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Comparison of load shifting incentives for low-energy buildings with heat pumps to attain grid flexibility benefits


  • Patteeuw, Dieter
  • Henze, Gregor P.
  • Helsen, Lieve


This paper aims at assessing the value of load shifting and demand side flexibility for improving electric grid system operations. In particular, this study investigates to what extent residential heat pumps participating in load shifting can contribute to reducing operational costs and CO2 emissions associated with electric power generation and how home owners with heat pump systems can be best motivated to achieve these flexibility benefits. Residential heat pumps, when intelligently orchestrated in their operation, can lower operational costs and CO2 emissions by performing load shifting in order to reduce curtailment of electricity from renewable energy sources and improve the efficiency of dispatchable power plants. In order to study the interaction, both the electricity generation system and residences with heat pumps are modeled. In a first step, an integrated modeling approach is presented which represents the idealized case where the electrical grid operation in terms of unit commitment and dispatch is concurrently optimized with that of a large number of residential heat pumps located in homes designed to low-energy design standards. While this joint optimization approach does not lend itself for real-time implementation, it serves as an upper bound for the achievable operational cost savings. The main focus of this paper is to assess to what extent load shifting incentives are able to achieve the aforementioned savings potential. Two types of incentives are studied: direct load control and dynamic time-of-use pricing. Since both the electricity generation supply system and the residential building stock with heat pumps had been modeled for the joint optimization, the performance of both load shifting incentives can be compared by separately assessing the supply and demand side. Superior performance is noted for the direct-load control scenario, achieving 60–90% of the cost savings attained in the jointly optimized best-case scenario. In dynamic time-of-use pricing, poor performance in terms of reduced cost and emissions is noted when the heat pumps response is not taken into account. When the heat pumps response is taken into account, dynamic time-of-use pricing performs better. However, both dynamic time-of-use pricing schemes show inferior performance at high levels of residential heat pump penetration.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:appene:v:167:y:2016:i:c:p:80-92
    DOI: 10.1016/j.apenergy.2016.01.036

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    References listed on IDEAS

    1. Široký, Jan & Oldewurtel, Frauke & Cigler, Jiří & Prívara, Samuel, 2011. "Experimental analysis of model predictive control for an energy efficient building heating system," Applied Energy, Elsevier, vol. 88(9), pages 3079-3087.
    2. Dupont, B. & Dietrich, K. & De Jonghe, C. & Ramos, A. & Belmans, R., 2014. "Impact of residential demand response on power system operation: A Belgian case study," Applied Energy, Elsevier, vol. 122(C), pages 1-10.
    3. 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.
    4. Corbin, Charles, 2014. "Assessing Impact of Large-Scale Distributed Residential HVAC Control Optimization on Electricity Grid Operation and Renewable Energy Integration," MPRA Paper 58318, University Library of Munich, Germany.
    5. Barton, John & Huang, Sikai & Infield, David & Leach, Matthew & Ogunkunle, Damiete & Torriti, Jacopo & Thomson, Murray, 2013. "The evolution of electricity demand and the role for demand side participation, in buildings and transport," Energy Policy, Elsevier, vol. 52(C), pages 85-102.
    6. Hedegaard, Karsten & Mathiesen, Brian Vad & Lund, Henrik & Heiselberg, Per, 2012. "Wind power integration using individual heat pumps – Analysis of different heat storage options," Energy, Elsevier, vol. 47(1), pages 284-293.
    7. Patteeuw, Dieter & Bruninx, Kenneth & Arteconi, Alessia & Delarue, Erik & D’haeseleer, William & Helsen, Lieve, 2015. "Integrated modeling of active demand response with electric heating systems coupled to thermal energy storage systems," Applied Energy, Elsevier, vol. 151(C), pages 306-319.
    8. 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.
    9. Dupont, B. & De Jonghe, C. & Olmos, L. & Belmans, R., 2014. "Demand response with locational dynamic pricing to support the integration of renewables," Energy Policy, Elsevier, vol. 67(C), pages 344-354.
    10. Strbac, Goran, 2008. "Demand side management: Benefits and challenges," Energy Policy, Elsevier, vol. 36(12), pages 4419-4426, December.
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    Cited by:

    1. Beck, T. & Kondziella, H. & Huard, G. & Bruckner, T., 2017. "Optimal operation, configuration and sizing of generation and storage technologies for residential heat pump systems in the spotlight of self-consumption of photovoltaic electricity," Applied Energy, Elsevier, vol. 188(C), pages 604-619.
    2. repec:eee:appene:v:201:y:2017:i:c:p:111-123 is not listed on IDEAS
    3. repec:eee:appene:v:236:y:2019:i:c:p:711-727 is not listed on IDEAS
    4. 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.
    5. repec:eee:appene:v:228:y:2018:i:c:p:215-228 is not listed on IDEAS
    6. repec:gam:jeners:v:12:y:2018:i:1:p:34-:d:192725 is not listed on IDEAS
    7. repec:gam:jeners:v:10:y:2017:i:7:p:953-:d:104145 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:appene:v:214:y:2018:i:c:p:191-204 is not listed on IDEAS
    11. repec:eee:appene:v:228:y:2018:i:c:p:1292-1319 is not listed on IDEAS
    12. repec:eee:appene:v:212:y:2018:i:c:p:1611-1626 is not listed on IDEAS
    13. Alimohammadisagvand, Behrang & Jokisalo, Juha & Kilpeläinen, Simo & Ali, Mubbashir & Sirén, Kai, 2016. "Cost-optimal thermal energy storage system for a residential building with heat pump heating and demand response control," Applied Energy, Elsevier, vol. 174(C), pages 275-287.
    14. Vinnemeier, Philipp & Wirsum, Manfred & Malpiece, Damien & Bove, Roberto, 2016. "Integration of heat pumps into thermal plants for creation of large-scale electricity storage capacities," Applied Energy, Elsevier, vol. 184(C), pages 506-522.
    15. repec:zbw:espost:200120 is not listed on IDEAS
    16. 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.
    17. repec:eee:appene:v:195:y:2017:i:c:p:184-195 is not listed on IDEAS
    18. repec:eee:appene:v:230:y:2018:i:c:p:627-642 is not listed on IDEAS


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