IDEAS home Printed from https://ideas.repec.org/p/hhs/nhhfms/2007_017.html
   My bibliography  Save this paper

Optimal heating of large block of flats

Author

Listed:
  • Gustafsson, Stig-Inge

    (Linköping Institute of Technology, Linköping University)

  • Rönnqvist, Mikael

    (Dept. of Finance and Management Science, Norwegian School of Economics and Business Administration)

Abstract

Large number of block of flats are today often connected to municipal district heating grids. Such systems became very popular in Sweden some fifty years ago. The reason for this was that cheap low-quality oil was abundant on the energy market but normal building owners could not use it in their own low-cost oil-fired boilers. They had to use better and more expensive oil for their heating purposes. In a district heating plant low-quality cheap oil could be burnt in a sophisticated, but expensive, boiler. Such a plant was also large enough to afford investments in other equipment, e.g. for sulphur reduction. Further, the municipalities saw their chance to get rid of many other sources of heat, such as coal and wood, which polluted the air for many inhabitants. It was better with one high and large chimney than thousands of small. During many years heavy oil was the dominant fuel in our district heating plants. Unfortunately, the use of oil made the trade balance of Sweden problematic and the country vulnerable to fluctuations on the energy market. The oil-crises during the 1970-ties made the situation even worse. Sweden had to get rid of the dependence of oil and district heating based on other fuels, or even electricity, where available alternatives. Environmental hazards, high prices and the obligation to reduce greenhouse gas emissions have led to modernisation of the plants and nowadays, a number of energy sources are in use, many of them with very competitive prices. Waste, garbage, worn out rubber tyres, demolished wooden buildings are used as fuels today. There are however drawbacks. Boilers and equipment for waste incineration are expensive devices and it is many times not possible to cover the total heat demand by use of garbage etc., as the only sources. The amount of waste might also be too small. Sometimes coal and oil must be used during peak conditions but taxes and emission allowances make such fuels expensive and the utilities try to do their best in order to avoid such fossil heat sources. If it was possible to reduce the demand when peak conditions emerge, fossil fuels could be avoided. Up to now, normal Swedish district heating tariffs were not thought to encourage such a behaviour, but as this study shows, the cheapest solution for a proprietor is many times to abandon district heating during the winter and use alternative solutions. The utilities of course want to sell district heat also during the winter but if the building owners want to reduce their costs as much as possible the district heating tariff tells them to use heat from the utility only during summer.

Suggested Citation

  • Gustafsson, Stig-Inge & Rönnqvist, Mikael, 2007. "Optimal heating of large block of flats," Discussion Papers 2007/17, Norwegian School of Economics, Department of Business and Management Science.
  • Handle: RePEc:hhs:nhhfms:2007_017
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    References listed on IDEAS

    as
    1. Gustafsson, Stig-Inge, 1992. "Optimization of building retrofits in a combined heat and power network," Energy, Elsevier, vol. 17(2), pages 161-171.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Harrestrup, M. & Svendsen, S., 2014. "Heat planning for fossil-fuel-free district heating areas with extensive end-use heat savings: A case study of the Copenhagen district heating area in Denmark," Energy Policy, Elsevier, vol. 68(C), pages 294-305.
    2. Keirstead, James & Jennings, Mark & Sivakumar, Aruna, 2012. "A review of urban energy system models: Approaches, challenges and opportunities," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(6), pages 3847-3866.
    3. Nässén, Jonas & Holmberg, John, 2013. "On the potential trade-offs between energy supply and end-use technologies for residential heating," Energy Policy, Elsevier, vol. 59(C), pages 470-480.

    More about this item

    Keywords

    Optimisation; Modelling;

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:nhhfms:2007_017. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stein Fossen (email available below). General contact details of provider: https://edirc.repec.org/data/dfnhhno.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.