IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v11y2018i12p3266-d185087.html
   My bibliography  Save this article

Life Cycle Cost of Heat Supply to Areas with Detached Houses—A Comparison of District Heating and Heat Pumps from an Energy System Perspective

Author

Listed:
  • Moa Swing Gustafsson

    (Energy Technology, Dalarna University, 791 88 Falun, Sweden
    Business, Society and Engineering, Mälardalen University, 721 23 Västerås, Sweden)

  • Jonn Are Myhren

    (Energy Technology, Dalarna University, 791 88 Falun, Sweden)

  • Erik Dotzauer

    (Business, Society and Engineering, Mälardalen University, 721 23 Västerås, Sweden)

Abstract

There are different views on whether district heating (DH) or heat pumps (HPs) is or are the best heating solution in order to reach a 100% renewable energy system. This article investigates the economic perspective, by calculating and comparing the energy system life cycle cost (LCC) for the two solutions in areas with detached houses. The LCC is calculated using Monte Carlo simulation, where all input data is varied according to predefined probability distributions. In addition to the parameter variations, 16 different scenarios are evaluated regarding the main fuel for the DH, the percentage of combined heat and power (CHP), the DH temperature level, and the type of electrical backup power. Although HP is the case with the lowest LCC for most of the scenarios, there are alternatives for each scenario in which either HP or DH has the lowest LCC. In alternative scenarios with additional electricity transmission costs, and a marginal cost perspective regarding the CHP investment, DH has the lowest LCC overall, taking into account all scenarios. The study concludes that the decision based on energy system economy on whether DH should expand into areas with detached houses must take local conditions into consideration.

