Liberalized market designs for district heating networks under the EMB3Rs platform

Current developments in heat pumps, supported by innovative business models, are driving several industry sectors to take a proactive role in future district heating and cooling networks in cities. For instance, supermarkets and data centers have been assessing the reuse of waste heat as an extra source for the district heating network, which would offset the additional investment in heat pumps. This innovative business model requires complete deregulation of the district heating market to allow industrial heat producers to provide waste heat as an additional source in the district heating network. This work proposes the application of innovative market designs for district heating networks, inspired by new practices seen in the electricity sector. More precisely, pool and Peer-to-Peer (P2P) market designs are addressed, comparing centralized and decentralized market proposals. An illustrative case of a Nordic district heating network is used to assess the performance of each market design, as well as the potential revenue that different heat producers can obtain by participating in the market. An important conclusion of this work is that the proposed market designs are in line with the new trends, encouraging the inclusion of new excess heat recovery players in district heating networks. (C) 2021 Elsevier Ltd. All rights reserved.

Automated summary

Current developments in heat pumps and innovative business models are driving various industries to play an active role in future district heating and cooling networks in cities. The reuse of waste heat as an additional heat source for the district heating network, especially by supermarkets and data centers, is being evaluated to offset the investment in heat pumps. Inspired by practices in the electricity sector, this study proposes innovative market designs for district heating networks, comparing centralized and decentralized approaches. Using a Nordic district heating network as a case study, the performance of each market design and the potential revenue for different heat producers are assessed. A key conclusion is that the proposed market designs align with new trends, promoting the inclusion of new players in excess heat recovery in district heating networks.