Métier B2T –District Heating and Cooling

Presentation – IDEA 10th June 2018

Dr-Ing. Michael Schack

Director Networks and Cogenerations
ENGIE

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SUMMARY

Chapter 1 ENGIE and the energy revolution

Heating and Cooling what is at stake ?

Chapter 2 The role of District Heating and Cooling

Chapter 3 District Heating and Cooling

ENGIE AND THE ENERGY REVOLUTION
 ENGIE ID
card
A GLOBAL AND DIVERSIFIED FOOTPRINT*

€65 billion ACTIVITIES IN 153,000 EMPLOYEES 112.7 GW

OF REVENUES (IN 2017) 70 COUNTRIES ACCROSS THE WORLD (IN OF INSTALLED POWER
2017) PRODUCTION CAPACITY
133,770 emp.
4,350 emp. 2016 rev.: €52.7 billion 3,130 emp.
2016 rev.: €4.7 billion 44.7 GW installed** 2016 rev.: €2.9 billion
11.7 GW installed** 7.5 GW installed**
Europe*** 1,380 emp.
North America 2016 rev.: €0.5 billion Asia
26.3 GW installed**
Middle East

6,235 emp.
2016 rev.: €3.9 billion 400 emp.
3,825 emp.
17.2 GW installed** 2016 rev.: €0.3 billion
2016 rev.: €1.6 billion
1.4 GW installed**
Latin America 3.9 GW installed**
Africa Oceania
¨* Figures as of 31 December 2016
** Installed capacity at 100%
*** Including Turquey
**** Including Mexico

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AN ENERGY REVOLUTION IS ONGOING

The new energy world is characterized by decarbonization, decentralization

and digitalization (the 3 “D”).

DECARBONIZATION DECENTRALIZATION DIGITALIZATION

Worldwide renewable Decentralized solutions Digital disrupts energy

energies: annual to more than double by systems and improves
additional capacity to 2030 customer offers
grow by +70% in 2030
vs 2015

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CITIES & REGIONS: AT THE HEART OF THE ENERGY TRANSITION
IN A FAST CHANGING WORLD
IEA Scenario “Energy for all” 2030 Cities

B2T & B2B

Microgrids
B2C
Off-grid Solutions
2 % of World Area

36% 20%
50 % of World Population

75 % of World Energy Consumption

Centralized
power generation
44% (80% today) 80 % of World GHG

DECARBONIZATION DECENTRALIZATION DIGITALIZATION

Source: IEA, Energy for All, 2011; MIT 2015 6

A COMPETITIVE POSITIONING

Digital DIGITAL 3D PLANNING/

Solutions SERVICES CONNECTIVITY DASHBOARDS
(ex. data integration/apps) (ex. Wireless Technologies) (ex. Simulation Software)

Services
AIRPORTS BUILDING GREEN DISTRIBUTED
SERVICES MANAGEMENT MOBILITY ENERGY
(ex. Airside Services) (ex. Automation, Smart) (ex. Traffic management) (ex. Smart & micro-grids)

Infrastructures PLANTS, DHC & PUBLIC SECURITY/

NETWORKS MOBILITY LIGHTING SAFETY
(ex. low CO2energies) (ex. Tramway) (ex. Automation) (ex. Integration of Systems)

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CITIES: A PRESENCE ON ALL “VERTICALS” ANSWERING TO
TRANSVERSAL CUSTOMERS NEEDS
Our customers’ needs
Distributed Energy
SMART
To improve Government Waste
(with
Security and Resilience partners)

Water
(with partners)
To benefit from
Building
Fluid & Green mobility
Lighting
To ensure an
Enjoyable environment
District Heating
& Cooling
To develop the
Local attractiveness Security Green Mobility

To allow to ICT Infrastructure CityOS(1) Data Analytics

Reduce costs
(1) Includes city management tools such as dashboards to enable city stakeholders to make informed decisions

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HEATING AND COOLING WHAT IS AT STAKE?
The role of District Heating and Cooling
HEATING IS 50% OF FINAL ENERGY CONSUMPTION

Heat dominates global energy consumption providing key services such as space
heating, hot water and industrial process heat.

Sources: IEA (2017a), World Energy Statistics and Balances 2017 (database), www.iea.org/statistics/; IEA (2017b), World Energy Outlook 2017.
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Notes: Heat includes electricity used to produce heat which accounts for just over 6% of heat consumption.
TOTAL GLOBAL ENERGY CONSUMPTION FOR HEAT, 2015

Almost three-quarters of heat consumed is

produced through the direct combustion of
oil, coal, natural gas.

Fossil fuels continue to dominate global heat consumption. Heat is therefore an

important contributor to CO2 emissions.

