Cost comparison and optimization of gas electric hybrid heat pumps

The residential heating sector can offer significant load-shifting possibilities to the energy system. Currently 400,000 households in Denmark are heated by natural gas boilers. The power consumption corresponding to these boilers can offer high value to the stabilization of the wind intensive Danish energy system. Gas electric hybrid heat pumps (GEHHPs) are individual heat pumps consisting of an electric heat pump and a gas boiler. They enable a fully flexible operation of electric heat pumps by supplementing electricity with gas when necessary. In this paper, we construct a cost optimization model of a GEHHP and compare the levelized cost of heat of this system with other individual heating systems. We investigate the changes in the operation schedule of the GEHHP, both from a socio- and a private-economic perspective, and analyze how certain economic and technological framework conditions influence their operation schedule. Our article shows that the end-consumer's optimal operation schedule uses the gas boiler component of the GEHHP 24% of the time. Additionally, comparing the levelized cost of heat of the GEHHP with other heating alternatives proves that the GEHHP setup is the most cost efficient individual heating alternative. This article is categorized under: Energy Systems Analysis > Economics and Policy Energy Systems Economics > Economics and Policy Energy Systems Economics > Systems and Infrastructure