scholarly journals Price and Income Elasticities of Residential Heat Demand from District Heating System: A Price Sensitivity Measurement Experiment in South Korea

2021 ◽  
Vol 13 (13) ◽  
pp. 7242
Author(s):  
Seul-Ye Lim ◽  
Jeoung-Sik Min ◽  
Seung-Hoon Yoo

Since the price for residential heat (RH) from district heating system in South Korea is regulated by the government rather than being freely determined in the market, it is difficult to estimate the demand function for RH properly using the distorted market data. Thus, undistorted data on price and demand are required in obtaining the demand function. This article tries to estimate the demand function for RH by applying the price sensitivity measurement (PSM) technique, with some variation, and then use this to obtain information about the price and income elasticities. To this end, in the PSM survey 1000 households were first asked about their consumption of RH and their expenditure on that consumption and then asked about how much they would lower their demand for RH in response to four hypothetical increases in the price for RH (10%, 20%, 50%, and 100%). Thus, five sets of price and consumption of RH were available for each household. The demand function for RH was estimated using a total of 5000 observations. The price and income elasticities were estimated with statistical significance to be about −0.478 and 0.033, respectively. These values can be utilized in decision-making and/or policy-making related to RH management.

2020 ◽  
Vol 10 (15) ◽  
pp. 5037
Author(s):  
Ju-Hee Kim ◽  
Sin-Young Kim ◽  
Seung-Hoon Yoo

When South Korea develops a new city, the government has made a preliminary decision on one of two heating systems, an individual heating system (IHS) or a district heating system (DHS). However, it is still unclear which system is desirable in terms of maximizing the national economic effect. Thus, this article aims to derive quantitative information about the economic effects of the same amount of production or investment in the two systems through an input-output (IO) analysis using the recently published 2017 IO table. More specifically, the production-inducing effects, value-added creation effects, and wage-inducing effects are systematically analyzed focusing on the IHS and DHS sectors. The results show that one dollar of production or investment in IHS or DHS causes about 1.073 and 1.388 dollars of production, about 0.228 and 0.658 dollars of value-added, and about 0.051 and 0.108 dollars in wages, respectively, throughout the national economy. Overall, the economic effects of the DHS sector are greater than those of the IHS sector. That is, when the same amount of investment or production is made in the two sectors, DHS produces more economic effects than IHS.


Energies ◽  
2021 ◽  
Vol 14 (11) ◽  
pp. 3218
Author(s):  
Pedro Durán ◽  
Herena Torio ◽  
Patrik Schönfeldt ◽  
Peter Klement ◽  
Benedikt Hanke ◽  
...  

There are 1454 district heating systems in Germany. Most of them are fossil based and with high temperature levels, which is neither efficient nor sustainable and needs to be changed for reaching the 2050 climate goals. In this paper, we present a case study for transforming a high to low temperature district heating system which is more suitable for renewable energy supply. With the Carnot Toolbox, a dynamic model of a potential district heating system is simulated and then transformed to a low temperature supply. A sensitivity analysis is carried out to see the system performance in case space constrains restrict the transformation. Finally, an economic comparison is performed. Results show that it is technically possible to perform the transformation until a very low temperature system. The use of decentralized renewable sources, decentralized heat storage tanks and the placement of a heat pump on each building are the key points to achieve the transformation. Regarding the sensitivity analysis, the transformation is worth doing until the seasonal storage and solar collector field sizes are reduced to 60% and 80% of their values in the reference case, respectively. The economic analysis shows, however, that it is hard for highly efficient low temperature renewable based heat networks to compete with district heating systems based on a centralized fossile CHP solution. Thus, though the presented transformation is technically possible, there is a strong need to change existing economic schemes and policies for fostering a stronger promotion of renewable energy policies in the heat sector.


2021 ◽  
pp. 110998
Author(s):  
Jiancai Song ◽  
Liyi Zhang ◽  
Guixiang Xue ◽  
YunPeng Ma ◽  
Shan Gao ◽  
...  

Energies ◽  
2021 ◽  
Vol 14 (9) ◽  
pp. 2347
Author(s):  
Elżbieta Hałaj ◽  
Jarosław Kotyza ◽  
Marek Hajto ◽  
Grzegorz Pełka ◽  
Wojciech Luboń ◽  
...  

Krakow has an extensive district heating network, which is approximately 900 km long. It is the second largest city in terms of the number of inhabitants in Poland, resulting in a high demand for energy—for both heating and cooling. The district heating of the city is based on coal. The paper presents the conception of using the available renewable sources to integrate them into the city’s heating system, increasing the flexibility of the system and its decentralization. An innovative solution of the use of hybrid, modular heat pumps with power dependent on the needs of customers in a given location and combining them with geothermal waters and photovoltaics is presented. The potential of deep geothermal waters is based on two reservoirs built of carbonate rocks, namely Devonian and Upper Jurassic, which mainly consist of dolomite and limestone. The theoretical potential of water intake equal to the nominal heating capacity of a geothermal installation is estimated at 3.3 and 2.0 MW, respectively. Shallow geothermal energy potential varies within the city, reflecting the complex geological structure of the city. Apart from typical borehole heat exchangers (BHEs), the shallower water levels may represent a significant potential source for both heating and cooling by means of water heat pumps. For the heating network, it has been proposed to use modular heat pumps with hybrid sources, which will allow for the flexible development of the network in places previously unavailable or unprofitable. In the case of balancing production and demand, a photovoltaic installation can be an effective and sufficient source of electricity that will cover the annual electricity demand generated by the heat pump installation, when it is used for both heating and cooling. The alternating demand of facilities for heating and cooling energy, caused by changes in the seasons, suggests potential for using seasonal cold and heat storage.


Energies ◽  
2021 ◽  
Vol 14 (11) ◽  
pp. 3350
Author(s):  
Theofanis Benakopoulos ◽  
William Vergo ◽  
Michele Tunzi ◽  
Robbe Salenbien ◽  
Svend Svendsen

The operation of typical domestic hot water (DHW) systems with a storage tank and circulation loop, according to the regulations for hygiene and comfort, results in a significant heat demand at high operating temperatures that leads to high return temperatures to the district heating system. This article presents the potential for the low-temperature operation of new DHW solutions based on energy balance calculations and some tests in real buildings. The main results are three recommended solutions depending on combinations of the following three criteria: district heating supply temperature, relative circulation heat loss due to the use of hot water, and the existence of a low-temperature space heating system. The first solution, based on a heating power limitation in DHW tanks, with a safety functionality, may secure the required DHW temperature at all times, resulting in the limited heating power of the tank, extended reheating periods, and a DH return temperature of below 30 °C. The second solution, based on the redirection of the return flow from the DHW system to the low-temperature space heating system, can cool the return temperature to the level of the space heating system return temperature below 35 °C. The third solution, based on the use of a micro-booster heat pump system, can deliver circulation heat loss and result in a low return temperature below 35 °C. These solutions can help in the transition to low-temperature district heating.


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