OPTIMISING DH RETURN ON
INVESTMENTS LEVERAGING
ON ADVANCED DECISION
SUPPORT SYSTEMS
Dublin, 12th April 2019
© Optit, 2019
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OPTIT AT A GLANCE
Founded in 2007
Spinoff of the
Operations Research
(OR) team of the
University of Bologna
We develop solutions
and services based on
advanced analytics,
machine learning &
mathematical
optimisation
Young and highly skilled
team: everyone holds a
STEM Master Degree
or PhD
We are
Data scientists,
Business consultants,
Operations Research
specialists,
SW application dev.
professionals
We work for medium
and large enterprises
in several industries:
Energy, Waste,
Logistics, Retail, etc.
We participate in the
scientific community
and active in fostering
“Operations Research
in Practice”
2 main Offices
Consultancy services
and Commercial HQ in
Bologna
SW Factory in Cesena
30+
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KNOW HOW TRANSFER
OUR APPROACH
Starting from current processes and business
objectives, our consultants help you qualify the business issues to be
addressed
We are strongly focused on (even big) data, as our
scientists «crunch» them to extract insights, answer
questions (and – mostly –make new, better ones)
We combine tools and techniques of mining,
machine & deep learning, optimisation in order to
identify a full «resolution strategy» for the issue
We can develop and deploy high level SW, from «black-box» model to enterprise
application, with guarantee of high level standards and
high degree of flexibility
BUSINESS ISSUEDATA
MANAGEMENT
MODELLING,
ANALYSIS &
OPTIMISATION
SOLUTION
Optimisation
Mining
Machine learning Analytics
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OUR VALUE PROPOSITION FOR THE
DISTRICT ENERGY INDUSTRY
GENERATION DISTRIBUTION DEMAND
Investment
Optimisation
Operations
Optimisation
DSS for Energy
production
optimisation
DSS for network
development
optimization
Advanced analytics
methodologies
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DH NETWORK DEVELOPMENT OPTIMISATION
How to plan District Heating (& Cooling)
Network Development roadmaps that
maximise the Return on Invested Capital
(i.e. Net Present Value), amongst
countless possible options?
Geographic dimension of the
business issue (go beyond Excel)
CHALLENGES FOR DECISION MAKING
€
Several possible potential
scenarios (what-if)
THE BUSINESS OBJECTIVE
Economic value assignments on
costs and revenues sides
Thermal-hydraulic feasibility
analysis of proposed solutions
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OPTIT’S SOLUTION’S KEY FEATURES
Tariffs &
Capex/Opex
€Financial
parameters
Import + Puntual
editing /drawing
Technical
constraints
Existing & potential
pipings & usersExisting &
potential plants
Advanced
Scenario Mgmt
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DH DEVELOPMENT OPTIMIZATION
Expansion of
existing networksDevelopment of new
DHC networks
Saturation of existing
networks
Economic KPIs of each
scenario
Optimal strategy for
new customer
connections
Strategic evaluation of
recontractualization
of existing customers
after demand reduction
Network extension to
optimise NPV / ROI
Optimal dimensioning
of the potential piping to
respect thermal-
hydraulic constraints
Dimensioning of new
connection piping
Technical analysis of
the new network set-up
Maximization of heat
production capacity for
further development
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DH SCENARIO ANALYSIS SIMULATION
Evaluation of Integration of new
sources
Thermal-hydraulic network physical
model (pressure, velocity, heat
balances)
Investment Analysis Technical Analysis
Analyses of fault & maintenance
Resizing of existing piping to be
revamped
Validation and refinement of pre-set
network expansion scenarios
Impact assessment of new
economic frameworks
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FROM ANALYSIS TO CONSTRUCTION SITE
Via Martinetti - Milan
The tool allows for a smooth transition of the
feasibility and commercial analysis from
Marketing & Sales to Engineering department
DECISION DRIVERS INTEGRATION
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OUR VALUE PROPOSITION FOR THE
DISTRICT ENERGY INDUSTRY
GENERATION DISTRIBUTION DEMAND
Investment
Optimisation
Operations
Optimisation
DSS for Energy
production
optimisation
DSS for network
development
optimization
Advanced analytics
methodologies
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ENERGY PRODUCTION OPTIMIZATION
CHALLENGES FOR DECISION MAKING
THE BUSINESS OBJECTIVE
How to maximise Operating Margins
of complex Energy CHCP Production
Systems in view of variation of
demand, prices and operating
conditions?
