IDEAS home Printed from https://ideas.repec.org/p/diw/diwwpp/dp1769.html
   My bibliography  Save this paper

Flexible Electricity Use for Heating in Markets with Renewable Energy

Author

Listed:
  • Wolf-Peter Schill
  • Alexander Zerrahn

Abstract

Using electricity for heating can contribute to decarbonization and provide flexibility to integrate variable renewable energy. We analyze the case of electric storage heaters in German 2030 scenarios with an open-source electricity sector model. Making customary night-time storage heaters temporally more flexible offers only moderate benefits because renewable availability during daytime is limited in the heating season. As storage heaters feature only short-term heat storage, they also cannot reconcile the seasonal mismatch of heat demand in winter and high renewable availability in summer. Generally, flexible electric heaters increase the use of generation technologies with low variable costs, which are not necessarily renewables.

Suggested Citation

  • Wolf-Peter Schill & Alexander Zerrahn, 2018. "Flexible Electricity Use for Heating in Markets with Renewable Energy," Discussion Papers of DIW Berlin 1769, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwwpp:dp1769
    as

    Download full text from publisher

    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.617157.de/dp1769.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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.
    2. Felten, Björn & Raasch, Jessica & Weber, Christoph, 2018. "Photovoltaics and heat pumps - Limitations of local pricing mechanisms," Energy Economics, Elsevier, vol. 71(C), pages 383-402.
    3. Hlavinka, Alexander N. & Mjelde, James W. & Dharmasena, Senarath & Holland, Christine, 2016. "Forecasting the adoption of residential ductless heat pumps," Energy Economics, Elsevier, vol. 54(C), pages 60-67.
    4. 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.
    5. Gils, Hans Christian, 2014. "Assessment of the theoretical demand response potential in Europe," Energy, Elsevier, vol. 67(C), pages 1-18.
    6. Kiviluoma, Juha & Meibom, Peter, 2010. "Influence of wind power, plug-in electric vehicles, and heat storages on power system investments," Energy, Elsevier, vol. 35(3), pages 1244-1255.
    7. Wiese, Frauke & Schlecht, Ingmar & Bunke, Wolf-Dieter & Gerbaulet, Clemens & Hirth, Lion & Jahn, Martin & Kunz, Friedrich & Lorenz, Casimir & Mühlenpfordt, Jonathan & Reimann, Juliane & Schill, Wolf-P, 2019. "Open Power System Data – Frictionless data for electricity system modelling," Applied Energy, Elsevier, vol. 236(C), pages 401-409.
    8. Patteeuw, Dieter & Bruninx, Kenneth & Arteconi, Alessia & Delarue, Erik & D’haeseleer, William & Helsen, Lieve, 2015. "Integrated modeling of active demand response with electric heating systems coupled to thermal energy storage systems," Applied Energy, Elsevier, vol. 151(C), pages 306-319.
    9. Patteeuw, Dieter & Reynders, Glenn & Bruninx, Kenneth & Protopapadaki, Christina & Delarue, Erik & D’haeseleer, William & Saelens, Dirk & Helsen, Lieve, 2015. "CO2-abatement cost of residential heat pumps with active demand response: demand- and supply-side effects," Applied Energy, Elsevier, vol. 156(C), pages 490-501.
    10. Michelsen, Carl Christian & Madlener, Reinhard, 2012. "Homeowners' preferences for adopting innovative residential heating systems: A discrete choice analysis for Germany," Energy Economics, Elsevier, vol. 34(5), pages 1271-1283.
    11. Pensini, Alessandro & Rasmussen, Claus N. & Kempton, Willett, 2014. "Economic analysis of using excess renewable electricity to displace heating fuels," Applied Energy, Elsevier, vol. 131(C), pages 530-543.
    12. Zerrahn, Alexander & Schill, Wolf-Peter & Kemfert, Claudia, 2018. "On the economics of electrical storage for variable renewable energy sources," European Economic Review, Elsevier, vol. 108(C), pages 259-279.
    13. Schill, Wolf-Peter & Gerbaulet, Clemens, 2015. "Power system impacts of electric vehicles in Germany: Charging with coal or renewables?," Applied Energy, Elsevier, vol. 156(C), pages 185-196.
    14. Zerrahn, Alexander & Schill, Wolf-Peter, 2017. "Long-run power storage requirements for high shares of renewables: review and a new model," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 1518-1534.
    15. Runge, Philipp & Sölch, Christian & Albert, Jakob & Wasserscheid, Peter & Zöttl, Gregor & Grimm, Veronika, 2019. "Economic comparison of different electric fuels for energy scenarios in 2035," Applied Energy, Elsevier, vol. 233, pages 1078-1093.
    16. 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.
    17. Dodds, Paul E., 2014. "Integrating housing stock and energy system models as a strategy to improve heat decarbonisation assessments," Applied Energy, Elsevier, vol. 132(C), pages 358-369.
