Heat pumps for cooling and heating

Subtask 5, Report n:o 3

Seppo Kärkkäinen
Elektraflex Oy

in co-operation with the country experts

International Energy Agency Demand- Operating Agent:

Side Management Programme
Seppo Kärkkäinen
Task XVII: Integration of Demand Elektraflex Oy, Finland
Side Management, Distributed Tel: +358 50 555 1207
Generation, Renewable Energy seppo.karkkainen@elektraflex.com
Sources and Energy Storages
Country experts

Matthias Stifter Austria AIT Austrian Institute of Technology – Energy Department

(matthias.stifter@ait.ac.at )
Peter Palensky Austria AIT Austrian Institute of Technology – Energy Department
(peter.palensky@ait.ac.at )
Rusbeh Rezania Austria Vienna University of Technology – Energy Economics Group
(rezania@eeg.tuwien.ac.at )
Samuli Honkapuro Finland Lappeenranta University of Technology - Department of Energy
(samuli.honkapuro@lut.fi ) and Environmental Technology
Jarmo Partanen Finland Lappeenranta University of Technology - Department of Energy
(jarmo.partanen@lut.fi ) and Environmental Technology
Dominique Fourtune France ADEME
(dominique.fourtune@ademe.fr )
Vincent Krakowski France ADEME
(vincent.krakowski@ademe.fr )
Nouredine Hadjsaid France Grenoble Institute of Technology - The research center G2Elab
(hadjsaid@g2elab.grenoble-inp.fr )
Jean-Christophe Maisonobe France Grenoble Institute of Technology - The research center G2Elab
(jean-christophe.maisonobe@g2elab.grenoble-inp.fr )
René Kamphuis Netherlands Energy Research Centre of Netherlands (ECN)/ since 2011TNO
(rene.kamphuis@tno.nl )
Andre Postma Netherlands Enexis
(andre.postma@enexis.nl )
Miguel Ordiales Botija Spain Red Eléctrica España
(mordiales@ree.es )
Asier Moltó Llovet Spain Red Eléctrica España
(asier.molto@ree.es )

Operating Agent

Seppo Kärkkäinen Finland Elektraflex Oy

(seppo.karkkainen@elektraflex.com )
with the assistance of
Jussi Ikäheimo Finland VTT Technical Research Centre of Finland
(jussi.ikaheimo@vtt.fi )
Göran Koreneff Finland VTT Technical Research Centre of Finland
(goran.koreneff@vtt.fi )
Juha Kiviluoma Finland VTT Technical Research Centre of Finland
(juha.kiviluoma@vtt.fi )
 EXECUTIVE SUMMARY - Heat pumps for cooling and heating
TASK XVII: INTEGRATION OF DEMAND SIDE MANAGEMENT, DISTRIBUTED
GENERATION, RENEWABLE ENERGY SOURCES AND ENERGY STORAGES
Task extension: The effects of the penetration of emerging DER technologies to different
stakeholders and to the whole electricity system

Background Energy policies are promoting distributed energy resources such as energy
efficiency, distributed generation (DG), energy storage devices, and renewable
energy resources (RES), increasing the number of DG installations and especially
variable output (only partly controllable) sources like wind power, solar, small
hydro and combined heat and power.

Intermittent generation like wind can cause problems in grids, in physical

balances and in adequacy of power.

Thus, there are two goals for integrating distributed energy resources locally and
globally: network management point of view and energy market objectives.

Solutions to decrease the problems caused by the variable output of intermittent

resources are to add energy storages into the system, create more flexibility on
the supply side to mitigate supply intermittency and load variation, and to
increase flexibility in electricity consumption. Combining the different
characteristics of these resources is essential in increasing the value of
distributed energy resources in the bulk power system and in the energy market.

This Task is focusing on the aspects of this integration.

Objectives The main objective of this Task is to study how to achieve a better integration of
flexible demand (Demand Response, Demand Side Management) with
Distributed Generation, energy storages and Smart Grids. This would lead to an
increase of the value of Demand Response, Demand Side Management and
Distributed Generation and a decrease of problems caused by intermittent
distributed generation (mainly based on renewable energy sources) in the
 physical electricity systems and at the electricity market.