Energy demand forecasting
Fine granularity (60’-15’- …) €€
Complex plant configuration
Multiple cost/revenue factors
Technical and operative constraints
Operating and managing reports
Electricity demand
Heat demand
Chill demand
Endothermal
engine
Boiler
Heat storage
Absorption chillerHeat pump
External source
Compression Chiller
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LONG LASTING AND EVER EVOLVING EXPERTIZE IN
AN INCREASINGLY COMPLEX INDUSTRY
2010 2012 2014 2016 2018 2020
2011 2013 2015 2017 2019
Manual Mgmt
Optimised Mgmt
Automatised Mgmt€
Trading integration
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A FULLY ENGINEERED SOLUTION
INPUT DATA ACQUISITION
KEY PROCESS MODULES
OPTIMAL PLANNING & MONITORING
Field data integration Meteo data
€Prices & costsConfiguration
FORECASTING LONG TERM SHORT TERMINFRA-DAY &
TRADING
Demand profiles Market management Unit committmentBudget & Constraints
€€
€ € €
1y 1d
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OPTI-EPM (ENERGY PRODUCTION MANAGEMENT)
Browser Application
Multi-user !
Multi-plant
Alerting & MonitoringOptiEPM
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Block-based plant design & configuration:
FLEXIBLE PLANT CONFIGURATION
Energy flows defined by topological constraints
Multiple energy demand management (e.g. different Temp)
Single block configuration
Multi-plant interactions
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DEMAND PROFILE FORECASTING
Historical data
Operating data
Meteo data
INPUT DATA DEMAND PROFILE
Electric
Thermal
ChillSpecific drivers
MULTI-LINEAR
REGRESSION
INERTIAL
MODELS
NEURAL
NETWORKS
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LONG TERM OPTIMISATION (BUDGET) & WHAT-IF
WHAT-IF
Long term Planning:
Multiple budget scenarios
Optimal assignment of annual constraints targets
Detailed operating plans for each plant asset
Alternative scenario simulations:
1. Production assets redesign
2. Sensitivity analysis on demand and prices
3. Investment analysis
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SHORT TERM OPTIMIZATION
Short term planning:
Plant assets operating plans
Intra-day optimization
Small time-step granularity (60” or 15”)
Operating margin
maximization
AUTOMATED PROCESS
€
Field data
Meteo data
Elec. prices
Daily schedule
PLC READY
Remote Control
WEB API
WEB API
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EXAMPLE OF AN OPTIMAL SOLUTION
Absorbtion chillers
CHPs
Electrical Chillers
Boilers
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FLEXIBLE & SCALABLE SUPPORT OPPORTUNITIES
SOFTWARE
(AS A SERVICE)CONSULTING
• Plant design & fuel mix impact
analysis based on optimised
operations (feasibility analysis)
• Day-by-day Plant Management
optimisation in production
environment
• Network development (strategic)
optimization analysis
• Simulation of scenarios to support
or validate feasibility analysis
• Application of advanced
analytics techniques to available
user data
• Development of District Energy
advanced analytics customised
tools (perspective)
• Network development (tactical /
commercial) optimization analysis
• Operations optimisation & simulation
(perspective)
Initiate the DH upgrading
process for 8 systems up
to the investment stage
(Generation, Distribution,
Use)
Produce Best Practices
and Tools Handbooks
Develop regional / national
action plans for DHN
retrofitting
Replicate the proposed
solutions across Europe
This project has received funding from the European Union’s Horizon 2020 research and innovation programme
under grant agreement No 785014. The sole responsibility for the content of this report lies with the authors. It does
not necessarily reflect the opinion of the European Union nor of the Executive Agency for Small and Medium-sized
Enterprises (EASME). Neither the EASME nor the European Commission are responsible for any use that may be
made of the information contained therein.
Improving existing DH
networks in Europe:
H2020 PROJECT – GOOD SOURCE
FOR GOOD PRACTICES AND TOOLS
Optit srlLegal Office: Viale Amendola, 56/d 40026 Imola (BO)
Office in Cesena: Via Ravennate 959
47521 Cesena (FC) Tel: 0547 385703 fax 0547 072802
Office in Bologna: Via Mazzini 82
40138 Bologna (BO) Tel: 051 4381574 Fax: 0514381575
P.I. 02756991200 - www.optit.net
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