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An overview of the electrification of residential and commercial heating and cooling and prospects for decarbonisation

Mathilde Fajardy and David Reiner

Cambridge Working Papers in Economics from Faculty of Economics, University of Cambridge

Abstract: Heating and cooling are responsible for over 50% of the world’s final energy consumption, and over 40% of global CO2 emissions. With an increasingly decarbonised electricity grid, the electrification of heating offers one potential alternative to the incumbent, heavily fossil-fuel dominated heating system. However, the high penetration of renewables, the high seasonality and hourly variability of heat demand, and an increasing domestic demand for energy services, including cooling, pose significant balancing challenges for both hourly system operation and the long-term investment decision planning of electricity systems. The combination of both demand-response measures and the integration of flexible systems will be required to deliver low carbon heating and cooling, while integrating an increasing share of renewable electricity, and managing peak load. We provide a global overview of the technical, economic and policy challenges and opportunities to decarbonise heating demand through electrification, in the context of rising demand for cooling services.

Keywords: Heating; cooling; electrification; decarbonisation; peak load management; demand response (search for similar items in EconPapers)
JEL-codes: L95 O13 Q41 Q42 (search for similar items in EconPapers)
Date: 2020-12-09
New Economics Papers: this item is included in nep-ene, nep-env, nep-ppm and nep-reg
Note: mf705, dmr40
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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