How Heat-Powered Heat Pumps Could Reduce the Need for Grid-Scale Energy Storage

This paper explores how the deployment of “High-Performance Heat-Powered Heat Pumps” (HP3s)—a novel heating technology—could help meet the domestic heating demand in the UK and reduce how much grid-scale energy storage is needed in comparison to a scenario where electrical heat pumps fully supply the heating demand. HP3 systems can produce electricity, which can partially alleviate the stress caused by electrical heat pumps. A parametric analysis focusing on two variables, the penetration of HP3 systems (H) and the amount of electricity exported (Ɛ), is presented. For every combination of H and Ɛ, the electricity system is optimized to minimize the cost of electricity. Three parameters define the electricity system: the generation mix, the energy storage mix and the amount of over-generation. The cost of electricity is at its highest when electrical heat pumps supply all demand. This reduces as the penetration of HP3 systems increases due to a reduction in the need for energy storage. When HP3 systems supply 100% of the heating demand, the total cost of electricity and the storage capacity needed are 6% and 50% lower, respectively, compared to a scenario where electrical heat pumps are in 100% of residences.