Thesis

Modelling District Heating in a Renewable Electricity System

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Abstract

With the decarbonisation of electricity generation, large scale heat pumps are becoming increasingly viable for district heating combined with thermal energy storage, district heating can provide flexibility to the electricity grid by decoupling demand from supply. This thesis examines how district heating with heat pumps and thermal energy storage can integrate with and provide a benefit to an electricity system with predominantly renewable generation. The scope of work comprises three interlinked models underpinned by the same set of meteorology data, fundamentally coupling supply and demand. First, heat load data are surveyed, and an hourly demand profile is simulated. Disaggregation of district heating loads from the national demand is accomplished via segmentation of the building stock to model heat demand at high spatiotemporal resolution. Second, a novel method of pricing hourly electricity in a zero carbon, capital-intensive renewable system with electricity storage is developed and applied to a dispatch simulation to generate hourly electricity prices. Third, a dynamic model of district heating is constructed to simulate the meeting of heat loads with different design configurations using electricity as the energy source. Model predictive control is applied with varying forecast horizons so as to minimise the cost of electricity to meet the heat demand given a time series of hourly prices and consequently optimising the capacity of thermal energy storage. It was found that a thermal energy storage capacity equivalent to 1.3% of annual demand is sufficient to minimise operating costs. Finally, the potential impact of district heating on balancing the electricity system is analysed and an equivalence between thermal and electric storage is examined. While this is highly dependent on annual conditions, it can be as much as 3.5 units of thermal storage for every unit of electrical grid storage on the system. This could potentially reduce the investment in grid storage by £36 billion, underlining the significant financial benefits of thermal storage to the whole system. The research highlights the important potential of district heating to the UK’s energy system strategy.

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UK electricity prices are the topic of lively debate, particularly industrial prices in the context of Brexit and the UK’s Industrial Strategy. This report was written as a contribution to that debate by Professor Michael Grubb and Paul Drummond, Senior Research Associate, at the UCL Institute of Sustainable Resources, with extensive and invaluable contributions on the Italian electricity system by our colleague Elsa Barazza. We benefited from international inputs by Felix Matthes (Öko-Institut, Berlin) and Davide Tabarelli at Nomismaenergia, Bologna and are most grateful to them for providing information and explaining the intricacies of their national electricity pricing systems. We would like to thank everyone who contributed their time and expertise, including through three workshops held to consider and debate the emerging findings. Their involvement was invaluable and some are listed below. However the findings and recommendations in this report cannot be attributed to any one individual or organisation, and the authors are responsible for the views expressed.
Article
Fourth-generation district heating (4GDH) has been used as a label or expression since 2008 to describe a transition path for decarbonization of the district heating sector and was defined in more detail in 2014. During recent years, several papers have been published on a concept called fifth generation district heating and cooling (5GDHC). This article identifies differences and similarities between 4GDH and 5GDHC regarding aims and abilities. The analysis shows that these two are common not only in the overarching aim of decarbonization but that they also share to some extent the five essential abilities first defined for 4GDH. The main driver for 5GDHC has been a strong focus on combined heating and cooling, using a collective network close to ambient temperature levels as common heat source or sink for building-level heat pumps. It is found that the four 5GDHC network configurations are fundamentally different from ten other heat distribution configurations. Thus, 5GDHC can be regarded as a promising technology with its own merits, yet a complementary technology that may coexist in parallel with other 4GDH technologies. However, the term “generation” implies a chronological succession, and the label 5GDHC does not seem compatible with the established labels 1GDH to 4GDH.
Chapter
This chapter provides an extensive survey on the modelling and optimisation of district heating systems (DHSs) focused on the heat distribution network, an energy analysis of unbalanced central heating systems, as well as a comprehensive discussion about pump control in heating stations, analysing the energy efficiency of flow control methods. For this purpose, the major components of a DHS have been described and discussed, and their modelling has briefly reviewed including numerical simulation models for heat sources, end-users, and especially, the distribution network. The main deterministic and heuristic optimisation techniques are briefly explained. A comparative energy analysis is performed on the hot water flow rate adjustment using throttling control valves and variable-speed drives in a district heating plant constructed in Romania. To correlate the pumped flow rate with the heat demand and to ensure the necessary pressure using minimum energy, an automatic device has been designed. Additionally, the performance of a fluid temperature control system using self-adjustable cables and the main plastic materials used for the manufacturing of tubes for heat distribution in buildings are presented, and a comparative analysis of the physical, mechanical, geometric and hydraulic characteristics of the tubes produced both from classical metallic materials and from different plastic materials is performed.
