Local or district heating by natural gas: Which is better from energetic, environmental and economic point of views?

Generally, a CHP plant coupled with district heating is considered more efficient than traditional local heating systems from an economic and environmental point of view. This is certainly true for municipal waste CHP plants, but for plants fuelled by natural gas the important developments of the last years regarding both boilers (premixed and modulating burners, condensing boilers, etc.) and mechanical vapour compression and absorption heat pumps can change the traditional view. At the same time also district heating plants improved. Therefore it is worth to analyse the whole matter comparing advantages and disadvantages of the different alternatives, with a wide difference between them.The paper reports on the analysis of major district heating natural gas based technologies (vapour and gas turbines, internal combustion engine, combined cycles); the cost of heat and power produced in these plants is compared to the cost of producing the same quantity of electrical energy by a reference GTCC—Gas Turbine Combined Cycle (actually the most efficient technology for pure electrical production) and the cost of heat production by modern local heating technologies using natural gas as fuel (condensing boilers, electrical, gas engine and absorption heat pumps). Regarding energy efficiency and emissions, modern local heating turns out to be more efficient than district heating for most CHP technologies. However, the same does not happen from an economic point of view, because in Italy natural gas used by cogeneration plants is subjected to a much lower taxation than local heating technologies.