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Flexible electricity use for heating in markets with renewable energy

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  • Schill, Wolf-Peter
  • Zerrahn, Alexander

Abstract

Using electricity for heating can contribute to decarbonization and provide flexibility to integrate variable renewable energy. We analyze the case of electric storage heaters in German 2030 scenarios with an open-source electricity sector model. We find that flexible electric heaters generally increase the use of generation technologies with low variable costs, which are not necessarily renewables. Yet making customary night-time storage heaters temporally more flexible offers only moderate benefits because renewable availability during daytime is limited in the heating season. Respective investment costs accordingly have to be very low in order to realize total system cost benefits. As storage heaters feature only short-term heat storage, they also cannot reconcile the seasonal mismatch of heat demand in winter and high renewable availability in summer. Future research should evaluate the benefits of longer-term heat storage.

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  • Schill, Wolf-Peter & Zerrahn, Alexander, 2020. "Flexible electricity use for heating in markets with renewable energy," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 266.
    • Handle: RePEc:zbw:espost:222435
    DOI: 10.1016/j.apenergy.2020.114571
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    Cited by:

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    3. Jasmine Ramsebner & Reinhard Haas & Amela Ajanovic & Martin Wietschel, 2021. "The sector coupling concept: A critical review," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 10(4), July.
    4. Kirchem, Dana & Schill, Wolf-Peter, 2023. "Power sector effects of green hydrogen production in Germany," Energy Policy, Elsevier, vol. 182(C).
    5. Matthias Pazold & Jan Radon & Matthias Kersken & Hartwig Künzel & Florian Antretter & Herbert Sinnesbichler, 2023. "Development and Verification of Novel Building Integrated Thermal Storage System Models," Energies, MDPI, vol. 16(6), pages 1-21, March.
    6. Dongxiao Niu & Tian Gao & Zhengsen Ji & Yujing Liu & Gengqi Wu, 2021. "Analysis of the Efficiency of Provincial Electricity Substitution in China Based on a Three-Stage DEA Model," Energies, MDPI, vol. 14(20), pages 1-17, October.
    7. Heffron, Raphael & Körner, Marc-Fabian & Wagner, Jonathan & Weibelzahl, Martin & Fridgen, Gilbert, 2020. "Industrial demand-side flexibility: A key element of a just energy transition and industrial development," Applied Energy, Elsevier, vol. 269(C).
    8. Löffler, Konstantin & Burandt, Thorsten & Hainsch, Karlo & Oei, Pao-Yu & Seehaus, Frederik & Wejda, Felix, 2022. "Chances and barriers for Germany's low carbon transition - Quantifying uncertainties in key influential factors," Energy, Elsevier, vol. 239(PA).
    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. Stöckl, Fabian & Schill, Wolf-Peter & Zerrahn, Alexander, 2021. "Optimal supply chains and power sector benefits of green hydrogen," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 11.
    11. Dai, Yuanhang & Hao, Junhong & Wang, Xingce & Chen, Lei & Chen, Qun & Du, Xiaoze, 2022. "A comprehensive model and its optimal dispatch of an integrated electrical-thermal system with multiple heat sources," Energy, Elsevier, vol. 261(PA).
    12. Xiaoyi Zhang & Weijun Gao & Yanxue Li & Zixuan Wang & Yoshiaki Ushifusa & Yingjun Ruan, 2021. "Operational Performance and Load Flexibility Analysis of Japanese Zero Energy House," IJERPH, MDPI, vol. 18(13), pages 1-19, June.
    13. Göke, Leonard & Weibezahn, Jens & Kendziorski, Mario, 2023. "How flexible electrification can integrate fluctuating renewables," Energy, Elsevier, vol. 278(PA).
    14. Morales-España, Germán & Martínez-Gordón, Rafael & Sijm, Jos, 2022. "Classifying and modelling demand response in power systems," Energy, Elsevier, vol. 242(C).
    15. Alexander Roth & Dana Kirchem & Carlos Gaete-Morales & Wolf-Peter Schill, 2023. "Flexible heat pumps: must-have or nice to have in a power sector with renewables?," Papers 2307.12918, arXiv.org.
    16. Sheha, Moataz & Mohammadi, Kasra & Powell, Kody, 2021. "Techno-economic analysis of the impact of dynamic electricity prices on solar penetration in a smart grid environment with distributed energy storage," Applied Energy, Elsevier, vol. 282(PA).

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    More about this item

    Keywords

    Power-to-heat; Electric heating; Renewable energy integration; Energy storage; Demand-side management; Decarbonization; Power system model;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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