District Energy Options Evaluating District Energy Systems

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Edward L. Morofsky

A District Energy System, or DES, has a number of recognized advantages when compared with decentralized units. These include the increased combustion efficiency obtainable with larger plants; the ability to burn less costly, higher-energy fuel than most individual heating plants; the more efficient performance of central plants owing to continuous operation and professionally maintained equipment; and the reduction in total plant capacity required to cope with the varied timing of individual loads. Despite high initial capital costs, these advantages result in lower life cycle financial and energy costs, when district energy systems are well designed and located
appropriately.

Several Canadian circumstances have affected the development of district energy systems. Extensive use of hydro power, representing well over half the present Canadian capacity, has
resulted in fewer thermal generating stations near urban centres. Future generating capacity is likely to contain a decreasing percentage of hydro power (EMR 1973) as total electrical demand grows and suitable hydro sites diminish in number and ease of development. Accordingly this trend will present opportunities to locate future thermal stations at sites with good DES potential. The existence of significant summer cooling demands in many Canadian cities increases the potential Evaluating District Energy Systems annual usage of a DES and the associated savings.

Recent increases in fossil fuel prices have prompted renewed interest in district energy systems since the savings in fuel costs can be used to off-set some of the network costs. Heat losses have
been reduced by recent improvements in piping hot and chilled fluids. Furthermore, it seems clear the DES’s are compatible with many of the strategies that have been proposed to deal with the energy crisis, from utilizing waste heat to recycling urban wastes.