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Economic assessment of alternative heat decarbonisation strategies through coordinated operation with electricity system – UK case study

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  • Zhang, Xi
  • Strbac, Goran
  • Teng, Fei
  • Djapic, Predrag

Abstract

Electric heat pumps (HPs), hybrid heating technology and district heating networks (DHN) are the main low-carbon heating technologies that can deliver the ambitious carbon reduction target in the UK. The optimal design of the heating system on a national scale to maximize the economic benefits regarding both investment cost and operation cost while satisfying the carbon target remains an open question. This paper aims to compare the economic advantages as well as the associated impacts on the electricity system under the full deployments of ASHP (air source HP), hybrid HP-Bs (ASHP and gas boilers) and DHNs. To do so, a novel whole-system approach is applied with the explicit consideration of the coordinated operation between heat and electricity system. The optimized strategy for heat sector decarbonisation is also demonstrated, providing an outline of the optimal deployment for different heating technologies in terms of their penetrations and deployed areas. The UK case study suggests the significant economic advantage of the hybrid HP-B over the other two heating technologies, while DHN may play an important role in urban areas under the optimized heat decarbonisation strategy. The results also clearly demonstrate the changes on the electricity side driven by the different decarbonisation strategies in the heating system.

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  • Zhang, Xi & Strbac, Goran & Teng, Fei & Djapic, Predrag, 2018. "Economic assessment of alternative heat decarbonisation strategies through coordinated operation with electricity system – UK case study," Applied Energy, Elsevier, vol. 222(C), pages 79-91.
    • Handle: RePEc:eee:appene:v:222:y:2018:i:c:p:79-91
    DOI: 10.1016/j.apenergy.2018.03.140
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    6. Fajardy, M. & Reiner, D M., 2020. "An overview of the electrification of residential and commercial heating and cooling and prospects for decarbonisation," Cambridge Working Papers in Economics 20120, Faculty of Economics, University of Cambridge.
    7. Gallo Cassarino, Tiziano & Barrett, Mark, 2022. "Meeting UK heat demands in zero emission renewable energy systems using storage and interconnectors," Applied Energy, Elsevier, vol. 306(PB).
    8. Gerald Schweiger & Fabian Kuttin & Alfred Posch, 2019. "District Heating Systems: An Analysis of Strengths, Weaknesses, Opportunities, and Threats of the 4GDH," Energies, MDPI, vol. 12(24), pages 1-15, December.
    9. Haghi, Ehsan & Qadrdan, Meysam & Wu, Jianzhong & Jenkins, Nick & Fowler, Michael & Raahemifar, Kaamran, 2020. "An iterative approach for optimal decarbonization of electricity and heat supply systems in the Great Britain," Energy, Elsevier, vol. 201(C).
    10. Vassilis M. Charitopoulos & Mathilde Fajardy & Chi Kong Chyong & David M. Reiner, 2022. "The case of 100% electrification of domestic heat in Great Britain," Working Papers EPRG2206, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    11. Picardo, Alberto & Soltero, Victor M. & Peralta, M. Estela & Chacartegui, Ricardo, 2019. "District heating based on biogas from wastewater treatment plant," Energy, Elsevier, vol. 180(C), pages 649-664.
    12. Pablo Carvallo, Juan & Bieler, Stephanie & Collins, Myles & Mueller, Joscha & Gehbauer, Christoph & Gotham, Douglas J. & Larsen, Peter H., 2021. "A framework to measure the technical, economic, and rate impacts of distributed solar, electric vehicles, and storage," Applied Energy, Elsevier, vol. 297(C).
    13. Johan Simonsson & Khalid Tourkey Atta & Gerald Schweiger & Wolfgang Birk, 2021. "Experiences from City-Scale Simulation of Thermal Grids," Resources, MDPI, vol. 10(2), pages 1-20, January.
    14. Erica Roccatello & Alessandro Prada & Paolo Baggio & Marco Baratieri, 2022. "Analysis of the Influence of Control Strategy and Heating Loads on the Performance of Hybrid Heat Pump Systems for Residential Buildings," Energies, MDPI, vol. 15(3), pages 1-19, January.
    15. Ehsan, Ali & Preece, Robin, 2022. "Quantifying the impacts of heat decarbonisation pathways on the future electricity and gas demand," Energy, Elsevier, vol. 254(PA).
    16. Wang, Jidong & Liu, Jianxin & Li, Chenghao & Zhou, Yue & Wu, Jianzhong, 2020. "Optimal scheduling of gas and electricity consumption in a smart home with a hybrid gas boiler and electric heating system," Energy, Elsevier, vol. 204(C).
    17. Gerard Mor & Jordi Cipriano & Eloi Gabaldon & Benedetto Grillone & Mariano Tur & Daniel Chemisana, 2021. "Data-Driven Virtual Replication of Thermostatically Controlled Domestic Heating Systems," Energies, MDPI, vol. 14(17), pages 1-25, September.
    18. De Mel, Ishanki & Klymenko, Oleksiy V. & Short, Michael, 2024. "Discrete optimal designs for distributed energy systems with nonconvex multiphase optimal power flow," Applied Energy, Elsevier, vol. 353(PB).
    19. Peng Fu & Danny Pudjianto & Xi Zhang & Goran Strbac, 2020. "Integration of Hydrogen into Multi-Energy Systems Optimisation," Energies, MDPI, vol. 13(7), pages 1-19, April.
    20. Aunedi, Marko & Yliruka, Maria & Dehghan, Shahab & Pantaleo, Antonio Marco & Shah, Nilay & Strbac, Goran, 2022. "Multi-model assessment of heat decarbonisation options in the UK using electricity and hydrogen," Renewable Energy, Elsevier, vol. 194(C), pages 1261-1276.
    21. Broad, Oliver & Hawker, Graeme & Dodds, Paul E., 2020. "Decarbonising the UK residential sector: The dependence of national abatement on flexible and local views of the future," Energy Policy, Elsevier, vol. 140(C).
    22. 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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