Page 44

WP2 DH report

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
To see the actual publication please follow the link above