency, No 7(189), 2013, p. 16-19

4 Energy Strategy, N 1 (37) January-February 2014, p. 6-7
5 Ibidem
6 Energy Strategy, N 4 (40), July-August 2014, p. 13-19

BELARUS
BALANCE OF THERMAL ENERGY IN BELARUS 2005-2013 (Million Gcal)7
Generation and
2005 2006 2007 2008 2009 2010 2011 2012 2013
consumption
Total generation 73.5 74.4 69.7 67.5 67.8 72.5 69.0 71.4 69.5
CPP* and CHP plants,
32.3 32.9 33.0 32.0 33.1 36.9 35.1 36.6 36.7
including
CPP (general use)** 0.334 0.336 0.308 0.295 0.224 0.247 0.217 0.223 0.224
CHPs (general use)*** 28.6 29.4 27.8 26.8 27.6 30.8 29.1 30.6 30.5
CHPs and mini-CHPs
3.37 3.22 4.85 4.87 5.21 5.77 5.80 5.80 6.03
(from industry)
Boilers, including 36.7 36.7 31.7 30.0 29.2 29.8 28.1 28.6 26.2
Heating-only boilers
17.4 17.8 15.4 15.0 15.0 15.5 14.6 15.4 14.4
for District Heating
Boilers (from industry) 19.2 18.9 16.3 15.1 14.3 14.3 13.5 13.2 11.7
Waste heat recovery
4.48 4.80 5.04 5.43 5.47 5.76 5.72 6.22 6.58
boiler (industry)
Consumption 73.5 74.4 69.7 67.5 67.8 72.5 69.0 71.4 69.5
Different
49.1 49.9 47.4 46.5 45.7 49.0 46.7 48.1 46.1
organisations
Households 24.4 24.5 22.3 21.0 22.1 23.4 22.3 23.4 23.4
* CPP: condensing power plant

** Power plants of BelEnergo
*** CHPs of BelEnergo
The table above shows information about all sources of thermal energy generated in Belarus. District Heating in urban
areas is provided by BelEnergo and by the utilities of the Ministry of Housing and Communal Services. A significant amount
of thermal energy is also generated by CHP plants and by heating-only boilers and waste heat recovery boilers from
Belarusian industrial enterprises.
The total thermal energy generation as well as the amount of thermal energy supplied for the population by District
Heating has not significantly changed between 2005 and 2013. Consequently there has been no significant change in the
quantity of natural gas used for thermal energy generation.
There is a strong dependence on natural gas import from Russia which is the only supplier of this energy source. It
is therefore necessary to decrease the use of natural gas for thermal energy generation. This can be achieved by the
implementation of the following measures:
• The increase of using local and renewable energy sources;
• The modernisation of the equipment used for the generation of electrical and thermal energy;
• The modernisation of heating networks;
• Thermal renovation of existing old buildings and construction of new energy-efficient buildings.
Belarus has been actively implementing these measures since the early 1990s in order to reduce its dependence on
external natural gas supplies in a fast and effective manner.
7 National Statistical Committee (“Energy balance of the Republic of Belarus” 2012, 2013, 2014)

BELARUS
THE ROLE OF DISTRICT HEATING IN DELIVERING CLIMATE AND ENERGY OBJECTIVES

The 2010 Heat Strategy of Belarus defined the concept of heat supply development up to 2020. In accordance with this
document, the strategic directions of District Heating development in Belarus are:
• Improving efficiency and ensuring the continuous development of heating systems by use of modern technology,
use of local energy resources, secondary energy resources and alternative energy sources;
• Reliable, cost-effective and secure supply of thermal energy to organisations and households;
• Maximum use of combined heat and power generation;
• Balancing the economic interests of power supply companies (suppliers of thermal energy) and consumers;
• Ensuring economically justified profitability of investments in the situation of state controlled heat tariffs;
• Creation of an optimal structure for heating process control;
• Elimination of intermediaries in the supply of thermal energy;
• Improvement of the legal framework.
A number of legislative acts and decrees of the Council of Ministers and different Ministries of Belarus also take in account
different aspects of District Heating. Moreover, different national programmes foresee concrete tasks in the field of
District Heating, for example:
• The national programme for energy conservation 2011-2015 (2010);
• The comprehensive programme for the design, construction and reconstruction of energy-efficient residential
buildings in Belarus 2009-2010 and until 2020 (2009);
• The state programme for the use of local energy sources 2011-2015 (2010);
• The programme for development of housing and communal services until 2015 (2013).
The existing legislative acts and programmes foresee:
• An increase in energy efficiency in the generation and distribution of thermal energy;
• An increase in the use of local fuels (wood and peat) for heat generation;
• The reconstruction of thermal grids in order to decrease heat losses;
• The thermal renovation of buildings constructed in the time of the USSR;
• The construction of energy-efficient buildings etc.
It should be noted that the planned activities are consistent with the EU 2050 objectives in the field of energy and climate.
Their implementation will reduce overall energy consumption and reduce greenhouse gas emissions.
The Belarusian policy aimed at improving energy efficiency and reducing greenhouse gas emissions has led to significant
results. In 1990, the energy intensity level of Belarus was 0.78 tonnes of oil equivalent per USD 1,000 of GDP. In 2010, this
figure fell to 0.23 toe per USD 1,000 of GDP (3.4 times less than in 1990).
The diagram on the next page shows the comparison between energy intensity levels of Belarus and other countries
in 20128.
8 International Energy Agency “2014 Key Word Energy Statistics”

Comparison of the energy efficiency of Belarus and other countries achieved in
2012
BELARUS
Comparison of the energy intensity of Belarus and other countries achieved in 2012
0.4
0.36
0.35
0.35
0.3
Energy intensity
0.25 0.23
0.21
0.19 0.19
0.2
0.15 0.15
0.14
0.15 0.13
0.11 0.11
0.1
0.05
0
Japan
France
USA
Belarus
Ukraine
Canada
Russia
Kazachstan
Poland
Sweden
Finland
Germany
TIMEFRAME OF INDEXES CHARACTERISING TOTAL ENERGY USE IN BELARUS (BASELINE YEAR 1997)
Year Energy intensity per GDP % Fuel consumed % GDP %

1997 100 100 100
1998 91.7 93.4 108.4
1999 83.5 93.6 112.1
2000 79.1 93.8 118.6
2001 75.9 94.3 124.2
2002 71.7 93.4 130.4
2003 68 94.8 139.4
2004 63 97.9 155.4
2005 59.3 100.7 170
2006 56.8 106.1 187
2007 51.8 104.8 203.1
2008 47 105.1 223.8
2009 45 100.8 224.2
2010 44.4 107.2 241.5
2011 43.5 110.9 254.8
2012 45.7 118.1 259.1
2013 40.9 107.9 261.5

BELARUS
Taking into account the data given in the table above, fuel consumption in Belarus increased in the period 2005 to 2013
by approximately 10%. However, the country’s GDP increased in the same period by 54%. This demonstrates Belarus’
achievement in increasing energy efficiency.
Increasing energy efficiency also had an impact on the significant decrease of greenhouse gas emissions. The total
emission level of all greenhouse gases in Belarus decreased from 139.1 million tonnes in 1990 to 89.3 million tonnes in
2012 (a 35.8% decrease)9. The total emission levels of greenhouse gases originated in the energy sector decreased in this
period from 102.2 million tonnes to 55.3 million tonnes (45.9%).
Greenhouse gas emissions in the energy sector in Belarus (million tonnes)

Greenhouse gas emissions in the energy sector in Belarus
(million tonnes)
110
100
90
80
70
60
50
40
1985 1990 1995 2000 2005 2010 2015

The Belarusian legislative framework relating to District Heating includes a number of laws, normative acts and other
documents. The most important are:
The Directive of the President No. 3 of 14 June 2007 “Economy and efficiency – the main factors of national economic
security” outlines the general energy policy in terms of economics and sustainable development. It gives indications
for national and local authorities, industries, different institutions and organisations for developing and implementing
programmes and measures aimed at improving energy use. It establishes the following targets for the reduction of energy
use per unit of GNP until 2020, in comparison with 2005:
• At least 31% in 2010;
• At least 50% in 2015;
• At least 60% in 2020.
9 National inventory report for 1990-2012, Ministry of Natural Resources and Environmental Protection of Belarus, 2014

BELARUS
Furthermore, it requires a 25% increase in the share of produced electrical and thermal energy by using local fuel,
secondary and alternative fuels until 2015. It also gives important indications related to the development of District
Heating in Belarus.
The concept of heat supply development in Belarus for the period up to 2020 (Nr. 225 of 18.02.2010), sets up the Heat
Strategy in Belarus. In accordance with this document, the strategic directions for the development of District Heating in
Belarus are:
• Improving efficiency and ensuring the continuous development of heating systems by use of modern technology,
the use of local energy resources, secondary energy resources and alternative energy sources;
• Reliable, cost-effective and secure supply of thermal energy to organisations and households;
• Maximum use of combined heat and power;
• Balancing the economic interests of power supply companies (suppliers of thermal energy) and consumers;
• Ensuring economically justified profitability of investments in the situation of state controlled heat tariffs;
• Creation of an optimal structure for heating process control;
• Elimination of intermediaries in the supply of thermal energy;
• Improvement of the legal framework.
The comprehensive programme for the design, construction and reconstruction of energy-efficient residential buildings
in Belarus for 2009-2010 and until 2020 (Nr. 706 of 01.06.2009) foresees an annual consumption level equal to 60 kWh/m2.
The national Energy Conservation Programme for 2011-2015 (Nr. 1882 of 24.12.2010) stipulates concrete tasks having
an impact on District Heating including:
• Modernisation and improvement of boiler efficiency;
• Improving heating networks efficiency and optimisation of heat supply;
• Decentralisation of heat supply by reducing the length of pipes;
• Upgrade of heating systems using pre-insulated pipes;
• Thermal renovation of buildings.

OF DISTRICT HEATING
Belarus has a developed District Heating system that provides heating to all urban areas. Therefore, the focus does not lie
on its expansion. The main problem of District Heating in Belarus lies in the very high share of thermal energy generated by
using natural gas imported from the exclusive supplier (Russia). It is necessary to increase energy efficiency and therefore
decrease the consumption of natural gas for District Heating. Equipment and thermal grids modernisation as well as
thermal renovation of buildings are the driving forces that favour a positive development in Belarus.
These aims have a high political priority since their realisation lies in the hands of the State.
In accordance with the abovementioned legal framework, financial penalties are imposed on enterprises, institutions and
organisations that consume energy and materials above the norms established for them. Financial means received as a
result of these penalties go to the national energy saving fund and are used for financing various projects in the field of
energy conservation.
In 2013, Belarus introduced household thresholds for the consumption of electricity, cold and hot water for private end-
users. They are not meant as a means of rationing electrical and thermal energy, but more as a motivation to save energy.
From the beginning of the 1990s, Belarus has spent a huge amount of financial means for increasing energy efficiency. The
energy sector expenditure between 1990 and 2013 is equivalent to approximately 10 billion US dollars from public funds
and private investments. More than 1 billion USD was allocated by the China Development Bank to the reconstruction and
upgrading of CHP Minsk-2, CHP Minsk-3, CHP Minsk-5 and other District Heating projects.
Belarus achieved significant improvements in increasing energy efficiency and district heat losses. The District Heating
system of the Ministry of Housing and Communal Services had approximately 26% heat losses in 2001; recently the figure
decreased to 17%. A similar trend also occurred in the BelEnergo heat network.
The most important driver of this positive change was the reconstruction of the heating infrastructure. Between 2008 and
2013, 3,774 km of thermal grids belonging to the Ministry of Housing and Communal Services were reconstructed out of
which 93% have now pre-insulated pipes. Such measures allowed to save 350,000 Gcal of thermal energy annually.

BELARUS

The State monopoly in the heat generation and distribution sector as well as the existence of State subsidies for heat are
the main barriers with a significant impact on District Heating in Belarus. The main tasks of BelEnergo and the utilities
of the Ministry of Housing and Communal Services is in practice the generation and distribution of thermal energy to
consumers. There are no independent supply companies. This situation is a barrier for further development and use of
renewable energy sources such as solar or geothermal energy.
Throughout the years, the legislative framework for energy efficiency and renewable energy sources has not been fully
coherent. For example, the 2010 renewable energy law does not take into account biogas, solar and geothermal energy if
they are not used for electricity generation. As a result, renewable energy sources account for only 5% of the total primary
energy consumed in Belarus.
Another important barrier in the development of District Heating in Belarus is the existence of the state subsidy system. In
practice, the real cost of 1 million calories of thermal energy was equal to 300,000 Belarusian rubles at the end of 201410.
However, end-users only paid 90,000 Belarusian rubles or 30% of the cost for thermal energy. The difference between the
tariff and the real cost is covered by the national economy of Belarus.
The subsidy system was implemented in order to protect the population from energy poverty. However, the system benefits
all consumers. It is clear that the payment of the full tariff by those that can afford it would benefit the competitiveness
of the Belarusian economy and would incentivise the population to implement different energy efficiency measures.
Moreover, no individual heat controls or metering are installed in Belarus. Therefore, households are not at all motivated
to invest in renovation since this would not have an impact on their heating bill.
NEW TECHNOLOGIES EXPECTED TO BE USED FOR PROVIDING DISTRICT HEAT IN THE FUTURE
Belarus is currently developing plans for the use of heat pumps, solar thermal and geothermal energy, waste-to-energy
and industrial surplus heat for District Heating. The 2011 National Program for the development of local and renewable
energy sources for 2011 – 2015 foresees:
• The construction of installations using wood and peat (27.45 MWe 1004.78 MWth);
• The construction of biogas installations (34.71 MWe);
• The construction and reconstruction of hydropower electrical stations (41.1 MWe);
• The construction of wind-driven power plants (168 MWe);
• The installation of heat pumps (6.4 MWth);
• The installation of 170 wind turbines as well as solar thermal collectors.
However, this plan was only partly carried out due to the lack of necessary financial sources and the lack of industry
expertise in the field of renewable energy sources.
In the beginning of 2013, the following installations using renewable energy sources were operational in Belarus:
• 40 small hydropower electrical stations (33 MWe);
• 14 wind-driven power plants (7 MWe);
• 6 solar stations (0.5 MWe);
• 16 biogas stations (21 MWe);
• Few heat pumps with a total capacity of approximately 500 kW.
These sources of renewable energy only play a negligible role in Belarus. Their contribution to the total consumption of
primary energy is about 0.1%. At present only wood plays an important role, contributing with approximately 5% to the
total consumption of primary energy in recent years.
10 1 USD=12,000 Belarusian rubles (December 2014)

BELARUS
SHOWCASE DISTRICT HEATING SCHEMES

In April 2008, a modular boiler-house running on wood chips was commissioned in the village of Borovliany near Minsk.
This is a pilot of the joint project “Modernisation of social infrastructure in Belarus”. The financing of this project came
from a loan from the International Bank for Reconstruction and Development, the national budget and a grant from the
government of Japan.
The modular boiler-house together with another boiler in Borovliany carries heat to 34 homes, a school, two kindergartens,
the Minsk central hospital and to more than 20 other heat consumers. The modular boiler-house is fully automated,
eliminating the need for the permanent presence of staff.
Operating the boiler contributed to an increase in the use of local fuels in the housing and communal services of the Minsk
region. During operation, the boiler has consumed about 100,000 m3 of wood chips and has generated more than 100,000
Gcal of heat. This equals to saving 15 million m3 of imported natural gas.
The average performance of the modular boiler-house equipped with the 5 MW boiler is 3.5 Gcal/h. The generation of 1
Gcal cost 550,000 Belarusian rubles at the end of 2013, in comparison with the average cost achieved by the “Utilities of
Housing and Communal Service” of the Minsk district which equals to 743,000 Belarusian rubles.
2 HEAT MARKET
There is no open District Heating market in Belarus due to the state monopoly for the production and distribution of
thermal energy. The Ministry of Economics establishes the same tariffs for heating, cold and hot water for all regions
independent of the kind of equipment and fuel used for the generation of thermal energy. This also means, for example,
that the inhabitants of the village of Borovliany cannot benefit from preferential tariffs after commissioning their modular
wood chip boiler-house.

CHP OVER THE LAST FIVE YEARS (2008 – 2013)
The CHP development in Belarus between 2008 and 2013 had a significant impact on electricity generation. The realisation
of different projects led to the increase of the nominal power of CHP with approximately 800 MWe. At the end of 2013, the
total nominal power of all Belarusian CHPs for general use (CHPs of BelEnergo) reached 4338.2 MWe, equivalent to 47.5%
of the total nominal power of Belarus11. Several modernisation and upgrading projects are described below.
A 230 MW gas steam block was put in operation at the Minsk CHP-3 plant in 2013. This highly efficient, near-to-customer,
high-power energy unit which produces both electric and thermal energy will help reinforce the reliability and sustainability
of energy supply in Minsk and save around 130 million m3 of natural gas annually thus cutting fuel import costs.
The new 400 MWe gas steam block of CHP Minsk-5 was put into operation in 2012. The project was financed by a
260 million Euro government-guaranteed credit from the State Development Bank of China. The construction of this unit
took two years, was launched at the end of December 2011 and reached its full capacity half a month later. The expected
savings will be at least 141,000 tce annually in terms of electricity production, which will reduce annual gas import costs
by more than 20 million US dollars.
11 Energy Strategy, No 4 (40), July-August 2014, p. 20-23

BELARUS
Several other smaller projects were carried out between 2008 and 2013. For example, a gas turbine with a 25 MW waste
heat recovery boiler was installed at the Lida CHP plant. The boiler-house Severnaya in the city of Grodno was transformed
into a mini-CHP plant with a 6 MW gas turbine. The boiler house Zhlobin was also transformed into a mini-CHP plant with
a series of 26 MW gas-powered piston-driven machines. A new 4 MW gas-expansion machine was installed and became
operational at the Gomel-2 CHP plant.
With a view to diversifying the fuel and energy balance of the national energy system, three new generation facilities have
been inaugurated, which run on local fuels (wood chips, peat and lignin): the Vileika, Osipovichi and Pinsk mini-CHP plants.
4 CLIMATE CONDITIONS AND ENERGY

USE OF BUILDINGS
CHARACTERISTICS OF THE HEATING SEASON
The heating period in Belarus lasts approximately 6 months. It varies during different years and for different regions. It is
longer in the north-east (Vitebsk region) and shorter in the south-west (Brest region). This situation is determined by the
different climatic conditions in Belarus and by the variations in temperature from year to year.
Switching on the District Heating system in Belarus is subject to health standards. When reaching a certain outdoor
temperature, switching on the heating has to be made in the following order:
1. Schools, medical and educational institutions, social welfare institutions, museums, public archives – when the
average daily temperature reaches 10°C and below for 5 days;
2. Residential areas, dormitories, hotels – when the average daily temperature reaches 8°C and below for 5 days;
3. Public, office buildings, industrial plants and other facilities, after connecting residential areas.
Switching off the heating system occurs in reverse order when the average outdoor temperature increases to 8°C and
above for 5 days, and in accordance with the legislation.

Belarus lies between latitudes 51o and 56o N, and longitudes 23o and 33o E. Its extension from north to south is 560 km and
from west to east 650 km. It is landlocked, relatively flat and it contains large tracts of marshland. The climate features
mild to cold winters, with average January temperatures ranging from -4 °C in the south-west (Brest) to -8 °C in the north-
east (Vitebsk), and cool and moist summers with an average temperature about 18 °C.
The climate of Belarus is defined as a transitional zone between continental climate and maritime climate. Its main
characteristics are determined by its location in the temperate zone, the lack of mountain barriers and predominance of
flat terrain and the relatively large distance from the Atlantic Ocean.
The average annual temperatures gradually rise to the south and south-west – in the north they reach 4.4°C whereas in the
extreme south-west they reach 7.4°C. The average January temperature ranges from -4.1°C in the south-west to -8,4°C in
the north-east. In some periods, winter temperatures drop to -22/-30°C, with lowest recorded temperatures of -40/-44°C.
The average daily temperature in summer is above 15°C. The average temperature of the warmest month (July) is 17 to
19.7°C.

BELARUS
AVERAGE ENERGY USE OF BUILDINGS PER SQUARE METER

There are 195 million m2 of living space in Belarus, built before 1993 when construction standards were rather low. This is
the main reason for the high average consumption of heating and hot water, illustrated in the table below.
Period of construction Before 1993 1993 - 2009 2010 - 2012

Total area (million m2) 195.0 61.0 16.5
Energy efficiency (kWh/y) 230 160 130
Institute of Power Engineering of the National Academy of Sciences of Belarus

Academicheskaya Str. 15/2, Minsk, 220072, Belarus
Tel: +375 17 332 15 09
Fax: +375 17 284 13 26
Contact Person: Mikhail Malko, PhD
E-mail: mikhailvm@bas-net.by

6,162
MWth
TOTAL INSTALLED
DISTRICT HEATING
CAPACITY
18%
67%
OF BULGARIANS
ARE SERVED BY
DISTRICT HEATING
OF DISTRICT HEAT
COMES FROM
RECYCLED HEAT
BULGARIA
ILIYA NIKOLAEV
BULGARIA
1 DISTRICT HEATING
KEY FIGURES
2013 2011 2009

Trench length in km for transport and distribution network
1,566 1,555 1,520
(one way)
Estimation of the total investment in District Heating and
Cooling in Euro (excluding operational and maintenance 20 50 30
costs)*
Number of District Heating systems** 13 14 15
*Euro exchange rate used (annual average): 1.95583 BGN (2013), 1.95583 BGN (2011), 1.95583 BGN (2009)
**District Heating system is a heat distribution network with its own heat source, technically independent from other networks, regardless of
transmission connections
2013 2011 2009

Industrial sector 299 349 526
TOTAL 18,002 20,574 20,088

25,000
20,000
15,000 Services and other

TJ
Industrial sector
10,000
Residen:al sector
5,000
0
2013 2011 2009
Bulgaria - 2 COUNTRY BY COUNTRY / 2015 Survey

BULGARIA
1,800 25,000
1,600
1,400 20,000
Total sales (in TJ)

1,200
15,000
1,000
800
10,000
600
400 5,000
200
-‐0 0
2013 2011 2009
Total sales
AVERAGE DISTRICT HEATING PRICE IN EUR/GJ
Euro exchange rate used

(annual average)
2013 11.5 13.8 1.95583
2011 10.7 12.8 1.95583
2009 11.1 13.3 1.95583
HEAT SALES TURNOVER
Total District Heat Sales Average District Heating Heat sales Turnover (in

(in TJ) Price (in EUR/GJ excl. VAT) Million EUR)*
2013 18,002 11.5 207
2011 20,574 10.7 220.1
2009 20,088 11.1 223

BULGARIA
2013 2011
In cogeneration
Coal and coal products 2,491 10.8 % 2,542 9.9 %
Natural gas 13,162 56.9 % 15,030 58.5 %
Others
Coal and coal products 173 0.7 % 310 1.2 %
Natural gas 7,301 31.6 % 7,831 30.5 %
TOTAL 23,127 100% 25,713 100%
Energy supply composition of generated District Heat

Energy ssupply
Energy upply ccomposi0on
omposi0on oof
f ggenerated
enerated DDistrict
istrict HHeat
eat
100%
Energy supply composi0on of generated District Heat
100%
90%
90%
100%
80%
80%
90%
70%
70%
80% Other
Other
60%
60%
70% Direct R
Other
Direct Renewable
enewable
50%
50%
60% Recycled
Direct Heat
eat
Renewable
Recycled H
40%
40%
50%
Recycled Heat
30%
30%
40%
20%
20%
30%
10%
10%
20%
0%
0%
10%
2013
2013 2011
2011
0%
2013 2011
Over the past then years, the use of coal for District Heating has not significantly changed. There has been an increase in
the consumption of natural gas in relation to the development of CHP for the District Heating sector, but also a decrease in
heat production due to the bankruptcy of eight small District Heating systems. The increased fuel consumption from new
connections is balanced particularly by clients giving up the service, and particularly due to the application of measures
related to reaching energy efficiency interim targets.

BULGARIA

The District Heating market in Bulgaria is not very dynamic. Its has mainly developed in Sofia, with an annual growth rate
of 1 to 3% due to new flats in residential buildings and other types of buildings connecting to the heat transmission grid.
The District Heating company is owned by the Sofia municipality and has no competition. In other large cities in Bulgaria
the District Heating companies are owned by private entities, which operate in an effective competitive environment with
gas suppliers. Growth rates vary, and overall heat consumption has been decreasing each year.
For the period 2008 to 2013, the share of thermal energy consumed by households and non-residential sector has remained
stable. The relative share of District Heating clients has slightly changed due to population decrease, lack of adequate
customer information, inappropriate price regulations and low level of understanding of the common management
benefits for residential buildings.
There are no national targets for development of District Heating. In the National Energy Strategy, there is a reference to
the need for District Heating being developed and encouraged as a priority. An analysis of the national potential for highly
efficient cogeneration as of 2008 was made. Additionally, a European Commission report (SWD(2013) 541 final) includes
Bulgaria’s progress in implementing measures which encourage the use of highly efficient cogeneration of electricity and
heat.
The role of District Heating and Cooling within the EU 2050 framework is not specifically defined in Bulgaria. There are
however several future-oriented measures.
The 2020 Bulgarian Energy Strategy defines the country’s priorities:
• energy development and energy security through efficient use of energy and energy resources;
• creation and development of a stable energy market;
• energy supply with minimum costs;
• environmental protection;
• consumer protection.
The Strategy also contains a plan for stabilisation and development of the District Heating sector. This plan however is not
confirmed by the government and no related measures are in force. The increase of the CHP energy share is highlighted as
a key measure for achieving national energy efficiency goals.

The national legislative framework with impact on District Heating consists mainly of the 2020 Bulgarian Energy Strategy
(covering the timeframe 2010-2020); the Energy Law (2003); the Ordinance for District Heating activities; the Ordinance for
CHP; the Ordinance for electricity and heating prices; the Ordinance for licensing in the energy sector. These documents
govern social relations associated with the production, transmission and distribution of energy (electricity, thermal
energy, natural gas), and serve as basis for the government authorities to define, regulate and control the energy sector.

OF DISTRICT HEATING
There are not enough driving forces for the development of the District Heating sector. They are mainly defined by the
demand of a limited customer base, interested in receiving a particular quality and comfort for affordable prices.
There is a lack of market stimulation through result-oriented state and/or municipality policies, as well as a widespread weak
understanding of environmental issues. The current legislation does not provide sufficient development preconditions,
such as spatial development plans foreseeing the type of heating and cooling for new and existing buildings. People
with insufficient income prefer to use wood and solid fuels for heating, as it appears affordable. Such solutions are not
appropriate for bigger cities from an environmental point of view. During the last years, air conditioning use for heating
has expanded. Direct electricity heating is still common, because of its low regulated price. There are no tax or investment
incentives in current legislation. Vulnerable customers support is limited and not sufficient.

BULGARIA

The most important barriers are:
• Lack of a long-term, stable strategy for sustainable development with a clean environment;
• Insufficient price regulation, which does not provide conditions for financial stability and efficiency in the District
Heating sector;
• For a ten-year period until 2014, only 13 licensed District Heating and Cooling systems have remained out of 21;
• Existing regulations provide inappropriate financial conditions for District Heating. The return on investment rates
are insufficient for new and environmentally friendly technologies;
• Lack of inclusion of CHP companies in the national programmes for eligible European and national funding;
• Promotion of inefficient technologies and lack of stimulation for new investments in modern cogeneration
technologies;
• Municipalities/government do not require new buildings to be connected to heat networks – as a result, a large
part of new big buildings and complexes are designed with air conditioning systems;
• Critically low debt collection rates from residents due to prolonged legal actions;
• Decreasing client confidence in District Heating, as well as low client income;
• Lack of regulation for the establishment of homeowners associations in residential buildings (to which thermal
energy would be supplied);
• Old and depreciated building stock, with a high percentage of non-insulated buildings containing old vertical
heating installations;
• Relatively high energy losses and delayed sanitation in old apartment blocks, which represent two-thirds of the
building stock;
• Inappropriate support system for socially disadvantaged clients.
A Waste-to-Energy plant connected to the Sofia District Heating system is expected to start operations by 2016, producing
19.5 MW electricity and 58 MW heat.
At this stage, there are no plans for other energy sources or new technologies to be used in District Heating.
SHOWCASE DISTRICT HEATING SCHEME

In 2013, a 14 MW biomass boiler was installed in the Bourgas District Heating plant. The fuel used is a mix of wood chips,
pellets and sunflower husk. This measure has allowed a reduction of 43% in natural gas consumption of the hot water
boilers, and a total reduction of 10% in overall company natural gas consumption. The reduced natural gas consumption
also led to a decrease in the company’s CO2 emissions.

BULGARIA
2 HEAT MARKET
TOTAL HEAT DEMAND FOR SPACE HEATING IN THE RESIDENTIAL SECTOR IN 2013: 70,000 TJ


18%
2013 2011 2009

million m2
38.2 37.7 37.1

BULGARIA
Source In %
District Heating 16%
Natural gas 3%
Electricity 37%
Coal 9%
Renewables* 31%
Heat pumps 3%
Other 1%
TOTAL 100%

3% 1%
16% District Hea1ng

3% Natural gas
31% Electricity
Coal
Renewables*
Heat pumps
37%
9% Other
Due to relatively low electricity price (especially night tariff), the share of households using room air conditioners all year
round has increased during recent years. Some of these households disconnect from the District Heating networks. The
use of gas for individual heating is not significant, due to the high natural gas price and the high investment costs for gas
household appliances.
The share of households using solid fuels for heating is relatively high, due to the comparatively low price.

BULGARIA
3 DISTRICT COOLING
KEY FIGURES
2013
Total installed District Cooling capacity (in MWth) 0.452
Total District Cooling sales (in TJ) 0.382
DISTRICT COOLING PRODUCTION TYPES

Very little data is available for District Cooling, as it is not being developed as an expansion technology. A pilot District
Cooling installation was built in the Plovdiv District Heating system, using district heat and an absorption chiller.
SHOWCASE DISTRICT COOLING SCHEME

EVN’s Pilot Project for Cooling via District Heating
In the summer of 2013, Plovdiv became the first Bulgarian city to use an innovative method of cooling via District Heating.
The project was implemented by EVN Bulgaria Toplofikatsia District Heating company in September for one of the most
modern buildings in the city – the Trakia city hall.
EVN Bulgaria Toplofikatsia has been working on the District Cooling project since 2011 as a logical continuation of EVN’s
investments in innovation and improved services. After a new cogeneration plant and a new data centre, this was the third
innovative project implemented by the company in Plovdiv in only three years. The project is consistent with the global
trends towards quality improvement and District Heating development and is a step towards efficient use of primary
energy sources. Estimates show that this cooling method can be 20 to 30% cheaper than conventional cooling technologies.
The added positive impact is the reduction of harmful emissions, as the new service is efficient, competitive and allows for
CO2 emissions saving, thus in line with EVN’s policy of investing in innovative and environmentally-friendly technologies.


Oil / Petroleum products 4,900 4,900
Natural gas 24,730 5,810 30,540
Renewables* 88 88
TOTAL 29,342 38,948 68,290

BULGARIA

80,000
70,000
60,000
50,000 Renewables*
Natural gas
TJ
40,000
30,000
20,000
10,000
0
(in TJ) (in TJ) (in TJ)
CHP HEAT AUTO-PRODUCTION IN INDUSTRIAL PROCESSES (OUTSIDE DISTRICT HEATING)
Production for 2013 (in TJ) 23,500

Installed capacity in 2013 (MWth) 1,100

In the last five years, several new cogeneration plants have been introduced, with a total capacity of 120 MW.
In 2013, the installed CHP capacity in Bulgaria was 4,100 MW thermal energy and 1,800 MW electricity, from a total of 80
installations (District Heating and industrial).
In 2013, certificates for cogeneration of electricity were issued for 3,930 GWh(e) - representing 9% of the total
electricity produced in Bulgaria. Plants connected to District Heating produced 2,230 GWh(e), while others accounted
for 1,700 GWh(e).

BULGARIA
NUMBER OF HEATING DEGREE DAYS IN 2013
Baseline climate factors have been determined for nine climatic zones in the country as indicated in the table / base indoor
temperature of 19°C:
Heating degree days Calculation temperature
Varna 2,400 -11
Shumen 2,800 -15
Ruse 2,600 -17
Veliko Tarnovo 2,700 -17
Burgas 2,300 -10
Plovdiv 2,400 -15
Sofia 2,900 -16
Haskovo 2,300 -14
Blagoevgrad 2,100 -10
Bulgarian District Heating Association

Yastrebetz, Str., Sofia, 23B, Bulgaria
Tel: +359 32 30 18 74
Fax: + 359 32 278 501
www.atdb.bg
Contact Person: Iliya Nikolaev
Email: bdha@abv.bg

462,595MWth
TOTAL INSTALLED
DISTRICT HEATING
CAPACITY
OF PIPELINES
FOR DISTRICT HEATING
TRANSPORT
AND DISTRIBUTION
5,717 MILLION
M2
OF DISTRICT HEATED
FLOOR SPACE
CHINA
JAMES GUAN XIN

CHINA
1 DISTRICT HEATING
KEY FIGURES
2013 2011 2009

178,136 147,353 124,807
(one way)
Cooling in Euro (excluding operational and maintenance 2,377 M 1,995 M 1,685 M
costs)*
Average CO2 emissions per GWh of district heat generated 550 570 590
2013 2011 2009

Total sales 3,197,032 2,810,310 2,631,880
200,000 3,500,000
180,000
3,000,000
160,000
140,000 2,500,000
120,000 2,000,000 Total sales (in TJ)
100,000
80,000 1,500,000
60,000 1,000,000
40,000
500,000
20,000
-‐0 0
2013 2011 2009
Total sales
China - 2 COUNTRY BY COUNTRY / 2015 Survey

CHINA
In 2012, the total District Heating consumption in North China reached 171 million tce (tonnes of coal equivalent), which
account for nearly 24.7% of the total building energy consumption in China. Primary energy consumption for space heating
has been dominated by coal. Coal consumption reached 152.5 million tce, gas 15.7 million tce and electricity 8.2 billion Wh
in North China in 2012.
Heat consumption in North China in 2012

Total District Heating Heat consumption
Heated surface Electricity use Coal use Gas use consumption per floor area
(billion m2) (billion kWh) (million tce) (million tce) (million tce) (kgce/m2)
10.6 8.2 152.5 15.7 171 16.1
Source: Building Energy Research Centre, Tsinghua University
Space heating in North China has increased twofold from 3.3 to 10.6 billion m2 during the period 2000 to 2012. Total
energy consumption has increased from 84 million tce to 171 million tce. Heat consumption per floor area has improved
from 23.1 kgce/m2 in 2000 to 16.1 kgce/m2 in 2012.
Heat consumption in North China during 2000-2012
Year Heated surface (billion m2) Heat consumption (million tce)

2000 3.3 84
2001 4.8 115
2002 5.4 125
2003 6.0 131
2004 6.4 135
2005 7.0 142
2006 7.5 146
2007 8.1 151
2008 8.6 154
2009 9.3 161
2010 9.8 166
2011 10.2 166
2012 10.6 171

National statistical data shows that the floor area served by District Heating has grown from 3.489 to 5.717 billion m2
during the last five years (2008-2013). Nearly 98% of the total area covered by District Heating is located in North China.
In 2013, steam CHP and boiler heating capacity amounted to 84,362 t/h and the total quantity of district heat supplied was
532 million GJ, through 12,259 km of heating pipelines. Hot water capacity was 403,542 MW with a total of 2,665 million
GJ supplied, through 165,877 km of heating pipelines.
Considering that the total heated surface in North China is about 10.6 billion m2, it is estimated that nearly 55% is supplied
by District Heating.

CHINA
Basic statistics on heating in cities (2008-2013)
Year 2013 2012 2011 2010 2009 2008

Steam capacity (t/h) 84,362 86,452 85,274 105,084 93,193 94,454
Hot water capacity (MW) 403,542 365,278 338,752 315,717 286,106 305,695
Quantity of steam supplied (10,000 GJ) 53,242 51,609 51,780 66,397 63,137 69,082
Quantity of hot water supplied (10,000 GJ) 266,462 243,818 229,251 224,716 200,051 187,467
Pipelines length steam (km) 12,259 12,690 13,388 15,122 14,317 16,045
Pipelines length hot water (km) 165,877 147,390 133,965 124,051 110,490 104,551
District Heating area (billion m ) 2
5.717 5.184 4.738 4.357 3.796 3.489
Source: ‘Chinese statistical yearbook’
Basic statistics on heating in cities by region (2013)
Heat Capacity Quantity of heat supplied Length of heating pipelines District

Region Heating area
Steam Hot water Steam Hot water Steam Hot water (10,000 m2)
(t/h) (MW) (10,000 GJ) (10,000 GJ) (km) (km)
National TOTAL 84,362 403,542 53,242 266,462 12,259 165,877 571,677
North China 70,144 402,758 39,559 266,242 10,281 165,816 559,702
Beijing 300 38,585 168 33,960 44 11,192 54,591
Tianjin 3,717 21,572 1,827 11,284 566 17,423 32,897
Hebei 6,975 27,441 5,599 17,730 1,052 10,002 50,220
Shanxi 1,291 23,068 942 16,699 56 7,424 39,826
Inner Mongolia 767 33,729 671 22,367 164 8,401 39,020
Liaoning 12,787 68,631 6,521 43,494 1,357 30,493 92,109
Jilin 1,536 40,576 387 21,660 231 16,425 42,823
Heilongjiang 4,874 42,296 2,433 32,978 423 16,384 53,804
Zhejiang 8,039 85 9,648 1 1,195 7,710
Anhui 4,305 182 3,071 40 563 15 2,329
Shandong 25,211 39,722 14,441 25,459 4,107 28,042 75,721
Henan 6,008 8,568 3,010 3,843 1,444 3,239 15,152
Hubei 1,874 278 963 49 221 10 1,745
Guizhou 239 130 36 190
Shaanxi 4,118 8,902 2,142 4,643 550 1,210 15,963
Gansu 224 14,069 245 12,205 112 4,260 15,437
Qinghai 348 290 179 451
Ningxia 396 8,252 153 4,322 26 3,052 8,236
Xinjiang 1,940 26,997 1,021 15,308 150 8,087 23,452
Note: District Heating refers to: large urban heating with a capacity of 7 MW and above (boiler capacity of 10 t/h and above), civil building heating in
the area of 100,000 m2 and above, small urban heating with a capacity of 3 MW and above (boiler capacity at 4 t/h and above), civil building
heating in the area of 40,000 m2 and above. Industrial heating capacity is not be less than 7 MW (boiler capacity of 10 t/h).
In Beijing, the total heated surface amounted to 731.4 million m2 in 2012. 25.2% of this surface (184 million m2) was heated
by a network-based District Heating system, 49.6% (362.6 million m2) by large-scale gas-fired boilers and wall-mounted
gas boilers, 24% (175.7 million m2) by large-scale coal-fired boilers and 1.3% (9 million m2) by oil boilers or electric heating
systems.
The District Heating system consists of several large-scale CHP plants with a base load capacity of 6,400 MW and several
large-scale gas-fired plants with a peak load capacity of 6,500 MW.

CHINA
According to the Beijing heat planning, all existing large-scale coal-fired CHP with a capacity of 200 MW and 300 MW
should be substituted by 350 MW gas-fired CHP plants before 2015. Plans also foresee the recovery of industrial waste
heat both in and outside Beijing and its delivery to the new District Heating network.
DISTRICT HEATING AND CLIMATE AND ENERGY OBJECTIVES

District Heating consumption in North China amounted to 171 million tce in 2012, equivalent to 25% of the total heated
surface consumption and to 5% of the total energy consumption in China. Therefore, it is estimated that carbon emissions
from District Heating reached 500 million tonnes, equivalent to nearly 5% of the total carbon emissions in China.
In 2013, China’s carbon emissions reached 10 billion tonnes (the total energy consumption is 3,750 million tce and the CO2
emission factor is equal to 2.67 t/tce), which accounted for 28% of total global emissions, exceeded the combined amount
of the EU and the United States. At the same time, carbon emissions per capita in China reached 7.2 tonnes and exceeded
the EU for the first time.
As mentioned above, only 55% of the total heated area is supplied by District Heating. It is estimated that less than 30%
of the total heated area is supplied by CHP. The low efficiency of individual heating systems and the low energy-saving
buildings greatly contribute to environmental pollution and carbon emissions. District Heating will therefore play a key
role in the reduction of air pollution and carbon emissions in North China.
There are still no binding CO2 reduction targets for heating systems. Air pollution and CO2 emissions during the heating
season are obviously higher than during the non-heating season. To significantly reduce air pollution and CO2 emissions,
research has been carried out in China in order to develop a heat strategy, looking into solutions such as: high energy-saving
standards for buildings or green building construction, increasing the proportion of highly efficient and environmentally-
friendly CHP systems, recovering waste heat from CHP and industry, integrating the use of renewable energy into District
Heating systems.

In 2013, for the purpose of the ‘Chinese Heating Sector Regulation’ proposal, extensive research has been carried out
on the Heat Reform and Building Energy Efficiency (HRBEE), co-funded by the Ministry of Housing and Urban-Rural
Development of China, the World Bank and the Global Environment Facility (GEF).
Additionally, several national or local codes and standards for the heating industry exist, such as building energy-saving
standards, CHP codes as well as heat planning.
Heat management and the related regulatory framework fall under the responsibility of each province and municipality.

OF DISTRICT HEATING
Considering the rapidly increasing demand for heat and power in cities, the CHP technology is highly energy efficient and
less polluting compared to other heat and power supply systems, especially those based on coal.
High energy efficiency and low cost of District Heating are the two most important driving forces for the expansion of
District Heating in China.
Some incentives and subsidy measures for waste heat recovery and renewable energy use are provided in several cities in
order to promote the development of District Heating.
Higher building standards greatly contribute to both energy and cost reduction.
In many cities, heat supply networks are built by a ‘heating cooperation’ controlled by the government, which is favourable
to investments and sound heat generation management.

The large amount of coal-fired heating systems contribute to high air pollution levels. Especially during the heating season,
most cities face more serious pollution peaks. Environmental restrictions would be one of the most important barriers to
the expansion of coal-fired District Heating.

CHINA
Environmentally friendly District Heating, with higher efficiency and lower costs, is expected to face various challenges in
the near future, especially due to the scarcity of natural gas and its high cost in China.
Additionally, there are still no suitable technologies for the integration in District Heating systems of large-scale renewable
energy applications at a relatively low cost.
In recent years, waste heat recovery technologies based on the cogeneration-based absorption heat-exchange cycle are
applied and demonstrated in District Heating systems.
Moreover, heat pumps, solar thermal, direct geothermal heat, Waste-to-Energy and other renewable energy sources,
appropriate for supplying heat at relatively low temperatures in smaller scale systems, can be integrated into District
Heating systems.
Overall, new District Heating systems have great advantages in terms of energy-saving, emission-reduction, cost-saving
and improved safety of heat supply.
2 HEAT MARKET
2013 2011 2009

million m2 5,717 4,738 3,796
The main space heating energy source in North China is coal.

In the area around the Changjiang river (south China), characterised by hot summers and cool winters, heat demand is
mostly covered by individual heating systems such as direct electric heating, heat pumps and coal stoves.
Domestic hot water is mainly provided by electric heaters, gas heaters and solar energy heaters. In several cities, the
District Heating system also supplies domestic hot water.
3 DISTRICT COOLING
In 2012, the total energy consumed by public and commercial buildings was 182 million tce, with residential buildings
reaching 166 million tce. Electricity consumption of public and commercial buildings accounted for 490 billion kWh, while
residential buildings consumed 378.7 billion kWh. The cooling demand has increased rapidly following the urbanisation
curve. It is estimated that the total electricity consumed for cooling of public and commercial buildings accounted for
about 27% , with residential buildings reaching 12% of the total energy consumption.
The main technologies used for cooling are centralised large-scale electric compression chillers, individual electric
compression chillers, household air conditioning, various heat pumps, combined district cooling, heating, and power, hot-
water absorption chillers in the District Heating system, gas-fired absorption chillers, etc.
In residential buildings, household air conditioning has become one of the most popular systems. In public and commercial
buildings, the energy efficiency and economic cost of large-scale District Cooling systems are still under debate in China.
As opposed to District Heating systems, District Cooling needs special conditions and complex design in order to achieve
a relatively high energy efficiency as well as low cost.

CHINA

OF DISTRICT COOLING
With the increasing heating and cooling demand due to fast urbanisation, District Heating and Cooling are expected to
bring more market opportunities in China.
In 2011, the National Development and Reform Commission, the Ministry of Finance, the Ministry of Housing and
Urban Construction and the National Energy Bureau issued joint recommendations “on the development of natural gas
distributed energy”, consisting of:
• the establishment of 1,000 demonstration projects;
• a 50 million KW target for the national installed capacity by 2020;
• financial subsidies offered to pilot projects.

Firstly, large-scale District Cooling systems based on electric compression chillers may face the following challenges:
1. The total energy efficiency of the District Heating system should be improved. Although the centralised chiller is
highly performing, its efficiency in heating mode is poor. Compared to the North China District Heating systems where
the supply and return hot water temperature difference can reach above 60-70°C, the supply and return cold water
temperature difference in District Cooling systems is generally not more than 10°C. Thus, the power consumption
of the circulating pump in the District Cooling system may be 6 to 10 times higher than that of District Heating.
2. Compared to the distributed compression chilling system, District Cooling may be low in efficiency at part load. The
heating load generally varies from 40% to 100%, while the cooling load varies from 1% to 100%. Especially for residential
users, energy consumption may be 2 to 3 times higher when changing from individual air conditioning systems.
3. The District Heating system may face difficulties with cooling metering and fee charging.
Therefore, before finding scientifically and economically feasible solutions, District Cooling should not be rapidly advocated
for and promoted. The technology implies more complex design conditions, linked to district density, utilisation of natural
cooling sources, flexible operation control by users, etc.
Secondly, the distributed absorption chilling with CHP systems do not have the advantages of energy efficiency and cost
effectiveness.
Thirdly, compared to a distributed electric compression chilling system, the natural gas cooling system may also not have
the advantage of energy efficiency and cost effectiveness when supplying cooling during the summer. Moreover, the
mechanism for the distributed energy to connect to the urban power grid is still uncertain at present.

The Beijing south railway station covers an area of 140,000 m2. It is the first District Heating and Cooling demonstration
project integrating a sewage water heat pump. The maximum heat load is 12 MW and the maximum cooling load is 12.4
MW. The tri-generation system is sized in such a way that it provides a constant base load and therefore often operates
at full load. The two 1,570 kWe internal combustion engines cover 50% of the electricity load. The city power grid, the
sewage water heat pump, the gas boiler and the electric compression chiller provide the peak load for electricity, heating
and cooling.
In the winter, the engine waste heat is recovered in three stages. Firstly, the primary circuit recovers energy from the
engine water jacket to produce hot water for space heating. Then, the secondary circuit recovers energy from the engine
oil radiator to warm hot water for space heating or sanitary hot water. Thirdly, high temperature exhaust gases are used to
drive the absorption heat pump to recover exhaust gases with temperatures below 40°C, and all the heat from the exhaust
gases is used for space heating.
In the summer, the cooling tower is used, and the exhaust gases and the primary circuit water are used to drive the
absorption heat pump simultaneously, which is used to produce chilled water. The secondary circuit recovers energy from
the engine to produce domestic hot water. In the system, there are two cooling water tanks used to prevent the engine
from operating under unsafe conditions.

CHINA
The test results show that the calculated maximum overall energy efficiency was 94.94% in the winter and 84.33% in the
summer. The system’s primary energy saving was 32.2% in the winter and 4.9% in the summer. The system could therefore
be regarded as highly efficient tri-generation.
Compared to reference gas boilers and electric refrigeration systems, the high initial investment was 24.62 million Chinese
Yuan, however operation and maintenance costs decreased in one year with 4.5 million Chinese Yuan. The return on
investment is therefore calculated for 5.47 years.
4 COOLING MARKET
Due to the increasing demand for heating, cooling, domestic hot water and electricity, the energy consumption of public
and commercial buildings has increased by 33% from 16.5 to 21.9 kgce/m2 between 2001 and 2012. The growth in the
residential buildings sector was around 50%.
Electricity consumption in China reached 5,322.3 billion kWh in 2013.
The ratio electricity used for comfort cooling is 0.237.

In 2012, the total power generation was 4,987.6 billion kWh, with thermal power accounting for 78.1%, hydroelectric
power 17.5%, nuclear power 2% and wind power 1.9%.
The CHP capacity amounted to 220,750 MW, equivalent to 27.5% of the total thermal power capacity and 19.3% of the
total power capacity in China.
Therefore, it is estimated that the proportion of CHP is about 10% of the total amount of energy generated in China, with
about 20% power generation supplied by CHP.
CHP developments over the last five years (2008-2013)
2008 2009 2010 2011 2012 2013

Total power capacity (10,000 kW) 79,273 87,410 96,641 106,253 114,676 125,768
Total thermal power capacity (10,000 kW) 60,285 65,107 70,967 76,834 81,968 87,009
Installed CHP capacity (10,000 kW) 11,583 14,464 16,655 20,387 22,075
Heat supplied by CHP (10,000 GJ) 249,702 258,198 280,760 297,859 307,749

CHINA

USE OF BUILDINGS
The number of heating degree days (HDD) in North China may vary from 1,500 to 6,800 in different climate zones,
according to a base indoor temperature of 18°C.
Heating Average outdoor Maximum outdoor

City Heating days HDD
period temperature (°C) temperature (°C)
Harbin 10.18-4.12 177 -9.9 -26 4,938
Qiqihar 10.15-4.14 182 -10.2 -25 5,132
Huma 10.2-4.26 207 -14.8 -39 6,790
Changchun 10.21-4.9 171 -8.3 -23 4,497
Yinchuan 10.30-3.24 146 -3 -15 3,168
Beijing 11.12-3.17 126 -1.6 -9 2,470
Tianjin 11.16-3.15 120 -1.5 -9 2,340
Shijiazhuang 114 -0.5 -8 2,109
Jinan 103 0.9 -7 1,782

China is divided into five climatic zones: severe cold, cold, hot summer/cold winter, hot summer/ warm winter and
temperate zone. District Heating covers most of China’s northern cities, but is banned by law in southern cities.
AVERAGE ENERGY USE OF BUILDINGS PER SQUARE METER IN 2013

In 2012, the total building energy consumption in China amounted to 690 million tce for a total building area of 51 billion m2.
Thus, the average energy use per m2 was equal to 13.5 kgce.
China District Heating Association

2nd Floor, Building 15, Huizeyuan, Tonghui Jiayuan, Chaoyang District, Beijing, China
Postcode:100025
http://www.china-heating.org.cn
Tel:0086 10 57670557
Fax:0086 10 57670555
Contact Person: James Guan Xin
Email: guan_xin2006@sina.com

1,800
MWth
TOTAL INSTALLED
DISTRICT HEATING
74%
CAPACITY
110
OF DISTRICT HEAT
COMES FROM
RECYCLED HEAT
DISTRICT HEATING
SYSTEMS IN CROATIA
CROATIA
JADRANKA MARAS ABRAMOVIĆ

CROATIA
1 DISTRICT HEATING
KEY FIGURES
2013 2011 2009

Total installed District Heat capacity (in MWth) ~ 1,800 ~ 1,800 ~ 1,800
410 460 460
Average CO2 emissions per GWh of district
0.058 0.064 0.068
heat generated (kg CO2/MJ)
Number of District Heating systems* 110 125 125
* District Heating system is a heat distribution network with its own heat source, technically independent from other networks, regardless of
2013 2011 2009

TOTAL 9,678 9,980 9,550

12,000
10,000
8,000
Services and other
TJ
6,000
Industrial sector
4,000 Residen<al sector
2,000
0
2013 2011 2009
Croatia - 2 COUNTRY BY COUNTRY / 2015 Survey

CROATIA
500 12,000
450
10,000
400
350
Total sales (in TJ)

8,000
300
250 6,000
200
150 4,000
100 2,000
50
-‐0 0
2013 2011 2009
Total sales
2013 2011 2009

Source In TJ In % In TJ In % In TJ In %
In cogeneration
Oil and petroleum products 457 3.6 % 1,302 9.8 % 2,774 21.8 %
Natural gas 8,187 65.2 % 7,899 59.4 % 6,382 50.1 %
Combustible renewables* 645 5.1 % 345 2.6 %
Others
Natural gas 2,921 23.3 % 2,584 19.4 % 2,523 19.8 %
Oil and petroleum products 339 2.7 % 1,171 8.8 % 1,052 8.3 %
TOTAL 12,548 100% 13,300 100% 12,730 100%

CROATIA

100%
100%
90%
100%
90%
80%
90%
80%
70% Other
80%
70% Other
60% Direct Renewable
70% Other
50%
60% Recycled Heat
Direct Renewable
50%
Recycled Heat
40%
50%
40% Recycled Heat
30%
40%
30%
20%
30%
20%
10%
20%
10%
0%
10%
0% 2013 2011 2009
0% 2013 2011 2009
2013 2011 2009
The fuels used for District Heating in Croatia are natural gas, oil and petroleum products (light heating oil and fuel oil),
which are used both in cogeneration plants and local boiler plants. In the past ten years, the percentage of each fuel used
has fluctuated from year to year. However, the percentage of natural gas used to generate District Heating in the last
decade has generally risen while the percentage of oil and petroleum products has fallen. In 2009, there was a shortage
of natural gas which resulted in an increased percentage of oil and petroleum products being used. The following diagram
illustrates these trends and show the percentages of fuels used (for 2013: natural gas 88.5%, oil and petroleum products
6.3% and renewables 5.1%).

CROATIA
Titre Fuels used for District Heating
100%
90%
80%
70%
60%
Renewables
renewables
50%
Natural ggas
natural as
40%
oil
Oil aand
nd ppetroleum
etroleum
30% products
products
20%
10%
0%
1997 2002 2005 2007 2009 2011 2013

There has been no expansion of District Heating in the last fifteen years in Croatia and there is a considerable need for
refurbishment of existing networks in order to increase customer confidence, energy efficiency and profitability. The
diagram on the next page shows the historic overview of steam and hot water consumption in Croatia (including industrial
auto-production).

CROATIA
Historic overview of steam and hot water consumption in Croatia in PJ (including industrial autoproduction)
35
35
30
30
25
25
20
PJ PJ
20
in in
15
15
10
10
5
5
0
0
2008 2009 2010 2011 2012 2013
2008 2009 2010 2011 2012 2013
-‐ Services -‐ Households -‐ Industry -‐ Energy sector own use -‐ Distribu@on losses
-‐ Services -‐ Households -‐ Industry -‐ Energy sector own use -‐ Distribu@on losses
District Heating has been set as one of the priorities of Croatia’ energy policy with the following development guidelines
for District Heating systems:
• Improving the legislative framework to ensure the efficient operation of the heating sector;
• The need to introduce planned energy supply to residential areas from the position of the lowest cost in the
observed period;
• The need to modernise District Heating systems and to provide incentives for the development and application of
domestic equipment and services (for production units and the District Heating network);
• The use of renewable energy sources to produce heat and the provision of incentives for distributed production;
• Providing incentives for the efficient use of heat;
• The application of up-to-date information technologies to maintain and manage assets.

The legislative framework of the District Heating sector in Croatia consists of the following acts:
• An Energy Law (Official Gazette 120/12) defines the principles of the energy market, energy prices and tariffs,
public service requirements and licensing principles. The Energy Law brings major changes into the District Heating
business in Croatia, as the authority for District Heating tariffs approval has been handed over to Croatia’s Energy
Regulatory Agency;
• A Law on Regulation of Energy Activities (Official Gazette 120/12);
• A Heat Market Law (Official Gazette 80/13, 14/14 and 102/14) adopted in mid-2013 introduced significant
innovations in the District Heating sector in terms of planning, organisation and functioning. The main goals of the
new act are to create conditions for the safe and reliable delivery of heat, market development, the protection
of end-customers, heat price competitiveness, efficient production and use of heat, and to minimise negative
impacts on the environment and sustainable development, in line with EU rules.
Related subordinate acts can be found at http://www.hera.hr/hr/html/propisi_tenergija.html.

CROATIA
There are a number of other legal regulations that pertain to the performance of individual segments of heat activities and
regulate particular issues in detail. The most important acts are: a Law on Environmental Protection and Energy Efficiency
Fund, ownership and other real rights laws, a Civil Obligations Law, a Law on Environmental Protection, a Law on Local
and Regional Government, a Law on Consumer Protection, a General Administrative Procedure Law, Physical Planning and
Construction Law.

