Sweden is a country that since long have prioritized the development of energy-smart solutions and the optimization of energy systems to reduce its energy consumption. Energy usage encompasses various needs, including heating buildings and premises, but most importantly, heating of residential properties. Today, nearly half of all heating is done through district heating, and the transition towards the idealization of this energy source is therefore crucial for future climate transitions. This development is now focused on a new generation of district heating technology called the fourth-generation district heating (4GDH). These technologies aim to reduce distribution temperatures from the current third-generation district heating technology (3GDH), which operates at 80-120°C in forward flow and 40-60°C in return flow, to 55-70°C in forward flow and 20-35°C in return flow.  The present report addresses what 4GDH may look like, with a focus on low-temperature district heating islands within an existing 3GDH network. The project is based on energy efficiency, competition from heat pumps, and recent customer demands, which necessitate the modernization of low-temperature networks to ensure the competitiveness of district heating. The objective of this work is therefore to gain an overview of the potential for improvement when establishing a low-temperature district heating network within an existing network, considering ecologic and economic perspectives. Using the programme NetSim, five different scenarios for conventional and low-temperature installations in Eskilstuna have been simulated. The results show that a low-temperature installation becomes significantly more expensive when only considering pipe prices, with economic losses amounting to approximately 1.05 million SEK in case 1 and around 0.91 million SEK in case 2. However, it was observed that the low-temperature networks in case 1 and 2 have significantly lower heat losses, primarily due to the material of the heat carrier but also the temperature difference in the pipes. An economic calculation was made, which revealed savings compared to the conventional network in each case, with profits of approximately 37 200 SEK and 24 400 SEK for each case, respectively. Regarding the assumed dimensioning, it is also evident that the hydraulic balance in the low-temperature networks is better than in the conventional one. In the lower temperature networks, temperature losses in the forward flow of up to 0.5°C and 0.6°C can be observed for case 1 and 2, respectively, while the conventional networks lose up to 6,4°C and 10,4°C. It can also be noted that there is a higher pressure drop in the low-temperature networks due to increased flow velocity to ensure power delivery. Furthermore, contact with Mälarenergi has confirmed that a hot water central system works well and should be utilized when switching from the primary network.

This master thesis aims to develop an assessment tool for decision-making regarding future establishment of low-temperature district heating (LTDH). The tool is created as an indicator system on behalf of Södertörns Fjärrvärme AB (SFAB). SFAB is currently responsible for the distribution of high-temperature district heating (HTDH) to customers in the municipalities of Huddinge, Botkyrka, and Salem. The indicator system is designed to, in a first assessment step, examine the conditions that a delimited area has for conversion to lower system temperatures to be possible. Each indicator is quantified and graded. When using the system, a weighted final judgement is generated which indicates whether an area is suitable for LTDH or not. Furthermore, the purpose of this thesis is to also evaluate the tool by applying it to various areas within SFAB. This enables analysis and discussion regarding the tool's function in a real context. The development of the indicator system is the main result of the study. It consists of four indicators that take the following aspects into account: qualitative conditions (KA), conditions on the customer side (AA), the economic benefit (CRG), and the system condition (STA). The results from the implementation show that one out of five case-areas have good potential to be converted to LTDH, while the remaining cases fall below the limit for what is considered acceptable. No area from this project ends up over 75% of the maximum score, which would indicate very good potential. To validate the indicators, Pearson's correlation coefficient was calculated. The results show that there is a negligible to a weak correlation between all indicators, except KA & STA which has a strong correlation. For an HTDH area to be relevant for conversion to LTDH, the qualitative context of the area should be suitable, and the secondary side should be able to be supplied with lower temperatures. Furthermore, there should be an opportunity for increased system capacity and finally, a conversion should be economically beneficial. The application of the indicator system is an efficient and uncomplicated approach that makes it possible to identify areas that have the potential to develop district heating in a more sustainable direction. It is also possible for stakeholders to subsequently modify the indicator system if desired. In the longer term, the indicator system is an incentive for new business opportunities, increased energy efficiency, and increased economic benefits.

