District heating: the economics?

District heating supplies residential or commercial consumers with centrally generated heat, waste heat from power generation (combined heat and power) or from other industrial processes. Capturing waste heat lowers CO2-intensity.

This data-file models generalized economics, based on the capital costs to pipe heat to each household, gas prices, heat consumption and efficiency factors. You can flex these variables in the model.

The economics are highly variable, with prior project costs varying by a factor of 10x, and most sensitive to heat consumption per household. Our base case estimate is for a 10% IRR at 10c/kWh retail heating price.

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