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District Energy


The District Energy Business is an environment-friendly,
high-efficiency business
that involves producing
and selling both heat and electricity from concentrated
energy production facilities (co-generation plants, incinerators, etc.).

Business Concept

Business Classification
Business Classification
District Cooling and Heating Supply of electricity or heat for heating, hot water, or cooling purposes to houses, shopping complexes, and other buildings in a certain area
Industrial Complexes Supply of industrial electricity or heat to companies in industrial complexes
Concept Map

District Energy facilities use fuels such as LNG and bituminous coal to generate heat and electricity. The heat produced is directly supplied to apartments, buildings, etc. for heating purposes or industrial purposes for businesses.
The electricity produced is sold to Korea Power Exchange. Because the District Energy business produces both heat and energy, it has the characteristics of both the city gas distribution business and the Power Business business.

1.Natural gas bituminous coal, 2.Energy production facility. CHP(Combine Heat and Power)  steam boiler, hot-water boiler heat exchanger, heat storage tank, pump, incineration plant, Bio-mass., 3-1.Electricity(wholesale), 4.Korea Power Exchange, 3-2.Heat(retail), 4.Apartment/building, Factories. Electricity and Heat production/ Supply/ User Equipment

Concept of CHP-combined Heat & Power


In a CHP-combined Heat & Power System, electricity is first produced through gas turbines after combustion of the fuel input. Then waste heat is recovered using the heat recovery steam generator (HRSG) and sent to the steam turbine, where it uses the recovered waste heat (steam) to create secondary electricity and heat. Similarly, while ordinary Power Business systems only produce electricity, CHP-combined heat & power systems recover waste heat and reuse it to produce electricity and heat, therefore making it an environment-friendly and highly efficient system.

  • 1.GT(Gas Turbine): Generation through gas expansion, 2.HRSG(Heat Recovery Steam Generator): Production of steam through recovery of waste heat, 3. ST(Steam Turbine): Generation through steam expansion
  • Ordinary generation: Energy utilization efficiency 50%, Fuel energy 100%, Electricity 50%%, Loss 50%
  • Combined-cycle power plant (regional heating): Energy utilization efficiency 805, Fuel energy 100%, Electricity 46%, Lose 20%, Heat 34%.
  • 1.fuel, 2-1.Waste heat, 3.HRSG (Waste heat recovery steam generator), 4-1.Steam turbine, 4-2.Condenser, 5-1.Regional heating heat exchanger→Heat energy(Cooling and heating Hot water), Generator→Electric power(Power, Electric heat, Lighting)

Introduction Effect

The District energy business produces heat and electricity simultaneously, thus contributing to heightening Korea’s national energy utilization efficiency. Furthermore, as it is operated with minimum emission of air pollutants and carbon dioxide, it is an environment-friendly and high-efficiency business.

In addition, with more economical fees compared to other fuels and as it available 24 hours a day, it is safe and convenient and contributes to stabilizing electricity supply as a dispersed form of power supply in densely populated areas.

  • Energy reduction : District heating 25%, Industrial complex 31%
  • Reduction of air pollutant emissions : District heating 27%, Industrial complex 12%
  • Reduction of CO₂ emissions : District heating 42%, ndustrial complex 27%
  • User convenience (Low fees  l  Safe  l  24-hour heating/pleasant/convenient) : Annual heating costs District energy 91, LNG Individual heating 100
  • Contributes to stabilizing electricity supply as a dispersed form of power supply
  • Power transmission loss, contributes to reduced investment in power transmission equipment

· Source : District Energy Service Handbook (Korea Energy Management Corporation)