OF DISTRICT HEATING
The main opportunity for the development of District Heating in Croatia is seen as being through improved energy
efficiency and an increase in reliability and security of supply of District Heating systems through the application of new
technologies. These may include options such as cogeneration, biomass and incineration plants, the replacement of old
networks with pre-insulated pipes, improved regulation of District Heating systems at all levels (including demand side
management).
Given the present situation and forecasts of economic and demographic growth, by 2020 Croatia is expected to create the
basic preconditions for the development of District Heating, such as improving the technical and technological conditions
of existing systems, the completion of the related legislative framework and the commencement of energy planning as
well as general energy management (as a result of increasing energy prices and environmental costs). It may still be too
early for development of large District Cooling schemes in Croatia but this will certainly depend on new technologies and
their widespread application as well as acceptable investment and operating costs that are competitive in comparison
with current traditional methods of cooling. Cooling undoubtedly has potential but how it will take off remains to be seen
in the years to come.

The main barriers to the expansion of District Heating in Croatia are:
• Natural gas, which is the main competitor of District Heating, is seen by District Heating companies as being
favoured by political and local community and in terms of price;
• The existing District Heating systems in Croatia require substantial investment to revitalise and modernise them in
order to increase the reliability and security of heat supply;
• A lack of energy planning. The final phase of the District Heating Strategy, which has been postponed, is expected to
provide the final guidelines that should facilitate cooperation between state administration offices in the counties
responsible for energy affairs and representative bodies of local governments when physical planning documents
are being developed.
The major challenge is to raise more awareness for District Heating and to create conditions for it to become profitable
by allowing price levels to facilitate development. The implementation of the Energy Development Strategy through an
Energy Strategy Action Plan is also a challenge as it will determine measures, activities and implementation dynamics of
the energy policy for the upcoming four years. The image of District Heating also needs to be improved, especially among
those that are not currently using it via information and education campaigns.
In the update of the Energy Strategy and of the Implementation Programme of Croatia it is stated that the construction of
distributed energy infrastructure as a complement to large energy systems will be stimulated as well as the application of
heat pumps due to their high efficiency and lower environmental impact.
It is estimated that by 2020, 100 MW micro and small cogeneration units will be built (up to 1 MW), while by 2030 a further
50 MW are expected. Cogeneration units will be used for heating, cooling and electricity generation.
Heat pumps are used in low-temperature heating and are as such not compatible with the existing heating infrastructure.
With higher energy prices and government incentives they are becoming competitive and therefore low-temperature
heating is expected to grow. It is estimated that by 2020, 18% of the total heated surface of residential, services and other
sectors will use heat pumps for heating and cooling, out of which 70% are expected to be natural gas absorption heat
pumps.

CROATIA
2 HEAT MARKET
Number of citizens served by District Heating 415,965


10%
SHARE OF ENERGY SOURCES USED TO SATISFY HEAT DEMAND* IN THE RESIDENTIAL SECTOR IN 2013
Source In %
Natural gas 36%
Electricity 13%
Oil / Petroleum products 11%
Renewables** 29%
TOTAL 100%
* Heat demand means heat demand for space heating, hot water preparation and cooking
** Includes wood pellets, wood chips, biomass, firewood, geothermal, solar thermal

CROATIA
10%
30% District Hea0ng

Natural gas
Electricity
36%
11% Renewables**
13%
**includes wood pellets, wood chips, biomass, firewood, geothermal, solar thermal
Gas is the most dominant energy source for space heating and domestic hot water in Croatia and the main competitor
of District Heating. Electric heating can be found in the southern, coastal region, where gas or District Heating networks
do not exist. District Heating networks are found in larger continental cities and their share in the local heat market lies
between 15% and 40%. When it comes to renewable energies, wood is the largest source used for space heating and
domestic hot water. Decentralised and small scale CHPs are seldom found and their market share is very small.
3 COOLING MARKET
DESCRIPTION OF THE COOLING MARKET
There is no District Cooling in Croatia.
The estimated total potential for the cooling market in Croatia is 10 TWh. The residential sector has a potential of 6 TWh
and the services sector 4 TWh. The specific cooling demand is 47 kWh/m2 for the residential sector and 104 kWh/m2 for
the services sector.

CROATIA
RATIO OF ELECTRICITY USED FOR COMFORT COOLING

The graph below was created according to the following formula used in Ecoheatcool1:
Ratio = (electricity demand July) – (electricity demand April) / annual average electricity demand per month
For the entire period from 2002 to 2013 the ratio is positive, indicating that the demand for electricity is higher in July than
in April due to comfort cooling needs. The ratio for the year 2013 is 0.117.
Ratio of electricity used for comfort cooling
0.180
0.160
0.140
0.120
0.100
ra/o
0.080
0.060
0.040
0.020
0.000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

1 Ecoheatcool Project, ‘Recommendations and project reports’, Work Package 2, p. 118

CROATIA

Oil / Petroleum products 1,101 467 1,568
Coal and coal products 131 131
Natural gas 19,734 2,281 22,015
Renewables* 1,555 75 1,630
TOTAL 22,390 2,954 25,344

30,000
25,000
20,000
Renewables*
Natural gas
TJ
15,000
5,000
0
in TJ in TJ in TJ

The fuel sources used for CHP in Croatia are natural gas, oil and petroleum products, coal and coal products and renewable
energies. In the last ten years, the shares for the different types of fuel fluctuated from year to year. However, the share of
natural gas generally increased while the share of oil and petroleum products decreased in the last five years. The diagram
illustrates the shares of fuel sources used for CHP in 2013.
CHP HEAT AUTO-PRODUCTION IN INDUSTRIAL PROCESSES (OUTSIDE DISTRICT HEATING) IN 2013:

10,077 TJ

CROATIA

USE OF BUILDINGS
The heating season usually lasts from October to April. The table below sets out the heating degree days for selected cities
in Croatia, according to the base indoor temperature of 20°C and outdoor temperatures of 10°C, 12°C and 15°C.
Toutdoor=10°C Toutdoor=12°C Toutdoor=15°C

Karlovac 2,760 2,940 3,083
Osijek 2,827 3,002 3,134
Rijeka 1,752 2,044 2,266
Sisak 2,805 2,979 3,118
Slavonski Brod 2,870 3,040 3,168
Split 1,089 1,438 1,749
Varaždin 2,987 3,151 3,270
Vukovar 2,710 2,890 3,031
Zagreb 2,541 2,732 2,892

Croatia has two climates:
• Continental Croatia (which belongs to central Europe) is characterised by a moderate continental climate with hot
and dry summers and cold and humid winters in the interior regions and fresh summers and cold winters with large
amount of snow in mountainous regions;
• Coastal Croatia (situated in the Mediterranean region by the Adriatic Sea) is characterised by a Mediterranean
climate with hot, very dry summers and mild but humid winters.

The average energy use of all buildings (residential and non-residential) in 2013 is 147.92 kWh/m2.
Energy Institute Hrvoje Požar

Savska cesta 163, 10000 Zagreb, Croatia
Tel: +385 1 6326130
Fax: +385 1 6040599
www.eihp.hr
Contact Person: Jadranka Maras Abramović
Email: jmaras@eihp.hr

22,958MWth
TOTAL INSTALLED
75% DISTRICT HEATING

CAPACITY
OF DISTRICT HEAT
COMES FROM
DIRECT RENEWABLES
4,004,584
CITIZENS ARE SERVED BY
AND RECYCLED HEAT DISTRICT HEATING
CZECH REPUBLIC
JOLANA BUGÁŇOVÁ
CZECH REPUBLIC
1 DISTRICT HEATING
KEY FIGURES
2013 2011 2009

Total installed District Heat capacity
22,958 24,993 19,208
(in MWth)
7,738 7,592 7,554
Heating and Cooling in Euro (excluding 290.51 M 201. 45 M 201.74 M
operational and maintenance costs)*
Heat energy Heat energy Heat energy
production-licences 670 production-licences 619 production-licences 637
Number of District Heating systems**
Heat energy Heat energy Heat energy
distribution-licences 666 distribution-licences 663 distribution-licences 678
Source: ERO, CSO, MIT

*Euro exchange rate used (annual average): 1 EUR = 25,942 CZK (2013), 1 EUR = 24,586 CZK (2011), 1 EUR = 26,445 CZK (2009)
2013 2011 2009

TOTAL 89,417 88,240 93,114
Source: MIT, ERO

100,000
90,000
80,000
70,000
TJ
50,000
Industrial sector
40,000
Residen>al sector
30,000
20,000
10,000
0
2013 2011 2009
Czech Republic - 2 COUNTRY BY COUNTRY / 2015 Survey

CZECH REPUBLIC
9,000 100,000
8,000 90,000
7,000 80,000
70,000
Total sales (in TJ)

6,000
60,000
5,000
50,000
4,000
40,000
3,000 30,000
2,000 20,000
1,000 10,000
0 0
2013 2011 2009
Total sales

(annual average)
2013 19.1 22 25.942
2011 19.1 21 24.586
2009 17.1 18.7 26.445
Source: ERO
HEAT SALES TURNOVER
Total District Heat Sales Average District Heating Heat sales Turnover

(in TJ) Price (in EUR/GJ excl. VAT) (in Million EUR)*
2013 89,417 19.1 1,711.4
2011 88,240 19.1 1,686.8
2009 93,114 17.1 1,595.8

CZECH REPUBLIC
2013 2011 2009

In cogeneration
Coal and coal products 53,792 60.2 % 54,268 61.5 % 53,317 57.3 %
Oil and petroleum products 18 0.02 % 142 0.2 % 753 0.8 %
Natural gas 6,734 7.5 % 5,358 6.1 % 4,493 4.8 %
Nuclear 745 0.8 % 229 0.3 % 227 0.2 %
Combustible renewables* 3,295 3.7 % 936 1.1 % 154 0.2 %
Waste** 1,172 1.3 % 1,167 1.3 % 699 0.8 %
Combustible renewables* 686 0.8 % 1,585 1.8 % 1,737 1.9 %
Renewable waste** 1,271 1.4 % 1,099 1.2 % 1,613 1.7 %
Others
Natural gas 12,966 14.5 % 13,906 15.8 % 16,879 18.1 %
Oil and petroleum products 214 0.2 % 561 0.6 % 2,140 2.3 %
TOTAL 89,417 100 % 88,240 100 % 93,114 100 %
Source: MIT, ERO
* includes wood pellets, wood chips, biomass and firewood
** biodegradable fraction of municipal waste in accordance with Art. 2e of the Renewables Directive

100%
90%
80%
70% Other
50% Recycled Heat
40%
30%
20%
10%
0%
2013 2011 2009

CZECH REPUBLIC
The total amount of primary energy used for heat production in the Czech Republic has been decreasing steadily over
the past ten years primarily due to energy saving measures being applied by customers connected to District Heating
systems such as better insulation of buildings or more advanced temperature control technologies. It was also influenced
by continuing structural change in the national industry favouring less energy intensive industries.
Primary energy sources used for heat production have been dominated by domestic brown and hard coal. While the
amount of brown coal has remained stable and its share increased in relative terms, the share of hard coal has diminished
mostly because of economic reasons. Liquid fuels (mostly heavy fuel oil) have been almost eliminated from the energy
balance for economic and environmental reasons, while the share of other fuels, including biomass, has been significantly
increasing because of favorable feed-in tariffs on electricity from cogeneration produced from biomass. The share of
natural gas in the energy balance experienced only a marginal decrease.
Primary energy sources consumption – District Heating
250
200
Liquid
150
Other
PJ
Renewables
100 Natural gas
Coal
Lignite
50
0
2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: Czech Statistical Office

In 2011 almost 1.4 million households were connected to District Heating which represented 38.1% of all households in
the Czech Republic. District Heating systems are operated in all of the 21 biggest cities with a population over 50,000
inhabitants. In these urban areas, District Heating reached a market share of 73%.
The total number of households connected to District Heating has been moderately yet steadily growing over the past five
years, even though disconnections are also observed in several areas with higher heat price.
The District Heating sector is largely concentrated as the ten largest companies supply heat to over 1.055 million flats.
International companies such as Veolia Energy or MVV are active on the market, however a large part of the sector is
owned by municipalities. There is no direct state ownership of District Heating systems.

CZECH REPUBLIC
The new energy policy, which however has not yet been approved by the government, shows support to District Heating.
There is, however, no clear state strategy towards existing District Heating systems and economic legislation favours
individual heating solutions which are in practice exempted from various fees and taxes imposed on large plants, and
hence on District Heating. There is no clear heat development strategy in the Czech Republic.
The role of District Heating in delivering the EU 2050 climate and energy objectives was not elaborated in detail in the
Czech Republic. There are only plans on the renewable energy share in heat production.

The Energy Act no. 458/2000 Coll.
The energy law sets basic principles for the energy sector of the Czech Republic. There is a special part devoted to District
Heating stipulating rights and obligations of District Heating companies including metering and billing. Heat prices are
subject to regulation by the energy regulatory authority in the Czech Republic.
The Act on Energy Management no. 406/2000 Coll.
This act sets energy efficiency requirements for boilers, cogeneration and heat distribution. It also implements the main
parts of the Energy Performance of Buildings Directive.
The Act on Supported Energy Sources no. 165/2012 Coll.
The act on Supported Energy Sources approved in 2012 replaced older legislation. It provides feed-in tariffs and green
bonuses for renewable energy and CHP electricity. The green bonus for renewable heat was introduced starting from 2013.
The Act on Air Protection no. 201/2012 Coll.
The act establishes mandatory emission limits for combustion installations including District Heating. All transition
periods and derogations provided for by the Directive 2010/75/EU were implemented in the Czech Republic, including the
transition period for District Heating plants. The act also stipulates that legal and natural persons are obliged to connect
to District Heating provided that it is technically feasible and economically viable for them.

OF DISTRICT HEATING
The impetus provided by the reduced value added tax rate of 15% (in 2013) cannot be ignored despite the gradual trend for
the rate to increase. New policy priorities (from 2013) focus on financial support for CHP based on achieved primary energy
savings according to European legislation. The increase of energy utilisation of municipal waste is another opportunity for
the Czech District Heating sector for providing an important share of sustainable fuel at reasonable parameters.

The barriers to the expansion of District Heating are the following:
• The relatively high share of heat in the total heat market in urban areas results in limited growth opportunities;
• The high uncertainty about future national and EU environmental and energy policies;
• The unfair competition with installations excluded from obligation to purchase EU ETS allowances and biased
energy taxation where in-house gas boilers are exempted from the energy tax while District Heating is not;
• The lengthy approval process for new construction and accessibility of private land for pipes.
The challenges for District Heating that need to be addressed are the following:
• The overall modernisation and increase in efficiency (plants and heat networks);
• The diversification of the fuel base (partial replacement of coal);
• The reduction of emissions and compliance to stringent emission limits;
• Increasing user comfort for customers;
• Maintaining a competitive price of heat;
• Ensuring a skilled workforce.

CZECH REPUBLIC
The increase of energy utilisation of municipal waste (Waste-to-Energy) presents an important opportunity for the Czech
District Heating sector and is capable of providing approximately 14 PJ of heat and 1 TWh of electricity. Unfortunately, there
are still barriers hindering the large-scale implementation of this technology – mainly weak national waste management
legislation and favourable conditions for landfilling of municipal waste.

Vlašim District Heating system
After the acquisition of the District Heating system in Vlašim, the company Veolia Energie Kolín modernised its technical
facilities. This meant the reconstruction of the District Heating system from steam to hot water. At the same time, the
central preparation of domestic hot water was replaced by domestic hot water preparation in exchange stations on the
consumers’ premises. The old steam gas boiler was replaced by a modern hot water gas boiler and a new biomass boiler
was installed during the renovation. Veolia Energie Kolín therefore significantly reduced heat losses and CO2 emissions
(by more than 48,000 tonnes over fifteen years). The company supplies 80 TJ of heat per year for 2,350 households,
healthcare facilities and two schools, the town hall and the cultural house. The reconstruction of the District Heating, the
gas boiler and the construction of a new bio-boiler plant provides customers with the stabilisation of heat prices thanks to
renewed long-term prospects of secure heat supply through the District Heating system.
Kopřivnice District Heating system
The city of Kopřivnice refurbished its District Heating system for 212 million CZK (40% of the amount co-funded from EU
funds). The city currently has 16 km brand new heat pipes and 169 exchange stations on the consumers’ premises. A
part of the heat supplied to households in Kopřivnice is covered by a new biomass boiler, which was built in 2014 and is
currently in trial operation. The K10 boiler is a modern environmentally friendly installation for combined heat and power
generation, which guarantees compliance with the strictest emission limits and ensures reliability of supply. Biomass fuel
is cheaper than natural gas, and therefore the company can also guarantee long-term stability of heat prices. The boiler
also uses local wood chips and therefore has a positive impact on employment in the region.
2 HEAT MARKET

Source: CSO

CZECH REPUBLIC

38%
2013 2011 2009

million m 2
145 145 144
Source In % New buildings built in 2013 only (in %)

District Heating 37% 21.2%
Natural gas 39.2% 36.7%
Electricity 6.5% 8.2%
Coal 8.9% 0%
Renewables* 8.1% 21.4%
Heat pumps 0.3% 12.5%
TOTAL 100% 100%

CZECH REPUBLIC
0.3%
8%
9%
District Hea0ng
37%
7% Natural gas
Electricity
Coal
Renewables*
Heat pumps
39%
The main competitor for District Heating in the heating market is the direct use of natural gas (natural gas boilers) and
heat pumps. District Heating and natural gas have currently comparable market shares and together comprise over three
quarters of heat market in terms of number of households served. Electricity is becoming more used, especially heat
pumps, even though available statistics do not specifically cover heat pumps (they are surveyed under electric heating
most of the time). Biomass boilers are also becoming increasingly popular in the Czech Republic. On the other hand, there
are still more than 500,000 domestic boilers (or even stoves) mostly in the countryside using coal as heating source.
3 DISTRICT COOLING
There are still no specific statistics on District Cooling available. The following District Heating companies are involved in
District Cooling:
• Veolia Energie, the group of CHP/District Heating companies, produced about 49 GWh in cooling energy for its
customers in 2013. Veolia Energie is operating cooling installations (both compressor cooling and absorption units)
with water parameters at 6/12°C. Besides the new District Cooling system for the Karviná mine, an important new
project of Nová Karolína District Cooling was commissioned in 2012.
• Plzeňská teplárenská, a.s. installed its first absorption units in the Pilsen brewery (2 units of 1,500 kW each)
powered by hot water 100/85.6°C from the District Heating system. The annual production of cooling energy
is 4,000 MWh. The other unit is installed in the university buildings and its cooling output amounts to 420 kW.
Cooling water with parameters 6/12 °C is delivered to three separate circles.
• Elektrarny Opatovice, a.s. installed its pilot District Cooling project in the city of Hradec Kralove.

OF DISTRICT COOLING
There is no national legislation or policy focusing on District Cooling, therefore no particular driving forces were identified.

CZECH REPUBLIC

Air conditioning is only used in new or retrofitted administrative buildings, hotels or luxury apartments and it is rarely
concentrated enough in order to provide the “critical mass” so that the District Cooling option would be economically
viable.

District Cooling for Karviná Mine
From April 2013, Dalkia Industry CZ (from the group Veolia Energie) supplies the mining company OKD with cooling for
the ČSA Karviná Mine. The investment is worth about 355 million CZK and addresses growing demands to ensure proper
ventilation, improves the microclimate conditions and contributes to a better working environment for miners during
deep underground mining. The cooling capacity of 10 MW represents a flow of 500 m3/hour of water coolant through
the primary cooling circuit with a supply temperature 2.4°C. Cooled water is then transported underground to a depth
of more than 1,000 m. The cooling installation, which was built in record time, is located in the building of a compressor
station in the Karviná Mine. The cooling units are capable of using so called “free cooling” during winter time in a closed
system, which is filled with antifreeze and consists of dry coolers and a heat exchanger. The total length of pipes in the
mine, including the distribution of the downcast pit Jan reaches 32,100 meters. Dalkia Industry CZ provides OKD with the
supply and distribution of electricity, heat, hot water and compressed air for mining and processing of coal.
4 COOLING MARKET
DESCRIPTION OF THE COOLING MARKET
Before the 1990s, air conditioning as a technology used to be installed exclusively in international hotels, at the airport
or operating rooms in hospitals. Nowadays, 75% of all new buildings in the public sector and half of all new building in the
industrial sector are equipped with air conditioning.
All cooling units operated by District Heating companies are absorption chillers powered by hot water or steam and are
used for industrial purposes (brewery, food technology).
Cooling in the Czech Republic is mainly based on individual compressor units powered by electricity. They are installed
in the building’s boiler rooms or as local units directly placed in rooms. The total installed capacity is much higher than
the one of District Cooling systems: about 50 ice skating rinks, 200 hotels, 50 entertainment and cinema buildings, 200
shopping centres and hundreds of administration offices and industrial buildings are equipped with air conditioning.
RATIO OF ELECTRICITY USED FOR COMFORT COOLING IN 2013: -0.0614

Electricity consumption in July 2013: 4,280.5 GWh
Electricity consumption in April 2013: 4,580.4 GWh
Average in 2013 (58 656,3/12): 4,888 GWh
Source: ERO, 2014: Annual Data Summary of Electric Power System of the Czech Republic
A high ratio would have implied that there is a peak in the electricity demand caused by comfort cooling needs. However,
the ratio calculated for the Czech Republic does not confirm higher electricity demand associated with comfort cooling.

CZECH REPUBLIC

SHARE OF CHP IN ELECTRICITY GENERATION IN 2013: 13.1%
CHP/District Heat CHP/Industry CHP/Total

Natural gas 12,002 9,685 21,687
Renewables* 5,699 16,020 21,719
Waste 666 1,914 2,580
Other 20,414 88 20,502
TOTAL 176,832 78,215 255,047
300,000
250,000
200,000 Other
Waste
Renewables*
TJ
150,000
Natural gas
100,000
50,000
0
in TJ in TJ in TJ

CZECH REPUBLIC

The CHP production corresponds to two thirds of heat in District Heating and one third of the total heating demand. In
2012, CHP had a share of about 13% in the electricity generation sector. The close correlation between the useful heat
demand and the potential of further CHP development must not be disregarded. In the heating sector, there has been a
significant reduction in the consumption of useful heat due to rationalising heat production, distribution and (especially)
consumption.
The promotion of cogeneration is since 2012 part of the Act on Supported Energy Sources no. 165/2012 Coll. (previously
in Energy Act No. 458/2000 Coll.) and references to its further development can be found in the State energy policy and
other relevant policies.
In recent years, there is a shift in heat production especially from smaller heat-only installations to CHP installations
mainly due to the increase in combustible renewable sources (biomass) and natural gas.

USE OF BUILDINGS
In 2009, there were 3,065 heating degree days and 2,964 in 2011. The base indoor temperature is 20°C, according to the
standard CSN EN 12831, National Annex and the Decree 194/2007 Coll., Annex I on the principles for space heating.

In general, the Czech climate is continental with warm summers and cold winters, influenced by mixed oceanic and
continental variations. Maximum temperatures vary between 32/37°C and -12/-20°C. The average outdoor temperature
for the period 1982-2011 was 8.0°C and 7.9°C for 2013 according to the data of Czech hydro-meteorological institute.

Average floor area of standard flat 70 m2
Average heat consumption 25 GJ/year
Average electricity consumption 2.6 MWh/year
Average energy use of buildings 136 kWh/m2/year
Association for District Heating of the Czech Republic (ADH CR)

Partyzánská 1/7, 170 00 Praha 7, The Czech Republic
Tel: + 420 607 825 270
www.tscr.cz
Contact Person: Jolana Bugáňová
Email: tscr@tscr.cz

46%
98%
OF DISTRICT HEATING
IS GENERATED BY DIRECT
USE OF RENEWABLE
ENERGY SOURCES
OF ALL BUILDINGS
IN COPENHAGEN
ARE CONNECTED TO
DISTRICT HEATING
OF PIPELINES
TRANSPORT
AND DISTRIBUTION
DENMARK
BIRGER LAUERSEN
DENMARK
1 DISTRICT HEATING
KEY FIGURES
2013 2011 2009

29,000 28,400 28,000
Heating and Cooling in Euro (excluding 500 M 500 M
9.18 t CO2/GWh 7.36 t CO2/GWh 8.25 t CO2/GWh
heat generated
*Euro exchange rate used: 1 EUR = 7.5 DKK

2013 2011 2009

TOTAL 105,563 101,940 99,568

120,000
100,000
80,000
Services and other
TJ
60,000
Industrial sector
20,000
0
2013 2011 2009
Denmark - 2 COUNTRY BY COUNTRY / 2015 Survey

DENMARK
35,000 120,000
30,000 100,000
25,000
Total sales (in TJ)

80,000
20,000
60,000
15,000
40,000
10,000
5,000 20,000
-‐0 0
2013 2011 2009
Total sales

(annual average)
2013 27.9 34.9 7.5
2011 26.7 33.4 7.5
2009 25.03 31.3 7.5
HEAT SALES TURNOVER

2013 105,563 27.9 2,945
2011 101,940 26.7 2,726
2009 99,568 25.0 2,492

DENMARK
2013 2011 2009

In cogeneration
Oil and petroleum products 2,146 2.5 % 2,551 3.1 % 4,225 5.3 %
Natural gas 21,407 24.5 % 22,036 26.8 % 23,320 29.1 %
Waste** 7,160 8.2 % 7,117 8.6 % 7,269 9.1 %
Geothermal 229 0.3 % 166 0.2 % 212 0.3 %
Combustible renewables* 30,447 34.8 % 25,795 31.3 % 18,945 23.6 %
Solar and other 474 0.5 % 217 0.3 % 105 0.1 %
Renewable waste*** 8,751 10 % 8,632 10.5 % 8,884 11.1 %
Heat pumps (output) 559 0.6 % 259 0.3 % 77 0.1 %
TOTAL 87,398 100% 82,349 100% 80,163 100 %

** includes both biodegradable fraction and non-renewable waste
*** Biodegradable fraction of municipal waste in accordance with art. 2e of the Renewables Directive

Energy
Energy ssupply
upply ccomposi0on
omposi0on oof
f ggenerated
enerated DDistrict
istrict HHeat
eat
100%
100%
90%
90%
80%
80%
70%
70% Other
Other
60%
60% Direct
Direct RRenewable
enewable
50%
50% Recycled
Recycled HHeat
eat
40%
40%
30%
30%
20%
20%
10%
10%
0%
0%
2013
2013 2011
2011 2009
2009

DENMARK
District Heating production has grown with around 4% in the period 2003 to 2013, however a major shift in the energy
input took place in this period.
The use of renewable energy sources in District Heating has grown from a share of 29.8% in 2004 to 46.6% in 2013. Adding
the 0.6% share of electricity, which is only used in District Heating when electricity market prices are very low or negative
due to surplus production of renewable electricity, the total renewable energy share in District Heating amounts to 47.2%.
This is particularly due to an increased use of wood as fuel in both CHP as well as in boiler units. The use of solar as well as
geothermal heat has also grown considerably but still only contributes with 0.8%.
In the same period, the share of fossil fuel sources in District Heating have consequently dropped not only overall, but for
all fuel categories.
Fuel use for District Hea0ng over the last 10

Fuel use for District Heating over the last 10 years
years
100%
90%
80%
Electricity for heat pumps
70% Renewables
60% Waste
50% Coal and coal products
40% Natural gas

Oil
30%
20%
10%
0%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

The share of District Heating in 2014 accounted for 63.3% of Danish dwellings. Statistics are not available for the services
sector but it is likely that the share is similar, whereas not much District Heating is used by industry for processing purposes.
District Heating is the dominant heating solution for households, accounting for a 63.3% share of the market, increasing
from 61.3% in 2008. The number of households heated by District Heating has grown with more than 100,000 over the
period from 2008 to 2014.
Individual heating with natural gas is the second most widespread solution, with 15.6% of the market, a 0.6% increase
from 2008. Individual oil heating is still the third most common form of heat supply but it faces a continuous decline. More
than a quarter (25.7%) of oil installations have disappeared over the last six years.
Direct electric heating is decreasing and covers today 4.7% of households, down from 5.2% in 2008. Central heating systems
without oil or gas consist mainly of small biomass boilers outside areas covered with distributed solutions (District Heating
and gas networks). They cover 2.7 % of the market but have shown a considerable growth of more than 25.7% in installations.
Heat pump solutions have grown from about 20,000 installations in 2010 to 45,500 in 2013, equivalent to 1.7% of the
market.

DENMARK
A general national political consensus exists on a long-term (2050) goal for a Danish energy supply based on renewable
energy. More specifically, the government aims at the total elimination of fossil fuels use in electricity and heat by 2035.
A broad political agreement on energy was reached in the Danish parliament in 2012, with a 96% majority of members,
defining the national energy policy until 2020 and containing the following main points:
General aims for 2020
• More than 35% renewable energy sources in final energy;
• 50% wind energy in electricity generation;
• 7.6% reduction in gross energy consumption (compared to 2010);
• 34% reduction of greenhouse gas emissions (compared to 1990).
Specific aims for heating sector
• A ban on the installation of oil-fired and gas-fired boilers in new buildings as of 2013;
• No more installation of oil-fired boilers in existing buildings as of 2016 in areas with District Heating or natural gas;
• The conversion from coal to biomass of large-scale CHP plants;
• An analysis of the future role of District Heating in the energy system.
The abovementioned analysis has been conducted and focused on the period up until 2035, but with a perspective
towards 2050. The analysis identifies how District Heating should be produced in the future and the extent to which
District Heating should continue its expansion.
The study operates with two scenarios for heat production in 2035, differing mainly on expectations for developments in
the electricity market, the expansion of wind electricity production, CHP developments and the use of biomass. The main
outcome for developments of District Heating in these scenarios relates to how fast will fossil fuels be phased out and how
large a share will CHP and heat pumps have in heat generation.
Furthermore, the analysis shows that connecting all consumers in areas with existing District Heating networks will make
sense both from a cost-effectiveness and socio-economic perspective. It will also be cost-effective to develop District
Heating in a small number of urban areas without existing District Heating supply.
The analysis also looks at the impact of energy taxation regimes.

Before the energy crisis in the 1970s, Denmark relied on imported oil to cover almost all of its energy needs. The oil crisis
of 1973 revealed a total lack of security of supply and the later price increases of oil caused huge balance of payment
problems, unemployment and a general economic crisis.
The first response consisted of measures to reduce energy consumption, a push away from oil to coal as a fuel in thermal
electricity production and a heating policy aiming at utilising the huge amount of surplus heat available from this electricity
production. The development of oil and gas resources in the North Sea was initiated together with the construction and
expansion of transmission and distribution networks for District Heating and natural gas followed by intervention on the
heat market.
As a more secure supply of energy has been achieved, the focus today is on the environmental impact of energy
consumption.
Heat market intervention
The energy market for space heating and domestic hot water generation was unregulated until 1979, when a Heat Supply
Act was introduced. Its objective is “to promote the most socio-economic and environmentally friendly use of energy
for heating buildings, supplying them with hot water and reduce the oil dependency of the energy system”. This shall be
organised “with a view to promoting the highest possible degree of cogeneration of heat and power.”
The Heat Supply Act also introduced the not-for-profit principle that governs the way in which District Heating utilities
operate. It already governed municipal utilities and the electricity sector, and turned out to be a viable solution for the
natural monopoly inherent in District Heating networks and their dominant position in the heat market created by the
heat planning system.

DENMARK
Taxation
Energy taxation was introduced in 1977 to increase energy-saving incentives. In order to maintain the competitiveness
of industries and enterprises, these were exempted from taxation. The taxation only covered oil, electricity and coal,
and contributed to making investments in energy conservation and in networks for District Heating and natural gas
economically feasible. Energy taxes were increased considerably in 1986, when oil prices fell. The Danish energy taxation
level is among the highest in the world.
Subsidies
Subsidies were mainly used to support the development of networks, to increase the number of connected buildings in
District Heating areas or to facilitate the introduction of new production technologies or fuels in District Heating. General
subsidies ceased to exist in the 1990s and there are no direct subsidies for District Heating and Cooling today.

OF DISTRICT HEATING
Not only are there future opportunities for Danish District Heating to expand, despite already being the dominant source
of heating, but the expansion is already under way.
Many municipalities are developing sustainability plans and heat supply is one of the few areas where municipalities have
strong instruments. Many are developing /reviewing existing heat plans, which often involve replacing the use of natural
gas for individual heating with (cheaper) District Heating.
Compared to individual oil or gas solutions, the lower price of District Heating has created interest among users to
switch. Such a switch involves however a change of heat plans for the geographical area involved, accompanied by a
cost-benefit analysis (CBA) that demonstrates that the switch would be beneficial from a socio-economic perspective.
Even where this benefit is identified, gas companies have often contested the CBAs. Furthermore, gas distributors often
demand compensations for lost sales, which District Heating companies often have refused or have been reluctant to
pay. This process has partially been made easier when authorities issued a framework for a standard calculation of the
compensation to gas distributors for customers switching to District Heating.
Financing District Heating expansion projects is currently relatively easy. Projects can partially be financed by appropriations,
as the sector regulation allows this up to five years before investing and with up to 75% of the total investment. Further
financing usually comes from commercial loans through mortgage institutions. District Heating companies are seen as
very safe borrowers, and this ensures even lower rates than the very low interest rates currently on the market.
Since District Heating is so common in Denmark, a well-functioning supply chain of consultancies, contractors and
component suppliers is available, with a deep knowledge of the technologies and procedures involved.

An obvious barrier for further expansion is market saturation in some district heated areas. In Copenhagen, 98% of
all existing buildings are connected to District Heating. Further growth can therefore mostly come together with city
expansions such as the development of former industrial or harbour areas.
On the other hand, new buildings in urban development are covered by the building codes of 2015 and 2020 and their
ambitious requirements for energy performance of buildings: the introduction of District Heating in such buildings and
areas is not as straightforward as it traditionally has been. Not least due to the fact that building codes tend to favour
on-site production of energy rather than District Energy. Despite this obstacle, the only two major urban development
projects in the municipality of Copenhagen, an area previously occupied by the Carlsberg Brewery and an old harbour
area, will both be supplied with District Heating and Cooling,
As previously mentioned, the Danish national policy aims at eliminating fossil fuels in heating by 2035. To achieve this target
a number of policies have to be brought in line with this ambition. The existing heat planning poses several constraints on
developments. A number of District Heating plants are, according to existing heat plans, obliged to use natural gas as a
main fuel. Since loosening this requirement would mean that many plants would abandon this taxed fuel, it would have a
serious effect on government revenue from energy taxation, and other sources of this revenue would have to be found.
From a political point of view, new or increased taxes are unpopular, so there is no obvious solution. The government has
postponed dealing with this challenge until after finalisation of an analysis into possible solutions due in 2015.

DENMARK
A general barrier for development of District Heating is the tendency to promote and focus on individual solutions and
to disregard the system approach. This is reflected in building codes and energy taxation (individual heat pumps being
favoured).
As the national policy aims at eliminating fossil fuels in District Heating by 2035 and since biomass is viewed as a limited
(in availability) as well as an interim fuel, the search is open for renewable energy sources that would deliver a sustainable
heat supply from 2035 onwards.
Heat pumps driven by renewable electricity are expected to provide a major input for District Heating, perhaps accounting
for around one third of heat supply by 2050.
Currently, three existing deep geothermal projects are in operation, all involving the use of heat pumps as temperatures
in Danish geothermal sources are too low for direct use in current systems.
The use of solar thermal in Danish District Heating systems is growing, particularly in smaller systems in areas where cheap
land is available near town and villages with District Heating systems. Many of these systems already have day-to-day heat
storage available due to their CHP installations. Some systems also develop seasonal storage capacity which may store
heat equivalent to up to 45% of the annual heat demand.
Waste-to-Energy technology is foreseen to provide a stable base load for heat production also towards 2050, perhaps
covering up to a quarter of the total annual heat production.
A large amount of industrial surplus heat is available, but often at low temperature which may need an upgrade in order
to facilitate use in District Heating.
Many of the projections for the future availability and use of fuels and energy for District Heating depend on the
developments in the electricity sector (availability of renewable electricity, prices etc.), on the taxation system as well
as on the District Heating systems’ possibilities in terms of temperatures and (seasonal) storage. There is much focus on
enhancing District Heating systems’ ability to incorporate low temperature heat supplies, adapt to low energy buildings
and interconnect with the electricity sector.

Gladsaxe Kommune is a municipality near Copenhagen in the capital region on the island of Zealand (Sjælland) in eastern
Denmark. The municipality covers an area of 25 km2 and has a total population of 66,693 inhabitants. The municipality
consists of several towns, but they have grown together in one urban cluster.
Until recently only 20% of the buildings in Gladsaxe was heated with District Heating, but that share is expected to triple
shortly with a new expansion of the supply area following a 2008 decision of the Gladsaxe municipal council. Almost 600
new connections of building estates, office and industrial buildings as well as individual houses have been or will be made
by the two companies responsible for supplying District Heating in the municipality. Construction started in 2011 and will
continue until 2017. So far 3,500 more homes are now heated via District Heating .
Solar thermal heat production in District Heating is booming in Denmark. Before the end of 2014 the installed collector
area has grown to 550,000 m2 and is expected to increase to 625,000 m2 before the end of 2015. Solar heat may supply
10-15% of the total heat demand in District Heating in 2015. One example is the town of Vojens where a 55,000 m2 solar
collector array will be combined with a 200,000 m3 seasonal heat storage in an old gravel pit (improved, sealed and
insulated for the purpose), which is expected to cover up to 45% of the heat demand. The storage is expected to deliver
heat well into the winter months.
The large gas-based CHP plant Skærbækværket supplies heat to 55,000 households in the central Triangle-area of Kolding,
Vejle and Fredericia. From 2017 two extra biomass boilers will add fuel flexibility to the plant by facilitating the use of
4-500,000 t/y of wood chips.
In Copenhagen, the Avedøre plant is the biggest CHP plant in Denmark and one of the most efficient in the world. Its
second unit, now rebuilt, has capacities of 585 MWe and 57 MWth and is ready to use 1.2 million t/y of wood pellets to
produce heat for 150,000 households in the Greater Copenhagen area.

DENMARK
2 HEAT MARKET


63%

District Heating 63% 64%
Natural gas 16% 17%
Electricity 5% 1%
Oil / Petroleum products 12% 2%
Renewables* 1% 2%
Heat pumps 1% 14%
Other 2% 1%
TOTAL 100% 100%

DENMARK

1% 2%
1%
District Hea1ng
12%
Natural gas
5%
Electricity
16% Renewables*
63%
Heat pumps
Other
3 DISTRICT COOLING
TOTAL DISTRICT COOLING SALES IN 2013: 4.7 TJ
Denmark has only recently seen development and growth in District Cooling. In Copenhagen in particular, the local utility
HOFOR has driven a significant development of District Cooling. Two smaller separate networks in the central part of
the city use cool water from the harbour as cooling source most of the year, supplemented by compressor cooling in the
summer period. The total cooling load for the two systems is 37 MW HOFOR has the city’s approval for three further
projects in and around the city centre, with a combined potential cooling load of 200 MW.
A small system with a cooling load of 3 MW is in operation in another part of Copenhagen and the city of Aalborg is also
considering developing District Cooling.

OF DISTRICT COOLING
Modern buildings in a warmer climate combined with demand for better indoor climate particularly in office and service
buildings drive the demand for cooling. The development of further systems clearly relies on having several working
examples of District Cooling, demonstrating the benefits of the technology and providing better understanding.
Recent legislative changes improving the conditions under which regulated District Heating companies, who operate
under the Heat Supply Act, can enter the commercial market for District Cooling have also led to further developments.

The main barrier to the expansion of District Cooling is financing. Municipalities, who mostly own and operate District
Heating systems in cities where District Cooling could find its biggest market, do not yet have the same financing
possibilities for District Cooling as they have for District Heating. The difference is upheld by law, to ensure a level playing
field between municipal District Cooling and privately established solutions in the commercial cooling market.

DENMARK

Frederiksberg Forsyning is owned by the municipality of Frederiksberg, which has 93,000 inhabitants. Frederiksberg is
situated in the centre of Copenhagen. Frederiksberg Forsyning is a multi-utility handling District Heating, District Cooling,
water supply, city gas (cooking gas) and sewage.
Frederiksberg Forsyning owns a 87 km heat distribution network of main pipelines, 63 km branch lines and 3,750 building
substations, mainly in apartment buildings. The network supplies 97% of all space heating in the municipality.
It took Frederiksberg Forsyning only two years to develop two new District Cooling systems, undoubtedly due to vast
experience with District Heating operations. Frederiksberg Forsyning was among the first in Denmark to introduce District
Cooling. First customers were supplied with cooling in the spring of 2014, almost the same time as the contract was signed
for District Cooling to Carlsberg Byen - a new city district on a former Carlsberg brewery site in the heart of the Danish
capital. The project is based on free-, compressor-, groundwater cooling, with a capacity of around 5 MW. It also involves
the use of two 2,000 m3 cold storage tanks.
4 COOLING MARKET
Little is known about the market for cooling in Denmark. Traditionally, building cooling has been little used for several
reasons, among which the relative cool Danish climate. Building codes have traditionally discouraged building cooling.
Cooling in residential buildings is uncommon, due to high taxes on electricity, which lead to high operating costs.
Using the principles introduced in the Ecoheatcool study1, the Danish Energy Agency estimates the theoretical cooling
need at 12 TWh/y. Due to the fact that it would not be economically viable to build cooling systems in the residential
sector, the potential for District Cooling is unlikely to be more than half of that (6 TWh/y). Ecoheatcool estimates that
27% of services sector buildings in the target area have cooling installed today and that the share may increase to 60%. A
similar share in Denmark would represent a potential of 1.5-3.3 TWh/y.
Assuming that 50% of this potential could be covered by District Cooling, the Danish Energy Agency calculates that,
compared to individual cooling systems, District Cooling could save 0.3 TWh of electricity and 1.1 PJ of fuel per year. Total
electricity consumption today is 35 TWh, with 840 PJ of fuel consumed per year and most of the savings would be due to
the use of free cooling.

The ratio of electricity used for comfort cooling in 2013 was: (2.478-2.292)/2.269= -0.08
The graph below may indicate a growing tendency to cool buildings in Denmark.
1 www.euroheat.org/ecoheatcool

DENMARK
Ratio of electricity used for comfort cooling
0.000
-‐0.020
-‐0.040
-‐0.060
Ra0o
-‐0.080
Linéaire
Linear (Ra0o )
(Ratio)
-‐0.100
-‐0.120
-‐0.140
-‐0.160
2001
2005
2007
2008
2009
2011
2000
2002
2003
2004
2006
2010
2012
2013

Source In TJ In TJ (in TJ)
Oil / Petroleum products 1,962 2,798 4,760
Coal and coal products 129,450 50 129,500
Natural gas 44,107 4,057 48,164
Renewables* 65,799 20,385 86,184
Waste 4,232 11,735 15,967
TOTAL 245,550 39,025 284,575

DENMARK

300,000
250,000
200,000 Waste
Renewables*
TJ
150,000
Natural gas
100,000 Coal and coal products

50,000
0

The share of CHP electricity production is largely determined by prices of electricity in the Nordic electricity markets.
Prices in the market have been falling due to the impact of increased production of renewable electricity (wind and
photovoltaics), not only in Denmark but across northern Europe. Where localised CHP plants in the 1990s were designed
to run around 4,000 hours a year, they often now only achieve 4-500 hours.
Generally speaking, thermal electricity production in Denmark has been in decline during recent years, as can be seen
from the illustration on the next page, mainly due to considerable growth in wind-based electricity production and a
decrease in total inland electricity production.

DENMARK
Electricity production by type of producer in Denmark 1990-2012
200
150
PJ
100
50
0
1990 1995
'95 2000
'00 2005
'05 2010
'10 2012
'12
Large-‐scale units, power only Large-‐scale CHP units
Small-‐scale CHP units Autoproducers
Wind & hydro
Source: Danish Energy Agency, Annual Energy Statistics 2013
The share of CHP in District Heating has also seen a decrease in recent years. From a peak in the period 1997 to 2006 with
a share of more than 80% of District Heating production, this has now fallen to around 72%. As electricity prices in the
market have been low, District Heating has increasingly had to resort to other heat sources such as boiler only production
on biomass or gas.
There are concerns in the energy sector for the status of CHP. Whereas thermal electricity production capacity is needed
as back-up for the intermittent renewable electricity production, prospects for a system ensuring availability of necessary
capacity are not clear. Moreover, the issue has a certain urgency as many of the localised CHP resources developed and built
in the 1990s are now up for renewal or scrapping. District Heating companies cannot wait for developments of capacity
markets or similar, as the responsibility for the heat supply forces them to see alternative heat capacities already now.

DENMARK
CHP share of thermal power and District Heating production in Denmark
100%
80%
60%
40%
20%
0%
1990 1995
'95 2000
'00 2005
'05 2010
'10 2012
'12
District Heating
District hea5ng Electricity
Source: Danish Energy Agency, Annual Energy Statistics 2013
Denmark counts 3,060 heating degree days per year based on a standard indoor design temperature of 21°C.

Denmark lies between the latitudes 55 and 57 and is characterised by a mixture of continental and marine climate. Since
it is small and flat, no significant regional climatic differences can be observed.

DENMARK
Danish District Heating Association (Dansk Fjernvarme)

Fjernvarmens Hus/House of District Heating, Merkurvej 7, 6000 Kolding, Denmark
Tel: +45 7630 8000
Fax: +45 7552 8962
www.danskfjernvarme.dk
Contact Person: Birger Lauersen
Email: bl@danskfjernvarme.dk

5,406MWth
TOTAL INSTALLED THERMAL
CAPACITY FOR HEAT
51%
PRODUCTION
230
OF DISTRICT HEAT
COMES FROM
DIRECT RENEWABLES
AND RECYCLED HEAT DISTRICT HEATING
SYSTEMS IN ESTONIA
ESTONIA
ÕNNE-LY REIDLA
ESTONIA
1 DISTRICT HEATING
KEY FIGURES
2013 2011 2009

Trench length in km for transport and distribution network (one way) 1,450 1,450 1,447
Number of District Heating systems* 230 230
2013 2011 2009

TOTAL 23,025 22,885 24,724

30,000
25,000
20,000
Services and other
TJ
15,000
Industrial sector
10,000 Residen:al sector
5,000
0
2013 2011 2009
Estonia - 2 COUNTRY BY COUNTRY / 2015 Survey

ESTONIA
1,600 30,000
1,400
25,000
1,200
Total sales (in TJ)

20,000
1,000
800 15,000
600
10,000
400
5,000
200
-‐0 0
2013 2011 2009
Total sales

2013 15.4 18.5
2011 15.4 18.5
2009 12.6 14.9
HEAT SALES TURNOVER

2013 23,025 15.4 354.6
2011 22,885 15.4 352.4
2009 24,724 12.6 310.3

ESTONIA
2013 2011 2009

In cogeneration
Natural gas 489 1.9 % 1,794 6.8 % 1,982 7.5 %
Peat 454 1.7 % 572 2.2 % 312 1.2 %
Solar and other 22 0.1 %
Others
Coal and coal products 61 0.2 % 40 0.2 % 85 0.3 %
Natural gas 7,865 29.9 % 8,137 30.9 % 9,968 37.8 %
Non-renewable waste** 909 3.5 %
Peat 278 1.1 % 372 1.4 % 935 3.6 %
TOTAL 26,294 100% 26,334 100 % 26,337 100 %
*includes wood pellets, wood chips, biomass and firewood

** non-biodegradable fraction of municipal waste in accordance with Art. 2e of the Renewables Directive

100%
90%
80%
70%
Other
60%
Direct Renewable
50%
Recycled Heat
40%
30%
20%
10%
0%
2013 2011 2009

ESTONIA
The most important fuel in heat production in Estonia is natural gas. In 2007, 47% of the heat was produced from natural
gas. In 2011 the percentage reached 37% and in 2013 the percentage further decreased to 32%.
Gas is followed by wood in District Heating generation. In 2007, 17% of the heat was produced from wood, with an
increasing 24% share in 2009 and 34% in 2011. Furthermore, shale oil accounted for 25% of the total fuel used for District
Heating in 2007. The share has constantly decreased reaching 15% in 2011.
A very important change has occurred in the use of heavy fuel oil. In 1999, heavy fuel oil accounted for 19.5% of District
Heating generation. Over the years the number has rapidly decreased, with under 1% being used in the last ten years.
The use of shale oil, light fuel oil and diesel remained quite stable. Milled peat, sod peat and firewood are also still used in
District Heating in Estonia. The percentage of firewood and peat has remained stable over the last ten years.

Estonia’s national strategy is to fully regulate the District Heating sector and its prices. Thus, from the point of view of
District Heating companies, there is no open market for District Heating. At the same time, a District Heating customer has
right to disconnect from the network without any penalties and use any local solutions for the production of heat.

In 2003, the Energy Act, that governed activities in different energy markets, was replaced with separate acts for electricity,
gas, District Heating and liquid fuels markets.
The District Heating Act entered into force on 1 July 2003. The Act determined the District Heating market as being subject
to regulation by the state. The ex-ante regulation was implemented to the heat price of any CHP plant (irrespective of the
size of the plant) if heat was supplied to the District Heating network, and to the end-user heat price of a District Heating
company if its annual heat sales exceeded 50 GWh. Since 2010 all District Heating prices are regulated. The main reason
for continuing with the regulation was the high relative level of District Heating prices compared to the household incomes
and the resulting high level of political interest in the issue. The District Heating Act defines the parties in the District
Heating market and their specific responsibilities and rights.
The District Heating Act established the definition of the “District Heating area”. The District Heating area is the area
within the borders of a municipality with a special building code. In the District Heating area all new buildings, with some
exceptions, are required to be connected to the District Heating network.
In 2007, feed-in tariffs were introduced in order to promote electricity production based on renewable energy sources
and CHP. The Electricity Market Act was amended in order to set a feed-in tariff of 0.05 Euro/MWh either for the electricity
produced by small fossil fuel fired CHP plants (up to 10 MWe) that are installed in order to replace existing District Heating
boiler(s) or for the electricity produced by larger CHP plants using waste, peat or residual gas from shale oil production as
fuel. In both cases the CHP plant should meet the requirements for high efficiency cogeneration. The higher feed-in tariff
(0.07 Euro/MWh) was introduced for CHP plants that use renewable fuels. Currently the government is considering the
option of reducing the feed-in tariffs for new CHP plants.

OF DISTRICT HEATING
Every municipality has right to establish a District Heating area as an area with a special building code. In the District
Heating area all new buildings, with some exceptions, are required to be connected to the District Heating network. That
enables the expansion of District Heating in towns to be maintained and creates a suitable load for CHP plants. The town
councils of Tallinn and Tartu established the District Heating areas covering all areas in their respective towns. Several
smaller municipalities also established a District Heating area in their main residential areas.
Estonia has a long history of District Heating. In small residential areas, District Heating is the most common way of heating
for the majority of inhabitants. A large number of micro-sized District Heating systems (a maximum ten heated buildings)
were established during the Soviet era and inhabitants of small residential areas have therefore become accustomed to
District Heating as a service.

ESTONIA
Through an amendment made to the Electricity Market Act in 2007, several feed-in tariffs for CHP-based electricity were
established. A special feed-in tariff is set for CHP plants replacing an existing District Heating boiler house. As a result , a
number of District Heating companies are exploring the option of installing a CHP plant in their main boiler plant.
The Estonian Power and Heat Association (EPHA) has an established position among Estonian energy industry stakeholders.
The majority of the District Heating companies in Estonia are active participants in the initiatives of the Estonian Power
and Heat Association. Estonia’s political leaders have been taking the opinions expressed by EPHA spokespersons into
consideration. The different EPHA working groups have a role in Estonia’s legislative processes.

The uneven distribution of CO2 cost among heat producers is to the detriment of District Heating companies with large
production units. Participation in CO2 trading is obligatory for units with a production capacity of 20 MW and more. When
large buildings or new areas are considering their source of heating, local boilers or small engines have a favourable
competitive position by comparison with a District Heating connection as small units do not have CO2 cost in their
production cost.
The gap between the purchasing power of customers and the world market fuel prices makes it less likely that the old
District Heating systems can be reconstructed. District Heating companies in Estonia are forced to postpone part of the
reconstruction investments in order to keep the price of heat affordable to the customer. Estonia is an open economy and
thus imported fuels such as natural gas or heavy fuel oil are sold at world market prices. The prices of local fuels such as
peat, wood chips or shale oil are also influenced by the export demand to other EU countries. Due to the large volume of
exports of peat and wood chips to the neighbouring Nordic countries, the domestic trade prices of local fuels are set by
the export prices and are connected to the world market prices in that way. At the same time, the low purchasing power
of customers leads to heat prices where the share of fuel is large and this leaves less room for additional capital cost.
The direct price regulation of District Heating has abolished economic incentives for entrepreneurs. The operation of
companies in the open market is driven by the choice between different economic benefits and the anticipated results
of taken actions. The regulation method used in Estonia has balanced the economic benefits of different actions. The
outstanding economic benefit of an open market is considerably cut in the regulated Estonian heat market. The obligation
to sell heat at the regulated price hinders the supply of industrial surplus heat to the District Heating system. Industrial
entities regard the approval process too resource-demanding compared to the added value achieved.
2 HEAT MARKET
HOUSEHOLDS SERVED BY DISTRICT HEATING
Number of households served by District Heating 370,000

Total number of households 597,300

ESTONIA
Share of citizens (households) served by District Heating

Share of ci+zens (households) served by District
Hea+ng
62%
2013 2011 2009

million m 2
31 30.9 30.5
Source In %
Natural gas 3%
Electricity 2%
Renewables* 43%
TOTAL 100%

ESTONIA
District Hea1ng
43% Natural gas
Electricity
52%
Renewables*
1%
1% 3%
For single family buildings, the same heat source is commonly used for space heating and domestic hot water. A boiler
is used either for solid, liquid or gaseous fuel. In new building areas, which are mostly located outside towns, the most
common fuel used is natural gas. If the gas network is not available, then light fuel oil is the most preferred option. Wood
pellet boilers are not very common but their numbers are increasing. A new living space usually includes a fireplace with
heat recovery functions.
The use of heat pumps has considerably increased in recent years. As a result, Estonia has moved up to third place in the
world in terms of its number of heat pumps per capita. The most common type used is the air-air heat pump due to its low
investment cost. The air-air heat pump is used in combination with the fireplace and electric water heaters. The next most
common type of heat pumps is the ground-water one, consisting of an underground grid of pipes for collecting heat. The
new entrants on the market are the air-water heat pumps, being able to better integrate with existing heating systems.
For new buildings with a small number of flats, the most common heating solution is a separate heat source for every flat
(as in case of single family houses). The largest building known with individual gas boilers for space heating and domestic
hot water has 24 flats. New buildings of such size usually have one heat source - either a boiler (in rural areas) or a
connection to the District Heating.
In smaller towns, the limited number of older apartment houses that are connected to District Heating have space heating
from the District Heating network and domestic hot water from separate electric boilers.


ESTONIA

Source In TJ In TJ (in TJ)
Peat 454 444 898
Natural gas 489 479 968
Renewables* 4,971 4,862 9,833
Other 3,814 3,730 7,544
TOTAL 9,728 9,515 19,243

25,000
20,000
15,000
Other
TJ
Renewables*
10,000 Natural gas
Peat
5,000
0

After the adoption of the amendment to the Electricity Market Act with regard to the feed-in tariffs for CHP based
electricity (see the chapter on energy market development), several new CHP projects have started up. In 2007, there
were 16 CHP plants in Estonia. Technologies based on the back-pressure steam turbine on the condensation turbine as
well as internal combustion engine turbine were used in energy production.
In 2009, two large CHP plants began operation in Tallinn and Tartu and another one in Pärnu in 2010. All three plants have
a capacity of 25 MWe and 50 MWth and are designed to use local solid fuels such as peat and wood chips. The generated
heat is supplied to the District Heating systems in the respective towns.
In 2013, the construction of a waste-fired CHP plant began in Tallinn (17 MWe). Several smaller District Heating companies
have started the installation of gas engines or are considering doing so. The government of Estonia also established in
2007 the definition of “high efficiency cogeneration” in accordance with Directive 2004/8/EC.

ESTONIA
The number of turbines has remained the same in the period 2008 to 2013. In 2008, there were 40 turbines and 39 in 2013.
More plants have started to use condensation turbines and internal combustible engine turbines. Heat produced from
CHP plants amounted to 2,535 GWh in 2008 and increased to 3,423 GWh in 2010. In 2013, heat production amounted to
3,395 GWh.
The maximum electrical capacity of Estonian CHP plants was 390 MW five years ago and 460 MW in 2013. The thermal
capacity of CHP plants has remained stable over the years with an average of 1,500 MW. In the national development
plans, heat production in CHP should double by 2015-2020. New CHP plants would work mostly on renewable fuels.