Suggested Citation

  • Moa Swing Gustafsson & Jonn Are Myhren & Erik Dotzauer, 2018. "Life Cycle Cost of Heat Supply to Areas with Detached Houses—A Comparison of District Heating and Heat Pumps from an Energy System Perspective," Energies, MDPI, vol. 11(12), pages 1-17, November.
    • Handle: RePEc:gam:jeners:v:11:y:2018:i:12:p:3266-:d:185087
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/11/12/3266/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/11/12/3266/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Münster, Marie & Morthorst, Poul Erik & Larsen, Helge V. & Bregnbæk, Lars & Werling, Jesper & Lindboe, Hans Henrik & Ravn, Hans, 2012. "The role of district heating in the future Danish energy system," Energy, Elsevier, vol. 48(1), pages 47-55.
    2. Lund, Henrik & Munster, Ebbe, 2006. "Integrated energy systems and local energy markets," Energy Policy, Elsevier, vol. 34(10), pages 1152-1160, July.
    3. Reidhav, Charlotte & Werner, Sven, 2008. "Profitability of sparse district heating," Applied Energy, Elsevier, vol. 85(9), pages 867-877, September.
    4. Lund, Henrik & Andersen, Anders N. & Østergaard, Poul Alberg & Mathiesen, Brian Vad & Connolly, David, 2012. "From electricity smart grids to smart energy systems – A market operation based approach and understanding," Energy, Elsevier, vol. 42(1), pages 96-102.
    5. Lund, Henrik & Werner, Sven & Wiltshire, Robin & Svendsen, Svend & Thorsen, Jan Eric & Hvelplund, Frede & Mathiesen, Brian Vad, 2014. "4th Generation District Heating (4GDH)," Energy, Elsevier, vol. 68(C), pages 1-11.
    6. Lund, H. & Möller, B. & Mathiesen, B.V. & Dyrelund, A., 2010. "The role of district heating in future renewable energy systems," Energy, Elsevier, vol. 35(3), pages 1381-1390.
    7. Grundahl, Lars & Nielsen, Steffen & Lund, Henrik & Möller, Bernd, 2016. "Comparison of district heating expansion potential based on consumer-economy or socio-economy," Energy, Elsevier, vol. 115(P3), pages 1771-1778.
    8. Lundström, Lukas & Wallin, Fredrik, 2016. "Heat demand profiles of energy conservation measures in buildings and their impact on a district heating system," Applied Energy, Elsevier, vol. 161(C), pages 290-299.
    9. Østergaard, Poul Alberg, 2006. "Ancillary services and the integration of substantial quantities of wind power," Applied Energy, Elsevier, vol. 83(5), pages 451-463, May.
    10. Nilsson, Stefan Forsaeus & Reidhav, Charlotte & Lygnerud, Kristina & Werner, Sven, 2008. "Sparse district-heating in Sweden," Applied Energy, Elsevier, vol. 85(7), pages 555-564, July.
    11. Möller, Bernd & Lund, Henrik, 2010. "Conversion of individual natural gas to district heating: Geographical studies of supply costs and consequences for the Danish energy system," Applied Energy, Elsevier, vol. 87(6), pages 1846-1857, June.
    12. Gustafsson, Mattias & Rönnelid, Mats & Trygg, Louise & Karlsson, Björn, 2016. "CO2 emission evaluation of energy conserving measures in buildings connected to a district heating system – Case study of a multi-dwelling building in Sweden," Energy, Elsevier, vol. 111(C), pages 341-350.
    13. Chang Liu & Mao-Song Cheng & Bing-Chen Zhao & Zhi-Min Dai, 2017. "A Wind Power Plant with Thermal Energy Storage for Improving the Utilization of Wind Energy," Energies, MDPI, vol. 10(12), pages 1-20, December.
    14. Connolly, D. & Lund, H. & Mathiesen, B.V. & Werner, S. & Möller, B. & Persson, U. & Boermans, T. & Trier, D. & Østergaard, P.A. & Nielsen, S., 2014. "Heat Roadmap Europe: Combining district heating with heat savings to decarbonise the EU energy system," Energy Policy, Elsevier, vol. 65(C), pages 475-489.
    15. Persson, U. & Möller, B. & Werner, S., 2014. "Heat Roadmap Europe: Identifying strategic heat synergy regions," Energy Policy, Elsevier, vol. 74(C), pages 663-681.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Arghand, Taha & Javed, Saqib & Dalenbäck, Jan-Olof, 2023. "Combining direct ground cooling with ground-source heat pumps and district heating: Energy and economic analysis," Energy, Elsevier, vol. 270(C).
    2. Rakesh Sinha & Birgitte Bak-Jensen & Jayakrishnan Radhakrishna Pillai, 2019. "Autonomous Controller for Flexible Operation of Heat Pumps in Low-Voltage Distribution Network," Energies, MDPI, vol. 12(8), pages 1-19, April.
    3. Nérot, B. & Lamaison, N. & Mabrouk, M.T. & Bavière, R. & Lacarrière, B., 2023. "Optimization framework for evaluating urban thermal systems potential," Energy, Elsevier, vol. 270(C).