Article
This paper presents a novel dynamic simulation tool able to assess and optimize the energy, environmental and economic performance of standard and innovative district heating/cooling systems. To this aim, several design and operating parameters (e.g.: weather conditions, heat selling price for users, national unitary price of electricity, etc.) are dynamically taken into account. The heating and cooling demands and loads of the buildings to be fed by the network working fluid are dynamically calculated. The system pipeline network is modelled through a suitable plug-flow approach. Fluid temperatures are calculated in each network node. The optimization of several system design and operating parameters is achieved for different objective functions. A suitable analysis is considered for selecting the most convenient urban zones for system application. The whole simulation model is implemented in a suitable computer code written in MatLab. By such tool useful design criteria and feasibility analyses can be obtained. To show the capabilities of the presented simulation tool, a novel case study, referred to a district heating system supplied by an existing thermoelectric power plant, was developed. The conducted analysis is based on system optimizations regarding the number of users, selling heat/electricity prices and system geometric features. As for example, for minimizing the system payback to about 14 year, the optimal number of users and network length are 5×103 and 2.7 km, respectively. In this case the primary energy savings and the avoided carbon dioxide emissions are about 11 GWh/y and 16.1 ktCO2/y, respectively.
Article
The sizing of district energy systems involves a trade-off between reliability and continuity of service, and avoidance of capital and running costs associated with oversizing. Finding the most appropriate sizing requires a thorough understanding of energy demand. However, empirical data necessary to support such an understanding is scarce, and district energy systems are typically oversized. This study uses smart meter data from the largest field trial to analyse residential energy consumption in the UK. It presents graphically the seasonal and daily variations in energy consumption patterns, the weather dependence of energy loads, and peak hourly demand during particularly cold weather conditions. It also explores the diversity effect in residential energy consumption and computes the after diversity maximum demand at different levels of aggregations. Results show that, peak hourly gas consumption was nearly seven times higher than electricity consumption during the cold spells, while diversity reduced gas and electricity maximum demand per dwelling up to 33% and 47%, respectively. This empirical quantitative analysis of energy demand and diversity can support improved design and operation of district energy, and in particular, enable reduced capital and running costs, and an improved understanding of economies of scale for district heating networks.
Article
Seasonal thermal energy storage (TES) is envisioned as a major player in the future district heating (DH) systems where large shares of renewables are being integrated. Therefore, in order to fulfill the seasonal tasks, such storage systems are characterized with large volumes. Yet, the integration of such large-scale storage technologies is not easily planned and realized. There exist numerous challenges e.g. TES type, volume and ground conditions, need to be tackled in order to obtain an optimal planning solution for TES integration. Given their promising applications, the scope of this work is limited to tank and pit thermal energy storage. Accordingly, this contribution firstly discusses the modeling of seasonal TES in finite element tools. Then, it examines the influence of a list of parameters i.e. TES construction type, geometry, volume and DH characteristics, on TES performance. Later, the work develops a methodology for construction techno-economic analysis of such technologies. It is revealed that the tank TES has always better performance than pit, but on the other hand it is always characterized with higher capital cost. As TES volume increases, the performance difference between tank and pit starts to vanish. Further, the DH characteristics play a major role in TES performance. It is depicted that lowering DH temperatures will ultimately lead to lower thermal losses from TES. Another important finding is the applicability of the suggested performance indicator for techno-economic analysis as it relates the technology capital cost to the effective volume of TES. The contribution also investigates the influence of insulation level on TES performance and it is found that for volumes larger than 500,000 m3, there is no major performance difference between the tank or the pit in case of insulation enclosing TES envelope. However, it is also revealed that insulation is needed only and solely to preserve the ground quality when large volumes are realized.
Article
Given the importance of models in complicated problem solving, an inappropriate energy model can lead to inaccurate decisions and poor policy prescriptions. This paper aims at developing a decision support tool with which the selection of appropriate model characteristics can be facilitated for developing countries. Hence, it provides a comparative overview of different ways of energy models characterization and extracts the underlying relationships amongst them. Moreover, evolution of dynamic characteristics of energy models for developing countries is identified according to the previous studies on the developed and developing countries. To do this, it reviews the related literature and follows a systematic comparative approach to achieve its purposes. These findings are helpful in cases where model developers themselves are looking for appropriate characteristics in terms of certain purpose or situation.
