Technical features for heat trade in distributed energy generation

    Research output: Book/ReportReport

    Abstract

    Liberated heat market works mainly like a liberated electric market in Nordic countries with the exception that heat market works within a local district heating network. There are producers, customers, a network operator and a system operator as there exist in the electric market. Physical actors are the traditional large scale producers that sell heat to customers connected to the district heating network, and the end users, that would also be small-scale producers using a micro-CHP or a boiler. They would buy heat from other producers or sell heat to customers through the network. The liberated heat energy market will also need the transmission-network-company that takes care of the temperatures, pressures and hydraulic balance of the heating network. A balance-sheet-operator is also needed to coordinate the heat contracts between producers and customers as well as to take care of reserve capacity, spot and future markets and billing. The requirements for the district heating network design in the heat trading context are an aspect that still requires further attention. Our simulations showed that temperature changes were occasionally quite rapid in some parts of the network. They were caused by stagnation of flow in some loops of the network, where flows come from different directions. Small producers seem to bring more time-varying factors into the system. This might lead to a new district heating network design approach where temperature variations can be minimized. The four different physical connection types for the small scale producer in the building side were studied and the recommended connection version was found. The recommended connection version is type 3, in which the small scale producer is connected to the DH-network via heat exchanger. This connection has advantages compared to the other versions: it does not bring any changes to the standard modular substation unit in buildings, it is a safe solution to the user (no water leaks) and to the DH network (no gas leak problems), it is easy to control, it is suitable for new installations and renovations, and maintenance of the CHP unit does not cause any problems to the DH operation. In general, we found out that the physical connection will need standardized rules, in which the quality and the performance of the connection unit are unambiguously defined, same way as the current Finnish Energy Industries/District Heating Department's (earlier Finnish District Heating Association) guidelines do for the district heating substations. However, these new building level guidelines of the small scale producer were not defined in this study. Real option analysis is adopted to evaluate the risks of investment when electricity price and heat price are uncertain.
    Original languageEnglish
    Place of PublicationEspoo
    PublisherVTT Technical Research Centre of Finland
    Number of pages111
    ISBN (Electronic)951-38-6732-3
    ISBN (Print)951-38-6731-5
    Publication statusPublished - 2005
    MoE publication typeNot Eligible

    Publication series

    SeriesVTT Tiedotteita - Meddelanden - Research Notes
    Number2305
    ISSN1235-0605

    Fingerprint

    District heating
    Hot Temperature
    Electric power transmission networks
    Temperature
    Heat exchangers
    Boilers
    Industry
    Electricity
    Hydraulics
    Heating
    Gases
    Water

    Keywords

    • energy production
    • heat markets
    • heat trade
    • district heating
    • combined heat and power
    • CHP
    • distributed energy
    • simulation
    • network operators
    • district heating networks

    Cite this

    Sipilä, K., Ikäheimo, J., Forsström, J., Shemeikka, J., Klobut, K., Nystedt, Å., & Jahn, J. (2005). Technical features for heat trade in distributed energy generation. Espoo: VTT Technical Research Centre of Finland. VTT Tiedotteita - Meddelanden - Research Notes, No. 2305
    Sipilä, Kari ; Ikäheimo, Jussi ; Forsström, Juha ; Shemeikka, Jari ; Klobut, Krzysztof ; Nystedt, Åsa ; Jahn, Jenni. / Technical features for heat trade in distributed energy generation. Espoo : VTT Technical Research Centre of Finland, 2005. 111 p. (VTT Tiedotteita - Meddelanden - Research Notes; No. 2305).
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    abstract = "Liberated heat market works mainly like a liberated electric market in Nordic countries with the exception that heat market works within a local district heating network. There are producers, customers, a network operator and a system operator as there exist in the electric market. Physical actors are the traditional large scale producers that sell heat to customers connected to the district heating network, and the end users, that would also be small-scale producers using a micro-CHP or a boiler. They would buy heat from other producers or sell heat to customers through the network. The liberated heat energy market will also need the transmission-network-company that takes care of the temperatures, pressures and hydraulic balance of the heating network. A balance-sheet-operator is also needed to coordinate the heat contracts between producers and customers as well as to take care of reserve capacity, spot and future markets and billing. The requirements for the district heating network design in the heat trading context are an aspect that still requires further attention. Our simulations showed that temperature changes were occasionally quite rapid in some parts of the network. They were caused by stagnation of flow in some loops of the network, where flows come from different directions. Small producers seem to bring more time-varying factors into the system. This might lead to a new district heating network design approach where temperature variations can be minimized. The four different physical connection types for the small scale producer in the building side were studied and the recommended connection version was found. The recommended connection version is type 3, in which the small scale producer is connected to the DH-network via heat exchanger. This connection has advantages compared to the other versions: it does not bring any changes to the standard modular substation unit in buildings, it is a safe solution to the user (no water leaks) and to the DH network (no gas leak problems), it is easy to control, it is suitable for new installations and renovations, and maintenance of the CHP unit does not cause any problems to the DH operation. In general, we found out that the physical connection will need standardized rules, in which the quality and the performance of the connection unit are unambiguously defined, same way as the current Finnish Energy Industries/District Heating Department's (earlier Finnish District Heating Association) guidelines do for the district heating substations. However, these new building level guidelines of the small scale producer were not defined in this study. Real option analysis is adopted to evaluate the risks of investment when electricity price and heat price are uncertain.",
    keywords = "energy production, heat markets, heat trade, district heating, combined heat and power, CHP, distributed energy, simulation, network operators, district heating networks",
    author = "Kari Sipil{\"a} and Jussi Ik{\"a}heimo and Juha Forsstr{\"o}m and Jari Shemeikka and Krzysztof Klobut and {\AA}sa Nystedt and Jenni Jahn",
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    Sipilä, K, Ikäheimo, J, Forsström, J, Shemeikka, J, Klobut, K, Nystedt, Å & Jahn, J 2005, Technical features for heat trade in distributed energy generation. VTT Tiedotteita - Meddelanden - Research Notes, no. 2305, VTT Technical Research Centre of Finland, Espoo.

