IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v270y2020ics0306261920306462.html
   My bibliography  Save this article

Coupling the heating and power sectors: The role of centralised combined heat and power plants and district heat in a European decarbonised power system

Author

Listed:
  • Jimenez-Navarro, Juan-Pablo
  • Kavvadias, Konstantinos
  • Filippidou, Faidra
  • Pavičević, Matija
  • Quoilin, Sylvain

Abstract

This work examines the role of centralised cogeneration plants as one of the potential pathways of a future decarbonised energy system. Even in this context, thermal power plants will still exist and the utilisation of their excess heat via district heating networks can assist the decarbonisation of the built environment. In particular, the potential of existing thermal power plants to operate as combined heat and power (CHP) plants is assessed and their impact on the power system quantified. To do so, the European heat demand for the built environment is described, focused on the heat demand supplied with fossil fuels, and the European power sector is discussed. Then, a power system model (Dispa-SET) is used to evaluate this coupling pathway in terms of operating costs, efficiencies and associated CO2 emissions. The analysis is developed for the current and future European power system. Results show that the conversion of thermal into CHP plants increases the efficiency and reduces both the operating costs and the environmental impact of the energy system. Not only that, it also offers alternative flexibility options when coupled with thermal storage. Still, large investments regarding the deployment of thermal networks are required to leverage the full CHP potential.