Article
Building stock modelling usually deploys representative building archetypes to obtain reliable results of annual energy heating demand and to minimise the associated computational cost. Available methodologies define archetypes considering only the physical characteristics of buildings. Uniform occupancy schedules, which correspond to national averages, are generally used in archetype energy simulations, despite evidence of occupancy schedules which can vary considerably for each building. This paper presents a new methodology to define occupancy-integrated archetypes. The novel feature of these archetype models is the integration of different occupancy schedules within the archetype itself. This allows building stock energy simulations of national population subgroups characterised by specific occupancy profiles to be undertaken. The importance of including occupant-related data in residential archetypes, which is different than the national average, is demonstrated by applying the methodology to the UK national building stock. The resultant occupancy-integrated archetypes are then modelled to obtain the annual final heating energy demand. It is shown that the relative difference between the heating demand of occupancy-integrated archetypes and uniform occupancy archetypes can be up to 30%.
Article
This paper reports a study on how hourly temperature variations of different heat sources influence the seasonal coefficient of performance (SCOP) of heat pumps (HPs) when supplying district heating. The considered heat sources were: groundwater, seawater, air and a combination of the three. The system included HPs, an electric peak load boiler and short-term storage. Linear programming was used to minimize annual electricity consumption of the system. This process also determined the optimum capacities of the HPs using different heat sources. The study was based on data for the area of Copenhagen, Denmark. The results showed that the SCOP of seawater and air HPs, considering heat demand variations, was 11% and 15% lower, respectively, than their arithmetic mean performances. For a combination of heat sources, the optimum proportions of HP capacities were: 63%, 14% and 23% for the groundwater, seawater and air HP, respectively. The SCOP of such system was found to be 3%, 6% and 11% greater than the SCOP of a system using the heat sources individually. The results indicate that a maximum system performance may be achieved for HPs based on a combination of different heat sources.
Article
Optimal operation of district heating (DH) systems usually relies on the forecast of thermal demand profiles of the connected buildings. Depending on the purpose of the analysis, thermal request can be required at various levels, from building level to thermal plant level. In the case of demand response for example, thermal request is necessary at a building level to evaluate its applicability and at a plant level to determine the effects. Thermal request profiles are quite different, depending on the observation point. Total requests are not just the summation of the downstream requests, mainly because of the thermal transients. The heat losses also contributes to modify the curves, although generally in a smaller way. In this work, a multi-level thermal request prediction is proposed. This approach has the aim of evaluating the thermal request in the various sections of DH network with reduced computational resources. This includes a compact model for the prediction of building demand and a network model in order to compose together the requests at the various levels. The application to a portion of the Turin district heating network is proposed. This shows that the network dynamics significantly affects the evolution, especially at peak load.
Article
Variable renewable electricity sources have been shown to reduce wholesale electricity market prices. This is expected to reduce the incentive for investments in new electricity production capacity, and might even make these investments infeasible, if relying only on the income from trade on the current electricity market paradigms. In this paper, a novel approach for quantifying this effect in future energy systems is developed using a holistic energy system approach. The approach is applied to the case of Denmark in 2015, which is part of the Nordic and Baltic wholesale electricity market Nord Pool Spot. A holistic energy system model is created and verified according to both the Danish energy balance and the Nord Pool Spot system price in 2015. Using this verified model, the Nord Pool Spot system price is quantified at increasing amounts of onshore wind power, offshore wind power and photovoltaic in Denmark. It is found that regardless of which variable renewable electricity source is implemented, including a combination of the three, the Nord Pool Spot system price decreases as the amount of energy produced by these sources increases, and this effect occurs immediately as more is introduced.
Article
In this paper we use stochastic polynomial optimization to derive high-performance operating strategies for heating networks with uncertain or variable demand. The heat flow in district heating networks can be regulated by varying the supply temperature, the mass flow rate, or both simultaneously, leading to different operating strategies. The task of choosing the set-points within each strategy that minimize the network losses for a range of demand conditions can be cast as a two-stage stochastic optimization problem with polynomial objective and polynomial constraints. We derive a generalized moment problem (GMP) equivalent to such a two-stage stochastic optimization problem, and describe a hierarchy of moment relaxations approximating the optimal solution of the GMP. Under various network design parameters, we use the method to compute (approximately) optimal strategies when one of, or both, the mass flow rate and supply temperature are varied for a benchmark heat network. We report that the performance of an optimally-parameterized fixed-temperature variable-mass-flow strategy can approach that of a fully variable strategy.
