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Cost-efficient decarbonization of local energy systems by whole-system based design optimization

Author

Listed:
  • Jing, Rui
  • Hua, Weiqi
  • Lin, Jian
  • Lin, Jianyi
  • Zhao, Yingru
  • Zhou, Yue
  • Wu, Jianzhong

Abstract

On the way toward Net Zero 2050, the UK government set the 2035 target by slashing 78 % emissions compared to the 1990-level. To help understand how an electrified local energy system could contribute to this target and the associated cost, we develop a whole-system based local energy optimization (LEO) model. The model captures a series of state-of-the-art technologies including building fabric retrofit, battery storage, electro-mobility, electro-heating, demand response, distributed renewable, and Peer-to-Peer (P2P) energy trading. And the model enables trade-off assessment between cost and emissions minimization, compares two system operating modes, i.e., cost-oriented and grid-impact-oriented, and evaluates the impacts from weather risks and capital cost assumptions. A case study in Wales reveals (1) capital cost assumptions can lead up to 30.8 % overall cost difference of the local energy system; (2) operating the system in cost-oriented mode can save up to 5 % cost than in the grid-impact-oriented mode; (3) electro-heating by heat pumps has the highest priority among all investigated technologies. Overall, this study demonstrates how to design and operate a cost-efficient and electrified UK local energy system by the whole-system incorporation of near-term technical and business model advances towards a decarbonized future.

Suggested Citation

  • Jing, Rui & Hua, Weiqi & Lin, Jian & Lin, Jianyi & Zhao, Yingru & Zhou, Yue & Wu, Jianzhong, 2022. "Cost-efficient decarbonization of local energy systems by whole-system based design optimization," Applied Energy, Elsevier, vol. 326(C).
  • Handle: RePEc:eee:appene:v:326:y:2022:i:c:s0306261922011783
    DOI: 10.1016/j.apenergy.2022.119921
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    6. Zhang, Shufan & Zhou, Nan & Feng, Wei & Ma, Minda & Xiang, Xiwang & You, Kairui, 2023. "Pathway for decarbonizing residential building operations in the US and China beyond the mid-century," Applied Energy, Elsevier, vol. 342(C).

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