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Helsinki Energy Challenge - Background material - Heating system in Helsinki - energychallenge.hel.fi www.hel.fi
Helsinki
Energy
Challenge
Background material –
Heating system in Helsinki

                             energychallenge.hel.fi
                                        www.hel.fi
Helsinki Energy Challenge - Background material - Heating system in Helsinki - energychallenge.hel.fi www.hel.fi
Contents                                               Helsinki Energy Challenge

Glossary                                                                     3
Foreword                                                                     4
Executive summary                                                            5

1 Introduction                                                               7
1.1 Background                                                               7
1.2 Heat demand and other natural circumstances in Helsinki                  7

2 Heat consumption characteristics                                          10
2.1 Total energy and heat consumption in Helsinki                           10
2.2 The annual profile of heat demand                                       12
2.3 Heat consumption drivers and their impact on demand                     13
2.4 District heating customers                                              18

3 Current district heating system in Helsinki                               19
3.1 Principles of district heating system design                            19
3.2 District heating network in Helsinki                                   20
3.3 Current production capacity in Helsinki                                 22

4 Cost of district heat production                                         30
4.1 Cost components of district heating production                         30
4.2 Comparison of district heating and some alternative heating methods 32

5 Regulation impacting the district heating sector                          33
5.1 Regulation of district heating in Finland                               33
5.2 Energy taxation                                                         34
5.3 Policy impacting heat demand                                            34
5.4 Land use and permitting procedures                                      34

6 Further studies and data sources                                          37
Helsinki Energy Challenge - Background material - Heating system in Helsinki - energychallenge.hel.fi www.hel.fi
Glossary

Abbreviation               Definition
CAGR                       Compound annual growth rate
Capex                      Capital expenditure
CCGT                       Combined cycle gas turbine
CHP                        Combined heat and power
CO2                        Carbon dioxide
COP                        Coefficients of performance
DH                         District heating
DHC                        District heating and cooling
DSO                        Distribution system operator
EED                        Energy Efficiency Directive
EPBD                       Energy performance of buildings
EU                         European Union
EU ETS                     EU Emissions Trading System
GHG                        Greenhouse gas
GSHP                       Ground source heat pump
GT HP                      Geothermal heat pump
GWh                        Gigawatt hours
HFO                        Heavy fuel oil
HOB                        Heat only boiler
km                         Kilometre
kWh                        Kilowatt hours
LCOE                       Levelised cost of energy
LFO                        Light fuel oil
LULUCF                     Land Use, Land-Use Change, and Forestry
mm                         Millimetre
MW                         Megawatt
MWh                        Megawatt hours
n. a.                      Not available
Opex                       Operational expenditure
RED                        Renewable Energy Directive
RES                        Renewable energy source
TWh                        Terawatt hours
VAT                        Value added tax
WACC                       Weighted average cost of capital

3    Helsinki Energy Challenge
Helsinki Energy Challenge - Background material - Heating system in Helsinki - energychallenge.hel.fi www.hel.fi
Foreword

This background report has been
prepared by Pöyry Management
Consulting Oy to support the Helsinki
Energy Challenge organised by the City
of Helsinki. Helsinki Energy Challenge
is a global challenge competition that
seeks to answer the question: How can
we decarbonise the heating of Helsinki,
using as little biomass as possible?

4   Helsinki Energy Challenge
Helsinki Energy Challenge - Background material - Heating system in Helsinki - energychallenge.hel.fi www.hel.fi
Executive summary

Space and domestic hot water heating in Helsinki is
currently mostly based on the district heating system.
The heat production for the district heat system is based
on several energy sources and fuels, but coal is one of
the main sources. Due to Helsinki’s aim of being carbon-
neutral by 2035, as well as the banning of coal for energy
production purposes in Finland from 2029 onwards, new
solutions are needed to supply Helsinki’s heat demand.

The volume of district heat demand in              2024 followed by the second stage where
Helsinki is approximately 7 TWh, which is          another coal CHP unit in Salmisaari is shut
about 20% of the total district heat demand        down or converted to other fuels by 2029.
in Finland. Helsinki is located on the south       Coal phase-out results the loss of a total
coast of Finland, and the population of the        of 920 MW of heat production capacity and
city is concentrated in the coastal area. Due      there is a need for a replacement of the
to the cold climate, heat demand is strongly       capacity, particularly to ensure sufficient,
correlated to weather, and the capacity            reliable capacity during cold winter periods.
needed to produce heat on cold winter days         In heat production terms, this amounts to
is substantial. The volume, variation, and the     some 3.5 TWh of heat.
location of the heat demand means that it             Helen’s current plan for the first stage
has been challenging to find a replacement         of replacements comprises a new biomass
for fossil fuels in Helsinki. Fossil fuels are     heat-only boiler plant investment, increasing
mainly used in cogeneration of heat and elec-      waste heat recovery and heat pump capacity,
tricity or in trigeneration of heating, cooling,   geothermal heat, locality-level heating solu-
and electricity. Current district heating pro-     tions, as well as increased heat procurement
duction by unit type and fuel use in Helsinki      from the adjacent district heating networks
is presented in Figure 1.                          in Espoo and Vantaa.
    Helen, the owner and operator of the              In Finland, district heating business is not
district heat system in Helsinki, needs to re-     directly regulated and customers are free
place its coal plants by 2029 at the latest due    to select their own heating method and also
to the phase-out of coal regulation. In 2018,      switch away from district heating. On the
Helen used some 6.5 TWh of coal, producing         other hand, the change of heating method
both heat and electricity from it. Helen plans     can require investments.
on implementing the coal phase-out in two             In heating supply, there is an obligation to
stages, where the first stage involves the         maintain high security of supply of heating
closure of a coal CHP plant in Hanasaari by        during normal conditions as well as emer-

5     Helsinki Energy Challenge
Figure 1 District heat production by unit type and energy source in Helsinki, 2018.

                      DH production by unit type                        DH production by energy source
        GWh                                                                           3% 1%
7 000
              5 950
6 000                                                                                8%
                                                                                                     Coal
5 000
                                                                                                     Natural gas
4 000                                                                                         53 %   Heat pumps
                                                                              35 %
3 000                                                                                                Bio fuels
2 000                                                                                                Fuel oil
1 000                         580           630
                                                            40
    0
              CHP          Heat pumps   Heat boilers   Purchased heat

Source: Finnish Energy (2019), Helen website

gency conditions, which is also to be taken
into account when considering new solutions.
Furthermore, the time requirements of land
use and permitting procedures need to be
considered. All of these aspects set challeng-
ing prerequisites for new solutions for the
replacement of coal in Helsinki.