USE OF BUILDINGS
NUMBER OF HEATING DEGREE DAYS
The period when heating is needed in Estonia usually starts at the beginning of October and lasts until the beginning of
May. The consumer (housing association) can also change the heating period. The average number of heating days in
Estonia is 220.
In Estonian building norms, the indoor temperature should be 22°C. The temperature may vary from 19°C to 25°C
depending on the building class. A government regulation stipulates that, in buildings heated by the District Heating
system or from local boiler houses, the indoor temperature may not fall below 18°C.

The most important factor that influences Estonia’s climate is the Baltic Sea. In the territories next to the sea, there is a
lot of precipitation and little temperature fluctuations. In the mainland there is little precipitation and bigger temperature
fluctuations. Estonia is quite small (45,227 km2), which is why the regional climate variations are not very significant.
In Estonia the average annual temperature ranges from 4.3°C to 6.5°C. The temperature in winter may decrease to -30°C.
In summer, the highest temperatures reach 30°C. If the climate continues to warm up, there will be significant changes
in the length of the seasons and in Estonia’s nature. The most important change would be that spring and autumn will
lengthen at the expense of winter.
AVERAGE ENERGY USE OF BUILDINGS PER SQUARE METER IN 2013: 200 kWh/m2
Estonian Power and Heat Association

36 Punane street, 13619 Tallinn, Estonia
Tel: +372 6556 275
Fax: +372 6556 276
www.epha.ee
Contact Person: Aime Allikmets
E-mail: epha@epha.ee
Author of this chapter: Õnne-Ly Reidla

50%
85%
OF CITIZENS
ARE SERVED BY
DISTRICT HEATING
OF DISTRICT HEAT
COMES FROM
DIRECT RENEWABLES
AND RECYCLED HEAT
23,270
MWth
TOTAL INSTALLED
DISTRICT HEATING
CAPACITY
FINLAND
ANTTI KOHOPÄÄ
FINLAND
1 DISTRICT HEATING
KEY FIGURES
2013 2011 2009

13,850 13,060 12,200
170 t/GWh 198 t/GWh 206 t/GWh
heat generated
Number of District Heating systems* ca. 400 ca. 400 ca. 400
2013 2011 2009

TOTAL 114,160 112,290 116,690

140,000
120,000
100,000

TJ
Residen<al sector
40,000
20,000
0
2013 2011 2009
Finland - 2 COUNTRY BY COUNTRY / 2015 Survey

FINLAND
16,000 140,000
14,000 120,000
12,000
100,000
Total sales (in TJ)

10,000
80,000
8,000
60,000
6,000
40,000
4,000
2,000 20,000
-‐0 0
2013 2011 2009
Trench length in km for transport and distribu@on network (one way)
Total sales

2013 16.3 20.2
2011 14.8 18.2
2009 12.8 15.6
HEAT SALES TURNOVER

2013 114,160 16.3 1,860.8
2011 112,290 14.8 1,661.9
2009 116,690 12.8 1,493.6

FINLAND
2013 2011 2009

In cogeneration
Natural gas 19,136 15.2 % 24,156 19.7 % 28,080 22.6 %
Peat 13,428 10.7 % 17,964 14.7 % 16,920 13.6 %
Waste** 2,848 2.3 % 180 0.1 % 2,520 2%
Renewable waste*** 238 0.2 % 192 0.2 % 150 0.1 %
Heat pumps (output) 1,705 1.4 % 612 0.5 % 1,195 1%
Industrial surplus heat 2,526 2% 3,420 2.8 % 1,936 1.6 %
Others
Natural gas 9,381 7.5 % 9,752 8% 9,785 7.9 %
Non-renewable waste**** 941 0.7 % 1,385 1.1 % 1,613 1.3 %
Peat 3,443 2.7 % 4,487 3.7 % 4,044 3.3 %
TOTAL 125,847 100 % 122,515 100 % 124,134 100 %

**”waste” in cogeneration includes both biodegradable fraction and non-renewable waste incl. all other fuels not mentioned (also non-
specified energy sources)
***biodegradable fraction of municipal waste in accordance with art. 2e of the Renewables Directive
**** non-biodegradable fraction of municipal waste in accordance with art. 2e of the Renewables Directive incl. all other fuels not mentioned
(also non-specified energy sources)

FINLAND

100%
90%
80%
70%
60% Other
40% Recycled Heat

30%
20%
10%
0%
2013 2011 2009
Policy-makers have favoured renewable energy sources in the last ten years. That means that the use of renewable energy,
especially wood chips, in District Heating production has increased steadily. The share of wood and other CO2 neutral
energy sources is now 30% while ten years ago it was under 10%. At the same time, the share of recovered heat, especially
from combined heat and power plants, has been between 70% and 80%.
During the first decade of the 21st century, natural gas and peat were also favoured by policy-makers. The taxation on
these fuels was significantly lower compared to other fossil fuels. In 2011, the government introduced an energy tax
reform containing major increases in tax levels for all fossil fuels. The rise was extremely high for natural gas. These tax
increases together with low emission prices, low electricity prices and high gas prices have decreased the use of natural
gas in combined heat and power production as well as in heat-only production.
The taxation regime for peat has been unstable. The tax level has been increased several times. However, some increases
have been withdrawn before coming into force. At the same time, the authorisation of new peat lands for energy harvesting
has become more difficult. Therefore, the use of peat in District Heating and CHP production has substantially decreased.
In the coming years, municipal waste is expected to become an important source for District Heating. Several investment
projects are in progress or recently started operation.

FINLAND

The market share of District Heating is 38% in residential buildings. In commercial and public buildings, which often are the
most interesting customers for District Heating, the market share is 66%. These market shares are very high in a sparsely
populated country such as Finland. In many cities, the market share is over 90%. High regional differences in market shares
and future development plans are typical for the District Heating business in Finland.
On average, District Heating sales have increased steadily by 1% to 2% per year and the existing District Heating potential
is well exploited. For the time being, urbanisation has enabled the steady growth of the District Heating business. It is
estimated that after 2020 the urbanisation will not guarantee the growth of the District Heating business anymore, since
the heat demand of buildings will decrease. Despite the decrease in heat demand, the market share of District Heating is
expected to grow in the future.
The potential for District Cooling is on the rise and in some areas the development has been fast. Simultaneously with the
decreasing heat demand of buildings, the cooling demand increases. Where District Cooling is available it has become a
real option for customers. The development has created an opportunity for District Cooling companies as well. National
statistics or studies on cooling demands have not been carried out so far.
On the other hand, the increasing demand for cooling and customers’ willingness to pay for comfort has created a new
challenge for the traditional District Heating business. If a District Heating company does not provide District Cooling or
any other type of cooling, ground-source heat pumps get the competitive edge. Traditional District Heating cannot provide
both a heating and cooling solution for the customer, whereas heat pumps can.
There ere no quantitative national targets for District Heating or District Cooling. The promotion and development of
District Heating and Cooling is based on the equal treatment of different technologies on the heating market. Obligations or
supportive measures as well as quantitative targets are considered to be unnecessary when barriers have been removed.
The role of District Heating could be essential in delivering the EU 2050 climate and energy objectives. Unfortunately, in
existing EU policies the potential of District Heating is not fully recognised. At the moment, 75% of the heating of residential,
commercial and public buildings is outside of the EU Emission Trading System (ETS). In Finland, the number is 34% of
which 26% is accounted for by renewable energy sources. Unfortunately, the existing EU energy efficiency and renewable
energy policies do not create incentives to invest in District Heating or District Cooling. The policies for energy efficiency
and renewable energy sources are very sectorial and do not always lead to cost-optimal carbon reductions at EU level.
Stronger focus on carbon reductions inside and outside of the EU ETS would deliver system-level energy efficiency as well
as renewable heating and cooling. By replacing individual fossil fuel based heating with District Heating, which is included
in the EU ETS, emissions would decrease by 100% in every single case.
In Finland, there is no specific heat strategy in place. The Finnish parliamentary Climate and Energy Committee as well
as the national energy development scenarios recognise combined heat and power production and District Heating. The
recognition of the cooling sector needs is still much weaker in comparison, however the interest for this sector is expected
to increase as it grows in importance.

The Finnish heating market has always been liberalised, so there are no specific regulations for District Heating. Of course,
several legal acts have an implicit or direct impact on District Heating.
In Finland all business activities are supervised by general competition legislation and consumer protection legislation.
Based on general competition legislation, the Finnish Competition and Consumer Authority considers District Heating
to be in a dominant market position in relation to their existing customers. This sets out some requirements for District
Heating companies. A misuse of the dominant market position is forbidden by the competition act. For instance it is
forbidden to bind product prices, dump customers with too low prices or have unreasonable pricing. Pricing must be
sufficiently cost-related, transparent and similar customers must be treated in the same way. Despite these requirements,
District Heating pricing is not regulated and companies are free to decide on their prices and pricing systems.
The main rule is that customers are not obliged to connect to District Heating networks and therefore can freely choose
their heating solution. Based on the Finnish Land Use and Building Act, municipalities have the possibility to oblige
customers in a particular area to join the network. The provision does not apply to existing buildings and the act also

FINLAND
contains a provision for customers to be exempted from such an obligation. If a municipality uses this obligation, an
individual customer constructing a building which uses renewable energy sources or is more energy efficient, may easily
be exempted from the obligation. On the other hand, District Heating companies have no obligation to connect customers
to their networks, which is an important characteristic of liberalised markets.
From the beginning of 2015, the act on energy efficiency imposed some obligations to District Heating companies. These
concern metering, billing of District Heating and reporting of energy use to customers. However, these new obligations do
not actually change the prevailing practice in District Heating companies. In addition, the act also contains provisions on
cost benefit analysis on CHP and waste heat utilisation as well as energy auditing.
In addition, environmental protection regulations, land use and building regulations as well as tax regulations have implicit
impact on District Heating companies.

OF DISTRICT HEATING
In Finland there is a long tradition of District Heating and CHP. The District Heating business is mature. District Heating is a
competitive heating solution in the liberalised heat market so there is no need for policy instruments driving or favouring
its expansion. However, there is a need for the further development of the District Heating business.
Increased competition in the heating market and the availability of alternative technical solutions and services are the
biggest driving forces. When alternative solutions and services are available for customers and they become more and
more competitive, the products and services offered by District Heating companies must also continue to improve.
Long tradition, culture and leadership of markets are both burdens and opportunities. District Heating companies have
been active in developing the technical performance of systems. The long tradition of the District Heating business helps
build the District Cooling business. In other words, District Heating companies have been technically orientated. At the
same time, District Heating companies have been quite passive to develop their activities from a customer perspective.
Despite the passiveness of District Heating companies, there is potential to develop more customer-oriented solutions
and services to create more value for customers. Therefore, many District Heating companies have taken a more active
role in service and business development as well as customer relation management.
All policy instruments (for example taxation, support mechanisms, legislation) should guarantee a level playing field for all
technologies and heating solutions. At the moment, this target is reached at national level.

The general consensus is that at the moment there are no institutional barriers for District Heating, District Cooling and
CHP in Finland. Of course, many policies and acts at the EU or national level could create barriers for District Heating and
Cooling and CHP. The most important policies are climate and energy policy, building and land use regulations as well as
taxation.
District Heating has to be cost-effective in order to exist in any given area. Almost all areas with substantial heat load already
have a CHP plant. Under the current technological solutions, the heat loads are well utilised under District Heating all over
the country. More technology development is needed in order to lower the investment costs of less densely populated
areas. However, additional smaller size CHP plants (<10 MWe) could be built in 40-50 places, after the technology develops
enough to enable the practical operation and profitability of such plants.
The development of the whole energy system is interesting from the District Heating and Cooling and CHP point of view.
The future development of policies and electricity markets may create barriers for District Heating and CHP. When 70-
75 % of District Heating is produced in cogeneration, the future of electricity markets is important. The role of CHP will
be different when the variable renewable electricity, such as wind power or PV, production in the markets increases. If
investments into electricity production are based on subsidies, CHP may be at risk of declining. If investments are market-
based and different technologies are on a level-playing field, CHP and District Heating are considered as efficient solutions.
In the future, the biggest challenge for District Heating is to remain in a good position in the heating market. Typically, all
market leaders face challenges maintaining their position for many reasons. All competitors would like to have a share of
profitable markets and District Heating, as a wealthy business, has had the tendency to be self-satisfied and rest on its laurels.

FINLAND
In principle, Finnish District Heating systems are flexible and can deliver heat from different sources depending on which
source is the most cost-efficient. Market conditions will define which technologies are to provide heat in the coming
decades. Central factors are the prices of different fuels and electricity as well as emissions. Taxes and other policy
instruments also have an impact on the technology selection. In addition, the availability of fuels and technologies
influences the District Heating production mix.
At the moment the use of biomass is on the rise because it is a cost-efficient way to replace fossil fuels and reduce carbon
emissions in District Heating. Large investments in Waste-to-Energy plants are in progress or some have recently started
operations. When all these plants are in operation, the share of waste in District Heating production will be considerable.
Industrial surplus heat is utilised in Finland. Surplus heat may have a significant role at local level. The technical potential
is much bigger than the current use level, so it is estimated that the role of surplus heat as a District Heating source will
be higher in the future. In 2014, the Finnish Energy Industries studied the level of interest into small scale District Heating
production and small scale surplus heat utilisation. The survey was carried out among customers and District Heating
companies. It shows that the interest level is high but it must be beneficial for a producer, a District Heating company and
existing District Heating customers.
Large scale heat pumps are a solution for the production of both heating and cooling. In Finland, some are in operation
already. At the moment, electricity prices are so low that heat pumps are attractive at smaller and larger scale. In the
future, the role of large scale heat pumps can be bigger in District Heating and Cooling production.
The main challenge for solar thermal energy is its low capacity value. Solar heat is not available when the heat is mostly
needed. Relatively high investment cost combined with a small annual share of heat in the District Heating system make
solar heat costly. This decreases the attractiveness and profitability of solar heat as far as there are other carbon-neutral
or renewable sources available.

Mäntsälän Sähkö is an energy company in the small town of Mäntsälä located in southern Finland. Mäntsälän Sähkö
produces, distributes and sells electricity and District Heating for customers. In addition, it distributes and sells natural gas
as well as offers energy services for customers. The District Heating sales of Mäntsälän Sähkö is 40 GWh annually and they
serve approximately 200 District Heating customers. So far, Mäntsälän Sähkö has been using natural gas and a small share
of fuel oil in the District Heating production.
In 2014, Mäntsälän Sähkö announced a partnership with a search engine company Yandex. Yandex is investing in a data
centre located in Mäntsälä. In the first stage, the capacity of the data centre will be 10 MW and the planned total capacity
is 40 MW. The purpose of the partnership is to recover the heat from the cooling of the data centre and feed the recovered
heat to the District Heating network of Mäntsälän Sähkö. At the same time, Yandex will have a more energy efficient data
centre and they will gain additional income from heat sales.
Large data centres generate huge amounts of heat which must be cooled out from the process. Often heat from data
centres is wasted. That is not the case in Mäntsälä. Yandex will invest in the heat recovery equipment and they will sell the
heat to Mäntsälän Sähkö. Mäntsälän Sähkö will upgrade and deliver the heat to District Heating customers through their
network and replace natural gas in District Heating production.
In the first stage, the share of recovered heat will be 50% of the total annual heat sales. In future, the share will be close
to 100%, if Yandex enlarges the data centre as planned. Replacing natural gas in District Heating production reduces
CO2 emissions by 40%. In addition, the use of recovered heat reduces the District Heating price for final customers and
improves the competitiveness of District Heating in Mäntsälä.
The partnership between Yandex and Mäntsälän Sähkö is an excellent example of how a relatively small and local District
Heating company and an international service company can cooperate and create win-win solutions. The investment is
profitable for both sides and beneficial for the District Heating customers.

FINLAND
2 HEAT MARKET
TOTAL HEAT DEMAND FOR SPACE HEATING IN THE RESIDENTIAL SECTOR (2013): 198,500 TJ


50%
2013 2011 2009

million m2 277 266 256

FINLAND
Source In %
Natural gas 1%
Electricity** 28%
Renewables* 17%
Heat pumps 9%
TOTAL 100%
**Electric heating includes direct electric heating, electric storage heating, additional heating and floor heating by electricity, electricity used by heat
pumps, heating of domestic water by electricity, electric sauna stoves and electricity consumed by heating systems and heat distribution equipment.
9%
District Hea2ng
17% 38% Natural gas
Electricity**
7% Renewables*
Heat pumps
28%
1%
MAIN HEATING SOURCE IN NEW BUILDINGS BUILT IN 2013, SHARE CALCULATED ACCORDING
TO BUILDING VOLUME
Source In %
Electricity** 12%
Renewables* 3%
Heat pumps 29%
Other 2%
TOTAL 100%
*includes wood pellets, wood chips, biomass, firewood, geothermal, solar thermal, and wood used in sauna stoves

FINLAND
District Heating dominates urban communities, apartment buildings, public buildings and business premises. The market
share of District Heating is 38%1 of the existing residential buildings and 46% of all building stock. 53% of the residential
buildings constructed in 2013 are using District Heating as primary heating source.
Electric heating is popular in single family houses, though the growing number of heat pumps is diminishing the share of
direct electric heating at a considerable pace. The share of oil heating in single family houses is diminishing as well. The
third biggest heating source is fire wood, which is widely used as a supplemental heating source in single family houses
and in the sparsely populated country side.
3 DISTRICT COOLING
KEY FIGURES
2013 2011 2009

Total District Cooling sales (in TJ) 609 453 285
96 77 58
Available District Cooling storage (in TJ) 0.69 0.69 0.43
Development of installed District Cooling capacity (in MWth)

Development of installed District Cooling capacity (in
MWth)
250
200
150
MWth
100
50
0
2013 2011 2009
1 The Finnish statistics on heating sources also include electricity consumed by heat pumps, sauna stoves and heating related devices as well
as fire wood used in sauna stoves.

FINLAND
Development of District Cooling sales (in TJ)

700
600
500
400
TJ
300
200
100
0
2013 2011 2009
District District Cooling

Cooling trenchlength
trench length development (one way
development in km)
(one way in
km)
120
100
80
km
60
40
20
0
2013 2011 2009
Available District Cooling storage (in TJ)

0.8
0.7
0.6
0.5
TJ
0.4
0.3
0.2
0.1
0
2013 2011 2009

FINLAND
2013 2011
Source In % TJ In % TJ
Compression chilling 7.8 % 3.65 8% 2.8
Absorption chilling 17.1 % 8.04 22 % 7.7
Free Cooling 26.3 % 12.38 39.7 % 13.9
Heat pump 48.8 % 22.94 30.3 % 10.6
TOTAL 100 % 47.01 100 % 35.00
DISTRICT COOLING DEVELOPMENT (2009-2013)

One of Europe’s most rapidly increasing District Cooling sectors is in Finland. From 2008 to 2013, the use of District Cooling
has doubled.
The connected District Cooling capacity has increased from 117 MW in 2009 to 205 MW in 2013. The production capacity
consists of heat pumps, absorption chillers, free cooling and compressors. The storage capacity has increased from 39 MW
to 69 MW in the same time period. Sold energy increased from 79,000 MWh to 170,000 MWh.
District Cooling customers are mainly public and service buildings (for example, hospitals, new office buildings and
shopping centres). Important customer groups are data centres as well as residential buildings. During the last few years,
many residential buildings have been connected to District Cooling. So far, the share of these is relatively small but in the
future the importance of this customer group is expected to increase.
There are eight companies offering District Cooling in Helsinki, Turku, Heinola, Lahti, Espoo, Tampere, Lempäälä and Pori.
In addition, there are companies assessing the possibility of offering District Cooling in future.

OF DISTRICT COOLING
District Cooling is expected to further develop in the coming years. In the Strategy for the District Heating Sector2, the
cooling demand is identified as one of the big changes in the operating environment and markets. Therefore energy
companies will develop both district and individual cooling solutions at the moment. Especially District Heating companies
operating in very densely populated areas are interested in District Cooling. Companies operating in thinly developed
areas must normally find other solutions to satisfy the cooling demand of customers.
The commercial profitability is a necessity for the development of the cooling business. Therefore, District Cooling
is competitive in densely build areas and in areas where there is a high demand for cooling. For other areas, energy
companies must normally develop other solutions. Every potential customer has the free choice to join the system or
choose an alternative cooling solution. District Cooling has to be the best solution for every potential customer. The
price is a key factor when building owners choose their cooling systems, but there are some other benefits related to
District Cooling as well. The need for space, maintenance and other operational activities related to building specific
production will disappear, as soon as a building is connected to a District Cooling system. District Cooling is a cost-efficient
way to improve energy performance of buildings. Also, the environmental impact of District Cooling is remarkably
lower compared to building-specific cooling systems. The investment and operation costs are competitive compared to
conventional compression chillers. Based on the experiences in Helsinki, life-cycle costs of District Cooling are lower
compared to building-specific cooling systems, when all costs are taken into account.
Moreover, an important advantage of District Cooling is the possibility of utilising District Cooling and Heating networks
combined by capturing excess heat from various sources and reusing it as a heat source in District Heating systems.
District Cooling should be able to compete with other solutions with its natural advantages. There are no policy instruments
especially favouring expansion of District Cooling.
2 http://energia.fi/sites/default/files/kaukol_strategia_eng_2410.pdf

FINLAND

There are no structural barriers for District Cooling. District Cooling has to be commercially profitable. The risk of the
investment can be high due to the relatively long payback period. The greatest barrier for District Cooling is still the lack
of knowledge related to costs of alternative cooling solutions. The cost of cooling is very rarely taken into account, let
alone estimated or evaluated. There are no comprehensive and reliable studies about the cost of cooling. This information
is desperately needed in order to create awareness of the total life-cycle costs and the environmental impact of the
different cooling solutions.
National heat taxation does not support the use of waste heat for absorption. When heat that otherwise would be wasted
is used as a fuel for absorption, relatively high taxes (in case of fossil fuels or peat) have to be paid. When heat is wasted
but not used, no tax has to be paid. This taxation system supports the use of electricity for cooling and results in higher
primary energy demand, as well as higher CO2 emissions than without it. For example, the tax for absorption cooling based
on coal CHP is more than 60% of the District Cooling energy price.
The electricity taxation does not support District Cooling in data centres. If a data centre is cooled by an individual
solution, the data centre operator is entitled to a lower electricity tax rate. When data centre uses District Cooling, no one
is entitled to a lower rate and the District Cooling producer has to pay higher rates of electricity used in District Cooling
production. This is a clear market distortion and extra burden.
SHOWCASE DISTRICT COOLING SCHEMES

Fortum is one of the biggest District Heating companies in Finland and it operates for instance the District Heating network
in the city of Espoo. Fortum’s operating environment in Espoo is quite different from many European cities because the city
structure is very scattered. In Espoo there are several small centres which is a challenge for the District Cooling business. It
is basically impossible to construct a continuous District Cooling network because of dispersed cooling demands.
Despite these challenges, Fortum develops cooling solutions for its customers. At the moment, it seems that several
separate cooling networks as well as individual cooling solutions are developed in Espoo. The use of surplus heat from
cooling and feeding it into the District Heating network is common for all solutions. In future, networks and solutions may
be connected if the city development makes that possible.
For customers located in the area of Tapiola, Fortum produces cooling by a large scale heat pump and delivers it through
an areal cooling network. The Suomenoja-Matinkylä area is located next to the large heat pump plant which will capture
heat from sewage water. The same heat pumps will be used for District Cooling production. In addition, they can use free
cooling in that area. In the Finnoo area, which is in the city planning process at the moment, Fortum also plans to use
surplus heat from buildings through a District Cooling network.
In addition, Fortum develops together with their customers individual cooling solutions. At the moment, there are two
different business models available. In the first model, the customer invests in the cooling production equipment and
Fortum buys the surplus heat from the customer. In the second model, Fortum invests in individual cooling solution,
sells cooling energy to the customer and uses the recovered heat in the District Heating network. From the customer
perspective, this model does not differ from District Cooling.
Additionally, Fortum studies new areas and opportunities for District Heating and Cooling all the time. These examples
show how a District Heating company may provide cooling for customers despite the operating environment not being
the most favourable.
4 COOLING MARKET
No national surveys have yet been carried out, therefore no statistical data is available.
RATIO OF ELECTRICITY USED FOR COMFORT COOLING: -0.17

FINLAND


Peat 25,518 14,845 40,363
Natural gas 42,531 23,058 65,589
Renewables* 48,854 182,826 231,681
Waste 3,607 3,433 7,040
Other 1,782 6,165 7,946
TOTAL 173,769 237,544 411,313

450,000
400,000
350,000
Other
300,000
Waste
250,000 Renewables*
TJ
Natural gas
200,000 Peat
150,000
100,000
50,000
0
in TJ in TJ in TJ

FINLAND
CHP HEAT AUTO-PRODUCTION IN INDUSTRIAL PROCESSES (OUTSIDE DISTRICT HEATING): 157,210 TJ

From 2008 to 2013 no major changes occurred in electricity production. The Finnish electricity system is an integral part
of the Nordic electricity market. The biggest variations in the Nordic market are caused by hydro power whose production
depends on the hydrological situation in Sweden and Norway particularly. This reflects on the import and export of
electricity. Moreover, the electricity import from Russia has changed in past years. Wind power in the Nordic market has
increased and will continue to increase as well. So far, these changes have had an impact on condensing the production of
electricity while the production of CHP has been steadier.
On average, the share of CHP in domestic electricity production has been 36 % over past years. The share of CHP has
remained stable with the exception of 2009, when heavy industry suffered recession and industrial CHP production
decreased. At the same time District Heating-related CHP production remained at the previous level.
Since 2012 the amount of CHP production has decreased for several reasons. The most important reason is the low
market price of electricity caused by the good hydrological situation in the Nordic countries. At the same time, the price
of natural gas and taxes increased rapidly and therefore the profitability of combined cycle power plants declined. The
price development of natural gas together with low emission and electricity prices and low coal prices made coal-fired
CHP plants more profitable.
The declining price development of electricity together with low emission prices makes heat-only boilers in District Heating
production more attractive. The first large scale investments in biomass-based heat-only production have already taken
place in Finland. These single investments are not reflected into statistics yet. If the development continues and District
Heating actors start to invest in heat-only production instead of CHP, that will surely have an impact on the share of CHP
production.

USE OF BUILDINGS
NUMBER OF HEATING DEGREE DAYS: 3,900 TO 6,400

Finland is located between the latitudes 60 and 70. The climate is a mixture of continental and maritime.
Since Finland is located in the zone of prevailing westerly winds where tropical and polar air masses meet, weather types
can change quite rapidly, particularly in winter. Weather in Finland depends very much on the prevailing wind direction
and on how weather disturbances, i.e. low and high pressure systems, are situated. The January mean temperatures in
the period from 1981 to 2010 were -4°C in the southern part (Helsinki) and -14°C in the northern part (Sodankylä). The
July mean temperatures during the same period were 18°C in the south (Helsinki) and 14°C in the north (Sodankylä). In
addition, the differences between days, different locations and even within 24 hours may vary considerably.
AVERAGE ENERGY USE OF BUILDINGS PER SQUARE METER IN 2013: 125 kWh/m2

FINLAND
Finnish Energy Industries

POBox 100, FI-00101 Helsinki, Finland
Visiting address: Fredrikinkatu 51-53 B, 5th floor, Helsinki, Finland
Tel: +358 9530520
Fax: +358 953052900
www.energia.fi
Contact Person: Antti Kohopää

501
DISTRICT HEATING
SYSTEMS
59%
IN FRANCE
669MWth
TOTAL INSTALLED
OF DISTRICT HEAT DISTRICT COOLING
COMES FROM CAPACITY
DIRECT RENEWABLES
AND RECYCLED HEAT
FRANCE
JULIE PURDUE
AND ANTOINE HOCHAR
FRANCE
1 DISTRICT HEATING
KEY FIGURES
2013 2011 2009

3,725 3,644 3,321
Average CO2 emissions per GWh of district heat
162 t/GWh 180 t/GWh 190 t/GWh
generated
2013 2011 2009

TOTAL 86,112 78,502 89,719

100,000
90,000
80,000
70,000
TJ

30,000
20,000
10,000
0
2013 2011 2009
France - 3 COUNTRY BY COUNTRY / 2015 Survey

FRANCE
4,000 100,000
3,500 90,000
80,000
3,000
70,000
Total sales (in TJ)

2,500 60,000
2,000 50,000
1,500 40,000
30,000
1,000
20,000
500 10,000
0 0
2013 2011 2009
Total Sales

(in TJ) Price (in EUR/GJ excl. VAT) (in Million EUR)**
2013 86,112 19 1,634
2011 78,502 18.8 1,472
2009 89,719 16.7 1,500
** Heat sales turnover calculated with a simplified method as a product of the first and second column

FRANCE
2013 2011 2009

In cogeneration
Natural gas 17,939 17.2 % 19,530 22.4 % 22,162 23.5 %
Waste** 464 0.4 %
Geothermal 3,762 3.6 % 2,934 3.4 % 2,891 3.1 %
Solar and other 1,620 1.5 % 1,667 1.9 % 1,325 1.4 %
Renewable waste*** 26,176 25 % 22,849 26.2 % 23,328 24.7 %
Industrial surplus heat 817 0.8 % 1,087 1.2 % 1,019 1.1 %
Others
Natural gas 27,846 26.6 % 20,444 23.4 % 22,626 24 %
Oil and petroleum products 5,234 5% 5,443 6.2 % 8,932 9.5 %
TOTAL 104,562 100 % 87,310 100 % 94,452 100 %

**includes both biodegradable fraction and non-renewable waste

100%
90%
80%
70%
60% Other
40% Recycled Heat
30%
20%
10%
0%
2013 2011 2009

FRANCE
FUEL USE FOR DISTRICT HEATING District

OVER THE LASTHea.ng
TEN YEARSfuel mix
District Heating fuel mix
District
District Hea.ng fuel m ix
District HHea.ng
ea.ng ffuel
uel mmix
ix
35,000
Others
30,000
35,000 Renewables and
35,000
25,000
35,000 recovered energy
Others
Natural
Others gas
30,000
30,000 Others
20,000
30,000
GWh
Renewables
Coal and
Renewables
Renewables aand
nd
25,000 recovered energy
25,000
15,000
25,000 recovered
recovered e
e nergy
nergy
Natural
Oil gas
Natural
Natural ggas
as
20,000
20,000
GWh
10,000
20,000 Coal
GWh
Coal
GWh
Coal
15,000
15,000 Oil
5,000
15,000 Oil
Oil
10,000
10,000
0
10,000
5,000 2005 2006 2007 2008 2009 2010 2011 2012 2013
5,000
5,000
0
* Renewable 0
0
energy sources & recovered energy
2005 2006 2007 2008 2009 2010 2011 2012 2013
2005
2005 2006
2006 2007
2007 2008
2008 2009
2009 2010
2010 2011
2011 2012
2012 2013
2013
Natural gas remains the main fuel source for District Heating and tends to replace other fossil fuels with a higher carbon
Renewable energy sources and recovered energy in
footprint, namely coal and oil. In parallel, the share of renewable energy sources and recovered energy has reached 40%
District Hea9ng
in 2013. This is an increase of over 50% in less than 10 years.
Renewable energy sources and recovered energy in District Heating
14,000
12,000
Biomass
10,000
Geothermal
8,000 Waste facili<es

GWh
CHP (external)
6,000
Industrial processes
4,000 Recovered gas
Others
2,000
0
2005 2006 2007 2008 2009 2010 2011 2012 2013
In 2013, renewable energy sources or recovered energy were used by a majority of heat networks (58%). Waste-to-Energy
is by far the main source used, however biomass plants are developing rapidly.

FRANCE

District Heating currently provides approximately 6% of France’s heat demand. However, the technology has gradually
been recognised as a solution that can boost the energy transition. Together with a more favourable legal framework (see
below), this situation accounts for an increase in the market share of District Heating.
According to the multi-annual investment plan for heat production established by the French government in 2008,
renewable heat generation is set to increase by 10 million tonnes of oil equivalent (Mtoe) by 2020, out of which 3.2 Mtoe
have to be produced and distributed through District Heating networks.
This target also appears in the national renewable energy action plan for the period 2009-2020. 16.2% of the heat produced
via District Heating should come from renewable energy sources by 2020.

The District Heating sector is subject to a wide range of regulations whether general (tax and finance law) or more specific
to the energy sector (technical regulations).
The Energy Transition Law is currently under review by the Senate and is expected to come into force in 2015. It includes
several clauses on District Heating, among which a fivefold increase in heat delivery using renewable energy sources by
2030 and the production of District Heating and Cooling master plans by 2018, for District Heating networks that were
operational in 2009.

OF DISTRICT HEATING
The main driving forces in favour of the District Heating sector are very often directed towards heat networks that use at
least 50% of renewable energy sources and recovered energy in their fuel mix :
• The heat fund (200 M Euro/y) created in 2009 offers a range of subsidies for renewable heat production and District
Heating development. The French energy minister announced that this fund would be doubled in the near future;
• A reduced VAT rate (5.5%) is applicable to the whole invoice (as opposed to only the part where the fuel mix is less
than 50% renewable and recovered energy);
• The thermal regulation rules (2012) allow a building connected to a District Heating network to exceed the
maximum consumption values if the carbon footprint of that network is below a certain threshold;
• The zoning rules (updated in 2012) allow local authorities to make it compulsory for consumers to connect to heat
networks under certain conditions.

There is still a general lack of awareness regarding District Heating and its positive contribution to the energy transition.
Moreover, a more effective framework needs to be implemented with the involvement of all stakeholders in order to
accelerate the development of District Heating. This framework should be high on the political and economic agenda.
Given the European objectives in terms of renewable energy sources and energy efficiency, existing technologies,
associated with design improvements, are expected to be massively deployed. Technologies themselves might not evolve
as much as their integration in a holistic system will. Heat will be recognised as a specific form of energy and District
Heating as an efficient technology among others, in a local - but on a scale large enough - system where supply will be
managed based on demand.
Regarding energy production systems, the potential of heat pumps should be taken into account as they allow heat and
cold to be recovered in heating and cooling networks respectively, thus avoiding unnecessary energy waste. It is also
worth underlining the development of increasingly lower temperature networks in order to reduce heat losses, in which
pipes are expected to play an important role.

FRANCE
Recent regulations adopted pursuant to the Energy Efficiency Directive are encouraging the use of recovered heat. As a
result, the share of recovered heat in District Heating is expected to increase.

District Heating in the urban community of Brest
Dalkia Nord Finistère was created in 2010 by the urban community of Brest and the company Dalkia with a view to operating
the local heat network. This new management has boosted the development of a low carbon District Heating network
while keeping heat prices very competitive and well under the national average. The energy supply composition is now
based on 80% renewable energy sources (biomass) and recovered energy (waste facility). Heat delivery has increased
from 100 GWh/y to 200 GWh/y and the network has expanded from 20 km to 40 km. Moreover, 35 to 40 new jobs will be
created in the long term.
2 HEAT MARKET
TOTAL HEAT DEMAND FOR DOMESTIC SPACE HEATING IN 2013: 1,050,000 TJ


7%

FRANCE
Source In %
Natural gas 35%
Electricity 31%
Renewables* 15%
Other 4%
TOTAL 100%
Source: ADEME, “Chiffres clés”, 2013 edition
4%
15%
35% Natural gas

Electricity
15% Oil / Petroleum products

Renewables*
Other
31%
Historically, French energy production is very much orientated to nuclear power. As a consequence heating in residential
buildings is often electricity-based. In 2012, electricity thus accounted for a third of space heating and domestic hot water.
However this is expected to change in the near future given specifications put in place by the 2012 thermal regulation rules
that favour more energy efficient means of heating in new residential buildings.

FRANCE
3 DISTRICT COOLING
KEY FIGURES
2013 2011 2009

Total District Cooling sales (in TJ) 3,168 3,154 3,330
158 145 131

Development of installed District Cooling capacity (in
MWth)
800
600
MWth
400
200
0
2013 2011 2009

3,500
3,000
2,500
2,000
TJ
1,500
1,000
500
0
2013 2011 2009

FRANCE
District District Cooling

Cooling trenchlength
trench length development (one way
development in km)
(one way in
km)
200
150
km
100
50
0
2013 2011 2009
2013 2011 2009

In % In TJ In % In TJ In % In TJ
Compression chilling 96 3,377 95 3,539 95 3,650
Absorption chilling
Cogeneration fossil fuel based 1 32 2 79 2 83
Waste (outside cogeneration) 3 108 3 104 3 104
District Cooling is under constant development in France, including the French overseas departments and territories, since
cooling demand is growing. Most District Cooling users are in the services sector (museums, offices, shops, etc).
The main driving force for the growth of District Cooling is its global efficiency which can be measured in terms of energy
savings, low greenhouse gas emissions, production systems congestion, etc.
No nationwide policies have yet been introduced to support District Cooling, but decision-makers are starting to realise
and further assess its advantages. The Energy Savings Certificates scheme, one of the main policies implemented in France
in order to reach its energy efficiency objectives, already takes into account the connection to a District Cooling network
under certain conditions, notably in service buildings located in the French overseas departments and territories.
In addition, increased awareness raising and an ongoing more thorough investigation in the potential of District Cooling is
expected to push forward more favourable policies.

Thassalia Project in Marseille
500.000 m² of office buildings will soon be cooled and heated by ocean geothermal energy in the city of Marseille. The
first thermo-frigorific production plant using marine energy ever built in France will supply a 3 km long network that will
provide both heat and cold to one of the city’s renovated district (Euroméditerranée). The project, called THASSALIA, is
implemented by Cofely together with Climespace, the operator in charge of Paris’ cooling system. It will significantly
reduce the city’s energy consumption and the level of greenhouse gas emissions (-70%). Compared to an equivalent
number of individual heating and cooling systems, the advantages are huge: energy efficiency increased by 50%, use of
renewable energy increased by 70%, refrigerants emissions reduced by 90%, 65% reduction in water consumption, use of
chemicals reduced by 80%.

FRANCE
4 COOLING MARKET
The ratio of electricity used for comfort cooling is approximately 0.135 calculated using numbers published by the “Réseau
de Transport d’Electricité” (RTE):
• electricity demand July 2013: 34,786 GWh;
• electricity demand April 2013: 40,360 GWh;
• electricity demand 2013: 495 TWh.

CHP/District heat
Source In TJ
Oil / Petroleum products 47
Coal and coal products 500
Natural gas 17,939
Renewables* 1,800
Waste 464
TOTAL 20,750
Fuel
Fuel sources used
sources used for CHPfor CHP in 2013
in 2013
25,000
20,000 Waste
15,000 Renewables*
TJ
Natural gas
10,000
0
CHP/District heat

FRANCE

The current context is not favorable to CHP development in terms of costs. As a consequence, gas turbines and engines are
relying on government support to continue operating. Moreover, more restrictive regulations on gas storage have entered
into force in 2014. These constraints have a negative impact on the development of new projects.
Most CHP plants recently developed use biomass as fuel source and generate less than 12 MWe.

USE OF BUILDINGS
In 2013, the heating degree days in France (a system called “DJU” that stands for “Degrés Jour Unifiés”) vary from one
region to another, from approximately 1,350 to 3,500, with an average value of 2,690.

France is located between latitudes 41° and 52° North, on the western edge of the Eurasian continent, thus lying within
the northern temperate zone. It is generally subject to western winds bringing in air from the sea which results in a mild
coastal and inland climate. However, in winter, continental anticyclones can bring cold winds. All in all, the French climate
varies due to the combination of maritime influences, latitude and altitude.

For residential buildings, the average energy use for 2011 is 186 kWh/m² (source : ADEME, “Chiffres Clés”, 2013 edition).
For services buildings, the average energy use for 2011 is 204 kWh/m² (source : ADEME, “Chiffres Clés”, 2013 edition).
Syndicat National du Chauffage Urbain et de la Climatisation Urbaine (SNCU)

28 rue de la Pépinière 75008 Paris, France
Tel: +33 (0)1 44 70 63 93
www.sncu.fr
Contact Person: Julie Purdue
Email: jpurdue@fedene.fr
Antoine Hochar
Email: ahochar@fedene.fr

88% 49,691MWth
TOTAL INSTALLED
DISTRICT HEATING
CAPACITY
OF DISTRICT HEAT
COMES FROM
DIRECT RENEWABLES
3,372
DISTRICT HEATING
AND RECYCLED HEAT PLANTS
GERMANY
MARIA GRAJCAR
GERMANY
1 DISTRICT HEATING
KEY FIGURES
2013 2011 2009

Total installed District Heat capacity (in MWth)* 49,691 49,931 51,506
Trench length in km for transport and distribution
20,219 20,151 19,538
network (one way), AGFW members**
Number of District Heating plants 3, 372 3, 390 2, 534
* Connected load
**Pipe suppliers’ estimation: 100,000 km
DISTRICT HEAT SOLD TO CUSTOMERS (IN TJ)*
2013 2011 2009

Total sales 254,839 243,327 284,386
*Note: heat fed to the grid (source: Energiebilanz)
Data on District Heating
25,000 300,000
20,000 250,000
Total sales (in TJ)

200,000
15,000
150,000
10,000
100,000
5,000 50,000
0 0
2013 2011 2009
Trench length in km for transport and distribu=on network (one way), AGFW members**
Total sales
**Pipe suppliers’ estimation: 100,000 km

2013 22.4 26.6
2011 21.4 25.4
2009 18.9 22.5
Germany - 3 COUNTRY BY COUNTRY / 2015 Survey

GERMANY
HEAT SALES TURNOVER
Total District Heat Sold Average District Heating Heat sales Turnover

2013 254,839 22.4 5,700.7
2011 243,327 21.4 5,201.1
2009 284,386 18.9 5,383.4
FUEL INPUT COMPOSITION (HEATING VALUE) FOR DISTRICT HEAT AND ELECTRICITY
IN CHP INSTALLATIONS AND FOR DISTRICT HEAT IN NON-CHP INSTALLATIONS
2013 2011 2009

In cogeneration
Oil and petroleum
1,131 0.3 % 988 0.2 % 4,631 0.9 %
products
Natural gas 151,253 35.5 % 171,184 41.4 % 203,800 40 %
Other 8,550 2% 2,926 0.7 %
Combustible renewables* 12,840 3% 8,785 2.1 % 9,264 1.8 %
Waste** 23,992 5.6 % 21,154 5.1 % 37,055 7.3 %
Geothermal 318 0.1 % 264 0.1 % 184
Combustible renewables* 1,342 0.3 % 348 0.1 % 850.4 0.2 %
Renewable waste*** 2,375 0.6 % 2,178 0.5 % 1,251.5 0.2 %
Industrial surplus heat N/A 4,516 1.1 % N/A
Others
Coal and coal products 3,146 0.7 % 2,708 0.7 % 3,828.4 0.8 %
Natural gas 41,772 9.8 % 33,207 8% 35,472.8 7%
Oil and petroleum
2,048 0.5 % 2,024 0.5 % 3,380 0.7 %
products
Non-renewable
2,375 0.6 % 2,177 0.5 % 1,251.5 0.2 %
waste****
Other 360 0.1 % 493 0.1 % 689.2 0.1 %
TOTAL 425,815 100 % 413,676 100% 510,090 100 %

** in cogeneration includes both biodegradable fraction and non-renewable waste
*** Biodegradable fraction of municipal waste in accordance with art. 2e of the Renewables Directive
**** Non-biodegradable fraction of municipal waste in accordance with art. 2e of the Renewables Directive
N/A – no data available

GERMANY
Fuel input composition (heating value) for district heat and electricity
in CHP installations and for district heat in non-CHP installations
100%
90%
80%
70% Other
50% Recycled Heat
40%
30%
20%
10%
0%
2013 2011 2009
‘Recycled heat’ includes surplus heat from electricity production (CHP), Waste-to-Energy cogeneration plants and industrial processes
considered as recycled heat. This figure equals 87% and relates to the fuel input, recycled heat for heat generated (281,817 TJ in 2013) was
83%, industrial surplus heat included.
Fossil fuels still dominate the German heat market. In 2012, the share of renewable energy within the heat market was
9.4%. The figure is comparable with the share of renewable energy (especially waste, biomass and geothermal) on the
district heating market.
The use of coal dropped by almost 25% between 2003 and 2012 in absolute numbers and its share on the CHP district
heating market decreased from 58% in 2003 to 44% in 2012. However, the trend has changed to an upward direction since
20121. In 2013, the share of coal in CHP heat production was 48%. Prosperous times for the second most important fuel
(natural gas) were from 2006 to 2010 with a peak share at 49.73 % in 2007. Since 2010, the share of natural gas has slightly
decreased and contributed by 41.51% to the 2013 energy mix. The current market situation, mostly influenced by the feed-in
tariffs for electricity from renewable energy sources, put a lot of pressure on the economic viability of gas-fired CHP plants.
Heat from Waste-to-Energy CHP plants expanded from 3.4 % in 2003 and reached 6.58% in 2013. With respect to
renewable fuels in CHP heat production, the methodology for collecting data has changed since 2007. They contributed
with 1.54% to the heat produced in CHPs in 2007 but their share increased to 3.52% in 2013.

The share of CHP heat production within the total heat market is about 14%2. For historical reasons, the market share is
around 9% in the western part of the country and around 31% in new federal states. While the market share leaves room
for further growth, Germany is, together with Poland, the biggest market for district heating and cooling in the EU in terms
of absolute numbers. Despite the ongoing decline in heat demand due to thermal insulation measures, the replacement of
old buildings and demographic changes, the district heating share within the overall heat market remains stable. The fall
in heat demand is compensated for by the densification of existing district heating networks in urban areas, opening up
development areas with isolated networks and local small-scale district heating and contracting projects. As an indicator
for this development, the number of customer installations is steadily growing (356,219 in 2013), whereas the average
connected load per substation is decreasing (141 kW in 2013).
1 Note: the AGFW figures are reported as they are provided by member companies participating in the survey. Participation in data collection
is voluntary and therefore the total number of participating utilities fluctuates. The numbers were not extrapolated for the whole district heating
sector. Fluctuations in reported data may therefore occur (the same may not hold true for other sources). This fact must be taken into account while
interpreting the statistical data in the report.
2 “Potential and Cost-Benefit Analysis for the combined heat and power technology”, The Federal Ministry for Economic Affairs and Energy, 2014

GERMANY
In 2012, 82% of the total district heat delivery was generated in CHP installations. Besides, there are 18 solar thermal
installations with a collector area more than 500 m2. According to the Bundesverband Geothermie e.V. (German
Geothermal Association) in 2013, there were 25 geothermal power stations in operation in Germany with an installed
capacity of 222.95 MWth, which supply households and public buildings with heat via district heating networks.
District heating contributes to the climate and energy goals as follows:
• There is a 25% target for electricity from CHP by 2020 (150 TWh);
• The target for greenhouse gas emissions reduction is 40% by 2020 (reference year 1990). Nowadays, district
heating contributes to approximately 56 million tonnes of CO2 savings annually;
• The integration of renewable energy sources into the energy system must be done on a larger scale. Combining
CHP plants and district heating and cooling grids with thermal storage and/or power-to-district-heat technology
can contribute to reducing peak demand and provide balancing power to the grid when needed.
The German government set a target of a 25% share of CHP in the total electricity production by 2020. To meet this
objective, a variety of support schemes including tax exemptions/reductions and premiums benefits have been put in
place. An overview of the funding for energy efficiency in buildings is illustrated in the table below.
Current outlay in the field of Energy Distribution and Energy Use (in million Euro)3
EnOB
EnOB – ––S olar–op5mised
Solar–op5mised
EnOB Solar–op5mised
building
EnOB
building – S olar–op5mised
2013 building
EnOB
EnEff:Stadt – S olar–op5mised
2013
2013 building
EnEff:Stadt
EnEff:Stadt
EnOB
EnOB – ––S upply
–– SS olar–op5mised
olar–op5mised
Supply
Supply
2013 building
concepts
EnEff:Stadt
EnOB
–S olar–op5mised – Supply
S olar–op5mised
2013 concepts
EnOB –
concepts
building
EnEff:Stadt
building
– SDupply istrict
2013
2013 concepts
building
EnEff:Stadt
EnEff:Stadt
building
EnEff:Stadt – ––D istrict
SSD istrict
upply
upply
2013
2013 concepts
Hea5ng
EnEff:Stadt – SD istrict
upply
Hea5ng
EnEff:Stadt
Hea5ng
concepts
EnEff:Stadt
concepts – –S upply DC istrict
ombined
Hea5ng
concepts
EnEff:Stadt
EnEff:Stadt
concepts
EnEff:Stadt
–
power C ombined
–– D DCombined
istrict
istrict
Hea5ng
heat and
EnEff:Stadt Combined
–D istrict
D
istrict
heat a
Hea5ng nd
EnEff:Stadt
heat a
EnEff:Stadt
Hea5ng
Low–temperature nd p
ower
p –
ower
– C Solar
ombined
2012 heat and
Hea5ng
Low–temperature
Low–temperature power Solar
2012
2012
EnEff:Stadt
Hea5ng
EnEff:Stadt
heat
Thermal a
Low–temperature
EnEff:Stadt

nd p –
–
ower
Energy
C
C
–C ombined
Combined SSolar
ombined
ombined olar
2012 Thermal
EnEff:Stadt
Thermal
heat
heat
Solar a
Low–temperature
acnd E
nd
ooling nergy
Ep –
nergy
ower
pnergy
ower
Solar
2012 Thermal
heat
Solar
Solar c a nd
ooling
cooling
Low–temperature
heat and
Low–temperature pEower Ep ower
SSolar olar
2012
2012 Thermal
Solar cooling
Low–temperature nergy Solar
2012 Low–temperature
Thermal
Solar
Thermal
Basic cresearch
ooling EEnergy
nergy Solar
2012 Thermal
Basic
Basic research Energy
0% 20% 40% 60% 80% 100% Solar
Thermal
Solar
Basic ccrresearch
ooling
Energy
ooling
0%
0% 20%
20% 40%
40% 60%
60% 80%
80% 100%
100% Solar
Solar c cesearch
ooling
ooling
0% 20% 40% 60% 80% 100% Basic research
0% 20% 40% 60% 80% 100% Basic rresearch
Basic esearch
0% 20% 40% 60% 80% 100% Basic
Basic research
research
0% 20% 40% 60% 80% 100%
0%
0% 20%
20% 40%
40% 60%
60% 80%
80% 100%
100%
3 Source: Graph (AGFW), Data: Report of the Federal Government on Energy Research 2014, Research Funding for the Energiewende,
Federal Ministry for Economic Affairs and Energy, Berlin, July 2014

GERMANY

Combined Heat and Power Act (KWKG)
As a basic instrument, the CHP Act obliges grid operators to connect CHP plants to their grid and give priority to buying
electricity from cogeneration. A similar priority exists for electricity from renewable energy sources. For electricity from
cogeneration, a premium is paid by the grid operator on top of the market price for electricity or the price the CHP
plant operator achieved by marketing the electricity from cogeneration. The costs for this premium are shifted towards
and shared among all electricity customers. The premium is granted for a limited time only and serves to offset higher
investment costs for CHP plants in comparison with power plants. In order to reach the target of 25% of electricity from
cogeneration, the government realised that incentives had to be granted for opening up new heat sinks. The financial
support therefore applies to new and extended heat networks as well as heat storages, if they are supplied mainly by heat
from cogeneration.
The amended CHP act included district cooling grids and storages to be eligible for receiving financial support. The overall
cap for support within the CHP Act remains at 750 million Euro per year (of which 150 million Euro are earmarked for
district heating and cooling grids and storages). From the customer’s side, the CHP surcharge is set at 0.254 Euro cents/
kWh for 2015, the surcharge for electricity from renewable energy sources decreased for the first time to 6.17 Euro cents/
kWh. A household with an electricity demand of 3,500 kWh/year pays 8.89 Euro for CHP support in 2015.
The maximum support for district heating and cooling grids is set up to 40% of all investment costs. At least 60% of heat
in the network must come from combined heat and power installations. Between 2009 and 2011 400 km of pipes per year
were put into operation whereas the number increased to 800 km per year after the amendment.
Act on the promotion of renewable energy in the heat sector (EEWärmeG)
The basic instrument is an obligation to use energy from renewable sources to a certain extent in new buildings (or
existing buildings if the federal states so wish). District heating is not considered as a renewable energy source as such but
if the heat is produced by a substantial share of renewable energy sources, with a share of at least 50% of CHP or waste
heat or a combination thereof, district heating is considered as an alternate measure and the obligations to use renewable
energy sources are deemed to have been met.
Ordinance on general conditions for the supply of District Heating (AVBFernwärmeV)
The regular framework for the relationship between customers and companies was deemed inappropriate to handle
the specific technical and economic features of the supply of district heating on the one hand and specific customers’
needs on the other. The ordinance therefore sets a general framework for standard business conditions for the supply of
district heating to customers. The supply of industrial customers with district heating does not fall under the scope of the
ordinance. Customers connected to the district heating network have the right to be supplied according to the general
conditions laid out in the ordinance if standard business conditions are being used. District heating utilities, on the other
hand, can only deviate from these conditions with the explicit consent of the customer.
Energy saving ordinance (EnEV)
Buildings play a major role in combating climate change. In order to raise this potential, the ordinance aims to reduce
the primary energy demand for heating and hot water consumption in the building sector. In the ordinance, a holistic
approach is applied by covering the entire building, engineering systems and primary energy sources used. Balancing out
several measures is possible. For instance, obligations can be fulfilled by either using more insulation or more efficient
system engineering or primary energy sources. The system in general therefore reflects the efficiency benefits of district
heating based on CHP.
Act on granting priority to renewable energy sources (EEG)
As a basic instrument, the act obliges grid operators to connect power plants producing electricity from renewable energy
sources to their grid and to give priority to purchasing their electricity. For electricity from renewable energy sources, a
feed-in tariff system has been introduced by the act. Grid operators are obliged to buy the electricity from renewable
energy sources at this fixed tariff. Alternately, the power plant operator can sell its electricity on a monthly basis. By
means of a management system, the costs for these feed-in tariffs are shifted towards and shared among all electricity
customers. The tariff depends on the renewable energy source and is by far the highest for electricity from photovoltaic
installations although they provide a rather low amount of electricity overall.
The so-called EEG 2.0 entered into force on 1 August 2014.

GERMANY
Newly, auto-supply electricity operators of new installations (in operation since 1 August 2014) will partially pay the
renewable energy surcharge (EEG surcharge) as follows: 30% of the surcharge in 2015, 35% in 2016 and 40% in 2017. Still,
auto-supply electricity operators of existing installations will not pay any part of the surcharge, which may result in the
incentive to disconnect from district heating and cooling and invest in on-site small-scale CHP. Since over 80% of District
Heating is produced in CHP installations in Germany, the move from District Heating to on-site small-scale CHP is linked to
a loss of efficiency, higher primary energy consumption and greenhouse gas emissions.
The renewable energy surcharge (EEG surcharge) for 2015 was reduced by 1.1% to 6.17 Euro cents/kWh from 6.24 Euro
cents/kWh in 2014. Out of the 6.17 Euro cents/KWh, about 2.7 Euro cents/kWh covers photovoltaic, 1.6 Euro cents/kWh
biomass, 1.2 Euro cents/kWh on-shore wind and 0.5 Euro cent/kWh off-shore wind.
Due to various barriers within the framework, switching CHP plants from fossil fuels to renewable energy sources is, in a
lot of cases, not economically viable. Only installations which use renewable energy sources benefit from feed-in tariffs
(the “exclusivity criterion” of the act). This is a barrier for more effcient use of biomass in larger CHP plants. In addition,
the feed-in tariff for the use of biomass is limited to an installed capacity of 20 MW.

OF DISTRICT HEATING
Stakeholders identify the legislative framework as one of the main driving forces behind the development of district
heating and cooling and CHP. Nowadays, 96 TWh of electricity is produced in the CHP plants in Germany, having a 16.2
% share on the total net electricity production. Experts recommend the legislation on CHP shall not be amended in a
significant manner. Financial support for heat and cool storages (maximum 5 million Euro per project) and DHC networks
(maximum 10 million Euro per project) have proven to be successful and contributed to the enhanced flexibility of CHP
installations in Germany.
From 2009 to October 2012, 1,816 heat grids with a pipeline length of 1,479 km were partly funded, whereby constructing
new grids (related to pipeline length) mainly involved heat supply from bio energy sources. Notwithstanding this, natural
gas and (in 2009) hard coal predominated overall in 20094.

