• Energy Research

Abstract None of the EU directives on liberalisation of the electricity and gas markets are considering the district heating systems, although the district heating networks offer the possibility of competition between natural gas and a range of other fuels on the market for space heating. Cogeneration of electricity and heat for industrial processes or district heating is a technology option for increased energy efficiency and thus reduction of CO2 emissions. In the mid-1990s less than 10% of the electricity generation in the European Union was combined production with significant variations among Member States. These variations are explained by different national legislation and relative power of institutions, rather than difference in industrial structure, climate or urban physical structure. The ‘single energy carrier’ directives have provisions that support the development of combined heat and power (CHP), but they do not support the development and expansion of the district heating infrastructure. The article is partly based on a contribution to the Shared Analysis Project for the European Commission DG Energy, concerning the penetration of CHP, energy saving, and renewables as instruments to meet the targets of the Kyoto Protocol within the liberalised European energy market. The quantitative and legal differences of the heat markets in selected Member States are described, and the consequences of the directives are discussed. Finally, we summarise the tasks for a European policy concerning the future regulation of district heating networks for CHP, emphasising the need for rules for a fair competition between natural gas and district heating networks.

Abstract Denmark, east and west of the Great Belt are bidding areas with separate hourly area prices for the Nord Pool power exchange, covering four Nordic countries and parts of Germany. The share of wind power has now increased to 25% on an annual basis in western Denmark. This has a significant impact not only on the electricity wholesale prices, but also on the development of the market. Hourly market data are available from the website of Danish TSO from 1999. In this paper these data are analysed for the period 2004–2010. Electricity generators and customers may respond to hourly price variations, which can improve market efficiency, and a welfare gain is obtained. An important limitation for demand response is events of several consecutive hours with extreme values. The analysis in this paper is a summary and update of some of the issues covered by the EU RESPOND project. It shows that extreme events were few, and the current infrastructure and market organisation have been able to handle the amount of wind power installed so far. This recommends that geographical bidding area for the wholesale electricity market reflects external transmission constraints caused by wind power.

The Energy Flow Optimization Model (EFOM) is the supply part of the energy model complex of the Commission of the European Communities which has been used for a number of studies during the last decade. In this paper the economic interpretation of the model results is discussed on the basis of examples from recent studies using an extension of the model that includes emission abatement techniques and constraints on emissions of pollutants, emphasizing the modelling of the electricity system with combined heat and power.

Abstract Modelling of a power system with combined heat and power (CHP) is analysed from the point of view of a utility or public authority with responsibility for a large regional or national power grid, or an international organization with energy policy responsibilities. The examples of existing models that are most used and consolidated are short-period models used by utilities for weekly operation and long-term capacity planning. There are several examples of models at regional or national level that are used by national authorities or international organizations; these are typically annual models using a load duration concept to describe load variations. There are no examples of models in operation that integrate the urban infrastructure of hot water transmission mains and distribution grids and power system models.

Abstract Fusion is one of the technologies that may contribute to a future, low carbon, global energy supply system. In this article we investigate the role that it may play under different scenarios. The global energy model ETM (originally EFDA TIMES Model) has been used to analyse the participation of fusion technologies in the global electricity system in the long term. Results show that fusion technologies penetration is higher in scenarios with stricter CO2 emissions reduction targets. In addition, investment costs and discount rates of fusion technologies are key factors for fusion implementation. Finally, the main competitors for fusion in future are Carbon Capture and Storage and fission technologies.

Western Denmark is a separate bidding area in the North-Western European power market, Nord Pool. Wind power now exceeds 50% of production annually in Western Denmark. Hourly market data from 1999 onwards are publicly available from the Danish TSO. In this paper, we analyse these data for 2009–2021. Until the energy crisis began in 2021, the Nordic power market has shown relatively stable prices. While extreme events are moderately increasing, the value factor of wind is stable. Thus, the current infrastructure – flexible power plants, interconnectors and electrification of district heating – and market organisation can manage the amount of wind power installed. In other words: 2009–2021 show a well-functioning market economy of dispatch, operating on top of a planned economy of investment.

Abstract The competitiveness of nuclear power in a power system with a substantial amount of coal-fired combined heat and power (CHP) is discussed using the expectedstructure of the Danish power system at the beginning of the next century as an example. The system efficiencies for CHP production are analysed, the structure of two simulation models is described, and the net savings of each marginal nuclear unit are calculated. The results are presented as probability distributions of the net savings taking into account the uncertainties of selected parameters. The method may be used for other very capital intensive power producing technologies.

The potential scale of carbon dioxide capture and storage (CCS) under long-term decarbonisation scenarios means that analysis on the contribution of large international CO2 storage reservoirs is critical. This paper compares the potentially key role of CCS within cost-optimizing energy systems modelling at the national level (ensuring country-specific technical, economic and policy detail), and the regional level (ensuring transboundary electricity and CO2 trade). Analysis at alternate model scales investigates the full range of drivers on the feasibility and trade-offs in using the Utsira formation as a common North Sea CO2 storage resource. A robust finding is that low carbon electricity is a primary decarbonisation pathway and that CCS plays a key role (32–40%) within this portfolio. This paper confirms that the overall driver of the amount of CCS utilized is the climate policy, with by 2050 a total of 475–570 MtCO2 captured and stored (of which 110–120 MtCO2 is stored in Utsira) under an 80% CO2 reduction target. Modelled country differences are much larger due to specific national policies and to regional (EU) commodity trading. From 2030 onwards, Utsira plays a key role within the CO2 storage cost curve, with the Netherlands and the UK being the largest contributors, followed by transboundary flows of CO2 from other countries. However, overall regional CCS flows may be larger (for example under low fossil fuel prices) than the estimated (and uncertain) maximum annual injection rates into Utsira which could potentially represent a significant constraint.

Abstract A cost minimization model for supply of starch, oil, sugar, grassy and woody biomass for bioenergy in Denmark was developed using linear programming. The model includes biomass supply from annual crops on arable land, short rotation forestry (willow) and plantation forestry. Crop area distributions were simulated using cost data for year 2005. Five scenarios with different constraints, e.g. on food and feed supply and on nitrogen balance were considered focusing on: a) constraints as the year 2005, b) landscape aesthetics and biodiversity c) groundwater protection, d) maintaining current food and feed production, or e) on site carbon sequestration. In addition, two oil price levels were considered. The crop area distributions differed between scenarios and were affected by changing fossil oil prices up to index 300 (using 55$ per barrel in 2005 as index = 100). The bioenergy supply (district heating, electric power, biogas, RME or bioethanol) varied between 56 PJ in the “2005” scenario at oil index 100 and 158 PJ at oil index 300 in the groundwater scenario. Our simple model demonstrates the effect of prioritizing multiple uses of land resources for food, feed or bioenergy, while maintaining a low nitrogen load to the environment. In conclusion, even after drastic landuse changes the bioenergy supply as final energy will not exceed 184 PJ annually (including 26 PJ processed biowaste sources) by far lower than the annual domestic total energy consumption ranging between 800 and 850 PJ yr −1 .