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The value(s) of flexible heat pumps – Assessment of technical and economic conditions

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  • Felten, Björn
  • Weber, Christoph

Abstract

Residential heat pumps are one of the most resource-efficient means for space heating, and their market shares are expected to rise substantially over the next few decades. Through installation of a thermal energy storage, the operation of a heat pump is – to a certain extent – decoupled from heat demand. Such flexibility is frequently claimed to bear a high potential for demand-side management. This study investigates the operational cost savings achievable through the use of such a flexibility option. To this end, a dynamic model of a coupled building and heating system is developed, and several economic model-predictive control strategies for heat-pump operation are derived. These strategies exploit real-time prices and the flexibility of the thermal capacity of the building and/or heat storage. The proposed algorithms are applied using perfect and imperfect foresight. Furthermore, different variations of real-time prices along with several building and storage configurations are investigated. The resulting operational cost savings are contrasted with different paths of investment-cost developments. Results of this investigation demonstrate that investments in flexibility measures (smart-home equipment, thermal storage capacity, etc.) are, for the most part, economically unviable. However, it is also realized that economic feasibility depends greatly on the technical set-up and economic conditions. This study demonstrates that the potential of flexible heat-pump operation is frequently overstated. On the other hand, configurations for which overall system-cost savings could be deemed achievable are also identified.

Suggested Citation

  • Felten, Björn & Weber, Christoph, 2018. "The value(s) of flexible heat pumps – Assessment of technical and economic conditions," Applied Energy, Elsevier, vol. 228(C), pages 1292-1319.
    • Handle: RePEc:eee:appene:v:228:y:2018:i:c:p:1292-1319
    DOI: 10.1016/j.apenergy.2018.06.031
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    8. Singh Gaur, Ankita & Fitiwi, Desta & Curtis, John, 2019. "Heat pumps and their role in decarbonising heating Sector: a comprehensive review," Papers WP627, Economic and Social Research Institute (ESRI).
    9. Wiesheu, Michael & Rutešić, Luka & Shukhobodskiy, Alexander Alexandrovich & Pogarskaia, Tatiana & Zaitcev, Aleksandr & Colantuono, Giuseppe, 2021. "RED WoLF hybrid storage system: Adaptation of algorithm and analysis of performance in residential dwellings," Renewable Energy, Elsevier, vol. 179(C), pages 1036-1048.
    10. Liu, Ming & Ma, Guofeng & Wang, Shan & Wang, Yu & Yan, Junjie, 2021. "Thermo-economic comparison of heat–power decoupling technologies for combined heat and power plants when participating in a power-balancing service in an energy hub," Renewable and Sustainable Energy Reviews, Elsevier, vol. 152(C).
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    More about this item

    Keywords

    Heat pump; Model-predictive control; Real-time pricing; Demand-side management;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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