Approach The first phase in the Task was to carry out a scope study collecting information
from the existing IEA Agreements, participating countries with the help of country
experts and from organized workshops and other sources (research programs,
field experience etc), analyzing the information on the basis of the above
mentioned objectives and synthesizing the information to define the more detailed
needs for the further work. The main output of the first step was a state-of-the art
report.

The second phase (Task extension) is dealing with the effects of the penetration
of emerging DER technologies to different stakeholders and to the whole
electricity system.

The main subtasks of the second phase are (in addition to Subtasks 1 – 4 of the
phase one):

Subtask 5: Assessment of technologies and their penetration in participating

countries

Subtask 6: Pilots and case studies

Subtask 7: Stakeholders involved in the penetration and effects on the

stakeholders

Subtask 8: Assessment of the quantitative effects on the power systems and

stakeholders

Subtask 9: Conclusions and recommendations

The figure below describes the concept of this extension.

Results The report summarizes the heat pump technologies and their prospective
for demand response purposes. In addition to that the situation of heat
pumps in participated countries are described.
Heat pumps and demand response

In principle heat pumps are suitable for demand response for several
reasons:

 the penetration rates of different types of heat pumps for heating

and cooling are high and increasing in most countries

 demand response needs during the system peaks fits well with the
high use of heat pumps either for cooling in summer peak or heating
in winter peak situations, similarly local peaks at network level can
be decreased; on the other hand, in very low temperatures the
COPs of heat pumps are low and additional heating systems are
needed (electricity or gas)

 from the customer’s comfort point of view heat pumps can be

controlled similar way as electric heating and other air-conditioning
systems: due to the natural (building mass) and artificial heat
storages the heating/hot water production and cooling can be
switched off for certain time periods

 from the technical point of view the total switching-off the heat
pumps or the thermostat set-point adjustments are possible in short
term because heat pumps usually have remote control capabilities

However, some obstacles exist for the use of heat pumps for demand
response like

 there are not much experiences from the use of heat pumps for
demand response and therefore also technical solutions have not
been developed

 after the control period of heat pumps their load will be high and this
“pay-back” has to be taken into account in the control strategy

 starting current of heat pumps after switch-off or blackouts can be

high and problematic to the networks; this has to be taken into
account in the control strategy

Summary on situation in participating countries

The table below shows roughly the penetration of heat pumps at the
moment and in 2020 and/or 2030 in participating countries.
 2010 2020 2030

number total electric number total electric number total

power (MW) power (MW) power (

Austria 175 000 350 250000 508 343000 696

Finland 390 000 > 2000 1 000 000

France 950 000 2 000 000

Netherlands ? 1 500 000

Spain 6.3 % of share of 9 300 000

houses in summer peak
2008 2.24 %

The shares of different types of heat pumps are different in different

countries:

 In Finland roughly 20 % were ground source based in 2010, but the

air/air heat pumps have been very popular during the recent years

 In France the share of geothermal (ground source) is recently about

40 %

 In Spain in practice all heat pumps are air-based

The penetration of heat pumps are partly related to the energy policies,
regulations and incentives related to heat pumps: in many countries heat
pumps are seen as a way to increase energy efficiency and to reduce
CO2-releases:

 In Finland there is financial support (max 20 %) for the renovation

investments as well as income tax reduction for labor costs

 In France an income-tax credit permits to deduce from one’s tax

return a percentage of the investments made in different sustainable
development installations. For geothermal heat pump, the tax credit
was of 40% in 2010, and is of 36% in 2011. For air/water heat
pump, the tax credit was of 40% in 2009, 25% in 2010, and is of
22% in 2011. The government also allows “eco”-loans at 0%
interest for ecological installations. In the case of heat pumps,
construction work such as drilling for geothermal heat pump for
example can benefit from this loan. Renovation work can also
benefit from the loan but only if there is a substantial energy saving
with the new equipment. Also the VAT is reduced to 5.5% instead of
 19.6% for heat pumps installations.

