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Calculating the marginal costs of a district-heating utility
Linköping University, The Institute of Technology. Linköping University, Department of Mechanical Engineering, Energy Systems.
Linköping University, The Institute of Technology. Linköping University, Department of Mechanical Engineering, Energy Systems.
2004 (English)In: Applied Energy, ISSN 0306-2619, Vol. 78, no 1Article in journal (Refereed) Published
Abstract [en]

District heating plays an important role in the Swedish heat-market. At the same time, the price of district heating varies considerably among different district-heating utilities. A case study is performed here in which a Swedish utility is analysed using three different methods for calculating the marginal costs of heat supply: a manual spreadsheet method, an optimising linear- programming model, and a least-cost dispatch simulation model. Calculated marginal-costs, obtained with the three methods, turn out to be similar. The calculated marginal-costs are also compared to the actual heat tariff in use by the utility. Using prices based on marginal costs should be able to bring about an efficient resource-allocation. It is found that the fixed rate the utility uses today should be replaced by a time-of-use rate, which would give a more accurate signal for customers to change their heat consumptions.

Place, publisher, year, edition, pages
2004. Vol. 78, no 1
National Category
Engineering and Technology
Identifiers
URN: urn:nbn:se:liu:diva-22977DOI: 10.1016/S0306-2619(03)00120-XLocal ID: 2349OAI: oai:DiVA.org:liu-22977DiVA: diva2:243290
Available from: 2009-10-07 Created: 2009-10-07 Last updated: 2011-01-12

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Sjödin, JörgenHenning, Dag

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