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Energies 2018, 11(12), 3266; https://doi.org/10.3390/en11123266

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

1
Energy Technology, Dalarna University, 791 88 Falun, Sweden
2
Business, Society and Engineering, Mälardalen University, 721 23 Västerås, Sweden
*
Author to whom correspondence should be addressed.
Received: 31 October 2018 / Revised: 14 November 2018 / Accepted: 20 November 2018 / Published: 23 November 2018
(This article belongs to the Special Issue District Heating)
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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. View Full-Text
Keywords: life cycle cost; energy system; district heating; combined heat and power; heat pump life cycle cost; energy system; district heating; combined heat and power; heat pump
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).
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Swing Gustafsson, M.; Myhren, J.A.; Dotzauer, E. 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 2018, 11, 3266.

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