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Policy incentives for flexible district heating in the Baltic countries

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  • Møller Sneum, Daniel
  • Sandberg, Eli
  • Koduvere, Hardi
  • Olsen, Ole Jess
  • Blumberga, Dagnija

Abstract

This study analyzes the impacts of taxes, subsidies, and electricity transmission and distribution tariffs and heat storage on the operation and economic feasibility of district heating plants with different flexibility potentials in the Baltic countries. Under 2016 conditions, the lowest levelized cost of heat is achieved by a combination of wood chip boilers, electric boilers, and heat storage. Heat storage enables a higher utilization of least-cost technologies, resulting in greater cost efficiency for all considered scenarios. Current taxes and subsidies are found to have limited impact on the operation of combined heat and power plants and electric boilers.

Suggested Citation

  • Møller Sneum, Daniel & Sandberg, Eli & Koduvere, Hardi & Olsen, Ole Jess & Blumberga, Dagnija, 2018. "Policy incentives for flexible district heating in the Baltic countries," Utilities Policy, Elsevier, vol. 51(C), pages 61-72.
    • Handle: RePEc:eee:juipol:v:51:y:2018:i:c:p:61-72
    DOI: 10.1016/j.jup.2018.02.001
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    Cited by:

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    7. Bergaentzlé, Claire & Jensen, Ida Græsted & Skytte, Klaus & Olsen, Ole Jess, 2019. "Electricity grid tariffs as a tool for flexible energy systems: A Danish case study," Energy Policy, Elsevier, vol. 126(C), pages 12-21.
    8. Sandberg, Eli & Kirkerud, Jon Gustav & Trømborg, Erik & Bolkesjø, Torjus Folsland, 2019. "Energy system impacts of grid tariff structures for flexible power-to-district heat," Energy, Elsevier, vol. 168(C), pages 772-781.
    9. Møller Sneum, Daniel, 2021. "Barriers to flexibility in the district energy-electricity system interface – A taxonomy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 145(C).
    10. Bergaentzle, Claire & Gunkel, Philipp Andreas, 2022. "Cross-sector flexibility, storage investment and the integration of renewables: Capturing the impacts of grid tariffs," Energy Policy, Elsevier, vol. 164(C).
    11. Wheatcroft, Edward & Wynn, Henry P. & Lygnerud, Kristina & Bonvicini, Giorgio & Bonvicini, Giorgio & Lenote, Daniela, 2020. "The role of low temperature waste heat recovery in achieving 2050 goals: a policy positioning paper," LSE Research Online Documents on Economics 104136, London School of Economics and Political Science, LSE Library.
    12. Volkova, A. & Koduvere, H. & Pieper, H., 2022. "Large-scale heat pumps for district heating systems in the Baltics: Potential and impact," Renewable and Sustainable Energy Reviews, Elsevier, vol. 167(C).
    13. Pakere, Ieva & Blumberga, Dagnija, 2020. "Solar power or solar heat: What will upraise the efficiency of district heating? Multi-criteria analyses approach," Energy, Elsevier, vol. 198(C).
    14. Ozoliņa, Signe Allena & Pakere, Ieva & Jaunzems, Dzintars & Blumberga, Andra & Grāvelsiņš, Armands & Dubrovskis, Dagnis & Daģis, Salvis, 2022. "Can energy sector reach carbon neutrality with biomass limitations?," Energy, Elsevier, vol. 249(C).
    15. Sneum, Daniel Møller & González, Mario Garzón & Gea-Bermúdez, Juan, 2021. "Increased heat-electricity sector coupling by constraining biomass use?," Energy, Elsevier, vol. 222(C).
    16. Obrist, Michel D. & Kannan, Ramachandran & McKenna, Russell & Schmidt, Thomas J. & Kober, Tom, 2023. "High-temperature heat pumps in climate pathways for selected industry sectors in Switzerland," Energy Policy, Elsevier, vol. 173(C).
    17. Yubo Guo & Igor Martek & Chuan Chen, 2019. "Policy Evolution in the Chinese PPP Market: The Shifting Strategies of Governmental Support Measures," Sustainability, MDPI, vol. 11(18), pages 1-24, September.
    18. Lygnerud, Kristina & Yang, Ying, 2024. "Capturing flexibility gains by price models for district heating," Energy, Elsevier, vol. 294(C).
    19. Edward Wheatcroft & Henry Wynn & Kristina Lygnerud & Giorgio Bonvicini, 2019. "The role of low temperature waste heat recovery in achieving 2050 goals: a policy positioning paper," Papers 1912.06558, arXiv.org.
    20. Peter D. Lund & Klaus Skytte & Simon Bolwig & Torjus Folsland Bolkesjö & Claire Bergaentzlé & Philipp Andreas Gunkel & Jon Gustav Kirkerud & Antje Klitkou & Hardi Koduvere & Armands Gravelsins & Dagni, 2019. "Pathway Analysis of a Zero-Emission Transition in the Nordic-Baltic Region," Energies, MDPI, vol. 12(17), pages 1-20, August.
    21. Edward Wheatcroft & Henry Wynn & Kristina Lygnerud & Giorgio Bonvicini & Daniela Leonte, 2020. "The Role of Low Temperature Waste Heat Recovery in Achieving 2050 Goals: A Policy Positioning Paper," Energies, MDPI, vol. 13(8), pages 1-19, April.
    22. Østergaard, Poul Alberg & Andersen, Anders N. & Sorknæs, Peter, 2022. "The business-economic energy system modelling tool energyPRO," Energy, Elsevier, vol. 257(C).
    23. Ieva Pakere & Dace Lauka & Dagnija Blumberga, 2020. "Does the Balance Exist between Cost Efficiency of Different Energy Efficiency Measures? DH Systems Case," Energies, MDPI, vol. 13(19), pages 1-16, October.

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