Investment Planning of District heating Systems - PowerPoint PPT Presentation

1 / 16
About This Presentation

Investment Planning of District heating Systems


Flow of losses of DH in the Model. Economic connections of measures ... GAMS - General Arithmetic Modelling System. LP and NLP benefits of investments. Output: ... – PowerPoint PPT presentation

Number of Views:44
Avg rating:3.0/5.0
Slides: 17
Provided by: jane277


Transcript and Presenter's Notes

Title: Investment Planning of District heating Systems

Investment Planning of District heating Systems
  • Content of Presentation
  • Private sector participation (PSP) needed
  • Potential and barriers
  • Three approaches of research
  • Example of results in Poland
  • General about the Model
  • Flow of losses of DH in the Model
  • Economic connections of measures and benefits in
    the Model
  • Example water losses in the Model
  • Time steps in the Model

Private sector participation (PSP) needed
  • International development banks (World Bank,
    EBRD) are not sufficient to finance DH
    rehabilitation even though they are willing to
    increase their portfolio in DH rehabilitation
  • Countries are not willing to provide with
    sovereign guarantees to the international
    development banks
  • Therefore, PSP is necessary in DH system
    rehabilitation in large scale
  • The risks and institutional barriers are still
    substantial for the PSP and,
  • Due to risks, only few companies are on the
    market Dalkia, MMV, E-on, RKS, ..

Potential and Barriers
  • Huge potential
  • Heat is a necessary commodity on the northern
  • 40-50 billion needed for DH rehabilitation in
    Russia, where rehabilitation has hardly begun
  • Existing DH systems collapsing (Moldova)
  • Blocks of flats largely heated by electricity
  • Rehabilitation needs to start in large scale (EU
    accession countries)
  • Rehabilitation needs to continue (new EU
  • but
  • but a lot of barriers
  • Institutional ownership of fixed assets,
    decision making, tariff regulation
  • Market related price distortions, short term
  • Financial business sustainability
  • Social subsidy targeting, affordability
  • Technical outdated, uneconomic

Three Approaches
  • Approach 1
  • Design of a computerized Model for stretegic
    planning of DH system rehabilitation in economies
    in transition
  • Approach 2
  • Analysis of the benefits and investments in the
    completed DH projects. The Model has been
    adjusted according to the materialized
    experiences of the comprehensive DH
    rehabilitation programs of the World Bank in
    Poland, the Baltic Countries and in Bulgaria
  • Approach 3
  • Quantification of the impact of the immaterial
    measures by means of a questionnaire analysis
    (not reviewed here).

Example Results of DH Rehabilitation in Poland
General about the Model
  • Focus
  • Investors point of view
  • Objective
  • Which measures and in which implementation order
    the economic/financial return would be maximized
    during a given period of time?
  • Response
  • Develop a model for the investor to help on
    strategic level
  • Programming tool
  • GAMS - General Arithmetic Modelling System
  • LP and NLP benefits of investments
  • Output
  • Strategic plan of rehabilitation for the given
    period of years
  • Target
  • The Model should give the best estimate of the
    optimal order and quantity of investments for
    rehabilitation of a DH system in the economies in

Flow of Losses in DH
Economic Connections in the Model
Example Water Losses
  • Water consumption level (W) depending on the
    rehabilitation rate (R ) of the water temperature
    controllers of space heating in the consumer
    substations (he) and on the district heating
    network (ne) respectively in eight district
    heating enterprises indexed from b to i

Time Steps of the Model
Thermal Chain
  • Heat production with boilers, CHP and bulk heat
  • DH network with three sizes of pipelines
  • Consumer substation separated with heat metering,
    heat exchangers and the temperature controller at
    space heating circuit
  • Demand side management with thermostatic valves
    and cost allocators

Input data (1)
Input data (2)
Input data (3)
Input data (4)
  • The efficiency of DH has increasd as basis of
  • EA Economic analysis
  • FA Financial analysis
  • LP Linear programming
  • NLP Non-linear programming
Write a Comment
User Comments (0)