 In the Netherlands applying heat pump systems in homes and utility

buildings is taken up in the design time energy performance index
(EPC), to which newly built homes in the Netherlands have to
comply. This makes it easy to compare heat pumps to other
measures to conserve energy. Heat pumps in the Netherlands in
existing homes are also subsidized on a per investment basis. For
home owners the amount of money is approximately 5000 euro for
water/water heat pumps and 2000 euro for air/water heat pumps.
Allocated budgets change in time depending on the policy.

 In Spain there are trend to increase the share of geothermal heat

pumps. At the moment this market is still very small in Spain.
However Spanish regions are subsiding up to 20% of the total cost
of geothermal heat pumps.

International Energy Agency Demand- Operating Agent:

Side Management Programme
Seppo Kärkkäinen
Task XVII: Integration of Demand Elektraflex Oy, Finland
Side Management, Distributed Tel: +358 50 555 1207
Generation, Renewable Energy seppo.karkkainen@elektraflex.com
Sources and Energy Storages
Table of content

1 Heat pumps for heating [1] .......................................................................................................... 3

1.1 Heat Pump Technology ......................................................................................................... 3
1.2 The two main heat pump types.............................................................................................. 3
1.2.1 Vapour compression heat pumps ................................................................................... 3
1.2.2 Absoption heat pumps .................................................................................................... 4
1.3 Heat sources .......................................................................................................................... 5
1.4 Heat pump performance ........................................................................................................ 7
1.5 Heat pumps in residential and commercial buildings ........................................................... 9
1.5.1 General definitions ......................................................................................................... 9
1.5.2 Heat and cold distribution systems .............................................................................. 10
2 Heat pumps for cooling .............................................................................................................. 11
2.1 Air-conditioners classification ............................................................................................ 11
2.1.1 Classification from the thermal generation point of view............................................ 11
2.1.2 Classification from the distribution point of view ....................................................... 11
2.1.3 Classification from the cold transfer point of view...................................................... 11
2.2 Energy consumption ............................................................................................................ 15
2.2.1 Air-conditioning system disconnection ....................................................................... 16
2.2.2 Temperature set-point modification ............................................................................. 17
2.2.3 Compressor capacity limitation ................................................................................... 17
2.2.4 Standby control ............................................................................................................ 17
2.3 Load usage characteristics ................................................................................................... 17
3 Control characteristics................................................................................................................ 20
3.1 Loss of comfort ................................................................................................................... 20
3.2 Ambient air heat pumps and system peaks………………………………………………..21
4 Summary .................................................................................................................................... 22
4.1 Heat pumps and demand response ...................................................................................... 22
4.2 Summary on situation in participating countries ................................................................. 22
5 References .................................................................................................................................. 24
Appendix 1 Present situation of heat pumps in Austria
A1.1. Number of heat pump installations ..................................................................................... 25
A1.2. Electric Energy Demand Scenarios for 2030 ...................................................................... 25
A1.3. Practical potential of DR for HPs: ....................................................................................... 26
A1.4. Impact on the electrical power system ................................................................................ 26
Appendix 2 Present situation of heat pumps in Finland
A2.1. Background ......................................................................................................................... 27
A2.2. Technologies and their penetrations .................................................................................... 29
A2.3. Policies related to heat pumps ............................................................................................. 31
A2.4. Load characteristics ............................................................................................................. 32
A2.5. Possible use for DSM .......................................................................................................... 34
A2.6. Research projects and case studies ...................................................................................... 35
A2.7. References of the national part ............................................................................................ 38
Appendix 3 Present situation of heat pumps in France
A3.1. Technological and commercial offer in France ................................................................... 39
A3.2. The current state of Heat Pumps installations ..................................................................... 41
A3.3. Deployment perspectives .................................................................................................... 42
A3.3.1 Current Regulations ........................................................................................................... 42
A3.3.2 Scenarios and forecasts ...................................................................................................... 43
A3.4. Conclusion ........................................................................................................................... 43
Appendix 4 Present situation of heat pumps in the Netherlands
A4.1. Heat Pump Technology ....................................................................................................... 45
A4.2. Heat/cold storage sources .................................................................................................... 46
A4.2.1 Aquifers as heat storage ................................................................................................. 46
A4.2.2 Hot water tanks as heat storage ...................................................................................... 47
A4.2.3 Homes as heat storage .................................................................................................... 48
A4.3. Heat pump projects in the Netherlands ............................................................................... 48
A4.4. Policy perspectives for heat pumps ..................................................................................... 49
A4.5. Demand response perspective of heat pumps...................................................................... 49
A4.5.1 Commercial perspective ................................................................................................. 49
A4.5.2 Distribution system operator perspective ....................................................................... 50
A4.6. Heat pump introduction scenarios in the Netherlands......................................................... 50
A4.7. Research and demonstration projects in the Netherlands .................................................. 52
Appendix 5 Present situation of heat pumps in Spain
A5.1. Current Spanish heat pump market ..................................................................................... 53

