Achieving climate protection economically

The electrification of the heating sector is becoming increasingly important. If different technologies are cleverly combined here, economic efficiency and climate protection go hand in hand. In addition, the potential of a decentralized back-up system should be better exploited.

The transformation of the energy system is a generational task that will continue to pose major challenges for the economy and society in the future. The obligation to implement climate protection and energy efficiency measures in buildings has a history stretching back decades. For the most part, it has been supported by broad social acceptance. On the electricity side in particular, approval for the installation of wind power and photovoltaic systems has risen significantly in recent years. The transformation has progressed much less far on the heating side. While the electricity sector has been shining since 2023 with renewable energy shares of well over 50 percent, the heating sector has only just reached a good 18 percent.

Until now, the heating sector in Germany has been closely linked to the use of natural gas. That is currently changing. On the one hand, the use of natural gas is to be reduced for climate protection reasons. On the other hand, it has been called into question, at least since Russia's war of aggression against Ukraine. This is bringing other heating options into focus. For example, it is highly likely that the electrification of the heating sector, which is already underway, will be accelerated. In addition, the potential of geothermal energy will be further exploited. In recent years, various national and regional subsidy programs have also stimulated the expansion of renewable heating network infrastructure in Germany. So, is everything on track? Unfortunately, no.

Save costs

As successful as the energy transition has been in terms of electricity generation, it is proving to be just as complex in the heating sector. So far, successes in this area have mostly been limited to the private sector, explains Jörg Lösing, sales manager at CHP plant and heat pump manufacturer 2G Energy: "Home builders are generally no longer
interested in installing a gas boiler. The subsidy programs launched by the federal government have had the desired effect in this area." In contrast, many measures
in industry or municipal supply concepts are proving difficult. "Even more so than in the private sector, investment decisions in companies are made almost exclusively on the basis of economic calculations and expectations," says the sales manager. "For example, the use of a combined heat and power plant is now a matter of course for many industries, as the primary energy source is used with the highest possible efficiency. This results in considerable cost-saving potential in energy supply."

At 2G, the focus has always been on the future, emphasizes Lösing. "We have been pursuing the electrification of the heating sector for many years. It is no coincidence that we made a conscious decision in the summer of 2023 to add the large heat pump to our portfolio in order to be able to offer holistic energy solutions in line with market requirements." Production of the series began just a few months ago at the site in Heek in the Münsterland region. "Many projects show that the economic efficiency of CHP plants remains very high – even with rising CO2 emissions. Added to this is the increasing economic pressure on many industries. As a result, the affordability of energy supply is often given greater weight than climate protection issues." However, Lösing also makes it clear that 2G wants to use its broad product portfolio to demonstrate that it is the innovative combination of different technologies that is needed if the energy transition is to be a success in terms of climate policy and economics.

Decentralized backup potential

When it comes to cost-effective electrification of the heating sector, the availability of renewable energies is one of the key challenges. Heat pumps are mainly used in the fall and winter months. However, it is precisely during this time that photovoltaics are only available for a few hours. Nevertheless, there is a need for sufficient, secure, and, if possible, cost-effective renewable electricity in the grid. 

According to Lösing, the debate on how this requirement could be met is too one-sidedly focused on new gas-fired power plants. The advantages of a decentralized back-up system are often ignored. The author is the director of the Institute for Energy Economics and Energy Research (IEE) in Berlin.

"The first version of the Power Plant Security Act included a lower limit of 10 megawatts (MW) above which participation in power plant tenders should be possible. However, it is precisely in the power range significantly below 10 MW that there is great potential that could be tapped by a large number of smaller market participants in a very short time." According to the 2G sales manager, this includes not only traditional municipal CHP plants. The potential of the numerous biogas plants has also not been exploited to a satisfactory degree. "The adoption of the biomass package shortly before the end of the legislative period was an important signal in this regard."

CHP and heat pump

The major political guidelines can only be influenced to a limited extent. 2G therefore continues to focus on the development of technical solutions. Just recently, the company unveiled its GreenCube. This enables the electrification of the heating sector and residual load coverage on the electricity side to be optimally coordinated. Since the heat pump, CHP plant, and the associated plant control system are installed in a container, the GreenCube provides industry and energy suppliers with a turnkey solution for their own energy transition. The Green Cube is a modular system that can be expanded as needed. 

The operating mode is very simple, explains Jörg Lösing: "If there is sufficient renewable electricity in the grid, the heat pump runs. If not, the CHP plant kicks in, so that the lowest possible heat production costs can be guaranteed at all times." With each PV and wind power plant installed, the operating time of the CHP plant is expected to decrease. "Our goal is for the customer not to have to worry about how their plant is operated,“ concludes the 2G sales manager. ”And we want to enable them to achieve both economic efficiency and climate protection at the same time."

Source: stadt+werk