Thermal energy storage (TES) systems are technologies with the potential to enhance the efficiency and the flexibility of the coming 4th generation low temperature district heating (LTDH). Their integration would enable the creation of smarter, more efficient networks, benefiting both the utilities and the end consumers. This study aims at developing a comparative assessment of TES systems, both latent and sensible heat based. First, a techno-economic analysis of several TES systems is conducted to evaluate their suitability to be integrated into LTDH. Then, potential scenarios of TES integration are proposed and analysed in a case study of an active LTDH network. This is complemented with a review of current DH legislation focused on the Swedish case, with the aim of taking into consideration the present situation, and changes that may support some technologies over others. The results of the analysis show that sensible heat storage is still preferred to latent heat when coupled with LTDH: the cost per kWh stored is still 15% higher, at least, for latent heat in systems below 5MWh of storage size; though, they require just half of the volume. However, it is expected that the cost of latent heat storage systems will decline in the future, making them more competitive. From a system perspective, the introduction of TES systems into the network results in an increase in flexibility leading to lower heat production costs by load shifting. It is achieved by running the production units with lower marginal heat production costs for longer periods and with higher efficiency, and thus reducing the operating hours of the other more expensive operating units during peak load conditions. In the case study, savings in the magnitude of 0.5k EUR/year are achieved through this operational strategy, with an investment cost of 2k EUR to purchase a water tank. These results may also be extended to the case when heat generation is replaced by renewable, intermittent energy sources; thus increasing profits, reducing fuel consumption, and consequently emissions. This study represents a step forward in the development of a more efficient DH system through the integration of TES, which will play a crucial role in future smart energy system. / Thermal energy storage (TES) eller Termisk energilagring är en teknologi med potentialen att öka effektivitet och flexibilitet i den kommande fjärde generationens fjärrvärme (LTDH). Studien har som mål att kartlägga en komparativ uppskattning av TES systemen, baserad både på latent och sensibel värme. Resultaten visar att lagring av sensibel värme är att föredra före latent värme när den kopplas med LTDH: pris per lagrade kWh kvarstår som 15% högre än för latent värme i system under 5 MWh av lagringsutrymme; dock fordrar de endast hälften av volymen. Utifrån systemperspektiv innebär introduktionen av TES system i nätverket en ökning av flexibilitet vilket leder till reducerade värmeproduktionskostnaderna i mindre belastning. I fallstudien nås en sparnivå av femhundra euro per år genom denna operativa strategi, med en investering av 2000 euro för inköp av vattentank. Resultaten kan också vidgas till en situation där värmeproduktionen ersätts av förnybara, intermittenta energikällor; till detta medföljer högre vinster, lägre bruk av bränsle vilket skulle innebära lägre utsläpp. Studien kan ses som ett steg framåt mot skapandet av en mer effektiv DH system genom integrationen av TES, vilket kommer att spela en betydande roll i framtida smarta energisystem.

District heating (DH) systems have been commonplace in Europe for over a century. These systems have undergone an evolution since their conceiving, and today we are at the precipice of the next major transition from the third-generation district heating system (3GDH) to the fourth generation (4GDH). Current 3GDH systems operate at a supply temperature in-between 80 °C - 100 °C and a return temperature of around 45 °C. Future 4GDH systems will operate at a supply temperature below 70 °C and return temperature as low as 25 °C, and therefore, will integrate waste heat available at low temperatures, and renewable heat sources.The literature review performed here shows that low temperature DH (LTDH) systems have several benefits over their conventional temperature DH (CTDH) predecessor and achieve lower operating costs for some technologies when compared to the CTDH alternative. Therefore, in this thesis, a TIMES (The Integrated MARKAL-EFOM System) model is used to simulate the operation of a DH system. The learnings from the literature review were incorporated into the model so that certain operational differences between CTDH and LTDH systems could be compared.In this context, the aim of this project is to analyse the effects of flexibility options on the operation of a DH system, and to compare these effects between CTDH and LTDH systems. Flexibility options in DH systems are technologies and concepts that work towards balancing heat generation and