Local Success Stories

Country

Germany

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Name of Example

Location

1

District Heating Development Project Mannheim

Mannheim

The Initiative

MVV Energie AG (MVV Energy plc) wants to significantly develop the District Heating supply in the area of Mannheim, Germany. The current market share of District Heating in Mannheim is at around 59 %. MVV Energie wants to raise that share to 70 %. This translates to 4.000 buildings with 20.000 apartments being connected to the District Heating network.

In close cooperation with the city of Mannheim the concept was approved after extensive analysis. The extensive analysis comprised the company as a whole, factoring in declining sales of natural gas among other things (MVV Energie also sells natural gas) and the market potential in the region of Mannheim.

Driving forces behind the initiative was the incorporation of the District Heating development project into the climate protection programme of the city of Mannheim and the contribution of District Heating based on CHP for climate change goals on all levels, regional, federal and European. For the company the fact that it can operate in a liberal, unregulated market was another criteria since such an environment leaves room for the expected growth of District Heating, all while providing secure, environmental friendly and reasonably priced heating for the customers. The favourable legislative framework, described in detail before, was another driving force behind the initiative.

The project consists of different measures to achieve the main goal of raising the market share of District Heating to 70 %. The concept marks a change in the basis of decision-making. There is a transition from network-based decision processes to area based decision processes. Existing networks are being intensified in the whole area of Mannheim. On top of these intensification measures the network is also extended in different areas of the city. In a first step the areas of Rheinau, Neckarstadt and Käfertal will be developed on a large scale. Around 30 km of new heating pipelines will be laid. In order to convince customers to switch from their current heating solution to District Heating an incentive programme is introduced by MVV Energie. There is a bonus paid for each kW of the connected load and there is a lump sum being paid if an old oil tank needs to be disposed of. On average all buildings falling under the incentive programme’s criteria are paid a bonus of EUR 2.700 with a maximum of EUR 5.500 if a central heating system (based on oil or gas) is already in place, EUR 10.500 if no central heating system is installed and EUR 1.260 for buildings with a connected load below 30 kW. This incentive programme is accompanied by a marketing and communication campaign, informing customers about the benefits of District Heating and CHP and how heating with District Heating is beneficial for fulfilling legal criteria on energy efficiency and the use of renewable energy sources in buildings. The marketing and communication strategy also involves a contribution towards the city of Mannheim’s climate protection programme and a combination of efforts to help the city of Mannheim to reach its climate change goals.

Nature of the impact

District heating is currently reducing CO₂-emissions in Mannheim by approximately 300,000 t annually. The District Heating Development Project Mannheim will reduce CO₂-emissions by an additional 17,600 t annually. Likewise primary energy savings attributed to District Heating amount to 1,955,000 MWh annually in Mannheim, with the District Heating Development Project Mannheim adding an additional 115,000 MWh of primary energy saved per year.

On top of these ecological benefits the District Heating Development Project Mannheim also has a positive effect on society, especially in the region itself – contributing to the regional value creation. The investment volume of the District Heating Development Project Mannheim amounts to EUR 50 M, whereas most of the contractors are located in the Mannheim region. The District Heating Development Project Mannheim initiates further investments in the renovation and retrofitting of heating systems, which account for another EUR 120 M. Accompanying refurbishment measures in the building stock for heat insulation and other measures add up an additional EUR 30 M.

The effect on employment translates to 4,000 man-years. Over 50 % of the effect on employment will affect the Mannheim region.

The general design characteristics of the District Heating system in Mannheim are as follows:

These figures are based on 2007/08 and do not include the process steam business, which is part of MVV Umwelt’s business.

The three plants supplying the District Heat to the network are:

The initiative will help the city of Mannheim to achieve their climate change goals while still maintaining a secure, environmentally friendly and reasonably priced supply of heat for the city.

Main Barriers

Due to the efforts undertaken in communicating the ideas of the District Heating Development Project Mannheim the project has faced no resistance. Depending on the circumstances and the framework in place additional stages of expansion are being considered for the future (after 2014).

