Søren Djørup

This paper addresses economic aspects of heat savings in the context of strategic heat planning. The analysis uses the city of Aalborg, Denmark, as a case where municipalisation through a recent acquisition of a coal-fired cogeneration of heat and power (CHP) plant has made an update of a municipal strategic energy plan necessary. Combining datasets on buildings and insulation techniques with economic methods, we investigate how the local district heating tariff can be adapted to improve the conditions for heat savings and support the transition to lower supply temperatures in line with the requirements of future fourth generation district heating systems. The paper concludes that implementing a fully variable heat tariff scheme improves the financial incentive for heat savings, while also making the system development less vulnerable to fluctuations and shortages in capital markets. The paper supplements existing literature on heat savings with novelty in its approach and in its systematic investigation of the interplay between tariff policies and interest rates.

Islands typically have sensitive energy systems depending on natural surroundings, but innovative technologies and the exploitation of renewable energy (RE) sources present opportunities like self-sufficiency, but also challenges, such as grid instability. Samsø, Orkney, and Madeira are in the transition to increase the RE share towards 100%—however, this is addressed in different ways depending on the local conditions and current development phases in the transition. Scenarios focusing on the short-term introduction of new technologies in the energy systems are presented, where the electricity sector is coupled with the other energy sectors. Here, both smart grid and sector-integrating solutions form an important part in the next 5–15 years. The scenarios are analyzed using the modeling tool EnergyPLAN, enabling a comparison of today’s reference scenarios with 2030 scenarios of higher RE share. By including three islands across Europe, different locations, development stages, and interconnection levels are analyzed. The analyses suggest that the various smart grid solutions play an important part in the transition; however, local conditions, sector integration, and balancing technologies even more so. Overall, the suggestions complement each other and pave the way to reach 100% RE integration for both islands and, potentially, other similar regions.