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)

Authors

W.J.J. Hartwig Technology, Policy and Management

Contributors

Z. Lukszo Energy and Industry (mentor)
P.W.G. Bots Policy Analysis - TPM (mentor)
R.M. Stikkelman Energy and Industry (graduation committee member)
Thomas van de Sande Eneco Group (coach)
Jan Keenan Eneco Group (coach)
Faculty
Technology, Policy and Management, Technology, Policy and Management
Copyright: © 2019 wilan Hartwig
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Published Date

11-10-2019

Language

English

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Faculty

Technology, Policy and Management

Abstract

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,