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Electricity market options for heat pumps in rural district heating networks in Austria

Author

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  • Terreros, O.
  • Spreitzhofer, J.
  • Basciotti, D.
  • Schmidt, R.R.
  • Esterl, T.
  • Pober, M.
  • Kerschbaumer, M.
  • Ziegler, M.

Abstract

The integration of renewable heat sources in the electricity grid represents a challenge in the energy system due to their stochastic production character. Besides, the rural district heating sector in Austria is confronted with a large number of biomass boilers reaching the end of their lifetime and thus operating unprofitably. In this context, heat pumps have a decisive role in supporting both networks and providing flexibility. However, their implementation is not yet extended in Austria. This paper shows the potential of heat pump utilization in several concrete use cases. Results determine that heat pumps can be active players in the Austrian electricity market. Energy costs can be saved by taking advantage of low prices in the day-ahead market and additional revenues can be earned in the balancing market. Offering negative balancing energy for the automatic frequency restoration reserve (aFRR) presents a potentially interesting business case since it provides a considerable reduction in the heat generation costs. Considering the complexity and uncertainty of the future market development, awareness on the most influencing factors gains great relevance. Results show that fluctuations in the biomass price and call probabilities can affect the heat pump profitability.

Suggested Citation

  • Terreros, O. & Spreitzhofer, J. & Basciotti, D. & Schmidt, R.R. & Esterl, T. & Pober, M. & Kerschbaumer, M. & Ziegler, M., 2020. "Electricity market options for heat pumps in rural district heating networks in Austria," Energy, Elsevier, vol. 196(C).
    • Handle: RePEc:eee:energy:v:196:y:2020:i:c:s0360544219325708
    DOI: 10.1016/j.energy.2019.116875
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    2. Behnaz Behi & Ali Arefi & Philip Jennings & Arian Gorjy & Almantas Pivrikas, 2021. "Advanced Monitoring and Control System for Virtual Power Plants for Enabling Customer Engagement and Market Participation," Energies, MDPI, vol. 14(4), pages 1-19, February.
    3. Mengting Jiang & Camilo Rindt & David M. J. Smeulders, 2022. "Optimal Planning of Future District Heating Systems—A Review," Energies, MDPI, vol. 15(19), pages 1-38, September.
    4. Javanshir, Nima & Syri, Sanna & Tervo, Seela & Rosin, Argo, 2023. "Operation of district heat network in electricity and balancing markets with the power-to-heat sector coupling," Energy, Elsevier, vol. 266(C).
    5. Lygnerud, Kristina & Ottosson, Jonas & Kensby, Johan & Johansson, Linnea, 2021. "Business models combining heat pumps and district heating in buildings generate cost and emission savings," Energy, Elsevier, vol. 234(C).
    6. Gudmundsson, Oddgeir & Schmidt, Ralf-Roman & Dyrelund, Anders & Thorsen, Jan Eric, 2022. "Economic comparison of 4GDH and 5GDH systems – Using a case study," Energy, Elsevier, vol. 238(PA).
    7. Omais Abdur Rehman & Valeria Palomba & Andrea Frazzica & Luisa F. Cabeza, 2021. "Enabling Technologies for Sector Coupling: A Review on the Role of Heat Pumps and Thermal Energy Storage," Energies, MDPI, vol. 14(24), pages 1-30, December.
    8. Østergaard, Poul Alberg & Andersen, Anders N., 2021. "Variable taxes promoting district heating heat pump flexibility," Energy, Elsevier, vol. 221(C).
    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. Edtmayer, Hermann & Nageler, Peter & Heimrath, Richard & Mach, Thomas & Hochenauer, Christoph, 2021. "Investigation on sector coupling potentials of a 5th generation district heating and cooling network," Energy, Elsevier, vol. 230(C).
    11. Boldrini, A. & Jiménez Navarro, J.P. & Crijns-Graus, W.H.J. & van den Broek, M.A., 2022. "The role of district heating systems to provide balancing services in the European Union," Renewable and Sustainable Energy Reviews, Elsevier, vol. 154(C).
    12. Dorotić, Hrvoje & Ban, Marko & Pukšec, Tomislav & Duić, Neven, 2020. "Impact of wind penetration in electricity markets on optimal power-to-heat capacities in a local district heating system," Renewable and Sustainable Energy Reviews, Elsevier, vol. 132(C).
    13. Huang, Renfang & Zhang, Zhen & Zhang, Wei & Mou, Jiegang & Zhou, Peijian & Wang, Yiwei, 2020. "Energy performance prediction of the centrifugal pumps by using a hybrid neural network," Energy, Elsevier, vol. 213(C).

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