energy is now being added to the mix, with the goal to ultimately
be 100 percent renewable.
District energy infrastructure has also enabled relatively swift
national transitions in primary energy consumption. For example,
since 1980 Sweden has accomplished a dramatic shift in its energy
sources, largely facilitated by district heating. Between 1980 and
2008, district heating grew by 76 percent. Figure 2 shows the
evolution of district heating fuels/energy sources in district heating
systems. Sweden drastically reduced its use of oil, shifting from 89
percent oil dependency in 1980 to 7 percent in 1990. By 1990,
Swedish district heating systems had transitioned to 32 percent
renewable energy sources, growing to 77 percent by 2008.
Local Energy Means Local Jobs
By tapping local energy instead of imported energy, district
energy boosts local and national economies. For example, in
St. Paul, the district energy system now injects $10 million into
the local economy each year to procure and process the tree
trimmings and other urban waste wood fuel it uses to produce
heating, cooling and electricity. This figure does not include
the spin-off jobs created as the fuel workers spend their wages
for such things as groceries, transportation, and other goods
and services.
The economic benefits of transforming energy sources with
district energy can also be seen on a national scale. For example,
associated with the rapid transition in energy sources in Sweden
as illustrated above was a decoupling of gross domestic product
from fossil fuel use and associated greenhouse gas emissions
(figure 3). Sweden’s GDP grew by 48 percent between 1990 and
2007, while in the same time period the emissions of greenhouse
gases decreased by 9 percent. A major factor behind this ‘
decoupling’ – breaking the correlation between economic growth and
emissions – was the dramatic increase in use of renewable energy
for district heating.
Bottom Line
Returning to the climate science, here is the bottom line: The
vast majority of scientists conclude that the impacts of climate
Figure 3. Decoupling of Gross National Product From Greenhouse
Gas Emissions in Sweden.
160
150
140
130
Index
120
110
100
90
80
1990 1995 2005
GDP Growth
GHG Emissions
2000
Year
Source: Svebio.
change could be huge, negative and expensive. There’s a lot we
simply don’t know and can’t predict. So, let’s stay on our toes
– let’s consciously build flexibility into our energy infrastructure.
District energy should be a part of that flexibility.
I am not suggesting that district energy is the only answer
for heating and cooling buildings – rather, that it can be a
powerful and flexible infrastructure for the denser areas of the
built environment. In a rapidly urbanizing world, such areas are
where the greatest challenges lie in sustainably meeting our
energy requirements.
District energy systems provide flexible infrastructure
to reduce carbon intensity in meeting a major
chunk of our energy requirements – heating and
cooling buildings.
A study is now being undertaken for the International
Energy Agency to quantify the fossil fuel and greenhouse gas
reduction impacts of a wide range of district energy technologies
in comparison with a range of building heat and cooling systems
in six climate conditions. (This study is titled “Fundamental
Benefits of District Heating and Cooling to Society and a Model
to Quantify and Evaluate the Benefits,” by FVB Energy and BRE
for the Inter-national Energy Agency Implementing Agreement on
District Heating and Cooling, including Implementation of CHP.)
The purpose of the analysis is to move beyond simplistic (mis)
evaluation of district energy to a more thorough and broader
consideration of the role of district energy in national and
international energy policy. It is our hope that this report can
help policy makers better understand the potential contribution
of district energy to a sensible and practical energy policy.
In the U.S., the bipartisan Thermal Renewable Energy and
Efficiency Act was introduced in 2010 to stimulate investments
in low-carbon thermal energy infrastructure, focusing on use of
renewable energy to supply heating and cooling. This bill, which
will likely be reintroduced in the next Congress, deserves bipartisan
support as a common sense step – a flexible energy approach that
will help the U.S. ‘hedge its bets’ on climate change.
Mark Spurr is;legislative;director;of;IDEA.;He;also
is;president;of;FVB;Energy;Inc.,;a;U.S.;consulting;firm
specializing;in;district;energy;and;CHP;business;devel-opment,;engineering;and;marketing,;with;offices;in
Minneapolis,;Minn.;and;Seattle,;Wash.;FVB;also;has
offices;in;Edmonton,;Toronto;and;Vancouver,;Canada;
and;in;Stockholm,;Västerås;and;other;cities;in;Sweden.
Spurr;represents;the;United;States;on;the;executive
committee;of;the;International;Energy;Agency;Implementing;Agreement
on;District;Heating;and;Cooling,;including;Implementation;of;CHP.;He
may;be;reached;at;mspurr@fvbenergy.com.
