District heating may help reduce environmental impact and energy costs, but policy instruments and waste management may influence operations. The energy system optimisation model MODEST has been used for 50 towns, regions and a nation. Investments and operation that satisfy energy demand at minimum cost are found through linear programming. This paper describes the application of MODEST to a municipal utility, which uses several fuels and cogeneration plants. The model reflects diurnal and monthly demand fluctuations. Several studies of the Linköping utility are reviewed. These indicate that the marginal heat cost is lower in summer; a new waste or wood fired cogeneration plant is more profitable than a natural-gas-fired combined cycle; material recycling of paper and hard plastics is preferable to waste incineration from an energy-efficiency viewpoint; and considering external costs enhances wood fuel use. Here, an emission limit is used to show how fossil-fuel cogeneration displaces CO2 from coal-condensing plants.

Both energy supply and waste treatment give rise to negative effects on the environment, so-called external effects. In this study, monetary values on external costs collected from the EU's ExternE project are used to evaluate inclusion of these costs in comparison with an energy utility perspective including present policy instruments. The studied object is a municipal district heating system with a waste incineration plant as the base supplier of heat. The evaluation concerns fuels used for heat production and total electricity production, for scenarios with external costs included and for a scenario using the present policy instrument. Impacts of assumptions on marginal power producers (coal or natural gas power plants) are investigated, since locally produced electricity is assumed to replace marginal power and thus is credited for the avoided burden. Varying levels of external costs for carbon dioxide emissions are analysed. The method used is an economic optimisation model, MODEST. The conclusion is that present policy instruments are strong incentives for cogeneration, even when external costs are included. Waste is fully utilised in all scenarios. In cases where coal is the marginal power producer, more electricity is produced; when natural gas is the marginal power producer, less is produced. There are several uncertainties in the data for external costs, both methodological and ethical. In the ExternE data, not all environmental impacts are included. For waste incineration, ashes are not included, and another difficulty is how to treat the avoided burden of other waste treatment methods. 

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.

The aim of this study is to investigate the potential use of natural gas for heat and power production for the municipality of Linkoping, Norrkoping and Finspang in the County of Ostergotland, Sweden. The results of the study revealed that these three municipalities with the present heating demand can convert 2030 GWh/year of the present fuel mixed to natural gas. The expansion of natural gas provides the possibility to increase the electricity generation with approximately 800 GWh annually in the County of Ostergotland. The global emissions of CO(2) reduce also by approximately 490 ktonne/year by assuming the coal condensing power plant as the marginal power plant. The total system cost decreases by 76 Mkr/year with the present electricity price which varies between 432 and 173 SEK/MWh and with 248 Mkr/year if the present electricity price increases to 37% which is approximately corresponding to European electricity prices. Sensitivity analysis is done with respect to the different factors such as price of electricity, natural gas, etc. The findings show that increased price of electricity and increased district heating demand increases the profitability to convert to natural gas using CHP plant. (C) 2008 Elsevier Ltd. All rights reserved.

The objective of the study is to analyse the conditions for connection of residential buildings in heat sparse areas to district heating systems in order to increase electricity production in municipal combined heat and power plants. The European electricity market has been assumed to be fully deregulated. The relation between connection of heat sparse areas, increased electricity and heat production as well as electricity prices, fuel prices and emissions rights is investigated. The results of the study show that there is potential to expand the district heating market to areas with lower heat concentrations in the cities of Gavle, Sandviken and Borlange in Sweden, with both economic and environmental benefits. The expansion provides a substantial heat demand of approximately 181 GWh/year, which results in an electricity power production of approximately 43 GWh/year. Since the detached and stand-alone houses in the studied heat sparse areas have been heated either by oil boiler or by direct electricity, connection to district heating also provides a substantial reduction in emissions of CO(2). The largest reductions in CO(2) emissions are found to be 211 ktonnes/year assuming coal-fired condensing power as marginal electricity production. Connection of heat sparse areas to district heating decrease the system costs and provide a profitability by approximately 22 million EURO/year for the studied municipalities if the price of electricity is at a European level, i.e. 110 EURO/MWh. Sensitivity analysis shows, among other things, that a strong relation exists between the price of electricity and the profitability of connecting heat sparse areas to district heating systems.

The objectives of this study are to present a model for biogas production systems to help achieve a more cost-effective system, and to analyse the conditions for connecting combined heat and power (CHP) plants to the biogas system. The European electricity market is assumed to be fully deregulated. The relation between connection of CHP. increased electricity and heat production, electricity prices, and electricity certificate trading is investigated. A cost-minimising linear programming model (MODEST) is used. MODEST has been applied to many energy systems, but this is the first time the model has been used for biogas production. The new model, which is the main result of this work, can be used for operational optimisation and evaluating economic consequences of future changes in the biogas system. The results from the case study and sensitivity analysis show that the model is reliable and can be used for strategic planning. The results show that implementation of a biogas-based CHP plant result in an electricity power production of approximately 39 GW h annually. Reduced system costs provide a profitability of 46 MSEK/year if electricity and heat prices increase by 100% and electricity certificate prices increase by 50%. CO2 emission reductions up to 32,000 ton/year can be achieved if generated electricity displaces coal-fired condensing power.