ESCO business models for biomass heating and CHP: Profitability of ESCO operations in Italy and key factors assessment

Renewable and Sustainable Energy Reviews

Volumn 30, Issue , 2014, Pages 237-253

  Pantaleo, Antonio ^a,b   Candelise, Chiara ^b   Bauen, Ausilio ^b   Shah, Nilay ^b  

^a UNIVERSITY OF BARI   (Italy)

^b IMPERIAL COLLEGE LONDON   (United Kingdom)

Author keywords

Biomass heat; Boiler; CHP; District heating; Organic Rankine cycle (ORC); Wood chip

Indexed keywords

BIOMASS; BOILERS; COGENERATION PLANTS; COSTS; HEAT GENERATION; HOUSING; INVESTMENTS; PROFITABILITY; RANKINE CYCLE; THERMAL LOAD; WOOD PRODUCTS; HEATING;

COMMUNITY HOUSINGS; DISTRICT HEATING NETWORKS; INDUSTRIAL CASE STUDY; ORGANIC RANKINE CYCLE(ORC); REPRESENTATIVE CASE; RESIDENTIAL SECTORS; TECHNO-ECONOMIC ASSESSMENT; WOOD CHIP; CHP;

DISTRICT HEATING;

BIOMASS; BOILERS; COGENERATION; COSTS; HEATING; HOUSINGS; POWER PLANTS; PROFITABILITY; WOOD PRODUCTS; MARKET RESEARCH;

EID: 84887283488     PISSN: 13640321     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.rser.2013.10.001     Document Type: Review

References (122)