demand in thermal grids and can also help balance power generation and demand in electrical grids. Examples of flexibility options are thermal energy storage (TES) tanks, and seasonal energy storages (e.g., borehole TES (BTES), caverns (CTES), and pits (PTES)). These flexibility options have already been implemented in varying amounts in today’s CTDH systems and will therefore have to provide the same service with LTDH systems in the future.As part of the REWARDHeat project (grant agreement No. 857811), the Swedish city of Helsingborg was used as the case-study in this thesis. The city’s heating sector was incorporated into a TIMES heat model and simulated for the period 2017 to 2052. The existing CTDH system model was then adapted to a LTDH system model and simulated for the same time horizon. Both the CTDH model and LTDH model were simulated for a case with TES available and then for a case where TES was not available, to better-identify the flexibility benefits. The effect of electricity prices on the operation of the system was also studied, where one case uses electricity prices that are on the conservative (i.e., higher) side and another on the ambitious (i.e., lower) side. This means that a total of eight scenarios were simulated and analysed.The results show that more heat storage capacity is utilised in the LTDH system due to TES technologies having lower heat losses. Also, it was found that peak shaving was more pronounced in the LTDH system. This is due to more base heat supply in the system from more excess heat, and from STES discharging. This means that the required installed capacity of heat generating technologies are lower compared to the CTDH alternative. This all translates to TES technologies facilitating greater savings in total system cost, by almost 10%, in the LTDH system. The CTDH and LTDH systems studied in this thesis (i.e., with and without TES) are seen to transition from being a net electricity generator to being a major electricity consumer. This is due to reducing electricity prices going into the future, which incentivise investments into heat pumps (HPs), eventually making the systems (with combined heat and power (CHP) plants in the mix in the earlier years) HP-dominated. The inclusion of TES technologies is shown to accelerate this transition in both CTDH and LTDH systems studied in this thesis. More electricity is generated in the CTDH system than in a LTDH system as the cost savings from running HPs (due to higher coefficients of performance (COP) in low-temperature operation) offsets the revenue from electricity sales.Finally, the effect of electricity prices is also seen in the results. Lower electricity prices favour more DH production from HPs, while higher electricity prices incentivise increased production from CHP plants. The results show that the CTDH system gives the network operator more freedom (than in the LTDH system) to respond to electricity prices.Therefore, to conclude, LTDH systems can make more use of the flexibility provided by TES technologies due to lower heat losses, as shown through DH production volumes being lower, and through more peak shaving.Similar studies in future could incorporate a sensitivity analysis on the COPs of HPs in LTDH systems, given that this parameter seems to greatly influence the cost optimised strategy for operating DH systems. Also, it may be beneficial to expand the study into incorporating the city’s power sector, which would mean incorporating the electricity demand into the model. It would be interesting to see if this would cause the model to invest in other technologies other than HPs, or if it might still make more financial sense to import the electricity at market prices. Finally, the cost of transitioning from a CTDH system to a LTDH system could also be considered in the model, as it was not the case in this project. This would probably show that the financial benefit of LTDH systems is less than what is predicted in this study. / Fjärrvärmesystem har varit vanliga i Europa i över hundra år. Dessa system har utvecklats sedan de utformades, och idag står vi inför nästa stora övergång från tredje generationens fjärrvärmesystem (3GDH) till fjärde generationen (4GDH). Dagens 3GDH-nät fungerar med en framledningstemperatur mellan 80 °C och 100 °C och en returtemperatur på cirka 45 °C. Framtida 4GDH-nät kommer att fungera vid en framledningstemperatur under 70 °C och en returtemperatur så låg som 25 °C, och kommer därför att integrera spillvärme som är framkomlig vid låga temperaturer och förnybara värmekällor.Litteraturstudien som gjorts i den här studien visar att fjärrvärmenät med låg temperatur har flera fördelar jämfört med deras föregångare med konventionell temperatur och att driftskostnaderna för vissa tekniska system är lägre än för alternativet med konventionell temperatur. I denna avhandling används därför en TIMES-modell (The Integrated MARKAL-EFOM System) för att simulera driften av ett fjärrvärmesystem. Lärdomarna