District Heating Systems Performance Analyses. Heat Energy Tariff

The paper addresses an important element of the European energy sector: the evaluation of district heating (DH) system operations from the standpoint of increasing energy efficiency and increasing the use of renewable energy resources. This has been done by developing a new methodology for the evaluation of the heat tariff. The paper presents an algorithm of this methodology, which includes not only a data base and calculation equation systems, but also an integrated multi-criteria analysis module using MADM/MCDM (Multi-Attribute Decision Making / Multi-Criteria Decision Making) based on TOPSIS (Technique for Order Performance by Similarity to Ideal Solution). The results of the multi-criteria analysis are used to set the tariff benchmarks. The evaluation methodology has been tested for Latvian heat tariffs, and the obtained results show that only half of heating companies reach a benchmark value equal to 0.5 for the efficiency closeness to the ideal solution indicator. This means that the proposed evaluation methodology would not only allow companies to determine how they perform with regard to the proposed benchmark, but also to identify their need to restructure so that they may reach the level of a low-carbon business.