IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v234y2021ics036054422101450x.html
   My bibliography  Save this article

Business models combining heat pumps and district heating in buildings generate cost and emission savings

Author

Listed:
  • Lygnerud, Kristina
  • Ottosson, Jonas
  • Kensby, Johan
  • Johansson, Linnea

Abstract

There are currently several challenges facing the Swedish district heating (DH) industry. To address these challenges, new business models are needed. One such model involves the widespread use of Heat Pumps (HPs) in DH networks (DHN). However, HPs compete with other more conventional heat sources and their inclusion in DH business models is not yet common. In this study, efficiency gains impacting cost and CO2 emissions for HP inclusions are compared to the current state of affairs and different business model concepts are developed and discussed for a typology of DH systems.

Suggested Citation

  • Lygnerud, Kristina & Ottosson, Jonas & Kensby, Johan & Johansson, Linnea, 2021. "Business models combining heat pumps and district heating in buildings generate cost and emission savings," Energy, Elsevier, vol. 234(C).
    • Handle: RePEc:eee:energy:v:234:y:2021:i:c:s036054422101450x
    DOI: 10.1016/j.energy.2021.121202
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S036054422101450X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2021.121202?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. Popovski, Eftim & Aydemir, Ali & Fleiter, Tobias & Bellstädt, Daniel & Büchele, Richard & Steinbach, Jan, 2019. "The role and costs of large-scale heat pumps in decarbonising existing district heating networks – A case study for the city of Herten in Germany," Energy, Elsevier, vol. 180(C), pages 918-933.
    2. Jensen, Jonas K. & Ommen, Torben & Markussen, Wiebke B. & Elmegaard, Brian, 2017. "Design of serially connected district heating heat pumps utilising a geothermal heat source," Energy, Elsevier, vol. 137(C), pages 865-877.
    3. Romero Rodríguez, Laura & Brennenstuhl, Marcus & Yadack, Malcolm & Boch, Pirmin & Eicker, Ursula, 2019. "Heuristic optimization of clusters of heat pumps: A simulation and case study of residential frequency reserve," Applied Energy, Elsevier, vol. 233, pages 943-958.
    4. Lund, Henrik & Munster, Ebbe, 2006. "Integrated energy systems and local energy markets," Energy Policy, Elsevier, vol. 34(10), pages 1152-1160, July.
    5. Wolfgang Ulaga & Werner Reinartz, 2011. "Hybrid Offerings: How Manufacturing Firms Combine Goods and Services Successfully," Post-Print hal-00642039, HAL.
    6. Averfalk, Helge & Ingvarsson, Paul & Persson, Urban & Gong, Mei & Werner, Sven, 2017. "Large heat pumps in Swedish district heating systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 1275-1284.
    7. Kristina Lygnerud, 2019. "Business Model Changes in District Heating: The Impact of the Technology Shift from the Third to the Fourth Generation," Energies, MDPI, vol. 12(9), pages 1-16, May.
    8. Tomas Ekvall, 2020. "Attributional and Consequential Life Cycle Assessment," Chapters, in: Maria Jose Bastante-Ceca & Jose Luis Fuentes-Bargues & Levente Hufnagel & Florin-Constantin Mihai & (ed.), Sustainability Assessment at the 21st century, IntechOpen.
    9. 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.
    10. Arat, Halit & Arslan, Oguz, 2017. "Exergoeconomic analysis of district heating system boosted by the geothermal heat pump," Energy, Elsevier, vol. 119(C), pages 1159-1170.
    11. Stefan Schaltegger & Florian Lüdeke-Freund & Erik G. Hansen, 2012. "Business cases for sustainability: the role of business model innovation for corporate sustainability," International Journal of Innovation and Sustainable Development, Inderscience Enterprises Ltd, vol. 6(2), pages 95-119.
    12. Aste, Niccolò & Caputo, Paola & Del Pero, Claudio & Ferla, Giulio & Huerto-Cardenas, Harold Enrique & Leonforte, Fabrizio & Miglioli, Alessandro, 2020. "A renewable energy scenario for a new low carbon settlement in northern Italy: Biomass district heating coupled with heat pump and solar photovoltaic system," Energy, Elsevier, vol. 206(C).
    13. Liu, Wen & Klip, Diederik & Zappa, William & Jelles, Sytse & Kramer, Gert Jan & van den Broek, Machteld, 2019. "The marginal-cost pricing for a competitive wholesale district heating market: A case study in the Netherlands," Energy, Elsevier, vol. 189(C).
    14. Global Energy Assessment Writing Team,, 2012. "Global Energy Assessment," Cambridge Books, Cambridge University Press, number 9781107005198, October.
    15. Baeten, Brecht & Rogiers, Frederik & Helsen, Lieve, 2017. "Reduction of heat pump induced peak electricity use and required generation capacity through thermal energy storage and demand response," Applied Energy, Elsevier, vol. 195(C), pages 184-195.
