Strengthening the grid and peaking power plants drives down costs: annual reduction between €97,000 and €167,000 for each 17 TJ Ecovat Project

EcovatNews, Research

Consequences of the Ecovat system. A quantification of costs in comparison with all-electric, by Berenschot.

In the Netherlands about 90% of the houses is currently heated with natural gas. In line with the Paris agreement, the government has committed to reduce this to 0% before 2050. In addition, a stop has been announced regarding the extraction of natural gas in Groningen. There are various alternatives for gas-free heat supply, including Ecovat. For each district or house a guideline will be drawn up when it comes to choosing the best gas-free option.

Forgotten costs

In the cost comparison of gas-free alternatives generally only the local costs are included, such as the costs involved in housing adaptations and investment in a heat pump. These comparisons overlook important costs. Every choice on a constructional level has its consequences for the energy system that encompasses it. The consequences with respect to grid strengthening and peaking power plants are not part of the equation. This observation was also published in recent literature.

Research by Berenschot

To be able to make a complete comparison, Ecovat was curious to know what the avoided investments on a systems level, using an Ecovat, are. These avoided investments namely are not (yet) included as revenue in the business case. Over the last few years various reports have partly untangled this question, but none of them have been able to provide an exact answer to it. That is why Ecovat has requested Berenschot to quantify the consequences of the system.

Systems costs avoided by Ecovat

The impact of 66 PJ heat supplied by Ecovats for heating households that are connected to the energy system lies between €380 million and €650 million annually.

This is an annual saving of between €97,000 and €167,000 for each Ecovat project.

The reduction grows as electrification increases, which also results in a growing impact on the power grid.

In the report, along with the estimated annual costs you can find the reduction as converted into electrical units of measurement.

You can download the full report. For questions please contact Ruud van den Bosch, Technical Sales Manager.