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District energy in North-eastern universities – greener and more flexible. Daniel Møller Sneum Dartmouth College 19 April 2018. Agenda. PART I What is district energy? PART II Student consultants: DTU looks at Dartmouth PART III Why district energy and flexibility?
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District energy in North-eastern universities – greener and more flexible Daniel Møller Sneum Dartmouth College 19 April 2018
Agenda PART I • What is district energy? PART II • Student consultants: DTU looks at Dartmouth PART III • Why district energy and flexibility? • Preliminary findings • Next steps
PART I What is district energy?
Q: What is district energy? TECHNOLOGY ONLY SEEN IN COMMUNIST COUNTRIES + HIPPIES IN NORTHERN EUROPE Illustration: https://en.wikipedia.org/wiki/Communism#/media/File:Communist_star.svg
A: An American invention By Birdsill Holly in NY Illustration: https://en.wikipedia.org/wiki/Flag_of_the_United_States#/media/File:Flag_of_the_United_States.svg
A: (cont.) Efficient way to heat and cool buildings Warm or coldwater/steam in pipes From a multitude of heat sources Transmitted to consumers Image: Danfoss. http://districtenergy.danfoss.com/assets/img/desktop/d_1.jpg
Heat delivery (2014) and deployment https://www.districtenergy.org/resources/resources/system-maps S. Werner, International review of district heating and cooling, Energy. 137 (2017) 617–631. doi:10.1016/j.energy.2017.04.045.
PART II Student consultants: DTU looks at Dartmouth
Course: Feasibility studies of energy projects • Autumn 2017 • 11 groups - 70 students • Feasibility study: carbon neutral supply • Technology • Environment • Economy • Financing • Ownership • Regulation • Elizabeth Wilson + Rosi KerrDartmouth: invaluable! OUCH!-zone Zones of learning-comfort
Conclusions from students • Consider thermal storage + bioCHP + PV • Balance RE credits + local actions (keep oil?) • Project finance – tax equity investor makes sense for solar PV; not thermal side • Local carbon price • Hydro behind the meter • Slightly more experienced consultants. Challenge assumptions
PART III • Why district energy and flexibility? • Preliminary findings • Next steps
Methodology • Define analytic framework • Planning • Financing • Construction • Operation • Apply analytic framework • US universities https://www.abcleg.dk/media/catalog/product/cache/1/image/1200x1200/9df78eab33525d08d6e5fb8d27136e95/0/0/000575_11481982468.5643_1_2.jpg
THEORY: How can DE integrate renewables/operate on market? Figure: http://www.nordicenergy.org/wp-content/uploads/2016/10/Flex4RES-WP2-DH-report.pdf
PRACTICE: DE can integrate renewables/operate on market Figure: http://www.emd.dk/desire/hvidesande/
PRACTICE: How can DE integrate renewables? Figures: http://www.emd.dk/desire/hvidesande/ and https://www.energidataservice.dk
District energy in the North-east 10 universities – 100+ years DE 5 experts 2 ISO/RTO + a few more
Planning • Utilities a hurdle • needs new tariff scheme • Hot water instead of steam • scary • All universities have carbon/energy targets • unclear how to reach them • Hesitance to thermal storages (footprint) • 800-1000 ft2 (~100 m2) – is that a lot? • Becoming a utility is not attractive (wires + sales = utility) • mitigating by owners associations/coops/license limits • Limited understanding within organisation • individual school-structure can be challenging in decision-making • higher management
Financing • Financing as energy efficiency • rating agencies begin to understand this. • tax exempt bonds (heat side) + ”green banks” (Delaware, CT, VT) • RGGI: Price on carbon • Access to finance • some are rich (balance sheet) • others considering alternatives (ESCO/alumni) • standard structures would help (like for PV)
Construction http://gph.is/1KC75Mz
Operation • Maturity of wholesale markets important – actors must know how it’s working • aggregators are by now pretty sophisticated • ISO: Minimum bid size 0.1 MW • Economic dispatch AND environmental dispatch? • some are looking at it – some are buying RECs and PPAs • Demand-side • steam AND electric chillers are common
Operation (cont.) • Grid ”too green” – no incentive to be flexible • now, is it really? • Prices too low – no incentive to be flexible • interesting/worrying • Keeping humans in the loop is important for • security (reasonable) • believing humans are better (manual override - hmmm)
Other findings • Every plant is the best • except it’s not… • myopic views can lead to sub-optimisation • knowledge-sharing is HUGELY important! • Almost no heat systems are integrated with the surroundings • excellent way to waste money and energy • Local opposition ”Don’t cut down the trees for biomass!” • Technical limitations – limited • avoid cycling • new relays needed for exporting to grid (safety)
Next steps • In-depth processing of interviews • 7 states’ regulation and policy • Write paper • Write more papers • Write thesis • Get PhD
District energy in Denmark 5.7 million inhabitants (3.6 with district heating) 31% of final energy consumption RE-based 54% of electricity RE-based* 60% of district heating waste and RE-based* >400 district energy ‘microgrids’ * Yes, biomass included. Let’s save that discussion Map: Danish Energy Agency. Regulation and planning of district heating in Denmark. Copenhagen: 2015.
District heating deployment in the Nordic countries Graph: Sneum DM, Sandberg E, Rosenlund Soysal E, Skytte K, Olsen OJ. Smart regulatory framework conditions for smart energy systems? Incentives for flexibledistrict heating in the Nordic countries 2017. (unpublished primo 2017)
District heating share of heat supply in 2014 FI 46% NO 8% SE 50% DK 51%
EXTRA: Where is DH in traditionalflex definition? System persp; not single-technologypersp. As defined in IEA. The power of transformation. Paris: IEA; 2014. doi:10.1007/BF01532548.
EXTRA: Whycapacitytariffscanbe bad for flexibility Capacity charge: 12 000 EUR/MW/month Example: 10 MW electricboiler, whichpaysto dispatchwhenelectricity spot price is 7 EUR/MWh 12 000 EUR x 10 MW = 120 000 EUR Completelyinfeasible to operate! 10 MW x 3 hours = 30 MWh For comparison 120 000 EUR/30 MWh = 4 000 EUR/MWh Standard house 18 MWh/year = 72 000 EUR/year
Results: CHP + electricboilerdepends on subsidies No subsidies = high LCOH & vice versa
Storage costsare low for DH ELECTRIC Batteriesclosing in on pumpedhydro; not on heat storages THERMAL Same order of magnitude Graphs: Lund H, Østergaard PA, Connolly D, Ridjan I, Mathiesen BV, Hvelplund F, et al. Energy storage and smart energy systems. Int J Sustain Energy Plan Manag 2016;11:3–14. doi:10.5278/ijsepm.2016.11.2. BNEF: https://www.bloomberg.com/news/articles/2017-04-26/the-cheap-energy-revolution-is-here-and-coal-won-t-cut-it
Comparingapples and oranges makes sense in some cases ? Storages are part of the ENERGY system – not just the ELECTRICITY system Images by AbhijitTembhekar from Mumbai, India - Nikon D80 Apple, CC BY 2.0, https://commons.wikimedia.org/w/index.php?curid=7823406 and https://upload.wikimedia.org/wikipedia/commons/7/7b/Orange-Whole-%26-Split.jpg Graph: Lund H, Østergaard PA, Connolly D, Ridjan I, Mathiesen BV, Hvelplund F, et al. Energy storage and smart energy systems. Int J Sustain Energy Plan Manag 2016;11:3–14. doi:10.5278/ijsepm.2016.11.2.