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District Heating Use Case: Boosting Operational Efficiency

Learn how OTee helps district heating operators modernize their operations, overcome the challenges of legacy systems, and achieve greater efficiency, sustainability, and reliability for the future.

In collaboration with one of Norway’s largest district heating operators, with over a thousand substations, OTee's solution demonstrates efficiency, cost savings, and sustainability at scale, insights that will be explored in this case study.

District heating networks form the backbone of sustainable urban energy systems, providing reliable and efficient heat to residential, commercial, and industrial users. Yet, these systems often face constraints due to legacy automation technologies. Traditional PLCs, long the cornerstone of automation in district heating, impose challenges such as vendor lock-in, high operational costs, inefficient processes, and cybersecurity vulnerabilities.


The demands of Industry 4.0 require smarter, more adaptable, and sustainable solutions. OTee has responded to these needs with its Virtual PLC (vPLC) platform, which leverages cloud-native, vendor-agnostic automation to address these challenges comprehensively.


Challenges in District Heating Automation


District heating systems operate across a multi-level network that spans centralized heat generation plants, thermal storage facilities, distribution pipelines, substations, and end-user buildings. Each level has unique requirements for precise automation and coordination to ensure optimal performance.


Level-Specific Automation


At each level of the network, automation plays a distinct role:

  • Level 1: Centralized Heat Generation
    Controls and manages heat generation processes, integrates additional energy sources, and optimizes overall energy efficiency.

  • Level 2: Storage and Balancing
    Oversees storage operations and regulates input/output to balance heat demand with generation.

  • Level 3: Distribution Network
    Monitors flow rates, controls circulation pumps and maintains consistent pressure across the network.

  • Level 4: Substations
    Regulates heat transfer, monitors customer-specific metrics, and manages localized flow and pressure.

  • Level 5: Building End Stations
    Controls heat delivery to end-users, ensures efficient energy use and monitors individual consumption for billing purposes.


While these levels highlight the complexity and importance of automation in district heating, they also demonstrate where traditional approaches fall short.


Operational Inefficiencies and Fragmented Processes:

  • Vendor-locked PLCs create data silos, making centralized monitoring and fleet management nearly impossible.

  • Distributed assets require manual, on-site PLC updates, increasing labor costs and downtime.

  • Lack of real-time visibility into operations impedes proactive maintenance and decision-making.


High Costs and Complex Maintenance:

  • Upgrading legacy PLCs involves significant hardware replacement, retraining staff, and operational disruptions.

  • Proprietary systems demand extensive resources for maintenance, spare parts, and labor-intensive updates.

  • Downtime during updates or failures directly impacts productivity and service reliability.


Cybersecurity Risks:

  • Traditional VPN-based connections expose critical infrastructure to cyberattacks, including ransomware and unauthorized access.

  • Lack of role-based access control (RBAC) and audit trails leaves systems vulnerable to insider threats.

  • Manual patching processes delay responses to emerging vulnerabilities.


How OTee helps solve these challenges


OTee’s Virtual PLC (vPLC) platform offers a paradigm shift from traditional automation. With a cloud-native architecture and open hardware compatibility, it addresses the core challenges of district heating automation with efficiency, flexibility, and resilience.


Fleet Management Across All District Heating Levels at Scale:

  • Operators can manage thousands of PLCs from the cloud, with real-time updates, centralized control, and unified data access

  • Eliminates manual one-to-one updates, data silos, and vendor-specific inefficiencies.


Vendor-Agnostic and Hardware-Independent:

  • OTee Runtime operates on any open hardware without expensive rework or retraining, ensuring seamless integration with existing devices and lowering hardware costs.

  • Operators can mix and match hardware to suit operational needs, extending the lifespan of current infrastructure.


Zero-Trust Cybersecurity:

  • Built-in RBAC ensures least-privilege access policies, protecting sensitive data and processes.

  • End-to-end encryption, live monitoring, and anomaly detection safeguard against unauthorized access and breaches.


Always Up-to-Date Open Technology:

  • OTee’s SaaS model ensures the latest features, fixes, and security updates without downtime or costly upgrades.

  • Standardization across sites reduces complexity and improves interoperability.


Sustainability and Energy Efficiency:

  • Open architecture minimizes energy consumption, reduces hardware reliance, and optimizes operations to meet sustainability goals.


Cost savings through OTee’s virtual PLC


The cost efficiencies of OTee’s Virtual PLC platform stem from its ability to eliminate the inherent limitations of traditional PLC systems. With a vendor-agnostic architecture, operators can reuse existing hardware, avoiding the expense of proprietary replacements. Maintenance is streamlined through centralized fleet management, which replaces manual, on-site updates with automated processes, significantly reducing labor costs.


The subscription model consolidates essential features such as regular updates, advanced cybersecurity, and fleet management, eliminating the need for additional support contracts or hidden fees. Downtime is minimized through real-time monitoring and proactive updates, reducing production losses and ensuring continuous operations.


In this customer's use case, over a five-year period, the platform reduces total costs by 57%, amounting to savings of over €1.1 million. The actual savings will vary depending on the number of PLCs, the value placed on downtime, labor savings, and hardware reuse; some organizations can reduce costs by over 80%.


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