6       Helsinki Energy Challenge
1 Introduction

1.1 Background                                                   pellets) being used in the production of heat
Helsinki’s goal is to be carbon-neutral by the                   in Helsinki in 2030. This corresponds to ap-
year 2035. Currently, about 56% of Helsinki’s                    proximately 20% of all the biomass fractions
carbon dioxide emissions originate from the                      used in the production of district heat in the
production of energy used for heating. In                        whole Finland in 2018.
order to reach the carbon-neutrality goal,
Helsinki needs to reduce the emissions                           1.2 Heat demand and other natural
originating from the production of heat, in                      circumstances in Helsinki
addition to other actions.                                       The northern location of Helsinki means that
   In the densely populated Helsinki, the                        the temperature levels vary considerably
main source of space heating and domestic                        and the heat demand is large in the winter
hot water heating is district heating, with a                    months. Average temperature and precipita-
share of around 92% of total heat demand.                        tion information at Helsinki Kaisaniemi (cen-
The total district heat demand in Helsinki is                    tral Helsinki) is presented in Figure 3.
about 7 TWh, which is approximately 20%                              Further temperature-related graphics
of the entire district heat demand in Fin-                       can be found at the FMI webpage, with in-
land. The location of Helsinki is presented in                   formation on other factors such as typical
Figure 2.                                                        maximum and minimum temperature range
   In Helsinki, the city-owned energy com-                       as well as typical Helsinki snow depth1.
pany Helen is in charge of the production,                           The heat demand can be measured in
distribution, and sale of district heat. In 2018,                heating degree days, a measurement quan-
coal accounted for 53% of the district heat                      tifying the demand for energy needed to
produced by Helen. Coal is used mainly in                        heat a building. It is the number of degrees
cogeneration of power and heat and in tri-                       that a day’s average temperature is below
generation, where power, heat, and cooling                       the temperature where buildings need to be
is produced in one process. The coal-fired                       heated (17°Celsius in Finnish measurement).
power plants are located in Hanasaari and                        On average, there were 3,878 heating degree
Salmisaari close the city centre. The shut-                      days in Helsinki in the latest long-term refer-
down of Hanasaari by 2024 has already been                       ence period 1981–2010. Table 1 summarises
approved, and due to the Finnish govern-                         average heating degree days in Helsinki for
ment’s decision to ban energy use of coal as                     each month during the reference period.
of 2029, coal-based production in Salmisaari                     Annual heating degree days in the period of
must also cease before 2029. The current                         2008–2018 are depicted in Figure 4. During
indicative plan to replace coal indicates that                   this period, the heating degree days in the
a substantial part of current coal use would                     Helsinki area have been around 7% lower
be replaced with biomass which could result                      than the reference period average.
in up to 1.5–3 TWh of biomass (incl. biomass

1   Finnish Meteorological Institute (FMI). Available at: https://en.ilmatieteenlaitos.fi/climate

7      Helsinki Energy Challenge
Figure 2 Map of Finland and Helsinki.

Source: Pöyry                                                                       HELSINKI INNOVATION CHALLENGE

 Figure
Figure 3 3 – Average
         Average       precipitation
                 precipitation       and temperature
                               and temperature          information, 1960-2018, Helsinki
                                               information,
              Kaisaniemi
1960–2018, Helsinki         measurement
                    Kaisaniemi measurementpoint
                                            point.

                        90                                                                                     20
                        80
                                                                                                               15
                        70
   Precipitation (mm)

                                                                                                                     Temperature (°C)
                        60                                                                                     10
                        50
                                                                                                               5
                        40
                        30                                                                                     0
                        20
                                                                                                               -5
                        10
                        0                                                                                      -10
                                               ril

                                                                    ly
                                                      ay
                              ry

                                                                                r
                                y

                                        ch

                                                                               er
                                                                               st
                                                             ne

                                                                                r

                                                                                r
                                                                              be

                                                                              be

                                                                              be
                             ar

                                                                  Ju
                                             Ap

                                                                             gu
                            ua

                                                                            ob
                                                     M
                                     ar

                                                           Ju
                           nu

                                                                          em

                                                                          em

                                                                          em
                                                                         Au
                          br

                                    M

                                                                          ct
                         Ja

                                                                        O
                        Fe

                                                                       pt

                                                                       ov

                                                                       ec
                                                                     Se

                                                                     N

                                                                     D

                             Monthly average precipitation (mm)          Monthly average air temperature(°C)
Source: Finnish Meteorological Institute (FMI)

Further temperature-related graphics can be found at the FMI webpage, with information on other
factors such as typical maximum and minimum temperature range as well as typical Helsinki snow
depth1.
The heat demand can be measured in heating degree days, a measurement quantifying the demand
for energy needed to heat a building. It is the number of degrees that a day's average temperature
is below the temperature where buildings need to be heated (17 °Celsius in Finnish measurement).
On average, there were 3 878 heating degree days in Helsinki in the latest long-term reference period
1981–2010. Table 1 summarises average heating degree days in Helsinki for each month during the
reference period. Annual heating degree days in the period of 2008–2018 are depicted in Figure 4.
During
8       this period,
      Helsinki        the heating degree days in the Helsinki area have been around 7 % lower than
               Energy Challenge
the reference period average.
HELSINKI INNOVATION CHALLENGE

 Figure4 4Annual
Figure     – Annual heating
                 heating    degree
                         degree daysdays in Helsinki
                                     in Helsinki in theinperiod
                                                          the period of 2008–2018
                                                                of 2008–2018.

            Annual heating degree days
    5 000
    4 500                            4376
              3878                                   3797
    4 000
                                   3737                                                 3589 3549
    3 500
                           3244              3493            3592                                    3552
    3 000                                                            3464 3118
    2 500
    2 000
    1 500
    1 000
     500
       0
                        2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

                                     Reference period average (1981-2010)
                                     Annual heating degree days 2008-2018
              2
Source: FMI
Source: FMI. More information and data regarding heating degree days in the 2010s can be found at:
https://en.ilmatieteenlaitos.fi/heating-degree-days

Table 1 Monthly heating degree days in Helsinki, reference period 1981–2010.

                  Jan     Feb     Mar     Apr       May     Jun     July   Aug      Sep      Oct     Nov        Dec
Helsinki          647     612     566     383       153     11      1      12       125      316     464        588

Source: Finnish Meteorological Institute (FMI).

2
 More information and data regarding heating degree days in the 2010s can be found at the FMI
webpage at https://ilmatieteenlaitos.fi/lammitystarveluvut

PÖYRY MANAGEMENT CONSULTING                                                                   September 2019
                                                                                                            6

9      Helsinki Energy Challenge
2 Heat consumption
characteristics

2.1 Total energy and heat                                   months and within each day. These differenc-
consumption in Helsinki                                     es are described in more detail in Section 2.2.
Heat consumption represents half (50.5%)                       The normalised total energy consumption
of the total energy consumption in Helsinki                 in the city of Helsinki was ca. 13.8 TWh in
and is in the range of ca. 7 TWh in a year.                 2017, where the heating consumption has
This corresponds to ca. 20% of Finland’s                    been temperature-normalised by a rolling
heating demand. District heating, consumed                  five-year average. In the same year, the
electricity and transport represent 95% of                  actual measured energy consumption was
the total energy consumption in Helsinki. The               slightly higher:    ca.INNOVATION
                                                                         HELSINKI    14.0 TWh.CHALLENGE
                                                                                                The historical
normalised energy consumption shares in                     development of the heat demand in Helsinki
Helsinki in 2017 are illustrated in more detail             is shown in Figure 6.
           2.       HEAT CONSUMPTION CHARACTERISTICS
in Figure 5.                                                   The share of district heating of the total
2.1The  annual
          Total energy and heat consumption inconsumption
                 demand     of  energy   for heat-          heat   Helsinki in Helsinki has been stable
ing has been normalised in the figure, as                   at around 92% during past decades. Oil and
Heat consumption represents half (50.5 %) of the total energy consumption in Helsinki and is in the
described
range of ca. in Section
              7 TWh  in a 1.2. InThis
                           year.  addition   to the to ca. 10
                                      corresponds           electric   heatingheating
                                                               % of Finland’s    represent    the remaining
                                                                                         demand.  District  ca.
yearly
heating,differences,   the heatand
          consumed electricity    consumption
                                      transport represent 8%95 % ofofthe
                                                                       theheat
                                                                           totaldemand.
                                                                                 energy consumption in
Helsinki.
and  need The normalised
            also          energy consumption
                 varies significantly     betweenshares in Helsinki in 2017 are illustrated in more detail
in Figure 5.

 Figure 5 – Total energy consumption* in Helsinki, 2017, GWh
Figure 5 Total energy consumption in Helsinki, 2017, GWh.

