The next boost in profits for energy companies will come from their customers

“We are seeing considerable interest from district heating companies who want to decrease system temperatures in their grids. By doing so, they can utilise the grid better, cut heat loss and optimise production,” says Erik Hooft of FVB.

FVB has found that there is considerable benefit from reducing system temperatures in the district heating grid and has worked on these issues for 20 years. Finely tuned control systems are the key to getting a district heating system to work efficiently. However, such control systems are usually owned by the customers and not the energy company. Nevertheless, it’s the energy company that knows how control systems affect the district heating system.

“High fuel prices have increased interest from district heating customers to look at how they can cut costs throughout the system, so we’re dealing with enquiries from several companies at the moment,” says Hooft.

This means that FVB is looking at how the customer’s district heating control system is performing, which includes analyses of cold and hot days, along with specific analyses of how the control system performs throughout the year.

“We also check the supply and return temperatures in the district heating control system, and how effective the cooling process is,” says Hooft.

Prioritised district heating control systems
To see which control systems need to be prioritised, FVB uses the energy company’s Q/W readings, which show how efficiently each customers utilises the district heating flow. In some projects, FVB goes further and analyses what is happening on the secondary side to check whether the district heating customer can optimise its plant.

What causes an error in district heating control systems can vary. It can be anything from a simple fault causing a valve to stick, to more extensive problems in the property's system.

“If the building has a hot water circulation system that constantly maintains a temperature of over 50 degrees C, the district heating water can quite simply not be cooled below that level. The return temperature will never be lower than what the system requires, making this type of solution a challenge.”

Older properties are often dimensioned for higher supply temperatures. When the heating system was dimensioned, calculations were made to define the size of radiators required, but because radiators are manufactured in standard sizes, many properties probably chose a bigger size than was needed. Energy-saving measures introduced over the years might also have reduced heating demand.

“This means that the radiators are often too big when compared with the original dimensioning, which leaves a margin that can be utilised to reduce the temperature level in the property's system. The demand for higher temperatures in radiator systems is therefore less than what industry experts have previously thought,” says Cilla Dahlberg Larsson of FVB, and continues:

“A problem with this process is that the district heating customer rarely notices whether a system is inefficient. They get heating in the building and hot water in the taps even if the district heating control systems are inefficient and send hot water back unnecessarily. In such instances, it’s up to the district heating company to notify the customer.”

Important dialogue
The customer's financial incentive is a flow penalty, but that will usually only be around 2–5% of the total cost, which is often not enough to make the customer want to make major adjustments to the district heating control system. In such instances, the energy company needs to initiate dialogue with its customers to help them find a solution, according to Hooft.

“Good energy performance and high environmental value can be a persuasive and important argument for commercial customers,” adds Hooft.

For more details, contact:
Erik Hooft, +46 08-5947 61 87

Five tips for energy companies that want lower return temperatures

Calculate the cost of your district heating system
The energy company should calculate how much money can be saved internally by lowering the temperature level. Part of this process is to calculate what each customer with poor cooling costs in the district heating system. That creates an incentive for the district heating company to consult with its customers to find cost-efficient measures that will benefit both the customers and the district heating company.

Be proactive and offer service agreements
The energy company should contact district heating companies with poor Q/W readings and offer help. It is unlikely that the customer will ask for help, as they rarely notice a problem with their district heating control systems as long as they receive heating and hot water as intended. 
By offering the customer regular maintenance for a monthly fee, the energy company can ensure that the plant is dimensioned for the correct demand even if changes have been made to the property. It is also an excellent opportunity to catch problems early.

Share the cost of necessary measures
In some instances, it can be worthwhile for the energy company to subsidise some of the cost of correcting faults in the district heating control system, as an efficient plant yields major savings for the energy company.

Train plumbers
Plumbers correct faults in district heating control systems and adjust heating systems for the customers, but they are not always aware of how the property's system affects the district heating grid. It can be worthwhile for the energy company to offer plumbing contractors free training. Everyone benefits as a result.

Communicate in a way the customer understands

Translating technical problems into return temperatures and individual CO2 emissions rather than talking about the Q/W reading, which can be perceived as highly abstract, may be beneficial for private customers in particular.


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