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The EU power sector is under increasing pressure due to rising electricity demand and the need to meet decarbonisation targets. Member states have been active in investing in renewables and building capacity to increase their share of renewables in electricity generation. However, it is important to examine what progress each member state has made in the deployment of renewable energy for electricity generation and what factors influence gross electricity generation from renewable energy. In this study, logarithmic mean Divisia index (LMDI) analysis was used to examine the changes in EU-27 countries' gross electricity generation from renewable energy sources (RES), wind, and solar PV from 2012 to 2021. The results show that the RES deployment per capita effect and the RES share effect were the main positive factors for the total gross electricity generation from RES in the EU. In contrast, the RES capacity productivity effect and the energy intensity effect had negative contributions. Population growth had a positive influence but was less significant than the other factors. The deployment of RES per capita effect was the main factor in the overall growth of gross electricity generation from RES in Northern Europe, Central Western Europe, and Central Eastern Europe, according to comparisons between the regional groups. RES share effect was the main driver in Southern Europe. The decrease in RES capacity productivity was the second most important factor influencing the variation in the amount of energy generated by RES in Northern Europe and Central Western Europe. The results could be used to develop more effective and tailored renewable energy policies that take into account the existing main drivers of RES, wind, and solar energy in each of the EU-27 member states. [ABSTRACT FROM AUTHOR]

A system dynamics modeling approach was used to analyze the impact of economical mechanisms on CO2 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 CO2 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. [ABSTRACT FROM AUTHOR]

The article analyzes district heating system efficiency by using benchmarking system. The 26 biggest Latvian DH companies were taken as case study for analysis. Two main components were distinguished from existing district heating systems tariffs: cost of fuel in tariff and other costs. Non-linear regression model is used for benchmarking analysis. Equation, which describes other costs as dependent variable, whereas fuel part of costs in tariff as independent variable was obtained. Performance of Latvian district heating companies were evaluated by using various efficiency indicators describing systems technical, scale, dynamic and financial parameters. Data envelopment analysis was used for measuring efficiency of these companies by taking into account multiple factors. In order to indicate main parameters that influence heat energy tariff and efficiency of all district heating system, sensitivity analysis by using system dynamic model developed in previous study was carried out. The model finds out the possibility to introduce the 4th generation district heating system in Latvia. Model includes the transition of heat network to the low-temperature regime at 80% share of the renewable energy. Moreover, matrix with district heating system efficiency parameters, which are most vital for optimization, was made. [ABSTRACT FROM AUTHOR]

The article examines the transition from conventional district heating (DH) system to a 4th generation DH (4GDH) system using system dynamics modeling and economic feasibility analysis. Six alternative scenarios are studied. Energy saving measures reduce energy consumption, CO 2 emissions and installed capacity of heating equipment thus facilitating the transition of the DH system towards zero emission system. Reduction of the required installed heating capacity allows implementing a low-temperature regime for heat distribution networks. For four of the analyzed scenarios this regime was achieved without increase of electricity consumption for heat supply. Results show that the implementation of 4GDH depends on the policies applied. The research identifies a balance point between the implementation of energy efficiency measures at the source and at heat consumers’ side. The article shows how the price of a fossil fuel influence the share of heat energy production and the balance point between investment at the source and heat consumers side. [ABSTRACT FROM AUTHOR]

In the article, a possibility to introduce the 4th generation district heating (4GDH) in Latvia is analyzed with the system dynamic modeling. Three policy instruments were included into the system dynamic model: subsidies, instrument for risk reduction and instrument for efficiency increase, and their impact on the system operation was analyzed. Six development scenarios are examined in the article, two of which are supplemented with the transition of heat network to the low-temperature regime at a different share of the renewable energy (60%, 80%, 95%). The heat tariff was used as the main indicator determining the pace and structure of the technology change. In the model the existing natural gas technology was included and three technologies of the renewable energy – biomass combustion equipment, solar collectors with the accumulation and heat pumps. Results of the modeling shows that scenario, at which no policy instruments are used, reduce CO 2 emissions for 58.6% until 2030; but it is possible to achieve a zero emission level, in case political instruments are used. [ABSTRACT FROM AUTHOR]