Swedish industrial and energy supply measures in a European system perspective

A common electricity market in Europe will in all probability lead to a levelling out of the electricity price, which implies that Swedish consumers will face higher electricity prices with a European structure. This new market situation will force industry and energy suppliers to take new essential measures as actors in a deregulated European electricity market. In this thesis it is shown how over 30 Swedish small and medium-sized industries can reduce their use of electricity by about 50%. When scaling up the result to include all Swedish industry, the measures will lead to a significant reduction in global CO2 emissions, and a situation where Sweden will have a net export of electricity. Changing industrial energy use towards increased use of district heating will consequently affect the local energy suppliers. As a local energy supplier invests in CHP and co-operates on heat with an industry that has altered its energy use, the system cost will be halved. Considering higher European electricity prices, the benefits will be even higher with possibilities to reduce global emission with over 350%. In Sweden where district heating is very well established, heat driven absorption technology is especially favourable since it will lead to cost effective electricity production and increased utilization time for a CHP plant. Vapour compression chillers have been compared with heat driven absorption cooling for a local energy utility with a district cooling network and for industries in a Swedish municipality with CHP. The results show that the higher the share of absorption technology is, in comparison to compression chillers, the lower the production cost will be for producing cooling. This thesis illustrates measures for Swedish industry and energy suppliers in a fully deregulated European electricity market that will shift the energy systems in the direction of cost-effectiveness and resource effectiveness. The thesis also shows that the benefits of the measures will increase even more when accounting with electricity prices with a higher European structures. To methodically change the use of electricity would be an economical way to increase the competitiveness of Swedish plant in relation to other European plants. Taking advantage of these particularly Swedish conditions will contribute to the creation of lean resource systems, and as a result help the whole EU region to meet its commitment under the Kyoto Protocol. Altering industrial energy use towards less electricity and energy dependence will be a competitive alternative to new electricity production and help secure energy supply in the European Union

Pricing district heating by marginal cost

A vital measure for industries when redirecting the energy systems towards sustainability is conversion from electricity to district heating (DH). This conversion can be achieved for example, by replacing electrical heating with DH and compression cooling with heat-driven absorption cooling. Conversion to DH must, however, always be an economically attractive choice for an industry. In this paper the effects for industries and the local DH supplier are analysed when pricing DH by marginal cost in combination with industrial energy efficiency measures. Energy audits have shown that the analysed industries can reduce their annual electricity use by 30% and increase the use of DH by 56%. When marginal costs are applied as DH tariffs and the industrial energy efficiency measures are implemented, the industrial energy costs can be reduced by 17%. When implementing the industrial energy efficiency measures and also considering a utility investment in the local energy system, the local DH supplier has a potential to reduce the total energy system cost by 1.6 million EUR. Global carbon dioxide emissions can be reduced by 25,000 tonnes if the industrial energy efficiency measures are implemented and when coal-condensing power is assumed to be the marginal electricity source.District heating Marginal cost Carbon dioxide emissions

European perspective on absorption cooling in a combined heat and power system - A case study of energy utility and industries in Sweden

Mankind is facing an escalating threat of global warming and there is increasing evidence that this is due to human activity and increased emissions of carbon dioxide. Converting from vapour compression chillers to absorption chillers in a combined heat and power (CHP) system is a measure towards sustainability as electricity consumption is replaced with electricity generation. This electricity produced in Swedish CHP-system will substitute marginally produced electricity and as result lower global emissions of carbon dioxide. The use of absorption chillers is limited in Sweden but the conditions are in fact most favourable. Rising demand of cooling and increasing electricity prices in combination with a surplus of heat during the summer in CHP system makes heat driven cooling extremely interesting in Sweden. In this paper we analyse the most cost-effective technology for cooling by comparing vapour compression chillers with heat driven absorption cooling for a local energy utility with a district cooling network and for industries in a Swedish municipality with CHP. Whilst this case is necessarily local in scope, the results have global relevance showing that when considering higher European electricity prices, and when natural gas is introduced, absorption cooling is the most cost-effective solution for both industries and for the energy supplier. This will result in a resource effective energy system with a possibility to reduce global emissions of CO2 with 80%, a 300% lower system cost, and a 170% reduction of the cost of producing cooling due to revenues from electricity production. The results also show that, with these prerequisites, a decrease in COP of the absorption chillers will not have a negative impact on the cost-effectiveness of the system, due to increased electricity production.Absorption cooling European electricity prices Natural gas Carbon dioxide Global emissions