The expansion of district heating is linked to the expansion of CHP technologies on the energy market. While taking into
account the current legislative framework and market conditions, the CHP electricity production will remain stable until
2020. The German 2007 report to the Commission on potentials and barriers against cogeneration highlighted that “the
yields which can be achieved by expanding cogeneration and district heating are regarded as being too low by many decision-
makers, both in industry and in the energy sector”. Moreover, many energy utilities running gas-fired CHP installations have
been negatively affected by the continuing decrease in profits due to the fall of wholesale electricity prices.
New rules for fitting district heating in rental buildings can be seen as a paradox. Although the provisions were meant to
facilitate the transition from own heat production to district heat supply, they downplayed the environmental benefits
of District Heating by requiring the neutrality of operating costs. Operating costs of district heating cannot be higher
than the costs of the previous system for tenants5. Whereas the details of this comparison are very complex and require
an in-depth knowledge of German law, at its core district heating as a ready-to-use commercial heat6 delivery is to be
benchmarked against operational costs of existing heating systems. This is not a fair comparison and will provide a serious
barrier towards the change from inefficient heat supply in the building stock to efficient district heating. All other cases,
such as the disconnection from the district heating system and installation or modernisation of own heating facilities, can
be linked with higher costs for tenants.
4 Umweltbundesamt, Climate Change 2/2014, CHP - Ausbau, Entwicklung, Prognose, Wirksamkeit der Anreize im KWKG.
5 AGFW published the legal guide on connecting rental buildings to district heating at the end of September 2014, in German: ‘Rechtlicher
Leitfaden zur Umrüstung von Miethäusern auf Fernwärme’, written by Dr. Norman Fricke.
6 The commercial heat supply is an umbrella term covering in general district heating and heat contracting as described in German legislation.

GERMANY
Since CHP plants do not receive a feed-in tariff but a premium on top of the market electricity price, the number of
operating hours during which CHP plants run profitably is decreasing. This is especially true for CHP plants based on
natural gas, which have higher marginal costs. On the heat side, district heating is operated on a very price-sensitive
and liberalised heat market, making competitive price a precondition for further development. Heat-only on-site boilers
running on natural gas or heating oil represent a direct competitive technology for district heating. As they are not obliged
to pay for their released CO2 emissions, the EU Emissions Trading Scheme provides a barrier for district heating installations
with a capacity over 20 MW.
In general, the sector expects the energy mix for district heating to become more heterogeneous with a higher share of
solar thermal, power-to-district-heat or industrial surplus heat.
For future systems, energy efficiency gains are anticipated thanks to:
• More efficient and low-cost pipe laying techniques;
• Reducing heat losses by installing low-temperature district heating systems on the secondary side with the
temperature range 50 to 80°C;
• Innovations on hot water preparation at customers’ installations, supplying heat to the part of the network from
the return pipe (LowEx networks).
Future district heating systems will be more flexible and responding to the demands of the CHP and electricity market.
The flexibility of the system will constitute one of the revenue sources for utility companies. Absorption cooling may
considerably increase its share on the cooling market.
Moreover, more power-to-heat storages are to be installed and connected to district heating systems. However, German
legislation makes a distinction between different types of storage: the case where both energy input and output is in the
form of electricity (batteries, pumped storage hydro power stations) and the case where electricity is used as an input
but the output is in another form of energy (power-to-heat installations with district heating storage, power-to-gas).
The electricity-to-electricity installations receive more advantageous support (levies, taxes). District heating requires the
exemption from paying network fees for power-to-heat storage that uses surplus power from renewable energy (wind,
photovoltaics). Moreover, power-to-heat storage shall not pay the EEG-levy due to their competition with gas boilers and
“the low-cost” CHP installations such as CHP installations running on coal, biomass or waste-to-energy plants.

Conversion of Conventional District Heating systems in the Ruhr metropolitan area
The Ruhr metropolitan area stands for the agglomeration of 50 cities with a population of more than 5 million and covering
a surface of 4,400 km2. The North-Rhine Westphalia government aims at the reduction of CO2 emissions by at least 25%
until 2020 and 80% until 2050 (reference year 1990).
The Ruhr district heating network, with its total pipeline length of more than 4,300 km and more than 25 district heating
island networks, is a worldwide unique connection system providing most of the central Ruhr area with district heating
since 1978. More than 80% of the heat delivered to more than 90,000 substations is generated in CHP installations.
Steag Fernwärme covers the heat demand for more than 300,000 households with 7.2 PJ heat in Bottrop, Essen and
Gelsenkirchen. Thus, Steag Fernwärme with its connected capacity of 1,400 MW is the biggest district heating utility in
North-Rhine Westphalia. In the network linking E.ON Fernwärme GmbH’s generating stations, E.ON Kraftwerke GmbH’s
plants provide an output of more than 900 MW which can be used to supply 170,000 households. The 670 km-long
network supplies heat in Gladbeck, Gelsenkirchen, Marl, Herten, Recklinghausen, Herne and Bochum.
Evonik Fernwärme GmbH is the owner of one of the largest district heating systems in Germany which stretches over a
distance of approximately 550 km and supplies 7.56 PJ of heat per year. A large portion of heat in a network is generated
by the Herne heating plant. The total output of Evonik’s district heating systems in Germany is currently around 3,200 MW,
which corresponds to the heating requirements of more than 450,000 households.
The feasibility study called “Prospects of District Heating in the Ruhr Area until 2050” was published in May 2013. The
study recommended the connection of the district heating system in Lower Rhine to the Rhine District Heating system
(Moers-Herne). By connecting both networks, district heat sources could be used more efficiently and the share of heat
from Waste-to-Energy plants would increase.

GERMANY
2 HEAT MARKET
TOTAL HEAT CONSUMPTION FOR DOMESTIC SPACE HEATING IN 2012: 1,664,400 TJ7
Number of citizens served by district heating 9,700,000


12%
Source In %
District heating 10%
Natural gas 43%
Electricity 6%
Coal 3%
Renewables* 15%
TOTAL 100%
7 Source: AGEnergiebilanzen, FfE/Dr. Geiger; Fraunhofer ISI; RWI

GERMANY
10%
15%
3%
District Hea3ng
Natural gas
Electricity
23% Coal
43% Renewables*
6%
Heat demand in multi-family houses decreased by 16% (calculated per m2 of heated floor area) during the period 2003-
2013. However, the total floor area increased in the same period, resulting in a reduction of total energy consumption by
9.7%8. Heat demand decreased from 155 kWh/y in 2003 to 131 kWh/y in 2013. The use of oil in existing buildings has been
declining ever since the 1970s. However, it is still one of the two biggest players on the heat market for existing buildings
together with natural gas. Natural gas has been constantly gaining market share and also holds a dominant market position
in new buildings. The market share of district heating has developed at a slow pace in the existing building stock but
accelerated in new buildings, especially when considering multi-family dwellings thanks to the legislative framework. As
already mentioned, the act on the promotion of renewable energy in the heat sector allows substituting the mandatory
minimum levels of renewable energy sources for new buildings by connecting to district heating based on fossil fuels and/
or renewable CHP.
Since 2006, there is a continuous increase of district heating connections in new residential and non-residential buildings
(from 4% in 2006 to 7.9% in 2013 and from 8% in 2006 to 12% in 2010 respectively9). In old federal states, the share of
district heating connections for new residential buildings is slightly higher than in new federal states.
3 DISTRICT COOLING
KEY FIGURES
2013 2011 2009

Energy sold in District Cooling sector (in TJ) 588 618 675
50.7 54 55.8
8 Heat Monitoring Germany, www.diw.de

9 Statistisches Bundesamt, Fachserie 5, R.1, 2013

GERMANY
Data on installed District Cooling capacity (in MW )

Development of installed District Cooling
th
capacity (in MWth)

200
150
MWth
100
50
0
2013 2011 2009
Energy sold in District Cooling sector (in TJ)

800
700
600
500
TJ
400
300
200
100
0
2013 2011 2009
District District Cooling trench length data (one way in km)

Cooling trench length development (one
way in km)
60
50
40
km
30
20
10
0
2013 2011 2009

GERMANY

The quality of statistical data on the cooling market lags behind heat and CHP data. The EU-project RESCUE, supported
by the European Commission, aims at improving market conditions for district cooling in Germany and other European
countries.

OF DISTRICT COOLING
The ffinancial support set up in the CHP act is also applicable for district cooling networks and storage. However, until now
no operator of a district cooling network used this opportunity.
The amendment of the CHP act in 2012 included financial incentives for district heating and cooling storage facilities with
the maximum support of 30% of the investment costs and 5 million Euro per project. Since then, 81 heat storage projects
with the total water-equivalent volume of 8,100 m3 were supported, with 81 more going through the approval process.
Again, no projects on District cooling storages have emerged yet. The latest report on the potential of CHP and District
Heating and Cooling confirmed that district cooling in the sector of non-industrial CHP is negligible (with the exception of
providing cooling to data centres10).

There are different reasons for the slow development of District Cooling:
• In most cases, district cooling demand is not known;
• Projects lack economic viability;
• There is a lack of awareness among consumers and a lack of demand in the residential sector;
• Missing communication channels among different departments within utilities;
• There are missed opportunities (time gap) while planning or renovating city infrastructure;
• Cost analysis from the building owner’s point of view is missing;
• Consulting engineers underestimate the costs for individual cooling solutions;
• Technical issues do not play a big role but certain pipe types are seen as a disadvantage for District Cooling systems.
10 In 2013, there were only 350 data centres with a floor area larger than 500 m2 out of the 50,000 data centres in Germany.

GERMANY
4 COOLING MARKET
Results from experts’ discussions on district cooling in Germany (status: December 2014):
• An optimal mix of the production technologies shall be found for every single district cooling system. Absorption
cooling is just one of the solutions. Alternatively, CO2 high temperature heat pumps may be installed provided that
the outlet average temperature and the temperature difference are high.
• Decentralised trigeneration and solar cooling have recently increased their shares in the cooling market.
• A debate on different tariffs for heat used as energy input for absorption chillers in summer and winter is welcome.
• From a company point of view, a good opportunity to install District Cooling pipes comes with either the
refurbishment of district heating pipes or the expansion of the district heating system.
• District cooling zoning would assist making the investment safer but may face political opposition.
• The primary energy factor is one of the indicators to be used as a driving factor for district cooling. National
legislation may provide further indicators such as the amount of CHP heat used in the cooling system (e.g. German
EEWärmeG or CHP Act). Among others, CO2 emissions of different cooling technologies and economic efficiency
may be crucial. Policy makers at city level pay attention to the broader energy policies on state level.
• The new F-gas Regulation applies from 1 January 2015 and it is a game-changer for the whole refrigeration industry.
It limits the amount of HFCs which can be placed on the market in the EU from 2015 onwards. One more argument
for a new trend: cooling production to be placed at distance from consumers.
• For central District cooling systems, the location of the main installation is crucial – this is one of the advantages of
the District Cooling system in Berlin.
• Drivers for district cooling development are, firstly, the synergy between city and utility policies and secondly, within
the utility, a specialised “District Cooling group” solely responsible for the District Cooling business in the utility.
Only 6% of all industrial heat demand under 30°C is needed for the temperature range (-15°C to 15°C), defined as an
industrial cool energy (in the form of electricity). Respectively, cooling in industry is seen as one of the driving forces for
improving the economic efficiency of production rather than the independent driver for new installations.

CHP/Total
Source In TJ
Oil / Petroleum products 1,009
Coal and coal products 220,738
Natural gas 223,847
Renewables* 25,268
Waste 51,425
Other 3,515
TOTAL 525,802

GERMANY

600,000
500,000
Other
400,000 Waste
Renewables*
TJ
300,000
Natural gas
100,000
0
CHP/Total

CHP has been at the forefront of climate change and energy policy measures and is already well-established in Germany.
The latest report on the CHP potential confirmed the positive impact of the CHP law on the CHP electricity production and
policy-makers confirmed the goal of achieving a 25% share of CHP in electricity production by 2020. Mostly, industrial CHP
installations, small-scale installations with the capacity below 1 MW and installations running on biofuel contributed to
the overall increase of CHP electricity (net): 77.5 TWh in 2003, 95.1 TWh in 2012.
While discussing the potential of CHP electricity production, even in a power system more and more dominated by
fluctuating renewable electricity, a large potential for CHP still exists in the long run. This capability varies, according to
the different scenarios, between 71 TWh and 140 TWh in 2030 and 48 TWh to 107 TWh in 2050. The main requirement for
fulfilling potential is the installation of heat storage facilities to enhance the flexibility of electricity production in order to
enable CHP installations to react to a more fluctuating residual load and still provide heat to its customers.

USE OF BUILDINGS
There were 3,751 heating degree days in 2013 (defined as the average of the heating degree days of larger cities,
and taking into account a 15°C limit and an indoor temperature set at 20°C). The long-term average for heating degree
days is 3,740. These figures are for the German ‘Gradtagzahl’ as the calculation for ‘Heizgradtage’ (building specific) differs
from this.

GERMANY

Most of Germany has warm temperatures and a humid and mid-latitude climate. Extreme low or high temperatures are
rare. Summer temperatures vary between 20°C and 30°C, with more rainfall during the spring and summer months. Due to
the influence of the sea, the climate around the Baltic and the North Coast is fairly stable and with little variations. Apart
from the distance to the sea, the temperature is heavily influenced by the topography of the country. It consists mainly of
flat landscapes surrounded by uplands. Lowlands have a particularly dry, warm and predominantly sunny climate, whereas
higher areas such as mountain ridges are characterised by wet, cold and cloudy weather.
AVERAGE HEAT USE OF BUILDINGS PER SQUARE METER IN 2013

According to data collected by co2online.de, the average use in (2011-2013) was 134 kWh/m2 (based on one million
building-specific data sets). However, the increase of the average amount of m2 per capita has not been accounted for.
According to the co2online.de, the data are collected from a group of users with an affinity for energy efficiency, reduction
of greenhouse gas emissions and environmental topics in general. Therefore, it is assumed that the collected data are
much more so-called optimistic than the real situation, meaning that the average energy use is probably higher than the
aforementioned 134 kWh/m2. The Statistical Federal Office and the Federal Ministry for Economic Affairs and Energy
published the average value for all households in Germany at 171 kWh/m2/y.
AGFW / Energy Efficiency Association for Heating, Cooling and CHP

Stresemannallee 30, D-60596 Frankfurt am Main, Germany
Tel: + 49 69 6304-281
Fax: + 49 69 6304-455
www.agfw.de
Contact Person: Maria Grajcar
Email: m.grajcar@agfw.de

8,377
214
DISTRICT HEATING
MWth
TOTAL INSTALLED
DISTRICT HEATING
SYSTEMS IN HUNGARY CAPACITY
OF PIPELINES
TRANSPORT
AND DISTRIBUTION
HUNGARY
DR. PÉTER ORBÁN

HUNGARY
1 DISTRICT HEATING
KEY FIGURES
2013 2011 2009

Total installed District Heat capacity
8,377 7,638 9,041
(in MWth)
2,158 2,138 2,285
Estimation of the total investment
in District Heating and Cooling in
6.63 M
Euro (excluding operational and
maintenance costs)
Average CO2 emissions per GWh of
205.22 t/GWh
district heat generated
*Euro exchange rate used (annual average): 1 EUR = 300 HUF

2013 2011 2009

TOTAL 30,967 31,647 40,859

45,000
40,000
35,000
30,000
TJ
15,000 Residen;al sector
10,000
5,000
0
2013 2011 2009
Hungary - 2 COUNTRY BY COUNTRY / 2015 Survey

HUNGARY
2,500 45,000
40,000
2,000 35,000
Total sales (in TJ)

30,000
1,500
25,000
20,000
1,000
15,000
500 10,000
5,000
0 0
2013 2011 2009
Trench length in km for transport and distribu>on network (one way)
Total sales
AVERAGE DISTRICT HEATING PRICE IN EUR/GJ *

(annual average)
2013 15.63 16.4 1 EUR = 300 HUF
2011 18.9 19.8 1 EUR = 280 HUF
HEAT SALES TURNOVER

2013 30,967 16.4 508.2
2011 31,647 19.8 626.7

HUNGARY
2013
Source In TJ In %
In cogeneration
Coal and coal products 2,999 4.8 %
Oil and petroleum products 54 0.1 %
Natural gas 31,907 51.6 %
Nuclear 168 0.3 %
Combustible renewables* 3,928 6.4 %
Waste** 3,138 5.1 %
Geothermal 614 1%
Combustible renewables* 743 1.2 %
Others
Natural gas 18,175 29.4 %
TOTAL 61,840 100 %


100%
90%
80%
70%
60% Other
40% Recycled Heat
30%
20%
10%
0%
2013

HUNGARY
Natural gas remains the main fuel used in the energy sector in Hungary. It plays a very important role in electricity
production, particularly in cogeneration, as well as in District Heating. Its share in District Heating was already 70% in
2000 and increased to over 83% in 2010 (heat only and CHP heat). It decreased to 81% in 2012 due to the increasing use of
renewable energy sources, as illustrated in the table below.
FUELS USED IN DISTRICT HEATING (INCLUDING COGENERATION)
2002 2012
Fuel
In PJ In % In PJ In %
Natural gas 48.43 70.92 46.18 80.95
Coal and varieties 11.54 16.91 3.52 6.16
Oil and varieties 3.98 5.83 0.27 0.47
Nuclear 0.17 0.31
Geothermal 0.28 0.5
4.33 6.34
Biomass, biogas, solar 3.39 5.94
Industrial & municipal waste 3.23 5.67
TOTAL 68.28 100% 57.04 100%
Before 2010, District Heating related natural gas was used up to 60% in cogeneration, with the remaining part in heat-
only boilers. Afterwards, CHP decreased by 35% until 2012 due to the end of the feed-in tariff in Hungary. Coal-firing is
currently used in some power plants only, generally for industrial heating. Oil is used only in some large heating plants
and cogeneration plants for balancing natural gas peak demand. In some coal-fired cogeneration plants, old units were
replaced by new gas-fired CHP units. Other coal-fired plants have replaced or mixed coal with biomass firing. Several
small and medium size biomass heating plants have been put in operation and the development of more biomass as well
as geothermal-based plants is in progress. In 2004, in Pécs a 300 TJ wood-chip-fired CHP plant was put in operation and
consumed approximately 10% of the District Heating related biomass in 2012. In 2013, a straw- and maize stalk-fired
large CHP plant was put in operation in the same city, having a 1,000 TJ heat output. Thanks to these two projects, Pécs is
provided with District Heating based on nearly 100% renewable energy. Also in 2013, a geothermal plant was installed in
Miskolc and provided 530 TJ of heat for the District Heating system in its first heating season.

In 2011, Hungary issued a National Energy Strategy until 2030. It included several targets for District Heating such as
the connection of public institutions to District Heating and an increasing share of renewable and waste energy in heat
production. The strategy forecasts the decrease of the share of district heat consumption within the residential and
tertiary sector from 12% to 10% until 2020, due to renovation and insulation of buildings.
Recent government acts set new District Heating objectives, which promote an increasing role of District Heating in the
Hungarian energy policy. According to this direction, cities with existing District Heating systems should endeavour to
gradually connect as many new consumers as possible, up to 100% of dwellings.
There was no significant change in the residential District Heating market during the last five years. Between 2010 and
2012 there was a slow increase in the number of heated dwellings (from 647,000 to 648,000). Since then, there were
only a few new connections, mainly together with the connection of commercial or institutional consumers. The former
fluctuation of connections and disconnections ended thanks to the decrease in VAT for District Heating from 27% to 5% in
2010 and to the decrease in heating tariffs since 2013.
Heat supply decreased from 40.7 PJ to 31 PJ between 2008 and 2013. Industrial consumption decreased in a larger
proportion, mainly due to disconnections, from 9.8 PJ to 3.7 PJ. Residential consumption decreased step by step from 23.2
PJ to 22.3 PJ due to energy saving measures.
The consumption of the tertiary sector (public buildings, commercial, etc.) decreased to 5.3 PJ in 2011, due to energy
savings measures but also due to several disconnections.

HUNGARY
The main competitor of District Heating is natural gas heating, which represents more than 60% of the residential heating
market. District Heating represents only 12% by energy consumption and 15% by the number of heated dwellings.
The frequent changes in legislation and the cross-financing had an impact on the competitiveness of District Heating
against natural gas heating lately. It seems that the main aim of the administration is to keep the existing District Heating
level. The 5% VAT level against 27 % for natural gas counterbalances the disadvantageous gas pricing and guarantees a
moderate competitiveness of District Heating.
The National Energy Strategy 2030, with an outlook until 2050, was issued in 2011. It estimates a constant level of District
Heating until 2030. It foresees only a limited increase in the share of residential District Heating above the current 15%,
even with expected connection of heat islands and the construction of village District Heating plants. On the other hand,
the share of District Heating in the residential and tertiary heat market would decrease from the actual 12 % down to 10 %
until 2020 due to building and heating modernisation.
The goal emphasised in the strategy is increasing the share of renewable energy and waste incineration in District Heating.
The strategy prescribes the creation of a District Heating Operation Plan on the future of District Heating and cogeneration,
which is expected to be completed in the first half of 2015 following numerous delays.
Moreover, the Second National Climate Change Strategy is under discussion.

Since 1998, District Heating is regulated by a separate law in Hungary. The current law dating back from 2005 has been
modified many times. It regulates the legal relation between the District Heating supplier (utility) and the customer and
between the heat producer and the District Heating utility. District Heating is considered a public service.
The law authorises local municipalities to designate preference districts for District Heating within the city for environmental
protection reasons. However, this does not mean compulsory connection. Several local decrees, passed by municipalities,
have been cancelled by the Constitutional Court.
Municipalities must be by law the majority owner of the District Heating utility. This allows them to privatise a maximum
of 49% of the shares or to privatise the District Heating operation in the framework of a concession tender. Most District
Heating utilities are owned up to 100% by local municipalities, with few exceptions. Heat sources may be owned by
the District Heating utility but also by private owners. Municipalities must provide for licensees (District Heating utilities
having supply license) in order to ensure heat supply for consumers. Currently, the government plans to establish state-
owned national energy holding companies in the natural gas, electricity and later in the District Heating sector, which
should foster competition within each market.
In 2011, the official CHP feed-in tariffs were cancelled, while they are still valid for electricity production from renewable
sources. District Heating prices from CHP plants are regulated, including subventions, which can be used for residential
and public utility customers. The heat price and the subventions are set by decrees of the minister and are different for
each utility. Natural gas prices and heat prices for the residential and public sector are also regulated, while natural gas
prices for District Heating and CHP electricity prices are market-driven.
The District Heating connection price is set by the local municipality following approval from the Energy Authority.
The legal framework limits the profit from heat supply from renewable heat sources and from efficient CHP plants for
District Heating utilities at 4.5 % and at 2% for other District Heating producers and utilities. The surplus profit can be
used for investments in energy efficiency, carbon emission savings or environmental protection by the approval of energy
authority.
In 2013, the government passed a law on the reduction of residential overhead costs, including natural gas supply,
electricity supply, District Heating, water supply, etc. The price of natural gas has been reduced by 25.2%, the electricity
supply price by 24.6% and the price of District Heating by 22.6%. The biggest part of District Heating price reduction is
covered by subventions. Utilities must find budget sources to cover the remaining part.
The feed-in tariff for CHP made District Heating viable for a ten-year period until 2011. Since the feed-in tariffs for
cogenerated electricity were cancelled, CHP plants have to sell electricity on the free market or for system operation goals
(e.g. peak load services), sometimes without heat output.

HUNGARY
Despite being supported by subsidies, CHP production for District Heating has decreased by 40% and some small units
were shut down. CHP plants and District Heating utilities have to buy natural gas on the free market, while prices for
residential customers, small and public institutions are regulated.
Cogenerated electricity and its share within the Hungarian electricity production
Cogenerated electricity and its share within the Hungarian electricity production
25 15
24 14
23 13
total naFonal power producFon (%)
21.8
22 21.3 21.2 12
Share of cogeneraFon within
20.8 20.7 20.9
Cogenerated electricity (TWh)

21 20.3 11
19.6
20 10
19 7.9 17.8 9
7.3 7.6
18 7.1 7.2 8
6.5 6.8
17 6.3 7
5.9
16 6
4.6
15 5
14 4
13,5
13 3
12 2
11 1
10 0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Source: MAVIR
Source: MAVIR

OF EXISTING
DISTRICT DHEATING
RIVING FORCES AND/OR OPPORTUNITIES THAT FAVOUR AN EXPANSION OF DISTRICT
TheHEATING
driving force for District Heating until 2011 was the CHP feed-in tariff, which had partly compensated for the weak
competitiveness
The driving offorce
Districtfor
Heating. Since
District then, theuntil
Heating supporting
2011 sources fromCHP
was the the so-called
feed-‐in KEOP tender
tariff, system
which had (based on
partly
EU funds) constituted
compensated thethe
for main driving
weak force. Between 2007
competitiveness and 2013,Heating.
of District around 20Since
billionthen,
HUF (~64 the million EUR) support
supporting was
sources
available for District Heating. About 42% was used for new renewable energy projects, the remaining for modernisation
from the so-‐called KEOP tender system (based on EU funds) constituted the main driving force.
andBetween 2007 and 2013, around 20 billion HUF (~64 million EUR) support was available for District
energy efficiency projects. New connections were initiated, mainly public institutions and commercial buildings, but
alsoHeating. About 42% was used for new renewable energy projects, the remaining for modernisation
residential customers.
For and energy
the period efficiency
2014-2020, projects. New
approximately connections
43 billion HUF (~140were initiated,
million mainly
EUR) available public is institutions
support planned within and
the
subsection of the bnew
commercial KEHOPbtender
uildings, system
ut also for energy
residential efficiency development of District Heating systems, respectively
customers.
for converting to renewable sources for District Heating.
For the period 2014-‐2020, approximately 43 billion HUF (~140 million EUR) available support is
According to the National Energy Strategy 2030, the share of energy use from renewables for residential and institutional
planned within the subsection of the new KEOP tender system for energy efficiency development of
heating will increase from 12% to 32% and the use of renewable energy will double by 2030. The best framework for
District Heating systems, respectively for converting to renewable sources for District Heating.
renewable heat is District Heating.
According to the National Energy Strategy 2030, the share of energy use from renewables for
residential and institutional heating will increase from 12% to 32% and the use of renewable energy
will double by 2030. The best framework for renewable heat is District Heating.

The biggest existing barrier to the expansion of District Heating is still its poor competitive position
against natural gas heating. The existing cross-‐financing and supporting system does not allow real
competitiveness between the sectors.
The legally limited profit of District Heating production and supply restricts the possibility for
modernisation and expansion of District Heating systems.
HUNGARY

The biggest existing barrier to the expansion of District Heating is still its poor competitive position against natural gas
heating. The existing cross-financing and supporting system does not allow real competitiveness between the sectors.
The legally limited profit of District Heating production and supply restricts the possibility for modernisation and expansion
of District Heating systems.
The reduction of residential overhead costs, which is only partly compensated, decreases the profitability of District
Heating companies.
Building modernisation resulted in a decrease in heat demand in the residential and tertiary sector from 41 PJ to 31 PJ
between 2008 and 2013. This loss could not be compensated through connection of new customers and may result in
increasing of specific production costs.
Renewable electricity production receives a subvention through feed-in tariffs, but at present there is only a single
renewable energy CHP plant in Hungary. Renewable heat production for District Heating does not receive any subvention.
Moreover, carbon trading does not support cogeneration and District Heating.
In the next period until 2020, new heat production technologies can be implemented through available support from
different tenders. Mainly renewable and geothermal projects will be supported. Heat pumps are not expected to be
integrated due to the typically high supply temperature of District Heating systems in Hungary. According to the National
Energy Strategy and in the framework of building insulation and modernisation subvention programmes, all district
heated buildings are expected to be renovated until 2030. The supply temperature can be reduced after the renovation of
all buildings in a given heated district.
The National Energy Strategy forecasts a 40% share of natural gas in electricity production until 2030. This implies the
construction of new highly efficient gas-fired power plants. The possible sites are mainly within areas of existing power
plants, close to cities served by District Heating. This may lead to the construction of CHP plants based on District Heating.
This situation may drive a revitalisation of the CHP market in Hungary, after its recent decline.
In the period until 2020, the main renewable sources for District Heating will be biomass and geothermal energy. Hungary
has a good background in both areas. The biomass potential may be exhausted sooner, but many new geothermal energy
projects can be realised also after 2020.
Solar energy is used only as additional heat source for District Heating in a few buildings. Solar energy development is very
slow in Hungary, with few new photovoltaic projects, all below 500 kW.
There are no industrial plants which produce process heat for District Heating. New plants do not typically produce process
heat, but each has an energy plant for own use. However, none of them are linked to District Heating.

In 2007, the heat demand of the Komló District Heating system, supplying 5,050 dwellings, was 32 MW. Until 2012,
approximately 40% of dwellings were insulated and modernised, leading to a reduction in heat demand to 27 MW.
Previously, the District Heating system used an old coal-fired power plant with steam turbines. In the first decade of the
2000s, a gas-fired cogeneration plant was built, which supplied approximately 45-47% of the heat demand between 2007
and 2009. In 2010, a wood chip fired biomass heating plant was installed, leading to the decommissioning of the coal-fired
power plant. At present, the biomass plant supplies 75% of the total heat demand. The share of heat production from the
gas engines has been reduced to 17 % due to the low electricity market prices and the cheap biomass heat.
Thanks to the modernisation, District Heating related CO2 emissions decreased below 25% of the former volume in 2007.

HUNGARY
District Heating sources in Komló
350
350 5
5 300 19 10 14
19 14 7
300 10 23 28
7
Heat produc,on (TJ/year)
250 23 28
145
Heat produc,on (TJ/year)
250 98
145 142 134
98 Hot water boiler
200 134
142 Hot water boiler
200 192 Biomass boiler
150 192 202 Biomass boiler
Gas engines
150 215
136 202 Gas engines
215 Steam boiler and turbine
100 136
165 Steam boiler and turbine
100 141 149
165 149
50 141 80
50 50 45
80 25
0 50 45
25
0 2007 2008 2009 2010 2011 2012 2013
2007 2008 2009 2010 2011 2012 2013
District Heating related CO2 emissions in Komló
35,000
31,064
29,527 29,384
30,000
25,000 22,044
CO2 t/year
20,000
15,000
10,424
10,000 7,038
4,988
5,000
0
2007 2008 2009 2010 2011 2012 2013

HUNGARY
2 HEAT MARKET


16%
15%

HUNGARY
Source In %
Natural gas 68%
Coal 5%
Renewables* 12%
TOTAL 100%
12% 12%
5% District Heating
District h ea2ng
3%
Natural gas
Coal
Renewables*
68%
In Hungary, the majority of residential areas are connected to the natural gas network. Out of 4.3 million dwellings,
3.3 million are connected to the natural gas supply and 2.7 milion (63%) are heated by natural gas through central or
individual heating. The number of dwellings heated by District Heating was 648,000 in 2012 (15%). The share of District
Heating is only 12% because the average surface of the district heated dwellings is only 54 m2 (80% of district heated
dwellings are in prefabricated block buildings.) 84 % of District Heating is produced with natural gas. Heat pumps did not
appear in the data for residential heating in 2010, however the number of installations has been recently growing.

HUNGARY
3 DISTRICT COOLING
KEY FIGURES
2013 2011
Total installed District Cooling capacity (in MWth) 10 3
Total District Cooling sales (in TJ) 6.5 2.2
Development of installed District

Development Cooling capacity
of installed (in C
District MWth)
ooling
capacity (in MWth)
12
10
8
MWth
6
4
2
0
2013 2011

7.0
6.0
5.0
4.0
TJ
3.0
2.0
1.0
0.0
2013 2011

HUNGARY
2013
Source In % In TJ
Compression chilling 46% 3.138
Absorption chilling 54% 3.743
TOTAL 100% 6.881

There were four District Cooling systems in operation in 2013 with a total capacity of 10 MW. Three of them operated with
absorption chillers and one with an adsorption chiller. All of them have compression chillers to cover peak demand. One is
a tri-generation system with a separate cooling network within a residential park. After the end of the CHP feed-in tariffs,
CHP heat became too expensive and District Cooling does not get price or investment subventions. Due to this situation,
two CHP-based District Cooling systems have stopped.

OF DISTRICT COOLING
There is more and more demand for cooling in Hungary. However, the majority of new private public and commercial
buildings as well as some private houses are equipped with air conditioning. District heated apartment owners install
electric chiller boxes on the balcony.

At present there is no interest in District Cooling in Hungary due to high costs. Moreover, there is neither a price subvention
nor any investment supporting tender for District Cooling. At new District Heating connections (commercial and public
buildings), air conditioning is installed with electric driven chillers. Even in the district heated residential buildings, there
is only very small demand for air conditioning because of high overhead costs compared with low income of typical
residents. In the future, lower costs (e.g. on renewable or waste basis) could initiate the development of District Cooling
systems.

In the past two years, no new District Cooling systems were built in Hungary.
A tri-generation District Cooling system can be found in a residential park with 1,100 dwellings in Budapest, built in 2005.
It is made up of two gas engines, two boilers and one compression chiller for peak heating or cooling loads. It has a fully
automatic process control system and capacities of 2,108 kWe, 2,380 kWth and a cooling capacity of 4,000 kW.
4 COOLING MARKET
There are no statistics on the cooling market in Hungary. No law or other regulation applies to District Cooling, except
for an indirect sentence in the District Heating law. Consequently, there is no support or subvention system for District
Cooling. All air conditioning investments are done on an individual basis.

HUNGARY


Oil / Petroleum products 54 1 55
Natural gas 31,907 11,341 43,248
Renewables* 8,104 3,397 11,501
Waste 3,138 377 3,515
Other 168 380 548
TOTAL 46,370 15,776 62,146

70,000
60,000
50,000 Other
40,000 Waste
TJ
Renewables*
30,000
Natural gas

10,000
0
in TJ in TJ in TJ
CHP HEAT AUTOPRODUCTION IN INDUSTRIAL PROCESSES (OUTSIDE DISTRICT HEATING)


HUNGARY
National electricity production

2006 2007 2008 2009 2010 2011
Total TWh 35.9 40 40 35.8 37.4 36.2
CHP TWh 8 8.7 7.7 6.8 7.2 7.4
CHP with District Heating TWh 6.3 6.7 7 5.4 6.1 6.9
CHP heat for District Heating PJ 34.9 31.8 33 28.9 31.9

USE OF BUILDINGS
The average number of heating degree days (in 12/20-22°C system) is 3,000-3,300, but it may decrease to 2,700 in the
south-west and go up to 3,600 in the north-east. There are no mandatory heating temperature standards except in some
public buildings (as hospitals, etc.). Before the first District Heating law in 1998, District Heating companies were obliged
to keep 20-22°C indoor temperature in dwellings. Since then, they are obliged to satisfy customer demands according to
contracts.
A 2°C decrease in average heating temperature from 20°C to 18°C means approximately a 15% decrease in heat supply.
However, Hungarian customers are accustomed to 20-22°C.
Year 2006 2007 2008 2009 2010

Number of heating days 191 196 217 191 183
Heating season average temperature 4.4 6.2 7.4 5 4.5
Daily average temperatures in winter can reach -5°C, but can sometimes drop to -10°C in the north-east. The most extreme
daily average temperatures recorded were in 1987, with highest levels at -15°C/-20°C and lowest reaching -20°C/ -30°C
at night.
There is no recent data about the number of heating days and the heating season average temperature, but between 2011
and 2013 the heat demand decreased by 5-6%, which can be partly due to building modernisation and partly to milder
winters.

HUNGARY
ENERGY USE OF BUILDINGS IN 2013
Heating energy use for residential buildings 16,837 TJ

Heated volume 92,400,000 m3
Average heating energy use of buildings per m3 182 MJ/m3
Average inside height of dwellings 2.65 m
Average heating energy use of buildings per m2 483 MJ/m2
Warm water energy use for residential buildings 5,506 TJ
Average hot water energy use of buildings per m 2
158 MJ/m2
Association of Hungarian District Heating Enterprises (MaTáSzSz)

Tel: + 36 1 700 57 00
Fax: +36 1 463 60 63
www.mataszsz.hu
Email: mataszsz@mataszsz.hu
Contact Person: Dr. Péter ORBÁN
Email: porban@mataszsz.hu

2,290 MWth
TOTAL INSTALLED
DISTRICT HEATING
CAPACITY
100%
92%
OF DISTRICT HEAT
COMES FROM
DIRECT RENEWABLES
AND RECYCLED HEAT
OF CITIZENS
ARE SERVED BY
DISTRICT HEATING
ICELAND
SIGURJON N. KJÆRNESTED
ICELAND
1 DISTRICT HEATING
KEY FIGURES
2013 2011 2009

*District Heating system is a heat distribution network with its own heat source, technically independent from other networks, regardless of
2013 2011 2009

TOTAL 28,181 26,472 25,271

30,000
25,000
20,000
Services and other
TJ
5,000
0
2013 2011 2009
Euro exchange rate

used (annual average)
2013 5.15 5.62 162.38 ISK
2011 4.21 4.59 161.42 ISK
2009 3.34 3.57 172.67 ISK
*defined as national average weighted by delivery and excluding and including output taxes (VAT)
Iceland - 2 COUNTRY BY COUNTRY / 2015 Survey

ICELAND
HEAT SALES TURNOVER

(in TJ) Price (in EUR/GJ excl. VAT)* (in Million EUR)**
2013 28,181 5.15 145.1
2011 26,472 4.21 111.4
2009 25,271 3.34 84.4
** Heat sales turnover calculated with a simplified method as a product of the first and second column
2013
Source In TJ In %
In cogeneration
Geothermal 6,734 23.5 %
Geothermal 21,180 73.9 %
Renewable waste* 70 0.2 %
Renewable Electricity 670 2.3 %
TOTAL 28,654 100 %
*biodegradable fraction of municipal waste in accordance with art. 2e of the Renewables Directive

100%
90%
80%
70%
50%
Recycled Heat
40%
30%
20%
10%
0%
2013

ICELAND

During the last five years, the development of the use of direct geothermal has continued to increase, even though it is
already at a very high level. The search for sufficiently good boreholes in regions without direct geothermal for District
Heating has continued and will continue in the next few years.
As Iceland uses practically 100% renewable energy for District Heating, the role of District Heating in reaching all climate
change and energy objectives is obviously very important.

The most important legal framework for District Heating is the Energy Law, which dates back to 1967. In 2003, a special
piece of legislation was passed on the electricity market, but District Heating is still primarily subject to the Energy Law,
which provides certain rights to municipalities, including a monopoly right to run a District Heating system provided that
at least 51% of the organisation is publicly owned. The legislation also provides municipalities with rights to cross private
properties with pipes etc. if that is deemed necessary to provide the municipality or parts of it with geothermal space
heating. Damages to private property must of course be compensated. Hot water itself may be either in public or private
ownership (i.e. the land where the boreholes are placed), in which case the municipality will have to negotiate the price
for using the hot water or indeed purchase the land concerned. Other legislation which may have an impact on District
Heating includes several (mostly EU-related) environment related laws, such as the law on environmental assessment.

OF DISTRICT HEATING
District Heating does not face any real competition in Iceland. 92% of all houses use geothermal space heating and 3-4%
use electricity heated District Heating systems. The government sponsors search for geothermal energy in the so called
‘cold areas’, since geothermal space heating is most often economically favourable in the long run compared to electricity.
The government subsidises electric space heating, providing it with additional incentives to finance the search for
geothermal energy.

Insofar as any obstacles can be pointed out with regard to the expansion of District Heating in Iceland, the lack of
geothermal energy sources of sufficient quality in certain areas is the primary one along with the long distances between
buildings in some rural areas.
It is expected that heat pumps may be installed in some cases for colder areas.

ICELAND
2 HEAT MARKET

Total number of citizens 329,040

92%
2013 2011 2009

million m2
14.65 14.2 13.76
The direct use of geothermal in District Heating is by far the preferred way of delivering District Heating in Iceland and as
such faces no direct competition.

ICELAND

Some of the larger geothermal power plants in Iceland generate power together with providing District Heating energy.
The latest one, the Hellisheidi Power Plant, has been gradually expanded in recent years and now has an installed capacity
of 303 MWe and 133 MWth.
Iceland enjoys a much milder climate than its name and location adjacent to the Arctic circle would imply. A branch of
the Gulf Stream flows along the southern and the western coast greatly moderating the climate. However, this brings
mild Atlantic air in contact with colder Arctic air resulting in a climate that is marked by frequent changes in weather and
storms. Furthermore, this leads to more rainfall in the southern and western part than in the northern part of the island.
(Source: Icelandic Met Office)
Samorka – Icelandic Energy & Utilities

Sudurlandsbraut 48, 108 Reykjavík, Iceland
Tel: + 354 588 4430
www.samorka.is
Contact Person: Sigurjon N. Kjærnested
Email: samorka@samorka.is

77% 8,056MWth
TOTAL INSTALLED
DISTRICT HEATING
CAPACITY
OF DISTRICT HEAT
COMES FROM
DIRECT RENEWABLES
AND RECYCLED HEAT
200
DISTRICT HEATING
SYSTEMS IN ITALY
ITALY
ILARIA BOTTIO
ITALY
1 DISTRICT HEATING
KEY FIGURES
2013 2011 2009

3,807 2,951 2,404
(one way)
Average CO2 emissions per GWh of district heat generated 156.6 t/GWh 160.7 t/GWh 155.5 t/GWh
DISTRICT HEATING SALES TO CUSTOMERS (IN TJ)*
2013 2011 2009

Industrial sector 2,394 638 638
TOTAL 33,119 27,008 23,559
*Sales refer to energy delivered to customers

35,000
30,000
25,000

TJ
Residen:al sector
10,000
5,000
0
2013 2011 2009
Italy - 2 COUNTRY BY COUNTRY / 2015 Survey

ITALY
4,000 35,000
3,500 30,000
3,000
25,000
Total sales (in TJ)

2,500
20,000
2,000
15,000
1,500
10,000
1,000
500 5,000
00 0
2013 2011 2009
Total sales
2013 2011 2009

In cogeneration
Coal and coal products 944 2.4 % 944 3% 1,001 3.6 %
Natural gas 16,411 41.6 % 13,002 41.8 % 11,184 39.9 %
Waste** 1,009 2.6 % 908 2.9 % 505 1.8 %
Geothermal 864 2.2 % 458 1.5 % 456 1.6 %
Renewable waste*** 3,027 7.7 % 2,724 8.8 % 2,724 9.7 %
Heat pumps (output) 243 0.6 % 117 0.4 % 5
Industrial surplus heat 23 0.1 % 97 0.3 % 87 0.3 %
Others
Natural gas 9,071 23 % 7,211 23.2 % 6,803 24.3 %
TOTAL 39,455 100% 31,122 100% 28,030 100 %

**”waste” in cogeneration includes both biodegradle fraction and non-renewable waste

ITALY

100%
90%
80%
70%
Other
60%
Direct Renewable
50%
Recycled Heat
40%
30%
20%
10%
0%
2013 2011 2009
Sources of thermal energy fed into District Heating networks (in TJ)
Sources of thermal energy fed into District HeaAng networks (in TJ)
45,000
40,000
35,000
30,000 Boiler fossil
25,000 HP
TJ
20,000 renewable
15,000 fossil CHP
10,000
5,000
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

ITALY
Sources of heat fed into District Heating (2013)
Sources of heat fed into District HeaHng (2013)

Boiler fossil
CHP RES 23.2%
13.9%
Boiler RES
5.8%
Geothermal
2.2%
Heat pumps
0.6%
Heat recovery
0.1%
CHP fossil
54.2%
Energy sources of District Heating systems (in ktoe)
Energy sources of District Hea=ng systems (in ktoe)

2,000
1,800
Solar thermal
1,600
Heat recovery
1,400
Oil & oil products
1,200 Geothermal
ktoe
1,000 Electricity (PE)*

800 Coal
600 Bioenergy
400 Waste
200 Natural gas
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
* Before 2009 the consumption of primary energy to cover the District Heating electricity needs was broken down into individual items (natural
gas, coal, etc.)
The main fuel used for District Heating systems has been natural gas. It accounts for 77.4% of the total fuel used for
District Heating. Nevertheless, the renewable energy share is increasing. In particular, waste recovery had a significant
development in the last few years. On the other hand, geothermal and solar sources have not developed any further.

ITALY
The development of the Italian District Heating sector is very recent. Since 1972 it has kept an upward trend, but the share
of the people served by District Heating is only 5.6%. However, if we consider the 11 regions where District Heating systems
are found, the share rises to 9.4%. Moreover, the space heated by District Heating is continuously growing, especially in
the residential sector.
Evolution of space heating by District Heating [million m3]
Evolu0on of space hea0ng by District Hea0ng [million m3]

320
300
280
260
240
220
200
180
160
140
120
100
80
60
40
20
0
1978
1988
1998
2008
1972
1974
1976
1980
1982
1984
1986
1990
1992
1994
1996
2000
2002
2004
2006
2010
2012
Years
District Heating space heating by sector (million m3)
District Hea,ng space hea,ng by sector [million m3]

250
200
150 2013
100 2010
50
0
Residen,al Service Industrial

ITALY
At the end of 2013, District Heating systems can be found in 199 Italian cities. Finally, the framework resulting from data
analysis is now sufficiently complete and comprehensive, including for the first time most biomass networks in the Alps,
which were previously not taken into account in the overview.
2013 2011 2009

million m2 111.9 97.54 83.9
In the National Energy Strategy report, the Italian government emphasised that the energy sector has a key role in the
economic growth of the country. Therefore, one of the most important challenges for the future is to ensure that energy
becomes more competitive and sustainable. The action areas identified are:
• Energy consumption;
• Electric infrastructure and market;
• Natural gas infrastructure and market;
• Oil products refining and distribution;
• Oil and gas research and extraction.
To achieve the aims set out above, the government identified seven priorities for the near future:
1. Energy efficiency;
2. Competitive gas market and South-Europe hub;
3. Sustainable development of renewable energy;
4. Development of electric infrastructure and market;
5. Restructuring the refining and fuel distribution network;
6. Sustainable production of national hydrocarbons;
7. Modernisation of the governance system.
The report did not specifically analyse the heat market and the role of District Heating in the broader political strategy is
marginal.

A national legislative framework for District Heating does not exist in Italy. There were many expectations from the
transposition of the Efficiency Energy Directive, however the role of District Heating in the Italian law is very limited. The
government decided to introduce rules on the District Heating service regulation procedure. The application rules have
not yet been defined at the time of the publication of this survey.

OF DISTRICT HEATING
There are very few incentives in Italy. A credit tax of 21.93 Euro/MWth is granted to end-customers connected to a
biomass and/or geothermal District Heating network and, for the same type of District Heating, a further contribution of
21.00 Euro per MW installed in substations, in order to cover part of the connection costs.
In the past, several regions promoted the development of District Heating networks while also providing significant capital
contributions; however, this support no longer exists.

ITALY

Throughout the years, many Italians consider that District Heating is an old technology and that individual installations
are better. Many Italian environmental associations believe that District Heating is a system that does not reduce the
environmental impact, costs more and does not allow freedom of choice.
Over the next 10-20 years, significant developments are expected from:
• The exploitation of geothermal energy, widely available in Italy, especially for direct use in medium/low temperature
systems;
• The development of Waste-to-Energy plants for heat recovery;
• The exploitation of solar energy;
• The development of heat pumps, especially using sea water, consistent with the price of electricity.

In Cesano Boscone (Lombardy Region) a project was launched with the aim to reduce the environmental impact of space
heating. Up to now, the agricultural company “Prometheus Energia” installed a CHP system based on Organic Rankine
Cycle (ORC, with 1 MWe and 5.2 MWth) and a boiler, both biomass fired, which serve about 1,800 buildings (160,000 m3)
in the Giardino district by a District Heating network 4 km long. A back-up gas boiler was also installed.
The municipality has signed an agreement with the company “Rinnova Green Energy” for the supply of biomass within 80
km (short chain). In 2013, this plant used only biomass (and auxiliary electricity) as energy source to provide the 8 GWh
required heat. The Italian District Heating Association estimated that this reduced fossil fuel primary energy demand with
about 810 toe and avoided 2,000 tonnes of CO2 emissions.
2 HEAT MARKET


ITALY

6%
Source In %
District Heating 2%
Natural gas 58%
Electricity 5%
Renewables* 24%
TOTAL 100%

ITALY
Energy Energy
sources used
sources usedto
to ssatisfy
a/sfy heat
heat demand demand
2%
24%
District Hea2ng
Natural gas
Electricity**

59%
Renewables*
5%
*includes biomass (about 95%) and solar thermal (5%)

**includes electric boiler and (electric) heat pump
The main energy source used in Italy for space heating and hot water generation is natural gas, mainly for individual
boilers. In the Alps and the Apennines mountains, biomass plants (whether used in District Heating or individually) are
becoming increasingly widespread.
3 DISTRICT COOLING
KEY FIGURES
2013 2011 2009

Total installed District Cooling capacity (in MWth) 182.33 159.8 153.4
Total District Cooling sales (in TJ) *
365.76 339.84 461.16
67.2 60 58
*Sales refer to energy delivered to customers

ITALY

Development of installed District Cooling
capacity (in MWth)
200
150
MWth
100
50
0
2013 2011 2009
Development of District
Development of C ooling
District sales
Cooling sales(in
(inM TJ)Wh)
500
400
300
TJ
200
100
0
2013 2011 2009
District Cooling trench length development (one way in km)

District Cooling trench length development (one
way in km)
80
70
60
50
km
40
30
20
10
0
2013 2011 2009

ITALY
TYPE OF PRODUCTION USED FOR GENERATING DISTRICT COOLING
2013 2011 2009

Compression chilling 0.451 170.6 0.372 127.8 0.287 133.6
Absorption chilling 0.549 208 0.628 215.6 0.713 332.3
Evolution of cooling energy served by District Heating & Cooling [TJ]

Evolu/on of cooling energy served by District Hea/ng &
Cooling [TJ]
500
450
400
350
300
250
200
150
100
50
0
2008 2009 2010 2011 2012 2013
Years
District
District Heating & Cooling spaceHcooling
ea1ng
by & Cooling
sector space
in the year 2013c[million
ooling m3]
by sector in the year 2013 [million m3]
8
7
6
5
4
3
2
1
0
Residen1al Services Industrial
There are very few District Cooling systems in Italy. The constant trend also means that there is no expected development
even in the coming years.

ITALY
4 COOLING MARKET
Over the last five years, the ratio of electricity used for comfort cooling varied from 16% in 2011 and 21% in 2012, with a
yearly average of 20%.


Natural gas 51,617 512,451 564,068
Renewables* 2,808 86,415 89,223
Waste 9,068 12,509 21,576
Other 199,294 199,294
TOTAL 65,401 867,311 932,712

1,000,000
900,000
800,000
700,000 Other
600,000 Waste
TJ
500,000
Renewables*
400,000
Natural gas
300,000
200,000
100,000
0
in TJ in TJ in TJ

ITALY

867,311 TJ
Evolution of the electricity produced by CHP in the electricity system

Evolu2on of the electricity produced by CHP in the
electricity system
60% 120,000
Net electricity produc.on by CHP [GWh]

50% 100,000
Share of EE by cogenera.on
40% 80,000
30% 60,000
20% 40,000
10% 20,000
0% 0
2008 2009 2010 2011 2012 2013
CHP share CHP produc2on
HEATING DEGREE DAYS
Degree Days of Italian regional capital cities (DPR 412/93), bubble size as a function of inhabitants
Degree Days of Italian regional capital ciKes (DPR 412/93),
bubble size as a funcKon of inhabitants
3,500
Trento
3,000 Aosta
Venezia L'Aquila Potenza
2,500 Bologna Perugia
Degree Days
Torino Campobasso
2,000 Ancona
Milano Trieste Catanzaro
1,500 Firenze Napoli
Cagliari
1,000 Genova
Roma Bari
500
Palermo
0

ITALY
The Italian law DPR 412/93 divides the country in 6 climatic areas. The average Italian indoor temperature is 20°C.
• Area A: numbers of heating degree days <600;
• Area B: numbers of heating degree days >600 and <900;
• Area C: numbers of heating degree days >900 and <1,400;
• Area D: numbers of heating degree days >1,400 and <2,100;
• Area E: numbers of heating degree days >2,100 and <3,000;
• Area F: numbers of heating degree days >3,000.

Italy is characterised by three main climate zones:
• the North, corresponding to the Pianura Padana area, has similar characteristic to central Europe;
• the Centre, although similar to the North, has slightly higher temperatures over the year;
• the South, with less variations between winter and summer.
Italian District Heating Association (Associazione Italiana Riscaldamento Urbano - AIRU)

Piazza Luigi di Savoia, 22 - 20124 Milano
Tel: +39 02 45 41 21 18
Fax: +39 02 45 41 21 20
www.airu.it
Contact Person: Ilaria Bottio
Email: segreteria.generale@airu.it

4,241
MWth
TOTAL INSTALLED
DISTRICT HEATING
CAPACITY
50,637 MILLION
139
M2
OF DISTRICT HEATED
FLOOR SPACE
DISTRICT HEATING
SYSTEMS IN JAPAN
JAPAN
YUICHI HONDA
JAPAN
1 DISTRICT HEATING
KEY FIGURES
2013 2011 2009

672 656 736
2013 2011 2009

TOTAL 22,902 21,958 22,997

25,000
20,000
15,000
Services and other
TJ
10,000 Residen7al sector
5,000
0
2013 2011 2009
Japan - 2 COUNTRY BY COUNTRY / 2015 Survey

JAPAN
800 25,000
700
20,000
600
Total sales (in TJ)

500 15,000
400
300 10,000
200
5,000
100
-‐0 0
2013 2011 2009
Trench length in km for transport and distribuBon network (one way)
Total sales
HEAT SALES TURNOVER*

(in TJ) Price (in EUR/GJ excl. VAT) (in Million EUR)**
2013 22,902 48.17 1,103.2
2011 21,958 56.77 1,246.6
2009 22,997 48.19 1,108.2
** Yearly average currency exchange rate: 131.18 JPY/EUR (2013), 112.62 JPY/EUR (2011), 131.7 JPY/EUR (2009)
DISTRICT HEATING FLOOR SPACE
2013 2011 2009

million m 2
50,637 49,519 48,886

JAPAN
Japan Heat Supply Business Association

Toranomon YHK Bldg. 2-3-20, Toranomon, Minato-ku, Tokyo, 105-0001, Japan
Tel: +81 3 3592 0852
Fax: +81 3 3592 0778
Contact Person: Yuichi Honda, General Manager, Research & Planning Department
Email: dhchonda@oak.ocn.ne.jp
The Japan Heat Supply Business Association (JHSBA) was established in 1972 and was upgraded to the
legal status of a corporate judicial body in 1992 upon the 20th anniversary of its establishment. The objectives
of the association are to contribute to economic growth and to improve cultural life through District Heating
and Cooling activities. District Heating and Cooling systems are expected to play an important role as an
indispensable type of infrastructure in the following fields: environmental conservation by preventing air
pollution, urban development, creation of a comfortable living space by introducing energy-saving systems,
and use of underutilised energy sources.
It is predicted that District Heating and Cooling business will develop as more and more renewable energy, waste
heat, underutilised energy, etc. are used to prevent global warming.
JHSBA gets and summarises the data of all Japanese District Heating and Cooling utilities in each fiscal year,
from the beginning of April to the end of March. These District Heating and Cooling utilities consist of all utilities
stipulated in the Japanese Heat Supply Business Act, namely having a heating capacity of 21 GJ/h or more,
supplying two or more buildings by pipelines, etc. Other small utilities or building-wide individual heating or
cooling are not included in the data provided.

29,961
MWth
TOTAL INSTALLED
DISTRICT HEATING
CAPACITY
111
DISTRICT HEATING
SYSTEMS
IN KOREA
7,748,000
DISTRICT HEATING
KOREA
WONJIN CHANG
KOREA
1 DISTRICT HEATING
KEY FIGURES
2013 2011 2009

not available not available 2,037
2013 2011 2009

TOTAL 172,292 187,024 201,389

250,000
200,000
TJ
Industrial sector
100,000
Residen:al sector
50,000
0
2013 2011 2009
Korea - 2 COUNTRY BY COUNTRY / 2015 Survey

KOREA
EUR/GJ (Excl. VAT) Euro exchange rate used (annual average)

2011 12.2 1,541
2009 12.14 1,768
HEAT SALES TURNOVER

2011 187,024 12.2 2,282
2009 201,389 12.14 2,445
Fuel Consumption for District Heating (Unit: toe)
2005 2007 2009 2011 2013
1,405,283 1,517,991 1,864,154 3,267,663 4,380,280
LNG
(71%) (77.3%) (83.6%) (34.44%) (39.3%)
3,088,425 2,125,565
Coal
(32.55%) (19.1%)
397,545 267,867 165,710 48,647
LSWR (Low Sulfur Waxy Residue)
(20.1%) (13.6%) (7.4%) 1,032,811 (0.4%)
152,383 132,000 165,879 (10.89%) 160,941
B-C Oil (Bunker C oil)
(7.7%) (6.7%) (7.4%) (1.4%)
8,400 33,442 26,737 26,363
Landfill Gas
(0.4%) (1.7%) (1.2%) 2,099,473 (0.2%)
16,582 13,333 7,691 (22.12%) 4,405,804
Others
(0.8%) (0.7%) (0.3%) (39.5%)
1,980,193 1,964,633 2,230,171 9,488,348 11,147,600
TOTAL
(100%) (100%) (100%) (100%) (100%)
From 2011, the fuel consumption table includes figures for the industrial sector (up until 2009, the industrial sector was
excluded).
The total fuel consumption for District Heating in 2013 amounted to 11,147,600 toe. In the residential and services sector,
LNG remained a major fuel (90.8%) in 2013. The total fuel use for District Heating was equivalent to 4% of Korea’s total
primary energy use.

