District heating systems can distribute the heat
for hot water and space heating from a wood fuel boiler or a combined heat and power (CHP) plant
for use in domestic, public sector and commercial units. This
allows capital costs to be spread over a number of properties.
District heating systems can range in size from two properties
heated by one small boiler, hundreds of properties heated by one
large central heating plant, to coverage of entire cities.
District heating systems are more suitable for areas of high
population density since the investment per household will be
lower.
Since they allow the high capital cost of this equipment to be
spread across a number of properties, district heating systems can
provide greater cost effectiveness than localized boilers.
Individual buildings served by the scheme will benefit from reduced
energy costs and reduced costs in terms of individual buildings'
investment in heating equipment
A district heating system comprises a network of insulated pipes
which deliver heat in the form of hot water or steam; there are
feed and return lines. Usually the pipes are installed underground
but there are also systems with over ground pipes. Within the
system heat storages may be installed to even out peak load
demands.
Although systems are usually owned by one landlord, it is
becoming increasingly common for the system and heat to be provided
by an energy services company
(ESCo).
District heating is a long-term commitment requiring high
initial capital input.