Suggested Citation

  • Jimenez-Navarro, Juan-Pablo & Kavvadias, Konstantinos & Filippidou, Faidra & Pavičević, Matija & Quoilin, Sylvain, 2020. "Coupling the heating and power sectors: The role of centralised combined heat and power plants and district heat in a European decarbonised power system," Applied Energy, Elsevier, vol. 270(C).
    • Handle: RePEc:eee:appene:v:270:y:2020:i:c:s0306261920306462
    DOI: 10.1016/j.apenergy.2020.115134
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261920306462
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2020.115134?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Imelda & Matthias Fripp & Michael J. Roberts, 2018. "Variable Pricing and the Cost of Renewable Energy," NBER Working Papers 24712, National Bureau of Economic Research, Inc.
    2. Li, Jinghua & Fang, Jiakun & Zeng, Qing & Chen, Zhe, 2016. "Optimal operation of the integrated electrical and heating systems to accommodate the intermittent renewable sources," Applied Energy, Elsevier, vol. 167(C), pages 244-254.
    3. Connolly, D. & Lund, H. & Mathiesen, B.V., 2016. "Smart Energy Europe: The technical and economic impact of one potential 100% renewable energy scenario for the European Union," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 1634-1653.
    4. Dennis L Buchanan & Mark H. A. Davis, 2018. "Metals and Energy Project Appraisal and Finance," World Scientific Book Chapters, in: Metals and Energy Finance Application of Quantitative Finance Techniques to the Evaluation of Minerals, Coal and Petroleum Projects, chapter 8, pages 159-187, World Scientific Publishing Co. Pte. Ltd..
    5. Pavičević, Matija & Kavvadias, Konstantinos & Pukšec, Tomislav & Quoilin, Sylvain, 2019. "Comparison of different model formulations for modelling future power systems with high shares of renewables – The Dispa-SET Balkans model," Applied Energy, Elsevier, vol. 252(C), pages 1-1.
    6. Arteconi, Alessia & Patteeuw, Dieter & Bruninx, Kenneth & Delarue, Erik & D’haeseleer, William & Helsen, Lieve, 2016. "Active demand response with electric heating systems: Impact of market penetration," Applied Energy, Elsevier, vol. 177(C), pages 636-648.
    7. Henning, Hans-Martin & Palzer, Andreas, 2014. "A comprehensive model for the German electricity and heat sector in a future energy system with a dominant contribution from renewable energy technologies—Part I: Methodology," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 1003-1018.
    8. Wang, Haichao & Yin, Wusong & Abdollahi, Elnaz & Lahdelma, Risto & Jiao, Wenling, 2015. "Modelling and optimization of CHP based district heating system with renewable energy production and energy storage," Applied Energy, Elsevier, vol. 159(C), pages 401-421.
    9. Bloess, Andreas, 2019. "Impacts of heat sector transformation on Germany’s power system through increased use of power-to-heat," Applied Energy, Elsevier, vol. 239(C), pages 560-580.
    10. Persson, Urban & Werner, Sven, 2011. "Heat distribution and the future competitiveness of district heating," Applied Energy, Elsevier, vol. 88(3), pages 568-576, March.
    11. Rinne, S. & Syri, S., 2015. "The possibilities of combined heat and power production balancing large amounts of wind power in Finland," Energy, Elsevier, vol. 82(C), pages 1034-1046.
    12. Lund, H. & Möller, B. & Mathiesen, B.V. & Dyrelund, A., 2010. "The role of district heating in future renewable energy systems," Energy, Elsevier, vol. 35(3), pages 1381-1390.
    13. Lund, Henrik & Østergaard, Poul Alberg & Chang, Miguel & Werner, Sven & Svendsen, Svend & Sorknæs, Peter & Thorsen, Jan Eric & Hvelplund, Frede & Mortensen, Bent Ole Gram & Mathiesen, Brian Vad & Boje, 2018. "The status of 4th generation district heating: Research and results," Energy, Elsevier, vol. 164(C), pages 147-159.
    14. Heinen, Steve & Burke, Daniel & O'Malley, Mark, 2016. "Electricity, gas, heat integration via residential hybrid heating technologies – An investment model assessment," Energy, Elsevier, vol. 109(C), pages 906-919.
    15. Grohnheit, Poul Erik, 1993. "Modelling CHP within a national power system," Energy Policy, Elsevier, vol. 21(4), pages 418-429, April.
    16. Averfalk, Helge & Werner, Sven, 2020. "Economic benefits of fourth generation district heating," Energy, Elsevier, vol. 193(C).
    17. Ren, Hongbo & Gao, Weijun, 2010. "A MILP model for integrated plan and evaluation of distributed energy systems," Applied Energy, Elsevier, vol. 87(3), pages 1001-1014, March.
    18. Bach, Bjarne & Werling, Jesper & Ommen, Torben & Münster, Marie & Morales, Juan M. & Elmegaard, Brian, 2016. "Integration of large-scale heat pumps in the district heating systems of Greater Copenhagen," Energy, Elsevier, vol. 107(C), pages 321-334.
