THIS RESULTS IN EXPENSIVE,

UNSUSTAINABLE ENERGY

A HUGE AMOUNT OF ENERGY IS WASTED IN EUROPE

14,000 TWh INTO USE, 3,300 TWh OF WHICH FOR HEATING

SOU

RCE

: EU

RO

PEA

N C

OM

MIS

SIO

N

SOU

RCE

: HEA

T R

OA

DM

AP

EUR

OPE

, AA

LBO

RG

UN

IVER

SIT

Y

HEATING ENERGY AND EMISSIONS TRADINGThe heating need of buildings in the EU is about 3,300 TWh. The majority of this is property- specific gas and oil heating, which is not burdened by the emissions trading scheme, unlike district heat and electricity.

HEAT IS WASTED IN EUROPEThe EU member states use about 14,000 TWh of energy. At the same time, 4,600 TWh of energy is wasted mainly as heat lost into water and air in conversion and distribution processes.

natural gas

oil

district heat

electricity

renewables

coal

75% OF HEATING ENERGY IS OUTSIDE

EMISSIONS TRADING

4,6

00

TW

h W

AS

TE

D

A HUGE AMOUNT OF ENERGY IS WASTED IN EUROPE

IF WASTE ENERGY WAS UTILISED, IT WOULD HEAT UP THE WHOLE OF EUROPEEurope is squandering 4,600 TWh of energy as waste heat from energy production. This is 1.4 times the amount of energy needed for the heating of buildings in the EU member states.

By utilising the waste heat in district heating networks, the energy need could be reduced considerably. This would also save the world’s energy resources, improve each country’s own energy security, strengthen na-tional economies and reduce climate emissions. Without compromising one iota of comfort.

DISTRICT HEAT& COGENERATION HAVE BEEN FORGOTTENThe European Union is on the way towards a low-carbon energy future, and it has set joint energy policy targets. Different member states have adopted different kinds of steering methods depending on their national preconditions.

When selecting the steering methods, district heat and combined heat and power generation (CHP) have been overlooked as tools, despite their great potential. The bill is paid by us, the consumers, in the form of high energy costs.

28€

2009 2010 2011 2012

14€ 17€

13€

PRICE TREND OF EMISSION ALLOWANCESSOURCE: SKM SYSPOWER

EUA-Dec

€/TO

N CO

2

5€

20142013

8€

54

1

3

2

20-20-20 DECISIONS

Energy-efficiency and renewable energy targets

for member states are overlapping with the

climate target.

REGULATION TO PROMOTE

ENERGY EFFICIENCY

Sector-specific regulation does not achieve the optimal

result: most cost- effective solutions,

which are most sensible overall.

In the EU, a huge amount of energy is

wasted in the system, which consequently

produces unnecessary CO2 emissions.

SUPPORT FOR

RENEWABLE ENERGY

Production and investment subsidies disturb the emissions

market and the electricity and heating

market, which therefore cannot operate to their

optimal capacity.

In 2014, renewable energy was supported

in the EU by EUR 45–50 billion.

EMISSIONS TRADING HAS NO

STEERING IMPACT

There are too many emission allowances on the market, which keeps

their price low. Cheap emission allowances do not steer towards energy efficiency, a

reduction in the use of fossil fuels, or utilisa-tion of low-emission

technologies such as district heat.

The problem is enhanced by the fact that the majority of

heating is outside the emissions market and is therefore not covered

by policy measures on emissions.

PROBLEMS IN THE

MARKETNo electricity production

– including combined heat and power gener-

ation – is profitable when the price of electricity

does not meet the production costs.

Building specific heating is excluded from the

emissions market and is not covered by policy measures on emissions.

The market does not treat all operators equally.

THIS RESULTS IN EXPENSIVE,

UNSUSTAINABLE ENERGY

A HUGE AMOUNT OF ENERGY IS WASTED IN EUROPE

6

PREVIOUS SOLUTIONS

ARE MENDED WITH A

PATCHWORK QUILT OF

DECISIONSPatching up of

problems focuses attention on less important issues.

Opportunities in combined heat and

power generation or district heating are

not noticed or realised.

7

DISTRICT HEAT AND COMBINED

HEAT AND POWER GENERATION ARE

AN UNTAPPED OPPORTUNITYIn most countries, energy policy carried on since the 20-20-20 decisions has

not encouraged companies to invest in district heat or combined heat and power

generation. Distortions in the heating market reduce the

attractiveness of district heat to customers.

ELECTRICITY PRICE TREND IN GERMANYSOURCE: EUROSTAT

ELECTRICITY PRICE FOR HOUSEHOLDS PRODUCER PRICE

0

5

10

15

20

25

30

20132005 2006 2007 2008 2009 2010 2011 201220042003

CEN

T/k

Wh

WHAT CAN BE DONE?

