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Annex A. Cost data for REHC options Various reference sources of cost data for REHC technologies were taken and converted into common units of capacity (Watt) and energy (Joule). Input and review was provided by the IEA Solar Heating and Cooling, Bioenergy and Geothermal Implementing Agreements. The aim was to use a consistent set of data inputs for the analysis: investment costs, fuel costs, operation and maintenance (O&M) costs, conversion efficiencies and annual yields. These inputs were then evaluated using a consistent set of assumptions of interest rates, auxiliary energy costs and plant lifetimes (Table A1). The technology-specific data are discussed below. From these input data and assumptions, the cost of providing heat energy from various systems was compared in terms of €/GJ based on a simple calculation method. In order to deal with uncertainties in the assumptions and in the technology parameters, data-ranges were used. The results are therefore presented as ranges and are to be interpreted as indicative only. Table A1 Overview of general assumptions used when calculating the cost of providing heat energy Auxiliary energy cost (electricity) €5 /MWh to €20 /MWh (average €15 /MWh) 121 Parameter Value Interest rate 5% to 15% (average 10%) Plant lifetimes: solar technologies 15 to 25 years (average 20 years) biomass technologies 10 to 20 years (average 15 years) geothermal technologies deep: 25 to 55 years (average 35 years) shallow: 20 to 30 years (average 25 years) For bioenergy and geothermal CHP technologies that deliver both heat and power, data only refer to the heating component. (Data referring to components for electricity production were allocated to electricity costs). For ground heat pumps that deliver both heating and cooling, the costs were allocated to either function. Any costs of heat distribution within a system (such as for district heating or for space heating) were not considered as it was assumed that the REHC source would simply displace the conventional energy source in an existing heating or cooling distribution system. For new build projects such as solar water heaters in new housing developments, or a new district heating system fuelled with biomass, the assumption was made that the heating system infrastructure would be paid for regardless. Only any additional REHC costs for investment, O&M, or fuel were accounted for. Avoided costs due to savings of technical components in a reference system have not been considered, nor savings due to avoided fuel use. The costs included all those relating to integration of the technology such as the pipes and plumbing costs for connecting a solar thermal system to an existing hot water distribution system or drilling the borehole for a ground-coupled heat pump, or installing a system ready for use by the consumer.PDF Image | RENEWABLES FOR HEATING AND COOLING
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