Abstract
Ground source heat pumps (GSHPs) have been suggested to replace gas-based heating in urban environments to reduce greenhouse gas emissions and help to comply with the Paris Agreement. The emission reduction from GSHP depends on the carbon intensity of the electricity generation mix. Moreover, grid capacity may be limiting the introduction of these high-electricity demand GSHP systems. Photovoltaics (PV) systems help to provide additional emission reductions for residential GSHP systems. Battery energy storage systems can reduce the peak demand and allow for more GSHPs within the low voltage grid. We developed a techno-economic and environmental assessment model to quantify this impact of PV and batteries combined with residential GSHP systems. Measured demand data of 16 dwellings with GSHP and PV systems from the Netherlands were used. We show that PV can provide around 19% of the GSHP demand, while batteries enhance this by 53% and reduce the peak demand by 45%. Greenhouse gas emission of a GSHP with PV is reduced on average with 73 tCO2-eq, corresponding to a 80% reduction, over a 30-year lifetime. Dwellings with only a GSHP system have a net present values increase of around € 275 per tCO2-eq of avoided emission. This is reduced to € 230 per tCO2-eq when PV and storage is added to the system. Nevertheless, investment in GSHP systems today is not economically attractive for many dwellings. A sensitivity analysis showed that policies should focus on increasing natural gas tariffs, carbon taxation, investment subsidies or combinations of these routes to encourage sustainable heating.
Highlights
In the European Union (EU), around half of the buildings are provided with heat by fossil fuel boilers with an efficiency of 60% or lower and were installed before 1992 [1]
We present a broader integrated techno-economic and environmental impact for residential dwellings with a Ground source heat pump systems (GSHPs) combined with PV and battery energy storage system (BESS)
These results show that BESS have a large potential in enabling more GSHP and PV systems on existing low voltage grids
Summary
In the European Union (EU), around half of the buildings are provided with heat by fossil fuel boilers with an efficiency of 60% or lower and were installed before 1992 [1]. In line with the Paris Agreement, the Dutch government has set ambitious goals to phase out gas boilers by 2050 and replace them with other technologies to provide heat [4]. GSHPs generate heat from electricity with high efficiencies and are seen as best available technology, especially in combination with renewable sources [1]. GSHPs can deliver flexibility such as demand response services to the electricity system [10]. These advantages led to policies that support investments in GSHPs. For example, in the USA a tax credit of 30% of GSHP investment costs presently exists [11]. In the USA, over 560,000 units were installed by the end of 2014 [14]
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