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An overview of the electrification of residential and commercial heating and cooling and prospects for decarbonisation

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  • Fajardy, M.
  • Reiner, D M.

Abstract

Heating and cooling are responsible for over 50% of the world’s final energy consumption, and over 40% of global CO2 emissions. With an increasingly decarbonised electricity grid, the electrification of heating offers one potential alternative to the incumbent, heavily fossil-fuel dominated heating system. However, the high penetration of renewables, the high seasonality and hourly variability of heat demand, and an increasing domestic demand for energy services, including cooling, pose significant balancing challenges for both hourly system operation and the long-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. We provide a global overview of the technical, economic and policy challenges and opportunities to decarbonise heating demand through electrification, in the context of rising demand for cooling services.

Suggested Citation

  • Fajardy, M. & Reiner, D M., 2020. "An overview of the electrification of residential and commercial heating and cooling and prospects for decarbonisation," Cambridge Working Papers in Economics 20120, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:20120
    Note: mf705, dmr40
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    More about this item

    Keywords

    Heating; cooling; electrification; decarbonisation; peak load management; demand response;
    All these keywords.

    JEL classification:

    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • 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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