1. European Directive 2009/28/CE of 23 Aprile 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC.
2. E. Vine An international survey of the energy service company (ESCO) industry Energy Policy 33 2005 691 704 (Pubitemid 39408030)
3. P Bertoldi, S Rezessy, and E. Vine Energy service companies in European countries: current status and a strategy to foster their development Energy Policy 34 2006 1818 1832
4. Bertoldi P, Rezessy, S., European energy service companies status report 2005. Office for Official Publications of the European Communities, Luxembourg, 2005.
5. Marino et al. Energy service companies market in Europe. status report 2010. Publications Office of the European Union, Luxembourg. 2010
6. Labanca N., 2010. Task 2.1: Status and development of the energy efficiency service business in 18 EU countries. Available at: / http://www.changebest.eu.
7. A Marino, P Bertoldi, S Rezessy, and B. Boza-Kiss A snapshot of the European energy service market in 2010 and policy recommendations to foster a further market development Energy Policy 39 10 2011 6190 6198
8. N Okay, and U. Akman Analysis of ESCO activities using country indicators Renewable Sustainable Energy Rev 14 9 2010 2760 2771
9. EL Vine, C Murakoshi, and H. Nakagami International ESCO business opportunities and challenges: a Japanese case study Energy 23 1998 439 447 (Pubitemid 28335751)
10. E Vine, H Nakagami, and C. Murakoshi The evolution of the US energy service company (ESCO) industry: from ESCO to super ESCO Energy 24 1999 479 492
11. HA Davies, and EKS. Chan Experience of energy performance contracting in Hong Kong Facilities 19 2001 261 268
12. Poole AD, Stoner TH. Alternative financing models for energy efficiency performance contracting. In: Workshop: "developing the business of energy efficiency performance contracting"; 2003, http://3countryee.org/Perform- Contract/.
13. Efremov D, Smirnyagin D, Valerianova O, Hernesniemi H. ESCO companies in northwest Russia legal issues and organizational schemes. The Research Institute of the Finnish Economy. Discussion Paper No. 912; 2004. http:// ideas.repec.org/p/rif/dpaper/912.html.
14. CA Goldman, NC Hopper, and JG. Osborn Review of US ESCO industry market trends: an empirical analysis of project data Energy Policy 33 2005 387 405 (Pubitemid 39102659)
15. Larsen, PH, Goldman, Ca, Satchwell, A. (2012). Evolution of the U.S. energy service company industry: market size and project performance from 1990-2008. Energy Policy50, 802-820. 10.1016/j.enpol.2012.08.035.
16. Sorrell S. The contribution of energy service contracting to a low carbon economy. Tyndall Centre technical report no. 37; 2005. http://www.tyndall.ac. uk/%20research/theme2/final-reports/t3-21.pdf.
17. S. Sorrell The economics of energy service contracts Energy Policy 35 1 2007 507 521 (Pubitemid 44597245)
18. KD Patlitzianas, H Doukas, and J. Psarras Designing an appropriate ESCOs' environment in the Mediterranean Manage Environ Qual Int J 17 2006 538 554 (Pubitemid 44395722)
19. H Ren, W Zhou, W Gao, and Q. Wu Promotion of energy conservation in developing countries through the combination of ESCO and CDM: a case study of introducing distributed energy resources into Chinese urban areas Energy Policy 39 12 2011 8125 8136
20. J. Watson Co-provision in sustainable energy systems: the case of micro-generation Energy Policy 32 17 2004 1981 1990 (Pubitemid 38673593)
21. Mancarella P, et al. Advanced architectures and control concepts for more Microgrids, WPH, DH3. Business cases for Microgrids, EC FP6 more Microgrids project, http://www.microgrids.eu/documents/682.pdf, 2009.
22. Italian National Action Plan for Renewable Energy (Dir 28/2009), June 2010.
23. Y Huang, YD Wang, S Rezvani, DR McIlveen-Wright, M Anderson, and NJ. Hewitt Biomass fuelled trigeneration system in selected buildings Energy Convers Manage 52 6 2011 2448 2454
24. HI Onovwiona, and VI. Ugursal Residential cogeneration systems: review of the current technology Renewable Sustainable Energy Rev 10 5 2006 389 431 (Pubitemid 43289298)
