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Life Cycle Cost of Heat Supply to Areas with Detached Houses—A Comparison of District Heating and Heat Pumps from an Energy System Perspective

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  • Moa Swing Gustafsson

    (Energy Technology, Dalarna University, 791 88 Falun, Sweden
    Business, Society and Engineering, Mälardalen University, 721 23 Västerås, Sweden)

  • Jonn Are Myhren

    (Energy Technology, Dalarna University, 791 88 Falun, Sweden)

  • Erik Dotzauer

    (Business, Society and Engineering, Mälardalen University, 721 23 Västerås, Sweden)

Abstract

There are different views on whether district heating (DH) or heat pumps (HPs) is or are the best heating solution in order to reach a 100% renewable energy system. This article investigates the economic perspective, by calculating and comparing the energy system life cycle cost (LCC) for the two solutions in areas with detached houses. The LCC is calculated using Monte Carlo simulation, where all input data is varied according to predefined probability distributions. In addition to the parameter variations, 16 different scenarios are evaluated regarding the main fuel for the DH, the percentage of combined heat and power (CHP), the DH temperature level, and the type of electrical backup power. Although HP is the case with the lowest LCC for most of the scenarios, there are alternatives for each scenario in which either HP or DH has the lowest LCC. In alternative scenarios with additional electricity transmission costs, and a marginal cost perspective regarding the CHP investment, DH has the lowest LCC overall, taking into account all scenarios. The study concludes that the decision based on energy system economy on whether DH should expand into areas with detached houses must take local conditions into consideration.

Suggested Citation

  • Moa Swing Gustafsson & Jonn Are Myhren & Erik Dotzauer, 2018. "Life Cycle Cost of Heat Supply to Areas with Detached Houses—A Comparison of District Heating and Heat Pumps from an Energy System Perspective," Energies, MDPI, vol. 11(12), pages 1-17, November.
    • Handle: RePEc:gam:jeners:v:11:y:2018:i:12:p:3266-:d:185087
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    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. Rakesh Sinha & Birgitte Bak-Jensen & Jayakrishnan Radhakrishna Pillai, 2019. "Autonomous Controller for Flexible Operation of Heat Pumps in Low-Voltage Distribution Network," Energies, MDPI, vol. 12(8), pages 1-19, April.
    3. Nérot, B. & Lamaison, N. & Mabrouk, M.T. & Bavière, R. & Lacarrière, B., 2023. "Optimization framework for evaluating urban thermal systems potential," Energy, Elsevier, vol. 270(C).
    4. Moa Swing Gustafsson & Jonn Are Myhren & Erik Dotzauer & Marcus Gustafsson, 2019. "Life Cycle Cost of Building Energy Renovation Measures, Considering Future Energy Production Scenarios," Energies, MDPI, vol. 12(14), pages 1-15, July.

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