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Woodfuel procurement strategies of district heating plants

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  • Roos, A
  • Bohlin, F
  • Hektor, B
  • Hillring, B

Abstract

Woodfuel use in the Swedish district heating sector increased significantly from 1985 to 1999. This study analysed strategies and considerations concerning woodfuel procurement in district heating plants. Priorities and concerns in the industry involved an increased woodfuel share, ambitions to create an environmental image, cost minimisation, awareness about the role of energy policies for fuel choice, improvement of woodfuel quality and the ambition to maintain a competitive woodfuel market with several suppliers. Factor analysis yielded five dimensions in the woodfuel procurement strategies among the district heating companies: (1) increased woodfuel use; (2) import; (3) spot market woodfuel purchases; (4) focus on refined woodfuels; and (5) using price only when deciding whether to use woodfuels or other fuels. Five clusters were defined along the three strategy dimensions (1)–(3). The clusters differed concerning size, experiences from the introduction of woodfuels, perceptions about woodfuels and strategies employed to date. This paper describes different strategies that the district heating companies apply on the woodfuel market. The conclusion is that policies should consider this diversity in procurement strategies, mitigate their negative side-effects and assist to make them cost-effective.

Suggested Citation

  • Roos, A & Bohlin, F & Hektor, B & Hillring, B, 2003. "Woodfuel procurement strategies of district heating plants," Energy, Elsevier, vol. 28(2), pages 127-140.
    • Handle: RePEc:eee:energy:v:28:y:2003:i:2:p:127-140
    DOI: 10.1016/S0360-5442(02)00108-1
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    References listed on IDEAS

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    1. Olerup, Brita, 1994. "Deciding on biomass in Hasselby," Energy Policy, Elsevier, vol. 22(5), pages 415-426, May.
    2. Curry, Timothy J. & Rose, John T., 1997. "Thrift strategies after FIRREA: A cluster analysis of high-performance institutions," Journal of Economics and Business, Elsevier, vol. 49(3), pages 223-238.
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    Cited by:

    1. Awais, Fawad & Flodén, Jonas & Svanberg, Martin, 2021. "Logistic characteristics and requirements of Swedish wood biofuel heating plants," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).
    2. Guelpa, Elisa & Toro, Claudia & Sciacovelli, Adriano & Melli, Roberto & Sciubba, Enrico & Verda, Vittorio, 2016. "Optimal operation of large district heating networks through fast fluid-dynamic simulation," Energy, Elsevier, vol. 102(C), pages 586-595.
    3. Guelpa, Elisa & Barbero, Giulia & Sciacovelli, Adriano & Verda, Vittorio, 2017. "Peak-shaving in district heating systems through optimal management of the thermal request of buildings," Energy, Elsevier, vol. 137(C), pages 706-714.
    4. Torchio, Marco F. & Genon, Giuseppe & Poggio, Alberto & Poggio, Marco, 2009. "Merging of energy and environmental analyses for district heating systems," Energy, Elsevier, vol. 34(3), pages 220-227.

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