ORIGINAL PAPER
Comparative analysis of district heating markets: examining recent prices, regulatory frameworks, and pricing control mechanisms in Poland and selected neighbouring countries
 
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1
Mineral and Energy Economy Research Institute of the Polish Academy of Sciences, Poland
 
2
Veolia Energia Polska SA, Poland
 
These authors had equal contribution to this work
 
 
Submission date: 2023-09-25
 
 
Final revision date: 2023-11-16
 
 
Acceptance date: 2023-11-16
 
 
Publication date: 2024-03-27
 
 
Corresponding author
Aleksandra Komorowska   

Mineral and Energy Economy Research Institute of the Polish Academy of Sciences, Wybickiego 7A, 31-261, Kraków, Poland
 
 
Polityka Energetyczna – Energy Policy Journal 2024;27(1):95-118
 
KEYWORDS
TOPICS
ABSTRACT
Recent dynamic changes in global fossil fuels markets and the European carbon dioxide emission allowances system have significantly impacted the energy sectors. These fluctuations also influence district heating (DH) markets where coal and natural gas remain dominant energy vectors in numerous European countries. District heating markets are distinct from other commodity markets due to their local nature and distribution requirements. Consequently, they can operate under various market models and have different price design policies depending on the country and region. With these considerations, this study aims to review and analyse the current market models and regulations of price formulation in the context of final prices in selected district heating markets. The primary objective is to conduct an in-depth analysis of the key district heating markets in Poland and compare the outcomes with the markets of neighbouring countries, including the Czech Republic, Slovakia, Lithuania, Latvia, Estonia, and Germany. Poland is taken as an example due to its high dependence on fossil fuels and its vulnerability to current global price fluctuations. The results indicate that Poland has one of the most regulated district heating markets, and these regulations can impact the profitability of district heating companies with high prices of fuel and carbon certificates observed in global markets. To create incentives for potential investors and incumbent companies to develop more sustainable and low-emission district heating markets in Poland – where energy transition processes are still underway – it is recommended to increase the frequency of formulation and approval of tariffs.
ACKNOWLEDGEMENTS
This work was carried out as part of the statutory activity of the Mineral and Energy Economy Research Institute of the Polish Academy of Sciences.
METADATA IN OTHER LANGUAGES:
Polish
Analiza porównawcza rynków ciepła systemowego: badanie cen, ram regulacyjnych oraz mechanizów kontroli cen w Polsce i wybranych krajach sąsiadujących
ciepło sieciowe, ciepło, taryfy ciepłownicze, ex-ante, ex-post, rynek
Obserwowane w ostatnim czasie dynamiczne zmiany na globalnych rynkach paliw kopalnych oraz uprawnień do emisji dwutlenku węgla mają znaczący wpływ na sektory energetyczne. Fluktuacje te wpływają także na rynki ciepła systemowego, gdzie węgiel i gaz ziemny nadal pozostają dominującymi nośnikami energii pierwotnej w wielu krajach europejskich. Rynki ciepła systemowego różnią się od rynków innych produktów ze względu na ich lokalny charakter i wymagania związane z transportem i dystrybucją. W związku z tym, w zależności od kraju, mogą one funkcjonować w różnych modelach rynkowych oraz mieć odmienne polityki kształtowania cen. W związku z powyższym, niniejszy artykuł ma na celu przegląd i analizę obecnych modeli rynkowych oraz regulacji kształtowania cen w kontekście cen na wybranych rynkach ciepła systemowego. Głównym celem jest przeprowadzenie dogłębnej analizy największych rynków w Polsce i porównanie wyników z sąsiadującymi państwami, tj. z Czechami, Słowacją, Litwą, Łotwą, Estonią i Niemcami. Polska została wybrana jako przykład ze względu na znaczną zależność od paliw kopalnych i podatność na obecne fluktuacje cen na rynkach międzynarodowych. Wyniki przeprowadzonej analizy wskazują, że Polska ma jeden z najbardziej uregulowanych rynków ciepła sieciowego, a regulacje te mogą wpływać na rentowność firm ciepłowniczych. W celu wypracowania zachęt dla potencjalnych inwestorów i obecnych przedsiębiorstw ciepłowniczych do rozwijania zrównoważonych i niskoemisyjnych systemów ciepłowniczych, rekomendowane jest rozważenie możliwości zwiększanie częstotliwości formułowania i zatwierdzania taryf ciepłowniczych.
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