Gas condensing boiler, heat pumps, micro CHP, PV, fuel cells, and intelligent controls were analyzed for their potential to achieve long-term EU energy targets in residential dwellings. Heat pumps combined with PV and intelligent controls showed the highest potential to reduce CO2 emissions over the long term. Heat pumps on their own were also effective but saw greater savings when combined with other technologies. Financial support policies like feed-in tariffs were important for improving the operating costs and investment returns of renewable technologies.
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Methodology assumptions
3
And is based on following assumptions:
• Calculations take into account total energy consumption of the household (not only related to the
applied system). Heat load for new and existing dwellings and electricity consumption vary by country.
• Current level of financial support and Feed-in-tariffs is applied.
• Gas condensing boiler: primary efficiency 92%
• Micro CHP system: primary efficiency 90%. Average electricity production: 3000kWh per year. 50% of
generated electricity is used on site.
• Electric Heat Pump: A/W HP COP 2.9 - 3.5 in existing dwelling / COP 3.9 - 4.5 in new dwelling
• PV system: around 3kWp in all countries but Germany where larger system is more common (7kWp).
35% of electricity produced is for own consumption.
• SO FC: overall efficiency 95% (thermal efficiency 60%, electric efficiency 35%)
• PEM FC: overall efficiency 90% (thermal efficiency 53%, electric efficiency 37%)
• Energy and end user prices based on the first half of 2013.
Analysis has taken following products into consideration:
• Gas condensing boiler (as a base technology to be enhanced or replaced by renewable products),
Heat Pumps, mico CHP, PV (called established technologies),Fuel cells, intelligent controls
(called emerging technologies)
Has been carried out in: Germany, France, Italy, Poland, Spain, Sweden and UK
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Main EU heating markets -
background overview
Climatic condition
(average temperature)
Share of renewables
in final energy
consumption
Standard CO2
emission factor
(for consumed electricity)
Gas price
0.023
t CO2 /MWhe
0.624
t CO2 /MWhe
0.483
t CO2 /MWhe
0.440
t CO2 /MWhe
France Italy Spain PolandGermany UK Sweden
0.056
t CO2 /MWhe
Electricity price
€ 0.059 /
kWh
€ 0.14 /
kWh
€ 0.061/
kWh
€ 0.25 /
kWh
€ 0.068 /
kWh
€ 0.20 /
kWh
€ 0.041 /
kWh
€ 0.15 /
kWh
€ 0.121 /
kWh
€ 0.21 /
kWh
€ 0.047 /
kWh
€ 0.15 /
kWh
€ 0.057 /
kWh
€ 0.19 /
kWh
1.191
tCO2 /MWhe
0.543
t CO2 /MWhe
2010:7.9%
2020: 23%
2010:12.2%
2020: 18 %
2010:3.3%
2020: 15%
2010:10%
2020: 17%
2010:11.3%
2020: 20%
2010:7.5%
2020: 15%
2010:35.9%
2020: 49%
Between:
-3 - 7.5°C
Between
8.5 - 11°C
Between
11 - 19°C
Between
11 - 15°C
Between
7 - 10°C
Between
5 - 10°C
Between
14 - 19°C
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Summary of findings
5
• Electric technologies with the highest potential to achieve
reductions in CO2 emissions:
- Heat Pumps, Intelligent controls, PV, Fuel cells.
• Electric technologies offering the best savings to the end user (based on operating cost):
- PV installed with a heat pump (in countries where FiT are available)
• Electric technologies representing the best investment to the end user (based on lifetime
cost):
- PV and only in countries providing generous FiT can currently compete with gas
condensing boilers in terms of life time cost. High initial investment reduces efficiency
advantages in all other cases.
