Accelerating transition toward district heating-system decarbonization by policy co-design with key investors: opportunities and challenges

AbstractDistrict heating in European, Chinese, and Russian cities is still mainly produced with fossil fuels. Energy-system reconfiguration is essential to achieve full decarbonization, which calls for a greater understanding of how to engage key investors in market transformation and how to formula...

Full description

Bibliographic Details
Main Authors: Karoliina Auvinen, Teemu Meriläinen, Laura Saikku, Sampsa Hyysalo, Jouni K. Juntunen
Format: Article
Language:English
Published: Taylor & Francis Group 2023-12-01
Series:Sustainability: Science, Practice, & Policy
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/15487733.2023.2256622
_version_ 1827591734336421888
author Karoliina Auvinen
Teemu Meriläinen
Laura Saikku
Sampsa Hyysalo
Jouni K. Juntunen
author_facet Karoliina Auvinen
Teemu Meriläinen
Laura Saikku
Sampsa Hyysalo
Jouni K. Juntunen
author_sort Karoliina Auvinen
collection DOAJ
description AbstractDistrict heating in European, Chinese, and Russian cities is still mainly produced with fossil fuels. Energy-system reconfiguration is essential to achieve full decarbonization, which calls for a greater understanding of how to engage key investors in market transformation and how to formulate effective policy mixes. This article reports on how decarbonization could be accelerated in district-heating systems in Finland with stakeholder orientation especially on key investors consisting of companies focused on district-heating, data-center management, real estate development, and sewage operations. The technological attention is on the excess and ambient heat systems. Drawing from surveys, interviews, and workshops we identified investment barriers and collected policy and strategy proposals to overcome them. The results demonstrate that diversifying and strengthening the policy and strategy mix is needed to overcome barriers related to profitability, political uncertainties, and underdeveloped cooperation and profit-sharing models. Policy co-design with key investors holds potential to improve the effectiveness and acceptability of policies, but with certain limitations as regime actors tend to oppose the types of destabilization needed to achieve full decarbonization of energy systems. Thus, effective policy co-design processes need further development as collaboration is a success factor to achieve climate change-mitigation targets, but simultaneously tensions and conflicts cannot be avoided when accelerating energy-system transformation.
first_indexed 2024-03-09T01:35:55Z
format Article
id doaj.art-1dad99c62cdf4f40be0016e3547261be
institution Directory Open Access Journal
issn 1548-7733
language English
last_indexed 2024-03-09T01:35:55Z
publishDate 2023-12-01
publisher Taylor & Francis Group
record_format Article
series Sustainability: Science, Practice, & Policy
spelling doaj.art-1dad99c62cdf4f40be0016e3547261be2023-12-09T05:55:10ZengTaylor & Francis GroupSustainability: Science, Practice, & Policy1548-77332023-12-0119110.1080/15487733.2023.2256622Accelerating transition toward district heating-system decarbonization by policy co-design with key investors: opportunities and challengesKaroliina Auvinen0Teemu Meriläinen1Laura Saikku2Sampsa Hyysalo3Jouni K. Juntunen4Finnish Environment Institute SYKE, Helsinki, FinlandFinnish Environment Institute SYKE, Helsinki, FinlandFinnish Environment Institute SYKE, Helsinki, FinlandDesign and Architecture, Department of Design, Aalto University School of Arts, Aalto, FinlandSchool of Technology and Innovations, University of Vaasa, Vaasa, FinlandAbstractDistrict heating in European, Chinese, and Russian cities is still mainly produced with fossil fuels. Energy-system reconfiguration is essential to achieve full decarbonization, which calls for a greater understanding of how to engage key investors in market transformation and how to formulate effective policy mixes. This article reports on how decarbonization could be accelerated in district-heating systems in Finland with stakeholder orientation especially on key investors consisting of companies focused on district-heating, data-center management, real estate development, and sewage operations. The technological attention is on the excess and ambient heat systems. Drawing from surveys, interviews, and workshops we identified investment barriers and collected policy and strategy proposals to overcome them. The results demonstrate that diversifying and strengthening the policy and strategy mix is needed to overcome barriers related to profitability, political uncertainties, and underdeveloped cooperation and profit-sharing models. Policy co-design with key investors holds potential to improve the effectiveness and acceptability of policies, but with certain limitations as regime actors tend to oppose the types of destabilization needed to achieve full decarbonization of energy systems. Thus, effective policy co-design processes need further development as collaboration is a success factor to achieve climate change-mitigation targets, but simultaneously tensions and conflicts cannot be avoided when accelerating energy-system transformation.https://www.tandfonline.com/doi/10.1080/15487733.2023.2256622District heatingenergy transitiondecarbonizationheat pumpspolicy mixco-design
spellingShingle Karoliina Auvinen
Teemu Meriläinen
Laura Saikku
Sampsa Hyysalo
Jouni K. Juntunen
Accelerating transition toward district heating-system decarbonization by policy co-design with key investors: opportunities and challenges
Sustainability: Science, Practice, & Policy
District heating
energy transition
decarbonization
heat pumps
policy mix
co-design
title Accelerating transition toward district heating-system decarbonization by policy co-design with key investors: opportunities and challenges
title_full Accelerating transition toward district heating-system decarbonization by policy co-design with key investors: opportunities and challenges
title_fullStr Accelerating transition toward district heating-system decarbonization by policy co-design with key investors: opportunities and challenges
title_full_unstemmed Accelerating transition toward district heating-system decarbonization by policy co-design with key investors: opportunities and challenges
title_short Accelerating transition toward district heating-system decarbonization by policy co-design with key investors: opportunities and challenges
title_sort accelerating transition toward district heating system decarbonization by policy co design with key investors opportunities and challenges
topic District heating
energy transition
decarbonization
heat pumps
policy mix
co-design
url https://www.tandfonline.com/doi/10.1080/15487733.2023.2256622
work_keys_str_mv AT karoliinaauvinen acceleratingtransitiontowarddistrictheatingsystemdecarbonizationbypolicycodesignwithkeyinvestorsopportunitiesandchallenges
AT teemumerilainen acceleratingtransitiontowarddistrictheatingsystemdecarbonizationbypolicycodesignwithkeyinvestorsopportunitiesandchallenges
AT laurasaikku acceleratingtransitiontowarddistrictheatingsystemdecarbonizationbypolicycodesignwithkeyinvestorsopportunitiesandchallenges
AT sampsahyysalo acceleratingtransitiontowarddistrictheatingsystemdecarbonizationbypolicycodesignwithkeyinvestorsopportunitiesandchallenges
AT jounikjuntunen acceleratingtransitiontowarddistrictheatingsystemdecarbonizationbypolicycodesignwithkeyinvestorsopportunitiesandchallenges