Transcript Fortum – a leading Nordic energy company

Efficient and Competitive District
Heating and CHP
Experience from Finland
Seppo Aho
Visegrad, Hungary
November 5, 2012
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A leading Nordic energy company
•
The Nordic countries,
Russia and the Baltic
Rim in focus
• Operations in
11 countries
•
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Approx. 10 800
employees in the
Fortum Group
•
1.2 million electricity
retail customers
• 1.6 million electricity
distribution customers
• District heating for ~ 90
cities, in eight countries
•
•
Second largest in power
generation in the Nordic
countries
Total Power Generation
72.7 TWh
• Total Heat Production
47.4 TWh
District heating and cooling in Finland 2011
• Heat sales (incl. taxes)
1 930 mill. €
• Sold heat energy
30,1 TWh
• Average price of DH (incl. taxes)
6,39 c/kWh
• Inhabitants in DH apartments
2,7 mill.
• Market share of district heat
46 %
• Sold district cooling energy
123 GWh
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Source: Finnish Energy Industries
Comprehensive CHP and open energy
markets led to lowest prices of heat!
“The fuel savings of about 22 TWh are
equal to 3 million metric tonnes of
“ Finnish DH tariffs are the lowest in
hard coal. Such savings resulted in 600
Western Europe and lowest in the world
kg of coal and 1400 kg of CO2
compared to the purchasing power.“
equivalent saved per inhabitant in
2009.“
TWh/a
90
DH prices EUR/GJ (2009)
80
30
Fuel consumption without CHP
70
savings due
to CHP
60
50
25
20
15
40
30
10
Actual fuel
consumption
20
5
10
0
0
1970
1973
1976
1979
1982
1985
1988
1991
1994
1997
2000
2003
2006
2009
Denmark
Finland
Germany
Sweden
Source: Euroheat&Power: Country by country/2011 Survey
Source: Finnish Energy Industries,
Finnish Cleantech
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Real price of district heat
corrected with cost-of living index, 1.1.1981 = 100
Share of the excise
and value addes taxes
was 29,4% in the
average price of district
heat year 2011
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Source: Finnish Energy Industries
District heating still highly competitive
Total costs, block of flats
150,00
• Equipment inspections
• Technical support 24 / 7
• Constant local presence
€/MWh
100,00
• Automated metering and online
reporting support energy savings
50,00
0,00
District
heating
Heat
pump
Investment and capital costs
Fixed costs
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Customer benefits
• Most competitive price
• Highly comfortable and reliable
• Quality assurance
Oil boiler
Pellet
boiler
Maintenance costs
Variable costs
Social benefits
• Enables efficient CHP production and
thus superior CO2 efficiency
• Suits urban infrastructure
• Centralised emission control in power
plant, flexible fuel mix
DH pricing - principle
• We are competing with other heating
solutions
– DH prices have to be competitive
• Pricing is based also on:
– Production structure
– Fuel and CO2 allowance prices
– Operation and maintenance costs
– Capital costs
– Taxes
• DH price is not regulated, however DH is in
dominant market positions towards it's
existing customers so all customers have to
be treaded equally and price must be
reasonable
Fortum DH products in Finland
59,66 /MWh VAT included
price is valid 6 months and it
will be checked 1.1. and 1.7.
62,85€/MWh VAT incl.
valid until 1.1.2012 - 1.1.2014
64,70€/MWh 1.7.2012 - 1.7.2014
price is valid for 2 years fixed
period
Key objective is long term competitiveness of district heat price
Alternative Pricing in Practice – “IRL” competitiveness
Price development for district heating in Stocholm Sweden (193 MWh)
1200
1100
1000
kr/MWh
900
800
700
600
500
400
300
200
100
0
2007
District heating
2008
2009
Heat pump/oil
2010
Pellets/oil
2011
Heat pump/electricity
2012
Espoo DH system
Suomenoja CHP plant
• 370 MWe
• 565 MWth
Peak and reserve boilers
•Tapiola
•Otaniemi
•Kivenlahti
•Vermo
•Kaupunginkallio
•Juvanmalmi
•Auroranportti
•Kalajärvi
•Masala
•Kirkkonummi
Total capacity is 370 MW electricity and over 1000 MW heat
DH network length
Network volume
No. of customers
People living in DH houses
800 km
55 000 m3
6500
200 000
District Heating and CHP Production
in Espoo, Finland (Fortum Case)
CO2 emissions (g CO2/kWh) per produced
district heat reduced by 30% between 19802010.