• Electric technologies eligible for continuous long term financial support:
- PV in Germany, France, UK
- Heat pumps in Sweden
• Market development:
- highly dependent on consistent and continuous financial support
- under increasing influence of energy prices
In comparison to the
high efficiency gas
condensing boiler
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Technologies with the highest potential
to achieve EU energy targets
Existing dwellings:
Electric Heat Pump
6
Intelligent controls
Fuel Cell
New dwellings:
Electric Heat Pump
Intelligent controls
Photovoltaic
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Annual CO2 emissions
for established technologies by country
8
Existing
dwellings
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Gas cond boiler
(GCB)
Heat pump (HP) micro CHP PV + GCB PV + HP
UK
Germany
France
Italy
Spain
Poland
Sweden
Micro CHP not
sold in Sweden
hence value = 0
Heat Pumps &
combination of
HP and PV
system is most
effective
kg CO2e / year
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CO2 emission savings - closer look
established technologies
9
Heat pump Heat pump &
PV system
Current standard
CO2 emission factor
for consummed
electricty
Poland
Germany / UK
Italy / Spain
France / Sweden
0.624 / 0.543
t CO2 /MWhe
0.056 / 0.023
t CO2 /MWhe
1.191
tCO2 /MWhe
0.483 / 0.440
t CO2 /MWhe
Increased CO2
emissions
Savings of CO2 emissions against stand alone gas condensing boiler:
High savings
(50%)
Low savings
(13% – 38%)
Medium savings
(47% - 23%)
Low savings
(6% - 17%)
Medium savings
(30% - 24%)
High savings
(90% - 96%)
Very low savings
(2% - 1%)
PV system provides additional:
Existing
dwellings
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-100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
Micro CHP
Electric Heat Pump
PV+GCB
PV+ HP
10
CO2 savings – long term prospect
established technologies
Heat pumps
are most
effective
% savings in CO2 emissions against GCB by technology, by country
Heat pumps are
most effective for
the decarbonized
grid future
Existing
dwellings
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-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
UK Germany France Italy Spain Poland Sweden
Heat pump (HP)
HP+HEMS+Int.Controls
SOFC
Gas cond boiler (GCB)
11
Existing
dwellings
Annual CO2 emissions for emerging technologies
by country - FC / Intelligent controls
kg CO2e / year
Fuel cells are very
effective in countries with
higher CO2 emission
factors.
HEMS and
Intelligent controls
added to HP are
most effective in
countries with heavy
CO2 electricity.
No FC in Sweden
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Recommended technologies
12
Recommended electric technologies to achieve the best carbon savings in the long
term approach (next 20 years):
Heat pumps
• Effective in reducing CO2 emissions as a replacement of gas condensing boiler today;
• Their positive impact on CO2 emission savings will keep increasing following decarbonization
process of the grid;
• Help reduce energy demand thanks to continually increasing efficiency;
• R&D towards development of intelligent HP will make them fit for becoming part of the smart
grid operational system.
• Can play a role of „energy storage“ in the future smart grid.
Intelligent controls
• Help enhance savings achieved by heat pumps
• Will add to the reduction of energy demand.
• Fuel cells
• Ideal replacement of GCB in countries with higher CO2 emission factor;
• Good alternative if heat pump cannot be installed.
• More flexible electricty generator as PV system; can be part of the smart grid in the future.
Existing
dwellings
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Annual operating cost
for established technologies by country
13
€uro
Existing
dwellings
-
500
1,000
1,500
2,000
2,500
Gas cond boiler (GCB)Heat pump (HP) micro CHP PV + GCB PV + HP
UK
Germany
France
Italy
Spain
Poland
Sweden
Micro CHP not
sold in Sweden
hence value = 0
Impact on operating cost:
• Energy prices
• Financial support:
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Savings in Operating Cost – performance
established technologies
14
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Micro CHP
Electric Heat Pump
PV+GCB
PV+ HP
Existing
dwellings
% savings in operating cost against GCB by technology, by country
(over 20 years)
• High electricity
prices are keeping
operating cost high
for Heat Pumps.
• Support by FiT
proves to be very
effective.
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Annual operating cost for emerging technologies
(FC / Intelligent Controls) by country
-
500
1,000
1,500
2,000
2,500
UK Germany France Italy Spain Poland Sweden
Heat pump (HP)
HP+HEMS+Int.Controls
SOFC
Gas cond boiler (GCB)
• Intelligent controls
reduce operating
cost and provide
competitive
advantage in
dwellings with Heat
Pumps.