KOREA

The table below presents the heat sales of the District Heating sector over the last six years (2008-2013). There is no
constant trend in terms of heat sales for the District Heating sector although the number of customers has increased every
year. Comparing heat sales in 2013 to those in 2008 (excluding the industrial sector), their volume increased by 37.5%.
Moreover, the number of households connected to District Heating has continuously increased. On the other hand, if the
industrial sector is to be taken into account, heat sales have slightly decreased.
District Heating sales (2008-2013)
2008 2009 2010 2011 2012 2013
Total households
14,168 14,456 14,677 15,007 15,305 15,628
(in thousands of households)
Number of households connected
to District Heating 1,736 1,888 2,008 2,178 2,200 2,306
The rate of prevalence (%) 12.3 13.1 13.7 14.5 14.4 14.8
Heat sales of District Heating
sector (TJ/y) 69,819 71,548 81,165 90,255 95,275 95,966
(excluding industrial sector)
Heat sales of District Heating
sector (TJ/y) 197,202 201,389 171,851 187,024 178,843 172,161
(including industrial sector)
THE ROLE OF DISTRICT HEATING IN DELIVERING CLIMATE AND ENERGY OBJECTIVES

The government of the Republic of Korea set the reduction of CO2 emissions as one of its goals. In September 2009,
it set the aim to reach a 30% reduction rate by 2020, compared to a business-as-usual scenario. This is the maximum
recommended rate for developing countries agreed by the UN Framework Convention on Climate Change. It led to the
creation in April 2010 of an implementation plan (Basic Act on Low Carbon Green Growth) demonstrating Korea’s firm will
to reduce greenhouse gas emissions. An efficient method to reach the national objective was the expansion of CHP plants.

In the 1970s, there were two global energy crises. They had a huge impact on Korea, which had to import oil from other
countries. As a result, the Korean government prepared ‘The law on the Rational Use of Energy’ in 1979. District Heating
was introduced to the industrial sector before the law and was then applied to the residential and commercial sectors
thanks to the legal requirements.
Subsequently, a law on integrated energy supply was passed.
Through the government’s Integrated Energy Supply Policy (IESP), the most significant support for CHP uses urban
planning policy to designate new developments as Integrated Energy Supply Areas (IESAs), thereby creating a captive
market for District Heating CHP.
Other financial incentives also aim to promote a wider use of CHP:
• Tax incentives and low-interest loans are available for businesses installing CHP equipment;
• CHP plants over 100 MWe can buy natural gas directly from the Korea Gas Corporation (KOGAS) at the wholesale
price;
• Renewable electricity, including biomass and biogas CHP, is eligible for feed-in tariffs;
• Recently, the government has also become interested in District Cooling to cut the peak load for electricity during
the summer; CHP has also been used to balance electricity needs throughout the year.

KOREA

OF DISTRICT HEATING
Long-term District Heating supply planning in Korea is a key driver for the development of District Heating. It may be
summarised as follows. By 2018, the total number of new households connected to District Heating will be 3,460,000
households, an increase by 48.8% compared to 2013.
Long-term supply planning – District Heating
2014 2015 2016 2017 2018
Total households
1,921.7 1,954.7 1,987.5 2,019.7 2,051.6
New connections to District Heating
11.3 17.7 31.8 27.5 26.1
Number of households connected to
District Heating 243.6 261.3 293.1 320.5 345.8
The rate of prevalence (%) 12.7% 13.4% 14.7% 15.9% 16.9%
Wholesale fuel price for CHP

Since the amendment of the Oil Business Act in 2001, eligible large gas users can import LNG themselves or buy gas from
KOGAS (Korea Gas Corporation) at wholesale prices. This has helped create liquidity in the market and shielded large
gas users from high retail prices. KEMCO (Korea Energy Management Corporation) is responsible for implementing this
support.
In this scheme, CHP plants over 100 MWe are ‘eligible consumers’. This means that individual plants can buy their fuel
through bilateral supply contracts with KOGAS, while companies with a portfolio of plants, such as the KDHC, can also
import LNG themselves. Access to the wholesale gas market has made systems over 100 MWe more attractive than
smaller plants. Many plants just below the threshold are therefore considering expanding their capacity to enable them
to qualify.

As new apartments under construction are gradually completed, the new demand for District Heating is decreasing. And
when an apartment complex is built, competition and conflicts arise between individual heating and District Heating.
On the other hand, the following barriers can be observed:
Regulated Electricity Prices
The existing electricity tariff structure makes it more difficult for CHP project development for the following reasons:
• The industrial CHP market has flat tariffs that do not recognise or reward efficiency measures, so that industrial
CHP is often not economically viable;
• District Heating and Cooling CHP and commercial CHP are less affected, because commercial and residential heat
revenues and electricity prices are higher than for industries, and can therefore compensate for high gas prices;
• The government intends to slowly increase electricity prices and reduce differences between tariffs. Tariff reform
could also come in the medium term - the government has asked KEEI to look into the options.
High LNG and City Gas Prices
Gas prices in Korea have increased rapidly since 2007, making the economic case for CHP even less appealing. As South
Korea imports almost all its gas, tariffs will continue to follow the upward trend of global market prices. As a result, the
situation is unlikely to improve.
Heavy fuel oil used for CHP used to be exempt from import duty, but this was abolished in February 2008. The KDHC asked
the government to reinstate the measure and to extend it to LNG.
Monopoly in the Gas Market
The KOGAS monopoly in the wholesale market and the regional monopolies of city gas companies can prevent gas prices
falling as fast as they might otherwise do. This is in part offset by the strict regulation on the profit margins of gas suppliers.

KOREA
Renewable Energy Feed-in Tariff Provides no Incentive for CHP

CHP systems using biomass or biogas are eligible for the feed-in tariffs for renewable energy, but receive the same price
as power-only generation. This gives plant developers little incentive to make the additional investment necessary for
installing CHP systems.
Urban Air Quality Regulation
Urban air quality regulation bans the burning of solid or liquid fuels in urban areas. Only gas CHP is allowed in cities (solid
biomass-based systems are not). High gas prices and emission reduction targets have led to calls to exempt biomass CHP
from the regulation, provided that systems meet emission standards.
A comprehensive energy efficiency improvement is expected to be driven by the development of thermal energy
networks, thermal Smart Grids and the optimisation of thermal storage technology and operation systems in order to
manage thermal energy.
2 HEAT MARKET


15%

KOREA
2013 2011 2009

million m 2
192,551 181,863 157,648
Koreans prefer District Heating mainly because its fees are cheaper than those for individual heating. The country
implements policies so that price fluctuations are limited in spite of international oil price increases, allowing heating fees
to remain stable. As such, the preference for District Heating is relatively higher.
3 DISTRICT COOLING
KEY FIGURES
2011 2009
Total installed District Cooling capacity (in MWth) 194 167
Total District Cooling sales (in TJ) 1,258 1,319
District Cooling trench length in km for transport and distribution
33 20
network (one way)
Available District Cooling storage (in TJ) 76.3 44
Development of installed
Development District
of installed DistrictC ooling
Cooling capacity
capacity (in
(in MWth)
MWth)
250
200
MWth
150
100
50
0
2011 2009

KOREA

1,400
1,200
1,000
800
TJ
600
400
200
0
2011 2009

District Cooling trench length development
(one way in km)
40
30
km
20
10
0
2011 2009

90
80
70
60
50
TJ
40
30
20
10
0
2011 2009

KOREA

The use of District Cooling in Korea has increased steadily over the last six years (2008-2013).
Air-conditioning levels between 2008 and 2013 have rapidly increased at an average annual growth rate of 17.3%.
2008 2009 2010 2011 2012 2013

Total number of buildings connected to
District Cooling 492 532 555 630 697 810
(by absorption chiller using district heat)
Total installed District Cooling capacity
289,974 319,437 333,722 373,495 461,369 540,773
(in US refrigerating tonnes)

OF DISTRICT COOLING
The demand for cooling is increasing based on rising global temperatures and due to the increasing cooling demand
from office buildings. District Heating companies need to improve the operating rate for their facilities. The peak load
of electricity consumption in summer is a national problem in Korea. Therefore, companies are trying to develop District
Cooling in various ways, using District Heating. Another key issue is the optimal heat tariff for cooling.
The long-term supply planning of District Cooling in Korea, dating from 2013, is summarised below. By 2018, the total installed
District Cooling capacity is expected to be 1,150,679 US refrigerating tonnes, an increase by 124% compared to 2013.
Moreover, new households are equipped with desiccant air-conditioners and absorption refrigerators.
Long-term supply planning – District Cooling
2013 2014 2015 2016 2017 2018

Total number of buildings connected to
849 974 1,117 1,264 1,421 1,527
District Cooling
New connections to District Cooling
1,000 1,000
(number of households)
Number of households connected to
735 735 735 735 1,735 2,735
District Cooling
Total installed District Cooling capacity
513,608 605,165 755,922 858,326 1,006,193 1,150,679
(in US refrigerating tonnes)

The climate in Korea is hot from June to August and cold from November to February. Consequently, there is only a three-
month period when District Cooling is needed. The services and industrial sector is therefore supplied by District Cooling
and Heating, while in the residential sector individual cooling systems are popular (air-conditioners based on electricity).
Relatively low electricity tariffs can also be a barrier to the expansion of District Cooling.

The desiccant District Cooling technology is the one preferred in Korea. It is a system of air conditioning in residential areas
using the hot water generated at the centralised cogeneration plant or incinerator, via the existing heating pipes. The hot
and humid indoor air becomes dry as it runs through the desiccating rotor, which removes humidity and moisture from
the air before supplying it indoor. The water absorbed by the desiccating rotor is discharged via the regenerator unit. The
desiccating rotor is continuously opening as it repeats the absorption-regeneration cycle. Also, the characteristics of the
desiccant cooling system can be found below.

KOREA
Energy saving: the amount of electricity used (compared with an electric air-conditioner which has the same capacity
- cooling capacity 7 kW) is 48% lower than electric air-conditioner:
Desiccant District Cooling Electric air- conditioner

Amount of electricity used 1.39 kW 2.66 kW
Improvement of indoor environment / health enhancement:

a. 5 merits: cooling, desiccation, ventilation, anti-bacterial effect and deodorisation;
b. Analysis of indoor air pollutant reduction - after 3 hours, 74% of VOC (Volatile Organic Compound), 90% of
Formaldehyde, 97% of fine dust were removed;
c. It was confirmed that this system reduces indoor air pollution for vulnerable facilities (e.g. day care centres,
kindergartens) and is very effective.
4 COOLING MARKET
Offices and public buildings have three different types of air conditioning: individual air-conditioning (air conditioners
based on electricity), gas-propelled absorption refrigerators and District Cooling. District Cooling is less competitive due
to its high price in facility investment. As such, there is a 70% discount on District Heating fees during the summer. Also, the
government covers 10% of the facility investment of absorption refrigerators installation. Government aid is forecasted to
continue in the future in order to expand District Cooling.

SHARE OF CHP IN DISTRICT HEATING GENERATION IN 2013: 66.5%
CHP HEAT AUTOPRODUCTION IN INDUSTRIAL PROCESSES (OUTSIDE DISTRICT HEATING): 163,276 TJ
CHP 2012 2013

Fuel Consumption [toe] 9,032,871 (84.1%) 8,757,726 (78.6%)
Heat Production [Gcal] 43,696,661 (63.2%) 49,637,241 (66.5%)
In 2012, a power supply crisis occurred making power reserve margins a critical issue. At most LNG power plants, including
CHP, the turbines were operated around the clock in order to cover the gaps in power supply. As a result, the local SMP
(System Marginal Price) was at a record 158.9 South Korean Won per kWh, compared to the average 126.6 South Korean
Won in 2011.
In 2013, the SMP (System Marginal Price) remained at a high rate of 152.1 South Korean Won per kWh. The power crisis
was alleviated compared to 2012, however, the rate is still unstable and due to this issue the CHP operation level is at a
relatively high rate as required by the Korea Power Exchange.

KOREA
NUMBER OF HEATING DEGREE DAYS IN 2013 : 2,968
(compared to 2,885 in 2011)

Annual temperature in Seoul in 2013:
Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Temperatures in °C -3.4 -1.2 5.1 10.0 18.2 24.4 25.5 27.7 21.8 15.8 6.2 -0.2
As Korea is geographically located in the middle northern latitude, it has four distinctive seasons. But the average annual
temperature is rising due to global warming.
Korea District Heating & Cooling Association

Suseo-dong, Gangnam-gu, Seoul 135-884, Korea
Tel: +82 2 6959 8944
Fax: +82 2 6959 8949
www.kdha.co.kr
Contact Person: Wonjin Chang
Email: kdha2004@hanmail.net

1,348ktoe
TOTAL ANNUAL
ENERGY
CONSUMPTION
46%
212
MWth
BIOMASS ACCOUNTED
FOR 46% OF THE TOTAL
ENERGY USED IN
TOTAL INSTALLED THE HOUSEHOLD SECTOR
DISTRICT HEATING
CAPACITY
KOSOVO
SKENDER KABASHI
KOSOVO
1 DISTRICT HEATING
KEY FIGURES
Total District Heating capacity in 2013: 212.5 MWth
Annual energy consumption for the republic of kosovo for the period 2011-2013
Overview of consumption of all energy sources (ktoe)
Source (ktoe) 2011 2012 2013
Coal 86.65 68.17 99.7
Petroleum products 605.14 561.18 574.88
Biomass 241.93 247.5 253.19
Biofuel 0.13
Electricity 396.8 384.54 411.97
Solar energy 0.63 0.69 1.29
Derived heat 3.04 3.04 7.59
TOTAL 1,334.32 1,265.52 1,348.61
Overview of the consumption of all energy products (ktoe)
Overview of the consump3on of all energy products (ktoe)

1,600
1,400
Derived heat
1,200
Solar energy
1,000
Electricity
ktoe
800
Biofuel
600 Biomass
400 Petroleum products
200 Coal
0
2011 2012 2013
Petroleum products represent the most used energy source between 2011-2013, with 42.6% of the overall consumption.
Electricity came second, with 30.5% of energy consumption, followed by biomass (18.8%), coal (7.4%), derived heat (0.6%)
and solar energy (0.1%). Analysis of all the energy sources shows that the consumption of petroleum products in 2013
came to 574.88 ktoe, equivalent to a 5% consumption decrease compared to 2011, followed by electricity (411.97 ktoe)
with a 3.82% increase compared to 2011, biomass (253.19 ktoe) with a 4.6 % increase, coal (99.7 ktoe) with a 15.06%
increase, derived heat (7.59 ktoe) with a 250% increase and solar energy (1.29 ktoe) with a 105% increase. Biofuel was no
longer used as energy source, thus taking a 100% fall.
Kosovo - 2 COUNTRY BY COUNTRY / 2015 Survey

KOSOVO
CONSUMPTION OF DERIVED HEAT

District Heat sales to customers (in ktoe)
ktoe 2011 2012 2013
Residential sector 2.03 2.04 5.04
Services and other 1.01 1 2.55
TOTAL 3.05 3.05 7.59

8
7
6
5
ktoe
4 Services and other
3 Residen9al sector
2
1
0
2011 2012 2013
The total derived heat in 2013 was 7.59 ktoe. Households are the main consumer category with 5.04 ktoe (or 66.4%) of the
total heating consumption followed by the services sector with 2.55 ktoe (or 33.6%). The following table displays the level
of consumption of derived heat in each economic sector.
HOUSEHOLD SECTOR CONSUMPTION

Household sector consumption - all energy sources
The energy consumed in households is used for space heating, air conditioning, domestic hot water, cooking, lighting and
for electrical appliances. The energy consumed by the household sector in 2010 came to 461.67 ktoe, an increase of 1.2%
by comparison with 2009.
OVERVIEW OF USE OF ALL ENERGY SOURCES IN THE HOUSEHOLD SECTOR (KTOE)
Source 2011 2012 2013

Coal 23.05 22.26 23.7
Biomass 226.125 218.39 232.46
Electricity 218.76 211.28 224.9
Solar energy 0.49 0.474 0.504
TOTAL 490.51 473.73 504.25

KOSOVO
Energy sources used by households (in ktoe)
Energy sources used by households (in ktoe)

600
500 Derived heat
400 Solar energy

Electricity
ktoe
300
Biomass
200 Petroleum products
100 Coal
0
2011 2012 2013
The most consumed energy source in the household sector in 2013 is biomass, with a consumption rate of 232.5 ktoe, i.e.
46.1% of the total energy consumed by the sector. This represents an increase of 2.8% by comparison to 2011, followed
by electricity with 224.9 ktoe (44.6% of total consumption), an increase of 2.8% in comparison to 2011, then petroleum
products with 18.153 ktoe (3.60% of total consumption), an increase of 2.79% in comparison to 2011, coal with 23.70 ktoe
(an increase of 0.08% in comparison to 2011), derived heat with 5.04 ktoe (1% of total energy consumption), an increase
of 2.85% in comparison to 2011 and solar energy with 0.504 (0.1% of total energy consumption) an increase of 2.85% in
comparison to 2011. The low share of derived heat in the total energy consumption in the household sector is related to:
collective outages of the District Heating supply to citizens, especially by ‘Termokos’, as a result of measures taken against
non-paying consumers, and a lack of fuel to generate District Heating (heavy oil).
CONSUMPTION IN THE SERVICE SECTOR

Overview of energy consumption in the service sector, all sources (ktoe)
Source (Ktoe) 2011 2012 2013

Coal 4.18 4.1 4.4
Biomass 6.7 6.56 7.03
Electricity 60.98 59.71 64.056
Solar energy 0.84 0.82 0.88
TOTAL 119.57 117.09 125.6

KOSOVO
Consump,on of aofll allenergy

Consumption sources
energy sources in the in services
the services sector (in
sector (in ktoe)
ktoe)
140
120
100 Derived heat

Solar energy
80
ktoe
Electricity
60
Biomass
40
Petroleum products
20 Coal
0
2011 2012 2013
As with the household sector, the service sector uses energy for space heating, air conditioning, hot water, cooking in
restaurants, hotels, healthcare facilities, lighting and electrical appliances. According to survey results and official data
from Kosovo Coal j.s.c., in 2013, the services sector consumed a total of 125.6 ktoe. The service sector can be further
divided into two key sub-sectors: public and private, both of which contains further branches, such as hotel and tourism
services, healthcare, trade, education, handicrafts, consultancy, culture and sports, public services, etc. In terms of
derived heat, similar to the household sector, the services sector has not received sufficient heating due to collective cuts
in the District Heating supply to consumers and a lack of heating fuel (heavy oil). In 2013, the preferred energy source in
the services sector was electricity, with 64.056 ktoe (51% of total consumption), followed by petroleum products with
46.6 ktoe (37.1 %), biomass with 7.03 ktoe (5.6 %), coal with 4.4 ktoe (3.5%), derived heat with 2.64 ktoe (2.1%) and solar
energy with 0.88 ktoe (0.7%).
GENERATING CAPACITY OF KOSOVO HEATING COMPANIES
Termokos – Prishtina Ngrothtorja – Gjakova Termomit – Mitrovica

Installed Capacities Installed Capacities Installed Capacities
2 units of 58 MW 116 MW 1 unit of 18.6 MW 18.6 MW 1 unit of 8.3 MW 8.3 MW
1 unit of 29 MW 29 MW 1 unit of 20 MW 20 MW
2 units of 7.5 MW 15 MW
1 unit of 4 MW 4 MW
2 units of 0.8 MW 1.6 MW
165.6 MW 38.6 MW 8.3 MW
POTENTIALS FOR DISTRICT HEATING, BLOCK HEATING AND HEAT SOURCES

Currently, the only District Heating systems in Kosovo are the three systems in Prishtina, Gjakova and Mitrovica. There are
several sites with small groups of buildings, which could be supplied from block boilers.

KOSOVO
EXISTING BUILDINGS
The problem for the development of District Heating is that, under the current circumstances, it can only be justified by
using cheap heating oil instead of the more expensive light oil, allowing savings to finance the network. This solution is
only feasible if there is a group of large buildings situated close together (to make the network affordable) and with a
sufficient total heat load (to make a heating oil boiler affordable). The situation is complicated further by the fact that not
all big buildings have central heating systems and that big buildings are typically located in districts where the network will
be expensive and/or where there is no site for a heating oil boiler. One example is the city centre in Mitrovica South, which,
according to heat density, has the potential, but there is no obvious site for a boiler or any solution on how to organise a
new District Heating system. Another example is the town of Prizren, which has a typical Albanian urban structure with
very few and low apartment buildings.
NEW URBAN DEVELOPING AREAS

There is an opportunity to develop District Heating in urban development areas for apartment buildings. However, it is
most likely that such districts will be mainly developed in continuation of existing districts and close to the existing three
District Heating systems.
NATURAL GAS SUPPLY

If natural gas is introduced in Kosovo, it would be more competitive than existing alternatives to District Heating energy
sources and therefore would reduce the market potential for the expansion of District Heating. It could even make
economic sense to disconnect some of the remote District Heating consumers and supply them with natural gas. District
Heating could, however, play a major role in a natural gas system to increase gas sales and the load factor in the early
years. Oil may be used in District Heating as a back-up in case of gas shortages. The price of natural gas for District Heating
should therefore be significantly lower than the price of gas for individual consumers.
COAL AND WOOD BOILERS

Lignite has been previously used and a lignite drying plant at Kosovo A has been in operation and produced dried lignite
for the local coal market. Around Kosovo there are several small lignite boilers installed in block heating boiler plants,
designed to supply small groups of buildings (e.g. two to three apartment blocks and/or institutions).These boilers, which
are designed for burning solid fuels with gas, are now to some extent being used to burn firewood. Burning firewood in
such boilers is much better than burning firewood in small stoves from an energy efficiency and environmental point of
view. However, from a national perspective, it is more important to use the scarce firewood resources in the best way,
reserving sustainable resources for one-family houses with no other options. In the coming five years, it could be of
interest to use local dried lignite in such boilers and later convert them to natural gas.
GEOTHERMAL ENERGY
There are geothermal resources in Kosovo. In Banjica (close to Peja) as well as in Banjska (close to Mitrovica), hot water
springs are used for baths in a sanatorium. In both places, the hot springs, which provide a constant flow of hot water
at a temperature of approximately 60°C, indicate that there is huge potential for geothermal energy in the underground
geological formations of the mountainous regions. Unfortunately, there is no significant heat load in the respective towns.
However, the potential to use geothermal energy at a higher temperature in the upper level of the geological formations
should be investigated. There could be a basis for a demonstration project for the production of low temperature heat for
direct use (without a heat pump and only with a heat exchanger) for heating apartment buildings, swimming pools, new
greenhouses etc.
SOLAR ENERGY
Solar heating is, in some contexts, regarded as a potential source of low temperature heat.
Up until now, solar collectors have mostly been used to heat tap water in individual houses. Recently, though, the use of
solar collectors has started to expand into the area of large-scale solar collector fields connected to the District Heating

KOSOVO
system. This seasonal storage technology is still very much at an experimental phase and cannot be recommended for
Kosovo. Based on meteorological data for Kosovo and the efficiency of modern solar collectors, it is reasonable to assume
a peak production capacity in the months of July and August of approximately 300 W/m2 and a total yearly production
of approximately 360 kWh/m2/year. The market price of modern imported solar collectors with equipment is, however,
around 200 USD/m2 and the corresponding costs are therefore at around 55 USD/MWh. This is not viable given the present
prices of other sources of energy for heating and with the limited capability of Kosovars to pay for heating.
But solar collectors are already being produced in Kosovo (in a factory in Gnjilane). Locally produced collectors (from
this and in future possibly other factories) are a competitive option for the generation of hot tap water. However, for the
purposes of space heating, more advanced collectors are needed. Technology transfer to local producers could be an
interesting option for donors who intend to promote the use of solar energy in Kosovo.
It should be noted that installing solar collectors in districts that are supplied by District Heating generated at CHP plants
is not recommendable. Two different kinds of base load production, which are both environmentally preferable by
comparison with heat generated from lignite or heating oil, should not compete against each other.
THIS CHAPTER WAS ELLABORATED BY:
Prof. Skender Kabashi

Pristina University
Str.18 Qershori 41000 Skenderaj, Kosovo
Tel: +37744259017
Email: skenderkabashi@yahoo.com
This chapter was based on information provided by Ministry of Economic Development of the Republic of Kosovo
in the Annual Energy Balance 2014 and ESTAP – Kosovo Module H – District Heating

65%
78%
OF CITIZENS
ARE SERVED BY
DISTRICT HEATING
OF DISTRICT HEAT
COMES FROM
RECYCLED HEAT
3,639
MWth
TOTAL INSTALLED
DISTRICT HEATING
CAPACITY
LATVIA
JANIS BERZINS
LATVIA
1 DISTRICT HEATING
KEY FIGURES
2013 2011 2009

1,700 1,750 1,800
2013 2011 2009

TOTAL 21,464 20,608 22,022

25,000
20,000

TJ
Industrial sector
10,000
Residen:al sector
5,000
0
2013 2011 2009
Latvia - 2 COUNTRY BY COUNTRY / 2015 Survey

LATVIA
2,000 25,000
1,800
1,600 20,000
1,400
Total sales (in TJ)

1,200 15,000
1,000
800 10,000
600
400 5,000
200
0 0
2013 2011 2009
Total sales

2013 16 19.4
2011 15 18.2
2009 13.9 16.8
HEAT SALES TURNOVER

2013 21,464 16 343.4
2011 20,608 15 309.1
2009 22,022 13.9 305.9

LATVIA
2013 2011 2009

In cogeneration
Natural gas 30,175 61.8 % 29,038 66.0 % 24,037 59.8 %
Peat 40 0.1 %
Waste** 2,365 4.8 % 768 1.7 % 115 0.3 %
Combustible renewables* 5,959 12.2 % 5,406 12.3 % 5,621 14 %
Others
Natural gas 4,473 9.2 % 6,906 15.7 % 8,114 20.2 %
TOTAL 48,820 100 % 44,025 100 % 40,213 100 %


100%
90%
80%
70%
60% Other

40% Recycled Heat
30%
20%
10%
0%
2013 2011 2009

LATVIA
Renewable energy sources, natural gas and oil products are three main energy sources dominating the primary energy
structure in Latvia.
During the last decade, the District Heating market has clearly shifted towards renewable energy and the leading position
of natural gas has been overtaken by wood chips and other renewable energy products.
The renovation of District Heating systems boomed between 2009 and 2013 with nearly 100 million Euro from EU funds
invested in the switch from fossil fuel and into efficiency measures in the District Heating systems. The Latvian government
declared that the use of local energy sources and the substantial increase in energy efficiency must be the targets for the
years to come. The economy should diversify the fuel used. Natural gas consumption in boilers dropped from 85% to
54%, whereas renewable energy increased to 43%. Although the renewable energy share in District Heating systems rose
substantially, natural gas still dominates the Latvian energy market if CHP plants are taken into account.
Fuel structure in District Heating and CHP (in TJ)
45,000
40,000
35,000
30,000
25,000
Natural Gas
20,000 RES, Wood
15,000
10,000
5,000
0
2008 2009 2010 2011 2012 2013
Source: Central Bureau of Statistics
The actual share of renewable energy in the total primary energy consumption in the period from 1990 to 2012 has risen
to more than a third. The overall trend is slow but following a growing trend in primary energy consumption.

LATVIA
Renewable energy in primary energy structure
40%
36.3%
34.7%
40%
34.7%
32.8%
32.3%
32.2%
32.2%
32.2%
32.8%
31.1%
32.3%
32.2%
32.2%
32.2%
30.4%
35%
30.2%
30.1%
30.0%
29.9%
24.6% 31.1%
29.4%
29.2%
30.4%
35%
30.2%
30.1%
28.8%
30.0%
29.9%
29.4%
29.2%
28.8%
27.5%
26.3%
27.5%
30%
26.3%
30% 24.6%
36.3%
40%
34.7%
29.9% 20.7%
25%
20.7%
25%
32.8%
32.3%
32.2%
32.2%
32.2%
31.1%
30.4%
35%
30.2%
30.1%
16.0%
30.0%
29.4%
20%
29.2%
16.0%
28.8%
20%
13.9%
27.5%
13.1%
13.9%
26.3%
20.7% 13.1%
30%
24.6%
15%
15%
25%
10%
10%
16.0%
20%
5%
13.9%
13.1%
5%
15%
0%
0%
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
10%
5%
Source: Ministry of Economics of the Republic of Latvia
0%
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Wood biomass is the most important local fuel and its share in 2013 amounted to 28.4% or 53.11 PJ of the total primary
energy consumption. Latvian wood is used in central, local and individual heating and cogeneration.
Natural gas is an important fuel in the Latvian primary energy structure. In 2013, it accounted for 26.9% or 50.27 PJ of the
total primary energy consumption.
In 2013, the total Latvian natural gas consumption was 1,461 million m3, equivalent to a 3.1 %, drop in comparison to 2012.
Most of the natural gas (877 million m3) is consumed for heat and electricity production in CHP and 130 million m3 for heat
generation in individual boilers.

District Heating is an important segment of the Latvian economy covering 65-70% of the total heat demand, serving
approximately 1.2-1.4 million people with an industry turnover of about 300 million Euro. The Latvian capital Riga, with
a population of nearly 800,000, plays the main part on the District Heating market, equivalent to about 50% of the total
share. The remaining share is split among the other towns of Latvia.
Latvia is one of the leaders in the EU for multi-storey residential buildings served by District Heating. This puts additional
social pressure on the District Heating companies as they have to struggle with low purchasing power and public resistance
against system renovation and reconstruction.
The District Heating market is dominated by multi-storey buildings with low energy efficiency. In Riga, building
reconstruction and energy efficiency measures have just started, while in smaller cities and towns building renovation is
moving at a faster pace.
The tariffs for heating vary depending on many factors, including the size of the system, the fuel used, the technical
condition of the system and even political aspects.

LATVIA
Tariffs in the main cities and towns using District Heating (regulated District Heating market)
Latvia District Hea-ng tariffs in December 2014, EUR/MWh

(wood chips, CHP, natural gas)
80
71.04
69.86
68.03
65.92
62.64
70
61.64
61.33
61.24
60.59
60.32
59.87
59.58
59.35
59.3
57.75
57.09
56.74
56.66
56.52
56.02
57.4
55.71
56.9
55.01
54.91
54.88
54.57
54.07
60
50.68
50.2
48.59
48.35
49.8
45.92
50
40
30
20
10
0
Source: Latvian District Heating Association
District Heating systems in Latvia are mainly owned by local municipalities, in some cases by private owners. In Riga, the
local municipality and the State are the main shareholders. At the same time, the local electricity utility Latvenergo sells a
substantial part of the heat produced in their Riga CHP installations.
In the mid-1990s, District Heating companies went through complicated and challenging times when a shift to individual
heating and unpaid bills were the main issues.
Rising energy prices, competition and energy efficiency are currently on the agenda and companies aim for the following:
• Two pipe systems installations;
• Heat loss optimisation in the District Heating network;
• Eliminating leaking pipes and water waste;
• Personnel efficiency;
• District Heating substation in every building;
• Energy metering in all buildings;
• Individual metering;
• Building management systems in residential buildings;
• Billing system optimisation;
• Connecting small district- and community-heating networks to the main city networks;
• Analysis of optional energy supply;
• Individual building efficiency.
Nearly all District Heating systems have individual building substations, with automatic energy controls for heating and
tap water.

LATVIA
The average losses in the District Heating distribution networks after reconstruction varies in the range of 12-15%, while
non-reconstructed systems can have 25-40% heating losses.
Latvia has set a challenging target of 40% of the energy consumption to be covered by renewable energy by 2020 and
District Heating companies still have an important role to play.
District Heating and electricity production in CHP can play a leading role to reach the 2050 climate targets. Today, natural
gas still prevails on the Latvian heating and electricity market. To promote renewable energy production, the state has
introduced the mandatory payment scheme through payment for electricity consumed. This has caused a major challenge
for Latvian consumers as the electricity price was heavily impacted.
Mandatory payment
Mandatory payment component
component in in electricity
electricity price (Eurocent/kWh)
price (Eurocent/kWh)
3 2.69 2.68
2.5
1.75
Eurocent/kWh
2 1.64 1.66
1.5 1.12
0.8
1
0.5
0
2008 2009 2010 2011 2012 2013 2014
In order to stop the price escalation, certain measures to limit new CHP construction were taken and revenue limits for
existing CHP were set.
There are no subsidies for consumers for renewable heating, except via the support of EU funds which surely sped up new
wood chip boiler installations in Latvia.
Despite of available EU funding, there are still some obstacles to reach energy efficiency targets. Insulation and other
measures will decrease the total heat consumption per m2 installed, but District Heating distribution networks will keep
their existing size, which may increase capital costs per energy unit produced. To address these challenges, companies
shall concentrate on new consumer connections. It is estimated that without any optimisation and new client policies,
District Heating companies may lose 30 to 50% of their revenues, if the tariffs remain unchanged.
District Heating companies strictly keep their position that certain steps shall be taken in order to protect District Heating
systems against a shift towards individual heating and this pressure is transferred to the state and municipal institutions.

At national level, there is an overall guideline for the development of the energy sector. This guideline covers the period
from 2007 until 2016. This document only sets general national priorities and targets for the energy sector. In general,
CHP is mentioned as a priority. At regional level, there are no special guidelines or agendas covering CHP and/or bioenergy
developments. At local level every municipality deals with their energy sector, with particular focus on heat supply. There
are some municipalities that have shown in recent years a strong interest in CHP and biofuel boilers and have developed
energy plans including the possibility to use biomass.

LATVIA
In Latvia, the legal framework covering CHP is organised at national level only. There are no regional or local policies that
promote CHP, green CHP or green energy in general. The main legal acts that are related to CHP are listed below:
• Directive 2001/77/EC on the promotion of electricity produced from renewable energy sources in the internal
electricity market;
• Directive 2004/08/EC on the promotion of cogeneration based on a useful heat demand in the internal energy
market and amending Directive 92/42/EEC;
• Directive 2009/28/EC on the promotion of the use of energy from renewable sources and amending and
subsequently repealing Directives 2001/77/EC and 2003/30/EC Text with EEA relevance;
• Energy law, adopted on 9 March 1998;
• Electricity market law, adopted on 5 May 2005;
• Regulations regarding electricity production and price determination upon production of electricity in cogeneration,
Cabinet Regulation No. 221 adopted on 10 March 2009;
• Regulations regarding permits for increasing electricity production capacities or the introduction of new production
equipment, Cabinet Regulation No. 883 adopted on 11 August 2009;
• Regulations regarding the production of electricity using renewable energy resources and the procedures for the
determination of the price, Cabinet Regulation No. 262 adopted on 16 March 2010.

OF DISTRICT HEATING
The overall guideline for the development of the energy sector mentions CHP as a priority. There are no regional or local
policies that promote CHP, green CHP or green energy in general.
Improving energy efficiency in District Heating has been delayed by the lack of investments and the limited capacity of
local governments to obtain funding as well as the slow capital turnover rate.
The Ministry of Economy plans to elaborate the new support scheme for new CHP plants operating on renewable energy
sources. However, keeping electricity and heating tariffs at a stable level will be the challenge in this context.

The main barriers are the fluctuating natural gas prices which result in high District Heating prices, the cancellation of CHP
electricity support and the very challenging economic situation in Latvia. All this results in growing debts from District
Heating clients – in the heating season, the largest part of a household’s expenditure is for heat.
Unfortunately, the changes in government rule N.221 meant that the support for electricity ended and this become a
problem following the fall in the final heat tariffs though using CHP. CHP development in Latvia has stopped because
electricity production from biomass CHP is too expensive and inefficient. Few bio-CHP plants were built, only with the
support of EU cohesion funds.

Best environmental story-1: In Ludza, 7,000 inhabitants are served by District Heating through the private District
Heating operator “Ludzas Bio Energija”. The system is made up of an 8 MW boiler with a flue gas condenser giving 1.2 MW
additional heat from the same amount of biofuel. The flue gas condenser is produced in Latvia. The heat is produced from
biofuel (wood chips), reducing greenhouse gas emissions with 12 kilotonnes/year compared with fuel oil.
Best environmental story-2: In 2013, a bio-CHP project was finished in Jelgava (70,000 inhabitants), by the District
Heating operator “Fortum Jelgava”. The project capacity is 23 MWe and 46 MWth, and covers the heat demand in Jelgava
and at the same time produces green electricity.

LATVIA
Best long term combined approach: In Riga (600,000 inhabitants), the District Heating operator “Rigas siltums” supplies
76% of heat demand needed for buildings (3.2 million MWh). 70 % of this heat is produced by the CHP plants of the state
energy company “Latvenergo” in combined cycle together with electricity and sold to “Rigas siltums”. The remaining 30.5%
of heat is produced by “Rigas siltums” itself (1.13 million MWh), out of which 58.4% is produced in the existing CHP plant
(22 MWe combined cycle gas, steam turbines, 5 MW heat pump, 4.7 MW waste recovery condensing boiler and peak loads
boilers). In 2011-2013, many gas boiler houses of “Rigas siltums” were switched to wood chips with a total heat capacity of
over 60 MW (including new 4 MW bio-CHP and existing steam bio-CHP). Using flue gas condensers, the officially calculated
efficiency of the new wood chip boilers will reach 109-111%. As a result, after finishing the reconstruction, only 10-12% of
the heat in Riga will be produced in heat-only boilers from fossil fuel.
Best combined quick approach: In Liepaja (90,000 inhabitants), the District Heating operator “Liepajas energija” engaged
in a quick and complex renovation of all District Heating systems. The replacement of old District Heating pipelines for
cutting heat losses, the implementation of gas CHP and the implementation of bio-CHP (Rankine cycle) led to a reduction
in heat tariffs by 13% in 2013. Replacing natural gas with biofuel is expected to lead to further cuts in District Heating
tariffs.
Best CHP approach: The Valmiera (30,000 inhabitants) system is managed by the District Heating private producer “Jauna
fabrika” (Dalkia) and the heat distribution municipal company “Valmieras siltums”. Through efficient use of gas in CHP
together with the total renovation of the District Heating network and distribution pipelines, the District Heating tariff is
at the same low level as in other cities using 100% biofuel (wood chips).
2 HEAT MARKET


65%

LATVIA
2013 2011 2009

million m 2
27 26.3 26.3
Source In %
Natural gas 8%
Electricity 1%
Coal 1%
Renewables* 20%
Heat pumps 1%
TOTAL 100%
1%
20%
District Hea3ng
Natural gas
1%
Electricity
4%
1%
Coal
8% Renewables*
65%
Heat pumps
District Heating covers the majority of the heating market in Latvia with natural gas being the main fuel used.
Riga has by far the largest District Heating system in Latvia, with a 50-55% market share in terms of energy delivered,
having natural gas as the main fuel. In smaller towns, renewable energy sources are picking up and natural gas is gradually
phased out from the fuel structure.

LATVIA


Oil / Petroleum products 111 111
Coal and coal products 409 409
Peat 40 40
Natural gas 29,315 860 30,175
Renewables* 4,476 636 5,112
Waste 1,175 590 1,765
TOTAL 35,526 2,086 37,612

40,000
35,000
30,000 Waste
25,000 Renewables*
Natural gas
TJ
20,000
Peat
5,000
0
in TJ in TJ in TJ

LATVIA
Production for 2013 (in TJ) 644

Installed capacity in 2013 (MWth) 0.1

CHP has always played an important role in the energy sector of Latvia and natural gas has been the main fuel. However,
during the last years, due to available funding, wood chips and biogas stations started to develop as well. Electricity
production in CHP is the most efficient way to use energy resources and Latvia has reached significant results in this area.
Without incentives and with the current economic situation, bio-CHP projects are not economically feasible. Bio-CHP
projects can become economically attractive only with the help of economic incentives and support mechanisms.
Based on these mechanisms, the interest and options for installation of bio-CHP have increased. Bio-CHP is supported by
a feed-in tariff system as well as with direct subsidies up to 70% of the investment costs. These factors have a big impact
on project payback time and allow competition with both natural gas-fired CHPs and heating boiler houses.
Financial support for capital costs for CHP installation were available from EU cohesion funds, but only for bio-CHP. Funds
were limited and projects are selected via a public call, “Development of CHP with renewable energy sources”, managed
by the Ministry of Economics. Ten projects were financed through the first call in 2010, out of which two for Riga (4 MWe
and 0.6 MWe).
In general, commercial banks were financing very few projects and were reluctant to finance innovative projects and
products. In Latvia, there is very little experience with bio-CHP projects. Therefore, risks are considered very high. In case
of financing, conditions set by commercial banks may not be convenient.
Natural gas consumption in CHP (in TJ)

Natural gas consump/on in CHP (in TJ)
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
2008 2009 2010 2011 2012 2013

LATVIA
Renewable energy source and biogas consumption in CHP (in TJ)
6,000
5,000
4,000
3,000
RES, TJ
2,000
Biogas, TJ
1,000
0
2008 2009 2010 2011 2012 2013
Especially between 2011 and 2012, new CHPs appeared on the energy market due to an available state support scheme
via mandatory payments.
Amount of installed CHP, wind and hydro generation units from 2011 to 2012
160

140
120
100
CHP units
80
60
40
20
0
CHP above CHP less Biogas CHP, Biomas
Wind Hydro
4MW than 4MW total CHP, total
2011 4 56 27 8 36 141
2012 4 77 38 17 53 146
Smaller units with installed capacity of less than 4 MW prevailed on the market, but the large Riga/Latvenergo newly build
CHP kept the first place.

LATVIA
Electricity produced in CHP, wind and hydro generation units from 2011 to 2012
GWh
2,500
2,000
Electricity produced
1,500

1,000
500
0
CHP above CHP less Biogas CHP, Biomas
Wind Hydro
4MW than 4MW total CHP, total
2011 2,220 381 101 9 70 63
2012 1,353 459 214 58 101 78
The installed capacity also shows the predominance of large CHP and natural gas as a fuel.
Installed capacity in MW in CHP, wind and hydro generation units from 2011 to 2012
900
800
700
600
500
400
300
200
100
0
CHP above CHP less Biogas CHP, Biomas CHP,
Wind Hydro
4MW than 4MW total total
2011 796 63 31 5 36 26
2012 799 82 43 23 60 27

LATVIA
Substantial amount of subsidies was secured for CHP and renewable electricity production via feed-in tariffs, which caused
public tension and wide opposition from various industries.
Subsidies paid for CHP, wind and hydro generation units from 2011 to 2012
200,000,000
150,000,000
EURO
100,000,000
50,000,000
0
CHP CHP less
Biogas Biomas
above than Wind Hydro TOTAL Gas Tot
CHP, total CHP, total
4MW 4MW
25,695,62 61,861,86 13,685,11 1,120,272 3,698,147 8,392,450 114,453,4 87,557,48
45,230,62 88,153,20 31,854,25 8,025,790 6,089,456 10,464,68 189,818,0 133,383,8
The average length of the Latvian heating season is 200-210 days per year. The heating period depends on the outdoor
temperature and is slowly increasing due to higher demands for comfort.
Latvia is situated in the region of latitude 57°N (similar to Stockholm in Sweden). The climate conditions are to a certain
extent maritime, as in mid-Scandinavia. Latvia is a relatively small country and therefore only minor regional climate
variations exist between coastal and eastern regions, approximately 2-4°C.
Latvian District Heating Association

Kandavas street 16, Riga, LV 1083, Latvia
Tel: + 371 67 605 706
www.lsua.lv
Contact Person: Janis Berzins
Email: lsua@lsua.lv

SHARE OF
RENEWABLE ENERGY
IN DISTRICT HEATING
2% 34%
57% IN 2002 IN 2013
OF LITHUANIANS
ARE SERVED BY
DISTRICT HEATING
357
DISTRICT HEATING SYSTEMS
IN LITHUANIA
LITHUANIA
RAMUNĖ GURKLIENĖ
LITHUANIA
1 DISTRICT HEATING
KEY FIGURES
2013 2011 2009

2,565 2,475 2,535
network (one way)
Cooling in Euro (excluding operational and maintenance 53 M 86 M 32 M
costs)*
Average CO2 emissions per GWh of district heat generated 150 kg/MWh 162 kg/MWh 180 kg/MWh
* Exchange rate used 1 EUR = 3.4528 LTL

** District Heating system is a heat distribution network with its own heat source, technically independent from other networks, regardless of
2013 2011 2009

TOTAL 27,100 26,243 27,899

30,000
25,000
20,000
Services and other
TJ
15,000
Industrial sector
5,000
0
2013 2011 2009
Lithuania - 2 COUNTRY BY COUNTRY / 2015 Survey

LITHUANIA
3,000 30,000
2,500 25,000
Total sales (in TJ)

2,000 20,000
1,500 15,000
1,000 10,000
500 5,000
-‐0 0
2013 2011 2009
Total sales

(annual average)
2013 20.1 21.9 1 EUR=3.4528 LTL
2011 18.6 20.2 1 EUR=3.4528 LTL
2009 17.6 19.2 1 EUR=3.4528 LTL
HEAT SALES TURNOVER

2013 27,100 20.1 545
2011 26,243 18.6 488
2009 27,899 17.6 491

LITHUANIA
2013 2011 2009

In cogeneration
Oil and petroleum products 527 2% 537 2% 1,236 4.1 %
Natural gas 10,070 37.3 % 12,794 47 % 14,312 47.8 %
Others
Natural gas 6,787 25.1 % 7,060 26 % 7,730 25.8 %
Peat 100 0.4 % 57 0.2 % 76 0.3 %
TOTAL 27,003 100% 27,199 100% 29,916 100 %

100%
90%
80%
70%
Other
60%
Direct Renewable
50%
Recycled Heat
40%
30%
20%
10%
0%
2013 2011 2009

LITHUANIA
Since 2003-2004 the share of natural gas has been decreasing (from 83% in 2004 to 61% in 2013), while biofuel has been
increasing and reached 34% (277,500 toe) of the total fuel consumption (831,000 toe) used for District Heating production
in 2013 (see illustration below). The biofuel amount consisted of low-value timber waste (97.9%), straw and bio-gases
(1.5%) and other (0.6%).
Fuel inputs for DH production during 2002-2013

90.0
90.0
90.0
80.0
80.0
80.0
70.0
70.0
70.0
60.0
60.0
60.0
50.0
50.0
50.0
40.0
%
40.0
40.0
30.0
30.0
30.0
20.0
20.0
20.0
10.0
10.0
10.0
0.0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2013
0.0
0.0
2002
2002 2003
2003 2004
2004 2005
2005 2006
2006 2007
2007 2008
2008 2009
2009 2010
2010 2011
2011 2013
2013
Natural gas Fuel oil Renewable energy sources Other fuel
Natural
Natural gas
gas Fuel
Fuel
oil oil Renewable
Renewable energy
energy sources
sources Other
Other fuel
fuel
According to a research study (2013) prepared by Lithuanian energy experts, the potential of renewable energies and
local fuels (2,222,500 toe) is larger than annual future demand (687,300 toe) in Lithuania for 2020-2025. 308,000 toe of
renewable energies were used for district heat generation in 2013. Therefore, Lithuania has huge unused local resources
of renewable energy (biomass, waste).
Within the period 2004–2013, the Lithuanian District Heating companies paid about 2.3 billion Euro for natural gas
imported from the Russian company Gazprom. The average price of local biofuel used for District Heating is three times
lower than natural gas price. In 2013, the price of natural gas was 530 Euro/toe and the price of biofuel was 169 Euro/toe.
This situation has had an impact of about 30% on District Heating prices: in cities, where the main District Heating fuel
is natural gas – the price was 84 Euro/MWh, while in biofuel heated cities the District Heating price only 58 Euro/MWh.
In spring 2013, the first CHP plant (50 MWth/20 MWe) combusting biofuel and municipal waste was introduced on the
Lithuanian District Heating market by Fortum Klaipėda (independent heat producer). During 2013, the consumption of
municipal waste for District Heating production in this biofuel CHP plant was 12,163 toe.
The main reason for the development of renewable energies in the District Heating sector is the implementation of the
Renewable Energy Directive 2009/28/EC. Lithuania has to fulfil the binding target of no less than 23% renewable energies
in the total energy consumption by 2020. For that reason, the National Renewable Energies Implementation Plan was
prepared and submitted to the European Commission. In this plan, the largest share of renewable energy is intended for

LITHUANIA
the District Heating sector. Currently, the construction of biomass District Heating boilers is in progress. The support from
EU structural funds and Lithuanian Environmental Investment Fund (LEIF) made a positive impact for accelerating biofuel
District Heating projects implementation. During 2004-2013, the total investment was about 206 million Euro including
88 million Euro financial support from :
• EU Structural Funds 2004-2006: 15 million Euro;
• EU Structural Funds 2007-2013 (up to 2015): 60 million Euro;
• LEIF Fund: 13 million Euro.
The development of biofuels in the District Heating sector made a positive contribution to the implementation of the
national environmental goals and the obligations specified in the Kyoto Protocol - for the period 2008-2012, Lithuania had
to reduce greenhouse gas emissions by 8% compared to the 1990 level; in 2012, emissions were only 36% of the 1990
RES in DH sector
level. (for heat and power production)
2011 2012 2013 2014 2015 2016 2020
The large-scale development of biofuel production also brought positive development of several rural regions in Lithuania.
ctor
688800 627056
The estimated 566251 energy
share of renewable 516000 404000
sources in 2020 318000
should increase 96000
to 70-85% provided that large-scale biofuel and
local energy resources CHP projects are implemented in Vilnius and Kaunas.
r
194000 245373 307968 357000 462000 545000 810000
Consumption of natural gas and renewables in District Heating sector (for heat and power production)
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
2011 2012 2013 2014 2015 2016 2020
ConsumpGon of natural gas in DH sector (for heat and power producGon)
ConsumpGon of RES in DH sector (for heat and power producGon)

Lithuania has a well-developed District Heating system. The share of District Heating in the overall heating sector remained
fairly constant over the last years: in average, around 56% throughout the country and around 76% in cities.
The total volume of District Heating production slightly decreased between 2008 and 2013 (it was 9.6 TWh in 2008 and
9.1 TWh in 2013), and the number of consumers has been increasing since 2001. However, due to the financial crisis,
around 16% of users have accumulated debts to District Heating providers. Many problems still exist in demand-side
management: in the area of legal adjustment of relations with District Heating consumers, particularly with residential
consumers in multi-family apartment houses.

LITHUANIA
When fuel prices started to rise in 2005, all District Heating companies operated at a loss during 2006-2008 (in 2008, the
loss amounted to 67 million Euro). In order to quickly respond to increasing prices of imported fuel, the National Control
Commission for Prices and Energy introduced more frequent corrections of heat prices, thus helping to achieve a better
balance of financial flows. On the other hand, the increase in District Heating prices since 2007 had a negative influence
on heat consumers payments, as building renovation was slow, and the economic situation was additionally aggravated
by the economic crisis. As a result, consumer debts have increased from 37 million Euro in 2008 to 82 million Euro in 2013.
Since 2009, with an improving economic situation and growing investments in District Heating generation and supply
facilities, District Heating companies started to work cost-effectively, generating a slight profit of 6 million Euro in 2013.
In 2013, municipalities owned about 55% of District Heating companies, while 45% were leased to foreign and domestic
investors. Private capital entered Lithuanian District Heating market in 2000. Representatives of leased companies
strongly defended the introduction of Lithuanian economic fundamentals and the District Heating sector has significantly
contributed to the economy as a whole, while reforming, updating and creating the necessary legal and economic basis for
all operators working in the field. Some technical, economical and organisational solutions of leased companies became
“good practice know-how“ for other District Heating companies.
Generally, there are two major problems within the Lithuanian District Heating system:
1. Inefficiency at the point of heat consumption – the average annual heat consumption of Lithuanian buildings is
209 kWh/m², which is substantially higher than the average for Nordic countries (128 kWh/m²). Reducing this
inefficiency can generate substantial savings in terms of heating costs and would reduce greenhouse gas emissions.
2. At present, the heat supplied in District Heating systems is produced mainly from fossil fuels – in 2013, approximately
61% was produced from natural gas imported from a single source (Russia). Although its share is decreasing, the
dependence on natural gas remains the main danger for security and reliability in the national District Heating
sector. Increasing energy production from renewable energies can diversify energy sources for heat production and
reduce the negative impact of the District Heating sector on the environment and on heating bills for consumers.
In Lithuania, biomass combusting facilities were initially installed in District Heating systems not connected to gas pipelines,
and paid off relatively soon due to cheaper biofuel. The first biofuel boiler in the Lithuanian District Heating sector was
built in 1988 (Birzai). After joining the EU, financial support was allocated for renovation of the District Heating network
and encouraged the construction of new biofuel facilities. Around 65 million Euro support from EU Structural Funds (2007-
2013) were allocated for the modernisation of 1,000 km (conventional length) of District Heating networks, thus leading
to the renovated of about 12% of total pipe length.
In the end of 2013, around 265 biofuel boilers were operated by Lithuanian District Heating companies, with a total installed
heat capacity of 716 MW (compared to the 2011 installed thermal capacity of 440 MW). In parallel, the construction of
modern biofuel boilers by independent heat producers has rapidly grown as well: in 2011 the total installed heat capacity
was 126 MW , in 2013 – 323 MW, and it is predicted that by 2015 it will reach 640 MW. District Heating companies
purchase around 22% of heat from independent heat producers each year and it is expected that this share will increase
accordingly in the future.
It is forecasted that the heat capacity of biofuel boilers could reach 2,450 MW in 2020 and will exceed the current average
base load of 1,900 MW during the heating season.
Among economic benefits of projects implemented by District Heating companies:
• Heat loses in the District Heating network decreased from 32.3% (1996) to 15.8 % (2013), equivalent to an annual
saving of about 104 million Euro;
• Fuel input for District Heating production decreased from 101.7 kg.o.e/MWh (1996) to 92.1 kg.o.e./MWh (2013),
equivalent to an annual saving of about 38 million Euro;
• The share of biofuel in the overall fuel structure of District Heating increased from 2% (1996) to 34 % (2013),
equivalent to an annual saving of about 87 million Euro;
• The installation of automatic heat substations in dwellings has led to saving about 81 million Euro per year.
In 2013, District Heating sales amounted to 541 million Euro and the average heat price was 72 Euro/MWh. If District
Heating companies had not made any investments in order to lower heat costs, consumers would pay today about 850
million Euro, and the average heat price would be 113 Euro/MWh.

LITHUANIA
In July 2012, the Seimas (Parliament) of the Republic of Lithuania approved the new version of the National Energy
Independence Strategy. The purpose of the National Energy Independence Strategy is to define the main objectives of the
Lithuanian energy sector, to set national targets for the implementation of strategic initiatives until 2020, as well as to lay
down guidelines for the development of Lithuania’s energy sector for 2030 -2050. The main goal of this Strategy is to ensure
Lithuania’s energy independence before the year 2020 by strengthening the country’s energy security and competitiveness.
The main task in the heating sector is to increase energy efficiency in heat production, distribution and consumption while
at the same time shifting from mainly gas-based production towards biomass. The state will support initiatives aimed at
increasing heat consumption efficiency, at using waste energy potential and biomass. By 2020, heating consumption of
households and public buildings must decrease by 30–40%. Compared to 2011, this will allow to annual savings of as much
as 2 to 3 TWh of heat. District Heating will be restructured in compliance with principles of the 3rd EU Energy Package,
as well as by ensuring provisions for fair and efficient competition among heat production and transmission companies.
Transparency and control of heat production and transmission companies is meant to ensure heat supply services at most
affordable prices.
At the end of 2013, the Lithuanian Energy Institute has started drafting updates for the National Energy Independence
Strategy. In parallel, the Ministry of Energy, implementing Articles 2 and 7 of the Heat Law of the Republic of Lithuania
(adopted on 2 July 2013), has started drafting the National District Heating Development Plan for 2014-2021. The initial
version of this Plan was approved by the Lithuanian Government on 8 April 2014.
Other strategic documents:
• National Energy Strategy (1994, 1999, 2002, 2007, 2011) and Implementation Plan of National Energy Strategy
2008-2012 (2008);
• National Energy Consumption Efficiency Programme 2006-2010 (2006);
• Energy Efficiency Action Plan (2007);
• National Renewable Energy Development Strategy (2010) and Implementation Plan of National Renewable Energy
Development Strategy (2010);
• Housing Strategy (2004);
• Support Programme on Renovation of Multi-family Apartment Houses (2004, 2008, 2011);
• National Strategy on Sustainable Development (2003);
• Guidelines of District Heat Sector Development (2008);
• National Strategy Plan on Waste Disposal for 2014-2020 (2007, 2010, 2014);
• CHP Development Plan (2010).