    Technical features for heat trade in distributed energy generation. / Sipilä, Kari; Ikäheimo, Jussi; Forsström, Juha; Shemeikka, Jari; Klobut, Krzysztof; Nystedt, Åsa; Jahn, Jenni.

    Espoo : VTT Technical Research Centre of Finland, 2005. 111 p. (VTT Tiedotteita - Meddelanden - Research Notes; No. 2305).

    Research output: Book/ReportReport

    TY - BOOK

    T1 - Technical features for heat trade in distributed energy generation

    AU - Sipilä, Kari

    AU - Ikäheimo, Jussi

    AU - Forsström, Juha

    AU - Shemeikka, Jari

    AU - Klobut, Krzysztof

    AU - Nystedt, Åsa

    AU - Jahn, Jenni

    N1 - Project: C3SU00812 Project: R3SU00582

    PY - 2005

    Y1 - 2005

    N2 - Liberated heat market works mainly like a liberated electric market in Nordic countries with the exception that heat market works within a local district heating network. There are producers, customers, a network operator and a system operator as there exist in the electric market. Physical actors are the traditional large scale producers that sell heat to customers connected to the district heating network, and the end users, that would also be small-scale producers using a micro-CHP or a boiler. They would buy heat from other producers or sell heat to customers through the network. The liberated heat energy market will also need the transmission-network-company that takes care of the temperatures, pressures and hydraulic balance of the heating network. A balance-sheet-operator is also needed to coordinate the heat contracts between producers and customers as well as to take care of reserve capacity, spot and future markets and billing. The requirements for the district heating network design in the heat trading context are an aspect that still requires further attention. Our simulations showed that temperature changes were occasionally quite rapid in some parts of the network. They were caused by stagnation of flow in some loops of the network, where flows come from different directions. Small producers seem to bring more time-varying factors into the system. This might lead to a new district heating network design approach where temperature variations can be minimized. The four different physical connection types for the small scale producer in the building side were studied and the recommended connection version was found. The recommended connection version is type 3, in which the small scale producer is connected to the DH-network via heat exchanger. This connection has advantages compared to the other versions: it does not bring any changes to the standard modular substation unit in buildings, it is a safe solution to the user (no water leaks) and to the DH network (no gas leak problems), it is easy to control, it is suitable for new installations and renovations, and maintenance of the CHP unit does not cause any problems to the DH operation. In general, we found out that the physical connection will need standardized rules, in which the quality and the performance of the connection unit are unambiguously defined, same way as the current Finnish Energy Industries/District Heating Department's (earlier Finnish District Heating Association) guidelines do for the district heating substations. However, these new building level guidelines of the small scale producer were not defined in this study. Real option analysis is adopted to evaluate the risks of investment when electricity price and heat price are uncertain.

    AB - Liberated heat market works mainly like a liberated electric market in Nordic countries with the exception that heat market works within a local district heating network. There are producers, customers, a network operator and a system operator as there exist in the electric market. Physical actors are the traditional large scale producers that sell heat to customers connected to the district heating network, and the end users, that would also be small-scale producers using a micro-CHP or a boiler. They would buy heat from other producers or sell heat to customers through the network. The liberated heat energy market will also need the transmission-network-company that takes care of the temperatures, pressures and hydraulic balance of the heating network. A balance-sheet-operator is also needed to coordinate the heat contracts between producers and customers as well as to take care of reserve capacity, spot and future markets and billing. The requirements for the district heating network design in the heat trading context are an aspect that still requires further attention. Our simulations showed that temperature changes were occasionally quite rapid in some parts of the network. They were caused by stagnation of flow in some loops of the network, where flows come from different directions. Small producers seem to bring more time-varying factors into the system. This might lead to a new district heating network design approach where temperature variations can be minimized. The four different physical connection types for the small scale producer in the building side were studied and the recommended connection version was found. The recommended connection version is type 3, in which the small scale producer is connected to the DH-network via heat exchanger. This connection has advantages compared to the other versions: it does not bring any changes to the standard modular substation unit in buildings, it is a safe solution to the user (no water leaks) and to the DH network (no gas leak problems), it is easy to control, it is suitable for new installations and renovations, and maintenance of the CHP unit does not cause any problems to the DH operation. In general, we found out that the physical connection will need standardized rules, in which the quality and the performance of the connection unit are unambiguously defined, same way as the current Finnish Energy Industries/District Heating Department's (earlier Finnish District Heating Association) guidelines do for the district heating substations. However, these new building level guidelines of the small scale producer were not defined in this study. Real option analysis is adopted to evaluate the risks of investment when electricity price and heat price are uncertain.

    KW - energy production

    KW - heat markets

    KW - heat trade

    KW - district heating

    KW - combined heat and power

    KW - CHP

    KW - distributed energy

    KW - simulation

    KW - network operators

    KW - district heating networks

    M3 - Report

    SN - 951-38-6731-5

    T3 - VTT Tiedotteita - Meddelanden - Research Notes

    BT - Technical features for heat trade in distributed energy generation

    PB - VTT Technical Research Centre of Finland

    CY - Espoo

    ER -

    Sipilä K, Ikäheimo J, Forsström J, Shemeikka J, Klobut K, Nystedt Å et al. Technical features for heat trade in distributed energy generation. Espoo: VTT Technical Research Centre of Finland, 2005. 111 p. (VTT Tiedotteita - Meddelanden - Research Notes; No. 2305).