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Factors impacting district heating companies' decision to provide small house customers with heat

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  • Lygnerud, Kristina
  • Peltola-Ojala, Päivi

Abstract

District heating companies' efficiency of providing district heating to small houses in Finland and Sweden is studied. The method used is Data Envelopment Analysis (DEA). The results indicate that Finnish companies, overall, are more efficient when offering district heat to small house customers. In Finland, price increases demand and impacts district heating company efficiency the most. The lower price level in Finland, compared to Sweden, might be a reflection of competition between different heating goods. In Sweden, network size and company size (large companies are more efficient in providing small houses with heat than small ones) drive the efficiency of small house district heating.

Suggested Citation

  • Lygnerud, Kristina & Peltola-Ojala, Päivi, 2010. "Factors impacting district heating companies' decision to provide small house customers with heat," Applied Energy, Elsevier, vol. 87(1), pages 185-190, January.
  • Handle: RePEc:eee:appene:v:87:y:2010:i:1:p:185-190
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    References listed on IDEAS

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    3. Möller, Bernd & Lund, Henrik, 2010. "Conversion of individual natural gas to district heating: Geographical studies of supply costs and consequences for the Danish energy system," Applied Energy, Elsevier, vol. 87(6), pages 1846-1857, June.
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    5. Pažėraitė, Aušra & Lekavičius, Vidas & Gatautis, Ramūnas, 2022. "District heating system as the infrastructure for competition among producers in the heat market," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    6. Mousavi-Avval, Seyed Hashem & Rafiee, Shahin & Mohammadi, Ali, 2011. "Optimization of energy consumption and input costs for apple production in Iran using data envelopment analysis," Energy, Elsevier, vol. 36(2), pages 909-916.
    7. Werner, Sven, 2017. "District heating and cooling in Sweden," Energy, Elsevier, vol. 126(C), pages 419-429.
    8. Mohammadi, Ali & Rafiee, Shahin & Mohtasebi, Seyed Saeid & Mousavi Avval, Seyed Hashem & Rafiee, Hamed, 2011. "Energy efficiency improvement and input cost saving in kiwifruit production using Data Envelopment Analysis approach," Renewable Energy, Elsevier, vol. 36(9), pages 2573-2579.
    9. Magnusson, Dick, 2012. "Swedish district heating—A system in stagnation: Current and future trends in the district heating sector," Energy Policy, Elsevier, vol. 48(C), pages 449-459.
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    11. Janis Edmunds Daugavietis & Raimonda Soloha & Elina Dace & Jelena Ziemele, 2022. "A Comparison of Multi-Criteria Decision Analysis Methods for Sustainability Assessment of District Heating Systems," Energies, MDPI, vol. 15(7), pages 1-23, March.
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