Economic assessment of alternative heat decarbonisation strategies through coordinated operation with electricity system – UK case study

Xi Zhang, Goran Strbac, Fei Teng and Predrag Djapic

Applied Energy, 2018, vol. 222, issue C, 79-91

Abstract: Electric heat pumps (HPs), hybrid heating technology and district heating networks (DHN) are the main low-carbon heating technologies that can deliver the ambitious carbon reduction target in the UK. The optimal design of the heating system on a national scale to maximize the economic benefits regarding both investment cost and operation cost while satisfying the carbon target remains an open question. This paper aims to compare the economic advantages as well as the associated impacts on the electricity system under the full deployments of ASHP (air source HP), hybrid HP-Bs (ASHP and gas boilers) and DHNs. To do so, a novel whole-system approach is applied with the explicit consideration of the coordinated operation between heat and electricity system. The optimized strategy for heat sector decarbonisation is also demonstrated, providing an outline of the optimal deployment for different heating technologies in terms of their penetrations and deployed areas. The UK case study suggests the significant economic advantage of the hybrid HP-B over the other two heating technologies, while DHN may play an important role in urban areas under the optimized heat decarbonisation strategy. The results also clearly demonstrate the changes on the electricity side driven by the different decarbonisation strategies in the heating system.

Keywords: District heating networks; Hybrid heat pumps; Thermal energy storage; Power system economics; Renewable energy sources (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (23)

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DOI: 10.1016/j.apenergy.2018.03.140

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