The Supply of Heat to Consumers Under Market Conditions: Current State and Developmental Trends

ABSTRACT

The article discusses several models and methods for managing the supply of heat to consumers inside a market economy. The main organizational forms of heating systems are described via the models of a “unified heat supply organization” and a “single buyer,” which can be implemented in the population centers of the Russian Federation. We offer an analysis of various types of competition in the thermal energy market and describe the effects that can be achieved when they are implemented. Based on the example of Russia’s large district heating systems, we show the negative consequences resulting from the introduction of the “alternative boiler plant” method, which is a new target model for the Russian thermal energy market.

KEYWORDS:

• alternative boiler plant method
• competition
• economic relations
• district heating
• heat supply
• natural monopoly
• single buyer
• unified heat supply organization

Disclosure Statement

No potential conflict of interest was reported by the authors.

Notes

^1. Federal’nyi zakon ot July 27, 2010 No. 190-FZ “O teplosnabzhenii.”

^2. Federal’nyi zakon ot July 29, 2017 No. 279-FZ “O vnesenii izmenenii v federal’nyi zakon ‘O teplosnabzhenii’ i otdel’nye zakonodatel’nye akty RF po voprosam sovershenstvovaniia sistemy otnoshenii v sfere teplosnabzheniia” (available at http://www.consultant.ru/document/cons_doc_LAW_221237/3d0cac60971a511280cbba229d9b6329c07 731f7; accessed on January 14, 2019).

^3. The “alternative boiler plant” is the name of a new method for calculating heat prices in the thermal energy market. It is used to evaluate price relations between heat market participants. It does not refer to the building of physical boiler plants. In the literature, the method is also referred to as the “alternative boiler house.”—Trans.

Additional information

Notes on contributors

V.A. Stennikov

V.A. Stennikov, corresponding member of Russian Academy of Sciences and doctor of technical sciences, is the Director of the Melentiev Energy Systems Institute, Siberian Branch of the Russian Academy of Sciences, Irkutsk. E-mail: [email protected].

A.V. Penkovskii

A.V. Penkovskii, candidate of technical sciences, is affiliated with the Melentiev Energy Systems Institute, Siberian Branch of the Russian Academy of Sciences, Irkutsk. E-mail: [email protected]