                                                       114

                                    2 734

                                                          Total                     6 412
                                                      13 796 GWh

                                  3 977

                                                       331           229

               District heating                 Oil heating                       Electricity heating
               Consumed electricity             Transport                         Industry and implements

*Normalised heat demand

Source: Helsinki Region Environmental Services Authority HSY at Helsinki Region Infoshare
Source: Helsinki Region Environmental Services Authority (HSY) at Helsinki Region Infoshare

The annual demand of energy for heating has been normalised in the above figure, as described in
Section 1.2. In addition to the yearly differences, the heat consumption and need also varies
10     Helsinki
significantly   Energy Challenge
              between  months and within each day. These differences are described in more detail in
Section 2.2.
HELSINKI INNOVATION CHALLENGE

Figure 6 6
  Figure Heat consumption
           – Heat         development
                  consumption         in Helsinki,
                               development         2000–2017,
                                             in Helsinki,     GWh. GWh
                                                          2000-2017,

             8 000

             7 000

             6 000

             5 000
       GWh

             4 000

             3 000

             2 000

             1 000

                0
                00

                01

                02

                03

                04

                05

                06

                07

                08

                09

                10

                11

                12

                13

                14

                15

                16

                17
              20

              20

              20

              20

              20

              20

              20

              20

              20

              20

              20

              20

              20

              20

              20

              20

              20

              20
                                    District heating      Oil heating      Electricity heating
Source: Helsinki
Source: Helsinki Region
                 Region Environmental
                        EnvironmentalServices
                                      ServicesAuthority
                                               AuthorityHSY at Helsinki
                                                         (HSY)          Region
                                                                at Helsinki    Infoshare
                                                                            Region  Infoshare

The share of district heating of the total heat consumption in Helsinki has been stable at around 92 %
during past decades. Oil and electric heating represent the remaining ca. 8 % of the heat demand.
Electric
  Mainly heating
           due toalso
                   cityincludes
                        growth,ground-source
                                  the normalised  and exhaust-air heat pumps.inOver
                                                       energy consumption       2017.the years,
                                                                                       The      electric
                                                                                            detailed
heating has steadily increased its market share, whereas the share of oil heating has slowly
heat demand in Helsinki has increased
decreased.                                             numbers are presented in Figure 7.
during 2000–2017 by a CAGR of 0.48%,                                  Most of the energy consumption in Hel-
  The construction of the Helsinki district heating network started in the 1950s, and larger properties
which     corresponds to 548 GWh. However, in                     sinki is utilised in the heating of buildings and
  like housing companies and apartment buildings are connected to the district heating network. The
the    currentdistrict
  city-owned      decade      (2010–2017),
                           heating   companyheatHelende-          providing
                                                        is the main            electricity
                                                                     heat provider     in the tocityhousing,
                                                                                                     as well as services,   and
                                                                                                                   the biggest
 mand     has   started     decreasing      with  a CAGR     of   industry.   Space      heating     corresponds
  district heating producer and distributor in Finland. Helen’s network consists of ca. 1 300 km of district           to ca.
  heating (245
−0.58%      pipeline.
                    GWh).                                         70%, and hot water to ca. 15% of all energy
      It can
  Mainly   duealready
                 to city be    seenthe
                          growth,     that  the heat de-
                                         normalised    heat demanduseininHelsinki
                                                                           an average       building. This
                                                                                     has increased       duringis 2000–2017
                                                                                                                   the reason
 mand     per citizen
  by a CAGR      of 0.48has     decreased
                            %, which           by 0.6toMWh
                                       corresponds        548 GWh.forHowever,
                                                                       looking more
                                                                                  in the closely     at the building
                                                                                          current decade                 sector
                                                                                                               (2010–2017),
  heat
 in      demand has started decreasing with a CAGR ofin−0.58%
     17 years.                                                       Helsinki(245     GWh).to better understand the
                                                                                in order
      In the
  It can      longbe
          already     term,
                         seenit that
                                 is expected    that theper citizen
                                     the heat demand              demand      development
                                                                       has decreased       by 0.6for   the in
                                                                                                     MWh    heating    sector.
                                                                                                               17 years.   The
total    heat consumption
  oil heating   demand per citizen will further
                                          has alsodecline
                                                    decreased, butThisthis
                                                                        is is
                                                                           discussed       in more detail
                                                                              partially explained              in Section
                                                                                                        by oil heating       2.3.
                                                                                                                         being
  replaced
 mostly    duewithtoother
                      energy heating   methods.
                                efficiency         Electric heating demand
                                              measures                          per citizensplit
                                                                      The consumption            has started     to decline
                                                                                                       of district   heatingin
  this decade
and     the impactas well.
                        of climate change. The City of            by consumer type in Helsinki in 2017 is illus-
  In the long
Helsinki     hasterm,     it is expected
                    performed       a studythat   the future
                                              of the   total heat trated
                                                                  consumption
                                                                           in Figurewill 8.
                                                                                         further
                                                                                             It candecline
                                                                                                      be seen mostly    due to
                                                                                                                  that the
  climate   change      and   energy   efficiency
of district heating in Helsinki. The study con-    measures.    The  City  of Helsinki    has    performed
                                                                  residential customer segment forms the      a   study  of larg-
                                                                                                                            the
  future of district heating in Helsinki. The study concludes that district heating demand will drop from
cludes that district heating demand will drop 7 est demand, with a share of ca. 62%. Other
  6 331 GWh in 2015 to 4 873–5 317 GWh in 2035 . The demand drivers and their impact on heat
from     6,331 GWh in 2015 to 4,873–5,317 GWh
  demand will be discussed in more detail in Section 2.2.
                                                                  sectors, which include different municipal
 in 20352. The demand drivers and their                           buildings in e.g. health care and educational
  Considering
 impact     on heatthe energy
                        demand    consumer    groups in Helsinki
                                    will be discussed      in      as a whole,
                                                                  facilities,  asitwell
                                                                                    is noted    that housing
                                                                                          as other     purposes andsuch
                                                                                                                      services
                                                                                                                            as
  covered almost 92 % of the total energy consumption in 2017. The detailed numbers are presented
 more     detail
  in Figure 7.     in  Section    2.3.                            offices   and   commercial         buildings,     represent
      Considering the energy consumer groups                      ca. one third (34%) of the demand. Industry’s
 in Helsinki as a whole, it is noted that housing share is ca. 4% of the total district heating
and services covered almost 92% of the total demand.

27    City of Helsinki (2018).The Carbon Neutral Action Plan. Available at: https://www.hel.fi/static/liitteet/
     Hiilineutraali Helsinki 2035 -toimenpideohjelma, City of Helsinki 2019
      kaupunkiymparisto/julkaisut/julkaisut/HNH-2035/Carbon_neutral_Helsinki_Action_Plan_1503019_EN.pdf

PÖYRY MANAGEMENT CONSULTING                                                                                  September 2019
11       Helsinki Energy Challenge                                                                                           9
HELSINKI INNOVATION CHALLENGE

  Figure 7 – Total energy consumption in Helsinki per sector, 2017, GWh
Figure 7 Total energy consumption in Helsinki per sector, 2017, GWh.

                                                1 178

                                                            Total
                                                        13 796 GWh                  7 049
                                5 569

                                                                                  HELSINKI INNOVATION CHALLENGE
                                              Housing     Services     Industry
Source: Helsinki Region Environmental Services Authority HSY at Helsinki Region Infoshare
Source: Helsinki Region Environmental Services Authority (HSY) at Helsinki Region Infoshare
 Figure 8 – Use of district heating by user type in 2017 in the district heating
              network
Most of the energy     in Helsinki
                   consumption in Helsinki is utilised in the heating of buildings and providing
electricity
Figure      to housing,
        8 Use            services,
                 of district       andbyindustry.
                             heating              Space
                                          user type     andinhot
                                                    in 2017   thewater heating
                                                                  district     correspond
                                                                           heating networktoin
                                                                                             ca. 70 %
                                                                                               Helsinki.
and ca. 15 % of all the energy used in an average building, respectively. This is the reason for looking
more closely at the building sector in Helsinki in order to better understand the demand development
for the heating sector. This is discussed in more detail in Section 2.2.
The consumption split of district heating in Helsinki in 2017 is illustrated in Figure 8. It can be seen
that the residential customer  segment forms the largest demand, with a share of ca. 62 %. Other
                            2 246
sectors, which include different municipal buildings in e.g. health care and educational facilities, as
well as other purposes such as offices and commercial buildings, represent ca. one third (34 %) of
the demand. Industry’s share is ca. 4 % of the total
                                                Totaldistrict heating demand.
                                                        6 606 GWh
                                                                                  4 072