Economic and environmental benefits of converting industrial processes to district heating

The aim of this study is to analyse the possibilities of converting production and support processes from electricity and fossil fuels to district heating in 83 manufacturing companies in three different Swedish counties. A tool for heat load analysis called Method for Heat Load Analysis (MeHLA) is used to explore how the conversions would affect the heat load duration curves in local district heating systems. Economic effects and impacts on global emissions of greenhouse gases are studied from a system perspective. The study has been conducted considering two different energy market conditions for the year 2030. The results show that there is a potential for increasing industrial district heating use in all analysed counties. When comparing all three counties, the greatest potential regarding percentage is found in Jönköping, where the district heating use in the manufacturing companies could increase by nine times (from 5 GWh to 45 GWh annually). The industrial district heating use could increase by two times (from 84 GWh to 168 GWh annually) in Östergötland and by four times (from 14 GWh to 58 GWh annually) in Västra Götaland. The conversion of the industrial production processes to district heating would lead to a district heating demand curve which is less dependent on outdoor temperature. As a result, the utilization period of the combined heat and power plants would be prolonged, which would decrease district heating production costs due to the increased income from the electricity production. In all analysed counties, the energy costs for the companies decrease after the conversions. Furthermore, the increased electricity production in the combined heat and power plants, and the decreased electricity and fossil fuel use in the industrial sector opens up a possibility for a reduction of global greenhouse gas emissions. The potential for the reduction of global greenhouse gas emissions is highly dependent on the alternative use of biomass and on the type of the marginal electricity producers. When the marginal effects from biomass use are not considered, the greenhouse gas emissions reduction is between 10 thousand tonnes of CO2eq and 58 thousand tonnes of CO2eq per year, depending on the county and the type of marginal electricity production plants. The highest reduction is achieved in Östergötland. However, considering that biomass is a limited resource, the increase of biomass use in the district heating systems may lead to a decrease of biomass use in other energy systems. If this assumption is included in the calculations, the conversion of the industrial processes to district heating still signify a  potential for reduction of greenhouse gas emissions, but this potential is considerable lower

Reduction of electricity use in Swedish industry and its impact on national power supply and European CO2 emissions

Decreased energy use is crucial for achieving sustainable energy solutions. This paper presents current and possible future electricity use in Swedish industry. Non-heavy lines of business (e.g. food, vehicles) that use one-third of the electricity in Swedish industry are analysed in detail. Most electricity is used in the support processes pumping and ventilation, and manufacturing by decomposition. Energy conservation can take place through e.g. more efficient light fittings and switching off ventilation during night and weekends. By energy-carrier switching, electricity used for heat production is replaced by e.g. fuel. Taking technically possible demand-side measures in the whole lines of business, according to energy audits in a set of factories, means a 35% demand reduction. A systems analysis of power production, trade, demand and conservation was made using the MODEST energy system optimisation model, which uses linear programming and considers the time-dependent impact on demand for days, weeks and seasons. Electricity that is replaced by district heating from a combined heat and power (CHP) plant has a dual impact on the electricity system through reduced demand and increased electricity generation. Reduced electricity consumption and enhanced cogeneration in Sweden enables increased electricity export, which displaces coal-fired condensing plants in the European electricity market and helps to reduce European CO2 emissions. Within the European emission trading system, those electricity conservation measures should be taken that are more cost-efficient than other ways of reducing CO2 emissions. The demand-side measures turn net electricity imports into net export and reduce annual operation costs and net CO2 emissions due to covering Swedish electricity demand by 200 million euros and 6 Mtonne, respectively. With estimated electricity conservation in the whole of Swedish industry, net electricity exports would be larger and net CO2 emissions would be even smaller.