Towards the Third Energy Transition
District heating (also known as heat networks or teleheating) is a system for distributing heat generated in a centralized location through a system of insulated pipes for residential and commercial heating requirements such as space heating and water heating.
Benefits of using district heating
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Steady temperature
District heating provides a steady indoor temperature at the desired level which is not dependent on the outdoor temperature. Room temperature can be automatically controlled using underfloor heating or radiators.
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Low price of energy
Based on average district heating prices. Iceland citizen pay 1.24 US cents per kWh of thermal energy. Russian citizen pay almost x2 as much for there heating or 2.16 US cents per kWh (Euroheat & Power, 2014).
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Improves energy efficiency, reduces CO2, reduces running costs
It makes a lot of sense from an efficiency point of view to have one large centralised heat source supplying all of the buildings and properties in a scheme, rather than each having a separate small boiler.
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Improved air quality in cities
District heating for example based on geothermal energy has a extremely low CO2 emission ration. No emission are released "onsite" in the municipality. Basically no smog or fog from burning fossil fuels, just clear skies.
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Ideal for off grid areas
District heating is a very popular option in geographical areas located off the mains gas grid and therefore making a large renewable heat source a great option in terms of running costs compared to heating oil or LPG etc.
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No individual boilers to worry about
A district heating network has a central heat source supplying heating water, which enable the heat created to be distributed and metered – completely replacing the requirement for individual boilers in each property
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Supports national energy interests
The concept of district heating strongly supports
- To reduce greenhouse gas emissions through the use of a wide range of low carbon and renewable heat sources.
- To improve security of energy supply by diversifying the energy sources for heating and reducing a counties dependence on fossil fuel imports.
- To offer a supply of heat that is good value and that contributes to reducing fuel poverty.
Frequently asked questions
Icelandic companies are willing to showcase and assist municipality's in performing feasibility studies, design, assist with construction and operations of geothermal district systems or hybrid system solutions.
- The best solution, were available, is district heating & cooling of cities using geothermal baseload backbone with co-generation from other renewables and gas (if water temperature is not sufficient).
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- Pre-feasibility study – desktop study
- Exploration and feasibility study
- Drilling of wells and conformation of resource
- District heating construction
- Commissioning of the whole installation
- Icelandic companies are willing to assist in all stages of development. It is however beneficial to have local partners involve from the beginning.
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- District heating systems require a large upfront investment. The pay back period can be assumed to be 40 years.
- Operation and lifetime is in excess of 80 years, depending on the nature of the resource.
- Parts of Reykjavik district heating system are over 100 years old and are still fully operational .
- With regards to financing, the levels of investment vary from ca. 1 to 1.5 Mio €/MWth installed.
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