                                        288

                                           Residential      Industry    Other
Source:
Source: Finnish Energy
                Energy (2018)

2.2
2.2 The The
        annual profileprofile
            annual     of heatof
                              demand
                                 heat demand
                                         variation. The heat demand during July is
Heat demand is strongly dependent on out-                mostly attributable to domestic hot water. An
 Heat demand is strongly dependent on outdoor temperature and therefore demand has a systematic
door  temperature     and therefore  demand     has      example
 seasonal profile. Heat energy is primarily used for two purposes:   of the annual     heat demand
                                                                              space heating   and hotprofile in
                                                                                                        water.
aDemand
   systematic   seasonal  profile. Heat energy    is     Helsinki   is depicted    in Figure 9.
           for space heating varies according to outdoor temperatures and is therefore considered to
primarily   used for two purposes:
 be weather-dependent,               space heat-
                          while the demand    for domesticThe hot typical
                                                                  water does average   monthly
                                                                                 not change     heat loaddue
                                                                                             appreciably
 to weather  variation. The heat  demand  during
ing and hot water. Demand for space heating         July is mostly   attributable  to  domestic
                                                         in the Helsinki network is presented   hot water.
                                                                                                      in An
 example  of  the annual heat demand   profile
varies according to outdoor temperatures,      in  Helsinki is depicted    in Figure  9.
                                                         Figure 10 for each month of the year. It is
while the demand for domestic hot water                  evident that there is a significant variation in
   Figure
does        9 – Typical
       not change        annualdue
                    appreciably    heat
                                      todemand
                                         weather profile heatindemand
                                                                  Helsinki  between seasons, thus requir-
PÖYRY MANAGEMENT CONSULTING                                                                       September 2019

             MW                                                                                              10
     3 000
12     Helsinki Energy Challenge

     2 500
ing that the heat production fleet be able to                begins to increase at around 6 AM and is
maintain sufficient supply, especially during                primarily a result of increased hot water
the cold winter months.                                      consumption in the mornings as well as due
    Heat demand also varies significantly                    to ventilation systems in offices and commer-
within a month, due to variance in weather                   cial buildings typically turning on a couple of
conditions. This is shown in Figure 11, where                hours before full occupancy. Similarly to the
the typical range between the maximum and                    monthly variation, this requires that the dis-
minimum heat load within each month is pre-                  trict heating system be capable of changing
sented as a bar. The variance in heat demand                 heat supply levels in a flexible manner.
is greater in the coldest months. This requires
that the district heating production fleet be                2.3 Heat consumption drivers
flexible enough that the production capacity                 and their impact on demand
is able to meet the heat load at every moment.               Heat demand in Helsinki has been increasing
As is typical for district heating systems, peak             due to the growth of the city, while at the
heat demand is currently met by separate                     same time improving energy efficiency is
peak load boilers in the Helsinki district heat-             driving demand down. The main drivers for
ing network.                                                 the future demand for heating include urban-
    Heat demand in the Helsinki network also                 isation and population development, energy
follows a somewhat systematic daily profile,                 efficiency, and climate change. These factors
which is a result of large consumer masses                   are discussed in more detail in Table 2.
having similar consumption profiles. Figure
12 presents an example of hourly demand for
heat for an average day in January. The daily
profile has an increasing trend in the morn-
ing and declines in the evening. Consumption

Figure 9 Helsinki district heat demand profile in 2016 (MW).

             MW
 3000

 2500

 2000

 1500

 1000

     500

       0
           Jan     Feb    Mar      Apr   May   Jun     Jul     Aug    Sep     Oct        Nov   Dec

Source: Helen, https://www.helen.fi/en/company/responsibility/current-topics/open-data

13         Helsinki Energy Challenge
Figure 10 Average monthly heat load in Helsinki network in 2016 (MW).
          MW
2000
          1740
1800
1600
1400                 1230                                                                  1260 1260
                                1160
1200
1000                                       870                                       890
 800
 600                                                                           450
                                                     430
                                                             360         320
 400                                                               290
 200
     0
           Jan       Feb        Mar        Apr       May     Jun   Jul   Aug   Sep   Oct   Nov   Dec

Figure 11 Range of maximum and minimum monthly heat load in 2016 (MW).
          MW
3000

2500

2000

1500

1000

 500

     0
           Jan       Feb        Mar        Apr       May     Jun   Jul   Aug   Sep   Oct   Nov   Dec

Figure 12 Average hourly heat demand in Helsinki DH network for a day in January (MW).

           MW
 1850

 1800

 1750

 1700
 1650

 1600

 1550

 1500

 1450
            0    1    2     3    4     5   6     7   8     9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Source: Pöyry analysis, Helen, https://www.helen.fi/en/company/responsibility/current-topics/open-data

14       Helsinki Energy Challenge
Table 2 Drivers impacting heat volume development in the long run.

              Effect on
Volume driver demand              Description

Population          ↑             An increase in population will drive new building activity and heat
development                       volume demand. The capital region is expecting strong growth in
                                  the near and long term, which will impact heat demand.

Urbanisation        ↑             Populations are moving from rural environments to towns and
                                  from towns to cities. It also increases the density of building
                                  stock. Helsinki and the capital region are one of the areas where
                                  urbanisation focuses.

Energy              ↓             Energy efficiency is high on the agenda for the EU, and also for
efficiency                        Finland. A number of policy measures have been integrated into
                                  the way buildings are planned, constructed, and renovated in or-
                                  der to meet energy efficiency targets. Although renovations are
                                  often not undertaken solely for energy efficiency reasons, grad-
                                  ually renovating the current building stock with more modern
                                  materials and solutions will improve energy efficiency. Building
                                  regulations also require energy efficiency improvements when
                                  major renovations are carried out. New buildings are built under
                                  more strict building codes and are more energy efficient than old
                                  buildings.

Climate             ↓             Ambient temperature is one of the main drivers of demand for
change                            heating, with cold winters increasing demand. Climate projec-
                                  tions suggest that average temperatures will increase in the
                                  future resulting in lower heat demand.

Source: Pöyry analysis

15    Helsinki Energy Challenge
Figure 13 – Population development forecast, Helsinki
Figure 13 Population development forecast, Helsinki.
                             800 000

                             700 000
                                                                                                 2014-2040
                             600 000                                                            CAGR +0.8%
     Number of population

                             500 000

                             400 000

                             300 000

                             200 000

                             100 000

                                    0
                                        2014
                                        2015
                                        2016
                                        2017
                                        2018
                                        2019
                                        2020
                                        2021
                                        2022
                                        2023
                                        2024
                                        2025
                                        2026
                                        2027
                                        2028
                                        2029
                                        2030
                                        2031
                                        2032
                                        2033
                                        2034
                                        2035
                                        2036
                                        2037
                                        2038
                                        2039
                                        2040
Source: Statistics Finland