    18. 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.
    19. 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.
    20. Waite, Michael & Modi, Vijay, 2014. "Potential for increased wind-generated electricity utilization using heat pumps in urban areas," Applied Energy, Elsevier, vol. 135(C), pages 634-642.
    21. Broberg, Thomas & Persson, Lars, 2016. "Is our everyday comfort for sale? Preferences for demand management on the electricity market," Energy Economics, Elsevier, vol. 54(C), pages 24-32.
    22. Wilson, Charlie & Hargreaves, Tom & Hauxwell-Baldwin, Richard, 2017. "Benefits and risks of smart home technologies," Energy Policy, Elsevier, vol. 103(C), pages 72-83.
    23. 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.
    24. 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.
    25. Barton, John & Huang, Sikai & Infield, David & Leach, Matthew & Ogunkunle, Damiete & Torriti, Jacopo & Thomson, Murray, 2013. "The evolution of electricity demand and the role for demand side participation, in buildings and transport," Energy Policy, Elsevier, vol. 52(C), pages 85-102.
    26. Hedegaard, Karsten & Balyk, Olexandr, 2013. "Energy system investment model incorporating heat pumps with thermal storage in buildings and buffer tanks," Energy, Elsevier, vol. 63(C), pages 356-365.
    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. Löffler, Konstantin & Burandt, Thorsten & Hainsch, Karlo & Oei, Pao-Yu & Seehaus, Frederik & Wejda, Felix, 2022. "Chances and barriers for Germany's low carbon transition - Quantifying uncertainties in key influential factors," Energy, Elsevier, vol. 239(PA).
    2. Clerjon, Arthur & Perdu, Fabien, 2022. "Matching intermittent electricity supply and demand with electricity storage - An optimization based on a time scale analysis," Energy, Elsevier, vol. 241(C).
    3. Gils, Hans Christian & Gardian, Hedda & Kittel, Martin & Schill, Wolf-Peter & Zerrahn, Alexander & Murmann, Alexander & Launer, Jann & Fehler, Alexander & Gaumnitz, Felix & van Ouwerkerk, Jonas & Bußa, 2022. "Modeling flexibility in energy systems — comparison of power sector models based on simplified test cases," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    4. Dai, Yuanhang & Hao, Junhong & Wang, Xingce & Chen, Lei & Chen, Qun & Du, Xiaoze, 2022. "A comprehensive model and its optimal dispatch of an integrated electrical-thermal system with multiple heat sources," Energy, Elsevier, vol. 261(PA).
    5. Xiaoyi Zhang & Weijun Gao & Yanxue Li & Zixuan Wang & Yoshiaki Ushifusa & Yingjun Ruan, 2021. "Operational Performance and Load Flexibility Analysis of Japanese Zero Energy House," IJERPH, MDPI, vol. 18(13), pages 1-19, June.
    6. Kirchem, Dana & Schill, Wolf-Peter, 2023. "Power sector effects of green hydrogen production in Germany," Energy Policy, Elsevier, vol. 182(C).
    7. Göke, Leonard & Weibezahn, Jens & Kendziorski, Mario, 2023. "How flexible electrification can integrate fluctuating renewables," Energy, Elsevier, vol. 278(PA).
    8. 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).
    9. 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.
    10. Morales-España, Germán & Martínez-Gordón, Rafael & Sijm, Jos, 2022. "Classifying and modelling demand response in power systems," Energy, Elsevier, vol. 242(C).
    11. Matthias Pazold & Jan Radon & Matthias Kersken & Hartwig Künzel & Florian Antretter & Herbert Sinnesbichler, 2023. "Development and Verification of Novel Building Integrated Thermal Storage System Models," Energies, MDPI, vol. 16(6), pages 1-21, March.
    12. Alexander Roth & Carlos Gaete-Morales & Dana Kirchem & Wolf-Peter Schill, 2023. "Power sector benefits of flexible heat pumps," Papers 2307.12918, arXiv.org, revised Oct 2024.
    13. Stöckl, Fabian & Schill, Wolf-Peter & Zerrahn, Alexander, 2021. "Optimal supply chains and power sector benefits of green hydrogen," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 11.
    14. Sheha, Moataz & Mohammadi, Kasra & Powell, Kody, 2021. "Techno-economic analysis of the impact of dynamic electricity prices on solar penetration in a smart grid environment with distributed energy storage," Applied Energy, Elsevier, vol. 282(PA).
    15. Dongxiao Niu & Tian Gao & Zhengsen Ji & Yujing Liu & Gengqi Wu, 2021. "Analysis of the Efficiency of Provincial Electricity Substitution in China Based on a Three-Stage DEA Model," Energies, MDPI, vol. 14(20), pages 1-17, October.
    16. Heffron, Raphael & Körner, Marc-Fabian & Wagner, Jonathan & Weibelzahl, Martin & Fridgen, Gilbert, 2020. "Industrial demand-side flexibility: A key element of a just energy transition and industrial development," Applied Energy, Elsevier, vol. 269(C).

