Presentation of Frederiksberg Utility

Kristian E. Beyer, Frederiksberg Forsyning

Jan Gregor, Frederiksberg Forsyning

1

Agenda

• About Frederiksberg Utility

• District heating

• District cooling

2

About Frederiksberg Utility

• 8.8 km2 covered

• 102,000 citizens

• 94% live in apartments

• 50% of all households has only 1 person

• 6,800 businesses

• Most densely populated area in Denmark

Frederiksberg Municipality in brief

Frederiksberg Hav eFrederiksberg Hav eFrederiksberg Hav eFrederiksberg Hav eFrederiksberg Hav e

ZooZooZooZooZoo

SøndermarkenSøndermarkenSøndermarkenSøndermarkenSøndermarken

FrederiksbergHospital

FrederiksbergHospital

FrederiksbergHospital

FrederiksbergHospital

FrederiksbergHospital

Skt. JørgensSø

Skt. JørgensSø

Skt. JørgensSø

Skt. JørgensSø

Skt. JørgensSø

Greater Copenhagen

• Multiple Utility: District heating, water, gas, waste water, district cooling, wind- and sun

energy

• Turnover: 583 mill. DKK in 2014

• Approx. 175 employees

Frederiksberg Utility in brief

6

Energy Group

Frederiksberg Municipality

Frederiksberg Energy

Frederiksberg Water Frederiksberg Forsyning (supply)

Frederiksberg Sewage Frederiksberg Forsyning Property

Frederiksberg Gas A/S

Frederiksberg Energi Service

Frederiksberg Wind (34 %)Frederiksberg District Heating

Frederiksberg District Cooling

BIOFOS (8,1 %)

System companies Running companies

7

History

• 1860 – Gas (started as a private company)

• 1865 – Sewage

• 1869 –Water (started as a private company)

• 1899 – Electricity (started as a private company)

• 1903 – District heating

• 1921 – All five supplies are run by the municipality

• 2000 - Frederiksberg Forsyning is established

• 2005 – DONG Energy buys the electricity business

• 2012 – Frederiksberg District Cooling is established

• 2013 – BIOFOS A/S established (ownership 8,1 %)

• 2014 – Frederiksberg Vind A/S established

Climate adaption

• The municipality has a goal of significant energy and CO2 reductions

• Frederiksberg Utility is a crucial factor in reaching thesegoals

• This results in projects in• Energy reduction in buildings

• Efficient energy production

• Smart utilities

8

District Heating

District Heating Frederiksberg

Denmarks first district heating utility

established in 1903

• Heating from power plants (CHP):

coal, garbage, biomass, natural gas

and oil.

• The local peak utility may supplythe whole of Frederiksberg.

• 99 % of Frederiksberg is heated by district heating.

• 87 km of main pipes.

• 70 km of consumer supply lines.

6

Collaborations in the Sector

8

• District heating supply is a natural

monopoly in Denmark.

• The Danish Energy Regulatory Authority

(DERA), monitors the DH prices and

delivery terms. DERA takes regulatory

action if the prices and terms, are not in

line with the non-profit regime – or if they

are unfair in any other way.

• The sale of district heating, is usually

organized within a single company,

within the boundaries of the municipality.

District Heating Regulation & Business model

9

• Environmentally friendly and cheap.

• High level of comfort and minimum maintenance.

• Warning e-mails for consumption and cooling changes.

• Control centre 24/7.

• Advice by smartphone and specialservicing deals.

Advantages of District Heating

Consumption this year, last year –

and two years ago.

7

75 m² apartment approximately uses 15 MWh8.606 kr./yr

130 m² house approximately uses 18

MWh 10.979kr./yr

10

District Heating Prices

11

Taxes

Includes

Kr/GJ

Energy taxes 22,01

Co2 tax 4,88

So2 tax 0,05

NOx tax 0,68

Garbage/heat

tax

5,35

Taxes is a part of the heat price in Denmark

DH price & taxes

DH prices DH taxes

Strategy and Future Projects

Reducing Heat Demand – at the Customer

• Costs of switching to District Heating

og replacing outdated installations is

a barrier to customers.

• Therefore we are offering customers

help with investments.

• Costs of equipment and service is

part of the ordinary price of heating.

Heating 10.000 DKK

Installed unit 5.000 DKK

Total 15.000DKK

Example

DH Policy Movements

The ambition of the Danish

government is that the country

is 100% free of fossil fuel by

2050 and that electricity and

district heating must be 100 % fossil free already before 2035.

• District Heating will play a central role in the future smart grid

Smart Grid

DH Net

Gas net

Electricity net

District Cooling

Frederiksberg District Cooling

• 2010 First analysis of the potential for district cooling - 2 or 3 potential areas on Frederiksberg

• 2013 First customer contract

• 2014 District cooling plant operational

• 2014 Contract Carlsberg Byen

• 2015- Plant expansion

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Current customers

• Frederiksberg

• Cooling shopping centre 2.6 MWh

• The cooling plant consists of a compressor unit and energy

storage and dry coolers

• The plant will be developed with add ons, fx heatpumps and

groundwater cooling

• Carlsberg Byen

• When the area is fully utilized the cooling effect is 15 MW

• The cooling plant consists of a compressor unit and energy

storage and dry coolers

• All energy is supplied from renewable sources, ie. Solar or wind

energy

• The plant will be developed with add ons, fx heatpumps and

groundwater cooling

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District cooling is a 360 decision

Regulation

Potential

OrganizationTechnology

Price

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The Lawyer

The Business

The Technician

The Customer

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Potential

Uncovering the potential for district cooling is a long proces

• What is the actual cooling need?

• Type of cooling

• Current cooling plant

• Ownership of buildings

• Dialog with customers

The Danish potential

• 2300 GWh

• Process cooling the largest share

25

Type of cooling needed

Technologies

26

The technical solution consists of known solutions

Frikøling

Kompressor Absorbtion Groundwater

Seawater Dry coolers Energy storage

Advantages

• Energy and emission reduction (up to 70%)

• Lower costs

• Better utilization of buildings

27

Future development

28

Benefits: • 2200 MW heatpumps potentially

avoided

• Synergi with smart grid

• Cheaper heating and cooling

• 26 % energy savings by coproduction of cooling and heating compared to seperateproduction.

• Customers in most cities

Contact information

Frederiksberg Forsyning A/S

Stæhr Johansens Vej 38

2000 Frederiksberg

Tlf. 38 18 50 00

ff@frb-forsyning.dk 29

Kristian E. Beyer

Business Development Director

Frederiksberg Forsyning A/S

Direkte +45 38 18 51 19

Mobil +45 30 76 61 19

E-mail: keb@frb-forsyning.dk