District Heating and Cooling in the United States Prospects and Issues (1985) / Chapter Skim
Currently Skimming:
3 The Market for District Heating and Cooling
3 The Market for District Heating and Cooling
Pages 39-56
The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.
From page 39... ...
This scenairo assumes that nothing additional will be done to encourage district heating. A second scenario shows that an additional 1.5 quadrillion Btu could be provided, using the Argonne model, if Congress clarifies the IRS tax regulations regarding depreciation of energy equipment and enacts energy investment tax credits for district heating (similar to those provided for other energy conservation devices)
|
From page 40... ...
40 Quads 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1 .0 0.5 / 1' I Capital Support /~ Im/proved I Regulatory I Financial Incentives ~- Demonstrations / I Project Packaging Technical Assistance ~ . Base Case 1984 1988 1992 1996 2000 2004 FIGURE 3-1 District heating market penetration (courtesy Argonne National Laboratory)
|
From page 41... ...
System size will vary by city, as will the end user's costs for thermal energy e These var tables will determine the value to the local economy of district heating and cooling development (Argonne National Laboratory, 1981~. PROSPECTS AND USES Chapter 2 noted six conditions that have favored district heating in Europe: densely populated areas, cold winters, nearby cheap energy sources, high prices for imported oil and gas, the technical ability to cogenerate, and utilities with the capacity to supply adequate heat and power during long, cold winters.
|
From page 42... ...
TABLE 3-2 Scarce Fuel Savings from Cogeneration District Heating Residential and Commercial Applications Million Barrels of Oil Case Quads (equivalent) _ Base -0.102 Improved regulation 1.038 Financial incentives 1.779 SOURCE: Adapted from Argonne National Laboratory l -17.58 178.95 306.70 .
|
From page 43... ...
43 TABLE 3-3 National District Heating and Cooling Employment Generation Construction Employment Expenditure All Job (Millions of Dollars) Years Job Years Case Construction Base 2,88267,43927,091 Improved regulation 40,298942,973378,801 Financial incentives 70,5321,650,449663,001 SOURCE: Argonne National Laboratory TABLE 3-4 Retention Model United States -- Base Case $/MMBTUa $/MMBTUa Capita1 Retained O&M Retained Fuel Retained Retained 11.09 5.55 4.71325 2.77 2.77 2.77 0.27725 7.76 MMBTU sold 325,485 Retention Factors Total $ retained 2,526,740.06 Local multiplier 3 Capital 0.85 Years 20 O&M 1 Annual cities Fuel 0.1 benefit 379,011.01
|
From page 44... ...
81 10.0385 5.91 5.91 MMBTU sold Total $ retained Local multiplier Total cities benefit Years Annual cities benefit 3,404'910 56,296, 781.94 3 168, 890, 345.82 20 8, 444, 517.29 MMBTU means 1 million or 106 Btu. SOURCE: Argonne National Laboratory .
|
From page 45... ...
They may also vary depending on whether the system is municipally owned or incorporated, an investor-owned utility, or an institutional system. A cold climate, for instance, reduces the relative cost of distributing thermal energy by extending peak heating demands over a longer time.
|
From page 46... ...
Day Factora Northeast and North Central Boston 5,621 g 56 0.28 Milwaukee 7,444 -4 69 0.30 Minneapolis-St. Paul 8,159 -12 77 0.29 South and West Los Angeles 1,819 40 25 0.20 Baltimore 4,729 13 52 0.25 Dallas 2,382 22 43 0.15 Memphis 3,227 18 47 0.19 Seattle 5,185 26 39 0.36 2The load factor is calculated by dividing the total heating degree days by the product of degrees below 65°F on the heating design day (the systems designed peak load)
|
From page 47... ...
New York 5,000 7,895 41.3 25.6 Metropolitan area. NOTE: European cities listed are known to have extensive district heating systems.
|
From page 48... ...
In fact, four new commercial structures designed without individual boilers were under construction in 1983. The Trenton system cogenerates electricity and thermal energy using diesel generators providing hot exhaust gas to a supplementary fired boiler that recovers the waste heat.
|
From page 49... ...
In the United States, four military installations in San Diego -- the Naval Training Center, Marine Corps Recruiting Depot, San Diego Naval Station, and North Island Naval Air Station -- buy steam from Energy Factors Company, a former subsidiary of San Diego Gas and Electric Company. The latter had supplied downtown San Diego with district heating since 1921.
|
From page 50... ...
~50 ,',:,;.,~,-,f.'.~::" 2'>-':,<~'',.,.2 ~ FIGURE 3-2 Starrett City: A New York community served by district heating and cooling (Star rett City Energy Office, Grenadier Realty Corporation)
|
From page 51... ...
While many universities and colleges have their own systems, others buy thermal energy from off-campus systems. The Indianapolis Power and Light Company, for example, sells steam for district heating to the campuses of both Indiana and Purdue universities in Indianapolis.
|
From page 52... ...
52 550 500 450 400 us in 350 LL o cr UJ ~ 250 in 200 300 i' l Total Growth in College District Heating; \ l Steam Only, 150 I_ Hybrid-Steam and Hot Water ~doff 100 50 o 1900 19:10 1920 1930 1940 1950 1960 1970 1980 r' Cut HI r~_~_ ,~-'.W ~ ~ Hot Water Only YEARS FIGURE 3-3 The growth of district heating on college campuses (NADHCI Newsletter, October 24, 1983)
|
From page 53... ...
53 500 450 400 UJ In 11 o a: UJ m me 350 300 250 200 150 100 so Total DHC Cool ing Growth ~1 1 l I / Distributed Chilled Water Based Systems I I/ ' 1i \i J Use of Absorpti°n Equips ~j/ L 1900 1 910 1920 1 930 1940 1950 1960 1970 1980 YEARS FIGURE 3-4 The growth of district cooling on college campuses (NADHCI Newsletter, October 24, 1983~.
|
From page 54... ...
. Coal Refuse Other Fuels used in campus systems (NADHCI Newsletter, October 24,
|
From page 55... ...
Colleges and universities also have access to the lowest interest rates on loans because, like municipal governments, they can pledge their "full faith and credit." As for commercial markets, reliability and the Btu-equivalent comparisons are important. There is considerable debate as to whether district heating and cooling can serve residential customers economically because of distribution costs.
|
From page 56... ...
When all of the prospects and potential markets for district heating and cooling systems are evaluated, the most important considerations are the trends discussed in Chapter 2: urban, investor-owned utility systems continue to stagnate or decline, urban systems owned by municipal governments or nonprofit corporations continue to expand slowly, and institutional systems continue to expand rapidly. A number of factors have contributed to the decline of utility-owned urban systems and the slow growth of municipal ones (IEA, 1983~: o Low regulated prices for easily obtained fuels such as oil and natural gas.
|
Key Terms
This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
More
information on Chapter Skim is available.