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Vertical integration of local fuel producers into rural district heating systems: Climate impact and production costs
Swedish University of Agricultural Sciences, Sweden.ORCID iD: 0000-0001-5979-9521
2015 (English)In: Energy Policy, ISSN 0301-4215, E-ISSN 1873-6777, Vol. 78, 51-61 p.Article in journal (Refereed) PublishedText
Abstract [en]

Farmers can use their own agricultural biomass residues for heat production in small-scale systems, enabling synergies between the district heating (DH) sector and agriculture. The barriers to entry into the Swedish heat market were extremely high as long as heat distribution were considered natural monopoly, but were recently lowered due to the introduction of a regulated third party access (TPA) system in the DH sector. This study assesses the potential impact on greenhouse gas emissions and cost-based heat price in the DH sector when farmers vertically integrate into the heat supply chain and introduce more local and agricultural crops and residues into the fuel mix. Four scenarios with various degree of farmer integration, were assessed using life cycle assessment (LCA) methodology, and by analysis of the heat production costs. The results show that full integration of local farm and forest owners in the value chain can reduce greenhouse gas emissions and lower production costs/heat price, if there is an incentive to utilise local and agricultural fuels. The results imply that farmer participation in the DH sector should be encouraged by e.g. EU rural development programmes.

Place, publisher, year, edition, pages
Elsevier, 2015. Vol. 78, 51-61 p.
National Category
Renewable Bioenergy Research
URN: urn:nbn:se:kth:diva-182631DOI: 10.1016/j.enpol.2014.11.037ISI: 000349731800006ScopusID: 2-s2.0-84921637370OAI: diva2:932689

QC 20160603

Available from: 2016-06-02 Created: 2016-02-22 Last updated: 2016-06-03Bibliographically approved

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Sundberg, Cecilia
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