RENEWABLE POWER-TO-HEAT INNOVATION LANDSCAPE BRIEF © IRENA 2019
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ISBN 978-92-9260-144-7
Citation: IRENA (2019), Innovation landscape brief: Renewable power-to-heat, International Renewable Energy Agency, Abu Dhabi.
ACKNOWLEDGEMENTS This report was prepared by the Innovation team at IRENA with text authored by Francisco Boshell and Arina Anisie, with additional contributions and support by Harsh Kanani and Anusha Rajagopalan (KPMG India).
Valuable external review was provided by Thomas Nowak (European Heat Pump Association), Deger Saygin (SHURA Energy Transition Centre), Avi Brenmiller (Brenmiller Energy), Luisa Cabeza (University of Lleida) and Peter McPhee (Massachusetts Clean Energy Center), along with Martina Lyons, Nina Litman-Roventa and Paul Komor (IRENA).
Report available online: www.irena.org/publications For questions or to provide feedback: [email protected]
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The information contained herein does not necessarily represent the views of all Members of IRENA. The mention of specific companies or certain projects or products does not imply that they are endorsed or recommended by IRENA in preference to others of a similar nature that are not mentioned. The designations employed and the presentation of material herein do not imply the expression of any opinion on the part of IRENA concerning the legal status of any region, country, territory, city or area or of its authorities, or concerning the delimitation of frontiers or boundaries.
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This document does not represent the official position of IRENA on any particular topic. Rather, it is intended as a contribution to technical discussions on the promotion of renewable energy. RENEWABLE POWER-TO-HEAT www.irena.org
1 BENEFITS Converting solar and wind power to heat can help transform the power sector, increasing its flexibility:
Reducing VRE curtailment
Electric boilers Load shifting
Heat pumps Providing grid services Renewable energy sources Electricity Heating & Cooling via aggregators
2 KEY ENABLING FACTORS 3 SNAPSHOT Regulatory support ➜ Canada, China, Japan, the US and Europe (primarily Denmark, Germany, Sweden, Switzerland Incentives for renewable energy use in and the UK), all use power-to-heat buildings and industry ➜ The European Union met about 19% of it heading Market design that allows revenue stacking demand in 2018 with renewable sources ➜ Heat produced by heat pumps costs EUR 0.06–0.12/kWh ➜ The EcoGrid EU project in Denmark showed a significant peak load reduction when a heating system is managed smartly
WHAT IS POWER-TO-HEAT?
Heat pumps or boilers serve to convert electric power into efficient heating or cooling. Thermal storage systems enable flexible coupling of power and heat sectors.
RENEWABLE POWER-TO-HEAT
Electrifying the heating sector using renewables reduces fossil fuel consumption. Combined with smart load management, it increases flexibility in the power system. INNOVATION LANDSCAPE BRIEF ABOUT THIS BRIEF
his brief is part of the IRENA project “Innovation to create actual solutions. Solutions to drive the Tlandscape for a renewable-powered future”, uptake of solar and wind power span four broad which maps the relevant innovations, identifies the dimensions of innovation: enabling technologies, synergies and formulates solutions for integrating business models, market design and system high shares of variable renewable energy (VRE) operation. into power systems. Along with the synthesis report, the project The synthesis report, Innovation landscape for a includes a series of briefs, each covering one of renewable-powered future: Solutions to integrate 30 key innovations identified across those four variable renewables (IRENA, 2019), illustrates the dimensions. The 30 innovations are listed in the need for synergies among different innovations figure below.
