Economic and Energy Efficiency of Bivalent Heating Systems in a Retrofitted Hospital Building: A Case Study

This case study evaluates the economic and energy efficiency of retrofitting a hospital heating system in Krakow, Poland, by transitioning from a district-heating-only model to a bivalent hybrid system. The analyzed configuration integrates air-to-water heat pumps (HP), a 180 kWp photovoltaic (PV) installation, and a 120 kWh battery energy storage (ES) unit, while retaining the municipal district heating network as a peak load and backup source. Utilizing high-resolution quasi-steady-state simulations in Ebsilon Professional (10 min time step) and projected 2025 market data, the study compares three modernization scenarios differing in heat pump capacity (20, 40, and 60 kW). The assessment focuses on key performance indicators, including Net Present Value (NPV), Levelized Cost of Heating (LCOH), and Simple Payback Time (SPBT). The results identify the bivalent system with 40 kW thermal capacity (Variant 2) as the economic optimum, delivering the highest NPV (EUR 121,021), the lowest LCOH (0.0908 EUR/kWh), and a payback period of 11.94 years. Furthermore, the study quantitatively demonstrates the law of diminishing returns in the oversized scenario (60 kW), confirming that optimal sizing is critical for maximizing the efficiency of bivalent systems in public healthcare facilities. This work provides a detailed methodology and data that can form a basis for making investment decisions in similar public utility buildings in Central and Eastern Europe.