The main institutions managing the District Heating sector are the Government or its authorised institutions (National
Control Commission for Prices and Energy, etc.), the Ministry of Energy, the Ministry of the Environment, the State Energy
Inspection, Municipalities.
The main law regulating the energy sector is The Energy Law (adopted in October 2002). Under this law, there are six other
laws, which regulate main energy sectors: power, heat, natural gas, oil, nuclear energy and renewable resources.
The District Heating sector is regulated by the Heat Law adopted in May 2003 (as amended in May 2014). This Law regulates
the state management of the heat sector, the activities of heat sector entities, their relations with heat consumers, their
interrelationship and responsibility.
The main objectives are:
1. to ensure reliable and high quality supply of heat to heat consumers at minimum costs;
2. to ensure by law effective competition in the heat sector;
3. to defend the rights and legitimate interests of heat consumers;
4. to increase efficiency of heat production, distribution and consumption;
5. when producing heat, to increase the use of indigenous fuel, biofuel and renewable energy resources;
6. to reduce the negative impact of the heat sector on the environment.

LITHUANIA
Several important amendments were made to the Heat Law:

• from 1 July 2009, heat prices are recalculated every month depending on changes in fuel and purchased heat
prices. Finical losses are therefore not so drastic for District Heating companies and heat prices are much more
reasonable compared with previous prices calculated using old methods;
• from 1 November 2011, District Heating companies cannot recover their investments made for the purpose of
modernising heat substations. Lithuanian District Heating companies have invested about 120 million Euro into
heat substations and only 2-3% of them were recovered. Up until now, is not clear when and how District Heating
companies will claim back their investments;
• from July 2013, an obligatory regulation is set for Independent Heat Suppliers, who received financial support from
EU structural funds or other financial sources.
The Law on the renewable energy (adopted in May 2011) aims to ensure a well-balanced development of the use of
renewable energy sources by:
• promoting further expansion and implementation of modern technologies and energy consumption;
• especially taking into account the international commitments of the Republic of Lithuania, environmental
protection, and with a view to saving fossil fuel energy resources;
• reducing dependency on fossil energy resources and energy imports and other state energy policy targets;
• considering energy supply safety and reliability requirements;
• ensuring the accessibility, suitability and availability of energy resources for consumer rights and legitimate
interests and safety assurance principles.
The main task of this Law is to ensure that the share of renewable energy sources in the total final energy consumption
by 2020 will amount to no less than 23%, and that this share will be further increased by using most efficient renewable
energy technologies. In 2013, a number of amendments to the renewable energies Law and its implementing legislation
were carried out. For example, the financial support cap for electricity produced from biomass was reduced from 355 MW
to 105 MW.
The Law on Liquefied Natural Gas (LNG), adopted on 12 June 2012, sets out the principles of installation, financing and
operation of natural gas terminals and natural gas trade in Lithuania.
In Article 11 of the LNG Law, a requirement is set for every natural gas enterprise importing natural gas into the Republic
of Lithuania through natural gas transmission pipelines (via continental road) to import/purchase at least 25% of its total
annual quantity of natural gas supplied to the system (customers, and sold to District Heating companies) through the LNG
terminal (via marine road) and at least 25% through the natural gas transmission pipelines (“the Rule on the Mandatory
25% Purchase”). As such, this rule, lacking an adequate legal, economic and technical basis, does not consider the right
of market actors to freely choose a supplier, i.e. to select the supplier offering the best conditions in terms of price/
flexibility, and to have, in this way, the best opportunities to compete on the market and to ensure the lowest heat prices
to customers. According to this restriction, gas importers are allowed to purchase from one supplier no more than 75%
of the total quantity of natural gas per year, which means in practice that the LNG Law prohibits gas enterprises to import
through the natural gas transmission pipelines (or through the LNG terminal), for example 10% or 20% of the gas quantity.
The Lithuanian LNG terminal started operation on 1 January 2015.
Transposition and implementation of EU Directives:

Directive 2012/27/EU on energy efficiency (Articles 5, 7, 9, 10, 14): up to the end of 2014, no national legal act was approved
or adjusted in accordance to the implemention of this Directive.
Directive 2010/75/EU on industrial emissions (integrated pollution prevention and control): The National Plan of Transitional
Period for the Vilnius, Kaunas and Litesko large-scale CHP Plants was prepared and submitted to European Commision on
31 December 2012. The EC confirmed the Plan on 11 December 2013.
Directive 2010/31/EU on the energy performance of buildings: Lithuania implemented the act on Energy Performance of
Buildings setting certification requirements for new and old buildings.
Renewable Energy Directive 2009/28/EC: Lithuania first mentions the draft of a National Renewable Energy Plan with a
number of different general tasks in the field of renewable energy and its promotion. Among the foreseen activities, there
are provisions for:

LITHUANIA
• increasing the share of biofuel to 50-60% and reducing the gas share to 40% (in 2013, it was 61%) in the heating
sector;
• having a District Heating market share of 75% in urban residential buildings;
• increasing electricity from biomass CHP from 53 MW in 2012 up to 355 MW in 2020.
The following activities were performed during 2009-2013:
• The Lithuanian energy institute performed a scientific research study “The use by municipalities of renewable
energy sources (biofuel, hydro energy, solar energy, geothermal energy) and available municipal waste for energy
production“ (2009);
• The Lithuanian energy consultants association (LECA) performed 2 studies:
-- The program of development of renewable energy sources for the Lithuanian District Heating supply
systems (2009);
-- The Investment Program of District Heating Sector for 2011-2020 (2011).
• The Government of the Republic of Lithuania approved the National Renewable Energy Sources Development
Strategy (21 June 2010);
• The Ministry of Energy approved the plan for implementation measures of the National Renewable Energy Sources
Development Strategy (23 June 2010);
• The National Action Plan for the period 2010-2020 for the use of renewable energy sources was submitted to the
European Commission in July 2010).

OF DISTRICT HEATING
It should be noted that expansion is not the main priority of the Lithuanian District Heating sector. It is forecasted that
the volume of heat generated by District Heating companies should be decreased by 10% up to 2020 (compared to 2013).
Consumption is expected to decrease implementing energy efficiency measures in buildings.
Taxation: VAT value in Lithuania is 21%. A reduced VAT rate of 9% is applied to households for heat and hot water supplied
from District Heating networks.
Competition: during 2013-2014 heating season in Vilnius, the District Heating price in multi-family apartment houses was
lower (76.8 Euro/MWh) compared to apartment houses where heat was produced by natural gas boilers (85.4 Euro/MWh).
Support schemes: The Heat Law requires the state (municipalities) to promote the procurement of heat produced
from biofuel, other renewable sources, municipal waste and geothermal energy for heat supply systems. This type of
procurement is considered as public service. It is stipulated in the procedure set for heat procurement from independent
producers that the supplier procures heat from independent heat production facilities in the following order of sequence:
1. Heat from combined heat and power generation facilities using renewable energies;
2. Heat produced from renewable and geothermal energy sources;
3. Excess heat from industrial plants;
4. Heat from efficient cogeneration facilities;
5. Heat from boiler houses combusting fossil fuel.
National legislation (zoning): In Lithuania, the heating sector is managed by municipalities according to specific plans for
the heat sector approved by the municipal council. The main task of specific plans for the heat sector is to satisfy the
consumer at the lowest cost whilst minimising the negative impact on the environment. The specific plans for the heat
sector are reviewed at least every five years, depending on heat production and transmission technology development,
environmental pollution and changes in other factors relevant to spatial planning. Heat supply in each municipality is
organised according to the general planning documents or specialised local heat plan. District heat supply and competition
zones are drawn up in the territory of the municipality and the only licensed company in the District Heating zone must
connect all new heat consumers. The connection cost is included in the general heat price or paid by special fee. Heat
consumers in the competition zone could be connected and heat supplied on the basis of individual cost and prices.

LITHUANIA

The financial support from EU Structural Funds (2007-2013) was allocated mainly for the implementation of small biofuel
projects with a maximum support up to 1.73 million Euro per project. Thus, large CHP plants in Vilnius and Kaunas were
not given the possibility to make the fuel conversion from natural gas to biofuel in due time.
Implementing the National Energy Strategy, the Lithuanian Government adopted in 2007 the National Energy Strategy
Implementation Plan for 2008-2012, establishing among others the obligation for District Heating companies to install heat
substations in apartment buildings, eliminating grouped boiler houses, and to change existing individual heat substations
with new ones. For that purpose, District Heating companies invested own funds for taking bank loans. Almost 77% of
substations have been modernised. The costs incurred by the District Heating companies were included into the heat
tariff. However, from November 2011, after the implementation of changes in the Heat Law, District Heating companies
are no longer obliged to maintain and operate substations, part of the maintenance costs were eliminated from the
tariff (according to the resolution of National Control Commission for Prices and Energy) and operation costs are to be
accumulated by residents since they are responsible for the operation of the substations. However, the funding issue is not
resolved and significant problems have occurred because District Heating companies currently perform no repair works
and residents do not accumulate sufficient maintenance funds. A particularly problematic situation arose in apartment
buildings where substations are owned by District Heating companies and residents have no legal basis to repair the
property belonging to another legal entity. However, other legal acts prohibit District Heating companies to operate
their own assets, and costs for maintenance as well as capital return are not allocated. The changes in the Heat Law
resulted in losses incurred by District Heating companies of about 100 million Euro for investments into heat substations
modernisation of, and the investments are not recovered yet. The problem remains unsolved at governmental level.
The experience and new challenges of the Lithuanian District Heating sector show the positive impact of private capital
participation in this market. However, these companies face a lot of problems, mostly related with ineffective regulation
and control of licensed business activity, energy market regulation, and low competence of municipalities. Below are several
examples of problems encountered by private capital entering and operating on the Lithuanian District Heating market:
1. The Vilnius municipality and a foreign investor established a local company “Reenergy“ aiming to build a municipal
waste incineration plant in Vilnius, which would supply heat to the District Heating network and thus reduce heat
price for consumers. The plan was to build the plant by private investment (70 million Euro) with no public financial
support. The company fulfilled all national regulatory requirements on construction and environment protection.
In July 2012, the Vilnius District Environment Protection Department issued a decision regarding the construction
of the waste-to-energy plant and confirmed that the planned economic activity complies with environmental
standards. The construction has started in October 2013 and was expected to finish in 2015. However, on 23
January 2014 the Seimas of the Republic of Lithuania adopted an amendment to the Waste Management Law,
and later on 19 February the Government adopted the decision (“Regarding the Procedure of the establishment
of waste management objects of national importance”) which established mandatory state control (at least 51%
of shares and voting rights belonging to the state or their owned entities) of companies which will use municipal
waste not suitable for recycling, after sorting, for energy production. The state-owned energy company “Lietuvos
Energija” will be granted the rights of controlling such undertakings. Such regulation, in force from 1 January
2015, will be applicable not only to new plants, but also to plants currently under construction. Consequently, the
application of the adopted national provisions implies that the “Reenergy“ construction process must be stopped,
the plant demolished or nationalised.
2. A Resolution of the Lithuanian Government (28 May 2014) stopped the implementation of another large-scale
project (“Modernisation of Vilnius CHP Plant No.3“), which was adopted two months before by the Vilnius
municipality. Under the Government Resolution, the Vilnius and Kaunas District Heating modernisation projects
involving construction of local and renewable energy based CHP plants have to be recognised as projects of
national importance. Therefore, the state entity “Lietuvos energija“ received exclusive rights to implement CHP
plant projects (including allocations from EU Structural Funds). Such decision creates a barrier for other entities to
participate in the heat market.
3. Discriminative provisions for getting support from the Lithuanian Environmental Investment Fund (LEIF) which is in
charge of financing and supervising environmental investment projects in Lithuania. In May 2014, the LEIF approved
the Climate Change Pragramme Funds Allocation Plan and launched a call for proposals (modernisation of outdated
biofuel boilers) with the requirement that only District Heating companies which own their supply (transmission)
infrastructure can apply for support. A similar requirement has been established in a call for proposals launched by
LEIF on July 2013. It creates unfair competition between public and private District Heating companies.

LITHUANIA
According to strategic objectives, priority is given to development of district heat generated from biofuel, other renewable
energies and municipal waste. The goal is to reach 80% of this renewable and waste District Heating production in 2020.

Fuel conversion from natural gas to biofuel
Private capital companies (especially Dalkia, through their subsidiaries “Vilniaus energija” and “Litesko”) initiated forward-
looking projects based on boiler conversions to biofuel. For example, in 2006 “Vilniaus energija” invested into building a
new 60 MW biofuel boiler at Vilnius CHP Plant No. 2, which at present remains the largest in Lithuania. The introduction
of such large-scale biofuel CHP plant led to substantial improvement of biofuel production, logistics and quality assurance
infrastructure. This was an impulse to create a new industry branch - biofuel production and supply.
Examples of recently implemented biofuel projects (fuel conversion from natural gas to biofuel), which led to the reduction
of District Heating prices for customers by 10-25%:
• Modern biomass CHP plant (27 MWth/11 MWe) in Siauliai city (2012);
• New biomass CHP plant (20 MWth/5,4 MWe) in Alytus city (2012);
• New biofuel boiler (5 MWth) in Plunge city (2013);
• New biofuel boiler-house (10 MWth) in Mazeikiai city;
• New Noreikiskes biofuel boiler-house (4 MWth boiler + 1MWth economiser) in Kaunas city (2013).
At the end of 2013, around 265 biofuel-based boilers were operated by Lithuanian District Heating companies, with a total
installed capacity of 716 MWth. With the support of EU structural funds (2007-2013), an estimated 325 biofuel boilers
(totalling 1000 MWth) will be in operation by the end of 2015. This process has brought additional social advantages, as
the new infrastructure for the biofuel boiler-houses has been built and installed by Lithuanian manufacturers (such as
Enerstena, Kalvis, Axis Industries, Umega). They were able to provide best price-quality ratio in Europe, equipment better
suited the unstable local biofuel quality as well as prompt maintenance services. The table below shows the recent status
(2014) and future estimate (2016) for each city in Lithuania, comparing the biofuel boilers installed capacity with the
average load of separate District Heating systems (in winter):
STATUS OF LITHUANIAN CITIES COMPARING THE INSTALLED CAPACITY OF BIOFUEL BOILERS

IN RELATION TO THE AVERAGE LOAD OF SEPARATE DISTRICT HEATING SYSTEM: “GREEN”,
“HALF-GREEN” AND “NATURAL GAS”
Data on 1 October 2014 Data on 1 January 2016

Share of biofuel Share of biofuel
District Heating for covering for covering
No. City status for
the average
City status for
the average
company District Heating District Heating
District Heating District Heating
fuel input fuel input
load during load during
heating season heating season
1 UAB “Birštono šiluma” Green City 80% Green City 80%
UAB “Fortum
2 Green City 100% Green City 100%
Švenčionių energija”
UAB “Ignalinos
šilumos tinklai”
UAB “Kaišiadorių
šiluma”
UAB “Kretingos
šilumos tinklai”
6 UAB “Lazdijų šiluma” Green City 100% Green City 100%
UAB “Litesko” fil.
“Biržų šiluma”

LITHUANIA

No. City status for
the average
City status for
the average
“Kazlų Rūda”
“Kelmės šiluma”
UAB “Mažeikių
šilumos tinklai”
11 UAB “Molėtų šiluma” Green City 100% Green City 100%
12 UAB “Pakruojo šiluma” Green City 100% Green City 100%
UAB “Plungės
šilumos tinklai”
UAB “Radviliškio
šiluma”
UAB “Raseinių
šilumos tinklai”
16 UAB “Skuodo šiluma” Green City 100% Green City 100%
UAB “Šilalės
šilumos tinklai”
UAB “Šilutės
šilumos tinklai”
19 UAB “Širvintų šiluma” Green City 100% Green City 100%
UAB “Tauragės
šilumos tinklai”
UAB “Utenos
šilumos tinklai”
22 UAB “Varėnos šiluma” Green City 100% Green City 100%
“Alytaus energija”
UAB “Šakių
šilumos tinklai”
Rokiškis
(AB “Panevėžio energija”)
Kupiškis
Zarasai
28 AB “Kauno energija” half-green/nat.gas City 60% Green City 75%
29 AB “Klaipėdos energija” half-green/nat.gas City 60% Green City 80%
Panevėžys
30 half-green/nat.gas City 30% half-green/nat.gas City 40%
UAB “Akmenės
31 half-green/nat.gas City 50% Green City 70%
energija”
UAB “Jonavos
šilumos tinklai”
“Druskininkų šiluma”
“Marijampolės šiluma”

LITHUANIA

No. City status for
the average
City status for
the average
UAB «Litesko» fil.
«Palangos šiluma”
“Telšių šiluma”
“Vilkaviškio šiluma”
39 UAB “Šiaulių energija” half-green/nat.gas City 40% Green City 70%
UAB “Fortum
Joniškio energija”
UAB “Prienų energija”
Trakų padalinys
Pasvalys
42 UAB “Vilniaus energija” Natural gas City 25% Natural gas City 30%
43 UAB “Anykščių šiluma” Natural gas City 20% half-green/nat.gas City 50%
UAB “Elektrėnų
44 Natural gas City 0% Green City 90%
komunalinis ūkis”
45 UAB “Prienų energija” Natural gas City 20% Green City 90%
Kėdainiai
46 Natural gas City 0% Natural gas City 0%
UAB “Šalčininkų
47 Natural gas City 30% Green City 80%
šilumos tinklai”
48 VĮ “Visagino energija” Natural gas City 30% Natural gas City 40%
Jurbarkas
49 Natural gas City 0% Natural gas City 0%
(AB “Kauno energija”)
Efficiency in District Heating transmission

The small District Heating company “Akmenės energija“ (leased by local investors E-energija) is the Lithuanian leader in
District Heating losses reduction from 37% (in 2010) down to 10% (in 2013). This company maintains around 21 km of
District Heating pipe network. The figure below shows the change in District Heating transmission losses for the other
District Heating companies.

%
0
5
10
15
20
25
30
35
40
Lithuania - 15
UAB „Akmenės energija“
2000
UAB "Fortum Švenčionių energija"
UAB "Širvintų šiluma"
Total number of citizens

LITHUANIA
AB "Klaipėdos energija"
2010
UAB "Fortum Joniškio energija"
UAB "Ignalinos šilumos Hnklai"
UAB "Vilniaus energija"
2013
UAB "Šilalės šilumos Hnklai"
Number of citizens served by District Heating

UAB "Šakių šilumos Hnklai"

UAB "Utenos šilumos Hnklai"
2 HEAT MARKET
UAB "Pakruojo šiluma"
UAB "Lazdijų šiluma"
UAB "Tauragės šilumos Hnklai"
UAB "Raseinių šilumos Hnklai"
UAB "Molėtų šiluma"
UAB "Anykščių šiluma"
UAB "Prienų energija" Prienų rajonas
AB "Panevėžio energija"
UAB "Mažeikių šilumos Hnklai"

UAB "Litesko" filialai
AB "Kauno energija"
2,943,000
1,666,000
UAB "Birštono šiluma"
Reduction of DH transmission losses in each District Heating company (%)
AB "Šiaulių energija"
AB "Jonavos šilumos Hnklai"
UAB "Plungės šilumos Hnklai"
UAB "Kaišiadorių šiluma"
UAB "Šilutės šilumos Hnklai"
COUNTRY BY COUNTRY / 2015 Survey

LITHUANIA

57%
2013 2011 2009

million m 2
35.3 34.8 35.5
Source In %
Natural gas 5%
Electricity 2%
Coal 4%
Renewables* 32%
Other 1%
TOTAL 100%

LITHUANIA
1%
District Hea2ng
32%
Natural gas
Electricity
56% Coal
Renewables*
Other
4% 5%
2%
The major problem of the Lithuanian District Heating sector is inefficient heat consumption in apartment buildings. In 2013,
around 7.5 TWh of heat were delivered to consumers: 72% consumed by inhabitants, 13% by budgetary organisations, 7 %
for industry/commercial purposes and 8% by other users. Old apartment buildings (built before 1992) consume 3-5 times
more heat (25-35 kWh/m2/month), as compared to new or renovated apartment buildings (9 kWh/m2/month). However,
the share of modern apartment buildings in Lithuania is less than 5% of the total housing stock. The remaining 80% of
buildings have no energy efficiency measures installed. A large amount of heat must be supplied to such dwellings for
maintaining the temperature fixed by hygiene norms (18 – 20°C) for living premises. For example, during the 2013-2014
heating season, the difference in heating bills for a 60m2 standard flat was significant: 45 Euro/month in new dwellings and
120 Euro/month in old non-renovated dwellings.
It should be noted that the heat demand for tap water and inside circulation of hot water was only about 1,857 GWh (34%
of all heat consumed). The heat demand for hot water circulation could drop by 20% only after overall modernisation of
the inner hot water preparation systems.
Up to 2013, the modernisation process of multi-family apartment houses has not been accelerated due to political
divergences as well as lack of information and disagreements at local community level. Only 3-4 % of all apartment
buildings (600-700 buildings) were fully renovated.
During winter, the average heating expenditure represents approximately 30% of total monthly family income in Lithuania.
Inhabitants of apartment buildings usually lack the technical possibilities to regulate heat consumption. Therefore, state
authorities applied a reduced VAT rate of 9 % for District Heating since 1 July 2004. Also low-income inhabitants receive
monthly compensations for heating and hot water bills. It seems that District Heating suppliers and consumers, as well
as state authorities are interested in the promotion of more rational heat consumption, implementing a range of energy
efficiency measures in buildings. Unfortunately, it seems that from the beginning of the Lithuanian independence, a
big mistake was made: privatisation of separate apartments, but not multi-family apartment building as a whole. Such
decision created a situation in which there is no single owner of a building. As a result, a number of important decisions
related to maintenance of common property have not been accepted and implemented. A part of residents treat their
apartment as absolute private property and behave regardless of other co-owners interest. Many inner heating systems
are reconstructed illegally (radiators, heating surfaces, etc.) and the inner heat and hot water systems thus became
hydraulically unbalanced. This situation has resulted in overall heat consumption increase, ultimately paid by all owners
(inhabitants) in the apartment buildings.
If overall complex renovation of apartment blocks were implemented, it would be possible to reduce their heat
consumption by up to 50%. However, such level of renovation requires large investments and is possible only with the
support of public financial schemes.

LITHUANIA
In order to reduce heat bills, saving 20-30% of heat consumed in apartment buildings could be possible by a very simple
five-step low-cost investment program:
• Hydraulic balancing of heating systems in buildings;
• Installation of thermostatic valves at each heating device (radiator);
• Mounting of heat allocators on each heating device (radiator);
• Hydraulic balancing of domestic hot water systems in buildings;
• Installation of antimagnetic hot water meters equipped with remote data capture and management systems.
Investments in the abovementioned energy efficiency measures are significantly low: only about 15 Euro/m2 (870 Euro
for standard 60m2 apartment), with a pay-back period of 4-5 years. Inhabitants would be able to make immediate
savings, before overall renovation. This proposal was made by the Lithuanian District Heating Association to government
institutions striving to implement the provisions of the Directive 2012/27/EU on energy efficiency in Lithuania.


Natural gas 4,079 3,466 7,545
Renewables* 1,278 947 2,225
Waste 126 126
TOTAL 5,704 5,804 11,508

LITHUANIA

14,000
12,000
10,000
Waste
8,000
Renewables*
TJ
6,000 Natural gas

2,000
0
in TJ in TJ in TJ

In 2013, about 0.283 TWh of green electricity was produced in biofuel cogeneration power plants, equivalent to
approximately 10.8% (4.5% in 2011) of the total electricity volume (2.621 TWh) generated by all CHP plants and to 6.4% of
the total volume of electricity (4.4 TWh) produced in the country. In addition, about 6.5 TWh of electricity was imported.
The final electricity consumption in Lithuania was 9.645 TWh in 2013.
After the closure of the Ignalina Nuclear Power Plant in 2009, the national electricity production strongly decreased.
CHP plants are built and operating in all large Lithuanian cities. Unfortunately, with the natural gas and fuel oil price
growing, the electricity produced in such a CHP plant can hardly compete with cheap imported electricity. As a result, old
CHP plants operate at minimum capacity, and no new large-scale natural gas CHP plants were built over the past 15 years.
Most of them are small internal combustion cogeneration engines that use natural gas, generating 0.2-2 MW electricity.
Such generated electricity is purchased at a premium rate, or used for own needs. In 2013, the total installed CHP capacity
both in District Heating companies and independent heat producers was 680 MWe and 1,480 MWth, including 68 MWe
and 284 MWth of biofuel CHP capacities (see table below).
BIOFUEL CHP IN THE DISTRICT HEATING SECTOR (DATA ON 1 OCTOBER 2014)
Technical parameters Total

Condensing thermal
Biofuel boiler Turbo unit capacity
economiser
Company/ of District Type
No Installed Installed Installed
Bio CHP Plant Installed Construction
thermal electricity thermal
Construction Heating of fuel
capacity date date
capacity capacity capacity network
In MW Year In MWth In MWe In MWth Year MWth
DH companies
UAB “Vilniaus
1 60.00 2006 40.31 15.00 19.40 2010 59.71 biofuel
energija”/Plant No.2
AB “Kauno energija”/
biogas/
2 Noreikiškes boiler- 1.05 0.75 1.05
nat. gas
house

LITHUANIA
Technical parameters Total

Condensing thermal
Biofuel boiler Turbo unit capacity
economiser
Company/ of District Type
No Installed Installed Installed
Bio CHP Plant Installed Construction
thermal electricity thermal
Construction Heating of fuel
capacity date date
capacity capacity capacity network
In MW Year In MWth In MWe In MWth Year MWth
UAB “Litesko”/
3 20.20 2012 13.90 5.40 4.90 2012 18.80 biofuel
Alytus RK
UAB “Litesko”/
4 16.00 2007 16.00 2.50 4.50 2011 20.50 biofuel
Marijampolė RK
AB “Panevėžio 8.00 2012 8.00 1.25 biofuel
5 energija”/ 4.00 2012 20.00
Panevėžys RK-1 8.00 2012 8.00 1.25 biofuel
AB “Šiaulių energija”/
6 40.39 2012 27.37 10.81 9.80 2012 37.17 biofuel
Šiauliai CHP Plant
UAB “Utenos
7 šilumos tinklai”/ 10.7 2012 8.1 2.55 2.40 2012 10.50 wood
Utena CHP Plant
UAB “Tauragės šilumos
8 12.00 2006 9.47 0.75 7.00 2008 16.47 wood
tinklai”/Beržė RK
TOTAL (DH COMPANIES): 175.29 132.20 40.26 52.00 184.20
Independent Heat Producers (IHP)
1 UAB “Ekoresursai” 1.5 2011 1.5 1.2 1.5 biogas
biofuel/
UAB “Fortum
2 70.0 2013 50.0 20.0 14.6 2013 64.6 municipal
Klaipėda”
waste
3 UAB “Kurana” 12.5 2012 12.5 4.0 12.5 biogas
UAB “Energijos parkas” 0.4
4 (Kairių miestelis, 2011 0.8 0.6 0.8 biogas
Šiauliai) 0.4
UAB “Autoidėja”
(Elektrėnai;
5 0.8 2012 0.8 0.8 0.8 biogas
Kaziokiškių
savartynas)
UAB “Plungės
6 16.0 2007 16.0 1.0 3.7 2007 19.7 wood
bioenergija”
TOTAL (IHP): 101.6 81.6 27.6 18.3 99.9
TOTAL (DH COMPANIES): 175.3 132.2 40.3 52.0 184.2
TOTAL
276.9 213.8 67.9 70.3 284.1
(IHP+DH COMPANIES):
The last and exclusively natural gas based modern CHP plant (35 MWe / 35 MWth capacity) was built in Panevezys in 2008.
For the first time in Lithuania efficient gas turbines, steam back-boilers and other innovations were installed. Such a CHP
plant can transform a larger proportion of fuel into electrical energy, and the remaining heat is used for District Heating
in Panevezys. Currently, this is the highest energy efficiency natural gas based CHP plant in Lithuania. Both the Danish and
Lithuanian governments have given non-refundable financial support for the implementation of this project.
Lithuania follows the EU energy policy oriented to the wider use of renewable energies. A renewable energy development
strategy was adopted. The renewable energies law requires that 105 MWe renewable energies based CHP plants should
be built before the end of 2020. This is the legal basis for the development of such technologies in the Lithuanian District
Heating sector. The first larger biofuel CHP plant was built in the Marijampolė District Heating company (Litesko branch).
In 2006, “Vilniaus energija” invested into building a new 60 MW biofuel boiler at Vilnius CHP Plant No. 2, which at present
remains the largest in Lithuania. The reconstruction of the CHP plant was made by changing the modern MAN turbine
device, which can achieve a green electricity generating capacity of up to 17 MW. In addition, about 43 MW of heat from
biofuel is produced and supplied to District Heating consumers in Vilnius.

LITHUANIA
It should be noted that together with construction of the biofuel cogeneration plants, other new technologies entered the
Lithuanian District Heating sector. These include “boiling layer“ stokers, electrostatic smoke filters, various condensing
economisers, fuel handling and processing facilities, chimneys adapted for “wet” work, smoke condensate processing
systems, modern steam turbines, automatic control systems, etc. The skills and experience District Heating companies
employees and contractors has grown with each project and Lithuanian experts are now involved in various projects in
European and post-Soviet countries.

USE OF BUILDINGS
The heating season in Lithuania lasts 6-7 months per year. Heating degree days are set by the norms of building climatology
(1995). The maximum heating degree days in Lithuania come to 4,081 and the minimum to 3,445. For example, in Vilnius
there are 4,005 heating degree days (during a season) when average temperature of a day is lower than +10°C, 3,815 for
+8°C and 2,664 for 0°C.

Lithuania’s climate is affected by global factors and local geographical conditions. The major impact is due to the geographical
position of Lithuania, being located in the northern part of the middle latitude climate zone. Lithuania is attributed to the
south-western sub area of the Atlantic continental forest area. Only the Lithuanian Baltic Sea coast climate is close to the
western Europe climate and could be ascribed to the separate climate sub area of the southern Baltics.
The biggest impact upon the Lithuanian climate comes from the Atlantic Ocean, as well as the mild waters of the Gulf
Stream washing along the western coasts of Europe.
Most often Lithuania’s climate is affected by the middle latitude (80-87%) air front: more often continental in spring and
summer, and a sea-air front in autumn and winter. Lithuania is less frequently affected by arctic weather (6-17%) and
very rarely by tropical weather (1-2%). The average annual temperature in Lithuania is 6.2°C. The difference between the
warmest July month and the coldest January month is 21.8°C. The biggest volume of precipitation falls in the summer
period (up to 50% of annual precipitation amount), while the lowest volume falls in spring, because anticyclones are
prevalent at that time.

Over the last decade the renovation process of multi-family apartment buildings is implemented too slowly, thus the
annual consumption of heat remains at the same high level - around 210 kWh/m2.
Lithuanian District Heating Association

V.Gerulaitis str. 1, LT-08200, Vilnius, Lithuania
Tel: +370 266 7097
Fax: +370 235 60 44
www.lsta.lt
Contact Person: Ramunė Gurklienė
Email: ramune@lsta.lt

80% 5,850
MWth
TOTAL INSTALLED
DISTRICT HEATING
CAPACITY
OF DISTRICT HEAT
COMES FROM
DIRECT RENEWABLES
AND RECYCLED HEAT OF PIPELINES
TRANSPORT
AND DISTRIBUTION
THE NETHERLANDS
ROEL KALJEE
THE NETHERLANDS
1 DISTRICT HEATING
KEY FIGURES
2013 2011 2009

4,000 3,900 3,800
network (one way)
Number of District Heating systems* 400
*
District Heating system is a heat distribution network with its own heat source, technically independent from other networks, regardless of
2013 2011 2009

TOTAL 26,100 24,500 25,300

30,000
25,000
20,000
Services and other
TJ
15,000
Industrial sector
5,000
0
2013 2011 2009
The Netherlands - 2 COUNTRY BY COUNTRY / 2015 Survey

THE NETHERLANDS
4,500 30,000
4,000
25,000
3,500
Total sales (in TJ)

3,000 20,000
2,500
15,000
2,000
1,500 10,000
1,000
5,000
500
0 0
2013 2011 2009
Total sales

2013 19.4 23.5
2011 16.5 19.6
2009 19.9 23.7
HEAT SALES TURNOVER

2013 26,100 19.4 505.9
2011 24,500 16.5 403.5
2009 25,300 19.9 504.7

THE NETHERLANDS
2013 2011 2009

In cogeneration
Natural gas 21,000 60.7 % 20,300 62.1 % 21,000 65.9 %
Combustible renewables* 310 0.9 % 220 0.7 % 210 0.7 %
Waste** 1,200 3.5 % 1,000 3.1 % 1,050 3.3 %
Combustible renewables* 15 0.1 % 15 0.1 % 10 0.1 %
Solar and other 160 0.5 % 160 0.5 % 150 0.5 %
Industrial surplus heat 860 2.5 % 900 2.8 % 750 2.4 %
Others
Natural gas 7,000 20.2 % 5,800 17.7 % 5,100 16 %
TOTAL 34,615 100 % 32,700 100 % 31,885 100 %

** Includes both biodegradable fraction and non-renewable waste
100%
90%
80%
70%
60% Other
Direct Renewable
50%
Recycled Heat
40%
30%
20%
10%
0%
2013 2011 2009

THE NETHERLANDS

In the Netherlands, heat supply from District Heating schemes represents a relatively small proportion of total heat
consumption. At present about 4.4% of all dwellings in the country have a District Heating connection. The total share of
District Heating is slowly increasing. Consumer protection is regulated through the Dutch Heat Act, which came into force
in 2014. There is growing recognition of the positive contribution Combined Heat and Power (CHP) and District Heating
make towards meeting environmental objectives. Scenarios for the future development of the District Heating market
vary strongly, because expected impact of changes in conditions on the heat market are both positive and negative.
With a penetration in the heat market of only 4.4%, there is a lot of room for growth in the share of District Heating.
Nevertheless, the potential for further increases in District Heating sales is uncertain due to changes in the regulations
caused by the Heat Act. The long-term perspectives will largely depend on energy prices, the impact of market liberalisation
and government environmental policies.
The share of District Heating in glasshouses horticulture and the tertiary sector (e.g. offices, schools, hospitals, universities)
differs quite significantly from its share in the housing sector. In the city of The Hague, for instance, more than 45% of
offices, including government buildings and both houses of parliament, are heated by District Heating. Provincial and
municipal departments, partly initiated by energy distribution companies, decide upon District Heating planning. If District
Heating has been chosen, there is usually no need for a gas distribution network; electricity is then used for cooking.
The Netherlands has huge domestic reserves of natural gas, which is used for heating, industrial processes and generating
electricity. Coal used for the generation of electricity is imported from several countries. The Netherlands is a net importer
of electricity and a net exporter of natural gas.
Actors in the District Heating market
In the Netherlands, the distribution of heat is generally carried out by energy companies, which are also active in the retail
and wholesale markets for gas and electricity. These District Heating companies, therefore, also own the transport and
distribution infrastructure. Most of the heat is produced by four generation companies, two of which also sell and distribute
their heat. Several District Heating companies also run their own CHP plants, and the number of small-scale innovative,
renewable projects (heat pumps, geothermal units, small-scale biomass generation, etc.) is growing. The District Heating
companies are members of Energie-Nederland, the Association of Energy Producers, Traders and Retailers in the Netherlands.

The Heat Act
In 2003, the Dutch Parliament decided to introduce a Heat Act. The Act protects small-scale consumers by regulating the
price they pay for heat, setting a reasonable maximum price. The Act also regulates the security of heat supply. Further
details of the Heat Act still have to be worked out by the Ministry of Economic Affairs and the energy regulator. The most
important elements of the regulations are in place from January 2014.
Environment
Most District Heating initiatives date back to the 1980s, when high gas prices encouraged energy-saving projects. The
distribution of heat and CHP saw further growth in the 1990s as a result of efforts to reduce emissions of acidic compounds
and CO2. This energy-sector programme – the Environmental Action Plan – also entailed measures to improve energy
efficiency (high efficiency gas-fired boilers and insulation).
Building regulations relevant for CHP/District Heating and Cooling
For new buildings, energy efficiency norms are the main tool for improving energy savings. On 15 December 1995, the
Dutch government published an act that requires an “Energy Performance Standard” to be determined when a new
building is designed and built. The method used to calculate the energy performance set the coefficient for District
Heating 10% higher than for high-efficiency heat-only boilers. The 10% higher rating for District Heating (combined cycle)
was meant to increase incentives for connecting the building to a District Heating network. The new “Energy Performance
Standard” introduced in 2011 makes it even more challenging for builders to meet required efficiencies. The method used
to calculate energy performance according to the new standard was published in 2012. From 2015, the standard is again
set to a more ambitious level.
There are also energy taxes, subsidy schemes and fiscal incentives in place. Subsidies for solar water heaters, heat pumps
and micro-CHP have been available from September 2008 until 2010. This scheme of subsidies (Renewable Heat) is
available to private individuals and non-profit organisations that invest in existing housing. Currently, renewable heat is
part of wider renewables subsidy scheme (SDE+).

THE NETHERLANDS
2 HEAT MARKET


4%
DEVELOPMENT OF DISTRICT HEATING CONSUMERS
Year Number of dwellings connected to District Heating networks

2009 310,000
2011 326,000
2013 343,000
2013 2011 2009

million m2
41 39 37

THE NETHERLANDS
Source In %
District Heating 4%
Natural gas 93%
Renewables* 2%
Heat pumps 1%
TOTAL 100%
2% 1%
4%
District Hea1ng
Natural gas
Renewables*
Heat pumps
93%

LATEST DEVELOPMENTS IN CHP APPLICATIONS - CHP INVESTMENT/SUPPORT ASPECTS
Investment subsidies
Currently there are no subsidies for investments in CHP.
Energy tax exemption for heat
As gas and electricity supplied to consumers are subject to energy taxes and CHP heat is not, the operation of CHP units is
more profitable. Retail prices of heat are linked to the total gas price paid by consumers: if the energy tax on gas increases,
the income from heat for the owner of the CHP production unit increases by the same amount.

THE NETHERLANDS
Heating degree days, which are listed below, are defined for an outdoor temperature of 18°C, based on an average
temperature for a 24-hour per day period and measured once per 24 hours by the KNMI (Royal Netherlands Meteorological
Institute) weather station at De Bilt. Over the last 30 years, the average number of heating degree days was 2,978 days per
year. The average heat demand per household is 34 GJ/year.
Year Heating degree days

2001 2,880
2003 2,913
2005 2,765
2007 2,525
2009 2,869
2011 2,666
2013 3,094

The Netherlands, which is situated between the latitudes of 51°N and 54°N, has a maritime climate, characterised by
mild winters, a lot of rain and strong winds. The heating season lasts from October through to April. The average outdoor
temperature during the heating season is approximately 5°C.
Association of Energy Companies in the Netherlands (Energie-Nederland)

Lange Houtstraat 2, 2511 CW The Hague, Netherlands
Tel: + 31 70 3114350
www.energie-nederland.nl
Contact Person: Roel Kaljee
Email: info@energie-nederland.nl

NORWAY
3,300
MWth
TOTAL INSTALLED
DISTRICT HEATING
76% CAPACITY
145
MWth
OF DISTRICT HEAT
COMES FROM TOTAL INSTALLED
DIRECT RENEWABLES DISTRICT COOLING
AND RECYCLED HEAT CAPACITY
NORWAY
HEIDI JUHLER
NORWAY
1 DISTRICT HEATING
KEY FIGURES
2013 2011 2009

1,686 1,334 1,100
network (one way)
Cooling in Euro (excluding operational and maintenance 155 M 213 M 145 M
costs)*
Average CO2 emissions per GWh of district heat generated 261 310 300
* Euro exchange rate used (annual average): 1 EUR = 8.8 NOK (2013), 1 EUR = 7.7 NOK (2011), 1 EUR = 9 NOK (2009)
2013 2011 2009

TOTAL 16,920 13,859 13,360

18,000
16,000
14,000
12,000
Services and other
10,000
TJ

4,000
2,000
0
2013 2011 2009
Norway - 2 COUNTRY BY COUNTRY / 2015 Survey

NORWAY

District Hea6ng development
1,800 18,000
1,600 16,000
1,400 14,000
Total sales (in TJ)

1,200 12,000
1,000 10,000
800 8,000
600 6,000
400 4,000
200 2,000
0
-‐ 0
2013 2011 2009
Total sales
AVERAGE DISTRICT HEATING PRICE IN EUR/GJ *

(annual average)
2013 18.1 22.6 8.8
2011 16.0 20.0 9
2009 20.8 26.0 7.7
HEAT SALES TURNOVER
2013 16,920 18.1 306.3
2011 13,859 16.0 221.7
2009 13,360 20.8 277.9

NORWAY
2013 2011 2009

In cogeneration
Solar and other 15 0.1 %
Renewable waste** 4,959 25.8 % 3,572 22.8 % 3,279 21 %
Renewable Electricity 5,141 26.8 % 3,488 22.2 % 4,273 27.4 %
Industrial surplus heat 792 4.1 % 788 5% 1,252 8%
Others
Natural gas 904 4.7 % 916 5.8 % 839 5.4 %
Oil and petroleum products 360 1.9 % 1,328 8.5 % 1,095 7%
Non-renewable waste*** 3,306 17.2 % 2,381 15.2 % 2,186 14 %
TOTAL 19,214 100 % 15,679 100 % 15,623 100 %

** Biodegradable fraction of municipal waste in accordance with Art. 2e of the Renewables Directive
*** Non-biodegradable fraction of municipal waste in accordance with Art. 2e of the Renewables Directive

100%
100% 90%
90% 80%
80% 70% Other
70% 60% Other Direct Renewable
60% 50% Direct Recycled

Renewable
Heat
50% 40% Recycled Heat
40% 30%
30% 20%
20% 10%
10% 0%
2013 2011 2009
0%
2013 2011 2009

NORWAY
There are several requirements for using renewable and CO2-neutral resources in the District Heating system in Norway.
Fossil fuel is used only for peak load, and has decreased every year. In 2013, the amount of light fuel oil was 1.9% (100
GWh) and LNG/LPG was 4.7% (251 GWh). The total net District Heating production was 5.3 TWh. The production peak in
2010 was due to an extremely cold winter. The last three years have been warmer than the average, which is also a reason
for less fossil fuel use.
Fuel use for District Heating

Fuel Fuel
use ufor
Fuel se D
ufor District
istrict
se for H Hea3ng
Dea3ng
istrict Hea3ng
6 ,000
6,000
6,000
5 ,000
5,000 4,000
TWh
4 ,000
4,000 2,000 Heat Heat
pumps pumps
CHP
CHP
-‐
TWh
TWh
3 ,000
3,000 Industrial
Industrial whaste
waste eat heat
1991
1993
1995
1996
1997
1998
1999
2001
2003
2005
2006
2007
2008
2009
2011
2013
1990
1992
1994
2000
2002
2004
2010
2012
Waste Waste
Biomass
Biomass
2 ,000
2,000 Bio-‐ f Bio-‐fuel
uel
Heat pumps CHP Industrial waste heat
Solar Solar
1 ,000
1,000 Waste Biomass Bio-‐fuel Gas Gas
Oil Oil
Solar Gas Oil Electric
Electric boiler boiler
-‐ -‐0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Electric boiler

In 2013, the national heat market is estimated at 50 TWh/180 PJ (about 60 TWh/216 PJ including the industrial sector).
The District Heating and Cooling market was close to 10%, equivalent to 4.9 TWh/17.6 PJ, out of which 4.7 TWh District
Heating and 156 GWh District Cooling).
The District Heating and Cooling market has grown steadily over the years, despite warm winters and surplus (low-priced)
electricity from hydropower, which represents more than 60% of the heat market.
With a dominant hydropower system, District Heating has a minor role in Norwegian energy supply, but is considered as
an important back-up for the power system in larger cities. Governmental goals will push the District Heating and Cooling
sector to be fossil fuel free by 2020.

The Energy Act lays down concessions for District Heating companies (1986) connected to municipal energy planning
systems to establish local District Heating networks as a supplement to the electricity system, using surplus heat, waste
heat and renewable resources. It includes a regulation of prices to protect customers.
The Planning and Building Act includes an obligation to connect to District Heating as from 1986. A new 2010 building
code requires a decrease in fossil fuel and electric heating, as well as a minimum 60% of renewable heat in all buildings
over 500m2. Moreover, fossil fuels and direct electric heating are banned in new and renovated buildings. The overall aims
of this legislation are to ensure energy flexibility in the energy system, and to increase competition in the heat market.
For the industrial sector, there is a tax deduction on electricity used in District Heating production as well as on the NOx tax.

NORWAY

OF DISTRICT HEATING
1. There is a financial support scheme for District Heating infrastructure and renewable heat and cooling production,
with an aim to make the energy system more flexible and increase security of supply. This has been an important
driver for the growth of District Heating over the last years. It is expected to lead to new expansion mostly in existing
urban areas covered by District Heating. District Cooling could also be a driving force for more district energy.
2. The Energy Act and the Planning and Building Act are favourable to District Heating.
3. Several taxes are in place for other technologies, such as the carbon tax and basic tax on fuel oil. The tax on use of
electricity (with a small increase from 1.44 cent to 1.58 cent as of 2015) is welcome, but not enough.
4. The tax deduction of electricity tax and NOx for the industry, transport and District Heating sector.
5. Additionally, waste planning and the landfill ban bring a positive contribution.

1. The energy labelling system discriminates the use of District Heating and bioenergy, and rewards in-house energy
systems with heat pumps and solar heat.
2. There is a risk that the new building code 2015 will not preserve the requirements for flexible heating systems.
3. The poor network of in-house waterborne systems is a barrier for expanding District Heating.
4. Low energy prices combined with a low energy tax do not encourage District Heating.
5. The environmental taxes are important, but not efficient enough to make changes and better profitability for use
of renewable energy.
6. The lack of knowledge and interest in District Heating within Energy Authorities, media and the wider public is a barrier
to get the right decisions and gives room for misconceptions about District Heating being a burden for customers.
7. The green certificate system for electricity reduces available capital for District Heating expansion.
1. More solar heat, geothermal heat and flexible surplus electricity from hydropower.
2. Heat storage for the use of waste heat, industrial heat and solar heat.
3. Large-scale heat pumps for geothermal heat.
4. New technologies aimed at reducing emissions from bioenergy combustion.

Skedsmo Kommune is a fast growing municipality (52,000 inhabitants). Akershus Energi has for the last six years established a
significant District Heating and Cooling business in the Akershus county, with a goal to save 120,000 tonnes of CO2 in the region.
Step 1: A new part of the city of Lillestrøm was built in 2000, being a trigger for Skedsmo to establish a District Heating
and Cooling company. The presence of the Norwegian Trade Fair secured a big consumer of heating and cooling. A 4.3 MW
heat pump using sewage water was built in 2001.
Step 2: In 2006/2007 Akershus Energi took a 100 % ownership in the District Heating company and made a plan for District
Heating and Cooling for the rest of Lillestrøm. As a contribution to reduce greenhouse gas emissions, two main decisions
were made to support these plans:
Skedsmo decided to remove all oil boilers from their own buildings until 2017.
Skedsmo decided to implement an obligation to connect to the District Heating network for all new buildings with an area
above 300m2.
Furthermore the location of a second energy plant north in Lillestrøm was supported by the municipality.
Step 3: The good cooperation and common interest in the use of renewable and local resources among Akershus Energi
HEAT, Skedsmo, R&D bodies and the university (HiAk) has led to ambitious development plans and further cooperation:

NORWAY
• The area for District Heating has been extended to Strømmen.

• In the area Skedsmokorset, a new, separate District Heating system (additional 40 GWh) is under construction.
• Akershus EnergiPark in Lillestrøm has opened.
• Cooperation on infrastructure: renewal in parallel of infrastructure for District Heating.
• Common plans with fibre optic infrastructure for both the District Heating and Cooling needs and for the
municipality (schools and other buildings in town).
• Skedsmo has been converting electric heated buildings to water-based systems in order to connect to the District
Heating system.
• Akershus EnergiHeat has built a 13,000 m2 solar heating plant, connected to a heat storage tank of 1.2 million litres
of water.
• In 2013, Akershus EnergiHeat produced 69 GWh District Heating and 9.2 GWh District Cooling, based on renewable
resources only.
More information is available on http://akershusenergi.no/pages/energi-varme.
2 HEAT MARKET


1%

NORWAY
Source In %
District Heating 1%
Natural gas 1%
Electricity 60%
Renewables* 20%
Heat pumps 13%
TOTAL 100%

1% 1%
13%
District Heating
District hea1ng
Natural gas
20% Electricity
60% Renewables*
5% Heat pumps
Direct electric heating will continue to be dominant for space and hot water heating in buildings (between 60-70%). The
growth rate of new and refurbished buildings with waterborne systems is low. The use of oil boilers is declining (still 8%)
but will be phased out by 2020, due to the ban and support for converting to renewable sources. There is hardly any use of
gas in households, however some use in the industrial sector. Fossil free District Heating has a share of 10%, in competition
with small heat pumps and pellets burners.
3 DISTRICT COOLING
KEY FIGURES
2013 2011 2009

55 52 50

NORWAY
Development of installed District
Cooling
Development capacity
of installed (in MWth)
District Cooling capacity (in MWth)
160
140
120
100
MWth 80
60
40
20
0
2013 2011 2009
District
District Cooling trench Cooling trench length
length development (one way in km)
development (one way in km)
60
50
40
km
30
20
10
0
2013 2011 2009

District Cooling is rapidly expanding, reaching 156 GWh in 2013, a 17% growth compared to 2012. A small growth is noticed
during the financial crisis, but taking up, while the District Heating growth rate is decreasing, mainly in the service sector.

OF DISTRICT COOLING
1. The market is the driving force: population growth and urbanisation.
2. No regulation – higher prices than for District Heating, and better profitability.
3. New low-energy office buildings need cooling: new 2015 building regulations set clear requirements for low-
energy buildings.
4. No taxation on District Cooling.
5. Financial support for infrastructure and for cooling technology.

NORWAY

1. Very few District Cooling systems, there is no tradition for District Cooling.
2. The energy labelling system favours individual cooling.
3. The poor network of in-house waterborne systems is a barrier for expanding District Heating.

The municipality of Bærum (close to Oslo)
When the town of Sandvika developed a new district back in 1985, the local energy supplier calculated that District Heating
using heat pumps, as production units, would be more profitable than other means of energy supply for heating purposes.
As heat pumps also have cooling capabilities, it was decided, following a market survey, to build a District Cooling system
with distribution lines in parallel to those for heating. It was the first large-scale District Cooling system in Scandinavia.
The concept was an immediate success and nearly all commercial buildings which had the possibility to connect, did
so. Building managers were happy to get rid of chiller maintenance and roof cooling towers with possible legionella
problems. In addition, valuable space was released. The energy supplier, Oslofjord Varme AS, has continued this concept
in all subsequent projects, and in 2013, cooling sales were 63 GWh, compared to heating sales of 215 GWh (taking into
account the cold Norwegian climate). However, there is a demand for cooling all year round, due to a lot of technical
installations in modern buildings.
The heat pumps have been specially designed for providing both heating and cooling. In Sandvika, where sewage water
is used as the heat source and heat sink, the evaporators can serve as condensers in summer mode. They have a separate
evaporator for District Cooling.
As District Cooling became increasingly popular, additional units were built with the possibility to run the compressors
in both serial and parallel operation. In winter mode, the temperature difference calls for two-stage, serial operation. In
summer mode, one stage is sufficient to reach a temperature where the surplus heat can be transferred to the sewage or
the sea. The two compressors can then run in parallel in order to produce more cooling.

CHP/District heat CHP/Industry

Source In TJ In TJ
Coal and coal products 234
Renewables* 8,700
Waste 36 1,665
TOTAL 270 10,365

NORWAY Fuel sources used for CHP in 2013
12,000
10,000
8,000
TJ
6,000
4,000
Waste
2,000 Renewables*

0
(in TJ) (in TJ)
CHP/District heat CHP/Industry

10,365 TJ

The only traditional CHP company is Longyear Bydrift on Svalbard, with a coal-fired power plant.
The electrical generation has a stable production of 50 GWh electric and 70 GWh heat per year.
There is minor production from waste heat incineration (10 GWh), sold to the electricity network, expected to be reduced
when the heat demand increases with new District Heating customers.

USE OF BUILDINGS

Norway has three climatic zones.
1. Inland climate: dry and cold winters, between -10 to -40°C, dry and warm summers.
2. Coastal climate: mild winters, warm summers, rain.
3. Polar climate: same variations between inland and coastal climate. Climate changes have been registered, with
warmer and more rainy winters, but with extreme local variations. The heating period seems to have decreased.
AVERAGE ENERGY USE OF BUILDINGS IN 2013: 130kW/m2

NORWAY
Norwegian District Heating Association (Norsk Fjernvarme)

Pb 7184 majorstuen, 0307 Oslo, Norway
Tel: +47 916 37125
www.fjernvarme.no
Contact Person: Heidi Juhler
Email: heidi@fjernvarme.no

53%
317
OF CITIZENS
ARE SERVED BY
DISTRICT HEATING
DISTRICT HEATING
SYSTEMS IN POLAND
56,521
MWth
TOTAL INSTALLED
DISTRICT HEATING
CAPACITY
POLAND
MAŁGORZATA KWESTARZ
POLAND
1 DISTRICT HEATING
KEY FIGURES
2013 2011 2009

20,139 19,620 19,286
Heating and Cooling in Euro (excluding 668,217,487 658,819,991 500,000,000
371.5 365.8 373.7
heat generated
455 companies 480 companies 500 companies
Number of District Heating systems**
and 317 systems and 329 systems and 337 systems
*Euro exchange rate used (annual average): 4.1975 PLN (2013), 4.1198 PLN (2011), 4.3273 PLN (2009)
**District heating System is a heat distribution network with its own heat source, technically independent from other networks, regardless of
2013 2011 2009

TOTAL 248,693 275,746 272,801

300,000
250,000
200,000
Services and other
TJ
150,000
Industrial sector
50,000
0
2013 2011 2009
Poland - 2 COUNTRY BY COUNTRY / 2015 Survey

POLAND
25,000 300,000
20,000 250,000
Total sales (in TJ)

200,000
15,000
150,000
10,000
100,000
5,000 50,000
0 0
2013 2011 2009
Trench length in km for transport and distribu=on network (one way)
Total sales

(annual average)
2013 12.4 15.25 4.1975 PLN
2011 11.2 13.8 4.1198 PLN
2009 9.6 11.8 4.3273 PLN
HEAT SALES TURNOVER

2013 248,693 12.4 3,083.3
2011 275,746 11.2 3,092.9
2009 272,801 9.6 2,617.5

POLAND
2013 2011 2009

In cogeneration
Coal and coal products 112,500 40.4 % 109,800 40 % 106,640 37 %
Oil and petroleum
5,273 1.9 % 6,844 2.5 % 16,900 5.9 %
products
Natural gas 10,525 3.8 % 10,024 3.7 % 8,074 2.8 %
Combustible
16,132 5.8 % 16,189 5.9 % 15,144 5.3 %
renewables*
Combustible
17,259 6.2 % 7,951 2.9 % 16,263 5.6 %
renewables*
Renewable waste** 316 0.1 % 315 0.1 % 363 0.1 %
Industrial surplus heat 9,616 3.5 % 10,612 3.9 % 9,510 3.3 %
Others
Natural gas 10,838 3.9 % 9,670 3.5 % 6,839 2.4 %
Oil and petroleum
5,495 2% 4,849 1.8 % 4,440 1.5 %
products
Non-renewable
514 0.2 % 600 0.2 % 959 0.3 %
waste***
TOTAL 278,300 100 % 274,347 100 % 288,423 100 %

** Biodegradable fraction of municipal waste in accordance with art. 2e of the Renewables Directive
*** Non-biodegradable fraction of municipal waste in accordance with art. 2e of the Renewables Directive
Energy
Energy supplyscomposition
upply composi0on
of generatedoDistrict
f generated
Heat District Heat
100%
90%
80%
70% Other
50%
Recycled Heat
40%
30%
20%
10%
0%
2013 2011 2009

POLAND
The structure of the District Heating fuels consumption over the past ten years has remained stable. Similar to 2004, the
dominant fuel is hard coal whose share has not significantly changed over this period: from 77.8% in 2004 to about 74%
in 2011 and to more than 75.5% in 2013. According to long-term energy forecasts, the share of coal in heat production is
expected to decrease. The increase in the share of coal in heat production in 2013 may be explained by a breach in the
continuity of the system supporting cogeneration which occurred in the Polish legislation in 2013 and resulted in the need
to use traditional heating sources. The use of brown coal to produce heat is low and its share remains stable (it amounted
to approximately 1.5 % in 2013). The share of fuel oil within the structure of fuels has decreased. In 2004, it amounted
to more than 8% and decreased by half in 2013, reaching 4%. However, the share of natural gas used to produce heat
increased, amounting to about 5% in 2004 and increasing to more than 8% in 2013. The share of combustible renewables
used in producing heat has also been growing - from 3.7% in 2004 to slightly more than 6.5% in 2013.

