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New Business Model for District Heating Firms Stabilizing the National Energy System with a Future Variable Electricity Production
KTH, School of Industrial Engineering and Management (ITM), Energy Technology.
KTH, School of Industrial Engineering and Management (ITM), Energy Technology.
2012 (Swedish)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

The aim of this thesis is to develop a new business model for district heating and cooling firms which can contribute to a stabilization of the Swedish national energy system. The business model is developed for a district heating and cooling firm and is exemplified with Fortum Heat. The theoretical investigation around the topic creates a rigid base for following qualitative empirical studies. Osterwalder’s canvas for business model generation is used together with a Casual Loop Diagram to identify a number of business opportunities which stabilizes the national energy system. One of the business opportunities is developed into a business model.

The study results in a business model which offers Svenska Kraftnät an increased volume of electricity production through free capacity in CHP plants. This stabilizes the national energy system when the electricity production from renewable energy sources is low. Free capacity occurs due to more and more energy efficient buildings and investments in new production capacity. Heat from the electricity production is loaded into thermal storages to cover a part of the future need for heat. Heat can also be rejected as surplus heat into water if the demand for electricity is high. Renewable biofuels turn CHP plants into bio-condensing electricity power plants.

A general exemplification of this situation at Fortum Heat shows positive economical results. Producing electricity independently of the current demand of heat makes it possible for Fortum Heat to be a part of Svenska Kraftnät commercialization of the power reserve. A finalizing discussion highlights aspects needed to be considered when implementing the business model at Fortum Heat.

Place, publisher, year, edition, pages
2012. , 100 p.
Keyword [en]
Renewable energy system, variable eletricity generation, business model, district heating
National Category
Engineering and Technology
URN: urn:nbn:se:kth:diva-134869OAI: diva2:668530
Subject / course
Energy Technology
Educational program
Master of Science in Engineering - Industrial Engineering and Management
Available from: 2013-12-03 Created: 2013-11-30 Last updated: 2013-12-03Bibliographically approved

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