Sources: IEA (2017a), World Energy Statistics and Balances 2017 (database), www.iea.org/statistics/; IEA (2017b), World Energy Outlook 2017. 11
THE ROLE OF DISTRICT HEATING AND COOLING SYSTEMS

• District heating accounted

for around 11% of heating
energy consumption in
2013 (IEA, 2016) ;
• In highly-populated areas of
cold climate regions with
high heating demand, large-
scale district heating
systems are usually feasible
and cost-effective;
• Small-scale district
networks are increasingly
being deployed to service
groups of buildings such as
university campuses or
hospitals ;

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SHARE OF RENEWABLE HEAT IN HEAT CONSUMPTION, 2015

• Some district networks also supply cooling based on renewables or natural cooling (e.g. Paris uses cool water
from the Seine River for its district cooling scheme) ;
• Expanding the supply of heat through district heating is a major plank of low-carbon heat strategies in some
countries (e.g. the UK and Netherlands) and some cities (e.g. Paris, Munich and Vancouver)

Sources: Eurostat (2017a) and IEA analysis. 13

DISTRICT HEATING AS AN ENABLER FOR HIGH SHARES OF
RENEWABLE HEAT

• In dense urban areas, district heating networks may offer the only option for using a significant share of
renewables and other low-carbon heat;
• District heating also provides opportunities for integrating short-term and seasonal thermal storage, for using
excess heat (e.g. from industry), and for providing flexibility for variable renewable electricity generation;

Sources: Eurostat (2017a), Eurostat (2017b), Euroheat and Power (2016). 14

DISTRICT HEATING & COOLING
DISTRICT HEATING & COOLING

Improvement in Less CO2 Less water Less electricity Less usage

energy efficiency emissions consumption consumption of chemicals

Comparison of performance with stand-alone systems

STRATEGY - DHC AS THE BACKBONE OF SUSTAINABLE CITIES
Integrating smart thermal grids into future sustainable energy systems (4th generation
DHC)

1G: Steam (~200°C) 2G: Pressurized hot-water 3G: The scandinavian model 4th GENERATION:
- Steam pipes in concrete (> 100°C) - Pressurized hot-water but - Low-temperature (40-60°C) district
ducts - Water pipes in concrete with T° < 100°C heating, low grid losses
- Powered by coal plants ducts - Use of local fuels (biomass, - Integrated to smart energy
- Appeared in US and Europe - Fuel savings through CHP industry waste, solar) in systems: gas, electricity (RES),
DISTRICT HEATING NETWORK

- Widespread in USSR response to the oil crisis renewable heat and recycled heat

DISTRICT COOLING NETWORK

- US, Europe, China, - Intelligent control and metering
Canada… - Linked to a district cooling
Solar systems
therma
Biomass, l Long-
PV,
CHP term
wave,
Biomass storage
Heat wind Solar
Industr surplus
Storag y therma
e Heat l
surplu Storag District
Heat s e cooling
CHP Storag CHP Cold
Steam plant
coal, e waste, Industr storag
storag Centralized
CHP oil CHP coal, y e
e heat pump
CHP gas, surplu
CHP oil, s
Coal, Coal, Gas, CHP
waste Waste waste, oil, waste,
coal incineratio Efficienc
n y
1st Generation: 1880 – 1930 2nd Generation: 1930 – 3rd Generation: 1980 – 2020 4th Generation: 2020 – 2050
1980

Source: Aalborg University and Danfoss District Energy, 2014

DHC AS THE BACKBONE OF SUSTAINABLE CITIES
Interconnected systems (4th generation DHC)

Electricity and heat systems are likely to become increasingly interlinked, with a growing
use of heat pumps and thermal storage

Source: IEA (2014b), Linking heat and electricity systems.

CITIES: A PRESENCE ON ALL “VERTICALS” answering
TO TRANSVERSAL CUSTOMERS NEEDS
Our customers’ needs
Distributed Energy
SMART
To improve Government Waste
(with
Security and Resilience partners)

Water
(with partners)
To benefit from
Building
Fluid & Green mobility
Lighting
To ensure an
Enjoyable environment
District Heating
& Cooling
To develop the
Local attractiveness Security Green Mobility

To allow to ICT Infrastructure CityOS(1) Data Analytics

Reduce costs
(1) Includes city management tools such as dashboards to enable city stakeholders to make informed decisions

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A BRILLANT FUTURE FOR DHC AND A PRIVILEGED GROWTH
VECTOR FOR ENGIE
• Energy systems are currently experiencing some fundamental changes, driven by
policy (especially related to climate change), technological innovation (e.g.
digitalisation), and economics (e.g. falling PV prices)

• The new energy world is characterized by decarbonization, decentralization and

digitalization with modern DHC at the heart of the energy revolution.

• 3rd and 4th generation DHC Systems are the most efficient way to decarbonize
dense areas like City Centers, or tertiary or industrial parks, and will be the
backbone of the sustainable City of Today and of Tomorrow.

• Engie together with its partners in different parts of the world, believes that DHC
will create tremendous value for customers and stakeholders and has identified
it as a privileged growth vector significantly contributing to Engie transformation.

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THANK YOU !

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