    16. Zhang, Junli & Ge, Bin & Xu, Hongsheng, 2013. "An equivalent marginal cost-pricing model for the district heating market," Energy Policy, Elsevier, vol. 63(C), pages 1224-1232.
    17. Kontu, K. & Rinne, S. & Junnila, S., 2019. "Introducing modern heat pumps to existing district heating systems – Global lessons from viable decarbonizing of district heating in Finland," Energy, Elsevier, vol. 166(C), pages 862-870.
    18. Kindström, Daniel & Ottosson, Mikael, 2016. "Local and regional energy companies offering energy services: Key activities and implications for the business model," Applied Energy, Elsevier, vol. 171(C), pages 491-500.
    19. Steen, David & Stadler, Michael & Cardoso, Gonçalo & Groissböck, Markus & DeForest, Nicholas & Marnay, Chris, 2015. "Modeling of thermal storage systems in MILP distributed energy resource models," Applied Energy, Elsevier, vol. 137(C), pages 782-792.
    20. Judit OLÁH & József POPP & Domicián MÁTÉ, 2017. "An Examination Of Servitization As A Breakthrough Success Factor Along The Supply Chain," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 15, pages 373-379, December.
    21. Fischer, David & Madani, Hatef, 2017. "On heat pumps in smart grids: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 342-357.
    22. Global Energy Assessment Writing Team,, 2012. "Global Energy Assessment," Cambridge Books, Cambridge University Press, number 9780521182935, October.
    23. Terreros, O. & Spreitzhofer, J. & Basciotti, D. & Schmidt, R.R. & Esterl, T. & Pober, M. & Kerschbaumer, M. & Ziegler, M., 2020. "Electricity market options for heat pumps in rural district heating networks in Austria," Energy, Elsevier, vol. 196(C).
    24. Sjödin, Jörgen & Henning, Dag, 2004. "Calculating the marginal costs of a district-heating utility," Applied Energy, Elsevier, vol. 78(1), pages 1-18, May.
    25. Bertoldi, Paolo & Rezessy, Silvia & Vine, Edward, 2006. "Energy service companies in European countries: Current status and a strategy to foster their development," Energy Policy, Elsevier, vol. 34(14), pages 1818-1832, September.
    26. 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.
    27. Hedegaard, Karsten & Mathiesen, Brian Vad & Lund, Henrik & Heiselberg, Per, 2012. "Wind power integration using individual heat pumps – Analysis of different heat storage options," Energy, Elsevier, vol. 47(1), pages 284-293.
    28. Difs, Kristina & Trygg, Louise, 2009. "Pricing district heating by marginal cost," Energy Policy, Elsevier, vol. 37(2), pages 606-616, February.
    29. Hong, Jun & Johnstone, Cameron & Torriti, Jacopo & Leach, Matthew, 2012. "Discrete demand side control performance under dynamic building simulation: A heat pump application," Renewable Energy, Elsevier, vol. 39(1), pages 85-95.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Arghand, Taha & Javed, Saqib & Dalenbäck, Jan-Olof, 2023. "Combining direct ground cooling with ground-source heat pumps and district heating: Energy and economic analysis," Energy, Elsevier, vol. 270(C).
    2. Ryan, Erich & McDaniel, Benjamin & Kosanovic, Dragoljub, 2022. "Application of thermal energy storage with electrified heating and cooling in a cold climate," Applied Energy, Elsevier, vol. 328(C).
    3. Bartnik, Ryszard & Buryn, Zbigniew & Hnydiuk-Stefan, Anna & Kowalczyk, Tomasz, 2022. "Thermodynamic and economic comparative analyses of a hierarchic gas-gas combined heat and power (CHP) plant coupled with a compressor heat pump," Energy, Elsevier, vol. 244(PB).
    4. Pesola, Aki, 2023. "Cost-optimization model to design and operate hybrid heating systems – Case study of district heating system with decentralized heat pumps in Finland," Energy, Elsevier, vol. 281(C).
    5. Madurai Elavarasan, Rajvikram & Pugazhendhi, Rishi & Irfan, Muhammad & Mihet-Popa, Lucian & Khan, Irfan Ahmad & Campana, Pietro Elia, 2022. "State-of-the-art sustainable approaches for deeper decarbonization in Europe – An endowment to climate neutral vision," Renewable and Sustainable Energy Reviews, Elsevier, vol. 159(C).
    6. Mengting Jiang & Camilo Rindt & David M. J. Smeulders, 2022. "Optimal Planning of Future District Heating Systems—A Review," Energies, MDPI, vol. 15(19), pages 1-38, September.
    7. Siddique, Muhammad Bilal & Nielsen, Per Sieverts & Rosendal, Mathias Berg & Jensen, Ida Græsted & Keles, Dogan, 2023. "Impacts of earlier natural gas phase-out & heat-saving policies on district heating and the energy system," Energy Policy, Elsevier, vol. 174(C).
    8. Martina Capone & Elisa Guelpa & Vittorio Verda, 2023. "Optimal Installation of Heat Pumps in Large District Heating Networks," Energies, MDPI, vol. 16(3), pages 1-23, February.