Appendix 6 Overview of the IEA Demand-Side Management Programme .............................. 57

1 Heat pumps for heating [1]
1.1 Heat Pump Technology
Heat flows naturally from a higher to a lower temperature. Heat pumps, however, are able to force
the heat flow in the other direction, using a relatively small amount of high quality drive energy
(electricity, fuel, or high-temperature waste heat). Thus heat pumps can transfer heat from natural
heat sources in the surroundings, such as the air, ground or water, or from man-made heat sources
such as industrial or domestic waste, to a building or an industrial application. Heat pumps can also
be used for cooling. Heat is then transferred in the opposite direction, from the application that is
cooled, to surroundings at a higher temperature. Sometimes the excess heat from cooling is used to
meet a simultaneous heat demand.
In order to transport heat from a heat source to a heat sink, external energy is needed to drive the
heat pump. Theoretically, the total heat delivered by the heat pump is equal to the heat extracted
from the heat source, plus the amount of drive energy supplied. Electrically-driven heat pumps for
heating buildings typically supply 100 kWh of heat with just 20–40 kWh of electricity.

1.2 The two main heat pump types

Almost all heat pumps currently in operation are either based on a vapour compression, or on an
absorption cycle. These two principles will be briefly discussed in the following.
Theoretically, heat pumping can be achieved by many more thermodynamic cycles and processes.
These include Stirling and Vuilleumier cycles, single-phase cycles (e.g. with air, CO2 or noble
gases), solid-vapour sorption systems, hybrid systems (notably combining the vapour compression
and absorption cycle) and thermoelectric and acoustic processes. Some of these are entering the
market or have reached technical maturity, and could become significant in the future. These
processes are not discussed in this report.

1.2.1 Vapour compression heat pumps

The great majority of heat pumps work on the principle of the vapour compression cycle. The main
components in such heat pump systems are the compressor, the expansion valve and two heat
exchangers referred to as evaporator and condenser. The components are connected to form a
closed circuit, as shown in Figure 1. A volatile liquid, known as the working fluid or refrigerant,
circulates through the four components.
In the evaporator the temperature of the liquid working fluid is kept lower than the temperature of
the heat source, causing heat to flow from the heat source to the liquid, and the working fluid
evaporates. Vapour from the evaporator is compressed to a higher pressure and temperature. The
hot vapour then enters the condenser, where it condenses and gives off useful heat. Finally, the
high-pressure working fluid is expanded to the evaporator pressure and temperature in the
expansion valve. The working fluid is returned to its original state and once again enters the
evaporator. The compressor is usually driven by an electric motor or sometimes by a combustion
engine.

3
Figure 1. Closed cycle, electric motor-driven vapour compression heat pump
An electric motor drives the compressor with very low energy losses. The overall energy efficiency
of the heat pump strongly depends on temperature levels of the heat source and heat sink. This is
discussed in the section on Heat pump performance.
When the compressor is driven by a gas or diesel engine, heat from the cooling water and exhaust
gas is used in addition to the condenser heat.

