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Market diffusion, technological learning, and cost-benefit dynamics of condensing gas boilers in the Netherlands

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  • Weiss, Martin
  • Dittmar, Lars
  • Junginger, Martin
  • Patel, Martin K.
  • Blok, Kornelis

Abstract

High costs often prevent the market diffusion of novel and efficient energy technologies. Monitoring cost and price decline for these technologies is thus important in order to establish effective energy policy. Here, we present experience curves and cost-benefit analyses for condensing gas boilers produced and sold in the Netherlands between 1981 and 2006. For the most dominant boiler type on the Dutch market, i.e., condensing gas combi boilers, we identify learning rates of 14±1% for the average price and 16±8% for the additional price relative to non-condensing devices. Economies of scale, competitive sourcing of boiler components, and improvements in boiler assembly are among the main drivers behind the observed price decline. The net present value of condensing gas combi boilers shows an overall increasing trend. Purchasing in 2006 a gas boiler of this type instead of a non-condensing device generates a net present value of 970 EUR (Euro) and realizes CO2 (carbon dioxide) emission savings at negative costs of -120 EUR per tonne CO2. We attribute two-thirds of the improvements in the cost-benefit performance of condensing gas combi boilers to technological learning and one-third to a combination of external effects and governmental policies.

Suggested Citation

  • Weiss, Martin & Dittmar, Lars & Junginger, Martin & Patel, Martin K. & Blok, Kornelis, 2009. "Market diffusion, technological learning, and cost-benefit dynamics of condensing gas boilers in the Netherlands," Energy Policy, Elsevier, vol. 37(8), pages 2962-2976, August.
  • Handle: RePEc:eee:enepol:v:37:y:2009:i:8:p:2962-2976
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Gerssen-Gondelach, S.J. & Saygin, D. & Wicke, B. & Patel, M.K. & Faaij, A.P.C., 2014. "Competing uses of biomass: Assessment and comparison of the performance of bio-based heat, power, fuels and materials," Renewable and Sustainable Energy Reviews, Elsevier, vol. 40(C), pages 964-998.
    2. Lee, Seungro & Kum, Sung-Min & Lee, Chang-Eon, 2011. "An experimental study of a cylindrical multi-hole premixed burner for the development of a condensing gas boiler," Energy, Elsevier, vol. 36(7), pages 4150-4157.
    3. Klaassen, R.E. & Patel, M.K., 2013. "District heating in the Netherlands today: A techno-economic assessment for NGCC-CHP (Natural Gas Combined Cycle combined heat and power)," Energy, Elsevier, vol. 54(C), pages 63-73.
    4. Brouwer, Anne Sjoerd & Kuramochi, Takeshi & van den Broek, Machteld & Faaij, André, 2013. "Fulfilling the electricity demand of electric vehicles in the long term future: An evaluation of centralized and decentralized power supply systems," Applied Energy, Elsevier, vol. 107(C), pages 33-51.
    5. Gómez, Antonio & Dopazo, César & Fueyo, Norberto, 2014. "The causes of the high energy intensity of the Kazakh economy: A characterization of its energy system," Energy, Elsevier, vol. 71(C), pages 556-568.
    6. Gómez, Antonio & Dopazo, César & Fueyo, Norberto, 2015. "The future of energy in Uzbekistan," Energy, Elsevier, vol. 85(C), pages 329-338.
    7. Groesser, Stefan N., 2014. "Co-evolution of legal and voluntary standards: Development of energy efficiency in Swiss residential building codes," Technological Forecasting and Social Change, Elsevier, vol. 87(C), pages 1-16.

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