• Additional power generation from Suomenoja
CHP (2009)
• New CCGT-plant (Combined Cycle Gas
Turbine) as a base load unit
• Substantial decrease in coal (about 30%) and oil
usage
• Efficiency in energy production: 90%
CHP plant
Server centre
• Decrease in CO2 emissions per produced
energy unit: 14%
Heat pump
facility
District
heating
network
• Expansion of district heating network
• 2nd longest DH network in Finland: 800 km
• Network efficiency: 93%
• Innovation in cooling to utilize the heat pumps
and the waste heat from data server centers
(2011)
• CO2 reduction by 3% in total
Finnish Cleantech
District cooling
network
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2004-2010
23.2.2011
25.11.2010
27.8.2010
29.5.2010
28.2.2010
30.11.2009
1.9.2009
3.6.2009
5.3.2009
5.12.2008
6.9.2008
8.6.2008
10.3.2008
11.12.2007
12.9.2007
14.6.2007
16.3.2007
16.12.2006
17.9.2006
19.6.2006
21.3.2006
21.12.2005
22.9.2005
24.6.2005
26.3.2005
26.12.2004
Absolute losses [GWh]
300
260
220
200
180
6,0 %
160
140
120
100
2,0 %
Specific losses [%]
Continious monitoring of the network losses
Network losses in Espoo DH Network 2004-2011 (sliding 12 month average)
12,0 %
280
10,0 %
240
8,0 %
4,0 %
Losses [GWh]
Losses [%]
Linear (Losses [%])
Linear (Losses [GWh])
We are constructing a new bio-fuelled CHP plant at
the city of Järvenpää, Finland
new CHP
25 MW electricity and 60 MW heat using
forest based fuels and peat to replace
natural gas fired heat production
Investment 80 MEUR
Fortum to build the world's first industrial-scale integrated bio-oil
plant to Joensuu in Finland
• Integrated with the CHP plant in Joensuu
• Produces electricity, district heat and
50,000 tonnes of bio-oil per year
• Raw materials include forest residues and
other wood based biomass
– Energy wood consumption at the plant almost
doubles from existing 300,000 m3 per year
• In end-use, bio-oil reduces CO2 emissions more than 70% compared to fossil fuels
• Construction ongoing, in production in the autumn of 2013
• Total value of the investment about EUR 30 million, the Ministry of Employment and
the Economy has granted project EUR 8.1 million in a new technology investment
• Technology development in cooperation between Fortum, Metso, UPM and VTT
Fortum Pärnu in Estonia – a new biomass based
CHP
City of Pärnu (43000 popul.) is located in south-west Estonia
Fortum is the sole owner of the district heating operations
Heat sales abt. 250 GWh/a
Previously based on peat, wood, natural gas and shale oil
A new CHP plant
24 MWe/45 MWh, peat, wood and industrial waste
110 GWh electricity, 260 GWh heat
Multifuel CFB boiler, 100% fuel flexibility.
14 MW flue gas condenser
CO2 reduction abt. 60%
Electricity sales to spot market at market conditions (NordPool)
Option to acquire subsidized price based on energy market act
for biofuel and peat based electricity (limited time)
Order of turbine and generator July 2008
Start of commercial operation December 2010
Biofuel and peat fired CHP plant.
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District Heat in Stockholm
Heat production 9 TWh
District cooling 0.4 TWh
Electricity
1,6 TWh
A new bio CHP
under planning
A new WtE CHP Plant
under construction
Existing WtE
CHP Plant
Fortum Fuel Mix in Stockholm
Fossil fuels
21%
Bio fuels
33%
Waste to Energy
28%
Seawater, Free cooling and
Waste water 18%
Waste to Energy CHP Plant in Klaipeda,
Lithuania
City of Klaipeda is located in the coast of Baltic Sea in Lithuania
Heat distribution company Klaipedos Energia is a Joint Venture between
City of Klaipeda (75%) and Fortum (19.9%)
Heat sales abt. 910 GWh/a
Fortum Klaipeda is the production company
which will invest in to the new Waste to Energy
plant in Klaipeda. Owned by Fortum 90% and
Klaipedos Energia 10%
A new WtE CHP plant is to be constructed
23 MWe/55 MWh + 10 MW flue gas condenser,
170 GWhe/500 GWhh
260 000 t of waste (municipal and industrial)
Grate boiler
Start of commercial operation Q1/2013
Investment 123 M€
Strong support of the Lithuanian Government and the City of Klaipeda
Waste supplier, the Waste Management Company of Klaipeda and neighbouring Municipalities
Heat sold to Klaipedos Energia under TPA and long term competitive contract
Gate fee agreed for the take of of the waste
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Thank you!
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