The marginal-cost pricing for a competitive wholesale district heating market: A case study in the Netherlands

摘要: Abstract District heating represents a viable way to reduce carbon dioxide emissions in the built environment. This paper aims assess extent which market revenues of multiple heat production technologies can cover their fixed costs competitive wholesale district market. Marginal-cost pricing is applied case study Netherlands. A linear programming model incorporating supply and demand developed obtain hourly dispatch prices. It concluded that low generation tend have short-run marginal costs. All examined producers an under-recovery range between 60% 90% except waste incineration combined power plant. has overall return on investment 44% 12% within reference pump scenario respectively. Although marginal-cost may ensure cost-efficient dispatch, are far from enough recoup for majority producer, let alone network Significant additional remuneration required sustain sufficient new capacity long run.