Comparison of Suitable Business Models for the 5thGeneration District Heating System Implementation through Game Theory Approach

District Heating and Cooling (DHC) technology is widely recognised as a promising solution for reducing primary energy consumption and emissions. The 5th Generation District Heating and Cooling (5GDHC) network is the latest DHC concept characterised by low-temperature supply, bi-directional heating network operation, decentralised energy flows, and surplus heat sharing. Unlike the 4th Generation District Heating (4GDH) technology, the 5GDHC technology switched to a consumer/prosumer-oriented perspective. The introduction of 5GDHC solutions requires high investments, an important barrier to further developing DHC systems. Therefore, a novel pricing and business model could include introducing co-owners or energy managers into the system. Three different local market business models for 5GDHC at the community level have been tested. The reverse technical and economic simulation has been used for a feasibility study to determine the resources, business models, and combinations closest to the break-even point with lower costs and higher gains for all involved stakeholders. © 2023 Ieva Pakere et al., published by Sciendo

5th generation district heating and cooling (5GDHC) implementation potential in urban areas with existing district heating systems

The 5th Generation District Heating and Cooling (5GDHC) network has great advantages in terms of integration of low-temperature resources, bi-directional operation, decentralised energy flows, and possible energy sharing. One way to develop the idea and concept of 5GDHC is to identify potential agents, including residential buildings, office buildings, shopping malls, data centres, electrical transformers, and so on, in 5GDHC in each target context. The prospects for 5GDHC have been assessed in light of the conditions in the Baltics. The multi-criteria analysis method was used to quantify the main identified barriers and drivers behind the implementation of 5GDHC systems. It should be noted that new urban areas in the Baltic states are being actively developed with low-energy buildings, so 5GDHS can be integrated to supply heat to these areas. The highest score in the multi-criteria assessment was achieved by Lithuania due to support availability and open heating market conditions. When all applied criteria are weighted equally, Estonia has the most favourable conditions for 5GDHC systems due to widespread use of heat pumps and greater excess heat potential. © 2022 The Author(s