Abandoning peat in a city district heat system with wind power, heat pumps, and heat storage

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Journal Title

Journal ISSN

Volume Title

A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä

Date

2022-11

Major/Subject

Mcode

Degree programme

Language

en

Pages

12
3051-3062

Series

Energy Reports, Volume 8

Abstract

The Finnish Government has established the target of carbon-neutrality by 2035. In Finland, district heating (DH) networks in most cities rely on carbon dioxide (CO2) intensive fuels such as coal and domestic peat. This study assesses the decarbonization of a Finnish city's DH by employing power-to-heat (P2H) technologies, including heat pumps, an electric boiler, and thermal storage together with an ambitious building energy renovation program. This study also aims to use wind power with a calculated fixed price instead of the market price for the electricity consumption of the deployed P2H units to further support electrification and decarbonization of the DH network. Bilateral contract between the wind producer and the DH operator is examined, as new wind power producers receive no subsidies in Finland. The impacts of storage capacity, electricity tax, building-level renovation, and European CO2 emission allowance (EUA) price on the DH's optimal operation and break-even price of heat production were evaluated. The optimization routine minimizes marginal production costs. The optimal scenario eliminated the carbon intensive fuel peat with more affordable heat prices, due to P2H technologies, lower electricity tax, higher EUA prices, and the renovation of buildings. Bilateral electricity contract can bring mutual benefits for the DH company and the wind producer.

Description

Funding Information: The Academy of Finland , through Grant 326346 for profiling funding 5 for Energy Storage, is acknowledged for funding this study. We gratefully acknowledge the building energy renovation data provided by Dr. Tech. Janne Hirvonen from the RenewFIN project of the Academy of Finland. Publisher Copyright: © 2022 The Author(s)

Keywords

CO emission, District heating, Economic analysis, Power-to-heat, Thermal storage, Wind power

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Citation

Javanshir, N, Syri, S, Teräsvirta, A & Olkkonen, V 2022, ' Abandoning peat in a city district heat system with wind power, heat pumps, and heat storage ', Energy Reports, vol. 8, pp. 3051-3062 . https://doi.org/10.1016/j.egyr.2022.02.064