Increased cogeneration of renewable electricity through energy cooperation in a Swedish district heating system - A case study

The present study of the district heating (DH) system in the city of Kisa, Sweden, shows how, through energy cooperation with a nearby sawmill and paper mill, a local energy company contributes to energy-efficient DH and cost-effective utilization of a new biofuel combined heat and power (CHP) plant. Cases of stand-alone and integrated energy systems are optimized with the linear program MODEST. The European power market is assumed to be fully deregulated. The results show clear advantages for the energy company to cooperate with these industries to produce heat for DH and process steam for industry. The cooperating industries gain advantages from heat and/or biofuel by-product supply as well. The opening to use a biofuel CHP plant for combined heat supply results in cogenerated electricity of almost 29 GWh/a with an increased biofuel use of 13 GWh/a, zero fuel oil use and CO2 emission reductions of 25,800 tons CO2/a with coal-condensing power plant on the margin and biofuel as limited resource. The total system cost decreases by −2.18 MEUR/a through extended cooperation and renewable electricity sales. The sensitivity analysis shows that the profitability of investing in a biofuel CHP plant increases with higher electricity and electricity certificate prices.