    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. 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.
    4. Ruhnau, Oliver & Hirth, Lion & Praktiknjo, Aaron, 2020. "Heating with wind: Economics of heat pumps and variable renewables," Energy Economics, Elsevier, vol. 92(C).
    5. 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).
    6. 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).
    7. Gerbaulet, Clemens & von Hirschhausen, Christian & Kemfert, Claudia & Lorenz, Casimir & Oei, Pao-Yu, 2019. "European electricity sector decarbonization under different levels of foresight," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 141, pages 973-987.
    8. Topi Rasku & Juha Kiviluoma, 2018. "A Comparison of Widespread Flexible Residential Electric Heating and Energy Efficiency in a Future Nordic Power System," Energies, MDPI, vol. 12(1), pages 1-27, December.
    9. Chiara Magni & Alessia Arteconi & Konstantinos Kavvadias & Sylvain Quoilin, 2020. "Modelling the Integration of Residential Heat Demand and Demand Response in Power Systems with High Shares of Renewables," Energies, MDPI, vol. 13(24), pages 1-19, December.
    10. Simon Hilpert, 2020. "Effects of Decentral Heat Pump Operation on Electricity Storage Requirements in Germany," Energies, MDPI, vol. 13(11), pages 1-19, June.
    11. Bartholdsen, Hans-Karl & Eidens, Anna & Löffler, Konstantin & Seehaus, Frederik & Wejda, Felix & Burandt, Thorsten & Oei, Pao-Yu & Kemfert, Claudia & Hirschhausen, Christian von, 2019. "Pathways for Germany's Low-Carbon Energy Transformation Towards 2050," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 12(15), pages 1-33.
    12. 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.
    13. Vijay, Avinash & Hawkes, Adam, 2019. "Demand side flexibility from residential heating to absorb surplus renewables in low carbon futures," Renewable Energy, Elsevier, vol. 138(C), pages 598-609.
    14. 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).
    15. Singh Gaur, Ankita & Fitiwi, Desta & Curtis, John, 2019. "Heat pumps and their role in decarbonising heating Sector: a comprehensive review," Papers WP627, Economic and Social Research Institute (ESRI).
    16. 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.
    17. Javier L'opez Prol & Wolf-Peter Schill, 2020. "The Economics of Variable Renewables and Electricity Storage," Papers 2012.15371, arXiv.org.
    18. Fodstad, Marte & Crespo del Granado, Pedro & Hellemo, Lars & Knudsen, Brage Rugstad & Pisciella, Paolo & Silvast, Antti & Bordin, Chiara & Schmidt, Sarah & Straus, Julian, 2022. "Next frontiers in energy system modelling: A review on challenges and the state of the art," Renewable and Sustainable Energy Reviews, Elsevier, vol. 160(C).
    19. Rinaldi, Arthur & Soini, Martin Christoph & Streicher, Kai & Patel, Martin K. & Parra, David, 2021. "Decarbonising heat with optimal PV and storage investments: A detailed sector coupling modelling framework with flexible heat pump operation," Applied Energy, Elsevier, vol. 282(PB).
    20. Oluleye, Gbemi & Allison, John & Hawker, Graeme & Kelly, Nick & Hawkes, Adam D., 2018. "A two-step optimization model for quantifying the flexibility potential of power-to-heat systems in dwellings," Applied Energy, Elsevier, vol. 228(C), pages 215-228.

    More about this item

    Keywords

    Power-to-heat; renewable energy; electricity sector; power system model; flexibility; storage;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:diw:diwwpp:dp1769. 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: Bibliothek (email available below). General contact details of provider: https://edirc.repec.org/data/diwbede.html .

    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.