10.1007/s40095-017-0241-9

Impact of economical mechanisms on CO2 emissions from non-ETS district heating in Latvia using system dynamic approach

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  • Jelena Ziemele*1,
  • Einars Cilinskis1,
  • Gatis Zogla1,
  • Armands Gravelsins1,
  • Andra Blumberga1,
  • Dagnija Blumberga1,
  1. Institute of Energy Systems and Environment, Riga Technical University, Riga, LV-1048, LV
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Published in Issue 2017-07-14

How to Cite

Ziemele, J., Cilinskis, E., Zogla, G., Gravelsins, A., Blumberga, A., & Blumberga, D. (2017). Impact of economical mechanisms on CO2 emissions from non-ETS district heating in Latvia using system dynamic approach. International Journal of Energy and Environmental Engineering, 9(2 (June 2018). https://doi.org/10.1007/s40095-017-0241-9
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Abstract

Abstract A system dynamics modeling approach was used to analyze the impact of economical mechanisms on CO 2 emissions from the Latvian district heating system that is not covered by the European Union (EU) Emission Trading System (non-ETS). Three policy instruments were included in the system dynamic model: carbon tax, subsidies for solar technologies, and funding for energy-efficient building renovations with the aim to decrease energy consumption. Eight development scenarios were examined, taking into account different policy mixes for the transition of the heat network to the low-temperature regime. The heat tariff was used as the main indicator to determine the pace and structure of the technology change. The existing natural gas technologies and three renewable energy technologies (biomass combustion equipment, heat pump, and solar collectors with accumulation) were included in the model. Modeling results show substantial CO 2 reduction potential; however, the results are highly dependent on the applied financial instruments. It is recommended to apply a policy mix, including all the proposed policy instruments—carbon tax, subsidies for solar technologies, and funding for energy-efficient renovation.

Keywords

  • Fourth generation district heating,
  • Carbon tax,
  • System dynamics modeling,
  • Renewable energy,
  • Sustainable energy,
  • Non-ETS emissions,
  • Latvia
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