25. JL Míguez, JC Morán, E Granada, and J. Porteiro Review of technology in small-scale biomass combustion systems in the European market Renewable Sustainable Energy Rev 16 6 2012 3867 3875
26. R Saidur, Ea Abdelaziz, a Demirbas, MS Hossain, and S. Mekhilef A review on biomass as a fuel for boilers Renewable Sustainable Energy Rev 15 5 2011 2262 2289
27. Novak-zdravkovic A, Ruyck JD. Small scale power generation from biomass. In: 14th European biomass conference 2005: (pp. 17-21). Paris.
28. Mehmet Esen, and Tahsin Yuksel Experimental evaluation of using various renewable energy sources for heating a greenhouse Energy Build 65 2013 340 351
29. B Polagye, K Hodgson, and P. Malte An economic analysis of bio-energy options using thinnings from overstocked forests Biomass Bioenergy 31 2-3 2007 105 125 (Pubitemid 46107846)
30. aV Bridgwater, aJ Toft, and JG. Brammer A techno-economic comparison of power production by biomass fast pyrolysis with gasification and combustion Renewable Sustainable Energy Rev 6 2002 181 246
31. J. Gigler On optimisation of agri chains by dynamic programming Eur J Oper Res 139 3 2002 613 625 (Pubitemid 34249637)
32. H. Gunnarsson Supply chain modelling of forest fuel Eur J Oper Res 158 1 2004 103 123
33. BH Bakken, HI Skjelbred, and O. Wolfgang eTransport: investment planning in energy supply systems with multiple energy carriers Energy 32 9 2007 1676 1689 (Pubitemid 46898694)
34. S van Dyken, BH Bakken, and HI. Skjelbred Linear mixed-integer models for biomass supply chains with transport, storage and processing Energy 35 3 2010 1338 1350
35. M Ebadian, T Sowlati, S Sokhansanj, M Stumborg, and L. Townley-Smith A new simulation model for multi-agricultural biomass logistics system in bioenergy production Biosyst Eng 2011 1 11
36. J Keierstead, N Samsatli, A Pantaleo, and N. Shah Evaluating biomass energy strategies for a UK eco-town with an MILP optimization model Biomass Bioenergy 39 2012 306 316
37. atli benonysson, benny bohm, and hans f. ravn Operational optimization in a district heating system Energy Convers Manage 36 5 1995 297 314
38. S Kelly, and M. Pollitt An assessment of the present and future opportunities for combined heat and power with district heating (CHP-DH) in the United Kingdom Energy Policy 38 11 2010 6936 6945
39. I Vallios, T Tsoutsos, and G. Papadakis Design of biomass district heating systems Biomass Bioenergy 33 4 2009 659 678
40. AA Rentizelas, IP Tatsiopoulos, and A. Tolis An optimization model for multi-biomass tri-generation energy supply Biomass Bioenergy 33 2 2009 223 233
41. C Weber, and N. Shah Optimisation based design of a district energy system for an eco-town in the United Kingdom Energy 36 2 2011 1292 1308 10.1016/j.energy.2010.11.014
42. P Voll, C Klaffke, and M. Hennen Automated superstructure generation and optimization of distributed energy supply systems ECOS 2012 2012 1 13
43. H Ren, W Zhou, K Nakagami, and W. Gao Integrated design and evaluation of biomass energy system taking into consideration demand side characteristics Energy 35 5 2010 2210 2222
44. M Bruglieri, and L. Liberti Optimal running and planning of a biomass-based energy production process Energy Policy 36 7 2008 2430 2438
45. a Dunnett, C Adjiman, and N Shah Biomass to heat supply chains applications of process optimization Process Saf Environ Prot 85 5 2007 419 429 (Pubitemid 47477512)
46. A Pantaleo, B De Gennaro, and N. Shah Assessment of optimal size of anaerobic co-digestion plants: an application to cattle farms in the province of Bari (Italy) Renewable Sustainable Energy Rev 20 2013 57 70
47. Oa Shaneb, G Coates, and PC. Taylor Sizing of residential μCHP systems Energy Build 43 8 2011 1991 2001
48. H Ren, W Gao, and Y Ruan Optimal sizing for residential CHP system Appl Therm Eng 28 5-6 2008 514 523
49. AM Pantaleo, SM Camporeale, and N. Shah Thermo-economic assessment of externally fired micro-gas turbine fired by natural gas and biomass†̄: applications in Italy Energy Convers Manage 75 2013 202 213
