Potential market opportunities for using thermal inertia in the building envelope together with heat pumps in a demand response solution
The aim of this master thesis is to evaluate the market potential for using thermal inertia in the building envelope together with heat pumps as demand response in multi-dwelling buildings. The purpose is firstly to evaluate the potential economic effects for end-consumers with hourly based tariffs by analyzing if the solution can contribute to a reduced amount of energy and power consumption. These results are then analyzed from a broader perspective to see if the DR solution can lead to any benefits for the distribution grid operators, such as reduced power subscription and less penalty fines. Furthermore, the aim is to evaluate if it can lead to reduced imbalance costs by using DR instead of adjusting the energy balance on the intraday-market or paying imbalance fines. Potential markets such as the primary, secondary and tertiary market are also identified with the aim of determining the most suitable market products for this DR solution. This will be based on the characteristics of the flexibility such as how quick the heat pumps are to respond and how much power reduction the control system can generate. The purpose is then to evaluate if these potential benefits can be combined to generate a profitable impact for several actors. Finally, the aim is to make a technical feasibility study to investigate how this solution can be implemented, how much it would cost and if it would be profitable to do so.