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Experience Rates of Low-Carbon Domestic Heating Technologies in the United Kingdom

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  • Renaldi, Renaldi

    (Department of Engineering Science, University of Oxford)

  • Hall, Richard

    (Energy Transitions Ltd.)

  • Jamasb, Tooraj

    (Department of Economics, Copenhagen Business School)

  • Roskilly, Anthony P.

    (Department of Engineering, Durham University)

Abstract

This paper presents the experience curves of low-carbon domestic heating technologies in the United Kingdom between 2010 and 2019. The deployment of these technologies has been acknowledged as one of the main actions toward decarbonising the heating sector. In the UK, several deployment oriented policies have been implemented, such as the Renewable Heat Incentive (RHI). In this study, we focus on the following domestic heating technologies: air-source heat pumps, ground-source heat pumps, solar thermal collectors, and biomass boilers. Condensing combination gas boilers are also included to act as the baseline/incumbent technology. Using UK installation cost data for 2010 to 2019, we found that low-carbon heating technologies had experience rates of; air source heat pumps -2.3± 5%, ground source heat pumps -0.8±4%, biomass boilers 0.1±2%, and solar thermal 13±5%, all significantly lower than the re-ported learning rates of similar technologies in the literature. Furthermore, we found that gas boilers have reached the floor price at approximately £30/kW. The resulting experience rates can be used in energy economics models and to inform policymakers in developing further deployment programs.

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  • Renaldi, Renaldi & Hall, Richard & Jamasb, Tooraj & Roskilly, Anthony P., 2020. "Experience Rates of Low-Carbon Domestic Heating Technologies in the United Kingdom," Working Papers 16-2020, Copenhagen Business School, Department of Economics.
    • Handle: RePEc:hhs:cbsnow:2020_016
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    Cited by:

    1. Edoardo Ruffino & Bruno Piga & Alessandro Casasso & Rajandrea Sethi, 2022. "Heat Pumps, Wood Biomass and Fossil Fuel Solutions in the Renovation of Buildings: A Techno-Economic Analysis Applied to Piedmont Region (NW Italy)," Energies, MDPI, vol. 15(7), pages 1-25, March.
    2. Lyden, Andrew & Alene, Samuel & Connor, Peter & Renaldi, Renaldi & Watson, Stephen, 2024. "Impact of locational pricing on the roll out of heat pumps in the UK," Energy Policy, Elsevier, vol. 187(C).
    3. Aunedi, Marko & Olympios, Andreas V. & Pantaleo, Antonio M. & Markides, Christos N. & Strbac, Goran, 2023. "System-driven design and integration of low-carbon domestic heating technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 187(C).

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    More about this item

    Keywords

    Experience curves; Learning curves; Experience rates; Low-carbon heating; Heat decarbonisation;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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