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EUBCE 2024 - Tapio RANTA - Price Development and Competitiveness of Biomass-Based District Heating Compared to Fossil Fuels

Price Development and Competitiveness of Biomass-Based District Heating Compared to Fossil Fuels

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Price Development and Competitiveness of Biomass-Based District Heating Compared to Fossil Fuels

Short Introductive summary

In Finland, district heating production has moved quickly from fossil fuels to renewable alternatives. About 75% of the municipalities that use district heating produce heat mainly with renewable fuels or waste heat. Although the use of waste heat and various heat pump solutions and electric boilers are increasing, a large part of heat production is still based on the burning of fuels - especially biomass. With the energy crisis of 2022, the prices of fossil fuels in particular rose rapidly, and there have been challenges regarding the availability of fuels. There has been upward pressure on the price of district heating due to the general cost level and especially the increase in the price of fuels. A quick return to previous price levels is not in sight. The purpose of this study is to find out how the price of biomass-based district heating has developed over the last decade, and how the price of fuel has affected it. It is compared to district heating produced with fossil fuels. It is assumed that the competitiveness of biomass-based district heating has increased with the increase in the price of fossil fuels and accelerated the transition to the use of biomass.

Presenter

Moderator portrait

Tapio RANTA

LUT University, School of Energy Systems, FINLAND

Presenter's biography

Tapio Ranta holds a professorship in Bioenergy Economics and has been working in Lappeenranta-lahti University of Technology (LUT University) at the School of Energy Systems since 2003. He has specialized in forest biomass supply systems and logistics, biomass markets, and trade.

Biographies and Short introductive summaries are supplied directly by presenters and are published here unedited


Co-authors:

T. Ranta, LUT University, Lappeenranta, FINLAND
M. Laihanen, LUT University, Lappeenranta, FINLAND
A. Karhunen, LUT University, Lappeenranta, FINLAND

Session reference: 3AV.6.6