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CO2-abatement cost of residential heat pumps with active demand response: demand- and supply-side effects


  • Patteeuw, Dieter
  • Reynders, Glenn
  • Bruninx, Kenneth
  • Protopapadaki, Christina
  • Delarue, Erik
  • D’haeseleer, William
  • Saelens, Dirk
  • Helsen, Lieve


Heat pumps are widely recognized as a key technology to reduce CO2 emissions in the residential building sector, especially when the electricity-generation system is to decarbonize by means of large-scale introduction of renewable electric power generation sources. If heat pumps would be installed in large numbers in the future, the question arises whether all building types show equal benefits and thus should be given the same priority for deployment. This paper aims at answering this question by determining the CO2-abatement cost of installing a heat pump instead of a condensing gas boiler for residential space heating and domestic hot-water production. The electricity system, as well as the building types, are based on a possible future Belgian setting in 2030 with high RES penetration at the electricity-generation side. The added value of this work compared to the current scientific literature lies in the integrated approach, taking both the electricity-generation system and a bottom up building stock model into account. Furthermore, this paper analyzes the possible benefits of active demand response in this framework. The results show that the main drivers for determining the CO2-abatement cost are the renovation level of the building and the type of heat pump installed. For thoroughly insulated buildings, an air-coupled heat pump combined with floor heating is the most economic heating system in terms of CO2-abatement cost. Finally, performing active demand response shows clear benefits in reducing costs. Substantial peak shaving can be achieved, making peak capacity at the electricity generation side superfluous, hence lowering the overall CO2-abatement cost.

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  • Patteeuw, Dieter & Reynders, Glenn & Bruninx, Kenneth & Protopapadaki, Christina & Delarue, Erik & D’haeseleer, William & Saelens, Dirk & Helsen, Lieve, 2015. "CO2-abatement cost of residential heat pumps with active demand response: demand- and supply-side effects," Applied Energy, Elsevier, vol. 156(C), pages 490-501.
  • Handle: RePEc:eee:appene:v:156:y:2015:i:c:p:490-501
    DOI: 10.1016/j.apenergy.2015.07.038

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    References listed on IDEAS

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    Cited by:

    1. repec:eee:appene:v:236:y:2019:i:c:p:101-116 is not listed on IDEAS
    2. Patteeuw, Dieter & Henze, Gregor P. & Helsen, Lieve, 2016. "Comparison of load shifting incentives for low-energy buildings with heat pumps to attain grid flexibility benefits," Applied Energy, Elsevier, vol. 167(C), pages 80-92.
    3. repec:eee:enepol:v:109:y:2017:i:c:p:441-451 is not listed on IDEAS
    4. repec:eee:renene:v:131:y:2019:i:c:p:700-712 is not listed on IDEAS
    5. Andreas Bloess & Wolf-Peter Schill & Alexander Zerrahn, 2017. "Power-to-Heat for Renewable Energy Integration: Technologies, Modeling Approaches, and Flexibility Potentials," Discussion Papers of DIW Berlin 1677, DIW Berlin, German Institute for Economic Research.
    6. repec:eee:appene:v:195:y:2017:i:c:p:184-195 is not listed on IDEAS
    7. repec:eee:energy:v:138:y:2017:i:c:p:60-78 is not listed on IDEAS
    8. repec:gam:jeners:v:12:y:2018:i:1:p:5-:d:192115 is not listed on IDEAS
    9. 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).
    10. repec:eee:renene:v:138:y:2019:i:c:p:598-609 is not listed on IDEAS
    11. repec:eee:appene:v:198:y:2017:i:c:p:192-202 is not listed on IDEAS
    12. repec:zbw:espost:200120 is not listed on IDEAS
    13. Jiang, Bo & Muzhikyan, Aramazd & Farid, Amro M. & Youcef-Toumi, Kamal, 2017. "Demand side management in power grid enterprise control: A comparison of industrial & social welfare approaches," Applied Energy, Elsevier, vol. 187(C), pages 833-846.
    14. Arteconi, Alessia & Patteeuw, Dieter & Bruninx, Kenneth & Delarue, Erik & D’haeseleer, William & Helsen, Lieve, 2016. "Active demand response with electric heating systems: Impact of market penetration," Applied Energy, Elsevier, vol. 177(C), pages 636-648.
    15. Protopapadaki, Christina & Saelens, Dirk, 2017. "Heat pump and PV impact on residential low-voltage distribution grids as a function of building and district properties," Applied Energy, Elsevier, vol. 192(C), pages 268-281.
    16. Georges, Emeline & Cornélusse, Bertrand & Ernst, Damien & Lemort, Vincent & Mathieu, Sébastien, 2017. "Residential heat pump as flexible load for direct control service with parametrized duration and rebound effect," Applied Energy, Elsevier, vol. 187(C), pages 140-153.
    17. repec:eee:appene:v:210:y:2018:i:c:p:1310-1320 is not listed on IDEAS
    18. repec:eee:energy:v:152:y:2018:i:c:p:154-165 is not listed on IDEAS
    19. repec:eee:appene:v:239:y:2019:i:c:p:836-845 is not listed on IDEAS
    20. repec:eee:appene:v:212:y:2018:i:c:p:1611-1626 is not listed on IDEAS


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