It is expected that the population of Helsinki will continue growing in the coming decades with a
CAGR    of 0.8 % (2014–2040).
   The population   in HelsinkiIn
                                is 2040, Statistics Finland
                                   growing,                 estimates
                                                       not used         that the
                                                                  in Finland     population
                                                                               directly      of Helsinki will
                                                                                        in building-level
be  ca. 759  000, which corresponds   to ca.
which has an increasing impact on the heat   22 %  increase  in comparison    to the 2014  level.
                                                       boilers, but only as a fuel in district heating.
demand.
 Population  The  historical
               growth          population develop-
                        and urbanisation                       Ground-source
                                               are strongly connected.     Buildingheat   pumps
                                                                                     activity      (GSHP)reflects
                                                                                               especially    are the
 urbanisation
ment    as well into  citypopulation
                 as the    centres, where      the district heating
                                         development                 network
                                                               popular         is located.
                                                                          especially   in theIndetached
                                                                                                Helsinki, the  number
                                                                                                           housing
 of buildings
outlook        has steadily
           is presented        risen during
                            in Figure   13.    the past years.segment,
                                                                 In 2017 there   werein
                                                                           whereas      43apartment
                                                                                           213 buildings    in Helsinki
                                                                                                       buildings
                                    8
 (2013–2017      CAGR
    It is expected    that0.84
                             the %)    with new
                                 population      of buildings primarily   being apartment
                                                               district heating    is the most buildings.
                                                                                                 popularDue      to the
                                                                                                            heating
 expected population growth (Figure 13), a similar trend may be expected in the future.
Helsinki will continue growing in the coming                   solution.
 The number
decades     withofanew
                     CAGRbuildings
                              of 0.8%built in the 2010s, by heating
                                        (2014–2040).               Newsource   and building
                                                                         and existing          purpose,
                                                                                         building  stockisvaries
                                                                                                            presented
                                                                                                                   in
 in 2040,
In  FigureStatistics
             14. It can Finland
                         clearly be   seen thatthat
                                   estimates      wood-, oil-, its
                                                                andheat
                                                                     gas-heating
                                                                         consumptionare almost   non-existentthis
                                                                                          characteristics;      in new
 buildings. Coal is not used in Finland directly in building-level boilers, but only as a fuel in district
the population of Helsinki will be ca. 759,000, is strongly driven by energy efficiency reg-
 heating. Ground-source heat pumps (GSHP) are popular especially in the detached housing
which
 segment,corresponds
             whereas into     ca. 22% buildings
                           apartment     increase district
                                                     in        ulation,
                                                             heating     including
                                                                      is the         nationalheating
                                                                             most popular       building  codes as
                                                                                                      solution.
comparison to the 2014 level                                   well as local renovation guidelines (Helsinki
    Building activity especially reflects the                  near-zero energy building code, HEnZEB).
urbanisation into city centres, where the                      Energy efficiency impacts the existing build-
district heating network is located. In Hel-                   ing stock through renovations. New buildings
sinki, the number of buildings has steadily                    are per se already more energy efficient due
risen during the past years. In 2017 there                     to better building material and techniques, for
were 43,000 buildings in Helsinki (2013–2017                   example in insulation. The age structure of
CAGR 0.84%)3 with new buildings primar-                        buildings in Helsinki is illustrated in Figure 15.
ily being apartment buildings. Due to the                      It can be seen that the older building stock is
expected population growth (Figure 13), a                      mostly located in the centre of Helsinki.
similar trend may be expected in the future.                       In addition, temperature is an important
    The number of new buildings built in the                   driver of heating volumes, and increasing
2010s, by heating source and building pur-                     outside temperatures in Finland is expected
pose, is presented in Figure 14. It can clearly                to have a negative impact on the heat de-
be seen that wood-, oil-, and gas-heating are                  mand. At the same time, demand for cooling
almost non-existent in new buildings. Coal is                  may increase.
8
     Statistics Finland, Paavo database based on postal code areas
3             Statistics Finland. Paavo database based on postal code areas. Available at: https://www.stat.fi/tup/paavo/
              index_en.html
PÖYRY MANAGEMENT CONSULTING                                                                                       September 2019
                                                                                                                             15
16                          Helsinki Energy Challenge
HELSINKI INNOVATION CHALLENGE

        Figure 14 – Floor space of new buildings in Helsinki from 2010 onwards, by
    Figure 14 Floor space
               heating     of new buildings in Helsinki from 2010 onwards, by heating source.
                       source

                        3 500 000

                        3 000 000

                        2 500 000
     Floor space (m2)

                        2 000 000

                        1 500 000

                        1 000 000

                         500 000

                                0
                                       District    Oil, gas      Electricity      Coal      Wood, peat      GSHP        Other and
                                       heating                                                                          unknown
                        Detached houses            Row houses                     Apartment buildings         Industrial buildings
                        Office buildings           Commercial buildings           Other buildings                                      HELSINKI INNOVATION CHALLENGE

    Note: other buildings include e.g. municipal buildings in education, fire department, and assembly functions, as well as other
    buildings such as warehouses

    Source: Statistics Finland

                                                    Figure 15 – Age structure of Helsinki buildings on a map
   New and existing building stock varies in its heat consumption characteristics; this is strongly driven
   by energy efficiency regulation, including national building codes as well as local renovation
   guidelines (Helsinki near-zero energy building code, HEnZEB). Energy efficiency impacts the existing
   building
Figure    15stock through renovations. New buildings are per se already more energy efficient due to
   better building material and techniques, for example in insulation. The age structure of buildings in
Age  structure        of in Figure 15. It can be seen that the older building stock is mostly located in the
   Helsinki is illustrated
   centre  of Helsinki.
Helsinki buildings
on a map.1

1    More information
     about the Helsinki
     building stock,
     ownership etc.
     is compiled in
     city-maintained
     archives, registers
     and statistics avail-
     able at: https://
    PÖYRY MANAGEMENT CONSULTING                                                                                        September 2019
     www.hel.fi/helsinki/
     en/housing/plots-                                                                                                               16
     land-buildings/
     building-stock

                                                  Note: the map also includes other capital region cities

                                                  Note: the map does not include very small buildings (smaller than 10 m²) or shelters, sheds, and other such building types
                                                  without a building code

                                                  Source: Urban Environment Division; City Survey Services; at Helsinki Region Infoshare

                                             In addition, temperature is an important driver of heating volumes, and increasing outside
                                             temperatures in Finland is expected to have a negative impact on the heat demand. At the same
    17                    Helsinki Energy Challenge
                                             time, demand for cooling may increase. In smaller apartments, this may increase the attractiveness
                                             of heat pumps and also drive district heating companies to increasingly offer cooling solutions to their
                                             clients.
2.4 District heating customers                    ers are not directly customers. For example
Customers are connected to district heating       in the case of apartment buildings, the hous-
via heat exchangers which transfer heat from      ing company is the district heating customer
the network to building heating systems.          instead of the individual inhabitants. Within a
Buildings typically have two heat exchangers:     property, like an apartment building, heating
one for space heating i.e. serving the radiator   costs are typically distributed based on the
network and one for domestic hot water.           dwelling’s square meters and dwelling-spe-
    Meters are used to measure the capacity       cific heat measurement is only rarely used in
requirement as well as heat consumption,          Finland.
based on district heating water flows and             Due to individual end-users not being
temperature differences. Remote metering          directly district heating customers and lack
is already the industry standard in district      of user-specific measurements, demand
heating. In remote metering, the consump-         response is not yet widespread.
tion information is collected centrally in a          Private housing companies represent a
data system. New remote meters are usually        large share of district heating customers,
hourly-based, but older meters may be             where building ownership is allocated to the
based on daily or monthly consumption.            dwelling owners. Changing heating solution,
    District heating customers are billed         or other significant changes to the heating
based on customer-specific heat consump-          system, in such buildings requires the major-
tion metering, but in many cases the end-us-      ity vote of shareholders.

18   Helsinki Energy Challenge
3 Current district heating
system in Helsinki

3.1 Principles of district                          The current production system is de-
heating system design                            signed so that each unit has its own role in
District heating systems are formed of the       the production mix and that there are no
heat transfer network, heat production units,    overlapping production units. In the summer
and the heat users with heat exchangers          time, the city-owned energy company Helen
(described in the previous chapter). District    is able to produce large amount of the heat
heat production units are designed so that       demand with heat pumps. On the other hand,
there is sufficient capacity available with      during the winter period more expensive and
reliable production to meet the heat demand      in current situation, also more emission-in-
all time, also during the coldest winter peri-   tensive production is needed.
ods. In case of the Helsinki district heating        District heating company is obliged to
network, the design temperature the system       deliver heat to its customers at all times
needs to meet is −26°C.                          based on their demand, and the production
                                                 mix needs to ensure high security of supply.

Figure 16 Map of Helsinki district heating network.

