Investments in Nuclear Heating in Helsinki Metropolitan Area During Volatile Energy Markets

Esa Pursiheimo; Tomi J. Lindroos; Ville Tulkki

Investments in Nuclear Heating in Helsinki Metropolitan Area During Volatile Energy Markets

Esa Pursiheimo^*
, Tomi J. Lindroos
, Ville Tulkki

^*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceeding › Conference article in proceedings › Scientific › peer-review

Abstract

The commitment to the decarbonisation of the district heating (DH) system in Helsinki Metropolitan area requires investments in carbon neutral DH capacity in cities of Helsinki, Espoo and Vantaa, and poses an opportunity for small modular reactor (SMR) based DH production. In this study, investments in SMR heatonly units and SMR combined heat and power (CHP) units are examined under varying natural gas and electricity market price scenarios. Energy system optimisation model for Metropolitan area is used in order to obtain investment levels and total annual costs for comparison purposes. The results of investment analysis indicate that SMR CHP units become profitable when annual average electricity market price reaches level of 70 €/MWh. The annual average production costs of district heating (€/MWh) vary significantly depending on used price and investment scenarios. In the case of SMR CHP investments, the annual average DH productioncost varies up to 24 €/MWh depending on price scenario, whereas only 5 €/MWh with heat only reactors. The results indicate that investments in SMR CHP units provide flexibility and cost benefits under high electricity prices, but SMR heat-only units provide a more stable option for the DH system.

Original language	English
Title of host publication	Nuclear Science and Technology Symposium (SYP) Proceedings
Publisher	Finnish Nuclear Society
Number of pages	4
Publication status	Published - Nov 2022
MoE publication type	Not Eligible
Event	Nuclear Science and Technology Symposium, SYP2022 - Paasitorni Congress Center, Helsinki, Finland Duration: 1 Nov 2022 → 2 Nov 2022

Conference

Conference	Nuclear Science and Technology Symposium, SYP2022
Abbreviated title	SYP 2022
Country/Territory	Finland
City	Helsinki
Period	1/11/22 → 2/11/22

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Cite this

@inproceedings{5d6797b9a90d49359d461e205bff009a,

title = "Investments in Nuclear Heating in Helsinki Metropolitan Area During Volatile Energy Markets",

abstract = "The commitment to the decarbonisation of the district heating (DH) system in Helsinki Metropolitan area requires investments in carbon neutral DH capacity in cities of Helsinki, Espoo and Vantaa, and poses an opportunity for small modular reactor (SMR) based DH production. In this study, investments in SMR heatonly units and SMR combined heat and power (CHP) units are examined under varying natural gas and electricity market price scenarios. Energy system optimisation model for Metropolitan area is used in order to obtain investment levels and total annual costs for comparison purposes. The results of investment analysis indicate that SMR CHP units become profitable when annual average electricity market price reaches level of 70 €/MWh. The annual average production costs of district heating (€/MWh) vary significantly depending on used price and investment scenarios. In the case of SMR CHP investments, the annual average DH productioncost varies up to 24 €/MWh depending on price scenario, whereas only 5 €/MWh with heat only reactors. The results indicate that investments in SMR CHP units provide flexibility and cost benefits under high electricity prices, but SMR heat-only units provide a more stable option for the DH system.",

author = "Esa Pursiheimo and Lindroos, \{Tomi J.\} and Ville Tulkki",

year = "2022",

month = nov,

language = "English",

booktitle = "Nuclear Science and Technology Symposium (SYP) Proceedings",

publisher = "Finnish Nuclear Society",

address = "Finland",

note = "Nuclear Science and Technology Symposium, SYP2022, SYP 2022 ; Conference date: 01-11-2022 Through 02-11-2022",

}

Pursiheimo, E , Lindroos, TJ & Tulkki, V 2022, Investments in Nuclear Heating in Helsinki Metropolitan Area During Volatile Energy Markets. in Nuclear Science and Technology Symposium (SYP) Proceedings. Finnish Nuclear Society, Nuclear Science and Technology Symposium, SYP2022, Helsinki, Finland, 1/11/22. <https://ats-fns.fi/images/files/2022/syp2022/papers/esa_pursiheimo_paper.pdf>

TY - GEN

T1 - Investments in Nuclear Heating in Helsinki Metropolitan Area During Volatile Energy Markets

AU - Pursiheimo, Esa

AU - Lindroos, Tomi J.

AU - Tulkki, Ville

PY - 2022/11

Y1 - 2022/11

N2 - The commitment to the decarbonisation of the district heating (DH) system in Helsinki Metropolitan area requires investments in carbon neutral DH capacity in cities of Helsinki, Espoo and Vantaa, and poses an opportunity for small modular reactor (SMR) based DH production. In this study, investments in SMR heatonly units and SMR combined heat and power (CHP) units are examined under varying natural gas and electricity market price scenarios. Energy system optimisation model for Metropolitan area is used in order to obtain investment levels and total annual costs for comparison purposes. The results of investment analysis indicate that SMR CHP units become profitable when annual average electricity market price reaches level of 70 €/MWh. The annual average production costs of district heating (€/MWh) vary significantly depending on used price and investment scenarios. In the case of SMR CHP investments, the annual average DH productioncost varies up to 24 €/MWh depending on price scenario, whereas only 5 €/MWh with heat only reactors. The results indicate that investments in SMR CHP units provide flexibility and cost benefits under high electricity prices, but SMR heat-only units provide a more stable option for the DH system.

AB - The commitment to the decarbonisation of the district heating (DH) system in Helsinki Metropolitan area requires investments in carbon neutral DH capacity in cities of Helsinki, Espoo and Vantaa, and poses an opportunity for small modular reactor (SMR) based DH production. In this study, investments in SMR heatonly units and SMR combined heat and power (CHP) units are examined under varying natural gas and electricity market price scenarios. Energy system optimisation model for Metropolitan area is used in order to obtain investment levels and total annual costs for comparison purposes. The results of investment analysis indicate that SMR CHP units become profitable when annual average electricity market price reaches level of 70 €/MWh. The annual average production costs of district heating (€/MWh) vary significantly depending on used price and investment scenarios. In the case of SMR CHP investments, the annual average DH productioncost varies up to 24 €/MWh depending on price scenario, whereas only 5 €/MWh with heat only reactors. The results indicate that investments in SMR CHP units provide flexibility and cost benefits under high electricity prices, but SMR heat-only units provide a more stable option for the DH system.

UR - https://ats-fns.fi/images/files/2022/syp2022/presentations/esa_pursiheimo_investments_in_nuclear_heating_in%20Helsinki_metropolitan_area.pdf

M3 - Conference article in proceedings

BT - Nuclear Science and Technology Symposium (SYP) Proceedings

PB - Finnish Nuclear Society

T2 - Nuclear Science and Technology Symposium, SYP2022

Y2 - 1 November 2022 through 2 November 2022

ER -

Investments in Nuclear Heating in Helsinki Metropolitan Area During Volatile Energy Markets

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