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District heating cost fluctuation caused by price model shift
Mälardalen University, School of Business, Society and Engineering, Future Energy Center. (Research school REESBE)ORCID iD: 0000-0002-4720-548X
Mälardalen University, School of Business, Society and Engineering, Future Energy Center.ORCID iD: 0000-0003-4589-7045
Mälardalen University, School of Business, Society and Engineering, Future Energy Center.ORCID iD: 0000-0002-6279-4446
2017 (English)In: Applied Energy, ISSN 0306-2619, E-ISSN 1872-9118, Vol. 194, 715-724 p.Article in journal (Refereed) Published
Abstract [en]

District heating companies are facing multiple challenges nowadays, including increased investment and maintenance cost and critique from customers regarding opaque price model. Hence there is an urgent need to develop new price models. In this paper, a survey was carried out and identified four basic components in the price model. Three price models that represent the current situation and future trend have been extracted from the survey as well. Based on those price models, investigation was performed to study the impacts of different components in price models on customers’ cost. The result shows that customers with flatter consumption profiles can benefit from the price model that has a higher share of load demand component and use consumers’ real-time consumption data for charging. On the contrary, when a price model that has a higher share of energy component is adopted, customers with flatter consumption profiles may experience an increase in the cost.  

Place, publisher, year, edition, pages
2017. Vol. 194, 715-724 p.
Keyword [en]
District heating, Price model, Cost flucturation, Restructured model
National Category
Energy Systems
Research subject
Energy- and Environmental Engineering
Identifiers
URN: urn:nbn:se:mdh:diva-33958DOI: 10.1016/j.apenergy.2016.09.073ISI: 000399623600066OAI: oai:DiVA.org:mdh-33958DiVA: diva2:1049523
Funder
Knowledge Foundation
Available from: 2016-11-24 Created: 2016-11-24 Last updated: 2017-05-19Bibliographically approved
In thesis
1. Restructured district heating price models and their impact on district heating users
Open this publication in new window or tab >>Restructured district heating price models and their impact on district heating users
2017 (English)Licentiate thesis, comprehensive summary (Other academic)
Abstract [en]

District heating (DH) is considered to be an efficient, environmentally friendly and cost-effective method for providing heat to buildings, since electricity is usually co-generated in biomass fuelled combined heat and power (CHP) plants. This gives it an important role in the mitigation of climate change. Swedish district heating companies are currently facing multiple challenges, and are in urgent need of new price models to increase transparency and maintain their competitiveness.

This thesis describes a survey carried out to understand the structure of the present price models and subsequently proposes and compares two restructured price models with the most commonly used price model. This work also investigates the impact of restructured price models on users who would encounter a significant cost increase if the restructured price models were to be introduced. The district heating costs of different price models are compared with three alternative technical solutions.

The results show that price models based on the consumption pattern of users can reflect district heating companies’ cost structure. Meanwhile, adopting a pricing strategy based on users’ consumption patterns increased the incentives to reduce the peak load.

Consequently, users with high load factor (flat consecutive load curve) were able to reduce costs whereas users with low load factor (steep consecutive load curve) faced possible cost increases, when the load demand cost was changed to daily or hourly peak demand based methods. Further, the most economically preferable option for the invested district heating user was to combine district heating with direct electrical heating or with a ground source heat pump.

Abstract [sv]

Fjärrvärme anses som ett effektivt, miljövänligt och kostnadseffektivt sätt för att leverera värme eftersom kraftvärme blir vanligare i fjärrvärmesystem, där elektricitet produceras tillsammans med värme. Den spelar en viktig roll i att begränsa klimatförändringen. Svenska fjärrvärme företag står inför flera utmaningar nu för tiden, och är i akut behov av nya prismodeller för att öka öppenheten och behålla konkurrenskraften.

I denna avhandling, genomfördes en undersökning för att ta reda på strukturen av de nuvarande prismodellerna. Därefter föreslogs två omstrukturerade prismodeller, vars påverkan på kostnaden av fjärrvärme konsument analyserades jämför med den nuvarande modellen.

Detta arbete undersökte också effekten av omstrukturerade prismodeller på konsument som skulle drabbas på signifikant kostnadsökning i samband med införande prismodeller. Kostnaden av fjärrvärme under olika prismodeller har också jämförts med tre olika tekniska lösningar.

Resultatet visade att prismodeller som baserar sig på konsuments förbrukningsprofil kunde återspegla fjärrvärme företagens kostnadsstruktur; Samtidigt medförde prissättningsstrategi baserad på användarens förbrukningsprofil högre incitament för att minska spetseffekt.

Följaktligen kommer att konsumenter med stabila konsumtionsprofiler att spara kostnader, medan konsumenter med spetsiga konsumtionsprofiler kommer att drabbas av kostnadsökning. Och för den investerade fjärrvärme konsument, den ekonomiska bättre val var att kombinera fjärrvärme med elpanna eller bergvärmepump.

Place, publisher, year, edition, pages
Västerås: Malardalen University, 2017
Series
Mälardalen University Press Licentiate Theses, ISSN 1651-9256 ; 251
Keyword
district heating, restructured price model, price model survey, pricing strategy, consumption profile, consumption pattern, alternative cost
National Category
Energy Systems
Research subject
Energy- and Environmental Engineering
Identifiers
urn:nbn:se:mdh:diva-34779 (URN)978-91-7485-311-7 (ISBN)
Presentation
2017-03-16, Case, Mälardalens högskola, Västerås, 13:00 (English)
Opponent
Supervisors
Funder
Knowledge Foundation
Available from: 2017-02-07 Created: 2017-02-03 Last updated: 2017-03-08Bibliographically approved

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