Electrification of residential and commercial heating

Mathilde Fajardy and David Reiner

Chapter 19 in Handbook on Electricity Markets, 2021, pp 506-539 from Edward Elgar Publishing

Abstract: Heating and cooling are responsible for 54per cent of the world's final energy consumption, and 42per cent of global CO2emissions. With an increasinglydecarbonisedelectricity grid, the electrification of heating offers one potential alternative to the incumbent,heavilyfossil fueldominated heating system. However, the high penetration of renewables, the high seasonality and hourly variability of heat demand, and an increasingdomesticdemand for energy services, including cooling, pose significant balancing challenges for both hourly system operation andthelong-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. This chapter discusses thetechnical, economic and policychallenges and opportunities todecarboniseheating demand through electrification, in the context of an increasing demand for cooling services.

Keywords: Economics and Finance; Environment; Law - Academic (search for similar items in EconPapers)
Date: 2021
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