    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. 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).
    2. 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.
    3. Lygnerud, Kristina & Yang, Ying, 2024. "Capturing flexibility gains by price models for district heating," Energy, Elsevier, vol. 294(C).
    4. Averfalk, Helge & Ingvarsson, Paul & Persson, Urban & Gong, Mei & Werner, Sven, 2017. "Large heat pumps in Swedish district heating systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 1275-1284.
    5. 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.
    6. 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).
    7. Dorotić, Hrvoje & Ban, Marko & Pukšec, Tomislav & Duić, Neven, 2020. "Impact of wind penetration in electricity markets on optimal power-to-heat capacities in a local district heating system," Renewable and Sustainable Energy Reviews, Elsevier, vol. 132(C).
    8. Moser, Simon & Puschnigg, Stefan & Rodin, Valerie, 2020. "Designing the Heat Merit Order to determine the value of industrial waste heat for district heating systems," Energy, Elsevier, vol. 200(C).
    9. Javanshir, Nima & Syri, Sanna & Tervo, Seela & Rosin, Argo, 2023. "Operation of district heat network in electricity and balancing markets with the power-to-heat sector coupling," Energy, Elsevier, vol. 266(C).
    10. Felten, Björn & Weber, Christoph, 2018. "The value(s) of flexible heat pumps – Assessment of technical and economic conditions," Applied Energy, Elsevier, vol. 228(C), pages 1292-1319.
    11. Danica Djurić Ilić, 2020. "Classification of Measures for Dealing with District Heating Load Variations—A Systematic Review," Energies, MDPI, vol. 14(1), pages 1-27, December.
    12. Mengting Jiang & Camilo Rindt & David M. J. Smeulders, 2022. "Optimal Planning of Future District Heating Systems—A Review," Energies, MDPI, vol. 15(19), pages 1-38, September.
    13. O’Dwyer, Edward & Pan, Indranil & Acha, Salvador & Shah, Nilay, 2019. "Smart energy systems for sustainable smart cities: Current developments, trends and future directions," Applied Energy, Elsevier, vol. 237(C), pages 581-597.
    14. Pieper, Henrik & Krupenski, Igor & Brix Markussen, Wiebke & Ommen, Torben & Siirde, Andres & Volkova, Anna, 2021. "Method of linear approximation of COP for heat pumps and chillers based on thermodynamic modelling and off-design operation," Energy, Elsevier, vol. 230(C).
    15. Johansson, Petter, 2021. "Heat pumps in Sweden – A historical review," Energy, Elsevier, vol. 229(C).
    16. Siddique, Muhammad Bilal & Nielsen, Per Sieverts & Rosendal, Mathias Berg & Jensen, Ida Græsted & Keles, Dogan, 2023. "Impacts of earlier natural gas phase-out & heat-saving policies on district heating and the energy system," Energy Policy, Elsevier, vol. 174(C).
    17. Meesenburg, Wiebke & Markussen, Wiebke Brix & Ommen, Torben & Elmegaard, Brian, 2020. "Optimizing control of two-stage ammonia heat pump for fast regulation of power uptake," Applied Energy, Elsevier, vol. 271(C).
    18. Li, Haoran & Hou, Juan & Hong, Tianzhen & Ding, Yuemin & Nord, Natasa, 2021. "Energy, economic, and environmental analysis of integration of thermal energy storage into district heating systems using waste heat from data centres," Energy, Elsevier, vol. 219(C).
    19. Aguilera, José Joaquín & Meesenburg, Wiebke & Ommen, Torben & Markussen, Wiebke Brix & Poulsen, Jonas Lundsted & Zühlsdorf, Benjamin & Elmegaard, Brian, 2022. "A review of common faults in large-scale heat pumps," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    20. Nick Eyre, 2013. "Decentralization of governance in the low-carbon transition," Chapters, in: Roger Fouquet (ed.), Handbook on Energy and Climate Change, chapter 27, pages 581-597, Edward Elgar Publishing.

    More about this item

    Keywords

    Heat pump; District heating; Business model; Cost; CO2;
    All these keywords.

    JEL classification:

    Statistics

    Access and download statistics

    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:energy:v:234:y:2021:i:c:s036054422101450x. 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.journals.elsevier.com/energy .

    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.