Getting fair institutional conditions for district heating consumers: Insights from Denmark and Sweden

Gorroño-Albizu, Leire; Godoy, Jaqueline de

doi:10.1016/j.energy.2021.121615

Cited by 8 publications

(5 citation statements)

References 25 publications

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“…DH is a natural monopoly, as there is little room for competition. DH companies can abuse the monopoly and disproportionately increase prices, complicating invoicing and tariff structure, harming new customers (Gorroño-Albizu & de Godoy, 2021). This abusive method of increasing profits creates disadvantages for DH operators, and end-users can favour individual heat supply.…”

Section: Introductionmentioning

confidence: 99%

Smart heat tariffs in transition to free market

Pakere¹,

Blumberga²

2023

Theory build. pract.

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Innovative pricing mechanisms should motivate heat suppliers and consumers to move toward more sustainable energy systems and introduce low-temperature district heating systems and sector coupling in smart energy systems. Therefore, district heating regulation regimes should also be changed to stimulate transformations in the energy sector. The district heating tariffs depend on many factors, including fuel prices, operational parameters, taxes, investments, and other criteria. Therefore, an analysis of the DH tariffs has been implemented to find solutions to motivate DH enterprises towards energy efficiency and climate neutrality. The analysis results are based on the decision-making assessment approach by selecting various criteria and evaluating them from five significant aspects: engineering, environmental, climate, economic and socioeconomic. The central elements within the developed fuzzy cognitive mapping model are investment costs, heat production costs, and primary energy consumption. Considering the set boundary conditions, the most beneficial method for smart heat tariff definition could be heat tariff benchmarking with integrated energy efficiency standards for DH operators.

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Section: Introductionmentioning

confidence: 99%

Smart heat tariffs in transition to free market

Pakere¹,

Blumberga²

2023

Theory build. pract.

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“…Benakopoulos et al [54] develop a strategy for low-temperature operation of radiator systems using data from existing digital heat cost allocators, and Ziemele et al [55] have described a methodology for connecting low heat density consumers to a district heating system. Licklederer et al [56] as well as Gross et al [57] investigate the options of integrating buildings as prosumers into the heating grids and Gorrono-Albizu and Godoy address the issue of fairness in the transition [58]. Several other previous papers add to these findings regarding energy consumption modeling [59][60][61][62] and energy renewability improvements [63][64][65][66][67][68][69][70] for buildings.…”

Section: Introductionmentioning

confidence: 99%

Fourth-Generation District Heating and Motivation Tariffs

Lund

Thorsen

Jensen³

et al. 2022

ASME Open Journal of Engineering

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Future district heating systems and technologies—also known as fourth-generation district heating—have a potentially important role to play in the green transition of societies. The implementation of fourth-generation district heating involves adjustments in the demand side to allow for low temperature supply. In order to facilitate such changes, district heating supply companies have in recent years introduced tariffs with penalties for high return temperatures and benefits for low return temperatures. This paper describes the case of a housing community of 17 buildings in their attempts to adjust to such tariffs as an integrated part of connecting to district heating. Replacing domestic hot water tanks with instantaneous heat exchangers and introducing smart meters resulted in abilities to lower the return temperature from around 40 °C to around 30 °C. However, the current design of the motivation tariffs does not yet fully compensate the consumers because the supply company provides unnecessarily high supply temperatures. Based on such efforts, this paper discusses the fairness and effectiveness of the tariffs and provides recommendations for improving them.

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“…Therefore, it is important that the institutional framework promotes DH companies' trustworthy behaviour, thus encouraging consumers to choose DH. Note that such trustworthy behaviour implies high cost-efficiency [101], which is a major concern and regulatory challenge in natural monopolies. Hvelplund and Djørup's study on distribution system operators (DSOs) suggests that ownership could be a determinant for ensuring the effective control of prices charged by monopolistic companies [32].…”

Section: Dh Systemsmentioning

confidence: 99%

“…The difference in motivations and company values can explain some of the most fundamental differences between commercial energy companies and (some types of) citizen-owned energy companies, leading to different behaviours regarding e.g. technology choices and investment decisions, distribution of benefits, distribution of decision-making power, and transparency with consumers and regulatory authorities [25], [32], [35], [78], [101], [111], [112]. Given the purpose of this study, it is important to break with the Neoclassical Economics' tradition of considering all companies as 'identical and neutral "dots" behaving in a similar way on the market' [111, p. 53] and highlight the key differences between the diverse ownership models.…”

Section: Figurementioning

confidence: 99%

“…Consumer power has four dimensions: state regulative power, ownership power, buying power and communicative power [32], [118]. These dimensions can be understood as mechanisms of control that can motivate DH companies to exhibit trustworthy behaviour [101], [114]. This understanding of consumer power has been successfully applied to the study of DSOs' (i.e.…”

Section: Trust Consumer Power and Dh Companies' Trustworthy Behaviourmentioning

confidence: 99%

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Ownership Models for Renewable Smart Energy Systems: Insights from Denmark and Sweden regarding Onshore Wind Farms and District Heating Systems

Gorroño-Albizu

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In the context of the climate crisis and the Paris Agreement, the EU has set the target of reducing its carbon emissions by 55% compared to 1990 levels by 2030 and reaching carbon neutrality by 2050. The transformation of the energy system through the substitution of fossil fuels with energy demand reductions, variable renewable energy and other low-carbon fuels and technologies will be crucial to meeting those goals. However, the positive and negative consequences of different socio-technical paths are still not fully understood, and in particular, more knowledge is needed regarding the potential socio-political, market and local acceptance of these paths, as this is essential for a timely energy transition. This study contributes to this understanding by studying which ownership characteristics and models could best promote (a) the implementation of onshore wind farms and district heating systems in renewable smart energy systems and (b) the reduction of the related energy costs and prices.

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Getting fair institutional conditions for district heating consumers: Insights from Denmark and Sweden

Cited by 8 publications

References 25 publications

Smart heat tariffs in transition to free market

Smart heat tariffs in transition to free market

Fourth-Generation District Heating and Motivation Tariffs

Ownership Models for Renewable Smart Energy Systems: Insights from Denmark and Sweden regarding Onshore Wind Farms and District Heating Systems

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