Conference Paper
Modern, decentralised, multi-energy vector districts have great potential to reduce energy consumption and emissions. However, due to the complex nature of these systems, they require intelligent management to maximise their benefit. Therefore, this paper models the energy generation of a district heating plant for the purpose of hourly, operational optimisation. Crucially, non-linear, part-load efficiency curves, and minimum load percentages are included in the energy generation modelling as well as thermal energy storage. Due to the non-linearities, a genetic algorithm, optimisation approach was utilised. The optimisation framework was applied to a case study district with three distinct thermal energy generation sources, a gas CHP, gas boilers, and biomass boilers. The optimisation controlled the load percentage of each technology as well as varying thermal storage capacity to minimise the cost of meeting the heat demand. The study found that compared to the current, rule-based approach, the optimisation achieved a significant cost saving of 12.7% without any thermal storage. As the thermal storage capacity was increased the potential cost saving was also shown to increase proportionally to 22.6% with 1000 kWh of storage.
Article
The aim of this document is to present the topic of operational optimization in District Heating (DH) systems, with special focus on different kinds of thermal energy storage. An optimization solution based on solving multiple Mixed Integer Linear Programming (MILP) problems has been proposed and implemented in the R programming environment. The operational optimization in a DH system, especially if this system is supplied from a combined heat and power (CHP) plant, is a difficult and complicated task. Finding a global financial optimum requires considering long periods of time and including thermal energy storage possibilities into consideration. There are three important solutions for thermal energy storage: hot water tanks, utilization of thermal inertia of the network itself and utilization of thermal inertia of buildings. Each of these solutions has its advantages and disadvantages, and they can be combined to reach the maximum flexibility at lowest cost. However, modeling of operation with all of the thermal energy storage possibilities in place is a complicated task, since they influence the transient behavior of the network in different ways, and affect each other. On the other hand, optimal planning of heat production can be done only if simple and robust simulation models are available. Proposed solution allows simulation of three kinds of thermal energy storage, with their specific transient behaviors and interactions, at the same time keeping the model simple and ready to be used with a MILP solver. An iterative approach has been applied to non-linear phenomena, which allows solving a non-linear problem by multiple MILP optimizations. It has been successfully implemented in the “R” programming environment and tested on a simple example. The results can prove useful for DH system operators in the near future.
Article
For the last decades energy efficiency initiatives have avoided enormous amounts of energy consumption, to the favor of the environment and consumer expenditures. Although there is still a big potential for further energy efficiency improvements it is time to move further and start preparing the whole energy system for the challenge of oversupply from intermittent renewable energy sources, particularly in the power sector. In 2015 the maximum one-hour power oversupply from wind turbines alone in Denmark happened the 26th of June, peaking at around 900 MW and the oversupply over a 15-hour period was 10 GWh. Known solutions to make use of oversupply in the power sector are power export, energy storage and halting the power generation. The power export needs to rely on sufficient capacity at local interconnectors, power demand in the importing country and there is an economic gain in the export. Energy storages can range from storing of power in batteries, pumped hydro, synthetic fuels to fuel displacing at other energy sectors. The last option is stopping the turbines, which should be avoided. The optimum energy storage would have large capacity, fast charging, high recovery efficiency and low cost. Scoring high on all criteria’s can be difficult when focusing on a single energy sector. By widening the perspective and start taking advantages of synergies between the energy sectors there is a possibility to score high on all three criteria’s. In this paper the potential of utilizing synergies between the power and heat sectors will be explored by considering the projections for the Danish energy system in 2025. The result of the analysis shows the optimum energy storage of renewable power is achieved through fuel displacement in the heating sector in combination with utility sized heat pumps, electric boilers and large thermal storages.
Article
This review article presents a description of contemporary developments and findings related to the different elements needed in future 4th generation district heating systems (4GDH). Unlike the first three generations of district heating, the development of 4GDH involves meeting the challenge of more energy efficient buildings as well as the integration of district heating into a future smart energy system based on renewable energy sources. Following a review of recent 4GDH research, the article quantifies the costs and benefits of 4GDH in future sustainable energy systems. Costs involve an upgrade of heating systems and of the operation of the distribution grids, while benefits are lower grid losses, a better utilization of low-temperature heat sources and improved efficiency in the production compared to previous district heating systems. It is quantified how benefits exceed costs by a safe margin with the benefits of systems integration being the most important.