Source: Helen

19    Helsinki Energy Challenge
B&'8%5* .]* Z*
HELSINKI INNOVATION CHALLENGE

Figure 18 18
  Figure   Heat production
             – Heat        units and
                    production       capacities
                                 units          in Helsinki
                                       and capacities       DH network.
                                                        in Helsinki DH network

                                                                                                MW heat
                                                                                        2500
                                                                                                                   100
                                                                                                                   90

                                                                                        2000

                                                                                                                  1005
                                                                                        1500

                                                                                        1000        600

                                                                                                                   915
                                                                                          500
                                                                                                    730

                                                                                                                   190
                                                                                            0
                                                                                                Cogeneration    Heat only
                                                                                                Coal            Natural gas
                                                                                                Fuel oil        Pellet
                                                                                                Heat pumps

Source: Pöyry analysis, based on Finnish Energy (2018) and Helen website
Data source: Finnish Energy 2018, Helen website, Pöyry analysis

son. The temperature level of the network is                       Helsinki is located in the capital area of
primarily defined by the requirements and                      Finland with Espoo and Vantaa as its neigh-
dimensioning of customer heating systems.                      bouring cities (see Figure 17). Both Espoo
Building stock in Helsinki can be character-                   and Vantaa have their own district heating
ised as rather old where heating systems                       networks with total heat production capaci-
require high supply temperatures. Conse-                       ties of 1,500 MW and 1,000 MW, respectively.
quently, heating systems in new buildings                      The district heating system in Espoo is
are dimensioned to the prevailing network                      operated by Fortum, and the Vantaa district
temperature levels. High supply temperature                    heating system by Vantaan Energia. The
is also required due to heat losses in the large               district heat production capacity of Vantaa
network where heat is distributed long dis-                    includes also a waste-to-energy plant, which
tances. According to Helen, the company has                    utilises mixed waste from Helsinki region and
been able to lower the network mean tem-                       the Uusimaa province as a fuel for heat and
peratures and is looking into further possibili-               electricity production.
ties for achieving lower temperature levels.4                     These heat networks are connected to
    Heat demand is greater in the densely                      the Helsinki district heat network through
populated city centre area than the eastern                    heat exchanger stations. The heat exchanger
part of the network. Currently a large district                station between Helsinki and Espoo is locat-
heat tunnel is used to deliver heat from the                   ed in Northwest Helsinki, and has a capacity
Vuosaari B plant to the main network.                          of 120 MW. The heat exchanger stations

4    Helen website, available in Finnish: https://www.helen.fi/yritys/vastuullisuus/ajankohtaista/blogi/2018/
     lampomarkkinat

PÖYRY MANAGEMENT CONSULTING                                                                               September 2019
21     Helsinki Energy Challenge
                                                                                                                         21
between Helsinki and Vantaa are located in                  saari and two gas CHP plants in Vuosaari,
Northwest and Northeast Helsinki, and have                  amounting to a total district heating capacity
capacities of 50 MW and 80 MW, respectively.                of 1,330 MW. These CHP plants are operat-
   The heat exchangers enable utilising heat                ed as base load units to cover the majority
production from another network as an                       of the annual heat demand in the Helsinki
additional heat source in the Helsinki district             network. In addition, the DH system includes
heating network, and selling excess heat to                 a new pellet boiler in Salmisaari, heat pump
other networks.                                             installations in Katri Vala, and various coal-,
                                                            gas-, and oil-fuelled heat boilers utilised for
3.3 Current production                                      peak load supply and as back-up capaci-
capacity in Helsinki                                        ty. Heat-only production units amount to
District heat production in the Helsinki net-               2,500 MW of total district heating capacity.
work is primarily based on coal- and gas-fu-                    The production fleet is spread throughout
elled cogeneration (CHP) and supported                      the Helsinki region, with a focus on the cen-
by a fleet of smaller heat-only production                  tral city area and the Vuosaari plant (Fig-
units. The system is founded on two coal                    ure 18). Peak load boilers are located within a
CHP plants located in Salmisaari and Hana-                  further radius of the city centre, as they are

Table 3 Summary of heat production units in Helsinki network.

                                                                  Commissioning Heat capacity
Unit                       Unit type              Main fuel                year         (MW)

CHP units
Salmisaari B                  CHP                     Coal                  1984             300
Hanasaari B                   CHP                     Coal                  1974             430
Vuosaari A             CHP – CCGT               Natural gas                  1991             170
Vuosaari B             CHP – CCGT               Natural gas                 1998             430

Heat boilers
Salmisaari                    HOB                     Pellet                2018              90
Salmisaari                    HOB                      Coal                 1986             190
Hanasaari                     HOB             Heavy fuel oil                2009             280
Vuosaari                      HOB              Natural gas                  1989             120
Alppila                       HOB              Light fuel oil               1964             165
Munkkisaari                   HOB             Heavy fuel oil                1969             235
Ruskeasuo                     HOB             Heavy fuel oil                 1972            280
Lassila                       HOB              Natural gas                   1977            325
Patola                        HOB              Natural gas                   1982            230
Jakomäki                      HOB             Heavy fuel oil                1968              45
Myllypuro                     HOB              Natural gas                   1978            240
Katri Vala              Heat pump                           -               2006             100

Total heat capacity                                                                        3,630

Source: Pöyry analysis, based on Finnish Energy (2018) and Helen website

22     Helsinki Energy Challenge
HELSINKI INNOVATION CHALLENGE

Figure 19 19
  Figure   Heat production
             – Heat        capacities
                    production        and monthly
                                capacities        peak loads
                                           and monthly       in Helsinki.
                                                          peak  loads in Helsinki

                                                                                                            Peak (oil and gas)
                                                                                                            Heat pump
       4000   MW                                                                                            Pellet
                                                                                                            Natural gas
                                                                                                            Coal
       3500

       3000
                                                                                                    Peak boilers 2285 MW
       2500

       2000

       1500                                                                                        Katri Vala heat pump 100 MW
                                                                                                    Salmisaari HOB 90 MW
                                                                                                    Vuosaari CHP-CCGT 430 MW
       1000
                                                                                                    Vuosaari CHP-CCGT 170 MW

        500                                                                                         Hanasaari CHP 430 MW

                                                                                                    Salmisaari CHP 300 MW
          0
              Jan   Feb   Mar    Apr   May    Jun   Jul   Aug   Sep    Oct   Nov   Dec    Helen capacity

Source: Pöyry analysis, Energy Finland 2018, Helen website
Source: Pöyry analysis, based on Finnish Energy (2018) and Helen website