• Thanks to its
electric
efficiency, operating
cost of a Fuel Cell is
well below the level
of gas condensing
boiler, providing FiT
(calculated at mCHP
level) are available.
Existing
dwellings
€uro / year
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Conclusions on operating cost potential
Fuel cells –
need further trials to
prove their
efficiency.
16
Heat Pumps -
need Feed-in-tariff
support to provide
competitive operation
cost against gas
condensing boiler.
Intelligent controls –
need information
campaign to make
customers aware of
their potential for
savings
Existing
dwellings
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Annual lifetime cost for established technologies
by country
17
€uro / year
-
500
1,000
1,500
2,000
2,500
3,000
Gas cond boiler
(GCB)
Heat pump (HP) micro CHP PV + GCB PV + HP
UK
Germany
France
Italy
Spain
Poland
Sweden
Micro CHP not
sold in Poland
hence value = 0
Existing
dwellings
18. 18
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-
500
1,000
1,500
2,000
2,500
3,000
UK Germany France Italy Spain Poland Sweden
Heat pump (HP)
HP+HEMS+Int.Controls
SOFC
Gas cond boiler (GCB)
Annual lifetime cost for emerging technologies
(FC / Intelligent Controls) by country
• Fuel Cell is
currently bearing
extremly high
investment cost
and showing
competitive level of
lifetime cost only
with high electricity
price and decent FiT
(Germany).
€uro / year
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Annual CO2 emissions
for established technologies by country
20
kg CO2e
New
dwellings
(1,000)
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Gas cond boiler
(GCB)
Heat pump (HP) micro CHP PV + GCB PV + HP
UK
Germany
France
Italy
Spain
Poland
Sweden
Micro CHP not
sold in Sweden
hence value = 0
Heat Pumps & a
combination of
HP and PV
system is most
effective
21. 21
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CO2 savings – long term prospect
established technologies
% savings in CO2 emissions against GCB by technology, by country
(over 20 years) Addition of a PV
system is effective in
countries with high
CO2 conversion
factor
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
140%
Micro CHP
Electric Heat Pump
PV+GCB
PV+ HP
Heat pumps are
most effective for
the decarbonized
grid future
New
dwellings
22. 22
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Annual CO2 emissions for emerging technologies
(FC / Intelligent controls) by country
kg CO2e
HP combined with
HEMS and Intelligent
controls bring best
savings in countries
with lower CO2
conversion factor..-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
UK Germany France Italy Spain Poland Sweden
Gas cond boiler (GCB)
Heat pump (HP)
HP+HEMS+Int.Controls
PEM Fc
No FC in
Sweden
New
dwellings
Fuel cells are effective in
countries with high CO2
conversion factor
(Germany, Poland).
23. 23
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Recommended technologies
23
Recommended electric technologies to achieve the best carbon savings in the long
term approach (next 20 years):
Heat pumps
• Effective in reducing CO2 emissions as a replacement of gas condensing boiler today;
• Their positive impact on CO2 emission savings will keep increasing following decarbonization
process of the grid;
• Help reduce energy demand thanks to continually increasing efficiency;
• R&D towards development of intelligent HP will make them fit for becoming part of the smart
grid operational system.
• Can play a role of „energy storage“ in the future smart grid.
Intelligent controls
• Help enhance savings achieved by heat pumps
• Will add to the reduction of energy demand.
• Photovoltaic
• Reduce CO2 emissions
• In dwellings with no gas connection the only way of own electricty generation;
• Combined with storage solutions they can be part of the smart grid in the future.
New
dwellings
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Annual operating cost
for established technologies by country
24
€uro
New
dwellings
(200)
-
200
400
600
800
1,000
1,200
Gas cond boiler
(GCB)
Heat pump (HP) micro CHP PV + GCB PV + HP
UK
Germany
France
Italy
Spain
Poland
Sweden
Micro CHP not
sold in Sweden
hence value = 0
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Savings in operating cost over 20 years –
established technologies
25
Savings in operating cost (over 20 years) when GCB is replaced or combined with electric renewable system
-20%
0%
20%
40%
60%
80%
100%
120%
140%
UK Germany France Italy Spain Poland Sweden
Micro CHP
Electric Heat Pump
PV+GCB
PV+ HP
FiT have biggest impact
on operating cost for PV
and micro CHP systems.
