INTERNATIONAL ENERGY AGENCY

District Heating and Cooling, including the integration of CHP

ANNEX VII
A COMPARISON OF DISTRIBUTED CHP/DH
WITH LARGE SCALE CHP/DH

Paul Woods
Oliver Riley

Parsons Brinckerhoff Ltd

© 2002 Novem 1
INTERNATIONAL ENERGY AGENCY
District Heating and Cooling, including the integration of CHP

Objectives of Study

Review of CHP/DH experiences in partner countries

Review of current CHP technologies, especially small-
scale
Economic and environmental comparison of centralised
vs distributed CHP/DH solutions

© 2002 Novem 2
 INTERNATIONAL ENERGY AGENCY
District Heating and Cooling, including the integration of CHP

Scenarios
The heat and power demands of the buildings within a generic city
could be met by:

• A – City-wide DH system supplied by a single large CCGT power

station at the city edge
• B – 10 separate District level DH systems supplied by smaller
CCGT power plants
• C – 50 Local DH systems supplied from spark-ignition gas-engine
CHP
• D – individual Building CHP systems using spark-ignition gas-
engines for apartment blocks and Stirling engines for individual
houses (circa 100,000 units)
– Balance of electricity demand/supply by trading on national grid

© 2002 Novem 3
INTERNATIONAL ENERGY AGENCY
District Heating and Cooling, including the integration of CHP

Scenarios

© 2002 Novem 4
 INTERNATIONAL ENERGY AGENCY
District Heating and Cooling, including the integration of CHP

Factors influencing the outcome

• CHP unit type and size
• Implementation and marketing
• CHP unit utilisation
• Impact on gas and electricity
• CHP unit performance
networks
characteristics
• Local environmental impact (e.g.
• CHP capital and operational costs
Quantitofarequired l i ta ti v e
Qua
noise, NOx)
• Extent and design tive DH
infrastructure • Security of supply of heat and
electricity
• DH capital and operational costs
• Potential for incorporation of
• Energy transmission losses
renewables and alternative heat
• Cost of fuel production technologies
• Value of electricity

© 2002 Novem 5
 INTERNATIONAL ENERGY AGENCY
District Heating and Cooling, including the integration of CHP

‘Generic’ city derived from European data

100

90

80

70

60
Increasing
Frequency

size of city
50

40

30

20

10

0
0 5 0 5 0 5 0 5 0 5 0 5 0 5 0 5 0 5 0 5 0 5 0 5 0 5 0 5 0 5 0 5 0 5 0 5 0 5 0 5 0 5 0 re
15 17 20 22 25 27 30 32 35 37 40 42 45 47 50 52 55 57 60 62 65 67 70 72 75 77 80 82 85 87 90 92 95 97 100 102 105 107 110 112 115 117 120 M o

City Population (k)

© 2002 Novem 6
INTERNATIONAL ENERGY AGENCY
District Heating and Cooling, including the integration of CHP

Modelling – energy demand assessment

Inner City electrical demand
Inner City heat demand
36 31
71

123

Institutions
Domestic

Commercial 228

& retail 254

Industrial
164

93

Outer City heat demand Outer City electrical demand

93 15
144
241
349

296

1,517

731

© 2002 Novem 7
INTERNATIONAL ENERGY AGENCY
District Heating and Cooling, including the integration of CHP

Modelling – CHP performance characteristics

SCHEME CITY-WIDE DISTRICT LOCAL BUILDING BUILDING

Description CCGT CCGT SIGE SIGE Micro

Capacity (kWe) 400000 70000 5100 305 0.85

Euro/kW installed
628 755 859 1,506 2,940
(Euro k/kW)

Combined efficiency 89% 88% 84% 84% 96%

Electrical efficiency
54% 53% 46% 35% 11%
(NCV)
Thermal efficiency
35% 35% 38% 49% 85%
(NCV)

Z-factor 6.15 6.27 n/a n/a n/a

© 2002 Novem 8
INTERNATIONAL ENERGY AGENCY
District Heating and Cooling, including the integration of CHP

CHP Simulation Model

1,600,000
DSF= 0.3 Jan
Diversified heat demand (weekday) per plant
Diversity factor on peak = 63%
1,400,000 Feb
1,000,000
900,000
Mar