3.3.1.1 CHP plants and heat-only boilers in Helsinki
often   required to compensate for the tem-
Hanasaari                                                       of two identical units, each having their own
perature losses in supply water distributed                     boilers and turbines. The plant was com-
The Hanasaari
from   the main site     is located
                    heating           on the
                                sources        city centre
                                            in city centre.coastmissioned
                                                                 and comprises        theand
                                                                                in 1974   Hanasaari
                                                                                                has 430  B CHP
                                                                                                            MW ofplant
                                                                                                                    heatand
a separate heat centre used for peak capacity. Hanasaari B is a back-pressure CHP plant that
   A summary
consists    of twoof identical
                       the Helsinkiunits,DHeach
                                              network           capacity
                                                     having their           and 220
                                                                    own boilers       andMW     of powerThe
                                                                                             turbines.       capacity
                                                                                                                plant inwas
heat   production     units    is presented      in Table 3.    total. The    plant   uses
commissioned in 1974 and has 430 MW of heat capacity and 220 MW of power capacity in total.   coal  as  its main   fuel,The
   Theuses
plant    totalcoal
                production
                    as its main  system     capacity
                                   fuel, into   which of        into which
                                                       small shares   of biomasssmallpellets
                                                                                        shares  areofblended.
                                                                                                      biomassHelen
                                                                                                                 pelletshas
the
takenHelsinki   production
        the decision    to shutfleet
                                  downinthe    plant by 202411.are
                                           comparison                blended.
                                                                 Currently,    theHelen
                                                                                    plant ishas   taken the
                                                                                              operated         decision
                                                                                                          year-round    with
to                                                                               12 the plant by 20245. Currently,
themonthly
     exception peak
                  of aheat    demandbreak
                       maintenance        is presented          to shut
                                                 during the summer        down
                                                                      season       . The heat centre in the Hanasaari
in Figure   19. 6Coal-fired     unitswhich
                                        Salmisaari    B, a totalthe  plantheating
                                                                             is operated       year-round      13 the
site includes      fuel oil boilers            constitute        district             capacity    of 280 MWwith  .
Hanasaari A, and gas-fired units Vuosaari A                     exception of a maintenance break during the
Salmisaari
and   B cover most of the heat demand during                    summer season. The heat centre in the Hana-
the  winter season.
Salmisaari    is locatedIt onis evident    that the
                                 the coastline        phas- city
                                                  of Helsinki   saari  site and
                                                                    centre,   includes    6 fuel
                                                                                    the main        oil boilers
                                                                                                 production      which
                                                                                                               asset  of the
ing
site out  ofSalmisaari
     is the  coal-fired Bcapacity
                              CHP plant.in Hanasaari
                                             Salmisaari B       constitute a total
                                                         B is a back-pressure       CHPdistrict
                                                                                          plant withheating
                                                                                                        300 MW capacity   of
                                                                                                                  of district
heating
and       capacity B
      Salmisaari     and   160leaves
                       units     MW of apower     production capacity.
                                            significant         280 MW6. It uses coal and a small share of biomass
pellets
gap      as fuel
      in heat      sources. The
               production            unit was
                                 capacity    thatcommissioned
                                                   needs          in 1984 and has approximately 10 years of its
technical lifetime left14.
to be replaced.                                                 Salmisaari. Salmisaari is located on the
                                                                coastline of Helsinki city centre, and the main
CHP plants and heat-only boilers in Helsinki production asset of the site is the Salmisaari
Hanasaari. The Hanasaari site is located                        B CHP plant. Salmisaari B is a back-pressure
on the city centre coast and comprises the                      CHP plant with 300 MW of district heating
Hanasaari
11            B CHPAvailable
   Helen website.       plant and   at:a separate heat          capacity and 160 MW of power production
centre    used   for  peak    capacity.    Hanasaari    B       capacity. It uses coal and a small share of
https://www.helen.fi/yritys/energia/energiantuotanto/voimalaitokset/hanasaari/
is
12 a back-pressure CHP plant that consists
   Pöyry analysis – based on data available from Finnish        biomass
                                                                      Energypellets    as fuel sources.
                                                                                  (Kaukolämpötilasto          The unit was
                                                                                                            2017)
13
     Helen website. Available at: https://www.helen.fi/globalassets/helen-oy/tietoa-
5yrityksesta/energiantuotanto/turvallisuustiedote_hanasaari_.pdf
     Helen website. Available at: https://www.helen.fi/en/company/energy/energy-production/power-plants/
 14 hanasaari-power-plant
     Pöyry 2018, Kivihiilen kieltotyö. Available at
6https://tem.fi/documents/1410877/2132296/Selvitys_++Kivihiilen+kielt%C3%A4misen+vaikutukset/
     Helen website. Available in Finnish at: https://www.helen.fi/globalassets/helen-oy/tietoa-yrityksesta/energiantuotan-
 8fb510b4-cfa3-4d9f-a787-0a8a4ba23b5f/Selvitys_++Kivihiilen+kielt%C3%A4misen+vaikutukset.pdf
     to/turvallisuustiedote-hanasaari.pdf

PÖYRY MANAGEMENT CONSULTING                                                                                September 2019
23      Helsinki Energy Challenge
                                                                                                                                 23
commissioned in 1984 and has approximately    Vuosaari A started operation in 1991 and has
10 years of its technical lifetime left7.     170 MW of heating capacity and 150 MW of
    According to company management inter-    power production capacity. Vuosaari B was
views8, Helen has made considerable invest-   commissioned in 1998 and is considerably
ments in recent years in the modernisation    larger than the A-unit, having 430 MW of heat
of the plant in order to prolong its technicaland 450 MW of power capacity.
lifetime. Thus the plant would most probably      Both units are CCGT (combined cycle gas
have techno-economical lifetime remaining     turbine) plants and each comprises two gas
when the ban of coal use in energy produc-    turbine units which feed steam though one
tion comes into effect in Finland in May 2029.steam turbine. The main fuel of both plants
The current boiler has a technical limit of a is natural gas. The units are equipped with
maximum share of 5–10% of pellet mixed        auxiliary cooling, meaning that the units
with coal, and would require considerable     can maintain electricity production, even
investments to convert the plant to utilise   at instances of lower DH demand, by using
other fuel sources8.                          sea water to cool the steam. However, the
    The Salmisaari CHP unit is currently oper-units are primarily operated in combined
ated almost throughout the year. During the   heat and power production. The site also
summer season when district heat demand       includes a heat-only plant, comprising three
is low, the excess heat produced in the plant 40 MW boilers that use natural gas as main
is utilised in the production of district cooling
                                              fuel source. This back-up plant was commis-
via an absorption cooling unit instead of di- sioned in 1989.
recting this heat to sea water8. This produc-    The merit order, i.e. the order in which the
tion process is also known as trigeneration,  plants are operated when not all capacity is
where heat generated in CHP production is     needed, is based on market conditions. In
used to generate district cooling.            recent years the Vuosaari CHP units have
    The Salmisaari site also includes a 190 MWoften been positioned after the Salmisaari
coal boiler (Salmisaari A, commissioned in    and Hanasaari coal CHP units in the merit
1986), and a new 90 MW pellet boiler (com-    order due to market conditions i.e. fuel and
missioned in 2018). Salmisaari A has seen     electricity wholesale prices as well as fuel
low utilisation in the recent years due to thetaxation and CO2 prices9.
high cost of utilising coal in heat only produc- The CCGT units have higher power-to-heat
tion. Furthermore, the boiler will be reachingratios and therefore produce more electric-
the end of its technical lifetime in the late ity per one unit of heat produced compared
2020’s. The new pellet boiler started opera-  to Salmisaari and Hanasaari coal CHP plants.
tion in 2018 and is primarily used to replace Thus as the electricity market prices have
the use of oil and gas in peak load demand.   been relatively low in the recent years, the
                                              Vuosaari units have been used to mainly
Vuosaari. The Vuosaari production site is     complement Hanasaari and Salmisaari when
located 15 km northeast of the Helsinki city  their capacity does not cover the entire heat
centre and includes two gas-fired CHP plants, demand or when electricity prices are high
Vuosaari A and B, as well as one heat-only    enough.
plant for back-up and peak load capacity.

7    Pöyry (2018). Kivihiilen kieltotyö. Available in Finnish at:https://tem.fi/documents/1410877/2132296/Selvi-
     tys_++Kivihiilen+kielt%C3%A4misen+vaikutukset/8fb510b4-cfa3-4d9f-a787-0a8a4ba23b5f/Selvitys_++Kivi-
     hiilen+kielt%C3%A4misen+vaikutukset.pdf

8    Helen website. Available in Finnish at: https://www.helen.fi/globalassets/helen-oy/tietoa-yrityksesta/energiantuotan-
     to/salmisaari_turvallisuustiedote_2017.pdf

