Cost calculation tool for feasibility of heat networks

Gaining insight into the costs of a heating network has so far been made difficult by incomplete decision information. Engineering and consultancy firm Witteveen+Bos, contractor Heijmans and software specialist The People Group have developed a calculation tool to arrive at fast and reliable cost estimates for heating networks. The output of GeoSmartDesign Heat, software for the parametric design of heating networks, serves as a basis.

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July 08, 2023
4 minutes reading time

Municipalities increasingly see a heating network as one of the promising preferred options for sustainable heat supply. An important part of the feasibility study is insight into the structure of the investment costs of the desired distribution network and the possible sensitivities.

Chain integration

In daily practice, cost estimates are too often based on a combination of outdated assumptions, incorrect margins and excessive or double mark-ups. This is partly due to insufficient transparency and/or insight into the cost structure of the entire installation. This results in unreliable cost estimates, which negatively affects the feasibility of a heating network.

Chain integration is an important condition for achieving realistic cost estimates. Witteveen+Bos, Heijmans and The People Group have put this into practice with the cost calculation tool. The new cost calculation tool works with current and proven data and knowledge from both Witteveen+Bos as an advisor and Heijmans as a contractor. Software specialist The People Group has also ensured that the new cost calculation tool is enriched with the output of GeoSmartDesign Heat.

Transparency in cost structure

The parts list or 'bill of material' of the distribution network is loaded from GeoSmartDesign Heat into the cost calculation tool. This ensures transparency in the cost structure and the exact distribution of costs. This gives municipalities better tools for allocating costs per stakeholder or per department (such as costs for replacing pavements). Because consultant and contractor work and build on the basis of the same design methodology, design and cost estimate, costs can be saved and the design time of a heating network can be accelerated.

Available immediately

In the near future, the cost calculation tool will be further automated or incorporated into GeoSmartDesign Heat, so that multiple heat network scenarios can be analyzed quickly and accurately. Additional cost-determining objects are also added to GeoSmartDesign Heat, so that the output becomes even more accurate. The calculation tool for heating networks is immediately available to everyone who works with GeoSmartDesign Heat.

Viktor de Haan (business developer The People Group):

'Our collaboration has led to an acceleration in determining the costs – and therefore the benefits – of a heating network. Our ambition is to further optimize this together with as many users as possible. With GSD Heat you can draw faster and therefore calculate better!'

Casper Hügel (energy consultant Witteveen+Bos):

'The collaboration with Heijmans and The People Group ensures a bundling of knowledge and insights that leads to better estimates and a clearer view of the various cost items and underlying assumptions. This allows a better assessment to be made regarding the feasibility of a heating network.'

Berend Doedens (senior energy transition advisor Heijmans):

'To make a good cost estimate, implementation knowledge must be obtained in time. Because Heijmans shares knowledge of the implementation of district heating projects, we help to arrive at a more realistic business case. This means fewer projects are stuck due to disappointing costs and we accelerate the energy transition.'

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