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The use of forest fuel is increasing at heating plants in Sweden. Heating plants provide energy in the form of hot water for heating houses and apartments in local municipalities. Forest fuel are products obtained from harvesting in forests that cannot be used for further processing at sawmills and pulp and paper mills. Examples of such products are tree branches, tree tops and low quality logs. The optimization of the supply chain for round-wood (logs to sawmills, pulp and paper mills) and for forest fuel is similar but involves two main differences. First, forest fuel has to be converted into chips before delivery to the customer, and second, the demand for forest fuel varies over the year due to the temperature. To balance the chipping and transportation capacities over time, it is important to manage inventory levels at terminals. The optimization model developed provides decision support for questions regarding the choice of technology for chipping, where to perform the chipping operations, and the allocation of different assortments to heating plants. The system has been tested on a large case study from a Swedish forest energy company. The results show large savings and that the system is very useful for both planning and business development. [ABSTRACT FROM AUTHOR]

Abstract: The development of the willow cultivation for bioenergy in the municipality of Enköping was analysed, with special attention to the changes in the capacity and use of wood fuels of the municipality’s combined power and heat plant, during the period 1986–2005. The evolution is compared with the municipality of Örebro, in Central Sweden, a pioneer in the use of willow plantations. The study was performed including the geographical location of all the plantations and owners using a GIS platform, and a methodology based on n-sigmoidal curves was proposed to study the adoption curves of willow before and after the changes in the district heating plant. The results show significant enlargements of the area planted with willow observed after the enlargement of the plant in 1994; most of these new plantations being located within 30 km from the plant. The method applied seems to be suited to explain the effects in adoption of the power plant. Around 28% of the growers seem to be attributed to the effects of the plant. The results of this study provide empirical evidence of the effect of the district heating systems on the development and promotion of willow plantations. The methodology provided can be valuable in understanding the success or failure of the energy programmes, from the farmer’s perspective, and can aid policy makers in achieving their goals. [Copyright &y& Elsevier]

The geographical variation in Swedish woodfuel market characteristics for the district heating sector has been studied using Geographical Information Systems (GIS) and cross-sectional Tobit analysis. The results indicate that local availability and competition for woodfuels influence the woodfuel consumption at inland heating plants. The factors affecting the decision to use woodfuel at heating plants close to seaports, however, were not captured by the model, suggesting that coastal location reduces dependency on the local woodfuel market. The effects of changes in local woodfuel availability on woodfuel use by an inland heating plant are presented and discussed. [ABSTRACT FROM AUTHOR]

Background: The Swedish district heating sector is successfully transitioning to a low-carbon energy system. The industry has expanded since the 1950s and currently meets more than half the Swedish heat demand. The heat market was deregulated in 1996, and thereafter, companies have been exposed to an increasing number of challenges related to technology, institutional factors and market. Since municipal ownership dominates, municipal companies must manage these challenges to ensure future competitiveness. However, theory suggests that business change is difficult when the current model is still working. To date, Swedish district heating companies have revisited their price models and customer perceptions. There is limited knowledge on how the business challenges are managed and on the management strategy’s impact on the business. In this paper, new knowledge is generated regarding how the customer and resource-oriented sides of the municipally owned district heating business in Sweden are changing.Methods: A case study approach was adopted. Data were collected by interviews and by review of the national research programme on district heating (Fjärrsyn). The programme served as a proxy for frontline research on Swedish district heating. The data were analyzed through the business model canvas framework.Results: Changes to meet external pressures are identified on the customer side of the business model, but changes are also spreading to other parts of it. However, the key resource component (distribution networks and production unit) and its logic of economics of scale are unchanged and dominate. The logic is not compatible with shrinking heat demand; nevertheless, it is preferred.Conclusions: It is concluded that external challenges have resulted in changes in the customer side of the business model. However, the largest challenge is the transformation of key resources. Accounting for external challenges extends the life of the current business model, but it is not increasing competitiveness. The prolonged life creates a window of opportunity for the companies to begin the needed transformation of their key resources. If the transformation is successful, district heating will have a role in the future energy system. If the transformation is not undertaken, the future is less certain. [ABSTRACT FROM AUTHOR]