INNOVATION DIMENSIONS
ENABLING TECHNOLOGIES BUSINESS MODELS MARKET DESIGN SYSTEM OPERATION
1 Utility scale batteries 12 Aggregators 17 Increasing time 25 Future role of distribution 2 Behind-the-meter 13 Peer-to-peer electricity granularity in electricity system operators batteries trading markets 26 Co-operation between 14 Energy-as-a-service 18 Increasing space transmission and 3 Electric-vehicle granularity in electricity distribution system smart charging 15 Community-ownership markets operators 4 Renewable models 19 Innovative ancillary power-to-heat 16 Pay-as-you-go models services 27 Advanced forecasting 5 Renewable of variable renewable 20 Re-designing capacity power-to-hydrogen markets power generation 28 Innovative operation 6 Internet of Things 21 Regional markets of pumped hydropower 7 Artificial intelligence 22 storage and big data 23 Market integration 8 Blockchain of distributed energy 29 Virtual power lines 30 Dynamic line rating 9 Renewable mini-grids resources 10 Supergrids 24 Net billing schemes
11 Flexibility in conventional power plants
4 RENEWABLE POWER-TO-HEAT
This brief provides an overview of renewable power-to-heat and its role in increasing the share The brief is structured as follows: of renewable energy in the building and industrial heating sectors. This brief focuses on the use I Description of renewable power-to-heat applications as an energy storage medium for VRE sources such II Contribution to power sector transformation as solar and wind as well as for providing grid- balancing services. III Key factors to enable deployment
IV Current status and examples of leading initiatives
V Implementation requirements: Checklist
5 INNOVATION LANDSCAPE BRIEF I. DESCRIPTION
eating and cooling applications are among produce heat via heat pump technology or electric Hthe largest consumers of energy. Industrial boilers. This brief focuses on the latter (i.e. using heating applications account for nearly 20% of electricity from renewable energy to generate global energy consumption, while space heating heat, also referred to as “renewable power-to- and cooling, and water heating in buildings, heat”) and how these electricity loads can be account for about 15% of global energy “smartly” used to increase the flexibility of power consumption (Bellevrat & West, 2018; Dulac, systems and facilitate greater shares of VRE. 2017; IEA, 2017a). More precise data for Europe indicates a total energy demand for heating Renewable power-to-heat refers to technologies and cooling of more than 6 000 terawatt-hours that use renewable electricity to generate useful (TWh), or 51% of the total energy demand (Heat heat 1 for buildings or industrial processes (i.e. via Roadmap Europe, 2017). heat pumps or electric boilers). Electric boilers use electricity to heat water, which is then circulated Although some countries use renewables and through pipes or disseminated with fan coils to waste to generate process heat for industries, provide space heating, or stored in hot water and solar thermal and geothermal systems tanks for later use. Heat pumps use electricity to to generate space heating and cooling, the transfer heat from the surrounding heat sources majority of heating needs are still met by fossil (air, water, ground) to buildings. Heat pumps can fuels. In the United States, over 60% of annual fulfil both heating and cooling requirements by heating and cooling requirements are met by using heat in the ambient air, water or ground as fossil fuel-based sources, such as natural gas, the primary source of energy and a small quantum propane and fuel oil. In Europe, around 75% of of auxiliary energy to drive the process. In 2016 annual heating and cooling requirements are there were 20 million heat pumps in the building met by fossil fuels, while only 19% is generated sector and 0.2 million in the industry sector. from renewable energy (EIA, 2018; European Commission, 2019a). According to IRENA analysis, heat pumps will play a critical role in the building sector and Some heating and virtually all cooling is electric. will increase to over 250 million units by 2050, Heat can be generated from renewable energy supplying 27% of the heat demand. In the industry sources in two ways: (a) by direct conversion sector, 80 million heat pumps will also be installed of renewable energy sources to heat (e.g. solar to meet similar low-temperature heat needs by thermal applications) and (b) by using electricity 2050 (IRENA, 2019b). generated from renewable energy sources to
1 “Useful heat” is defined as heat delivered to satisfy an economically justifiable demand for heating or cooling (Department of Energy & Climate Change, 2012).
6 RENEWABLE POWER-TO-HEAT
Typically, about 66–80% of the energy required by Electrification of the heating sector is feasible a heat pump is drawn from ambient sources; the in the short term as most of the required remaining 20–33% comes directly from electricity infrastructure is already in place and the (Nowak, 2018). The electricity requirement for electrical grid already reaches most demand heat pumps is low because it operates on the points: buildings, houses, commercial sites and principle of “heat transfer” (i.e. moving and industrial factories. Electricity from renewable upgrading heat from the external environment to sources can be delivered with the existing a specific area instead of generating heat directly infrastructure to (a) the final heat customers from electricity) (IRENA, IEA-ETSAP, 2013). The or (b) centralised heating production stations. coefficient of performance of a heat pump can However, in the event of a large-scale increase in be 3 to 5, meaning that the addition of 1 kilowatt electricity demand due to the production of heat (kW) of electric energy is needed to release from electricity, the transmission and distribution 3–5 kW of heat. This is essentially an efficiency network would probably need additional of 300–500%; in comparison, electric resistance investments to increase its capacity. Power-to- boilers have 100% efficiency and fossil fuel boilers heat systems can be centralised or decentralised have 75–95% efficiency. systems, as illustrated in Figure 1.
Figure 1: Types of heating systems that use electricity
CENTRALISED HEATING SYSTEMS DECENTRALISED HEATING SYSTEMS
ELECTRICITY HEAT NETWORK BUILDINGS NETWORK ire re i en ia e e ri ea ing