Cost-optimization model to design and operate hybrid heating systems – Case study of district heating system with decentralized heat pumps in Finland

Aki Pesola

Energy, 2023, vol. 281, issue C

Abstract: This paper introduces a novel optimization approach to design and operate hybrid heating system, which integrates existing centralized district heating assets and decentralized heat pumps. Hybrid heating system enables sector coupling, where electrified heating assets can provide ancillary services for the power market. A modelling tool to study the impact on total heat delivery costs of adding heat pumps into existing district heating based heating system was developed. The case study modelling results show that decentralized assets can support a primary side of district heating network and optimal use of heating assets decreases average operating expenditure by 24%. In order to capture the full value of hybrid heating system, one needs to be able to utilize heat pumps to provide ancillary services in power market and receive compensation for feeding heat pump heat into the district heating network. The modelling results are sensitive to various parameters. Hence, a thorough sensitivity analysis is presented for the results.

Keywords: District heating; Heat pump; Hybrid energy system modelling; Electrification; Cost optimization (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:281:y:2023:i:c:s0360544223016353

DOI: 10.1016/j.energy.2023.128241

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