Impacts of residential energy efficiency and electrification of heating on energy market prices

Research output: Contribution to conferencePaper

Abstract

The decarbonisation of the energy system is attracting the attention of policy makers worldwide, with many measures targeting the residential sector. It is expected that emission reduction targets will bring changes on the energy system, such as energy conservation measures and the electrification of heating (in a context where the electric sector is mainly decarbonised). However, the changes on electricity prices due to the electrification of heating have been scarcely addressed in the literature. This paper presents an assessment of the impact on electricity prices produced by the decarbonisation of heating and energy efficiency in the residential sector. A linear programming problem is used to find the optimal planning and operation of electric heating and residential loads, following a price-maker approach. Then, the potential cost changes for residential consumers and the impacts on electricity prices in the wholesale day-ahead market are estimated
considering different residential electric heating profiles and energy conservation scenarios.
Following an explanation of the method, a discussion of results is presented, considering how the electrification of heating change the energy price curves and the policy implications of these findings. In addition, it is discussed how the optimal operation of heating systems with energy conservation technologies and thermal storage could mitigate the cost increase of these changes on the energy system.

Conference

Conference15th IAEE European Conference 2017
CountryAustria
CityVienna
Period3/09/176/09/17
Internet address

Fingerprint

Energy efficiency
Heating
Decarbonization
Electric heating
Energy conservation
Electricity
Linear programming
Costs
Market price
Energy market
Planning
Electricity price
Energy systems

Keywords

  • electrification of heating
  • energy efficiency
  • energy markets
  • energy system models

Cite this

@conference{4bb27b947562442eb219638736886280,
title = "Impacts of residential energy efficiency and electrification of heating on energy market prices",
abstract = "The decarbonisation of the energy system is attracting the attention of policy makers worldwide, with many measures targeting the residential sector. It is expected that emission reduction targets will bring changes on the energy system, such as energy conservation measures and the electrification of heating (in a context where the electric sector is mainly decarbonised). However, the changes on electricity prices due to the electrification of heating have been scarcely addressed in the literature. This paper presents an assessment of the impact on electricity prices produced by the decarbonisation of heating and energy efficiency in the residential sector. A linear programming problem is used to find the optimal planning and operation of electric heating and residential loads, following a price-maker approach. Then, the potential cost changes for residential consumers and the impacts on electricity prices in the wholesale day-ahead market are estimatedconsidering different residential electric heating profiles and energy conservation scenarios.Following an explanation of the method, a discussion of results is presented, considering how the electrification of heating change the energy price curves and the policy implications of these findings. In addition, it is discussed how the optimal operation of heating systems with energy conservation technologies and thermal storage could mitigate the cost increase of these changes on the energy system.",
keywords = "electrification of heating, energy efficiency, energy markets, energy system models",
author = "Calvillo, {Christian F.} and Karen Turner and Keith Bell and Peter McGregor",
year = "2017",
month = "9",
day = "7",
language = "English",
note = "15th IAEE European Conference 2017 : Heading Towards Sustainable Energy Systems : Evolution or Revoluation? ; Conference date: 03-09-2017 Through 06-09-2017",
url = "https://www.aaee.at/iaee2017/",

}

Calvillo, CF, Turner, K, Bell, K & McGregor, P 2017, 'Impacts of residential energy efficiency and electrification of heating on energy market prices' Paper presented at 15th IAEE European Conference 2017, Vienna , Austria, 3/09/17 - 6/09/17, .

Impacts of residential energy efficiency and electrification of heating on energy market prices. / Calvillo, Christian F.; Turner, Karen; Bell, Keith; McGregor, Peter.

2017. Paper presented at 15th IAEE European Conference 2017, Vienna , Austria.

Research output: Contribution to conferencePaper

TY - CONF

T1 - Impacts of residential energy efficiency and electrification of heating on energy market prices

AU - Calvillo, Christian F.

AU - Turner, Karen

AU - Bell, Keith

AU - McGregor, Peter

PY - 2017/9/7

Y1 - 2017/9/7

N2 - The decarbonisation of the energy system is attracting the attention of policy makers worldwide, with many measures targeting the residential sector. It is expected that emission reduction targets will bring changes on the energy system, such as energy conservation measures and the electrification of heating (in a context where the electric sector is mainly decarbonised). However, the changes on electricity prices due to the electrification of heating have been scarcely addressed in the literature. This paper presents an assessment of the impact on electricity prices produced by the decarbonisation of heating and energy efficiency in the residential sector. A linear programming problem is used to find the optimal planning and operation of electric heating and residential loads, following a price-maker approach. Then, the potential cost changes for residential consumers and the impacts on electricity prices in the wholesale day-ahead market are estimatedconsidering different residential electric heating profiles and energy conservation scenarios.Following an explanation of the method, a discussion of results is presented, considering how the electrification of heating change the energy price curves and the policy implications of these findings. In addition, it is discussed how the optimal operation of heating systems with energy conservation technologies and thermal storage could mitigate the cost increase of these changes on the energy system.

AB - The decarbonisation of the energy system is attracting the attention of policy makers worldwide, with many measures targeting the residential sector. It is expected that emission reduction targets will bring changes on the energy system, such as energy conservation measures and the electrification of heating (in a context where the electric sector is mainly decarbonised). However, the changes on electricity prices due to the electrification of heating have been scarcely addressed in the literature. This paper presents an assessment of the impact on electricity prices produced by the decarbonisation of heating and energy efficiency in the residential sector. A linear programming problem is used to find the optimal planning and operation of electric heating and residential loads, following a price-maker approach. Then, the potential cost changes for residential consumers and the impacts on electricity prices in the wholesale day-ahead market are estimatedconsidering different residential electric heating profiles and energy conservation scenarios.Following an explanation of the method, a discussion of results is presented, considering how the electrification of heating change the energy price curves and the policy implications of these findings. In addition, it is discussed how the optimal operation of heating systems with energy conservation technologies and thermal storage could mitigate the cost increase of these changes on the energy system.

KW - electrification of heating

KW - energy efficiency

KW - energy markets

KW - energy system models

UR - https://www.aaee.at/iaee2017/

M3 - Paper

ER -