The Role of District Energy In Future Energy Systems

Authors

  • Mark Spurr Legislative Director International District Energy Association

DOI:

https://doi.org/10.13052/dgaej2156-3306.1624

Abstract

This article provides an overview of district energy systems (DES)
technologies including cogeneration, CHP, Combined Heat and Power,
distribution systems and thermal energy storage. The role of DES as a
catalyst for cogeneration and renewable energy, and as a way to reduce
air pollution, greenhouse gases and ozone-depleting chemicals, is de-
scribed.
The benefits of DES relative to economic growth, energy security
and power grid reliability are explained.
A quantitative analysis is presented which compares DES inte-
grated with CHP to conventional technologies for heating, cooling and
power generation. The article draws substantially from a report pre-
pared by the author for the U.S. Environmental Protection Agency.

Downloads

Download data is not yet available.

Author Biography

Mark Spurr, Legislative Director International District Energy Association

Mark Spurr is vice president of Kattner/FVB District Energy Inc.,
a district energy consulting firm with offices in Minneapolis, USA;
Edmonton and Toronto, Canada; Stockholm and Vasteras, Sweden;
Wroclaw, Poland; and Dubai, United Arab Emirates. Since 1990 Mr.
Spurr has also served as Legislative Director of the International District
Energy Association. In this role he is responsible for developing and
advocating energy and environmental policies and programs to encour-
age the development and expansion of district energy systems.
For Kattner/FVB, Mark directs district energy consulting services
for utility companies, municipalities, universities and other operators of
central systems. His responsibilities include: district energy business
development; feasibility and financial analysis; contract and rate struc-
ture development; marketing and sales assistance; strategic planning for energy utilities; environmental impact analysis; government affairs and
regulatory issues. Current projects include development and advocacy
of carbon dioxide emission trading mechanisms for promoting district
energy and cogeneration as a climate change strategy for the Interna-
tional Energy Agency.
Mr. Spurr has over 20 years of experience in the energy industry,
including 15 years of consulting experience in the district energy indus-
try. Between 1985 and 1998 he owned and operated Resource Efficiency,
Inc., a consulting firm specializing in district energy systems and CHP.
His consulting work included:
• Feasibility analysis of district heating and district cooling systems,
including load assessment, technology options and economic fea-
sibility;
• Analysis of CHP technology options and economics.
• Analysis of utility service costs and rates;
• Marketing of energy services, including analysis of district energy
services compared to alternatives for heating and cooling build-
ings;
• Strategic planning and management consulting for energy utilities;
• Analysis of the environmental impacts of energy systems.
Kattner/FVB District Energy Inc., 150 South 5th Street, Suite 340;
Minneapolis, MN; Ph. 612-607-4544; fax 612-338-3427; e-mail
mspurr@kattnerfvb.com

References

Mark Spurr, “District Energy Systems Integrated with Combined

Heat and Power,” International District Energy Association for the

U.S. Environmental Protection Agency, 1999.

U.S. Energy Information Administration, “Commercial Buildings

Energy Consumption Survey,” 1995.

U.S. Department of Energy, “ 1992 National Census for District

Heating, Cooling and Cogeneration,” July 1993.

U.S. Department of Energy, “ 1992 National Census for District

Heating, Cooling and Cogeneration,” July 1993.

Ministry of Energy, Danish Energy Agency, “District Heating Re-

search and Technological Development in Denmark,” 1993.

Finnish District Heating Association, “District Heating From Fin-

land,” 1994.

The new Canadian federal budget for fiscal years 2000-2003 in-

cludes a total of CA$335 million (US$235 million) in funding for

three programs that will promote the development of district en-

ergy systems and other green energy technologies. The CA$25

million ($US17.5 million) Green Municipal Enabling Fund will

help communities determine the feasibility of and best approaches

to sustainable energy and environmental practices. The CA$100

million (US$70 million) Green Municipal Investment Fund, a re-volving fund, supports project implementation. Loans from the

fund will be repaid and then recycled to support new projects.

Both programs will be administered by the Federation of Canadian

Municipalities.

The new budget also continues CA$210 million (US$147 mil-

lion) in support for the Climate Change Action Fund over the next

three years. This money funds the implementation of technologies,

including district energy, which reduce carbon dioxide (CO 2 ) emis-

sions.

In February 2000, the Canadian government also announced

two tax law changes expected to increase investment in district

energy systems. The first change reduces the corporate tax rate for

district energy systems from 28 percent to 21 percent. Although the

budget proposal specifically addresses district steam systems, it is

anticipated that this change will also apply to hot water and

chilled-water systems when detailed provisions are written. The

second tax law change raises depreciation for district heating in-

vestments from 4 percent to 8 percent per year.

International District Energy Association, “District Heating Hand-

book,” Fourth Edition, 1983.

GEF Ingenieurgesellschaft Fur Energietechnik Und Femwarme

MBH, “District Heating Piping with Plastic Medium Pipes—Status

for the Development and Laying Costs,” International Energy

Agency Programme of Research, Development and Demonstration

on District Heating and Cooling, Annex 111, 1992.

ZW Energiteknik, “Plastic Pipe Systems for District Heating—

Handbook for Safe and Economic Applications,” International

Energy Agency Programme of Research, Development and Dem-

onstration on District Heating and Cooling, Annex V, 1999.

Weinspach, P.M., “Advanced Energy Transmission Fluids, Final

Report of Research,” International Energy Agency Programme of

Research, Development and Demonstration on District Heating

and Cooling, Annex IV, 1996.

Snoek and Hampton, “Ice Slurry Based District Cooling Systems,”

International District Heating and Cooling Association 8th Annual

District Cooling Conference, 1993.

Bernt Andersson, “Chilled Water Systems with Low Supply Tem-

peratures and Thermal Storage,” International District Heating and

Cooling Association 8th Annual District Cooling Conference, 1993.

John Andrepont, “Long-Term Performance of an Aqueous Fluid in

a Thermally Stratified, Low-Temperature, Thermal Storage Appli-

cation,” International District Heating and Cooling Association

th Annual District Cooling Conference, 1999.

Strachan and Dowlatabadi, in “The Adoption of a Decentralized

Energy Technology: The Case of UK Engine Cogeneration”

(ACEEE Summer Study conference 1999) concluded that the high

cost of owning, operating and maintaining many small facilities

can constrain the economic viability of small cogeneration systems.

This study, which examined over 600 UK cogeneration installa-

tions, concluded that greater market penetration of decentralized

power generation can take place through larger cogeneration in-

stallations serving multiple sites, i.e., district energy systems.

Environmental groups are raising concerns about the emissions

associated with small distributed generation, which is generally

less efficient than larger facilities. See “Distributed Generation

Emissions,” by Nathanael Greene and Roel Hammerschlag, Natu-

ral Resources Defense Council. Draft March 16, 2000.

Wall Street Journal, “Washington Fears Power Outages Could

Cause Backlash,” June 20, 2000

Mark Spurr, “District Energy Systems Integrated with Combined

Heat and Power,” International District Energy Association for the

U.S. Environmental Protection Agency, 1999

Downloads

Published

2001-03-23

How to Cite

Spurr, M. . (2001). The Role of District Energy In Future Energy Systems. Distributed Generation &Amp; Alternative Energy Journal, 16(2), 22–47. https://doi.org/10.13052/dgaej2156-3306.1624

Issue

Section

Articles