CHP Consumers to Heat Producers
Helsinki Energy Designers (Finland): Perttu Lahtinen – Minna Näsman – Ossi Porri
Global climate change has created an environmental push to change heating technologies in Helsinki and elsewhere. Team Consumers to Heat Producers (CHP) proposes a market driven solution based on:
A decision to electrify heating. We propose that technologies with the highest coefficient of performance (COP) should be prioritized when doing this. In practice, our technical solution consists of different kinds of heat pumps, use of excess heat, demand response utilizing different kinds of storage, and, if needed, electric boilers.
A target size and timetable for creating a new heat procurement market. We propose new market instruments like a hybrid tariff for hybrid heaters and a feed-in tariff for heat providers. These are needed to change heat pump owners from competitors to collaborators in district heating.
A new vision for the district heating network. We see district heating network as a digitalized platform for decentralized heat exchange, enabling optimization of energy efficiency from production to consumption.
The solution replaces the coal used in Salmisaari plant, reducing city-owned energy company’s CO2 emissions generated in district heating from the planned 2024 level of 0,7 Mt to 0,2 Mt in 2030.
The estimated total investment cost of this 300-MW coal-replacement solution is 400 million euros. Investments can be done either by city-owned energy company or, as in the proposed market model, by third parties. If the investments are made by third parties, the city-owned energy company adds a new feed-in tariff to their current heat procurement price. The estimated cumulative cost of this is €150 M during the period that the tariff is needed. This would increase the end-user price of district heat by 2%.
Only mature technologies and technologies in the commercialization phase are used. There is room for technological development that provides additional economic benefits, but the solution is not dependent on it. The new market rules improve the transparency, equality, and effectivity of the system.
Minna Näsman, Helsinki Energy Designers, tel. +358 40 687 3125, minna ( at ) helsinkienergydesigners.fi