9    Pöyry analysis, based on operational data from Finnish Energy (2018)

24     Helsinki Energy Challenge
Characteristic to CCGT technology is                         tion capacity that is online does not cover the
that the units have fast ramp-up times and                      entire demand. Therefore heat accumulators
such plants are more flexible to operate                        provide flexibility to the district heating sys-
compared to coal CHP units. Flexibility in                      tem and allow more economical and environ-
this context refers to the ability to operate                   mentally-friendly district heating production,
the units at varying output levels. The ramp-                   as storage units are typically dispatched to
up time for Vuosaari A when cold started is                     avoid the start-up of peak load boilers.
approximately 6.5 hours10.                                         There are currently two heat accumula-
                                                                tors installed in the Helsinki district heating
Other heat boiler sites. In addition to the key                 system, which are located at the Salmisaari
sites, the Helsinki district heating network                    and Vuosaari production sites. The two accu-
includes heating plants in Alppila, Jakomäki,                   mulators are approximately of the same size
Lassila, Myllypuro, Munkkisaari, Patola, and                    and have a combined storage capacity of ca.
Ruskeasuo. These sites are peak load and                        2,250 MWh of heat, and each have 100 MW of
back-up boilers used in extreme weather                         heat dispatch capacity.
conditions, during maintenance of base load                        In addition to existing storage capacity,
units, and function as back-up capacity in                      Helen has ongoing projects for two addition-
case of malfunctions. These boilers use fuel                    al heat storage units to be placed in Mustik-
oil and natural gas as main fuel sources.                       kamaa and Kruunuvuorenranta. A summary
                                                                of existing and planned heat storage capacity
Heat storage capacity                                           in Helsinki DH network is outlined in Table 4.
Heat accumulators in district heating net-
works are typically large storage tanks for                     Current utilisation of waste
hot water, which are charged when there                         and surplus heat sources
is excess supply compared to demand and                         Waste and surplus heat is utilised in the
similarly dispatched when the heat produc-                      Helsinki district heating system via heat

10 Nurmi, K. (2014). Flexible operation of CCGT plant in cogeneration. Available in Finnish at:http://urn.fi/
   URN:NBN:fi:aalto-201412233301

Table 4 Existing and planned heat storage capacity in Helsinki DH network.

                                Storage        Storage       Dispatch          Charging
                                 volume        capacity      capacity       temperature         Commissioning
Storage unit                        (m³)         (MWh)          (MW)               (°C)                  year
Vuosaari                        25,000             1,250           100                  90                  1998
Salmisaari                      20,000            1,000            100                  90                  1987
Mustikkamaa                    320,000           11,600            120                  90                  2021
Kruunuvuorenranta              300,000            4,500             1,5                 18                   n. a.

Source: Helen website. Available in Finnish at:https://www.helen.fi/yritys/vastuullisuus/ajankohtaista/blogi/2019/
postkivihiili

25     Helsinki Energy Challenge
pumps and leveraging the combined heating                     Esplanadi cooling plant. The Esplanadi cool-
and cooling network infrastructure. Currently                 ing plant has two heat pumps that produce
approximately 10% of all DH supply in Helsin-                 both heating and cooling. The plant is located
ki network is based on waste heat utilisation.                50 meters below the Esplanadi Park in the
Sources of waste heat include excess heat                     centre of Helsinki. The plant also includes
from buildings, businesses such as data                       25,000 m3 cold water storage. Esplanadi
centres, and sewage water; this waste heat                    station uses heat pumps to recover heat
is then re-used in the production of district                 from district cooling return water and has
heating.                                                      20 MW of heating capacity, and a total of
   The most notable sites for waste heat                      50 MW of cooling capacity when including
utilisation are Katri Vala heat pump station                  the discharge capacity of cold storage. The
and Esplanadi cooling plant.                                  heat pumps started operation in 201813.

Katri Vala heat pump station. Katri Vala                      Open district heating. Helen has recently
heating and cooling plant was commissioned                    launched a new pricing model for purchas-
in 2006 and is the world’s largest heat pump                  ing waste and surplus heat from its district
station with 100 MW of heating and 60 MW of                   heating customers. This model is based on a
cooling capacity11. The plant is located under                voluntary agreement, where Helen commits
the Katri Vala park in Sörnäinen, which is                    to purchasing all excess heat but does not
adjacent to the Hanasaari power plant site.                   obligate the customer to sell. The producer
   Katri Vala plant utilises heat recovered                   is compensated for the supplied heat by a
from the return water from the district cool-                 seasonal tariff structure, which is based on
ing network and wastewater. As the district                   Helen’s production costs and total demand
cooling water returns to the heat pump                        for district heating, thus valuing excess
station, it recovers the heat acquired from                   heat during heating season over the cooling
cooling customers and transfers it to the                     season.
district heating network by using the plant’s
heat pumps. This combined with the waste
heat from sewage water is used for district
heating.
   Currently the plant is used for base load
but it potentially also adds flexibility to the
Helsinki district heating system. The plant
currently comprises 5 heat pumps which
can be operated independently. During the
coldest ambient temperatures, the district
heating produced in Katri Vala is primed
with heat from Hanasaari site to reach the
required supply temperature of 115°C.12

11   Helen website. Available at: https://www.helen.fi/en/company/energy/energy-production/power-plants/
     katri-vala-heating-and-cooling-plant

12 Valor Partners (2016). Large Heat Pumps in District Heating Systems. Available in Finnish at: https://energia.fi/
   files/993/Suuret_lampopumput_kaukolampojarjestelmassa_Loppuraportti_290816_paivitetty.pdf

13 Helen website. Available at: https://www.helen.fi/en/news/2018/
   underground-heating-and-cooling-plant-utilises-waste-heat

26     Helsinki Energy Challenge
Figure 20 District heat production by unit type and energy source in Helsinki, 2018.

                       DH production by unit type                        DH production by energy source
         GWh                                                                           3% 1%
7 000
               5 950
6 000                                                                                 8%
                                                                                                      Coal
5 000
                                                                                                      Natural gas
4 000                                                                                          53 %   Heat pumps
                                                                               35 %
3 000                                                                                                 Bio fuels
2 000                                                                                                 Fuel oil
1 000                          580           630
                                                              40
     0
               CHP          Heat pumps   Heat boilers   Purchased heat

Source: Finnish Energy (2019), Helen website

Heat generation in Helsinki                                     demand, about 50% of Helsinki district
with current production units                                   heat demand is produced with heat pumps.
Heat generation is mostly based on cogene-                      However, during cold winter weather this
ration in Salmisaari, Hanasaari, and Vuosaari.                  share is 5%, which is mostly recovered from
The share of CHP generation was 85% of                          wastewater15.
all heat production in 2018 (Figure 20). The
Hanasaari and Salmisaari coal CHP units are                     Current investment plans
operated the most. Heat pumps accounted                         to replace coal in Helsinki
for approximately 580 GWh of heat gener-                        Helen plans on implementing the coal phase-
ation and heat procurement from adjacent                        out in two stages, where the first stage in-
district heating networks (Espoo and/or Van-                    volves the closure of the Hanasaari coal CHP
taa) accounted for 40 GWh. The remainder of                     by 2024, followed by the second stage where
the heat was produced with heat-only boilers.                   the Salmisaari coal CHP unit is shut down or
    Coal and natural gas are the main fuels                     converted to other fuels by 2029. Helen has
of the CHP units and therefore compose                          been evaluating options for replacement and
the majority of the total fuel consumption.                     it is likely that the replacement solution will
In 2017 the Helsinki district heating system                    be a combination of different technologies
fuel usage comprised: coal approximately                        and heat sources.
7,500 GWh (60%), natural gas 4,500 GWh                              Helen’s current plan for the first stage
(36%), and pellet, fuel oil, and electricity                    of replacements consists of a new biomass
550 GWh (4%).                                                   heat-only boiler (HOB) plant investment,
    The Katri Vala heat pump plant produced                     increasing waste heat recovery and heat
approximately 8% of all district heating in                     pump capacity, geothermal heat, locality-lev-
Helsinki and 70–75% of district cooling in                      el heating solutions, as well as increased
2017. According to Helen14, Katri Vala station                  heat procurement from the adjacent district
can produce the majority of the heat demand                     heating networks in Espoo and Vantaa. In
of the city centre during the summer season,                    addition, the Mustikkamaa heat storage unit
when the district cooling demand is the                         adds flexibility to the system. A summary of
highest. During the period of peak cooling                      Helen’s replacement plan for Hanasaari coal

14 Helen website. Available at: https://www.helen.fi/en/news/2018/newheatpump

15 Yle. Available in Finnish at: https://yle.fi/uutiset/3-9843548

27       Helsinki Energy Challenge
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