1.2.2 Absoption heat pumps

Absorption heat pumps are thermally driven, which means that heat rather than mechanical energy
is supplied to drive the cycle. Absorption heat pumps for space conditioning are often gas-fired,
while industrial installations are usually driven by high-pressure steam or waste heat.
Absorption systems utilise the ability of liquids or salts to absorb the vapour of the working fluid.
The most common working pairs for absorption systems are:
 water (working fluid) and lithium bromide (absorbent); and
 ammonia (working fluid) and water (absorbent).
In absorption systems, compression of the working fluid is achieved thermally in a solution circuit
which consists of an absorber, a solution pump, a generator and an expansion valve as shown in
Figure 2. Low-pressure vapour from the evaporator is absorbed in the absorbent. This process
generates heat. The solution is pumped to high pressure and then enters the generator, where the
working fluid is boiled off with an external heat supply at a high temperature. The working fluid
(vapour) is condensed in the condenser while the absorbent is returned to the absorber via the
expansion valve.

4
Figure 2. Absorption heat pump
Heat is extracted from the heat source in the evaporator. Useful heat is given off at medium
temperature in the condenser and in the absorber. In the generator high-temperature heat is supplied
to run the process. A small amount of electricity may be needed to operate the solution pump. For
heat transformers, which through the same absorption processes can upgrade waste heat without
requiring an external heat source, refer to the section on Heat pumps in industry.

1.3 Heat sources

The technical and economic performance of a heat pump is closely related to the characteristics of
the heat source. An ideal heat source for heat pumps in buildings has a high and stable temperature
during the heating season, is abundantly available, is not corrosive or polluted, has favourable
thermophysical properties, and its utilisation requires low investment and operational costs. In most
cases, however, the availability of the heat source is the key factor determining its use. Table 1
presents commonly used heat sources.
Table 1. Commonly used heat sources

Heat Source Temperature Range (°C)

ambient air -10 – 15

exhaust air 15 – 25
ground water 4 – 10
lake water 0 – 10
river water 0 – 10
sea water 3–8
rock 0–5
ground 0 – 10
waste water >10
and effluent

5
Ambient and exhaust air, soil and ground water are practical heat sources for small heat pump
systems, while sea/lake/river water, rock (geothermal) and waste water are usually used for large
heat pump systems.
Ambient air is free and widely available, and it is the most common heat source for heat pumps.
Air-source heat pumps, however, achieve on average 10–30% lower seasonal performance factor
(SPF) than water-source heat pumps, depending on the climate. This is mainly due to the rapid fall
in capacity and performance with decreasing outdoor temperature, the relatively high temperature
difference in the evaporator and the energy needed for defrosting the evaporator and to operate the
fans.
In mild and humid climates, frost will accumulate on the evaporator surface especially in the
temperature range 0–6 °C, leading to reduced capacity and performance of the heat pump system.
Coil defrosting is achieved by reversing the heat pump cycle or by other, less energy-efficient
means. Energy consumption increases and the overall coefficient of performance (COP) of the heat
pump drops with increasing defrost frequency. Using demand defrost control rather than time
control can significantly improve overall efficiencies.
Exhaust (ventilation) air is a common heat source for heat pumps in residential and commercial
buildings. The heat pump recovers heat from the ventilation air, and provides water and/or space
heating. Continuous operation of the ventilation system is required during the heating season or
throughout the year. Some units are also designed to utilise both exhaust air and ambient air. For
large buildings exhaust air heat pumps are often used in combination with air-to-air heat recovery
units.
Ground water is available with stable temperatures (4–10°C) in many regions. Open or closed
systems are used to tap into this heat source. In open systems the ground water is pumped up,
cooled and then reinjected in a separate well or returned to surface water. Open systems should be
carefully designed to avoid problems such as freezing, corrosion and fouling. Closed systems can
either be direct expansion systems, with the working fluid evaporating in underground heat
exchanger pipes, or brine loop systems. Due to the extra internal temperature difference, heat pump
brine systems generally have a lower performance, but are easier to maintain. A major disadvantage
of ground water heat pumps is the cost of installing the heat source. Additionally, local regulations
may impose severe constraints regarding interference with the water table and the possibility of soil
pollution.
Ground-source systems are used for residential and commercial applications, and have similar
advantages as (ground) water-source systems, i.e. they have relatively high annual temperatures.
Heat is extracted from pipes laid horizontally or vertically in the soil (horizontal/vertical ground
coils), and both direct expansion and brine systems can be used. The thermal capacity of the soil
varies with the moisture content and the climatic conditions. Due to the extraction of heat from the
soil, the soil temperature will fall during the heating season. In cold regions most of the energy is
extracted as latent heat when the soil freezes. However, in summer the sun will raise the ground
temperature, and complete temperature recovery may be possible.
Rock (geothermal heat) can be used in regions with no or negligible occurrence of ground
water. Typical bore hole depth ranges from 100 to 200 metres. When large thermal capacity is
needed the drilled holes are inclined to reach a large rock volume. This type of heat pump is always
connected to a brine system with welded plastic pipes extracting heat from the rock. Some rock-
coupled systems in commercial buildings use the rock for heat and cold storage.
River and lake water is in principle a very good heat source, but has the major disadvantage of
low temperature in winter (close to 0°C). Great care has to be taken in system design to avoid
freezing of the evaporator.