    4. Moa Swing Gustafsson & Jonn Are Myhren & Erik Dotzauer & Marcus Gustafsson, 2019. "Life Cycle Cost of Building Energy Renovation Measures, Considering Future Energy Production Scenarios," Energies, MDPI, vol. 12(14), pages 1-15, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lund, Henrik & Werner, Sven & Wiltshire, Robin & Svendsen, Svend & Thorsen, Jan Eric & Hvelplund, Frede & Mathiesen, Brian Vad, 2014. "4th Generation District Heating (4GDH)," Energy, Elsevier, vol. 68(C), pages 1-11.
    2. Averfalk, Helge & Ingvarsson, Paul & Persson, Urban & Gong, Mei & Werner, Sven, 2017. "Large heat pumps in Swedish district heating systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 1275-1284.
    3. Østergaard, P.A. & Lund, H. & Thellufsen, J.Z. & Sorknæs, P. & Mathiesen, B.V., 2022. "Review and validation of EnergyPLAN," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    4. Grundahl, Lars & Nielsen, Steffen & Lund, Henrik & Möller, Bernd, 2016. "Comparison of district heating expansion potential based on consumer-economy or socio-economy," Energy, Elsevier, vol. 115(P3), pages 1771-1778.
    5. Mathiesen, B.V. & Lund, H. & Connolly, D. & Wenzel, H. & Østergaard, P.A. & Möller, B. & Nielsen, S. & Ridjan, I. & Karnøe, P. & Sperling, K. & Hvelplund, F.K., 2015. "Smart Energy Systems for coherent 100% renewable energy and transport solutions," Applied Energy, Elsevier, vol. 145(C), pages 139-154.
    6. Persson, U. & Möller, B. & Werner, S., 2014. "Heat Roadmap Europe: Identifying strategic heat synergy regions," Energy Policy, Elsevier, vol. 74(C), pages 663-681.
    7. Möller, Bernd & Wiechers, Eva & Persson, Urban & Grundahl, Lars & Connolly, David, 2018. "Heat Roadmap Europe: Identifying local heat demand and supply areas with a European thermal atlas," Energy, Elsevier, vol. 158(C), pages 281-292.
    8. Persson, Urban & Wiechers, Eva & Möller, Bernd & Werner, Sven, 2019. "Heat Roadmap Europe: Heat distribution costs," Energy, Elsevier, vol. 176(C), pages 604-622.
    9. Golmohamadi, Hessam & Larsen, Kim Guldstrand & Jensen, Peter Gjøl & Hasrat, Imran Riaz, 2022. "Integration of flexibility potentials of district heating systems into electricity markets: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 159(C).
    10. Soltero, V.M. & Chacartegui, R. & Ortiz, C. & Velázquez, R., 2016. "Evaluation of the potential of natural gas district heating cogeneration in Spain as a tool for decarbonisation of the economy," Energy, Elsevier, vol. 115(P3), pages 1513-1532.
    11. Rinne, S. & Syri, S., 2015. "The possibilities of combined heat and power production balancing large amounts of wind power in Finland," Energy, Elsevier, vol. 82(C), pages 1034-1046.
    12. Bühler, Fabian & Petrović, Stefan & Karlsson, Kenneth & Elmegaard, Brian, 2017. "Industrial excess heat for district heating in Denmark," Applied Energy, Elsevier, vol. 205(C), pages 991-1001.
    13. Hansen, C.H. & Gudmundsson, O. & Detlefsen, N., 2019. "Cost efficiency of district heating for low energy buildings of the future," Energy, Elsevier, vol. 177(C), pages 77-86.
    14. Borna Doračić & Tomislav Novosel & Tomislav Pukšec & Neven Duić, 2018. "Evaluation of Excess Heat Utilization in District Heating Systems by Implementing Levelized Cost of Excess Heat," Energies, MDPI, vol. 11(3), pages 1-14, March.
    15. Asaee, S. Rasoul & Sharafian, Amir & Herrera, Omar E. & Blomerus, Paul & Mérida, Walter, 2018. "Housing stock in cold-climate countries: Conversion challenges for net zero emission buildings," Applied Energy, Elsevier, vol. 217(C), pages 88-100.
    16. Lund, Henrik & Østergaard, Poul Alberg & Connolly, David & Mathiesen, Brian Vad, 2017. "Smart energy and smart energy systems," Energy, Elsevier, vol. 137(C), pages 556-565.
    17. Connolly, D. & Lund, H. & Mathiesen, B.V., 2016. "Smart Energy Europe: The technical and economic impact of one potential 100% renewable energy scenario for the European Union," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 1634-1653.
    18. Danica Djurić Ilić, 2020. "Classification of Measures for Dealing with District Heating Load Variations—A Systematic Review," Energies, MDPI, vol. 14(1), pages 1-27, December.
    19. Lake, Andrew & Rezaie, Behanz & Beyerlein, Steven, 2017. "Review of district heating and cooling systems for a sustainable future," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 417-425.
    20. Werner, Sven, 2017. "International review of district heating and cooling," Energy, Elsevier, vol. 137(C), pages 617-631.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:11:y:2018:i:12:p:3266-:d:185087. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.