Improving district heat sustainability and competitiveness with heat pumps in the future Nordic energy system

Abstract

District heating (DH) in Nordic countries largely relies on efficient large-scale combined heat and power (CHP) production. The currently low electricity market price has diminished the economic competitiveness of CHP production. Production of DH increasingly happens in thermal heat-only boilers, increasing long-term environmental impacts. An alternative is the use of large-scale heat pumps (LHPs). Utilization of LHPs in hours of low electricity price could be economically advantageous to producers, reduce carbon emissions from burning fuels, and aid in balancing the production and consumption of electricity in a future energy system where electricity production from variable renewable energy is increasing rapidly.