New open access article on Model-Based Contract Design for Low Energy Waste Heat Contracts: The Route to Pricing

We are pleased to inform you that another article in the context of ReUseHeat has been published in Energies and is available online: “Model-Based Contract Design for Low Energy Waste Heat Contracts: The Route to Pricing”.

 

This paper has two main focuses. Firstly, the issue of efficiency in waste heat recovery is addressed with a focus on Technical, Economic, Social, and Environmental (TESE) efficiencies, which we consider should be given equal consideration. Secondly, we address the question of contractual efficiency and argue that contracts should be underpinned by mathematical modelling. We then focus on the contractual relationship between the owner of the waste heat and the district heating operator and consider the question of waste heat pricing. We suggest a profit sharing approach in which the price per unit of waste heat is allowed to vary according to important aspects such as demand and the electricity price. A demonstration of this approach is presented using a simple model of a waste heat recovery system that extracts heat from a data centre in Brunswick, Germany.

 

Read the article here