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Fuel costs are a dominant factor in the total heating cost along with system investment costs. Increasing lifetime and fuel efficiency could yield a 4% to 6% cost reduction in the year 2030 (a decrease from €26 /GJ to €25 /GJ (range €7 to 95 /GJ) assuming constant fuel prices. Combusting wood chips for district heating is applied on a wider scale than are pellet burners. It can have higher investment costs but lower fuel prices. No separate cost overview is presented. The data overview was compiled by IEA Bioenergy Task32 (Biomass Combustion and Co-firing) (Koppejan, 2007) using Hansen (2006) and Hartmann (2003) as sources. A4. Biomass CHP heating Costs for biomass CHP heating systems are based on steam-turbine configurations (Obernberger, 2004). The data ranges have been mainly based on two plants in Denmark and in Austria. System sizes range from 12 to 14 MWth and costs exclude VAT. Table A5 Cost parameters for biomass CHP heating in 2005 (excluding VAT) with projections out to 2030* Data for base year 2005 Extrapolation to 2030 Minimum Average Maximum Unit Investment cost** 1 200 1 400 1 600 2005€/kWth 0% Share investment cost for heating 25 40 50 % 0% Conversion efficiency 10 18 40 % +10% Fuel cost 3 4 5 2005€/GJ 0% Auxiliary energy needed 0 0 0 kWhe/kW/yr +5% Cost of auxiliary energy 0.05 0.15 0.2 2005€/kWhe +25% O&M 1 1.5 2 2005€/kWth/yr 0% Full load hours heating 5 500 6 000 6 500 hrs/yr 0% Lifetime 10 15 20 yr +20% Interest rate 5 10 15 %/yr +10% Investment heat-related Annuity Annual investment payment Annual auxiliary energy cost Annual O&M cost Fuel input 300 560 800 8.0 13.1 19.9 24 74 159 0 0 0 1 1.5 2 50 120 234 2005€/kWth %/yr 2005€/kWth/yr 2005€/kWth/yr 2005€/kWth/yr GJinput/kWth/yr 127 Total energy cost - investment 1 3 8 2005€/GJ -51% to +90% - fuel 6 22 59 2005€/GJ -9% - auxiliary energy 0 0 0 2005€/GJ 0% - O&M 0 0 0 2005€/GJ 0% Total 7 26 67 2005€/GJ -14% to +5% *Covers worldwide systems for the base year 2005, and projected relative differences by 2030. Neither a reference system nor avoided costs due to fuel savings are incorporated. Installation costs are included but heat distribution costs and costs allocated to electricity generation are not. ** Investment costs are defined here as total investment relative to thermal output of CHP plant. Fuel costs are a very dominant factor of total costs. Increasing fuel efficiency could result in a 9% cost reduction in the year 2030, assuming constant fuel prices. The overall cost of heat could change from €26 /GJ in 2005 to €24 /GJ by 2030 (range €8 to 58 /GJ). Output data Intermediate Input data resultsPDF Image | RENEWABLES FOR HEATING AND COOLING
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