    19. Christidis, Andreas & Koch, Christoph & Pottel, Lothar & Tsatsaronis, George, 2012. "The contribution of heat storage to the profitable operation of combined heat and power plants in liberalized electricity markets," Energy, Elsevier, vol. 41(1), pages 75-82.
    20. Lund, Peter D. & Lindgren, Juuso & Mikkola, Jani & Salpakari, Jyri, 2015. "Review of energy system flexibility measures to enable high levels of variable renewable electricity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 785-807.
    21. Jiménez Navarro, Juan Pablo & Kavvadias, Konstantinos C. & Quoilin, Sylvain & Zucker, Andreas, 2018. "The joint effect of centralised cogeneration plants and thermal storage on the efficiency and cost of the power system," Energy, Elsevier, vol. 149(C), pages 535-549.
    22. Alberg Østergaard, Poul & Mathiesen, Brian Vad & Möller, Bernd & Lund, Henrik, 2010. "A renewable energy scenario for Aalborg Municipality based on low-temperature geothermal heat, wind power and biomass," Energy, Elsevier, vol. 35(12), pages 4892-4901.
    23. Silvente, Javier & Papageorgiou, Lazaros G., 2017. "An MILP formulation for the optimal management of microgrids with task interruptions," Applied Energy, Elsevier, vol. 206(C), pages 1131-1146.
    24. Kirkerud, Jon Gustav & Bolkesjø, Torjus Folsland & Trømborg, Erik, 2017. "Power-to-heat as a flexibility measure for integration of renewable energy," Energy, Elsevier, vol. 128(C), pages 776-784.
    25. Palzer, Andreas & Henning, Hans-Martin, 2014. "A comprehensive model for the German electricity and heat sector in a future energy system with a dominant contribution from renewable energy technologies – Part II: Results," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 1019-1034.
    26. Verbruggen, Aviel & Dewallef, Pierre & Quoilin, Sylvain & Wiggin, Michael, 2013. "Unveiling the mystery of Combined Heat & Power (cogeneration)," Energy, Elsevier, vol. 61(C), pages 575-582.
    27. Imelda & Matthias Fripp & Michael J. Roberts, 2024. "Real-Time Pricing and the Cost of Clean Power," American Economic Journal: Economic Policy, American Economic Association, vol. 16(4), pages 100-141, November.
    28. Levihn, Fabian, 2017. "CHP and heat pumps to balance renewable power production: Lessons from the district heating network in Stockholm," Energy, Elsevier, vol. 137(C), pages 670-678.
    29. Lowe, Robert, 2011. "Combined heat and power considered as a virtual steam cycle heat pump," Energy Policy, Elsevier, vol. 39(9), pages 5528-5534, September.
    30. de Sisternes, Fernando J. & Jenkins, Jesse D. & Botterud, Audun, 2016. "The value of energy storage in decarbonizing the electricity sector," Applied Energy, Elsevier, vol. 175(C), pages 368-379.
    31. Bloess, Andreas & Schill, Wolf-Peter & Zerrahn, Alexander, 2018. "Power-to-heat for renewable energy integration: A review of technologies, modeling approaches, and flexibility potentials," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 212, pages 1611-1626.
    32. Lund, Henrik & Østergaard, Poul Alberg & Connolly, David & Mathiesen, Brian Vad, 2017. "Smart energy and smart energy systems," Energy, Elsevier, vol. 137(C), pages 556-565.
    33. Guelpa, Elisa & Verda, Vittorio, 2019. "Thermal energy storage in district heating and cooling systems: A review," Applied Energy, Elsevier, vol. 252(C), pages 1-1.
    34. Lund, Henrik & Werner, Sven & Wiltshire, Robin & Svendsen, Svend & Thorsen, Jan Eric & Hvelplund, Frede & Mathiesen, Brian Vad, 2014. "4th Generation District Heating (4GDH)," Energy, Elsevier, vol. 68(C), pages 1-11.
    35. Buffa, Simone & Cozzini, Marco & D’Antoni, Matteo & Baratieri, Marco & Fedrizzi, Roberto, 2019. "5th generation district heating and cooling systems: A review of existing cases in Europe," Renewable and Sustainable Energy Reviews, Elsevier, vol. 104(C), pages 504-522.
    36. Böttger, Diana & Götz, Mario & Theofilidi, Myrto & Bruckner, Thomas, 2015. "Control power provision with power-to-heat plants in systems with high shares of renewable energy sources – An illustrative analysis for Germany based on the use of electric boilers in district heatin," Energy, Elsevier, vol. 82(C), pages 157-167.
    37. Kimon Keramidas & Stephane Tchung-Ming & Ana Raquel Diaz-Vazquez & Matthias Weitzel & Toon Vandyck & Jacques Despres & Andreas Schmitz & Luis Rey Los Santos & Krzysztof Wojtowicz & Burkhard Schade & B, 2018. "Global Energy and Climate Outlook 2018: Sectoral mitigation options towards a low-emissions economy," JRC Research Reports JRC113446, Joint Research Centre.
    38. Schweiger, Gerald & Rantzer, Jonatan & Ericsson, Karin & Lauenburg, Patrick, 2017. "The potential of power-to-heat in Swedish district heating systems," Energy, Elsevier, vol. 137(C), pages 661-669.