Until 2009, heat demand has been decreasing in Poland. It resulted from legislative changes concerning fees for supplied
heat and the reduction of heat demand as a result of thermal insulation of buildings. Between 2009 and 2013, the volume
of heat sold reached 260,000 TJ annually. Compared to the amount of heat sold since 2009, there has been a steady
tendency in the development of heat distribution networks. In 2013, the length of heat distribution networks in Poland
was estimated at 20,140 km, with a constant growth reaching 250 km per year.
According to the assumptions in the Polish Energy Policy by 2030, it is planned to replace heat-only generating plants
supplying the District Heating networks in Polish cities with cogeneration by 2030.
As far as the long-term planning of District Heating systems is concerned, three basic goals were formulated:
1. Low-emissions and decarbonisation of sources producing District Heating, with an emissions reduction target of
90% by 2050 (compared to 1990 levels);
2. Heat produced from renewable energy sources reaching at least 50% in the balance of final gross energy;
3. Heat produced, delivered and used efficiently i.e. achieving at least 20% of heat consumption reduction in 2020
and 30% by 2050 as a result of applied technological solutions.
Investments in the field of heat sources will undoubtedly be driven by air pollution limit standards.
The assessment of future recommended heating sources based on air pollution limits excludes the possibility to use hard
coal, and the combustion of natural gas is accepted only in highly efficient cogeneration systems. Renewable energy
sources are preferred because their emissions in the energy conversion process to functional heat are not recorded.
Three scenarios related to directions of changes in District Heating generation are assumed.
The conservative scenario assumes the gradual decommissioning of units combusting solid fuels as a result of technical
wearing and supplementing power generation by gas-fired cogeneration systems.
The optimistic scenario forecasts:
• The development and transformation of District Heating production towards various low-emission sources
together with the evolution towards low-temperature networks;
• At least 55% of combustible renewables in power generation to be achieved by the installation of Organic Rankine
Cycle (ORC) systems equipped with biomass boilers, geothermal heat pump systems, Waste-to-Energy plants or
cogeneration units combusting biogas or alternative gas fuels (e.g. shale gas);
• New technologies likely to be introduced on an industrial scale by 2050 include fuel cells or non-emission conversion
of hard coal.
The pessimistic scenario assumes further upgrades of existing heat sources by installation of generating units supplied by
combustible renewables with output capacities able to cover domestic hot water demand. Heat demand will be covered
by highly efficient gas cogeneration units. In a few agglomerations, district heat and power stations combusting municipal
waste will be built. For the purpose of covering peak electricity demand, coal boilers will still be used, limited to 1,500
working hours per year.

POLAND
Poland currently operates District Heating systems with water supply temperatures usually above 100°C. Noticeable
trends in heat distribution networks development include efforts to reduce water temperature in order to limit heat
losses, to decrease material use while performing maintenance works as well as to prefabricate installation elements
leading to a reduction in labour costs.

The legal framework influencing heat demand reduction in buildings includes several ordinances, in particular the ordinance
of the Minister of Transport, Construction and Maritime Economy amending the ordinance on technical conditions to be
met by buildings and their location which came into force on 1 January 2014. As a result, the requirements concerning
insulating building envelopes were tightened. For instance, the heat transfer coefficient for walls is set to 0.25 W/m2K from
1 January 2014, 0.23 W/m2K from 1 January 2017 and 0.20 W/m2K from 1 January 2021.
Heat consumption reduction in buildings is also a result of energy efficiency regulations i.e. the 2011 energy efficiency act
(Journal of Laws No.94, item 551) and several linked executive regulations.
The development of efficient cogeneration is influenced by the establishment of a new system supporting the technology
specified in the 2014 power sector act and related legislation. The act establishes a support system for cogeneration for
2014-2018 and sets the obligation to obtain and present certificates guaranteeing the origin of the energy generated.

OF DISTRICT HEATING
The heat generating sector in Poland is particularly sensitive to legal regulations concerning both energy production
and its consumption by final recipients (end users). Among regulations regarding heat production, the 1997 Energy Law,
amended in September 2014, introduced new support mechanisms for highly efficient cogeneration.
The provisions related to environment protection are very significant in terms of producing heat for District Heating
systems. They are a result of transposing EU legislation, including the Directive on industrial emissions, which introduces
new pollution emission limits for large combustion plants above 50 MW. They are an important barrier for coal combustion,
however they also constitute an impulse to carry out modernisation and investments which will affect the costs related to
heat supply. The impact and costs related to the heat supply process are supervised by the Energy Regulatory Authority
that verifies and approves tariffs for heat production and distribution. The Polish legal system, makes it theoretically
possible to implement the Third Party Access (TPA) with regard to heat production and distribution. The application of this
principle in order to shape heat market relations however is not observed in practice.
Another legal area with impact on the heating sector is the improvement of energy efficiency, regulated by the 2011
energy efficiency act as well as several ordinances issued by the Minister of Economy.
Heating enterprises may benefit from a wide range of financial support mechanisms for carrying out investment projects
in all presented business areas. The Polish system also contains financial means in the form of subsidies or loans from
European and national funds.

The Polish legal system foresees legal requirements applying to heat end-users behaviour. They include provisions
forcing, directly and indirectly, the improvement according to thermal standards of buildings and structures belonging to
heat recipients. They include, for instance, the amended act on energy characteristics of buildings (energy certificates)
which imposes the obligation to issue energy performance certificates. In order to incentivise heat savings, end-users
can benefit from subsidies or attractive forms of crediting for investments in thermal insulation or individual renewable
heat installations. An example of such actions is the programme implemented in 2010-2014 by the National Fund for
Environmental Protection and Water Management, which subsidised by 40% installations with solar thermal collectors for
domestic hot water for individual customers and housing communities.
Since 2012, a programme supporting the construction of energy-saving houses has also been implemented. Its goal is to
reduce emissions by 50,000 tonnes of CO2 annually by supporting energy-saving construction. The aim is to build about
16,000 high-standard energy-efficient houses and apartments.

POLAND
Looking ahead to the following decade, District Heating technologies will be focused on high efficiency, low-emission or
non-emission economy.
The increasing share of the heat production market will rely on gas-fired cogeneration systems, both simple and in
combined cycle (steam and gas).
A growing trend related to the share of renewable energy sources in the form of new thermal installations based on
Waste-to-Energy and biofuels is expected to be maintained. It is forecasted that there will be a constant growth in the
share of renewable energy sources by recovering biogas from sewage treatment plants, composting plants as well as
biogas production in newly built industrial and agricultural facilities.
Solar thermal collectors and heat pumps are expected to be commonly used for supplying heat and hot water to individual
houses or included in heat network systems as long-term heat storages. Along with increased energy efficiency, heat
networks will be equipped with short-term (daily/weekly) storage solutions as well as seasonal thermal energy storage.

The city of Siedlce is situated in the eastern part of Poland, having an area of 31.7 km2 with 76,438 inhabitants. The
heat producer and supplier for residential and industrial users is the energy enterprise. Heat sources for the District
Heating network are a 156.63 MWth classic carbon heat generating plant and two gas-fired cogeneration units with a total
capacity of 56 MWth and 50 MWe.
The distribution of heat takes place via a high-parameter water network made up of more than 60% of pre-insulated
technology supplying 800 two-function heat exchange stations and covering the entire city.
The cogeneration units were built in two stages. First, in late 1990s, a unit of two gas turbines was built and expanded in
2010-11 by a steam and gas unit. The expansion of the cogeneration system allowed the company to increase the thermal
and electric efficiency, providing at the same time a heat reserve along with a significant reduction in emissions. The basis
of the heat load both in summer and during the heating season is covered by the heat and power station, while a classic
hard coal-fired heat-only plant is dedicated to cover peak demand.
The Energy Enterprise in Siedlce implemented and certified the Environmental Management System according to PN-EN
ISO 14001 in 2004. It has also benefitted from EU funds contributions. Moreover, own funds and a loan from the JESSICA
scheme are used to implement the project “Improvement programme of the technical infrastructure in the energy
enterprise in Siedlce for the City of Siedlce”.

POLAND
2 HEAT MARKET


53%
2013 2011 2009

million m2
506 495 472

POLAND

Natural gas 11% 18%
Electricity 3% 1%
Coal 29% 8%
Renewables* 11% 21%
Heat pumps 0% 1%
Other 3% 3%
TOTAL 100% 100%
Energy Energy
sources used
sources usedttoo satisfy
sa/sfy heat
heat demand demand
3%
11%
District Hea1ng
Natural gas
42% Electricity
Coal
29% Renewables*
Heat pumps
Other
11%
1% 3%
District Heating systems provide heat and domestic hot water to buildings. More than 50% of buildings in Poland are still
heated by individual heating and stove installations using solid fuels, mainly coal. A considerable part of the buildings
supplied by District Heating uses individual gas water heaters in order to provide hot tap water. At the moment, the aim is
to fully eliminate these water heaters by modernising heat exchanger stations in order to provide domestic hot water. In
single-family houses not connected to District Heating networks, gas-fired boilers are usually used for space heating and
providing domestic hot water. However, if there is no access to a gas installation, biogas- or oil-fired boilers are used. In
old single-family houses equipped with coal boilers, hot tap water is often provided by electric heaters. Heat pumps are
rarely used for space heating or hot tap water preparation, their share being less than 1%.

POLAND
3 DISTRICT COOLING
KEY FIGURES
2013 2011 2009

Total District Cooling sales (in TJ) 251 174 46
20 16 14
Development of installed
Development District Cooling
of installed capacity
District (in MWth)
Cooling
capacity (in MWth)
50
40
30
MWth
20
10
0
2013 2011 2009

300
250
200
TJ
150
100
50
0
2013 2011 2009

POLAND

District Cooling trench length development (one
way in km)
25
20
15
km
10
5
0
2013 2011 2009
2013 2011 2009

Source In % TJ In % TJ In % TJ
Compression chilling 20 67 20 46 25 16
Absorption chilling
Cogeneration fossil fuel based 56 187 47 109 65 43
Industrial surplus heat 19 65 28 65 5 3
Free Cooling 5 17 5 12 5 3
TOTAL 100 336 100 232 100 65

During the last ten years, District Cooling applications have been installed in industrial contexts, mainly for air cooling in
mines (copper and coal mines) as well as for cooling industrial structures (e.g. steelworks, technology parks, coking plants)
and heat and power facilities (dispatch offices, control stations, engine rooms). District Cooling systems have not yet
supplied residential buildings. In recent years, several tri-generation installations with absorption chillers were installed
but they are not supplied from the District Heating systems.

POLAND

OF DISTRICT COOLING
The development of tri-generation systems connected to the District Heating networks is possible in Poland thanks to a
number of favourable conditions:
• The presence of District Heating systems in every large Polish city, as well as cogeneration plants in many cities;
• The presence of potential cooling customers, in particular high-standard newly built structures cooled with chiller
compression units, which are in the vicinity of heat networks and may therefore be interested to benefit from both
heating and cooling services;
• Ecological reasons – the need to eliminate harmful refrigerants from compressor units, and their replacement with
more environmentally friendly solutions used in District Cooling;
• Cogeneration development: modernisation of existing plants and new plants;
• Competition on the heat market drives heat companies to search for new customers and introduce new thermal
comfort services that include cooling;
• The increasing demand for electricity in the summer months, mainly due to the increasing number of compression
cooling units;
• Technical building regulations are favourable to tri-generation due to the need to increase tap water temperature
in the summer (for thermal disinfection of tap water against the Legionella bacteria, which requires periodical
increase in the tap water temperature to at least 70°C).
• In many administrative and office buildings installed compressor cooling units are worn-out and need to be
replaced. This is a good moment to offer absorption units to those structures, especially in those already supplied
by the District Heating network.
• Several scientific tests of absorption, adsorption and evaporator units are in progress, focusing mainly on supplying
low-temperature heat.

The development of District Heating and Cooling systems in the following years will be influenced by a number of barriers
and constraints, among which, the following can be distinguished:
• The strongly developed cooling market of compressor chillers and the dynamic growth of units with an increasingly
higher coefficient of performance;
• Little knowledge about the absorption technology for cooling using the District Heating network and the lack of
absorption cooling installations in offices, public facilities and households;
• The application of cooling absorption units requires increasing the water temperature in the network during the
summer to at least 80-90°C (as compared to the present 70-75°C), which generates a significant increase of heat
transmission losses;
• Difficulties in obtaining competitive cooling prices from absorption units compared to prices for compressor
chillers (taking into account current electricity prices);
• The lack of detailed data on cost comparisons between absorption units and compressor chillers;
• Problems with providing large quantities of water for the absorption cooling systems (2-3 times greater than for
compressor chillers);
• In areas of high concentration of cooling customers, the local heat distribution capacity of the network may turn
out to be insufficient;
• In existing buildings, introducing District Cooling involves high costs to modernise/replace the ventilation and air-
conditioning installations.

POLAND

More than ten District Heating systems are operational in Poland, but they are all in the pilot phase (RD&D installations).
The most extensive installation is the system cooling the technological rooms at the Poznan cogeneration plant. The
cooling source is an absorptive lithium bromide cooler with a cooling capacity of 0.5 MW. A similar solution was applied in
the hydraulic circuits of a cogeneration plant in Warsaw.
In an office building, a 0.3 MW absorption generator of ice water was installed.
In the years to come, several District Cooling systems are expected to be linked to municipal District Heating systems.
Adsorption coolers are expected to be installed due to network water temperature requirements in summer.
4 COOLING MARKET
Many District Heating systems in Poland have the possibility to provide cooling via the District Heating network with
absorption, adsorption and evaporator units.
Office buildings, shopping centres, hotels and some public utility buildings (e.g. hospitals) equipped with ventilation and
air-conditioning installations are concentrated in large municipal centres. Therefore, generating cooling via the District
Heating networks can be applied mainly in large and mid-size District Heating systems.
The target for the cooling capacity in District Heating areas is estimated at 250 – 875 MW, whereas the cooling amount
provided via District Heating networks is estimated at 1.0 – 2.8 PJ (equivalent to 250 – 800 GWh).

The data analysis from the Polish electricity system in recent years did not show a significant increase in electric power
consumption in the month of July as compared to April. In 2014, electric energy consumption in April was 12,678 GWh
and in July it reached 12,682 GWh. A small growth in electric power consumption in July as compared to April (by 4 GWh)
was observed. While the average monthly energy consumption amounted to 13,127 GWh, the ratio of relative growth in
consumption is only 0.0003. However, it can be observed that when the outdoor temperature rises, the electricity demand
also increases. For instance, for the daily average outdoor temperature in July (25°C), the growth in electricity demand in
relation to the average electricity demand in April amounts to 300-400 MW. If we assume an average electricity demand
of 20,000 MW, the ratio of electricity used for comfort cooling is 1.5 to 2.

POLAND


Natural gas 18,219 34,870 53,089
Renewables* 3,812 3,812
Waste 8,068 15,380 23,448
TOTAL 237,524 163,332 400,856

450,000
400,000
350,000
300,000
Waste
250,000
TJ
Renewables*
200,000
Natural gas
150,000
100,000
50,000
0
in TJ in TJ in TJ
CHP/District CHP/Industry CHP/Total
heat

POLAND


Poland’s electricity policy until 2030 assumes a twofold increase in the production of electric energy via high-efficiency
cogeneration until 2020, compared to 2006 production figures. The amended 2014 energy law introduces a support
system for cogeneration based on gas and other sources. For a gas cogeneration unit, the obligation to obtain and present
certificates of energy origin is set at a level 3.9% in 2014, by 4.9% in 2015 to 8.0% in 2018. In case of cogeneration from
other sources, the obligation is 23.2% in the period from 2014 to 2018.
The total installed electricity capacity at the end of 2013 amounted to 38,490.1 MW. A vast majority (80.3%) comes from
power plants and cogeneration stations. The electricity production amounts to 157 TWh annually. Fluctuations range from
151.7 TWh in 2009 to 162.5 TWh in 2013, with a noticeable increasing trend. Electricity from high-efficiency cogeneration
has also grown, from 28.7 GW in 2008 to 31.0 GW in 2013. The share of electricity from high-efficiency cogeneration in
the total quantity of electricity produced in Poland increased from 16.1% in 2008 to 18.6% in 2013.

USE OF BUILDINGS
The average temperature ranges between 16.5°C and 20°C in summer and between -6°C and 0°C in winter. The average
yearly temperature in Poland is 7-9 °C (except for mountain areas).
During the winter, temperatures range from -16°C to -24°C, dividing the country into five climate zones. Detailed data is
included in table below.
PROJECTED OUTDOOR TEMPERATURE AND AVERAGE YEARLY OUTDOOR TEMPERATURE
Projected outdoor Average yearly Average value of heating

Climate
temperature outdoor temperature degree days
zone
(°C) (°C) (indoor temperature 20°C)
I -16 7.7 3,238
II -18 7.9 3,681
III -20 7.6 3,879
VI -22 6.9 4,076
V -24 5.5 5,032

Poland has a humid continental climate, also called a transitional climate, between temperate oceanic climate in the west
and temperate continental one in the east.
Meteorologists divided Poland into several climate regions.
The Baltic climate is present in a narrow strip along the shore and covers almost entirely the seaside lowlands. Winters here
are relatively warm and mild, and summers are cool. The climate is characterised by strong winds and yearly precipitation
of 600-700 mm.

POLAND
The lake climate covers the Pomerian and Masurian lake districts, in the north of the country. Winters are quite cool,
snowy and long, whereas spring frosts stay longer than in other areas. Yearly precipitation reaches 600-700 mm.
The climate of the Land of Great Valleys covers most of Poland. In the western part of this region, the climate is significantly
warmer, with spring and summer coming early. In the eastern part winters are snowy, longer and colder.
The climate of central uplands is present in Malpolska Upland and partially in Lublin Upland and Roztocze. A large part is
covered by hills, which explains substantial differences in local climates. Heavy rains and hail are common. The climate of
sub-mountain lowlands and valleys is relatively mild, especially in the western part of the area. It is characterised by the
shortest winter and the longest summer in Poland.
The mountain and sub-mountain climate covers the Sudeten Mountains and a substantial part of the Carpathian
Mountains. It is a cool climate with heavier precipitations.
AVERAGE HEAT USE OF BUILDINGS PER SQUARE METER IN 2013

Buildings constructed in the last decade are characterised by an average heat consumption of 100-200 kWh/m2. Buildings
from earlier periods which underwent thermal modernisation or renovation in the last five years consume between 50
and 150 kWh/m2 of heat annually. Buildings from 2013 onwards are characterised by an average heat consumption of
40-50 kWh/m2, whereas low-energy buildings consume 25 kWh/m2. Zero-energy and passive buildings are only present in
demonstration and research projects in Poland.
Polish District Heating - Chamber of Commerce

4 Migdalowa Street, apartment 22, 02-796 Warsaw, Poland
Tel: + 48 22 644 70 19; 644 02 50
Fax: + 48 22 644 70 99
www.igcp.org.pl
Contact Person: Bogusław Regulski
Email: bi.warszawa@igcp.pl
Person responsible for completing this questionnaire:
Małgorzata Kwestarz PhD. Eng.
Warsaw University of Technology, Environmental Engineering Faculty
ul. Nowowiejska 20, 00-653 Warsaw, Poland
Tel. +48 502 274 241
Email: malgorzata.kwestarz@is.pw.edu.pl

10,480
MWth
TOTAL INSTALLED
DISTRICT HEATING
CAPACITY
97%
3,720,000
OF DISTRICT HEAT DISTRICT HEATING
COMES FROM
DIRECT RENEWABLES
AND RECYCLED HEAT
ROMANIA
CRISTINA CREMENESCU
ROMANIA
1 DISTRICT HEATING
KEY FIGURES
2013 2011 2009

Total installed District Heat capacity (in MWth) 10,480
*
ENERGY SUPPLY COMPOSITION OF DISTRICT HEAT GENERATED*
2012
Source In TJ In %
In cogeneration
Coal and coal products 72,384 38.4 %
Oil and petroleum products 6,221 3.3 %
Natural gas 101,225 53.6 %
Nuclear 19
Combustible renewables* 3,770 2%
Others 5,090 2.7 %
TOTAL 188,707 100 %
* The values correspond to 2012 (ANRE Annual Report). Data for 2013 was not available.
** Includes wood pellets, wood chips, biomass and firewood

Energy
Energy
supply
supply
composi;on
composi;on
of goenerated
f generated
District
District
Heat
Hea
100%
100%
90% 90%
80% 80%
70% 70%
60% 60% Direct
Direct
Renewable
Renewable
50% 50% Recycled
Recycled
Heat
Heat
40% 40%
30% 30%
20% 20%
10% 10%
0% 0%
2013
2013
Romania - 2 COUNTRY BY COUNTRY / 2015 Survey

ROMANIA
In the last ten years, District Heating systems in Romania were confronted with the loss of clients. No new District Heating
was developed.
In 2004, the fuel used in Romanian District Heating was mainly natural gas, but the share of coal was also significant.
Today, only 15% of the heat supplied is produced from coal (20% brown coal and 80% lignite).

The district heat supply sector is in obvious and worrying decline in Romania.
The reasons for this decline are numerous: they are linked to institutional, legal, technical, administrative, financial and
social issues, as well as to an atypical gas price policy. Disconnections from the District Heating system by encouraging
individual heating solutions were generated by the misunderstanding of this field both at central and local level. During
the last 25 years, a technical legacy of high energy losses and a modest living standard lead inevitably to this situation.
Overall, unfortunately, Romania ranks last in various performance statistics in this field and, what is worse, is declining
almost continuously compared to the similar average values for the European Union.
In Romania, District Heating can split in two categories:
• The municipality took the heating responsibility as public service and gave it as concession to an operator, which
manages the entire system;
• Heat is supplied by the heat network operator, but the producers are not yet integrated in the system.
Four ministries have been responsible for the production, transport, distribution and supply of heat. Two National
Authorities are in charge with the heat supply regulation: ANRE, the National Regulatory Authority in the field of Energy
and ANRSC, the National Regulatory Authority in the field of public services.
Due to the fact that heat was not within the responsibility of a single ministry, it was not included in the Romanian Energy
Strategy. The Romanian Cogen association has been actively lobbying in order to have a chapter specially dedicated to this
topic in the new Energy Strategy.
The way in which District Heating systems have been operated had a negative effect on the overall treatment of these
systems. Heating fuel subsidies amounted up to 45% and social grants are available to end consumers. The abolition of fuel
subsidies, considered state aid, had an impact on consumer bills by up to 30-50%.
Moreover, the Romanian natural gas market is atypical. For social reasons, the industrial gas price is higher than the
price for residential consumers. As a consequence of maintaining the same price for central heating plants and individual
consumers, with the consent of the authorities, about half of the consumers connected to District Heating systems
disconnected in favour of individual heating boilers, which had a negative impact on the operation and profitability of
District Heating systems.
Given the importance of District Heating systems for the population’s standard of living, the following measures are
necessary:
• An efficient institutional and legislative framework, with clear responsibilities on the promotion of efficient
cogeneration and modern District Heating systems; a single regulator, a ministry responsible for public services,
including District Heating;
• Improving cost allocation and the investment bonus support scheme without overcompensation for high efficiency
cogeneration, including refurbished facilities;
• The accountability of local authorities in order for them to obtain investment funds to modernise cogeneration
installations, together with the operator, using efficient cogeneration bonus as collateral;
• The use of the binomial tariff for heat as a recognition of economic realities and a better monthly expenditure for
the District Heating operators;
• Building compliance with energy efficiency laws; and discouraging the disconnection from District Heating;
• Priority use of biomass, building knowledge and compliance with the investors’ terms in this area;
• VAT reduction on works aiming to increase energy efficiency;
• Solutions to restructure existing systems through a concession to experienced private operators;
• Improving the quality of the District Heating service as an argument for consumers to reconnect to the District
Heating system.

ROMANIA
The energy sources for the large cities should include energy recovered from waste, as an important part of non-hazardous
solid waste management. Transforming solid, compostable or recyclable waste into electricity and heat in high efficiency
cogeneration plants is considered as an effective method of using local energy sources and, at the same time, of reducing
the methane production in waste storage. The final waste from cogeneration Waste-to-Energy plants represent almost
10% of the initial waste, contributing substantially to reducing the amount of landfilled materials. The first project of this
kind, which is under way in Timisoara, should be an example to be followed by other major municipalities in Romania.
During the 2014-2020 programming period, funds should be granted without discrimination for investment projects
involving large companies in the public as well as in the private sector. Also, in general, there should be equal eligibility
of projects (public and private) provided that they comply with the EU 2020 strategy. In this context, it is recommended
that European subsidies should be available also for providers of high environmental and energy efficiency services. These
grants would be used, on the one hand, to develop projects in line with EU objectives and targets set by Romania for
2020 (energy efficiency, cogeneration, using waste as an energy source) and, secondly, to limit the impact of increased
costs due to new standards of environmental requirements on end-users (e.g. the Directive on industrial emissions and
hazardous waste management laws).
There is no specific Heat Strategy in Romania.

Primary legislation with an impact on District Heating includes the following acts:
• Law no.51/2006 on public services, addressing public services of lighting, waste, heat and water;
• Law no.325/2006 on the heating sector is the specific law for District Heating;
• Law no.123/2012 on electricity and gas, also addressing cogeneration;
• Law no.121/2014 on energy efficiency, transposing Directive 2012/27/EC;
• GD (Government Decision) 1215/2009 on cogeneration support scheme (bonus).
The secondary legislation is issued by ANRE for cogeneration (including rules for granting bonuses for high efficiency
cogeneration units) and by ANRSC for heat transmission and distribution.
All activities of District Heating operators (generation, transmission, distribution and heat supply) are regulated. Prices for
the heat supplied through District Heating are set by municipalities with the approval of the national regulator.
There are some inconsistences in the laws (the two regulatory authorities give different interpretations) that make the
process of heat price approval difficult for cogeneration operators.
Moreover, the bonus support scheme (for each MWh produced in high efficiency cogeneration the operator receives a
bonus) is not attractive and as a result not many new cogeneration units were developed after the launch of the scheme
in 2011.
The overcompensation mechanism is very demotivating, because each gain in efficiency is taken back through this
mechanism. Operators with concession contracts do not have the permission to make a profit through this bonus scheme
for the cogeneration activity.
The gas market liberalisation calendar also creates some issues with gas prices.

OF DISTRICT HEATING
The law 121/2014 acknowledges the advantages of heat networks and cogeneration: the possibility to recover waste
industrial heat, the massive use of renewable energy (biomass), efficient production (according to the scheme), better air
quality and safety in comparison with individual heating solutions.
The application of Article 14 (promotion of heating and cooling efficiency) of the Energy Efficiency Directive will allow for
a mapping of networks depending on the future demographic development and on heat demand. It will offer the basis
for a national strategy that must establish the cornerstone of sustainable management of such networks, resuming the
refurbishment and development of cogeneration plants linked to District Heating or to industrial applications, as well as
investment in network refurbishment.

ROMANIA

The existing support scheme for promoting high efficiency cogeneration units does not supply enough incentives for
investors to develop new projects.
Today, the Romanian energy sector faces an over-capacity, due to the proportion of renewable electricity installed (the
support scheme was very attractive, more than 4,000 MWe were installed) and to the decrease in consumption.

In Romania, District Heating systems are mainly operated by public entities.
Veolia is the biggest private operator present in Ploiesti, Otopeni and Iasi. Veolia differentiated itself from other operators
through the client-oriented approach and through the partnership created with municipalities in compliance with primary
and secondary legislation. Results include the increase of the overall efficiency of the District Heating systems managed,
the reduction of heat costs / prices, the stabilisation of the heat demand (clients are satisfied with the heating service), the
increase of the debt collection rate (clients pay for the heating service), the reduction in working force, etc.
In Iasi, the District Heating system was renovated (environmental conformity of the coal generation source, network
refurbishment, etc.) with European Funds.
2 HEAT MARKET


23%

ROMANIA
DISTRICT HEATED FLOOR SPACE IN 2013: 52,411,680 m²
In Romania, 55% of the population lives in urban areas. In 2011, 8,427,941 dwellings1 were accounted for. The number of
flats connected to District Heating was 1,488,2932. A number of 2,810,108 residential consumers are recorded, but a part
of them uses gas only for cooking. Some flats disconnected from District Heating installed their own individual heating
solution.
It can be considered that 40% of dwellings are located in rural areas where the main heat source is biomass (wood).


In 2011, the support scheme for high efficiency cogeneration entered into force, approved by the Government Decision
1215/2009.
In four years, more than 20 new cogeneration projects have been implemented (about 200 MWe), from which approximately
40 MWe in industrial applications.
At national level, the quantity of electricity produced in cogeneration decreased from 10,234 TWh in 2008 to 5,500 TWh
in 2013. This decrease can be explained by more constraints (starting with 1 April 2011, for units eligible for bonus) and by
the decrease of the heat demand caused by disconnections.
The cumulated primary energy savings in the last four years amounts to 14,000 GWh.
TOTAL ELECTRICITY AND HEAT PRODUCED IN COGENERATION
Electricity Electricity produced in Useful heat demand

cogeneration (Appendix II – Share in (Appendix II – Directive
produced in
Directive 2004/8/EC) national 2004/8/EC)
Year cogeneration
Individual production Individual
units Total producers Total producers
In TWh In TWh In % In % In TWh In %
2007 14.23 6.62 14.65 10.7 73.2 15.85
2008 14.06 6.21 15.62 9.6 71.5 18.04
2009 12.33 6.26 13.74 10.8 66.3 17.5
2010 11.93 6.54 17.74 10.8 69 22.46
2011 13.47 7.28 17.45 11.9 71.9 23.5
2012 12.54 6.72 16.07 11.4 66.1 22.37
Source: ANRE Annual Report 2013
1 Source: www.insse.ro (Last report available - 2011)

2 Source: www.anrsc.ro

ROMANIA
INSTALLED CAPACITIES IN COGENERATION
Installed capacity
Cogeneration technologies Electricity Heat
In MW In MW
Combined cycle gas turbine with heat recovery 186.25 187.83
Gas turbine with heat recovery 116.14 186.29
Internal combustion engine 146.79 132
Steam backpressure turbine 818.98 3,501.92
Steam turbine with extraction 3,237 6,471.68
Other type of technology 0.13 0.47
TOTAL 4,505.3 10,480.19
FUEL CONSUMPTION IN COGENERATION
Fuel Out of which

Total fuel
consumed in
consumed in
cogeneration Waste and Others
Year cogeneration Coal Oil Gas
(Appendix II – renewable fuels
units
Directive 2004/8/EC)
In PJ In PJ In % In % In % In % In %
2007 221.4 122.8 38.2 8.3 52.8 0.7
2008 216.8 118.1 39.5 6.3 52.8 1.4
2009 188.6 112.4 39.8 6.9 49.7 0.5 3.1
2010 186.1 117.3 38.6 3.8 50.8 1.9 4.9
2011 200.3 124.3 38.2 3.5 52.4 2 3.9
2012 188.5 114.5 38.4 3.3 53.7 2 2.7
ELECTRICITY PRODUCTION – COGENERATION / PRIMARY ENERGY SAVINGS (PES)
Electricity produced high Total fuel consumed in high

PES PES
Year efficiency cogeneration efficient cogeneration units
In TWh In PJ In PJ In %
2007 4.4 67.9 10.5 13.4
2008 3.7 62.4 9.2 12.8
2009 3.5 49.6 8.2 14.2
2010 3.3 47.5 8 14.5
2011 3.4 43.3 8.3 16
2012 3 36.7 7.2 16.4

ROMANIA

USE OF BUILDINGS
The number of heating degree as recorded in the last three years (for Bucharest area) are as follows:
2011 3,127
2012 2,901
2013 2,670
2014 2,750

Romania has a continental temperate climate, specific to central Europe, with four different seasons.
Summers are hot and go on as far as mid-September in the south and west areas. In the south, there are over 40 tropical
days (with temperatures exceeding 30°C) and a total of more than 90 summer days (with temperatures over 25°C).
Autumn is a shorter, transition season. The first frost occurs in the second part of October and the first snowflakes typically
fall in November.
Winter is a cold season, the masses of cold air come from the east and bring temperatures as low as -20°C . The absolute
record is -38,5°C registered in Bod, close to Brasov, on 25 January 1942. More recently, a temperature of -35°C was
registered in January 2015 at Intorsura Buzaului.
Spring is a relatively short transition season. Temperatures rise quickly and the frost disappears by April.
In this context, in order to ensure heat supply during winter (which lasts between 5 and 7 months), District Heating networks
were initially built in Romania. In 1989, there were 315 cities that owned a District Heating network; in 1997, there were
308, the number decreasing considerably to 188 in 2003, 121 in 2009, 110 in 2011. Today, only 70 remain, mainly in the large
cities. Unfortunately, the majority of these systems are confronted with severe economic issues. Actually, in the absence
of a coherent national energy strategy, decision powers have been transferred to the local administrations. Moreover, the
installations of the District Heating Networks have not been adapted to the real needs, which have decreased after the
1990s, most of all because of the decline of the industrial sector. The local reference price was artificially kept at very low
levels compared to the real price, which generated additional costs for local administrations.

Romania has 4.6 million urban households, out of which over 3 million apartments (in over 7,000 apartment buildings),
97% of them being inhabited by their owners. A total of over 7,6 million inhabitants live in urban areas.
In apartment buildings, the specific energy consumption is around 250-300 kWh/m2/y, almost twice as high as the European
average. The heat losses at building level represent 40-50% of the final energy consumption. Around 75% of these building
are over 40-55 years old. The average net income of the inhabitants represents 16% of the European average, and the
fees for utilities are close to the EU averages, which makes the energy bills difficult to cover on this type of low income.
Although the thermal refurbishment of these buildings is highly advantageous from an economic standpoint, at present
only 5% of these apartment buildings have been thermally refurbished. The reasons for this slow process are the lack
of sufficient funding as well as the inefficient financing schemes applied until present. The cost of works for thermal
refurbishment for around two thirds of the total buildings is estimated to amount to 5 billion Euro over a time span of
15 years (50% until 2020, 25% until 2025, 25% until 2030).

ROMANIA
Romanian Association of Producers in Cogeneration (COGEN Romania)

Bvd. Lacul Tei, nr. 1 - 3, etaj 5, sector 2, Bucuresti, Romania
Tel: + 40 74 467 4039
www.cogen.ro
Contact Person: Cristina Cremenescu
Email: cristina.cremenescu@veolia.com

1,975,000
CITIZENS SERVED BY
DISTRICT HEATING
57
DISTRICT HEATING
SYSTEMS IN SERBIA
6,652
MWth
TOTAL INSTALLED
DISTRICT HEATING
CAPACITY
SERBIA
BOJAN BOGDANOVIĆ AND PETAR VASILJEVIĆ

SERBIA
1 DISTRICT HEATING
KEY FIGURES
2013 2011 2009

Trench length in km for transport and distribution network (one way) 2,085 2,040 1,970
Estimation of the total investment in District Heating and Cooling in Euro
50 M 53.9 M 47.47 M
(excluding operational and maintenance costs)*
Average CO2 emissions per GWh of district heat generated 256
*Euro exchange rate used (annual average): 1 EUR = 113.08 RSD (2013), 1 EUR = 101.97 RSD (2011), 1 EUR = 93.9 RSD (2009)
2013 2011 2009

Services and other 919 880 830
TOTAL 22,983 22,050 20,870

25,000
20,000

TJ
Industrial sector
10,000
Residen:al sector
5,000
0
2013 2011 2009
Serbia - 2 COUNTRY BY COUNTRY / 2015 Survey

SERBIA
2,500 25,000
2,000 20,000
Total sales (in TJ)

1,500 15,000
1,000 10,000
500 5,000
0 0
2013 2011 2009
Trench length in km for transport and distribu=on network (one way)
Total sales

(annual average)
2013 20.8 22.6 113.08 RSD
2011 17.8 19.4 101.97 RSD
2009 14.5 15.8 93.9 RSD
HEAT SALES TURNOVER

2013 22,983 20.8 478
2011 22,050 17.8 392.5
2009 20,870 14.5 302.6

SERBIA
2013 2009
In cogeneration
Combustible renewables* 94 0.4 % 80 0.4 %
Others
Natural gas 15,831 68.9 % 12,655 60.6 %
TOTAL 22,983 100 % 20,870 100 %

100%
90%
80%
70%
Other
60%
Direct Renewable
50%
Recycled Heat
40%
30%
20%
10%
0%
2013 2009

SERBIA
Until 2000, numerous projects were carried out with the goal to switch to natural gas – as a more environmentally
acceptable energy source – from coal and crude oil used in certain plants. Due to the high price of natural gas, this trend
has taken significantly slower steps. As a result, the share of the different energy sources in the last ten years has not
significantly changed and it has maintained the following figures:
• Natural gas – 65 to 70%;
• Oil and petroleum products – 15 to 20%;
• Coal – 15 to 20%;
• CHP – 5 to 10%.
Serbia introduced the necessary legislative framework in order to reach the 20-20-20 targets. Serbia also signed the
protocol with the European Energy Community on increasing the part of renewable sources in energy production from 21
to 27% by the year 2020.
To reach this goal, District Heating systems have to achieve a 30% increase in the use of renewable sources for energy
production. The greatest potential for reaching the goal in the District Heating sector lies in the use of biomass. However,
the application of financial incentives must become more efficient.
The implementation of regulations on energy efficiency in buildings has led to the situation that all new buildings
connected to the District Heating system have energy consumption lower than 65 kWh/m2, while the law on efficient
energy use imposed an obligation for all District Heating plants to bill customers according to their energy consumption.
This measure has been adopted in approximately 40% of District Heating plants so far and the result is a decrease in energy
consumption of about 10%. All District Heating plants must transfer to consumption-based billing until the beginning of
the heating season 2015/2016.
In 2015, there is a plan to activate the energy efficiency budget fund which is to be used for renovating old buildings. These
actions are expected to lead to the decrease in heat consumption by 30-40%, at a cost of 7 billion Euro.
A project for District Heating system modernisation is in progress in twenty Serbian tows, financed by a credit from the
German KfW bank. The plan is for another twenty Serbian towns to begin the District Heating system modernisation in
2016, through a KfW programme.
The application of the listed measures in the following few years is expected to lead to the decrease in heat consumption
up to 50% and to CO2 emission reductions of 2.5 million tonnes per year.

Serbia passed a set of legal and implementing acts such as the Energy Law (latest version issued in December 2014), the
Efficient Energy Law (issued in 2013) and legislation on Energy Efficiency in Buildings (in 2012).

SERBIA

OF DISTRICT HEATING
• Companies dealing with District Heating receive significant support from the state and municipalities since they
represent an important energy stability factor in Serbia;
• District Heating is seen as a reliable and safe heat supplier both in the eyes of the state and of the citizens
(consumers);
• In all large cities, strategies for energy development and urban heat planning forecast the expansion and building
of District Heating networks;
• The value added tax (VAT) for District Heating has a special (privileged) rate of 10%, while, for example, the VAT
rate for electricity distribution is 20%;
• Companies dealing with District Heating have a satisfactory number of competent and higher educated experts
capable of operating and developing the District Heating system;
• District Heating provides great opportunities for increasing energy efficiency, reducing CO2 emissions and
protecting the environment;
• The Serbian District Heating sector needs further development of CHP, which is a key element in the energy
development strategy.

• The price for electricity on the Serbian market is very low (average 4.8 Eurocents per kWh);
• Due to the increase in the price of natural gas, which is predominantly used in District Heating, District Heating
prices have increased in the last few years. This has significantly reduced the competitiveness of District Heating
on the energy market;
• Initial investment costs for the connection to District Heating are relatively high and mostly have to be financed by
the future consumer prior to the connection and without the possibility of payment by instalments;
• Certain local municipalities that own the District Heating companies do not have enough financial means for
investing in District Heating development;
• In a certain number of towns, consumers are still charged according to heated floor space (m2) and not according
to their consumption;
• The measures implemented for energy savings in buildings reduce the demand for heat energy distribution.
• The relatively low price of electricity enables large-scale heat pumps to work with small operational costs and
enable a short investment pay-back period;
• Due to its geographic position, the use of solar energy has very high potential in Serbia and is expected to
significantly increase in the near future;
• A great still unused potential lies in the link between Waste-to-Energy plants and District Heating systems. Certain
steps have already been taken in order to use this important resource.

SERBIA
2 HEAT MARKET


27%
2013 2011 2009

million m 2
41.4 39.8 37.6

SERBIA

Natural gas 10% 15%
Electricity 32% 10%
Coal 10% 10%
Renewables* 19% 9%
Heat pumps 0% 4%
Other 1% 2%
TOTAL 100% 100%
1%
19%
27%
District Hea2ng
Natural gas
Electricity
Coal
Renewables*
10% Heat pumps
1%
Other
32%
Heat pumps using geothermal energy are becoming more and more a competitor for District Heating in multi-family
buildings, especially due to the low price of electricity and the decrease of investment costs for installing a heat pump
in individual buildings. A significant competition can be observed also from natural gas, although the connection to the
District Heating system is still very common in the situations where both the District Heating system and the natural gas
network are available.
In single-family houses, the most common is the use of woody biomass (pellets and wood chips), as well as air-to-air heat
pumps. In this cases, there is less interest for connecting to the District Heating system.

SERBIA
3 DISTRICT COOLING
Due to the low price of electricity and a small share of waste heat used in Serbia, District Cooling is used to a very small
extent since the investment payback period is very long. Regardless of the fact that attempts are being made to improve
the framework conditions for District Cooling, the market is not expected to see a significant increase.

CHP/District heat
Source In TJ
Coal and coal products 1,084
TOTAL 1,084
Fuel
Fuelsources ufor
sources used sed
CHPfor CHP in 2013
in 2013
1,200
1,000
800
TJ
600 Coal and coal products
400
200
0
CHP/District heat

CHP has a share of 2.5% in Serbian electricity production. The preliminary CHP capacity is 300 MWe and 300 MWth. In the
near future, there are plans to build a large coal-fired CHP plant. New projects concerning gas-fired CHP plants are more
problematic due to the ratio between the very high price of natural gas and very low electricity price in Serbia.

SERBIA

USE OF BUILDINGS
The number of heating degree days in urban centres range between 2,380 and 3,100, while in higher altitude areas it can
reach 5,349. There are 2,520 heating degree days in Belgrade.

Serbia is situated between longitude 19° and 23° east and latitude 41⁰ to 45⁰ north, being mainly influenced by continental
climatic conditions.
Winter outdoor temperatures vary between -12°C and -17°C for urban areas, going down to -23.7°C in higher altitude
areas. The average outdoor temperature during the heating season varies between 4°C and 6°C.
In Belgrade, the average outdoor temperature during the heating season is 5.6°C and the design outdoor temperature is
-12.1°C. The heating season lasts for approximately 180 days.

The average energy use for buildings connected to the District Heating system in Serbia is still very significant, reaching
approximately 150 kWh/m2/y.
THIS CHAPTER WAS ELLABORATED BY:
Pubic utility company “Beogradske Elektrane”

Savski nasip 11, Novi Beograd, Serbia
Tel: + 011 2093 000
www.beoelektrane.rs
Contact Persons: Mr Bojan Bogdanović (b.bogdanovic@beoelektrane.rs)
Mr Petar Vasiljević (p.vasiljevic@beoelektrane.rs)

15,793
MWth
TOTAL INSTALLED
DISTRICT HEATING
CAPACITY
78%
1,899,810
OF DISTRICT HEAT DISTRICT HEATING
COMES FROM
DIRECT RENEWABLES
AND RECYCLED HEAT
SLOVAKIA
JOZEF LEGÉNY
SLOVAKIA
1 DISTRICT HEATING
KEY FIGURES
2013 2011 2009

Total installed District Heat capacity (in MWth) 15,793 n/a n/a
4,984 n/a n/a
236.2 t CO2/GWh n/a n/a
heat generated
Number of District Heating systems* 2,350 2,361 2,358
2013 2011 2009

TOTAL 82,726 91,015 94,240

100,000
90,000
80,000
70,000
TJ
50,000
Industrial sector
40,000
20,000
10,000
0
2013 2011 2009
Slovakia - 2 COUNTRY BY COUNTRY / 2015 Survey

SLOVAKIA

(annual average)
2013 23.03 27.6
2011 20.14 24.2
2009 19.36 23.2 30,126**
** Slovakia became a member of the Eurozone from 1 January 2009
HEAT SALES TURNOVER

2013 82,726 23.03 1,905.2
2011 91,015 20.14 1,833
2009 94,240 19.36 1,824.5
2013 2011 2009

In cogeneration
Natural gas 9,243 9.1 % 14,854 11.2 % 13,840 10.9 %
Nuclear 2,147 2.1 % 2,210 1.7 % 2,265 1.8 %
Combustible renewables* 17,260 17.05 % 25,892 19.5 % 21,624 17 %
Waste** 993 0.7 % 1,064 0.8 %
Geothermal 190 0.2 % 124 0.1 % 97 0.1 %
Renewable waste*** 159 0.1 % 292 0.2 %
Others
Natural gas 21,432 21.2 % 30,009 22.6 % 29,924 23.5 %
Non-renewable waste**** 402 0.4 % 502 0.4 % 356 0.3 %
TOTAL 101,249 100 % 132,895 100 % 127,147 100 %

***** non-biodegradable fraction of municipal waste in accordance with Art. 2e of the Renewables Directive

SLOVAKIA

100%
90%
80%
70%
60% Other
40% Recycled Heat
30%
20%
10%
0%
2013 2011 2009
The last decade is characterised by the transition from fossil fuels to renewable sources, mainly wood chips. The proportion
of woody biomass in District Heating supply has increased over the past decade from 2.5% to about 11%. Woody biomass
has replaced primarily coal, and in some cases natural gas. The use of heat pumps and biogas has increased over last years,
although their overall share in heat supply is negligible. The use of geothermal energy has been limited to a few relatively
small projects. The largest confirmed geothermal resource in the area Ďurkov near the second largest city in Slovakia
(Košice) remains unexploited. Generally, the use of heat pumps and solar panels is mainly related to disconnections from
District Heating. An example of this practice is the disconnection from efficient District Heating (using wood chips) of
multi-apartment buildings in Turňa nad Bodvou in 2013. The new heat source is an electric water-to-water heat pump.
The project was supported by the MunSEFF program. The Municipal Finance Facility – Energy Efficiency (MunSEFF) is an
initiative of the European Bank for Reconstruction and Development (EBRD) and the European Commission (EC).

SLOVAKIA

The last five years are characterised by the acceleration of disconnections of multi-apartment buildings from District
Heating. The trend was confirmed by the results of the 2011 Census.
Year of census 1980 1991 2001 2011

Total number of apartments in Slovakia 1,414,000 1,617,828 1,665,536 1,776,698
Apartments in multi-apartment buildings 576,912 765,233 831,102 877,844
Apartments served by District Heating 464,043 678,393 689,480 657,307
Number of new apartments in the previous
349,080 113,894 130,978*
10-year period
Number of new apartments equipped by
21,4350 36,442 41,913**
District Heating in the previous 10-year period
Number of apartments disconnected from
25,355 74,086***
District Heating in the previous 10-year period
Share of apartments served by District Heating 32.8% 41.9% 41.4% 37%
Share of apartments served by District Heating
80.4% 88.7% 83% 74.9%
in multi-apartment buildings
* estimation based on annual publication of Ministry of Transport, Construction and Regional Development of the Slovak Republic
** estimation if share of new apartments served by central heating system is same for 1991-2001 and 2001-2011 period
*** calculation based on hard and estimated data
While between 1991 and 2001, 25,355 flats were disconnected from District Heating, in the period 2001 to 2011, this
figure increased to 74,086 flats. Every year in the period 2001 to 2011 recorded a drop of 3,217 flats in the absolute
number of flats connected to District Heating. Thus all strategies and policies adopted by governments after 1989 in
support District Heating have failed. Comparing trends in Slovakia with the development of the last 20 years in Romania,
we can expect that the share of apartments served by District Heating in multi-apartment buildings will reach 65% in 2020
and 50% in 2030, dropping from 75% in 2010. Following this rhythm, it is expected that two thirds of the existing District
Heating systems will collapse.
Public services, mainly schools and health services, also follow the disconnection trend.
An example of potential future development is the liquidation of District Heating network in Krásno nad Kysucou in 2013.
The District Heating supply operated by the municipal company Krasbyt Ltd. was replaced by 16 individual gas boilers. The
project was supported by the MunSEFF program.
The proposal for a Slovak energy policy, approved by the government on 5 November 2014 by decision No. UV 548/2014,
also addresses heat-related issues. Given that this energy policy builds on previously unsuccessful policies, the outcome
of its implementation is expected to continue the negative trend for District Heating in Slovakia. Therefore, Slovak District
Heating systems would not be able to contribute to meeting the EU 2050 climate and energy policy objectives, as most of
them would no longer exist up to 2050.

SLOVAKIA

Regulatory framework for the Regulatory Office for Network Industries and the thermal energy sector:
• Act No. 309/2009 Coll. of 19 June 2009 on the Promotion of Renewable Energy Sources and High-efficiency
Cogeneration and on amendments to certain acts;
• Act No. 657/2004 Coll. of 26 October 2004 on the Thermal Energy Sector and its amendments;
• Act No. 276/2001 Coll. of 14 June 2001 on the Regulation in Network Industries and its amendments to certain
acts;
• Act No. 656/2004 Coll. of 26 October 2004 on Energy and its amendments;
• Act No. 71/1967 Coll. of 29 June 1967 on the Administrative Procedure (Administrative Procedure Code) in the
wording No. 215/2002 Coll., 527/2003 Coll.
Prices for the heat regulatory framework:
• Decree of RONI No. 222/2013 Coll. 6/2008 of 11 July 2013 setting price regulation for heat.
Regulatory framework for energy services (including EPC):
• Act No. 321/2014 Coll. on energy efficiency implementing directive 2012/27/EU on energy efficiency,
Act No.476/2008 on Efficient Use of Energy.

OF DISTRICT HEATING
The sector is currently focusing on the protection and preservation of District Heating in Slovakia. The planned amendment
of the Building Act should bring some improvements, meant to slow down the decline of District Heating in Slovakia. One
of these areas is the process for issuing building permits for individual boilers.

Existing urban areas are quite saturated with District Heating systems. The main action should be oriented to protecting
existing District Heating systems on national level.
The main challenges for future development of District Heating systems will be:
• The installation of cogeneration units in existing District Heating plants / use of bio-methane for electricity
generation;
• The interconnection of small District Heating systems and the creation of critical installed power for sustainable
use of cogeneration units for preparation of hot water combined with biomass boilers;
• The increase of renewable energy sources share in the energy mix;
• The replacement of the “heat delivery” concept by “delivery of thermal comfort” (regulatory framework changes
needed).
On medium term (2020 to 2030), a large difference will still remain between the Slovak households income and that of
older EU countries. Therefore, the most appropriate and economically sustainable heating technologies are the direct use
of geothermal energy and the use of heat from energy recovery of waste. Solar thermal panels used to pre-heat domestic
hot water are the most common supporting technology for the remaining District Heating systems.

The main driving force for new projects was the support from EU structural funds – especially ERDF, cohesion funds or
EEA grants mechanism. Success stories are available via the website of the national strategic reference framework
www.nsrr.sk and EEA grants website www.eeagrants.sk.

SLOVAKIA
2 HEAT MARKET


35%
DISTRICT HEATED FLOOR SPACE*
2013 2011 2009

million m2 49 49.5 50
*residential sector only, estimation

SLOVAKIA
Source In %
Natural gas 56%
Coal 7%
Renewables* 2%
TOTAL 100%

2%
7%
35%
District Hea1ng
Natural gas
Coal
Renewables*
56%
Due to the continuous increase of wood chips use in District Heating, the consumption of wood chips exceeded the
production capacity and hence wood chips prices have grown in comparison with other energy sources.
The continuous decline of District Heating systems is mainly due to the poor regulatory framework in the energy and
building sectors, which is not in line with environmental policies. Moreover, municipalities do not act to prevent the
disconnections from existing District Heating. The policy of low gas prices for households in comparison to wholesale
prices creates an unfair market competition between small gas boilers dealers and District Heating operators, and favours
the disconnections from District Heating.
Actually, 5% of heating costs on regulated market represent the increase of unit costs due to disconnections in the previous
20 years period. Thus, if 100,000 disconnected apartments remained connected to District Heating (an increase by 15 %
in the number of clients compared to the current situation), the current price of heat could be 5% lower. The described
snowball effect encourages remaining District Heating clients to disconnect from District Heating.

SLOVAKIA
3 DISTRICT COOLING
DISTRICT COOLING DEVELOPMENT OVER THE LAST YEARS
District Cooling in Slovakia has started to develop over the last years. This development is limited in practice to a
new luxury residential project, new shopping centre projects and new industrial projects. Most residential projects
and shopping centres were implemented in Bratislava, the others were carried out in the regional centres – Trnava,
Nitra,Trenčín, Banská Bystrica, Žilina, Prešov, Košice. The industrial projects were concentrated in the automotive sector,
logistic centres and electronics sector. A special case is represented by call and service centres of multinational firms in
the IT and telecommunications sector.
In Banská Bystrica, the use of District Heating for cooling distribution has been tested.
The 2011 Census revealed that 2% of households are equipped with air conditioning units.
Since the majority of the population is not concerned by cooling services, cooling is not part of the public debate nor of
national energy policies.

OF DISTRICT COOLING
District Cooling services are not regulated by the Regulatory Office of Network Industries. District Cooling services are
impacted by the Act No. 321/2014 Coll. on energy efficiency, implementing directive 2012/27/EU on energy efficiency,
the Act No.476/2008 on Efficient Use of Energy, the Act No 555/2005 on Energy Efficiency of Buildings and the Decree
of the Ministry of regional development and construction of the Slovak Republic 311/2009 for the calculation of energy
performance of buildings.
The main expected driving force for the development of District Cooling in the residential sector is a growth of the
purchasing power of the population. For this reason, at least for the next ten years, District Cooling projects will be limited
to luxury residential projects.
The main driving force for public services (healthcare, education, state and public administration) will be the development
of EU legislation and EU quality standards.

The main barrier in the residential sector is the low purchasing power. Moreover, in Slovak climatic conditions, the District
Cooling service is considered a luxury.
4 COOLING MARKET
There is a lack of basic data for the cooling sector. The Ministry of Economy has been asked to start monitoring cooling as
a specific activity and include it in their strategic documents. It is also expected that the Statistical office will be addressed
with a request to create a data base to serve as basis for the development of such strategies.

SLOVAKIA


Oil / Petroleum products 6,713 796 7,509
Natural gas 9,243 14,840 24,083
Renewables* 17,260 8,787 26,047
Other** 2,147 56,566 58,713
TOTAL 76,293 89,736 166,029

**nuclear

180,000
160,000
140,000
120,000 Other**
100,000 Renewables*
TJ
Natural gas
80,000
40,000
20,000
0
in TJ in TJ in TJ

**nuclear

SLOVAKIA

In recent years, the majority of CHP projects have been implemented as production units with a maximum output of 10
MWe. The projects have been incorporated into the existing District Heating. The most commonly used energy source has
been natural gas and wood chips.
The largest project was the installation of 18 gas-fired CHP units with a capacity of 800 kWe and 900 kWth per unit in
Bratislava (Petržalka), implemented in 2013. These units provide the necessary heat for domestic hot water preparation.
Climatic zone I < 3,618 Bratislava 3123/212* , Hurbanovo, Holíč, Komárno, Malacky 3388/218*, Nové Zámky, Štúrovo
Humenné 3772/225*, Košice 3667/219*, Lučenec, Nitra, Prešov 3927/229*, Trenčín,
Climatic zone II 3,619 – 3,901
Trnava 3154/209*
Climatic zone III 3,902 – 4,184 Banská Bystrica, Bardejov 3999/238*, Martin 3887/232*, Považská Bystrica 3764/213*, Žilina
Climatic zone IV 4,185 – 4,467 Dolný Kubín, Kremnica 4208/249*, Liptovský Mikuláš, Stará Ľubovňa 4508/248*
Climatic zone V 4,468 – 4,750 Banská Štiavnica, Kežmarok, Poprad, Trstená 4706/260*
Climatic zone VI 4,751 – 5,033 Svit
Climatic zone VII 5,034 -5,316 Vysoké Tatry 4450/266
Climatic zone VIII < 5,317 Without identified District Heating system operated by licensed operator
* degree days / heating days – at least 3 years average if it is published in the “Development concept of the municipality XX in respect of the
thermal energy sector”, of the relevant municipality – this strategic document must be drawn up in accordance with § 31 of Act No. 657/2004 on
the Thermal Energy Sector. It is a part of spatial planning documentation. Heating degree days are calculated base on 20°C indoor temperature.

