Results: Drivers and Barriers for Flexibility in the District Heating-Electricity Interface 5.6. Country Profile: Norway 36 5.6.1. Main Drivers and Barriers Norway has a high share of reservoir-based hydropower production, and the need for short-term flexibility in the energy system is currently limited. The Norwegian heat supply is heavily dependent on individual electricity technologies, and the DH sector is very small. The extent of storage systems and CHP is very limited, but electric boilers made up 13% of the DH production in 2014. Table 10: Framework conditions for flexibility in the DH‐electricity interface in Norway NORWAY Framework conditions for CHP Absence of mandatory procurement of electricity Absence of feed‐in tariffs Absence of feed‐in premiums Presence of market pricing for electricity Presence of power capacity payments Presence of other subsidy to CHP Presence of tax exemptions for fuel to electricity production Presence of energy, CO2 or other tax reductions Presence of grid connection discounts Absence of tariffs levied on CHP for feeding into grid Framework conditions for P2H Absence of PSO on electricity (when used for heat generation) Absence of Grid tariffs on electricity (when used for heat generation) Absence of other levies or taxes on electricity (when used for heat generation) Presence of reduced electricity tax on electric boilers Presence of reduced electricity tax on heat pumps Absence of regulatory priority to heat from waste, RES, biomass or geothermal Presence of subsidy for heat pumps Presence of subsidy for electric boilers Framework conditions for general resources Absence of heat price regulation ‐ price caps Absence of heat price regulation ‐ flat tariff structures Absence of heat price regulation – profit caps in commercially owned DH Absence of operational practice of generation following demand Absence of tax exemption for RES fuels Absence of subsidies for HO boilers 5.6.2. Flexibility Options in the DH System Only 15 of 93 DH companies in Norway were coproducing electricity and heat in 2012. 11 of these 15 are waste incinerators. These companies are however quite large in the DH sector, and their total heat production constituted of around 40% of the total gross district heat production. These companies are nevertheless very small in the electricity market. Their power production constituted of around 0.3% of the total electricity production in Norway in 2012 and around 12% of the total production of thermal power. Electric boilers contributed to 13% of the total heat production in 2014, and heat pumps 9% (Statistics Norway 2016b). The total net production of district heat was around 5 TWh. Only a few DH producers have invested in heat storages. Seasonal storages are non-existent in Norwegian DH.
WP2 DH report
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