från litteraturstudien användes i modellen för att vissa driftskillnader mellan dessa två system så att de kunde jämföras. I detta sammanhang är syftet med detta projekt att analysera effekterna av flexibilitetsalternativ på driften av ett fjärrvärmesystem och att jämföra dessa effekter mellan konventionella temperaturer och lågtemperaturssystem. Flexibilitetsalternativ i fjärrvärmenät är teknologi och koncept som arbetar för att balansera värmeproduktionen och efterfrågan i termiska nät och som också kan bidra till att balansera elproduktionen och efterfrågan i elnätet. Exempel på flexibilitetsalternativ är lagringstankar av värmeenergi och säsongsbundna energilägen (till exempel lagring av värmeenergi i borrhål, grottor och gropar). Dessa flexibilitetsalternativ har redan införts i varierande omfattning i dagens fjärrvärmenät och kommer därför att användas med lågtemperaturnät i framtiden.Som en del av REWARDHeat-projektet (bidragsavtal nr 857811) användes den svenska staden Helsingborg som fallstudie i denna studie. Stadens värmesektor införlivades i en TIMES-värmemodell och simulerades för perioden 2017–2052. Den befintliga fjärrvärmenät modellen med konventionell temperatur anpassades sedan till en fjärrvärmenätmodell med låg temperatur och simulerades för samma tidsperiod. Båda modellerna simulerades för ett fall där värmeenergilagring var tillgänglig och sedan för ett fall där värmeenergilagring inte var tillgänglig, för att bättre identifiera flexibilitetsfördelarna. Effekten av elpriserna på systemets funktion undersöktes också, där ett fall använder elpriser som är på den konservativa (dvs. högre) sidan och ett annat på den ambitiösa (dvs. lägre) sidan. Detta innebär att totalt åtta scenarier simulerades och analyserades.Resultaten visar att mer värmelagringskapacitet utnyttjas i fjärrvärmesystemet med låg temperatur på grund av att tekniken för lagring av värmeenergi har mindre värmeförluster. Det konstaterades också att lastutjämning var mer i fjärrvärmesystemet med låg temperatur. Detta beror på att det finns mer grundvärme i systemet på grund av mer överskottsvärme och på att värmeenergilagringar i borrhålen laddas ur. Detta innebär att den installerade kapacitet som krävs för värmeproducerande teknologi är lägre jämfört med alternativet med konventionell temperatur. Allt detta innebär att tekniken för lagring av värmeenergi möjliggör större besparingar i den totala systemkostnaden, med nästan 10 %, i fjärrvärmesystemet med låg temperatur. De konventionella och lågtemperatur fjärrvärmesystem som studeras i denna avhandling (dvs. med och utan lagring av värmeenergi) övergår från att vara nettogeneratorer av el till att bli stora elkonsumenter. Detta beror på att elpriserna kommer att sjunka i framtiden, vilket ger incitament till investeringar i värmepumpar, vilket i slutändan gör att systemen (som har haft kraftvärmeverk i mixen under tidigare år) kommer att domineras av värmepumpar. Införandet av tekniken för värmeenergilagring visar sig påskynda denna övergång i båda de system som studeras i denna avhandling. Det produceras mer el i fjärrvärmesystemet med konventionell temperatur än i ett fjärrvärmesystem med låg temperatur, eftersom kostnadsbesparingarna från drift av värmepumpar (på grund av högre prestandakoefficienter) med låg temperatur uppväger intäkterna från elförsäljning.Slutligen syns också effekten av elpriserna i resultaten. Lägre elpriser gynnar mer värmeproduktion från värmepumpar, medan högre elpriser stimulerar ökad produktion från kraftvärmeverk. Resultaten visar att fjärrvärmesystemet med konventionell temperatur ger nätoperatören större frihet (än i fjärrvärmesystemet med låg temperatur) att reagera på elpriserna.Sammanfattningsvis kan man därför konstatera att fjärrvärmesystem med låg temperatur i högre grad kan utnyttja den flexibilitet som tekniken för värmeenergilagring ger på grund av lägre värmeförluster, vilket visas genom att produktionsvolymerna för fjärrvärme är lägre och genom en högre grad av lastutjämning.Liknande studier i framtiden skulle kunna omfatta en känslighetsanalys av värmepumparnas prestandakoefficient i fjärrvärmesystem med låg temperatur, eftersom denna parameter verkar ha stor betydelse för den kostnadsoptimerade strategin för driften av systemet. Det kan också vara fördelaktigt att utvidga studien till att omfatta stadens energisektor, vilket skulle innebära att elbehovet inkluderas i modellen. Det skulle vara intressant att se om detta skulle få modellen att investera i andra tekniker än värmepumpar, eller om det fortfarande skulle vara mer ekonomiskt fördelaktigt att importera el till marknadspris. Slutligen skulle kostnaden för att övergå från ett fjärrvärmenät med konventionell temperatur till ett fjärrvärmenät med låg temperatur också kunna beaktas i modellen, eftersom så inte var fallet i detta projekt. Detta skulle förmodligen visa att den ekonomiska fördelen med fjärrvärmenät med låg temperatur är mindre än vad som förutses i denna studie.