Average Heat Demand (kW)

800,000
1,200,000 700,000
Apr
600,000
500,000
May
1,000,000 400,000
300,000 Jun
Load (kW)

200,000
800,000 100,000 Jul
-
1 3 5 7 9 11 13 15 17 19 21 23 Aug
600,000 Hour of Day
Sep

Oct
400,000
Nov

200,000 Dec
Diversified
Undiversified

0
0 584 1168 1752 2336 2920 3504 4088 4672 5256 5840 6424 7008 7592 8176 8760
Number of hours per year

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INTERNATIONAL ENERGY AGENCY
District Heating and Cooling, including the integration of CHP

Energy balance results – heat supply

Consumer demand DH heat losses CHP heat recovery Boiler top-up heat

3000

2500

2000
GWh

1500

1000

500

0
City-wide District Local Building Alternative

© 2002 Novem 10
INTERNATIONAL ENERGY AGENCY
District Heating and Cooling, including the integration of CHP

Energy balance results – electricity supply

Demand at buildings HV losses LV losses DH Pumping power Elec production Net import

4500

4000

3500

3000

2500

2000

1500
GWh

1000

500

-500
0

-1000

-1500

-2000

-2500
City-wide District Local Building Alternative

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INTERNATIONAL ENERGY AGENCY
District Heating and Cooling, including the integration of CHP

Environmental results summary

1.60

1.40

1.20
MT CO2 per annum

1.00

0.80

0.60

0.40

0.20

0.00
WHOLE CITY INNER CITY OUTER CITY

City-wide District Local Building Alternative

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INTERNATIONAL ENERGY AGENCY
District Heating and Cooling, including the integration of CHP

Economic results summary

€0

-€ 500,000

-€ 1,000,000
NPV (x1000)

-€ 1,500,000

-€ 2,000,000

-€ 2,500,000

-€ 3,000,000

-€ 3,500,000
WHOLE CITY INNER CITY OUTER CITY

City-wide District Local Building Alternative

© 2002 Novem 13
INTERNATIONAL ENERGY AGENCY
District Heating and Cooling, including the integration of CHP

Conclusions
City-Wide CHP (400MWe CCGT)

• Most economical on a large scale – lifecycle efficiency

savings offset capital cost of city-wide DH infrastructure
• Delivers greatest environmental benefits
• Potential for incorporating alternative heat production
sources i.e. energy from waste, biomass, fuel cells
• Requires high degree of regulation to sanction necessary
infrastructure works and ensure high levels of take-up

© 2002 Novem 14
INTERNATIONAL ENERGY AGENCY
District Heating and Cooling, including the integration of CHP

Conclusions
District CHP (70MWe CCGT)

• Delivers environmental and lifecycle cost savings over

other CHP scenarios except City-wide scheme
• In Outer City cannot compete economically with alternative
scenario (gas boilers)
• Potential for incorporating alternative heat production
sources i.e. energy from waste, biomass, fuel cells
• Requires high degree of regulation to sanction necessary
infrastructure works and ensure high levels of take-up

© 2002 Novem 15
INTERNATIONAL ENERGY AGENCY
District Heating and Cooling, including the integration of CHP

Conclusions
Local CHP (circa 5MWe SIGE)

• Not cost effective generally but more competitive in Inner

City
• Largest part of the DH infrastructure cost is at Local level
• SIGE not as good environmentally as CCGT due to lower
efficiency and lower proportion of CHP heat supplied
• Less regulation required than for larger schemes as only a
few ‘anchor’ customers need commit initially
• Local environmental impact must be minimised with careful
design

© 2002 Novem 16
INTERNATIONAL ENERGY AGENCY
District Heating and Cooling, including the integration of CHP

Conclusions
Building CHP (15kWe Stirling to 2MWe SIGE)

• Avoids DH infrastructure costs and minimises losses

because energy is consumed near to the source of
production
• Low electrical efficiency
• More economical than Local CHP in low density Outer City
areas
• Potential costs to upgrade electricity network if high
penetration of distributed generation is to be achieved
• Potentially higher electrical efficiency in future with fuel cells

© 2002 Novem 17