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Flexible Electricity Use for Heating in Markets with Renewable Energy

Author

Listed:
  • Wolf-Peter Schill
  • Alexander Zerrahn

Abstract

Using electricity for heating can contribute to decarbonization and provide flexibility to integrate variable renewable energy. We analyze the case of electric storage heaters in German 2030 scenarios with an open-source electricity sector model. Making customary night-time storage heaters temporally more flexible offers only moderate benefits because renewable availability during daytime is limited in the heating season. As storage heaters feature only short-term heat storage, they also cannot reconcile the seasonal mismatch of heat demand in winter and high renewable availability in summer. Generally, flexible electric heaters increase the use of generation technologies with low variable costs, which are not necessarily renewables.

Suggested Citation

  • Wolf-Peter Schill & Alexander Zerrahn, 2018. "Flexible Electricity Use for Heating in Markets with Renewable Energy," Discussion Papers of DIW Berlin 1769, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwwpp:dp1769
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    2. Löffler, Konstantin & Burandt, Thorsten & Hainsch, Karlo & Oei, Pao-Yu & Seehaus, Frederik & Wejda, Felix, 2022. "Chances and barriers for Germany's low carbon transition - Quantifying uncertainties in key influential factors," Energy, Elsevier, vol. 239(PA).
    3. Clerjon, Arthur & Perdu, Fabien, 2022. "Matching intermittent electricity supply and demand with electricity storage - An optimization based on a time scale analysis," Energy, Elsevier, vol. 241(C).
    4. Gils, Hans Christian & Gardian, Hedda & Kittel, Martin & Schill, Wolf-Peter & Zerrahn, Alexander & Murmann, Alexander & Launer, Jann & Fehler, Alexander & Gaumnitz, Felix & van Ouwerkerk, Jonas & Bußa, 2022. "Modeling flexibility in energy systems — comparison of power sector models based on simplified test cases," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    5. 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).
    6. Jasmine Ramsebner & Reinhard Haas & Amela Ajanovic & Martin Wietschel, 2021. "The sector coupling concept: A critical review," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 10(4), July.
    7. Stöckl, Fabian & Schill, Wolf-Peter & Zerrahn, Alexander, 2021. "Optimal supply chains and power sector benefits of green hydrogen," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 11.
    8. Hippolyte Cédiey & Philippe Quirion & Laure Baratgin & Quentin Bustarret & Nilam de Oliveira-Gill & Quentin Perrier & Célia Escribe & Thomas Letz & Thierry Salomon & Behrang Shirizadeh, 2026. "Évaluation de l'équilibre électrique du scénario négawatt 2022 à l'aide du modèle open source eoles," Post-Print hal-05535429, HAL.
    9. Martin Kittel & Alexander Roth & Wolf-Peter Schill, 2024. "Coping with the Dunkelflaute: Power system implications of variable renewable energy droughts in Europe," Papers 2411.17683, arXiv.org, revised Nov 2025.
    10. Adeline Gu'eret & Carlos Gaete-Morales & Wolf-Peter Schill, 2025. "A moderate share of V2G outperforms large-scale smart charging of electric vehicles and benefits other consumers," Papers 2509.15284, arXiv.org.
    11. Majidi, Hassan & Hayati, Mohammad Mohsen & Breyer, Christian & Mohammadi-ivatloo, Behnam & Honkapuro, Samuli & Karjunen, Hannu & Laaksonen, Petteri & Sihvonen, Ville, 2025. "Overview of energy modeling requirements and tools for future smart energy systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 212(C).
    12. Dai, Yuanhang & Hao, Junhong & Wang, Xingce & Chen, Lei & Chen, Qun & Du, Xiaoze, 2022. "A comprehensive model and its optimal dispatch of an integrated electrical-thermal system with multiple heat sources," Energy, Elsevier, vol. 261(PA).
    13. Xiaoyi Zhang & Weijun Gao & Yanxue Li & Zixuan Wang & Yoshiaki Ushifusa & Yingjun Ruan, 2021. "Operational Performance and Load Flexibility Analysis of Japanese Zero Energy House," IJERPH, MDPI, vol. 18(13), pages 1-19, June.
    14. Kirchem, Dana & Schill, Wolf-Peter, 2023. "Power sector effects of green hydrogen production in Germany," Energy Policy, Elsevier, vol. 182(C).
    15. Göke, Leonard & Weibezahn, Jens & Kendziorski, Mario, 2023. "How flexible electrification can integrate fluctuating renewables," Energy, Elsevier, vol. 278(PA).
    16. Morales-España, Germán & Martínez-Gordón, Rafael & Sijm, Jos, 2022. "Classifying and modelling demand response in power systems," Energy, Elsevier, vol. 242(C).
    17. Matthias Pazold & Jan Radon & Matthias Kersken & Hartwig Künzel & Florian Antretter & Herbert Sinnesbichler, 2023. "Development and Verification of Novel Building Integrated Thermal Storage System Models," Energies, MDPI, vol. 16(6), pages 1-21, March.
    18. Alexander Roth & Carlos Gaete-Morales & Dana Kirchem & Wolf-Peter Schill, 2023. "Power sector benefits of flexible heat pumps," Papers 2307.12918, arXiv.org, revised Oct 2024.
    19. Sheha, Moataz & Mohammadi, Kasra & Powell, Kody, 2021. "Techno-economic analysis of the impact of dynamic electricity prices on solar penetration in a smart grid environment with distributed energy storage," Applied Energy, Elsevier, vol. 282(PA).
    20. Dongxiao Niu & Tian Gao & Zhengsen Ji & Yujing Liu & Gengqi Wu, 2021. "Analysis of the Efficiency of Provincial Electricity Substitution in China Based on a Three-Stage DEA Model," Energies, MDPI, vol. 14(20), pages 1-17, October.
    21. Heffron, Raphael & Körner, Marc-Fabian & Wagner, Jonathan & Weibelzahl, Martin & Fridgen, Gilbert, 2020. "Industrial demand-side flexibility: A key element of a just energy transition and industrial development," Applied Energy, Elsevier, vol. 269(C).

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    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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