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Heat Pump Installation in Public Buildings: Savings and Environmental Benefits in Underserved Rural Areas

Author

Listed:
  • Piotr Gradziuk

    (Institute of Rural and Agricultural Development, Polish Academy of Sciences, 00-330 Warsaw, Poland)

  • Aleksandra Siudek

    (Department of Economics and Organisation of Enterprises, Institute of Economics and Finance, Warsaw University of Life Sciences, 02-787 Warsaw, Poland)

  • Anna M. Klepacka

    (Department of Economics and Organisation of Enterprises, Institute of Economics and Finance, Warsaw University of Life Sciences, 02-787 Warsaw, Poland)

  • Wojciech J. Florkowski

    (Department of Agricultural and Applied Economics, University of Georgia, Griffin, GA 30223, USA)

  • Anna Trocewicz

    (Faculty of Economic Sciences, John Paul II University of Applied Sciences in Biala Podlaska, 21-500 Biala Podlaska, Poland)

  • Iryna Skorokhod

    (Department of International Economic Relations and Project Management, Lesya Ukrainka Volyn National University, 43025 Lutsk, Ukraine)

Abstract

Heat pump technology offers a path towards reducing the use of fossil fuels to heat space, providing energy bill savings and reducing air pollution and GHG emissions. The choice of heating method is based on costs; hence, this study examines the gains from operating heat pump systems in public buildings as well as alternative systems using electricity, LPG, and heating oil. The study focuses on the Ruda-Huta municipality in Poland that, as is common in rural areas, lacks access to a district heating system or piped gas. The empirical analysis includes heat pump installations in eight municipal buildings. The study found that the use of ground source heat pumps proved competitive with existing heating systems in terms of payback time. Calculations for three heating energy source scenarios, i.e., electricity, LPG, and heating oil, used the Simple Pay Back Time (SPBT) and the Levelized Cost of Heat (LCOH) methods and the average prices of the three energy types for the period 2012–2021. The payback period calculations disregarded the EU subsidies for heating systems utilizing renewable energy sources (RES). The payback time for electric, LPG, and heating oil were, respectively, 6.7–7.8 years, 4.1–6.1 years, and 6.7–6.9 years. Much larger spreads favoring heat pumps were calculated using the LCOH, and the costs in the case of electric heating were nearly three times higher and doubled when using heating oil and LPG. The gains from investing in heat pump systems have been offset by the increase in electricity, LPH, and heating oil prices, which have been predicted to continue to increase in the foreseeable future supporting the use of heat pumps in rural areas lacking access to, for example, district heating systems. The switch to heat pumps reduced local air pollution by eliminating the burning of fossil fuels to heat space in public buildings.

Suggested Citation

  • Piotr Gradziuk & Aleksandra Siudek & Anna M. Klepacka & Wojciech J. Florkowski & Anna Trocewicz & Iryna Skorokhod, 2022. "Heat Pump Installation in Public Buildings: Savings and Environmental Benefits in Underserved Rural Areas," Energies, MDPI, vol. 15(21), pages 1-16, October.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:21:p:7903-:d:952283
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    References listed on IDEAS

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    Cited by:

    1. Tamás Buday & Erika Buday-Bódi, 2023. "Reduction in CO 2 Emissions with Bivalent Heat Pump Systems," Energies, MDPI, vol. 16(7), pages 1-18, April.
    2. Păunescu Carmen & Dincă Violeta-Mihaela & Bogdan Anca & Goia Agoston Simona I. & Stamule Stere & Stamule Tănase & Tanțău Adrian, 2023. "Managing energy performance through heat pumps. Success drivers and barriers in residential sector," Management & Marketing, Sciendo, vol. 18(3), pages 214-233, September.

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