Comparison of Suitable Business Models for the 5th Generation District Heating System Implementation through Game Theory Approach

Abstract

District Heating and Cooling (DHC) technology is widely recognised as a promising solution for reducing primary energy consumption and emissions. The 5th Generation District Heating and Cooling (5GDHC) network is the latest DHC concept characterised by low-temperature supply, bi-directional heating network operation, decentralised energy flows, and surplus heat sharing. Unlike the 4th Generation District Heating (4GDH) technology, the 5GDHC technology switched to a consumer/prosumer-oriented perspective. The introduction of 5GDHC solutions requires high investments, an important barrier to further developing DHC systems. Therefore, a novel pricing and business model could include introducing co-owners or energy managers into the system. Three different local market business models for 5GDHC at the community level have been tested. The reverse technical and economic simulation has been used for a feasibility study to determine the resources, business models, and combinations closest to the break-even point with lower costs and higher gains for all involved stakeholders.

Keywords

• business models
• game theory
• prosumers
• 5th generation district heating