Impact from policy instruments on use of industrial excess heat

Increasing resource efficiency and reducing carbon emissions in manufacturing industry are prioritised objectives in both international and domestic policies. At the same time, Swedish industry is struggling to remain competitive in international markets. There is at the same time increasing internal competition for bio-based resources among sectors. Currently there are a number of taxes, restrictions and other policy instruments targeted with the goals to increase the use of renewable energy, reduce greenhouse gas emissions and improve energy efficiency. Excess heat from industry accounts for almost 5 TWh of the delivered heat to district heating in Sweden today but there is a potential for further recovery of excess heat. An increased utilization of industrial excess heat is desirable in terms both of improved energy efficiency and resource efficiency. This project describes the impact from existing policy instrument on one important solution to improve the energy- and resource efficiency of the energy system: the use of industrial excess or residual heat for district heating networks. There are several policy instruments with an impact but only a few that gives benefits for the use of industrial excess heat. The Regulated Access to the district heat implemented in the Swedish policy for district heating, put up guidance regarding under which conditions an industry can demand access, and point out that the cost should be taken by the industry part. The Energy Efficient Directive governs that a complete cost benefit analysis including existing industrial excess heat must be examined when planning a new process or plant. And the market-based support system for renewable electricity production, the electricity certificates. In the case of chemical industries in Stenungsund excess heat could be delivered to the district heating networks in Kungälv and/or Gothenburg. An optimisation in a regional cost minimising model of the energy system in Västra Götaland of Sweden shows the possibilities to deliver heat. In this report the consequence on the used amount of excess heat from electricity certificates are presented. The studied energy system of Västra Götaland will use more excess heat for district heating when there is no or low price on the certificates. This report is only available in English.

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Last updated: 2021-05-05

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