How to make sure safety of warmth provide and on the identical time decarbonise district heating? The Polish case-study –


Laws devoted to the transformation of district heating sector are one of many key areas of the “Match for 55” bundle being on the very second mentioned within the EU establishments. On the stage of the European Union as an entire, the district heating sector satisfies roughly 13% of warmth demand, nonetheless its position in densely urbanized areas is way extra vital because it can’t be changed by another type of offering warmth and heat water with required traits.

For Poland this situation is of key significance, since warmth from large-scale district heating community is used for heating functions in 40.4% of households, which interprets to , 6 million households. With such a scale of district heating utilization, each facet of regulation is of nice significance within the context of the necessity to guarantee enough provides and conduct a capital-consuming investments to finish the transformation of this sector.

Native specificities needs to be thought-about

District heating is likely one of the essential sources of warmth for the Poles, and the Polish district heating sector is likely one of the largest within the European Union. I In 2020, a variety of heating degree-days in Poland, which displays the dimensions of warmth demand in warmth techniques, was roughly 9% greater than the EU common. Particularly, metropolitan areas are heated and provided with warmth for home scorching water by giant district heating techniques with excessive technology capacities. Dividing giant district heating techniques into smaller ones, particularly in giant cities, implies a variety of technical, logistical, formal and authorized challenges being unattainable to beat at this second. These embody, however will not be restricted to, difficulties in buying land for the event of distributed renewables, a technical overhaul of current infrastructure, adapting constructing service techniques to function on low-temperature parameters, formal and logistical points related to the efficiency of community investments, together with the association of possession, providers, land, and many others., and a necessity for mandatory growth of electrical energy infrastructure. Moreover, there’s a scarcity of RES applied sciences that might guarantee on a wider scale that temperatures of the medium provided into the community are sufficiently excessive. Decreasing the temperature on the receiving facet of district heating techniques requires giant capital expenditures and isn’t possible in an affordable and accountable method inside just a few years. Regardless of the event on hybrid techniques, by which central producing items will likely be supplemented by renewable warmth sources (ground-source heating, photo voltaic panels, warmth pumps, and many others.), nonetheless their applicability is restricted. These challenges show that the one-size-fits-all method doesn’t work for district heating and it shouldn’t be the a approach to tackle challenges recognized by “Match for 55” agenda. 

Multi-variant financial evaluation of transformation prices

The Polish Affiliation of Mixed Warmth and Energy Crops (PTEZ) carried out an evaluation to estimate the prices of transformation of the district heating sector primarily based on the Fee’s proposal to revise the Vitality Effectivity Directive. The mannequin utilized in evaluation is predicated on detailed macroeconomic, market and know-how assumptions for reference warmth markets for the interval of 2022-2050. 4 know-how choices are proposed for every market to satisfy the brand new definition of an environment friendly district heating and cooling system. Consequently, the mannequin permits to find out probably the most cost-effective choice for every warmth market thought-about primarily based on variable prices of manufacturing. – Our evaluation confirmed that adapting the Polish district heating sector to the necessities proposed within the draft rules of the Match for 55 bundle will price, in whole, not less than EUR 61,56 billion to EUR 91,11 billion in capital expenditures to be incurred within the prospect to 2045 for the transformation of the district heating sector, with a good portion of capital expenditures wanted to be spent as early as 2026 – capital expenditures of EUR 32,22 billion to 55,56 billion – Wojciech Dąbrowski, President of the Administration Board of the PTEZ and of the PGE Group, factors out. – A deluge of so many large-scale investments in such a brief time frame all through the nation might generate issues with the bodily feasibility of the works, in addition to might trigger a rise in the price of funding implementation – CEO Dąbrowski added. 

Key suggestions 

– The evaluation proved that to ensure that the transformation to be carried out in a rational method, last EU rules should consider native circumstances of every Member State. A shift from district heating in the direction of different home equipment in Poland could be economically and technologically unjustified, and would result in the danger of a scarcity of provide to tens of millions of finish customers, particularly residing within the multi residential buildings – CEO Dąbrowski factors out.

The important thing suggestion is, bearing in mind the scale of the capital expenditures to be incurred for adaptation of solely the technology infrastructure to the necessities of the proposed revision of the EED within the 2026 perspective on the stage of EUR 17,78 billion to EUR 33,33 billion, to postpone the appliance of a brand new direct emission criterion of 270 g CO2/kWh for high-efficiency cogeneration by January 1, 2030. In any other case, mandatory transition prices are extremely more likely to show socially unacceptable – it needs to be identified that this isn’t the one space that can requires excessive capital expenditures within the nearest future. 

Alternatively, this indicator ought to solely apply to new and considerably retrofitted cogeneration items as proposed within the Council’s place.

Moreover, if all investments in new items had been to be made by January 1, 2026, they must be at a sophisticated stage of the funding course of by that time. The supply of apparatus, supplies and contractors for therefore many tasks in such a brief timeframe will also be a really important drawback. The sooner entry into drive of this new emission criterion wouldn’t pace up investments, because the section out of the present items must be synchronised with commissioning of the brand new capacities succesful to ship enough warmth provide.

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