LowTEMP

19 partners from nine countries and 30 associated organisations gathered together in order to provide district heating stakeholders with know-how and strategic tools on planning, financing, installing and managing Low Temperature District Heating systems (LTDH). The project involved municipal, regional and national authorities, DH suppliers, energy agencies, associations, business support organisations, as well as research institutions.

Boosting implementation with new methodology and training

LowTEMP developed a methodology for strategies to increase energy efficiency in existing and new district heating networks. The methodology provides specific step-by-step guideline on how to develop energy strategy and apply it at municipal level. It contains area analysis, stocks evaluations, analysis of increasing energy efficiency potential, technical preconditions and requirements of district heating, profitability assessment, CO2 balance and monitoring methods.

With 26 modules containing information on strategies and concepts to the best practices, the project provided valuable training material as a basis for training on different possibilities of heating supply, technical and financing issues, as well as corporate development of energy strategies and business models.

Local pilots inspire

The tailored solutions based on the current type of the district heating supply infrastructures, the existing problems and potential for improvement were tested in pilots across the Baltic Sea region. For instance, in Aluksne (Latvia) energy efficiency measures were introduced in a kindergarten in order to prepare for future LTDH system. In Holbaek (Denmark) the pilot implemented a LTDH subnet in a conventional DH network; in Halmstad (Sweden) a low-temperature district heating grid was installed in a completely new residential area; in Gulbene (Latvia) an existing heating network was converted to a low temperature concept, with low temperature heating system, with more efficient wood pellet boiler house and newly constructed heat pipes being provided to some municipal buildings. More about the pilot measures can be found here.

Improved calculations on economic efficiency and business modelling

LowTEMP developed a calculation method, which helps understand the profitability and funding gap of a given district heating project. It is based on the evaluation of the internal rate of return and net present value of an investment over a period of 20 years. It includes an excel based calculation tool, a manual and an analysis for more background information on financial framework and funding gaps. The tool allows to calculate investments for grid and/or generating plants.

Additionally, publishing the Study on Business Models and Innovative Funding Structures the project presented a business model on tools based on low temperature district heating. It provides examples of innovative pricing models, new value chains, business opportunities, as well as innovative funding structures. A toolbox and a template of a business model canvas complement the study. The material is developed for district heating companies and municipalities, who want to examine new business opportunities and understand how they could change their business model and funding structure for district heating in a low temperature district heating scenario.

The project wanted not only to prove that district heating upgrades are a necessity to counteract the inefficiency of outdated systems, but also that upgrades are financially profitable for end-users and operators. So further initiatives and investments in smart and sustainable district heating systems should be triggered. LowTemp tools help exactly in this, as they are ready-for-use means to take steps towards improving district heating systems. This is a way on which the pilot municipalities already made steps forward.

The Interreg project LowTEMP used EUR 3.45 million from the European Union to enable the implementation of low temperature district heating. Besides the introduction of new technical and financial strategies, the project has additionally succeeded in strengthening cooperation with H2020 project Cool DH, Halmstad University, HafenCity University, Euroheat & Power which paved the way for new collaborations in district heating.