INVESTING IN SUS-TAINABLE ENERGY

WASTE HEAT UTILISED AS

DISTRICT HEAT

WASTE HEAT UTILISED AS

DISTRICT HEAT

IT IS TIME TO IDENTIFY THE PROBLEMS AND TAKE MEASURES!

TO IDENTIFY THE POSSI- BILITIES OF THE HEATING AND COOLING SECTOR and to develop related statistics and

to include heating and cooling as part of the key EU en-ergy policy next to electricity and fuels.

1TO REMOVE OBSTACLES TO DISTRICT HEATING, DISTRICT COOLING AND CHP, i.e. to remove barriers to building a district heat and district cooling infrastruc-ture in member states and cities and

to relieve the emis-sions trading sector of overlapping emis-sions control, such as CO2-based taxation.

2

BETTER ENERGY SYSTEM THROUGH COGENERATION AND DISTRICT HEATMeasures to achieve a low- carbon Europe are currently under preparation. When seeking a solution in Europe, we must not dismiss locally operated district heat and district cooling.

A competitive heating market operates efficiently without nee-ding any production sub sidies. However, support for tech- nolo-gical development, research and innovations is needed.

The selection of practical means in companies is directed by cost effectiveness, utilisation of technological development and the price of carbon dioxide.

In this kind of an operating environment, energy companies can make investments that improve energy security, reduce emissions and benefit the customers.

TO MAKE RENEWABLE ENERGY EQUAL regardless of the producer, production location or production method.

3TO SET A CLEAR TARGET FOR REDUCING CO2 EMISSIONS, i.e. include property-specific heating in emissions trading, and

to create an impartial competi-tion environment for the heating market.

4TO HARMONISE AND PHASE OUT PRODUC-TION SUBSIDIES USED IN DIF-FERENT MEM-BER STATESand to replace them with tech - n ology-neutral sup-port for research, innovation activities and commercialisa-tion of new technology.

5

DISTRIC

T H

EAT

ELECTRICITY

COMBINED HEAT

AND POWER

GENERATION

COMBINED HEAT AND POWER

GENERATION IS STILL UNCOMMON

IN MANY EU COUNTRIES. THE

ENERGY NEED AND EMISSIONS CAN

BE REDUCED WITH CHP.

INVESTING IN SUS-TAINABLE ENERGY

DISTRICT HEAT AND COOLING AS A SOLUTIONDifferent parts of the energy system can be optimised with the district heating and cooling system. With the network, different heat sources can be introduced in the system, the fluctuation of supply and demand can be balanced, and the energy production methods can be optimised to different situations. For customers, district heating and cooling is an interesting and competitive alternative.

FLEXIBILITY TO ELECTRICITY GENERATIONWith combined heat

and power generation, the volume of elect-ricity generation can

be adjusted according to the consumpti-

on need and other electricity production.Cogeneration can be

used for balancing the fluctuation of wind

and solar power.

WASTE HEAT UTILISED AS

DISTRICT HEAT

DISTRICT HEAT AS A SOLUTION

Energy production and consumption and their timing can be optimised by utilising

the possibilities of district heating and cooling. That way, it is possible to utilise the most favourably priced and best sources of

heat and cooling in terms of the climate. Va-rious technologies can be utilised optimally

on both a small and large scale.

A DISTRICT HEATING AND COOLING SYSTEM CAN STORE

ENERGY AS HOT OR COLD WATER IN UNDERGROUND STORAGE TANKS.

MORE RENEWABLESDistrict heating and cooling is the most efficient method of

increasing rene-wable energy in

urban districts. Many renewable energy

solutions are not eco-nomically justifiable to be installed separately

for each building.

With district heating and cooling, custo-

mers will have a wide range of renewable

energy forms at their disposal, from solar and bioenergy to heat pumps and

waste-to-energy. 

COMFORT AND SECURITYCustomers will also

need heat and cooling in the future. Energy is needed for space heating and hot tap water, and for space

cooling. Although heating and cooling

needs can be inc-reasingly varied and unexpected, district heating and cooling

systems provide effortless heat and

cooling on demand at all times.

ALL ENERGY IS UTILISED

Only with a district heating and cooling system, heat can be

transmitted from where there is too

much of heat to where it is needed.

Thermal energy from electricity genera-tion, industry and properties, which

would otherwise be unutilised, can be

captured and refined into district heat.

Storage facilities built in the district heating and cooling networks

can be used for storing surplus heat

or, for example, cheap electricity generated

during periods of peak output of solar and wind power. These

storage facilities can be used for reducing energy production

that causes emissions. 

DISTRICT HEAT AS A SOLUTION

WASTE HEAT UTILISED AS DISTRICT HEAT!

www.energia.fi

Finnish Energy IndustriesAvenue de Cortenbergh 172

1000 Bruxelles, BelgiumTel. +358 9 420 23 899

Energiateollisuus ryFredrikinkatu 51–53 B

00101 Helsinki, FinlandTel. +358 9 530 520