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A master's thesis from Aalborg University
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Techno-Economic Optimization of Danish Decentralized Combined Heat and Power District Heating Plants: A Comparative Analysis of a Retrofitted District Heating Plant & Modification of Institutional levies

Author

Term

4. Term

Publication year

2015

Submitted on

Pages

100

Abstract

Når en stigende andel af elproduktionen i Danmark kommer fra vind, bliver decentrale kraftvarmeværker, der leverer fjernvarme, presset, og flere lukker. Når efterspørgslen er lav, må systemet eksportere overskydende vindstrøm; når vinden ikke blæser, kan færre kraftvarmeværker svække forsyningssikkerheden. Internationale elforbindelser kan ikke altid udligne udsving, fordi kapaciteten kan være begrænset. Dette speciale undersøger, om og hvordan disse kraftvarme-fjernvarmeværker kan forblive levedygtige. Analysen fokuserer på tre veje: forbedret drift gennem optimeret handel på elmarkedet, investering i en stor varmepumpe, der omdanner overskydende vindstrøm til varme, samt ændringer i de institutionelle afgifter, der pålægges varmepumper. Resultaterne peger på et betydeligt overlevelsespotentiale: der er plads til driftsforbedringer; en varmepumpe kan absorbere eloverskud og styrke værkernes rolle i et fleksibelt energisystem; og justerede afgifter kan yderligere forbedre økonomien. Samlet giver dette en positiv forretningscase for decentrale kraftvarme-fjernvarmeværker.

As wind power supplies a growing share of electricity in Denmark, decentralized combined heat and power plants that serve district heating networks are under pressure and many are closing. When demand is low, the system has to export surplus wind power; when wind is scarce, having fewer CHP plants can reduce security of supply. Cross-border interconnectors cannot always balance the system because their capacity may be limited. This thesis examines whether, and under what conditions, these CHP district heating plants can remain viable. The analysis focuses on three approaches: improving plant operations through optimized electricity market trading, investing in a large heat pump to turn excess wind power into heat, and adjusting the institutional levies applied to heat pumps. Findings indicate a strong potential for survival: there is room for operational improvements; adding a heat pump helps absorb surplus electricity and strengthens the plants’ role in a flexible energy system; and modifying levies further improves performance, yielding a positive business case for CHP district heating plants.

[This abstract was generated with the help of AI]