Slovakia’s climate is moderate because it lies in the moderate, northern climatic zone. Due to landscape variations, climate
in the lowlands is warmer than in the mountains. The differences in altitude have a similar impact on the seasons. The
warmest part of Slovakia includes the Danube Lowland and the eastern Slovak lowland. The yearly average temperature
in lowlands is around 10°C. The lowest temperature is recorded on mountain peaks with yearly average temperatures of
-3°C / -4°C in summer and -10°C in winter.
The number of summer days (maximum temperature during the day > 25°C):
• altitude < 350 m: more than 50 days/year (Lučenec 78, Hurbanovo 74);
• altitude ~ 1,000 m: 5-10 days / year;
• altitude > 1,800 m: without summer days
The number of frost days (minimum temperature during the day < 0°C) are as follows: in the surroundings of Bratislava 90
days/year, in the Danube lowland 100 days/year, in the eastern Slovak lowland 110 days /year and in the area of the low
and high Tatras mountain valleys over 160 days/year.

SLOVAKIA
Slovak Association of Heat Producers (Slovenský zväz výrobcov tepla)

Unionka 54, 960 01 Zvolen, Slovak Republic
Tel: + 421 45 5320 765
Fax: + 421 45 5320 767
www.szvt.sk
Contact Person: Mrs. Zuzana Klčová, Executive Director
Author of this chapter: Mr. Jozef Legény
E-mail: jozef@legeny.sk

2,276
MWth
TOTAL INSTALLED
DISTRICT HEATING
CAPACITY
90%
OF DISTRICT HEAT
63
DISTRICT HEATING
COMES FROM SYSTEMS
DIRECT RENEWABLES IN SLOVENIA
AND RECYCLED HEAT
SLOVENIA
DEJAN KOLETNIK
ALEKSANDER TRUPEJ
SLOVENIA
1 DISTRICT HEATING
KEY FIGURES
2013 2011 2009

753 734 705
Source: Energy Agency of the Republic of Slovenia

2013 2011 2009

TOTAL 7,744 8,041 7,613
Source: Statistical office of the Republic of Slovenia

9,000
8,000
7,000
6,000
Services and other
5,000
TJ

2,000
1,000
0
2013 2011 2009
Slovenia - 2 COUNTRY BY COUNTRY / 2015 Survey

SLOVENIA
800 9,000
700 8,000
600 7,000
6,000
Total sales (in TJ)

500
5,000
400
4,000
300
3,000
200 2,000
100 1,000
0 0
2013 2011 2009
Total sales

2013 13.3 16.1
2011 12.5 15.1
2009 10.4 12.4
HEAT SALES TURNOVER

2013 7,744 13.3 102.7
2011 8,041 12.5 100.9
2009 7,613 10.4 78.9

SLOVENIA
2013 2011 2009

In cogeneration
Natural gas 4,284 22.7 % 2,121 12.1 % 2,714 16 %
Geothermal 70 0.4 %
Combustible renewables* 383 2% 329 1.9 % 244 1.4 %
Industrial surplus heat 853 4.9 % 874 5.2 %
Others
Natural gas 1,677 8.9 % 3,147 18.0 % 1,850 10.9 %
TOTAL 18,851 100 % 17,484 100% 16,973 100 %
Energy
Energy supplysupply composi0on
composition of District
of generated generated
Heat District Heat
100%
90%
80%
70%
60% Other
40% Recycled Heat
30%
20%
10%
0%
2013 2011 2009

SLOVENIA
Fuel use for District Heating over the last ten years
100%
100% 100%
100%
90%
90% 90%
90%
80%
80% 80%
80%
70%
70% 70%
70%
60%
60% 60%
60%
50%
50% 50%
50%
40%
40% 40%
40%
30%
30% 30%
30%
20%
20% 20%
20%
10%
10% 10%
10%
0%
0% 0%
0% 2004
2004 2004
2005
2005 2005
2006
2006 2006
2007
2007 2007
2008
2008 2008
2009
2009 2009
2010
2010 2010
2011
2011 2011
2012
2012 2012
2013
2013 2013
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Year
Year Year
Year
Coal
Coal
& &
cCoal
oal
coal
p&
roducts
p croducts
oal products Natural
Natural gNatural
as
gas gas Oil Oil
& & Petroleum
POil
etroleum
& Petroleum
products
products
products
Coal & coal products Natural gas Oil & Petroleum products
CombusAble
CombusAble
CombusAble
renewables
renewables
renewables
&Waste
&Waste
&Waste
Geothermal
Geothermal
Geothermal
& &
Solar
Solar
& Solar
CombusAble renewables &Waste Geothermal & Solar
Source: Statistical office of the Republic of Slovenia, Energy Agency of the Republic of Slovenia
Net annual heat production in the last five years (2009-2013)
180,000 10,000
146,449 149,878 151,612
160,000
9,800
140,000 155,764
No. of customers [/]
Net produc4on [TJ]
9,600
120,000
123,193
100,000 9,400
80,000 9,200
60,000
9,000
40,000
8,800
20,000
-‐0 8,600
2009 2010 2011 2012 2013
Year
Net produc7on of Heat -‐ TOTAL No. of Costumers
Source: Statistical office of the Republic of Slovenia, Energy Agency of the Republic of Slovenia

SLOVENIA
During the last four years, heat production has slightly decreased, however it is still 3.7% higher compared with the 2009
heat production. The number of households using District Heating increased in 2013 by 1.16% compared with 2011.
In line with the new Energy Law adopted in 2014, the parliament and the government of Slovenia will prepare a new
energy strategy including the following acts:
• Energy concept of Slovenia (abr. EKS) , which will provide the Slovenian energy strategy and
• State and National Development Energy Plan (abr. DREN), which will provide a plan of activities including a new
definition of the role of District Heating and Cooling
It is expected that the energy concept of Slovenia should be ready by the end of 2015 and that the District Heating and
Cooling systems will play an important role in achieving the EU 2050 energy goals, especially in urban areas with the
implementation of the smart energy systems concept.

The new Energy Law 17/14 (EZ-1) sets out the main legislative framework for District Heating and Cooling. District Heating
and District Cooling are defined as local optional public services or market commercial activity. It includes the distribution
and supply of heating or cooling through distribution networks.
Before the system operator of the distribution network may start its services, the providers have to notify the Energy
Agency. The Energy Agency has a regulatory role for the district heat distribution system.
The resolution on the National Energy Programme lays down the strategy for a positive development of the Slovenian
energy market, includes provisions on funding for the promotion of renewable energy and points towards the increasingly
energy and CO2 efficient development of the country. The Resolution on the National Energy Programme will be replaced
by the energy concept which is expected to have a positive impact on District Heating systems.
Currently the following primary and secondary legislation defines the energy framework in which the District Heating
operates (to be updated in 2015 by the Slovenian energy strategy and State energy action plan):
• Energy Law, the Official Gazette of the Republic of Slovenia, No. 17/14 (EZ-1);
• Draft of National Energy Programme RS for the period 2010-2030: Active management with Energy, 10.06.2011,
Institute “Jožef Stefan, Energy Efficiency Centre (EEC), Ljubljana, Slovenia;
• National efficiency energy action plan for the period 2008-2016 (31.01.2008);
• Action Plan for Renewable Energy 2010-2020 (08.07.2010);
• The Second National Energy Efficiency Action Plan 2011-2016 (NEEAP 2), October 2011.
• Regulation on the provision of energy savings among final customers, the Official Gazette of the Republic of
Slovenia, No. 114/09, 75/11;
• Act on determining the methodology for setting general conditions for the supply and consumption of heat
energy from the distribution network, the Official Gazette of the Republic of Slovenia, No. 74/05, 42/11; Regulation
of the Energy Agency, adopting a new version until April 2014;
• Act on determining the methodology for the preparation of the tariff systems for the supply and consumption of
heat energy from the distribution network, the Official Gazette of the Republic of Slovenia, No. 74/05; Regulation
of the Energy Agency, adopting a new version until April 2014;
• Regulation on the Formation of Prices for Production and Distribution of Steam and Hot Water in the Heating
Distribution System for Tariff Users, the Official Gazette of the Republic of Slovenia, No. 28/14; Government
document, adopting a new version until March 2014;
• Rules on dividing and charging for the heating costs in residential and other multi-user buildings, the Official
Gazette of the Republic of Slovenia, No. 7/10; adopting a new version until February 2014;
• Technical Guideline, TSG-1-004:2010, Efficient use of energy, 22.6.2010, Ministry of Environment and Spatial
Planning.

SLOVENIA

OF DISTRICT HEATING
The driving forces for the expansion of District Heating are the support schemes for biomass in District Heating. Investors
who expand existing District Heating systems or build a new boiler house with biomass boilers for an existing District
Heating network are eligible for the incentives. The total amount of financial incentives in the form of grants for the
implementation of individual projects is determined in accordance with the rules of State aid, ranging from 30 to 50% of
the eligible costs for each project.
The new Energy Law which has implemented Directive 2012/27/EU supports the development of District Heating systems
producing heat mainly from renewable energy sources, CHP or waste heat.
The contribution for “heat production from renewable energy sources” is not paid by the end customers if the heat is
produced from renewable energy or efficient District Heating and Cooling systems. The government regulation determines
the manner of spending the funds collected from the contribution of “heat production from renewable energy sources”,
and the way that funds are used as incentives or subsidies for the construction of new facilities for the production of
District Heating and Cooling.

There are also some obstacles related to the incomplete implementation of the State energy policy and strategy. The
existing support schemes are competing with each other. There are examples where different support schemes for
biomass and heat pumps trigger the exclusion of natural gas condensing boilers or exclude the use of District Heating in
areas where there is an existing District Heating network. Ironically, users in peripheral areas migrate from District Heating
systems which use natural gas for heat production to individual biomass heating systems which do not take into account
the environmental impact of air pollution.
As a result, the consumption of District Heating has been descending every year due to the insufficiently regulated energy
efficiency support policy.
It is expected that current space heating and domestic hot water technologies will be more efficient and environmental
friendly in the future.
In Slovenia, larger urban areas have the potential to provide heat from waste and large-scale heat pumps in combination
with other renewable energy sources. The produced heating or cooling will then be provided to end customers through
District Heating or District Cooling systems, which could be part of smart energy systems.
District Heating or District Cooling systems with large heat or cooling storage systems could serve as temporary storage
for surplus energy produced from renewable sources, especially passive and active solar energy.
In rural areas, the main energy sources for providing heat will most likely remain biomass and heat pumps in combination
with other renewable energy sources (solar panels, etc.).
It is expected that the development and use of efficient micro-CHP units will also have an important role in heat production
over the next decade.

Complete reconstruction of a District Heating system in Planina Kranj
The purpose of a complete reconstruction of the District Heating system was to reduce the primary energy consumption
from the heat generation and distribution process by modernising the existing units and introducing modern alternative
solutions for additional reductions in heating costs. In this case, the alternative solution was the installation of cogeneration
units. To this end, the old boilers were replaced with modern gas boilers, the regulation system of the boiler room in the
heating substation was modernised, the heating substations in residential facilities were renovated, two CHP units were
installed and a contemporary central control system was introduced.
Due to installed CHP units, CO2 emissions decreased by 6,800 tonnes/year in comparison with the separate heat and
electricity production and by another 600 tonnes/year as a result of renovated heating substations and replaced boilers
and other boiler room equipment.

SLOVENIA
The boiler room operator Domplan carried out a complete reconstruction of the boiler room and hot water network. This
was done in cooperation with the representatives of the boiler room co-owners, the civil initiative “Ogrevanje Planina”.
The replacement and installation of boilers at a suitable location within the boiler room resulted in obtaining suitable
space for the placement of the CHP units owned by Soenergetika. The municipality of Kranj and Soenergetika, concluded
an agreement granting the rights to build and operate the infrastructure as well as the cogeneration units in Planina
Kranj. The project envisaged the construction of a CHP unit (in reality two separate units) with a total capacity of around
5,000 kWe.
The complete reconstruction started in March 2011 after a building permit for the installation of the CHP unit had been
obtained. The reconstructed boiler started to operate in September 2011. The operating permit for the CHP unit was
obtained in February 2012. In this period, two new boilers of 7 MW and 10 MW were installed, 64 heating substations
were modernised, two CHP units of 3.3 MWe and 0.99 MWe were installed and a modern central control system was
introduced to supervise the operation of all units in the boiler room and all heating substations. The result is a reliable
system for heating and domestic hot water preparation for 4,300 households in the Planina Kranj residential area. The
investment in the complete reconstruction amounted to 1.5 million Euro and 4.2 million Euro were invested in the CHP
unit construction.
As a result of this investment, the boiler room losses were reduced by 5% and the network losses by 4.5 %. The end
consumers of heat are also entitled to a compensation because of the CHP installation, which ultimately means an
additional reduction in heating costs in the amount of 201,000 Euro per year.
2 HEAT MARKET


15%

SLOVENIA
2013 2011 2009

million m 2
8.496 8.2689 8.2887
Note: Data available only for Residential sector

Source: Statistical office of the Republic of Slovenia and Energy Agency of the Republic of Slovenia
Source In %
District Heating 8.69%
Natural gas 11.61%
Electricity 9.26%
Oil / Petroleum products 17.64%
Coal 0.03%
Renewables* 50.73%
Heat pumps 2.04%
TOTAL 100%
2%
9%
11% District Hea2ng

Natural gas
Electricity
51% Coal
Renewables*
Heat pumps
18%
0.03%
0%

SLOVENIA
Space heating in the residential sector (2013)
2%
9%
District Hea2ng
13%
Natural gas
Electricity
5%
Oil & Petroleum products
52% Coal & coal products
19% Combus2ble renewables &Waste

Geothermal & Solar
0,03%
0%
Customers in the residential sector in Slovenia are mainly using renewable energy sources (49.7%) and oil/petroleum
products (17.64%) for space heating and domestic hot water. On third place come natural gas and District Heating, whose
consumption has decreased by 8.8% compared with 2011.
District Heating has decreased by 9.66% in space heating and by 5,11% in domestic hot water compared with 2011. The
main reason is the continuous increase in heat pumps use (geothermal and solar sources). Compared with 2011, the use of
heat pumps for space heating and domestic hot water increased by almost 57% (with a 74.6% increase for space heating).
Renewable energy sources and oil/petroleum products still represent the main energy source for space heating and
domestic hot water in small urban and non-urban areas, while in some larger urban areas customers are connected to the
existing District Heating systems.
3 DISTRICT COOLING
KEY FIGURES
2013 2011 2009

Total installed District Cooling capacity (in MWth) 0.97 0.97 0.97
Total District Cooling sales (in TJ) 0.2549 0.2531 0.2412
0.6 0.6 0.6

SLOVENIA
TYPE OF PRODUCTION USED FOR GENERATING DISTRICT COOLING
2013 2011 2009

Absorption chilling 100% 0.25488 100% 0.25308 100% 0.2412
District Cooling is still a relatively new technology in Slovenia. The municipality of Velenje was the first and currently
the only one which has decided to construct a distribution network for District Cooling, with a cooling capacity of 967
kW (absorption chilling, the energy source being the hot water from the District Heating system). This network started
operating in mid-2008 as a pilot project. In the last few years, the majority of investments and projects due to the economic
crisis have literally stopped, with only necessary maintenance investment in distribution systems being carried out.

OF DISTRICT COOLING
The District Cooling system concept will be defined and updated in the 2015 Slovenian energy strategy and State energy
action plan. So far, there are minor driving forces and/or opportunities that favour an expansion of District Cooling in
Slovenia.

The impact of the ongoing global economic crisis and the declining prices of fuels, and on the other hand the thermal
refurbishment of buildings, increasingly complicate the viability of investing in large district energy systems in Slovenia.
The low market prices of electricity encourage individual investors to invest in smaller local cooling devices. Moreover,
supporting schemes with limitation on working hours are not in favour of using District Cooling in combined cooling,
heating and power (CHCP) cycles.
The relatively high investment and operating costs of District Cooling compared to local or individual installed cooling
systems are one of the main reasons for the lack of development of District Cooling systems in Slovenia. Investors still do
not consider the many advantages of District Cooling systems and the return on investment rate is too long and uncertain.

The first and at the moment the only District Cooling project in Slovenia was set up in the Šaleška dolina Valley, in the
Velenje municipality in 2008, with the use of absorption refrigerators. The main purpose of this investment was to set
up a centralised cooling supply to individual buildings that will result in improved thermal comfort. Another important
objective of this investment was the use of the waste hot water for the production of cooling in an environmentally
friendly cooling procedure by applying the absorption-cooling technique, which does not require electricity.

SLOVENIA
4 COOLING MARKET
Central cooling is primarily used in large buildings and in industry. Split cooling systems are predominantly used in the
residential sector and in the small businesses sector. A lot of split installations are also found in the commercial sector, but
they are expected to be replaced by central cooling.
There are still plans for new District Cooling systems, such as, for example, a District Cooling system for the University
Medical Center Ljubljana (UMC) for peak cooling demands of 5.5 MW. However, due to the continuation of the economic
crisis, these plans have been put on hold.
RATIO OF ELECTRICITY USED FOR COMFORT COOLING IN 2013: 0.03


Oil / Petroleum products 3 2 5
Natural gas 3,778 506 4,284
Renewables* 2,455 634 3,089
TOTAL 15,302 1,389 16,691
* Includes wood pellets, wood chips, biomass, firewood, waste

SLOVENIA
Fuel sources used

Fuel sources for
used for CHP C in HP
2013 in 2013
18,000 Fuel sources used for CHP in 2013

18,000
16,000
16,000
14,000
14,000
12,000 Oil / Paetroleum
Coal products
nd coal products
10,000
TJ TJ

#REF!
8,000
#REF! gas
Natural
8,000
6,000
Natural gas
Renewables*
6,000
4,000 Renewables*
4,000
2,000
2,000
0
0
(in TJ) Heat CHP/Industry
CHP/District (in TJ) (in TJ)
CHP/Total
* Includes wood pellets, wood chips, biomass, firewood, waste
Share between the electricity produced in CHP and electricity produced in power stations
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2009 2010 2011 2012 2013
Electricity genera8on in power sta8ons [TJ] Electricity genera8on in CHP units [TJ]

SLOVENIA
The share of electricity produced from CHP compared to the net electricity production in Slovenia in 2013 is 32.12 %. This
share has remained stable over the last five years.
Electricity production in CHP in 2013: 18.604 TJ
Net electricity production in 2013: 57.911 TJ
The number of mean seasonal heating degree days in Slovenia between 1971/1972 and 2000/2001 is 3,550. The average
indoor temperature is 22°C. The design heating temperature varies depending on the location from -7°C to -19°C.

The mean annual temperature in 2013 was above the 1961–1990 normal mean temperature, with the variation being
between 1 and 2°C. Most of the months were warmer than the long-term average. The largest temperature differences
were observed in summer. The highest temperature ever was recorded in Maribor (40.6°C) and the maximum temperature
recorded in Ljubljana was 40.2°C.
In 2013, the most precipitation was recorded in the region of Posočje (more than 2,800 mm). Towards the east and south,
the precipitation amount decreases (in most regions, less than 2,400 mm, with 900 mm in Maribor, 912 mm in Murska
Sobota and 1,055 mm in Portorož).
The number of sunshine days was close the normal, with a ±10% variation from the average. The sunniest place is Portorož
on the coast, with 2,310 hours of sunny weather recorded.
During the winter, the maximum snow cover depth of 475 cm was reported in Kredarica, in Rateče and Kočevje 115 cm, in
Ljubljana 53 cm, in Postojna and Slovenj Gradec 55 cm.
Slovenian District Energy Association (Slovensko društvo za daljinsko energetiko)

Karlovška cesta 3, 1000 Ljubljana, Slovenia
Tel: + 386 (0)1/425 47 57
Fax: + 386 (0)1/426 10 42
www.sdde.si
Contact Person: Aleksander Trupej, Dejan Koletnik
Email: drustvo-sdde@drustvo-sdde.si

23,667 MWth
TOTAL INSTALLED
DISTRICT HEATING
CAPACITY
52%
97%
OF CITIZENS
ARE SERVED BY
DISTRICT HEATING
OF DISTRICT HEAT
COMES FROM
DIRECT RENEWABLES
AND RECYCLED HEAT
SWEDEN
SONYA TRAD
SWEDEN
1 DISTRICT HEATING
KEY FIGURES
2013 2011 2009

23,667 23,110 19,528
Number of District Heating systems* 450
*
2013 2011 2009

TOTAL 175,972 175,370 182,970

200,000
180,000
160,000
140,000
Industrial sector
TJ
100,000
Residen<al sector
80,000
60,000
40,000
20,000
0
2013 2011 2009
Sweden - 2 COUNTRY BY COUNTRY / 2015 Survey

SWEDEN
25,000 200,000
180,000
20,000 160,000
Total sales (in TJ)

140,000
15,000 120,000
100,000
10,000 80,000
60,000
5,000 40,000
20,000
0 0
2013 2011 2009
Total sales

(annual average)
2013 15.9 19.9 9.09
2011 15.1 18.9 9.09
2009 14.2 17.7 9.09
HEAT SALES TURNOVER

2013 175,972 15.9 2,801.4
2011 175,370 15.1 2,655.7
2009 182,970 14.2 2,589.2

SWEDEN
2013 2011 2009

In cogeneration
Oil and petroleum products 3,354 1.5 % 5,053 2.5 % 4,235 2%
Natural gas 12,750 5.6 % 11,009 5.4 % 13,075 6.2 %
Peat 5,147 2.3 % 7,538 3.7 % 11,674 5.5 %
Waste** 32,065 14 % 30,870 15.1 % 22,308 10.5 %
Combustible renewables* 47,962 21 % 43,137 21.1 % 35,785 16.9 %
Renewable waste*** 15,779 6.9 % 7,334 3.6 % 14,345 6.8 %
Heat pumps (output) 14,180 6.2 % 14,117 6.9 % 16,775 7.9 %
Industrial surplus heat 13,805 6% 13,868 6.8 % 12,923 6.1 %
Others
Natural gas 978 0.4 % 1,071 0.5 % 1,291 0.6 %
Peat 2,120 0.9 % 1,638 0.8 % 2,228 1.1 %
TOTAL 228,272 100 % 204,864 100 % 211,576 100 %

** includes both biodegradable fraction and non-renewable waste
***biodegradable fraction of municipal waste in accordance with art. 2e of the Renewables Directive
EnergyEnergy supply composi0on

supply composition of generated
of generated District Heat District Heat
100%
90%
80%
70%
60% Other
50%
Direct Renewable
40%
Recycled Heat
30%
20%
10%
0%
2013 2011 2009

of District Heating 2003-2013
5
SWEDEN
2007
CO2, g /kWh lev. energi
Coal
Peat
Others
Production of Production
District Heating
of District 2003-2013
Heating
2003-2013
Production
Production
Production
ofofDistrict
District
of District
Heating
HeatingHeating
2003-2013
2003-2013
2003-2013

2009
CO2 g/kWh
CO
CO2 g/kWh
2 g/kWh
CO2 g/kWh
70 140
70
70 70 140
140 140
2011
60 120
60
60 60 120
120 120
50 100
Natural gas
Heat pumps
Waist heat
50
50 50 100
100 100
CO2 g/kWh
40 80
2013
40
40 40 80
80 80
TWh
TWh
TWh
TWh
30 60
30
30 30 60
60 60
0
20
40
60
80
100
120
140
20 40
20
20 20 40
40 40
10 20
10
10 10 20
20 20
0 0
0 0 0 0 0 0
2003 2005 2007 2009 2011 2013
2003
2003
2003 2005
2005 2005 2007
2007 2007 2009
2009 2009 2011
2011 2011 2013
2013
2013
Biomass Others Waist heat
Biomass
Biomass Biomass Others
Others Others Waste
Waist
Waist hheat
heat
Waist
eat heat
Waste Peat Heat pumps
Waste
Waste Waste Peat
Peat Peat Heat
Heat
pumps
pumps
Heat pumps
Heat boilers Coal Natural gas
Heat
Heat boilers
boilers
Heat boilers Coal
Coal Coal Natural
Natural gNatural
as
gas gas
Oil CO2, g /kWh lev. energi
Oil
Oil Oil CO
CO2,
CO2,
2
g/kWh lev.
g /kWh
g /kWh
CO2, energy
lev.
glev.
/kWh
energi
energi
lev. energi

There are no national goals for expansion of District Heating and Cooling in Sweden.
According to a report from Swedish Energy Agency in 2013, made according to art. 14 in the Energy Efficiency Directive,
there is still potential for the expansion of District Heating, District Cooling and CHP. For District Heating, the potential is
estimated at 4 TWh by 2020 and 8 TWh by 2030. For District Cooling, the potential is estimated at an additional 1 TWh
by 2020 and 2 TWh by 2030. The potential for further expansion for electricity from CHP is estimated to 5 TWh by 2020.

The Swedish District Heating Law entered into force on 1 July 2008, aiming at strengthening the voice of the District Heating
consumers and increasing the transparency in the sector. District Heating companies are, according to the legislation,
obliged to negotiate with their customers before adjusting the conditions for District Heating delivery. Customers may
apply for mediation to the National District Heating Board if they do not agree. The legislation has also been amended
regarding the provisions on metering and billing of actual District Heating consumption from 1 January 2015.

SWEDEN

OF DISTRICT HEATING
District Heating is expected to continue to grow and gain market share on the Swedish heating market in the coming years.
Important driving factors are a continued urbanisation in Sweden and an increased population due to immigration and
relatively high birth rates.

The heating market as a whole is expected to decrease in the future due to increased efforts on energy efficiency in
buildings. Current low electricity prices are also providing good conditions for electricity-based heat pumps. The existing
Swedish building codes for new buildings are today favouring individual heating solutions and steer towards electricity-
based heating solutions such as heat pumps. The energy taxation favours the use of electricity for heating purposes from
self-produced wind power plants which are tax-exempted. A governmental commission of inquiry also investigates if
the heat production from District Heating plants should be subject to a property tax as of 2019, which may reduce the
competitiveness for District Heating on the heating market.
Combined technologies where different heat sources are used for optimal heat production are expected to develop, as
well as industrial surplus heat from distributed production sources.
2 HEAT MARKET


52%

SWEDEN
2013 2011 2009

million m 2
308 280 290
Source In %
Natural gas 1%
Electricity** 24%
Renewables* 15%
TOTAL 100%
** includes heat pumps
15%
2%
District Hea1ng
Natural gas
Electricity**
24% 58% Oil / Petroleum products
Renewables*
1%
** includes heat pumps
District Heating is the dominant heating solution in multi-dwelling buildings with a market share of 93%. Heat pumps are
the dominant heating solution for single family houses.

SWEDEN
3 DISTRICT COOLING
KEY FIGURES
2013 2011 2009

Total District Cooling sales (in TJ) 3,416 3,196 2,984
District Cooling trench length in km (one way) 506 370 311

4,000
3,000
TJ
2,000
1,000
0
2013 2011 2009
District Cooling
District trench
Cooling length ldevelopment
trench (one way in km)
ength development
(one way in km)
600
500
400
km
300
200
100
0
2013 2011 2009

length(
District Cooling delivieries
length (Km) 1996
SWEDEN 1000
District Cooling delivieries (GWh) a1000 nd trench K900
length
District Cooling (Km)
delivieries 1996-‐2013
(GWh) and trench length (Km) 1996-2013 800
900
700
800
GWh 600
1,000
1000 700 550
900 GWh 500
600
450
400
800 500
700 300
400 350
GWh 600 200
300
GWh
100
Km
500 200 250
400 0
100
2000 1996
2001 1997
2002 1998
2003 1999
2004 2000
2005 2001
2006 2002
150
300 0
1996
1997
1998
1999
200
50 GWh Km
100
0 GWh -‐50 Km

1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
EXISTING DRIVING FORCES AND/OR OPPOR

COOLING
GWh Km EXISTING DRIVING FORCES AND/OR OPPORTUNITIES THAT F
COOLING Customers are demanding combined solutio
take this into c
from energy companies must
EXISTING DRIVING FORCES AND/OR OPPORTUNITIES THAT FAVOUR AN EXPANSION Customers are demanding combined
the future. solutions with both he
OF DISTRICT COOLING from energy companies must take this into consideration and
EXISTING DRIVING FORCES AND/OR OPPORTUNITIES THAT FAVOUR AN EXPANSION OF DISTRICT
the future.
Customers
COOLING are demanding combined solutions with both heating and cooling. Therefore, the offer from energy companies
must take this into consideration and include both services where feasible IV. COOLING MARKET
in the future.
Customers are demanding combined solutions with both heating and cooling. Therefore, the offer
from energy companies must take this into consideration aIV. COOLING
nd include MARKET
both services where feasible in
the future. RATIO OF ELECTRICITY USED FOR COMFORT

4 COOLING MARKET
RATIO OF ELECTRICITY USED FOR COMFORT COOLING IN 201
IV. COOLING MARKET V. CHP IN ELECTRICITY GENERATIO

RATIO OF ELECTRICITY USED FOR COMFORT COOLINGV. CHP
IN 2013: 0.17IN ELECTRICITY GENERATION
RATIO OF ELECTRICITY USED FOR COMFORT COOLING IN 2013:
0,17 SHARE OF CHP IN ELECTRICITY GENERATION
ELECTRICITY GENERATION IN 2013: 9%

SHARE OF CHP IN
SHARE OF CHP IN DISTRICT HEATING GENER
V. CHP IN ELECTRICITY GENERATION
DISTRICT HEATING GENERATION IN 2013: 4
SHARE OF CHP IN
SHARE OF CHP IN ELECTRICITY GENERATION IN 2013: 9% FUEL SOURCES USED FOR CHP IN 2013
FUEL SOURCES U SED
FOR CHP IN 2013 CHP/Distri
SHARE OF CHP IN DISTRICT HEATING GENERATION IN 2013: 4 1%
CHP/District heat CHP/


SWEDEN


Oil / Petroleum products 784 903
Peat 1,472 44 1,516
Natural gas 4,635 294 4,929
Renewables* 16.267 26,533 42,800
Waste 11,445 11,445
Other 1,948 732 2,680
TOTAL 42,823 28,854 69,990

80,000
70,000
60,000 Other
Waste
50,000
Renewables*
TJ
40,000 Natural gas

30,000 Peat
20,000
10,000
0
CHP HEAT AUTOPRODUCTION IN INDUSTRIAL PROCESSES (OUTSIDE DISTRICT HEATING) IN 2013:

20,304 TJ

SWEDEN

USE IN BUILDINGS
NUMBER OF HEATING DEGREE DAYS IN 2013: 3,000 TO 6,600

Sweden is located in the temperate zone in northern Europe between latitudes 55 and 70. The year has four seasons, with
cold winters and warm summers. During the winter, fall and spring, heating is necessary but during the summer cooling is
sometimes needed but only used in office buildings, hospitals and other buildings with high levels of demand for comfort
cooling.
It is a mixture of a continental and a maritime climate, with 3,000 heating degree-days in the southern part of the country
and 6,600 in the northern part of the country, although the fluctuations can be considerable from one year to another.
ENERGY USE OF BUILDINGS PER SQUARE METER IN 2013: 139 kWh/m2
Swedish District Heating Association

Olof Palmesgata 31, SE-101 53 Stockholm, Sweden
Tel: + 46 8 677 27 09
www.svenskfjarrvarme.se
Contact Person: Sonya Trad
Email: sonya.trad@svenskfjarrvarme.se

2,466
MWth
TOTAL INSTALLED
DISTRICT HEATING
CAPACITY
84%
OF DISTRICT HEAT
153
DISTRICT HEATING
COMES FROM SYSTEMS
DIRECT RENEWABLES IN SWITZERLAND
AND RECYCLED HEAT
SWITZERLAND
MARCEL KOLB
SWITZERLAND
1 DISTRICT HEATING
KEY FIGURES
2013 2011 2009

1,432 1,100 940
2013 2011 2009

TOTAL 17,890 15,860 16,060

20,000
18,000
16,000
14,000
TJ
10,000
Industrial sector
8,000
Residen<al sector
6,000
4,000
2,000
0
2013 2011 2009
Switzerland - 3 COUNTRY BY COUNTRY / 2015 Survey

SWITZERLAND
1,600 20,000
1,400 18,000
16,000
1,200
14,000
Total sales (in TJ)

1,000 12,000
800 10,000
600 8,000
6,000
400
4,000
200 2,000
0 0
2013 2011 2009
Trench length in km for transport and distribu?on network (one way)
Total sales
EUR exchange rate used

(annual average)
2013 15.2 16.5 1.2308 CHF
2011 14.5 15.8 1.2331 CHF
2009 14.6 15.6 1.5101 CHF
HEAT SALES TURNOVER

2013 17,890 15.2 271.5
2011 15,860 14.5 230.7
2009 16,060 14.6 233.7

SWITZERLAND
2013 2011 2009

In cogeneration
Natural gas 3,270 16.6 % 2,998 17.3 % 3,088 17.3 %
Nuclear 1,249 6.3 % 1,525 8.8 % 1,310 7.4 %
Combustible renewables* 1,774 9% 1,459 8.4 % 560 3.1 %
Waste** 3,825 19.4 % 4,812 27.7 % 5,170 29 %
Geothermal 39 0.2 % 14 0.1 % 1 0.01 %
Combustible renewables* 1,734 8.8 % 756 4.4 % 538 3%
Solar and other 1 0.01 % 1 0.01 %
Renewable waste*** 4,365 22.2 % 3,340 19.2 % 3,493 19.6 %
Renewable Electricity 538 3%
Others
Natural gas 2,839 14.4 % 2,047 11.8 % 2,598 14.6 %
TOTAL 19,700 100 % 17,360 100 % 17,821 100 %


Energy supply composi0on of generated District Heat1
100%
90%
80%
70%
60% Other
40% Recycled Heat
30%
20%
10%
0%
2013 2011 2009

SWITZERLAND

In 2011, the Federal Council and Parliament decided that Switzerland is to withdraw step-by-step from the use of nuclear
energy. The existing five nuclear power plants are to be decommissioned when they reach the end of their safe service
life, and will not be replaced by new ones. As a result of this decision and various other profound changes that have been
observed for a number of years, in particular in the international energy arena, the Swiss energy system will require
successive restructuring in the period up to 2050. In view of this, the Federal Council has developed a long-term energy
policy (“Energy Strategy 2050”) based on the revised energy perspectives. At the same time, it has produced an initial
package of measures aimed at securing the country’s energy supply in the long term.
In the initial stage, the Federal Council’s new strategy is to focus on the consistent exploitation of the existing energy
efficiency potentials and on the balanced utilisation of the potentials of hydropower and new renewable energy sources.
Then at a later stage, the Federal Council wants to replace the existing promotion system with a steering mechanism.
The development of a new energy law is at the moment in progress. The new energy law will aim to ensure an environmentally-
friendly and sustainable production and distribution of energy. Furthermore, it shall ensure an economical and efficient
use of energy. The change over to an energy supply based more strongly on the use of domestic, renewable energy, will
be very important.
2 HEAT MARKET


4%

SWITZERLAND
2013 2011 2009

million m 2
18.7 17.3 15.7
Source In %
District Heating 4%
Natural gas 23%
Electricity 6%
Renewables* 10%
Heat pumps 3%
Other 5%
TOTAL 100%
3%
5% 4%
11%
23% District hea3ng
Natural gas
Electricity
Renewables*
6% Heat pumps
Other
48%
Oil, especially for heating of existing buildings, still plays a major role, followed by natural gas. Natural gas tends to replace
other fossil fuels with a higher carbon footprint, such as oil and coal. In urban areas the use of natural gas is often in direct
competition with District Heating, especially due to the well-developed natural gas network.
The use of heat pumps for heating has had in the last years the highest growth rate. Oil no longer plays a significant role
in new buildings.
Renewables and District Heating offer a great potential and have been developing in the last years.

SWITZERLAND

CHP/Total
Source In TJ
Oil / Petroleum products 478
Natural gas 12,196
Renewables* 10,243
Waste 12,551
Other 103
TOTAL 35,571

40,000
35,000
30,000
Other
25,000 Waste
Renewables*
TJ
20,000
Natural gas
15,000
10,000
5,000
0
CHP/Total

SWITZERLAND
The table below indicates specific heating degree days for selected towns in Switzerland.
The heating degree days are mean values over the period 1991-2000 and are calculated values on the basis of an assumed
indoor temperature of 20°C on days with a mean outdoor temperature of less than 12°C. These so-called 20/12 heating
degree days are mainly used in Switzerland, together with the corresponding method of the 20/14 heating degree days.
HEATING DEGREE-DAYS 20/12, MEAN VALUES 1991-2000 OF TYPICAL TOWNS IN SWITZERLAND
Basle Berne Geneva Lausanne Lucerne Lugano St. Gall Zurich

Spring 706 850 791 869 784 680 1,021 839
Summer 22 52 64 70 35 55 129 68
Autumn 713 856 794 873 779 684 967 843
Winter 1,559 1,710 1,588 1,746 1,656 1,367 1,752 1,685
TOTAL 3,000 3,468 3,237 3,558 3,254 2,786 3,869 3,435
NUMBER OF HEATING DEGREE DAYS IN 2013:
Basle 3,112
Berne 3,670
Chur 3,242
Geneva 3,162
Lucerne 3,400
Lugano 2,336
St. Gall 3,967
Zurich 3,436

The country consists of several typical climates, which are different not only in view of their languages (French, German,
Italian, Romansh) but also with regard to climate and therefore to the potential of District Heating and District Cooling.
Traditionally, District Heating has developed in the region north of the Alps in the major towns of the French-speaking
and German-speaking part of Switzerland, from Geneva in the western part to St. Gall the eastern part. District Heating
in Switzerland accounts for a major market share, especially in the towns of Basle, Zurich, Lausanne, Berne and Geneva.
Cities such as St. Gall, Chur and Winterthur and Murten, where District Heating will be expanded, have high potential.
Swiss District Heating Organisation

Fohrhölzlistr 22d, 5443 Niederrohrdorf, Switzerland
Tel: +41 56 496 28 70
www.fernwaerme-schweiz.ch
Contact Person: Marcel Kolb
Email: info@fernwaerme-schweiz.ch

335
MWth
TOTAL INSTALLED
DISTRICT HEATING
46,701
CAPACITY
GWh
OF HEAT WERE
SUPPLIED BY COMBINED
HEAT AND POWER
210,000
DWELLINGS SERVED
BY DISTRICT HEATING
UK
UNITED KINGDOM
HANAÉ CHAUVAUD DE ROCHEFORT

UNITED KINGDOM
1 DISTRICT HEATING
KEY FIGURES
2013 2011
Total installed District Heat capacity (in MWth) 335 335
Trench length in km for transport and distribution network (one way) 361 361
Estimation of the total investment in District Heating and Cooling in Euro
143.75 M*
(excluding operational and maintenance costs)
Number of District Heating systems** 2,000 2,000
*Euro exchange rate used (annual average): 1 GBP = 1.25 EUR

** District Heating system is a heat distribution network with its own heat source, technically independent from other networks, regardless of
HEAT SALES TURNOVER
Heat sales Turnover (in Million EUR)*

2013 437.5
2011 437.5
*Estimate
The main fuel used for District Heating is gas (around 80%), followed by energy from waste, oil and biomass. The majority
of schemes are fuelled by one primary heat source, backed up with gas boilers.

The UK District Heating market is currently underdeveloped, however this could change over the next few years. The
Government has identified the economic potential to provide up to 14% of UK heat demand by 2030 from 2% today.
Analysis shows that in the right conditions, District Heating could be a cost-effective and viable alternative to individual
renewable technologies, at the same time as reducing bills for consumers.
The Heat Networks Delivery Unit (HNDU) was set up by DECC in September 2013 to support local authorities in developing
heat networks. The unit can provide funding over two financial years for heat mapping, energy master planning and
feasibility studies. Since its creation in 2013, the Unit has awarded support to 180 projects across 115 local authorities
including £9.7 million of grant funding. The Unit is currently scheduled to run Until March 2016.
Under the influence of ADE, District Heating is an increasing part of the UK energy policy. The Department for Energy
and Climate Change (DECC) stated in a new infrastructure investment report that heat networks are now recognised by
Government as the UK’s third major energy network, with new investments opportunities of up to £800m in the next
decade.
Two years on from the publication of the UK Heat Strategy, the focus for District Heating turns from one of policy to
obtaining investment to reach the potential level of deployment that the Government has identified.
United Kingdom - 3 COUNTRY BY COUNTRY / 2015 Survey

UNITED KINGDOM
District Heating has been identified as a key part of the least costly mix of technologies needed to meet the UK climate
and energy objectives.
In the 2013 Heat Strategy, UK Government identifies growth potential from 2% of the heat supply market up to 14% by
2020. The Strategy is a vision which indicated that up to 50% of buildings could be connected to heat networks by 2050.
The Scottish Government is backing District Heating with renewable energy with significant financial help and there are
several Government agencies working to develop projects.
The Scottish Government proposed a target of 40,000 homes connected to District Heating (a four fold increase) and 1.5
TWh of district heat delivered to industry, consumers and business (a five fold increase) by 2020.

There is no legislative framework for District Heating, but the Heat Metering and Billing Regulations provide a seed-
legislative framework (transposition of the EU Energy Efficiency Directive Articles 9(1) & (3), Articles 10, 11 & 13).
All organisations or individuals who supply heating, hot water or cooling via District Heating, Cooling or via communal
heating will need to comply with the Regulations.
The Regulations require building-level meters to be installed in multi-purpose/multi-unit building. Additionally, individual
meters need to be installed in all new buildings, major renovations and, depending on the outcome of a technical feasibility
and cost-efficiency test, in other existing buildings.
Where individual meters are installed, operators must bill based on metered consumption, provide historic consumption
data and offer a like-for-like comparison of the cost against other forms of heating.

OF DISTRICT HEATING
While there have been grant programmes from time to time, and the HNDU to support local authorities, currently there is
no central government financial subsidy for District Heating. District Heating is an eligible measure through Government
energy efficiency programme in the domestic sector.
Energy Company Obligation (ECO)

Government regulations on the electricity and gas suppliers to increase energy efficiency in dwellings (the Energy Company
Obligation, or ECO) provide financial support to new District Heating or renovation of old schemes. Following a review
of the ECO scheme in 2014, District Heating became a primary measure. This allows electricity suppliers to use District
Heating to meet their obligation without having to include it in a package of solid wall insulation in multi-storey buildings.
The lifetime measure of carbon savings from District Heating has been extended to 40 years for new connections, and CHP
systems to 15 years for upgrade of existing connections, which improves the ECO funding available for District Heating.
Zero Carbon Homes

When building new homes, property developers must pay a contribution to the Local Authority to support local
infrastructure. This Community Infrastructure Levy (CIL) can be used for the creation of heat networks.
At present, there is uncertainty whether property developers will have to pay the Local Authority if they cannot meet the
Zero Carbon Homes standards, which are due to commence in 2016 for domestic buildings and 2019 for non-domestic
buildings. England building standards are currently being reviewed by the Government, which is seeking to reduce costs
for house builders.
The Government has established some measures that are intended to provide a stimulus for CHP investment. The CHP
Quality Assurance Programme (CHPQA) provides the qualifying criteria for all CHP support.
Carbon Price Support

The Carbon Price Support mechanism taxes all fossil fuels used to generate electricity. CHP is exempt from CPS on fuel
used to generate heat so it is not disadvantaged compared to power-only generation (as CPS is not applied to heat-only
boilers). CHP receives relief from CPS for all fuel used to meet on-site electricity demand. All CHP units with sub 2 MW
capacity are exempted from CPS.

UNITED KINGDOM
Climate Change Levy

The Climate Change Levy is a carbon tax applied to commodities such as electricity, gas and coal that is used by businesses.
CHP is exempt from CCL on all gas and all electricity used on-site.
Renewable Obligations (RO)

CHP schemes that utilise a renewable fuel such as biogas, biomass or Refuse Derived Fuel (RDF) are rewarded with a
premium on each MW hour of electricity produced under the Renewables Obligation (RO) mechanism.
Renewable Heat Incentive (RHI)

In 2011, the UK Government launched the world’s first premium payment scheme for generators of renewable heat, the
Renewable Heat Incentive (RHI). The RHI provides a premium payment on each MW hour of metered renewable heat
production, banded by technology (including RDF, biomass and biogas) and paid for out of general taxation.
Contracts for Differences (CfD)

CfDs are designed to bring forward new low carbon electricity generating capacity. The CfD started in 2015 and will
replace the RO in April 2017. An electricity generator with a CfD is paid the difference between the ‘strike price’ -- a price
reflecting the cost of a particular low carbon technology -- and the ‘reference price’ – a measure of the average market
price for electricity. Therefore the rate of subsidy will fluctuate depending on the reference price in order to provide the
generator with the strike price. Negative payments are possible. Contracts are provided following a competitive auction
process and strike prices could be lower than initially set by Government. Biomass, biogas and Advanced Conversion
Techonology CHP are all eligible.
Enhanced Capital Allowance (ECA)

The ECAs simply support the cash flow for a project. ECAs are 100% first-year capital allowances on investments in certain
energy-saving equipment. Businesses are able to write-off the whole cost of their investment against their taxable profits
during the period in which they make the investment. Good Quality CHP is one of the technologies eligible for support
under the ECA scheme, as it qualifies as “energy-saving plant and machinery”. The CHP plant and machinery covered by
the ECA scheme is detailed on the Energy Technology Criteria List.
Preferential Treatment of CHP under Business Rates CHP Plant

CHP plants are not fully exempt from paying business rates, however the Government has introduced preferential
treatment under the business rates regime for Good Quality CHP plants.
Feed in Tariff (FIT)

Micro CHP under 2kW is eligible for the UK’s feed-in tariff scheme. The FiT provides a premium payment, banded by
technology, which for micro CHP is 12.5p/kWh of electricity generated, for a lifetime of 20 years.

The UK was one of the first EU member states to liberalise their energy markets and separate generation, transmission,
distribution and supply. This liberalised market approach has made the UK sensive to fluctuations in world fossil fuel
prices. The pattern of the UK’s heat supply is currently locked into fossil fuels and historically there has been little attempt
to fully integrate heat and electricity production, which maximises the utilisation and efficiency in use of all fuels.
The choice of heat delivery has historically been made at the level of individual dwellings, whereas the predominant model
of UK domestic heat provision to individual domestic and non-domestic dwellings is gas-fuelled heating supplied off a
central grid.
Licensing restrictions mean that many organisations operating small-scale CHP plant on heat networks cannot sell
electricity to customers across the public distribution grid. Instead they must either spill to the grid or create a private
wire network. This means that the ability to receive a market rate for the electricity is restricted.
Heat supply is unregulated monopoly in the UK and there is anecdotal evidence that this deters investors because it
creates uncertainty of eventual imposition of regulation. The ADE is setting up a customer protection scheme that will
provide a similar level of protection for heat customer that the one which exists for electricity and gas customers; and is
developing standards for District Heating.

UNITED KINGDOM
Waste-to-Energy is already playing a role in UK District Heating. Waste heat and large scale heat pumps are the most likely
to see future expansion, although geothermal heat and solar thermal are both expected to play important roles.

Bunhill Heat and Power is a ground-breaking scheme retrofitting District Heating to existing buildings in an inner-city
environment. Completed in 2012, the first phase of the network serves over 850 homes, two leisure centres and a new
housing development. It provides cheaper, greener heat to residents, helping to provide a buffer for residents against
rising fuel prices and delivers CO2 savings of around 60% for the existing buildings compared to their previous heating
systems.
The Islington Council is looking to expand the network in 2017 to connect additional homes and capture low carbon and
renewable heat from local sources such as the London Underground network. Islington was awarded HNDU grant funding
in 2014 to further explore expansion opportunities for Bunhill Heat and Power, and to support the update of the Borough
and Bunhill specific heat network master plans. A short video of the project is available online1.
Innovative scheme - Aberdeen

In 2002, the Aberdeen City Council looked into options for the most appropriate form of replacing electric storage heating
in multi-storey blocks of flats to achieve the aims of:
• reducing fuel costs for tenants (and so fuel poverty proofing these flats);
• reducing carbon dioxide emissions;
• being a safe and reliable system;
• being affordable in capital terms.
The council set up Aberdeen Heat & Power (AHP) as a locally based, not-for-profit organisation to develop and run combined
heat and power schemes through a rolling programme of CHP developments linked to clusters of multi-storey blocks. The
system already supplies around 2,000 council flats in 26 multi-storey blocks, low rise sheltered housing complexes as well
as 13 public buildings. Carbon emissions from these buildings have been reduced by 45%.
The scheme has recently been awarded £1M by the Scottish Government to expand the network to non-domestic
properties with commercial heat sales revenues ring fenced to heat households in the city.
1 https://www.youtube.com/watch?v=SuBa9qYQ9VM&list=UU_FRq4hx6-ofDW5hsF6YdTA&index=1

UNITED KINGDOM
2 HEAT MARKET


2%
Source In %
District Heating 2%
Natural gas 80%
Electricity 8%
Renewables* 2%
TOTAL 100%

UNITED KINGDOM
2% 2%
8%
8%
District Hea/ng
Natural gas
Electricity
Renewables*
80%
Gas accounted for an 80% share of the heating market, fuel oil and electric heating for an 8% share each, District Heating
for a 2% share and other solutions accounted for the remaining 2% share (heat pumps, hybrid gas boilers, etc).
3 DISTRICT COOLING
KEY FIGURES 2013:
PROPORTION OF DISTRICT HEATING SCHEMES WITH COOLING: 19.44%
TOTAL NUMBER OF INSTALLATIONS WITH COOLING: 21
TOTAL COOLING CAPACITY (KW TH): 89,035
AVERAGE COOLING CAPACITY (KW TH): 2,120

UNITED KINGDOM


The installed capacity at the end of 2013 stood at 6,170 MWe, virtually unchanged in comparison to 2012.
CHP schemes generated 20,891 GWh of Good Quality2 electricity in 2013, decreasing 9% in comparison to 2012. This
generated electricity represents 5.8% of the total electricity generated in the UK.
This change is largely due to changes in utilisation of power generating capacity in the Oil Refineries sector. This change
also follows the removal of a tax relief for CHP-generated electricity, the Levy Exemption Certificates, in April 2013. The
relief had a value of 5 GBP.
In 2013, CHP schemes supplied a total of 46,701 GWh of heat, which was a decrease of about 3% compared to 2012.
In 2013, 67% of the total fuel use was natural gas, compared to 71% in 2012, whilst the renewable share was up to 10.5%,
due to an increase in use of liquid biofuels.
There has been significant growth in the small-scale CHP sector (below 2 MW), driven by favourable on-site spark spreads
and planning requirements. The number of small-scale CHP has grown from 1,184 in 2009 to 1,786 in 2013. Key sectors for
this growth include the buildings, District Heating and small industrial markets.
There has been relatively small growth in new larger CHP schemes, with electrical capacity growing from 5.1 GW in 2009
to 5.7 GW in 2013.
In April 2013, the government removed the Levy Exemption Certificate for CHP, which exempted all CHP-generated
exported electricity from the Climate Change Levy (CCL). This had a value of just under 5 GBP/MW electricity. All CHP-
generated electricity used domestically or on-site continues to be exempt from the CCL.
From April 2015 fuel used to generate Good Quality electricity which is consumed on-site does not pay the Carbon Price
Support (CPS). All fuel used for CHP-generated heat continues to be exempt from the CPS.
The daily average temperature for 2013 was 9.7°C, 0.03°C cooler than 2012. The average number of heating degree days
for 2013 was 6.2, 0.2 higher than 2012.
The base temperature used to calculate degree days in the UK is 15.5°C, because at this temperature most UK buildings
do not need supplementary heating.

Regional climates in the United Kingdom are influenced by the Atlantic Ocean and latitude. Summers are cooler than those
on the continent, but winters are milder. The overall climate in England is called temperate maritime. This means that it is
mild with temperatures not much lower than 0°C in winter and not much higher than 32°C in summer.
2 Certifying CHP inputs and outputs as ‘Good Quality’ is done through the CHP Quality Assurance (CHPQA) programme. The certification
is the route through which eligibility for a range of financial benefits is determined. More information is available on: https://www.gov.uk/
combined-heat-power-quality-assurance-programme

UNITED KINGDOM
The Association for Decentralised Energy

10 Dean Farrar Street, London, SW1H 0DX, United Kingdom
Tel: +44 (0)20 3031 8740
www.theade.co.uk
Contact Person: Hanaé Chauvaud de Rochefort
E-mail : hanae.derochefort@theade.co.uk

Country by Country 2015

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TABLE OF CONTENTS

Table of contents - 1 COUNTRY BY COUNTRY / 2015 Survey

Preface - 2 COUNTRY BY COUNTRY / 2015 Survey

Welcome to the Story of Us

Preface - 3 COUNTRY BY COUNTRY / 2015 Survey

ABOUT EUROHEAT & POWER

Find out more at www.euroheat.org

About EHP - 2 COUNTRY BY COUNTRY / 2015 Survey

SPONSORS OF ‘DISTRICT HEATING AND COOLING - COUNTRY BY COUNTRY 2015 SURVEY‘:

BELARUS ICELAND SERBIA

CHINA JAPAN SLOVENIA

Acknowledgements - 2 COUNTRY BY COUNTRY / 2015 Survey

International Energy Agency

International Energy Agency - 2 COUNTRY BY COUNTRY / 2015 Survey

Executive Summary - 3 COUNTRY BY COUNTRY / 2015 Survey

Heat sources for District Heating (EU 28)

2 European Construction Technology Platform (http://www.dhcplus.eu/wp-content/uploads/2012/05/120529_Vision_DHC_

Executive Summary - 4 COUNTRY BY COUNTRY / 2015 Survey

Heat sources for District Heating (EU 28)

Executive Summary - 5 COUNTRY BY COUNTRY / 2015 Survey

TOP DISTRICT HEATING AND COOLING INDICATORS

Energy supply composition for District Heat generated

Executive Summary - 6 COUNTRY BY COUNTRY / 2015 Survey

District Heating sales to customers

District Heat sales in 2013 and 2009

Total District Heat sales in 2013

Total District Heat sales in 2009

Executive Summary - 7 COUNTRY BY COUNTRY / 2015 Survey

Total District Heat sales in China

1,500,000 Total District Heat sales in 2009

District Heating sales turnover

District Heating sales turnover in 2013 and 2009

Annual District Heat sales turnover 2013

Annual District Heat sales turnover 2009

Executive Summary - 8 COUNTRY BY COUNTRY / 2015 Survey

Share of citizens served by District Heating

Share of citizens served by District Heating in 2013

Share of ci+zens served by District Hea+ng in 2013

Trench length for transport and distribution network

Executive Summary - 9 COUNTRY BY COUNTRY / 2015 Survey

4ng pipeline system in 2013 and 2009

15,000 Trench length

Trench length of District Hea4ng pipeline system 2013

Trench length of the District Heating pipeline system in China

100,000 Trench length of District Hea:ng pipe

Trench length of District Hea4ng pipeline system 2013

Executive Summary - 10 COUNTRY BY COUNTRY / 2015 Survey

District Cooling capacity in 2013 and 2009

DISTRICT COOLING CAPACITY

District Cooling capacity in 2013 and 2009

District Cooling capacity 2013

7 Source: Anders Tvärne and Henrik Frohm, Capital Cooling, 2013

Executive Summary - 11 COUNTRY BY COUNTRY / 2015 Survey

DISTRICT COOLING SALES

d 2009 District Cooling sales in 2013 and 2009

District Cooling sales 2013

TRENCH LENGTH OF DISTRICT COOLING NETWORKS

Trench length of District Cooling pipeline system 2013

Executive Summary - 12 COUNTRY BY COUNTRY / 2015 Survey

BARRIERS FOR DISTRICT COOLING

Total share of CHP in national electricity production in 2013

Executive Summary - 13 COUNTRY BY COUNTRY / 2015 Survey

Total share of CHP in District Heating generation in 2013