50. H Ren, and W. Gao Economic and environmental evaluation of micro CHP systems with different operating modes for residential buildings in Japan Energy Build 42 6 2010 853 861 10.1016/j.enbuild.2009.12.007
51. a Hawkes, and M. Leach Cost-effective operating strategy for residential micro-combined heat and power Energy 32 5 2007 711 723 (Pubitemid 46108364)
52. Pantaleo A, Camporeale S, Shah N. Operating strategies for natural gas - biomass dual fuelled microturbines in the Italian residential sector, 21st European Biomass Conference, Copenaghen 4-7 June 2013, pp 1075-1085, ISBN 978-88-89407-53-0
53. M Kautz, and U. Hansen The externally-fired gas-turbine (EFGT-Cycle) for decentralized use of biomass Appl Energy 84 7-8 2007 795 805 (Pubitemid 46754651)
54. J Kaikko, and J. Backman Technical and economic performance analysis for a microturbine in combined heat and power generation Energy 32 4 2007 378 387 (Pubitemid 44959528)
55. I Keppo, and T. Savola Economic appraisal of small biofuel fired CHP plants Energy Convers Manage 48 4 2007 1212 1221 (Pubitemid 46283121)
56. a Rentizelas, S Karellas, E Kakaras, and I. Tatsiopoulos Comparative techno-economic analysis of ORC and gasification for bioenergy applications Energy Convers Manage 50 3 2009 674 681
57. a Rentizelas, a Tolis, and I. Tatsiopoulos Biomass district energy trigeneration systems: emissions reduction and financial impact Water, Air, Soil Pollut Focus 9 1-2 2008 139 150
58. P Thornley, P Upham, Y Huang, S Rezvani, J Brammer, and J. Rogers Integrated assessment of bioelectricity technology options Energy Policy 37 3 2009 890 903
59. A Pantaleo, MT Carone, and A."Potentials and feasibility assessment of small scale CHP plants fired by energy crops in Puglia region (Italy)" in Biosystems Engineering,Volume 102, Issue 3, 2009, Pages 345-359
60. W.M. Budzianowski Opportunities for bioenergy in Poland: biogas and biomass fuelled power plants Rynek Energii 94 3 2011 138 146
61. SR Wood, and PN. Rowley A techno-economic analysis of small-scale, biomass-fuelled combined heat and power for community housing Biomass Bioenergy 35 9 2011 3849 3858
62. L Okkonen, and N. Suhonen Business models of heat entrepreneurship in Finland Energy Policy 38 7 2010 3443 3452
63. Biosolesco IEE project (IEE/07/264). web site www.biosolesco.org.
64. Paul Arwas Associates for Carbon Trust. (2005). Biomass sector review for the Carbon Trust. Retrieved from http://www.carbontrust.com.
65. Brodies LLP. (2007). Making ESCOs Work: guidance and advice on setting up & delivering an ESCO. London. Retrieved from www.lep.org.uk.
66. Kelly, S,Pollitt, M. The local dimension of energy, EPGR WP 1103, Cambridge WP in Economics, http://www.dspace.cam.ac.uk/bitstream/1810/241873/1/ cwpe1114.pdf, 2011.
67. TNEI Enterprise with energy. (2007). ESCO feasibility study final report. Retrieved from http://manchesterismyplanet.com/about-and-history/esco- feasibility-study.
68. Pantaleo A, Shah N. The logistics of bioenergy routes for heat and power. Biofuels: economy, environment and sustainability, Intech open access ISBN 980-953-307-471-4 2012.
69. Sussex, J. The economics of the private finance initiative in the NHS. London, 2001.
70. A Pantaleo, N Shah, and J. Keirstead Bioenergy and other renewables in urban energy systems: potentials, conversion routes and future trends J Keirstead, N Shah, Urban energy systems - an integrated approach 2013 Taylor and Francis 161 197
71. Ludkowski M., Optimal switching with applications to energy tolling agreements. PhD thesis. Princeton University, 2005.
72. S Jablonski, A Pantaleo, A Bauen, P Pearson, C Panoutsou, and R. Slade The potential demand for bioenergy in residential heating applications (bio-heat) in the UK based on a market segment analysis Biomass Bioenergy 32 2008 635 653
