Work

Day ahead market clearing model for low-temperature district heating systems based on urban waste heat

Year: 2026

Type: article

Abstract: Low-temperature district heating systems supplied from urban waste heat sources are becoming increasingly important in achieving the sustainability targets of the heating and cooling sector. This paper investigates these systems by introducing a day-ahead market clearing model for low-temperature district heating systems, which are primarily supplied by low-temperature urban waste heat sources. The model offers a comprehensive assessment focusing on energy, economic, and environmental aspects of low-temperature district heating systems while incorporating market incentive models such as the Feed-in Premium model. Additionally, the model incorporates the EU Emission Trading System to assess the impact of greenhouse gas trading on economic outcomes. The results are presented through a series of diagrams highlighting the effects of various market and economic parameters on the viability of incorporating urban waste heat into district heating systems. Results showed that the Ultra low temperature configuration achieved a levelized cost of heat of 93 €/MWh, with a primary energy factor of 0.288 and a carbon emission factor of 0.037, markedly lower than the 150 €/MWh, 1.187, and 0.241 values recorded for conventional gas-based systems. Furthermore, the study showed that urban waste heat, primarily from data centres (supplying 88% of the heat) and supported by fixed Feed-in Premium market schemes, reduced the investment payback period from 2.2 years to 1.4 years. This enhances economic feasibility, despite some components having longer payback periods.

Source: Applied Thermal Engineering

DOI: 10.1016/j.applthermaleng.2026.130116

Authors: Josip Miškić, Tomislav Pukšec

Institutions: University of Zagreb, Faculty of Mechanical Engineering and Naval Architecture in Zagreb

Language: English

Topic: Integrated Energy Systems Optimization

Subfield: Electrical and Electronic Engineering

Field: Engineering

Domain: Physical Sciences

SDGs: Climate action, Affordable and clean energy, Responsible consumption and production, Sustainable cities and communities, Industry, innovation and infrastructure

Open Access status: hybrid

Estimated APC paid: $3,660