Our society is becoming electrified rapidly. In heat production, heat pumps are becoming more common in both small and large applications, while electric vehicles are rapidly entering the mainstream. Industry is also looking to electricity to reduce production emissions. Electricity is seen as an acceptable option and, above all, one suited to tighter environmental and sustainability targets.
Electricity’s growing acceptance among industry and consumers is supported by the sharp rise in renewable electricity generation in recent years. Wind and solar power in particular have expanded rapidly as production costs have fallen. Most new electricity generation capacity in Europe is based on solar and wind.
Growth in renewable electricity generation is also essential for green hydrogen production, which is expected to play a major role in achieving carbon neutrality in the chemical and heavy industries. Hydrogen combined with carbon dioxide capture is also an interesting option for producing sustainable gases, complementing biogas supply over the long term.
Electricity already offers a competitive option for industrial heat production, including through waste heat recovery and heat pumps. Biogas can be a viable option alongside these solutions or for backup and peak heat production.
Industry is also showing interest in electric steam production. In Finland, industrial electrification is supported by the reduction in energy tax refunds for energy-intensive industry that began at the start of this year. The refunds will be phased out completely by the end of 2024.
District heating networks could bring new energy flows together
District heating is Finland’s most common heating method. Combustion will remain the backbone of its production for a long time, but electrification is changing this too. Electricity has already become a viable option for both district heat production and connected properties.
One emerging electrification solution involves drilling to depths of around one to two kilometres to create medium-depth geothermal wells. These require less space than conventional ground-source heating and are particularly suited to dense urban areas. Medium-depth geothermal wells could be an efficient part of district heating networks. Unfortunately, current district heating tariffs do not sufficiently support introducing other heat sources alongside centralised production.
For properties seeking alternatives, the current trend seems to be to disconnect from district heating, as its high basic charge discourages retaining it for backup and peak demand. Disconnecting also removes the opportunity to feed a property’s surplus heat into the network.
I firmly believe that district heating networks could become platforms for optimised energy flows that treat third parties equally. Anyone could supply energy to them, and new property heating solutions could be used efficiently at high utilisation rates. For customers, this would mean greater energy efficiency and freedom to choose the service provider that best suits them.
Perttu Lahtinen, CEO of Auris Energiaratkaisut
Auris Energy already offers several services suited to an increasingly electrified and open heating system.