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Name of Example

Location

2

Energy concept Dresden 2020

Dresden

The Initiative

DREWAG - Stadtwerke GmbH (DREWAG - Dresden Public Services llc) has been developing district heating in Dresden rapidly between 1990 and 2000. In 1990 Dresden’s district heating grid was composed of a total pipeline length of 280 km, including the central district heating grid and island grids. In the time between 1990 and 2000 DREWAG has built nearly 200 km of new pipelines. During that time DREWAG invested approximately EUR 500 M into the district heating infrastructure.

These investments into district heating and combined heat and power have more than halved CO₂-emissions in Dresden from over 2,000 kt per year in 1991 to less than 1,000 kt per year in 2000. Other emissions, like dust, particulate matter, SO₂ and NO_x were significantly reduced as well. In the same timeframe electricity production in Dresden tripled from 500 GWh in 1992 to 1,600 GWh in 2000. This rise in electricity production from combined heat and power makes DREWAG the largest contributor to CO₂-emission reductions in Dresden. Currently and in comparison with figures from 1993, over 50% of the CO₂-emission reductions in Dresden can be attributed to DREWAG. Outside of Dresden the electricity production in combined heat and power reduces CO₂-emissions by an additional 1 M t of CO₂ per year, substituting electricity predominantly from condensing power plants.

This development could be regarded as a best practice example for the development of district heating by itself, but DREWAG wants to take district heating even further with the new energy concept 2020.

Starting point was the decrease in district heat delivery. District heat delivery fell sharply when industrial consumers faced a fast economic downfall in the time following the German reunification. Large scale energetic refurbishment of the building stock coupled with low spending power lead to a further reduction of district heat delivery. An alleviated development is expected in the future. Therefore DREWAG developed an energy concept for 2020, analyzing the potential for district heating in Dresden. The analysis revealed that Dresden that the potential for new connections to district heating amounted to 137 MW, including areas which are being supplied with natural gas at the moment.

Due to political will and the climate change debate Dresden wants to further reduce CO₂-emissions and since district heating already plays a fundamental role in contributing to climate change and energy policy goals, the city council and DREWAG have in cooperation agreed that the municipality and DREWAG should develop district heating and combined heat and power in Dresden even further. According to the city council’s decision, the share of district heating in Dresden’s heating market should be raised by 20% until 2020.

DREWAG also analysed the possibilities of mandatory heat planning but decided against encouraging Dresden to make use of this municipal toolset. The framework for district heating and market situation in Dresden allow for such an accelerated development under full market conditions.

Nature of the impact

The energy concept 2020 will contribute further to the reduction of CO-emissions both in and outside of Dresden. Realizing the full analyzed potential of 140 MW would result in a further reduction of CO₂-emissions by 70,000 t per year.

The development of district heating also has a positive effect on other social factors.

The general design characteristics of the district heating system in Dresden are as follows (figures from 2008):

The 7 plants supplying the district heating grid are:

Grid development strategy:

Violet areas: Can be connected to district heating

Blue areas: Can be connected to district heating during regional development

Black areas: Can not be connected to district heating

Main Barriers

Main barriers to the project is the circumstance that there is a debate on whether or not DREWAG is allowed to retreat from supplying natural gas in certain areas of Dresden in order to develop district heating further. Background to this discussion is that natural gas supply is regulated in Germany. The Energiewirtschaftsgesetz (Energy Industry Act - EnWG) and other regulations provide for different opinions on this subject. Since the city council is in full support of DREWAG’s plans the main barrier remains on the legal side at this point.

One barrier that could be successfully tackled, at least on the municipal level is the problem of different support mechanisms that contradict each other. Especially if they lead to a replacement of district heating by individual heating solutions, regardless of the technology they are based upon. This problem was acknowledged by the city council and it was made clear in the aforementioned decision that other measures for the reduction of CO₂-emissions have to be taken into account but that these measures should not hurt district heating.