No FiT for HP in new
dwellings.
New
dwellings
26. 26
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Annual operating cost for emerging technologies
(FC / Intelligent Controls) by country
€uro
0
200
400
600
800
1000
1200
UK Germany France Italy Spain Poland Sweden
Gas cond boiler (GCB)
Heat pump (HP)
HP+HEMS+Int.Controls
PEM Fc
• Operating cost of a
Fuel Cell is below
the level of gas
condensing boiler
even when FiT is not
available
(Italy, Spain, Poland)
.
• Intelligent controls
reduce operating
cost to the higher
extent than in
existing dwellings.
New
dwellings
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Conclusions on operating cost potential
Photovoltaics
need storage battery
to develop in order
to achieve its full
potential.
27
Heat Pumps -
provide competitive
operation cost
against gas
condensing boiler
even without FiT.
Disadvantaged by
FiT available for PV
and micro CHP
Intelligent controls –
need information
campaign to make
customers aware of
their potential for
savings
New
dwellings
28. 28
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Annual lifetime cost for established technologies
by country
28
€uro
New
dwellings
-
500
1,000
1,500
2,000
2,500
Gas cond boiler
(GCB)
Heat pump (HP) micro CHP PV + GCB PV + HP
UK
Germany
France
Italy
Spain
Poland
Sweden
Micro CHP not
sold in Poland
hence value = 0
• High end user
price, lack of
financial support for
heat pump and high
electricity cost
make HP less
competitive than
gas cond. boiler.
29. 29
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€uro
Annual lifetime cost for emerging technologies
(FC / Intelligent Controls) by country
• Fuel Cell is
currently bearing
very high
investment cost
and due to lower
heat load producing
less electricity. Both
result in lifetime
cost not competitive
with HP and GCB.
-
500
1,000
1,500
2,000
2,500
UK Germany France Italy Spain Poland Sweden
Gas cond boiler (GCB)
Heat pump (HP)
HP+HEMS+Int.Controls
PEM Fc
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Summary
Offer high CO2 savings in new and existing dwellings on the long term.
30
Intelligent controls
Fuel Cell
Photovoltaic
Heat pumps
Their market adoption is highly dependent on:
Feed-in-tariffs Energy prices
Heat load
Product
efficiency
Following renewable technologies have been taken into consideration: electric heat pumps, micro CHP, PV (called “established technologies” across the presentation as well as fuel cells and intelligent controls (called emerging technologies across the presentation). They have been set against the high efficiency gas condensing boiler which was taken as base technology to be enhanced or replaced by renewable product.Among the assumptions the most important point is to understand that our calculations have taken into account total energy consumption of the household, not only related to the applied system. Product efficiency has been based on available info from manufacturers as well as from efficiency test programs carried out by various institutes in some European countries and BSRIA information. Different heat load has been assumed for existing and new dwellings in each countries. The average size of products/ systems applied in residential dwellings came from the research BSRIA WMI has carried out during the last 10 years on the European renewable markets.
For your information a brief overview of main factors that represent the background of the analysis. Our study has been looking at longer term perspective, with 2030 development in view. Not all of the analysed countries have a defined 2030 energy targets. However having the European Energy Roadmap 2050 in mind and targets adopted in some of the leading European countries we have assumed that the trend in the next 20 years will be to increase the share of RES in electricity production (63% of RES in electricity production in Germany, 15% RES in UK energy demand by 2020). The choice of technologies presented today is also in relation to this trend.
We have provided this analysis based on the level of incentives, energy prices, product efficiency and heat load that do not change over the next 20 years. It would certainly be interesting to know which of the above factors will have the biggest impact on future effectiveness of the systems and which will most significantly influence their sales potential. Should you be interested to become actively involved in the project please let us know promptly.