Managing the Energy Transition: What Role for District Energy?

Copenhagen, 27 March, 2014

Euroheat & Power • • • Unites the District Heating and Cooling sector in Europe and beyond Members from over 30 countries: national DH associations, utilities, manufacturers, research institutes, consultants… Mission: EU advocacy, promotion of DHC, market analysis, research and technological development (projects) 3

DH in the EU 28

• • • •

62 million EU citizens served Share of citizens served by DH: ~13% Sales totalling ~1,500 PJ TWh which is almost

(enough to heat New York for 50 years)

420 Total trench length of DH pipeline system over 140,000 km

(= 7 Great Walls of China; = 3.5 times around the globe)

Source: Euroheat & Power (DHC Country by Country survey 2013) 4

DHC in the EU Today

It’s not just for Copenhagen anymore!

5

Markets as Diverse as Europe Itself

Source: Euroheat & Power (DHC Country by Country survey 2013) EU average: 12.4% 6

DHC and EU Energy Policy: A Natural Fit Sustainability Supply Security Competitiveness | 9

But… | 10

And…what about heat?

Source: IEA, 2011 11

A Reason for Optimism: 2012 Energy Efficiency Directive

• DHC finally has a home in the EU’s regulatory framework:

“The proposal gives investors certainty as regards the achievement of the EU target and support for energy efficiency improvement measures such as high-efficiency cogeneration and district heating and cooling.” “High-efficiency cogeneration (CHP) and district heating and cooling has significant potential for saving primary energy which is largely untapped in the European Union.”

• But it’s only a first step and it’s not nearly enough • Energy efficiency and heat remain at the margins of the 2030 policy debate (at least for the moment)

Why are we not where we should be?

1. Heating is seen as a ‘local’ matter 2. Confusion between energy and electricity 3. Belief that heat requirements will disappear due to “Zero” energy buildings 4. DHC often perceived as ‘fossil-based’ technology Conclusion: We need to tell our story better!

Our Story: DHC as ‘future-proof’ infrastructure Source: Danfoss 14

What Exactly Can DHC Deliver?

We asked the experts

by Aalborg University David Connolly Brian Vad Mathiesen Poul Alberg Østergaard Bernd Möller Steffen Nielsen Henrik Lund Halmstad University Urban Persson Daniel Nilsson Sven Werner Ecofys Germany GmbH Jan Grözinger Thosmas Boersmans Michelle Bosquet PlanEnergi Daniel Trier for

Two Reports: – Heat Roadmap Europe (HRE) I (2012): Is DHC beneficial in a business-as-usual scenario?

– Heat Roadmap Europe (HRE) II (2013): Is DHC beneficial even in a low-heat demand scenario?

General Findings

• • • There’s enough heat supply and demand to justify tremendous growth for DHC through 2030 and 2050 DHC’s emergence would help Europe achieve its overall energy ambitions (C02 reduction, RES, self-reliance, affordability) DHC is not just compatible with a sustainable energy model. It can be a key enabler 18

HRE I Conclusion: 50% DH and CHP by 2050 • Decrease primary energy supply and especially fossil fuels and CO2 emissions

LESS FUEL

• Decrease annual costs of energy in Europe by approximately €14 Billion in 2050

LESS MONEY

• Create additional 220,000 jobs in the EU over the period 2013-2050

MORE JOBS

• Further integration of RES

MORE RES

HRE I (2012)

Conclusion HRE II: • A 50% share for DHC in EU the heat market would allow the EU to: – Achieve its ambitious efficiency and C02 objectives – Spend 15% less – an annual savings of €100 billion • We cannot afford to ignore this potential

How do we make this happen?

• • • • • Cities will play a key role, but… An overall plan is essential That means Europe needs a heat policy Denmark can help show the way Euroheat is ready to channel our common message

Thank you and See You Soon!

2014 Euroheat & Power Annual Conference and 60th Anniversary Join us on 28-29 April 2014 in Brussels, Belgium www.euroheat.org/2014EHPac