02 May 2022
by ReUseHeat Project

ReUseHeat calculation tool for levelised cost of heat

The ReUseHeat project used the levelized cost of heat estimations for calculating each heating solution across the different demo sites.

The tool is intended to examine whether Low-Temperature DH is cost-effective and competitive compared to high-temperature DH and individual heating technologies. This analysis compares the levelized cost of heat (LCOH) estimations calculated for each heating solution in Germany, Spain and France. LCOH is calculated with an Excel-based calculation tool which is you can download and use it for your calculations.

The overall outcome of the analysis is that connecting a house to a LTDH system is competitive for the homeowner when compared to the high-temperature DH connection or individual heating solutions. The LTDH connection was found to be the cheapest heating option in Spain and Germany, with the LCOH estimations being 67 €/MWh and 75 €/MWh, respectively. In France, the LCOH of the low-temperature DH connection is noticeably higher at 89 €/MWh, due to noticeably high capacity-fees applied to DH consumers.

The results also show that natural gas-fired boilers are the main competitors to DH connections. The LCOH estimations calculated for air-to-water and brine-to-water heat pumps (HP) options show that these technologies will result in higher expenses for the household owner than the DH and natural gas heating options (again not in France). Electric boilers have the highest LCOH in all of the countries due to the high expenses of electricity purchase and taxes. More information is available in the ReUseHeat Handbook.