73. Q Gu, H Ren, W Gao, and J. Ren Integrated assessment of combined cooling heating and power systems under different design and management options for residential buildings in Shanghai Energy Build 51 March 2010 2012 143 152 10.1016/j.enbuild.2012.04.023
74. Giakoumi, A, Markogiannakis, G. Synthesis report on ESCo definitions, approaches, drivers, success factors and hurdles. BioSolESCo project report Available at: http://www.biosolesco.org/download/Bio-Sol-ESCo%20D2.2. %20Synthesis%20report.pdf, 2011.
75. Synthesis report on ESCO definitions, approaches, drivers, success factors and hurdles, 2011, results report BioSolEsco http://www.biosolesco.org/ download/Synthesis%20report-EN.pdf.
76. Publishable results oriented report, 2011, Biosolesco report http://www.biosolesco.org/download/Publishable%20result%20oriented%20report.pdf.
77. Legislative Decree 115, 30-05-08, Attuazione della direttiva 2006/32/CE relativa all'efficienza degli usi finali dell'energia e i servizi energetici e abrogazione della direttiva 93/76/CEE.
78. Sixth yearly report on the Italian energy efficiency subsidy system (in italian) report 01-03-2012 70/2012/I/efr http://www.autorita.energia.it/it/docs/ 12/070-12.htm.
79. Tiravanti G, Pantaleo A, Fanelli A, Candelise C. Investments in energy saving measures in Italy and UK: the impact of national support schemes on the business strategies of an ESCO. ECEEE Conference, 2007; (pp. 1-16). Nice, France.
80. Legislative Decree 28/2011, Attuazione della direttiva 2009/28/CE sulla promozione dell'uso dell'energia da fonti rinnovabili, recante modifica e successiva abrogazione delle direttive 2001/77/CE e 2003/30/CE.
81. Ministry Decree of 6 July 2012 on renewable energy subsidy levels, in agreement with Legislative Decree 28/2011.
82. ST-ESCO web site, accessed June 2012 http://www.cres.gr/st-escos.
83. FIPER web site, accessed November 2012 www.fiper.it.
84. Resolution n 124/E of Italian Tax Agency 06/05/09.
85. Bernetti I, Fagarazzi C., Valutazione della domanda di biocombustibili solidi (legno cippato) nell'area dell'Appennino Pistoiese, ISBN 10: 88-7957-287-3, 2009, www.arsia.toscana.it.
86. AIEL, 2009 Legna e cippato: produzione, requisiti qualitativi e compravendita, www.biomasstradecentres.eu.
87. Pantaleo A, Candelise C, Bertin M. Feasibility study diary firm Latterie Vicentin, report of Biosolesco EIE Project, available at http://www.biosolesco. org/download/Feasibility%20Study%20study%20dairy%20firm%20Latterie%20Vicentive, %20Italy%20%28with%20summary%20in%20English%29.pdf 2010.
88. Progetto ILON@SARDEGNA - RETE REGIONALE PER L'INNOVAZIONE (POR Sardegna 2000-2006 Mis. 3.13), 2006 Studi di fattibilità e azioni pilota in favore delle piccole e medie imprese, available at http://www.diee.unica.it/caseifici/ .
89. ENEA, 2007. Carattertizzazione energetica delle aziende di trasformazione lattiero-casearie del centro sardegna Final report, available at http://spa.casaccia.enea.it/caseario/rapporto%20caseario%20sardo%20finale.pdf.
90. Belcastro F, Di Santo D, Fasano G. 2010 Indici di benchmark di consumo per diverse tipologie di edificio e all'applicabilità di tecnologie innovative nei diversi climi italiani negli edifici ospedalieri, Report RdS/2010/196, http://www.enea.it/it/Ricerca-sviluppo/documenti/ricerca-di- sistema-elettrico/fabbisogni-consumi-energetici/13-fire-1.pdf.
91. A Salem Szklo, J Borghetti Soares, and M. Tiomno Tolmasquim Energy consumption indicators and CHP technical potential in the Brazilian hospital sector Energy Convers Manage 45 13-14 2004 2075 2091
92. G Chicco, and P. Mancarella Trigeneration primary energy saving evaluation for energy planning and policy development Energy Policy 35 12 2007 6132 6144 (Pubitemid 350028935)
93. Eric Bonnema, Daniel Studer, Andrew Parker, Shanti Pless,Paul Torcellini, Large hospital 50% energy savings: technical report NREL/TP-550-47867, 2010.
94. Agenzia Regionale per l'Energia della Liguria, Linee guida per l'efficienza energetica nel sistema ospedaliero ligure, available at http://www.fire-italia.it/eell/ospedali/linee-guida-liguria.pdf.
