WH
W.J.J. Hartwig
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Comparing the Performance of different Market Structures for Regional Heat Networks
A simulation study into the impact of fuel prices, consumption growth and investment decisions
Master thesis
(2019)
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wilan Hartwig, Zofia Lukszo, Pieter Bots, Rob Stikkelman, Thomas van de Sande, Jan Keenan
This research has compared three different market mechanisms in a quantitative way. The influences of these market mechanisms on the heating system were investigated for CO2 emissions, consumer price and producer surplus. In addition, the influences of investment decisions and price and consumption growth scenarios were tested. The research showed that the end-to-end market mechanism is the least uncertain in the future and is only influenced by consumption growth. In addition, the construction of a large source of residual heat can moderate this effect. The wholesale market is strongly influenced by price scenarios. This effect can be moderated by the construction of the pipeline through the Midden, which connects two different heating systems. Finally, there is the single buyer market. This is influenced by both scenario variables, while no investment decisions affect it. Further research must be done into the latter market mechanism. And the models need to be extended to more specific markets because this research has used archetypes. Keywords: District heating network, Market mechanism, Single-buyer,
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This research has compared three different market mechanisms in a quantitative way. The influences of these market mechanisms on the heating system were investigated for CO2 emissions, consumer price and producer surplus. In addition, the influences of investment decisions and price and consumption growth scenarios were tested. The research showed that the end-to-end market mechanism is the least uncertain in the future and is only influenced by consumption growth. In addition, the construction of a large source of residual heat can moderate this effect. The wholesale market is strongly influenced by price scenarios. This effect can be moderated by the construction of the pipeline through the Midden, which connects two different heating systems. Finally, there is the single buyer market. This is influenced by both scenario variables, while no investment decisions affect it. Further research must be done into the latter market mechanism. And the models need to be extended to more specific markets because this research has used archetypes. Keywords: District heating network, Market mechanism, Single-buyer,