Risk assessment of new pricing strategies in the district heating market

Björkqvist, Olof; Idefeldt, Jim; Larsson, Aron

doi:10.1016/j.enpol.2009.11.064

Cited by 13 publications

(3 citation statements)

References 12 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Fuel prices are always hard to predict [53] and this leads to uncertainties in the planning process. However, this uncertainty is independent from the planning tool used and one challenge district heating providers are dealing with [54]. A heat pump is therefore installed as a second central supply technology and the share of centrally supplied heat rises to 88-95% showing that the amount of centrally supplied heat is nearly independent from the gas price in that case.…”

Section: Summary Of the Resultsmentioning

confidence: 99%

A Method for Optimizing and Spatially Distributing Heating Systems by Coupling an Urban Energy Simulation Platform and an Energy System Model

et al. 2021

View full text Add to dashboard Cite

District heating is seen as an important concept to decarbonize heating systems and meet climate mitigation goals. However, the decision related to where central heating is most viable is dependent on many different aspects, like heating densities or current heating structures. An urban energy simulation platform based on 3D building objects can improve the accuracy of energy demand calculation on building level, but lacks a system perspective. Energy system models help to find economically optimal solutions for entire energy systems, including the optimal amount of centrally supplied heat, but do not usually provide information on building level. Coupling both methods through a novel heating grid disaggregation algorithm, we propose a framework that does three things simultaneously: optimize energy systems that can comprise all demand sectors as well as sector coupling, assess the role of centralized heating in such optimized energy systems, and determine the layouts of supplying district heating grids with a spatial resolution on the street level. The algorithm is tested on two case studies; one, an urban city quarter, and the other, a rural town. In the urban city quarter, district heating is economically feasible in all scenarios. Using heat pumps in addition to CHPs increases the optimal amount of centrally supplied heat. In the rural quarter, central heat pumps guarantee the feasibility of district heating, while standalone CHPs are more expensive than decentral heating technologies.

show abstract

Section: Summary Of the Resultsmentioning

confidence: 99%

A Method for Optimizing and Spatially Distributing Heating Systems by Coupling an Urban Energy Simulation Platform and an Energy System Model

et al. 2021

View full text Add to dashboard Cite

show abstract

“…In addition, the mismatches between DH price and the actual production cost indicates that predetermined price leads to significantly higher financial risk [22]. The real-time price basing on the actual operation could be a plausible alternative.…”

Section: Discussionmentioning

confidence: 99%

District heating cost fluctuation caused by price model shift

Jin

Wallin

2017

Applied Energy

View full text Add to dashboard Cite

5District heating (DH) is considered as an efficient, environmentally friendly and cost-effective method 6 for providing heat to buildings, and is playing an important role in the mitigation of climate change. 7Nowadays, Swedish DH companies are facing multiple challenges, and in urgent need for new price 8 models to increase transparency and keep the competitiveness. In this paper, a survey is carried out 9 to understand the structure of the present price models. Then, two restructured price models are 10proposed and compared with the price model most commonly used. To increase the transparency, 11 price models should base on users' consumption profile; while to reduce the peak load, adopting the 12 pricing strategy based on load demand is an effective way. Consequently, users with flat 13 consumption profiles will save cost, whereas users with steep consumption profiles will have a cost 14 increase, when charging the load demand cost based on daily or hourly peak load demand.

show abstract

“…Literature [3] measured the power purchase risk of power supply companies in the long-term market and the short-term market by income variance. In recent years, VaR and CVaR, the risk measurement methods in the financial field, have been increasingly used in the power market risk measurement [4][5][6][7][8], mostly as a risk measurement method. At present, there are many researches based on VaR and CVaR to measure the transaction risk of power purchase side [9][10].…”

Section: Introductionmentioning

confidence: 99%

Bidding strategy of power generation companies in the centralized electricity spot market

Han

Zhang

et al. 2020

E3S Web Conf.

View full text Add to dashboard Cite

With the development of China’s power market reform, the spot market has gradually opened up. The spot market is characterized by volatility and uncertainty. Generators urgently need to manage spot market trading income and risks to avoid the risk of spot price fluctuations. This paper studies the bidding strategies of power generation companies in the concentrated spot market, proposes a risk-return coordination method based on the probability of winning bids and conducts case verification. The example shows that the method can assist the power generation companies to formulate bidding strategies.

show abstract

Risk assessment of new pricing strategies in the district heating market

Cited by 13 publications

References 12 publications

A Method for Optimizing and Spatially Distributing Heating Systems by Coupling an Urban Energy Simulation Platform and an Energy System Model

A Method for Optimizing and Spatially Distributing Heating Systems by Coupling an Urban Energy Simulation Platform and an Energy System Model

District heating cost fluctuation caused by price model shift

Bidding strategy of power generation companies in the centralized electricity spot market

Contact Info

Product

Resources

About