95. G Pagliarini, C Corradi, and S. Rainieri Hospital CHCP system optimization assisted by TRNSYS building energy simulation tool Appl Therm Eng 44 2012 150 158
96. Tassi E, Begnis F, Mazzocchi L., Indagine sulle potenzialità di teleriscaldamento a livello nazionale, 2005, report CESI GAME/ SVALTER/WP3.
97. J Sjödin, and D. Henning Calculating the marginal costs of a district-heating utility Appl Energy 78 1 2004 1 18 (Pubitemid 38362725)
98. C Fogelholm, A Gebremedhin, S Kim, L Pedersen, T Savola, J Stang, T-Mn Tveit,H. Zinko. (2008). Improved cogeneration and heat utilization in DH networks, IEA report.
99. U Persson, and S. Werner Heat distribution and the future competitiveness of district heating Appl Energy 88 3 2011 568 576
100. Davies G, Wood P. Poyry for DECC, (2009). The potential and costs of district heating networks. Retrieved from http://www.decc.gov.uk.
101. Zinko, H Bohm, B Kristjansson, H Ottosson, U Rama, M KS. District heating distribution in areas with low heat demand density (134), IEA RD Programme on "Dh and Cooling including the integration of CHP, 2008.
102. C Weber, and N Shah Optimisation based design of a district energy system for an eco-town in the UK Energy 36 2011 2
103. Tassi E, Fiore A. Soluzioni per la produzione e distribuzione dell'energia termica in un centro urbano, report of CESI, Italy, 2004. available at http://www.rse-web.it.
104. Deliberation of Italian Energy Authority 9/11, www.autorita.energia.it/ it/docs/11/009-11een.htm.
105. Technical sheets of Italian Energy for quantification of Energy savings, accessed june 2012, Authority http://www.autorita.energia.it/it/ee/schede.htm.
106. The western European gas market outlook, 2010, Business Insights Ltd, http://www.business-insights.com.
107. Il futuro del gas naturale in Italia, Erg Power & gas, 2008, http://www.regione.piemonte.it/innovazione/images/stories/innovazione/dwd/ aspo2008-gas.pdf.15.
108. E Curcio, Il mercato del gas naturale in Italia, 2005, http://www.aiie.it.
109. Data sheets of uniconfort boilers http://www.uniconfort.com
110. Data sheets of turboden plants http://www.turboden.com
111. C. Reidhav, and S. Werner Profitability of sparse district heating Appl Energy 85 2008 9
112. Personal communications from Uniconfort.
113. Personal communications from Ago energia.
114. L'incentivazione delle FER nel settore del riscaldamento-raffreddamento, (2011) REF, http://www.fiper.it/it/biblioteca.html.
115. H Lund, and aN. Andersen Optimal designs of small CHP plants in a market with fluctuating electricity prices Energy Convers Manage 46 6 2005 893 904
116. M Biezma, and J. Cristobal Investment criteria for the selection of cogeneration plants - a state of the art review Appl Therm Eng 26 5-6 2006 583 588
117. Natural gas cost, residential end users in Italy, 03/12, http://www.autorita.energia.it/allegati/com-stampa/12/120330.pdf.
118. Fire, 2010, Ruolo e funzioni del responsabile dell'energia negli ospedali in rapporto al PAN a, http://www.fire-italia.it/convegni/Ospedali-settembre- 2010/Rivoli.pdf.
119. Deliberation ARG/gas 64/09 Approvazione del Testo integrato delle attività di vendita al dettaglio di gas naturale e gas diversi da gas naturale distribuiti a mezzo di reti urbane (TIVG).
120. Legislative Decree 26-10-995, n. 504, Testo unico delle disposizioni legislative concernenti le imposte sulla produzione e sui consumi e relative sanzioni penali e amministrative.
121. Legislative Decree 21-12-1990, n. 398, Istituzione e disciplina dell'addizionale regionale all'imposta erariale di trascrizione di cui alla legge 23 dicembre 1977, n. 952 e successive modificazioni, dell'addizionale regionale all'imposta di consumo sul gas metano e per le utenze esenti, di un'imposta sostitutiva dell'addizionale, e la previsione della facoltà delle regioni a statuto ordinario di istituire un'imposta regionale sulla benzina per autotrazione.
122. W.M Budzianowski Sustainable biogas energy in Poland: prospects and challenges Renewable Sustainable Energy Rev 1 16 2012 342 349