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Cost-effective incentives for end-use measures in a Swedish municipality
Linköping University, Department of Mechanical Engineering. Linköping University, Faculty of Science & Engineering.
Linköping University, Department of Mechanical Engineering. Linköping University, Faculty of Science & Engineering.
1996 (English)In: Proceedings of the International Symposium [on] Efficiency, Costs, Optimization, Simulation and Environmental Aspects of Energy Systems: ECOS'96, Stockholm, Sweden, June 25-27, 1996 / [ed] Per Alvfors, Stockholm: KTH Royal Institute of Technology, 1996, p. 557-564Conference paper, Published paper (Refereed)
Abstract [en]

If actors on the electricity market cooperate when end-use measures are introduced the energy-system, cost will be reduced considerably. The marginal cost for electricity for the energy system of the actors will show cost effective incentives for introducing end-use measures. We present a system analysis for cooperation between distributors and customers. We also present results from a project where an existing distributor and eleven existing customers within a municipal energy system have been analysed. The customers are various industries, a hospital, an ice hockey arena, a harbour, a water-works, a warehouse, and a radio tower. The results show that the customers have in different end-use measures a power reduction capacity of maximum 8642 kW. With electricity costs of 1994 this corresponds to a reduction in the energy system cost of 2,852,000 SEK for one year. The results also show that for the distributor`s load curve of 1994, the full power reduction capacity can not be used since the peak loads of the five winter months are not so large and distinct. In that case the energy system cost can be reduced by 1,909,000 SEK, which is 67% of the maximum cost reduction. The end-use measures that are cost effective in this municipal energy system are load management and electricity generation in reserve power plants. We have also studied the profitability for introducing bivalent heating systems based on oil and electricity for heat loads that originally are based on oil. However, with existing electricity and oil costs there are no incentives for increasing the electricity use during non-peak load periods with bivalent heating systems.

Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 1996. p. 557-564
Series
Trita-KET, ISSN 1104-3466 ; 52
National Category
Energy Systems
Identifiers
URN: urn:nbn:se:liu:diva-165080ISBN: 917170664X (print)OAI: oai:DiVA.org:liu-165080DiVA, id: diva2:1423224
Conference
International Symposium on Efficiency, Costs, Optimizations, Simulation and Environmental Aspects of Energy Systems, Stockholm, June 25-27, 1996
Available from: 2020-04-14 Created: 2020-04-14 Last updated: 2020-04-14Bibliographically approved
In thesis
1. Cooperation in local electricity markets: modelling of technical measures
Open this publication in new window or tab >>Cooperation in local electricity markets: modelling of technical measures
1997 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

This thesis presents a system analysis for co-operation in local electricity markets including distributors and customers. The purpose of co-operation is to minimise the system cost of local markets by introducing system measures, such as end-use measures and municipal co-generation plants. Co-operation will strengthen the position of local markets in the national as well as future international electricity markets. With end-use measures local markets will achieve flexibility, additional reserve capacity and ability to avoid sudden large costs for peak loads. Biomass-fired cogeneration plants can become of great importance in an international market. In Sweden there is a simultaneous demand for electricity and district heating, many local markets already include district heating systems and there are major forest areas which can contribute with renewable fuel. The system analysis is partly based on the simulation model (INDSIM) and the linear programming model (MODEST). The simulation model has been further developed (STRATO) to include calculation of system costs. Shadow price analysis has been developed in order to study incentives for system measures. Calculation procedures have been developed that describe cooperation between distributor and customer. Six case studies of a selection of real, existing local markets in Sweden are presented. The studies show the potential economical effects of co-operation measured by system costs and shadow prices. Co-operation has been considered between demand- and supply-side, electricity- and district heating systems and also between different time periods. In a typical local market with 90 000 inhabitants, if end use measures are introduced without cooperation the system cost of the distributor will increase by 14 million SEK for a time period of 25 years. If instead end-use measures are introduced in co-operation, together with a biomass-fired cogeneration plant, the system cost of the local market will be reduced by 444 million SEK. Furthermore, the use of biomass in the local market is increased from 36 to 72 % while the use of oil is decreased from 34 to 1%. Another case study of another local market (50 000 inhabitants) shows that end-use measures will reduce the system cost (excluding investment costs) of an industry by 50 % corresponding to 1.3 million SEK for one year. The end-use measures imply reduced power demand during peak load periods in the local market and increased power demand during non- peak load periods.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 1997. p. 79
Series
Linköping Studies in Science and Technology. Dissertations, ISSN 0345-7524 ; 470
Keywords
Energy system, System cost, Electricity market, Co-operation, Demand-side management, Energy efficiency, Shadow prices
National Category
Energy Systems
Identifiers
urn:nbn:se:liu:diva-165083 (URN)10.3384/diss.diva-165083 (DOI)917871897X (ISBN)
Public defence
1997-04-18, C3, C Building, Linköping, 10:00 (Swedish)
Opponent
Supervisors
Available from: 2020-04-14 Created: 2020-04-14 Last updated: 2020-05-04Bibliographically approved

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Andersson, MariaKarlsson, Björn

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