    39. Werner, Sven, 2017. "International review of district heating and cooling," Energy, Elsevier, vol. 137(C), pages 617-631.
    40. Kavvadias, Konstantinos C. & Quoilin, Sylvain, 2018. "Exploiting waste heat potential by long distance heat transmission: Design considerations and techno-economic assessment," Applied Energy, Elsevier, vol. 216(C), pages 452-465.
    41. Østergaard, Poul Alberg & Lund, Henrik, 2011. "A renewable energy system in Frederikshavn using low-temperature geothermal energy for district heating," Applied Energy, Elsevier, vol. 88(2), pages 479-487, February.
    42. Richard S.J. Tol, 2018. "Energy and Climate," Working Paper Series 1618, Department of Economics, University of Sussex Business School.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bloess, Andreas & Schill, Wolf-Peter & Zerrahn, Alexander, 2018. "Power-to-heat for renewable energy integration: A review of technologies, modeling approaches, and flexibility potentials," Applied Energy, Elsevier, vol. 212(C), pages 1611-1626.
    2. Bloess, Andreas & Schill, Wolf-Peter & Zerrahn, Alexander, 2018. "Power-to-heat for renewable energy integration: A review of technologies, modeling approaches, and flexibility potentials," Applied Energy, Elsevier, vol. 212(C), pages 1611-1626.
    3. Østergaard, P.A. & Lund, H. & Thellufsen, J.Z. & Sorknæs, P. & Mathiesen, B.V., 2022. "Review and validation of EnergyPLAN," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    4. 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).
    5. Jiménez Navarro, Juan Pablo & Kavvadias, Konstantinos C. & Quoilin, Sylvain & Zucker, Andreas, 2018. "The joint effect of centralised cogeneration plants and thermal storage on the efficiency and cost of the power system," Energy, Elsevier, vol. 149(C), pages 535-549.
    6. Rämä, Miika & Wahlroos, Mikko, 2018. "Introduction of new decentralised renewable heat supply in an existing district heating system," Energy, Elsevier, vol. 154(C), pages 68-79.
    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. Meibodi, Saleh S. & Loveridge, Fleur, 2022. "The future role of energy geostructures in fifth generation district heating and cooling networks," Energy, Elsevier, vol. 240(C).
    9. Brown, T. & Schlachtberger, D. & Kies, A. & Schramm, S. & Greiner, M., 2018. "Synergies of sector coupling and transmission reinforcement in a cost-optimised, highly renewable European energy system," Energy, Elsevier, vol. 160(C), pages 720-739.
    10. Cynthia Boysen & Cord Kaldemeyer & Simon Hilpert & Ilja Tuschy, 2019. "Integration of Flow Temperatures in Unit Commitment Models of Future District Heating Systems," Energies, MDPI, vol. 12(6), pages 1-19, March.
    11. Guelpa, Elisa & Bischi, Aldo & Verda, Vittorio & Chertkov, Michael & Lund, Henrik, 2019. "Towards future infrastructures for sustainable multi-energy systems: A review," Energy, Elsevier, vol. 184(C), pages 2-21.
    12. 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).
    13. 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.
    14. Schill, Wolf-Peter & Zerrahn, Alexander, 2020. "Flexible electricity use for heating in markets with renewable energy," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 266.
    15. Guelpa, Elisa & Verda, Vittorio, 2020. "Automatic fouling detection in district heating substations: Methodology and tests," Applied Energy, Elsevier, vol. 258(C).
    16. Hansen, Kenneth & Breyer, Christian & Lund, Henrik, 2019. "Status and perspectives on 100% renewable energy systems," Energy, Elsevier, vol. 175(C), pages 471-480.
    17. Pardo-Bosch, Francesc & Blanco, Ana & Mendoza, Nora & Libreros, Bibiana & Tejedor, Blanca & Pujadas, Pablo, 2023. "Sustainable deployment of energy efficient district heating: city business model," Energy Policy, Elsevier, vol. 181(C).
    18. Dorotić, Hrvoje & Pukšec, Tomislav & Schneider, Daniel Rolph & Duić, Neven, 2021. "Evaluation of district heating with regard to individual systems – Importance of carbon and cost allocation in cogeneration units," Energy, Elsevier, vol. 221(C).
    19. Md. Nasimul Islam Maruf, 2019. "Sector Coupling in the North Sea Region—A Review on the Energy System Modelling Perspective," Energies, MDPI, vol. 12(22), pages 1-35, November.
    20. Lund, Henrik & Duic, Neven & Østergaard, Poul Alberg & Mathiesen, Brian Vad, 2018. "Future district heating systems and technologies: On the role of smart energy systems and 4th generation district heating," Energy, Elsevier, vol. 165(PA), pages 614-619.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:270:y:2020:i:c:s0306261920306462. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.