Article
By analysing four types of district heating plants, ranging from fully integrated with an electricity system (combined heat and power and electric boiler) to no integration with an electricity system (wood chip boiler), operation and investment incentives for flexible district heating plants under current Danish, Finnish, Norwegian and Swedish framework conditions have been investigated. Hourly-based operation optimisation over 20 years using the modelling software energyPRO showed that the largest investment incentive in Finland, Norway and Sweden was for combined heat and power with an electric boiler. This is largely driven by subsidies. Conversely, the less-subsidised Danish case incentivised investment in wood chip boilers. Untaxed biomass is the major energy source in all scenarios, while electricity use is limited. Capacity component-based tariffs can eliminate operation of electric boilers, while less costly energy component-based tariffs can increase the operation of electric boilers. Heat storage was found to be a no-regrets solution for optimising operation and lowering costs in all cases.
Article
Recent improvements in low-temperature heat-to-power (LTHtP) technologies have led to an increase in efficiency at lower temperatures and lower cost. LTHtP has so far not been used in district heating. The aim of the study is to establish under what conditions the use of existing LTHtP technology is technically and economically feasible using a district heating system as the heat source. The organic Rankine cycle (ORC) is identified as the most interesting LTHtP technology, due to its high relative efficiency and the commercial availability of devices operating at temperatures in the district heating operating range. The levelised cost of electricity of several ORC devices is calculated for temperatures found in district heating, assuming a zero cost of heat. A case study from Sweden is used to calculate the levelised cost of electricity, the net present value and payback period, based on income from the electricity produced, excluding taxes. Hourly spot market electricity prices from 2017 are used, as well as forecast scenarios for 2020, 2030 and 2040. A sensitivity study tests the importance of electricity price, cost of heat and capital/installation cost. Based on the case study, the best levelised cost of electricity achieved was 26.5 EUR/MWh, with a payback period greater than 30 years. Under current Swedish market conditions, the ORC does not appear to be economically feasible for use in district heating, but the net present value and payback period may be significantly more attractive under other countries’ market conditions or with reduced capital costs. For a positive net present value in the Swedish market the capital cost should be reduced to 1.7 EUR/W installed, or the average electricity price should be at least 35.2 EUR/MWh, if the cost of heat is zero. The cost of heat is an important factor in these calculations and should be developed further in future work.
Article
Renewable energy generation depresses electricity spot prices, which is often used as argument to justify incentives provided to renewables. In the so-called “merit-order effect”, renewable power reduces the load available for conventional power and displaces higher marginal cost generation out of the market. In this study, we estimate the value of the “merit-order effect” due to wind power generation in the Iberian market, in the period between 1st January 2008 and 31st October 2016. This value, representing consumers’ potential cost savings, is compared with the direct costs of the financial incentives in Portugal and in Spain. The accumulated “merit-order effect” amount is estimated to be 26.1 billion €, whilst the total values for the financial incentives reported is 23.9 billion €. The value of the “merit-order effect” explains the existing lower returns by conventional generation and might have additional impacts on future RES projects, subject to normal electricity market risks.
Conference Paper
A series of transformations in heat and cold distribution systems is undergoing with the introduction of 4th generation District Heating and Cooling (DHC) technologies. At the center of this process is the integration of renewable technologies, such as solar heating, geothermal systems with large heat pumps and cooling from natural water formations. In this context, smart DHC systems are designed and early prototype implementations are demonstrated in sites across the world. The purpose of this paper is to trace the latest advancements in existing DHC networks and to identify early smart city technologies incorporated. A summary of basic components and characteristics is attempted with focus on thermal storage technologies coupled with renewable heating and cooling.
Article
This paper compares different strategies to transform the heating sector into a future 100% renewable energy solution. It focuses on the consequences for infrastructures in terms of grids and storage across the electricity, gas and heating sectors. The hypothesis is that these consequences are rarely taken into proper consideration, even though the costs are significant and differ substantially between the alternative pathways. While the smart grid scenarios are based on electricity as an energy carrier, the “smart energy systems” approach is based on a cross-sectoral use of all grids. Using Denmark as a case, this paper shows how the current gas and district heating grids each have twice the capacity of the electricity distribution grid. Moreover, the existing gas and thermal storage capacities are substantially higher and the additional future capacities are more affordable than within the electricity sector. The conclusion is that the “smart grid” pathway requires a 2–4 times expansion of the electricity grid and significant investments in electricity storage capacities, while the “smart energy systems” pathway can be implemented with relatively few investments in affordable minor expansions of existing grids and storage capacities.