6
Sea water is an excellent heat source under certain conditions, and is mainly used for medium-
sized and large heat pump installations. At a depth of 25–50 metres, the sea temperature is constant
(5–8 °C), and ice formation is generally no problem (freezing point -1 °C to -2 °C). Both direct
expansion systems and brine systems can be used. It is important to use corrosion-resistant heat
exchangers and pumps and to minimise organic fouling in sea water pipelines, heat exchangers and
evaporators, etc.
Waste water and effluent are characterised by a relatively high and constant temperature
throughout the year. Examples of possible heat sources in this category are effluent from sewers
(treated and untreated sewage water), industrial effluent, cooling water from industrial processes or
electricity generation, condenser heat from refrigeration plants. The major constraints for use in
residential and commercial buildings are, in general, the distance to the user, and the variable
availability of the waste heat flow. However, waste water and effluent serve as an ideal heat source
for industrial heat pumps to achieve energy savings in industry.

1.4 Heat pump performance

The heat delivered by a heat pump is theoretically the sum of the heat extracted from the heat
source and the energy needed to drive the cycle. The steady-state performance of an electric
compression heat pump at a given set of temperature conditions is referred to as the coefficient of
performance (COP). It is defined as the ratio of heat delivered by the heat pump and the electricity
supplied to the compressor.
For engine and thermally driven heat pumps the performance is indicated by the primary energy
ratio (PER). The energy supplied is then the higher heating value (HHV) of the fuel supplied. For
electrically driven heat pumps a PER can also be defined, by multiplying the COP with the power
generation efficiency.
The COP or PER of a heat pump is closely related to the temperature lift, i.e. the difference between
the temperature of the heat source and the output temperature of the heat pump. The COP of an
ideal heat pump is determined solely by the condensation temperature and the temperature lift
(condensation - evaporation temperature).
Figure 3 shows the COP for an ideal heat pump as a function of temperature lift, where the
temperature of the heat source is 0°C. Also shown is the range of actual COPs for various types and
sizes of real heat pumps at different temperature lifts.

7
Figure 3. Heat pump performance as function of condensation temperature. Here the
temperature of the heat source is 0 °C.
The ratio of the actual COP of a heat pump and the ideal COP is defined as the Carnot-efficiency.
The Carnot-efficiency varies from 0.3 to 0.5 for small electric heat pumps and 0.5 to 0.7 for large,
very efficient electric heat pump systems.
An indication of achievable COP/PERs for different heat pump types at evaporation 0 °C and
condensing temperature 50 °C is shown in 0.

Table 2. Typical COP/PER range for heat pumps with different drive energies

Heat pump type COP PER

Electric (compression) 2.5 - 5.0
Engine (compression) 0.8 - 2.0
Thermal (absorption) 1.0 - 1.8

The operating performance of an electric heat pump over the season is called the seasonal
performance factor (SPF). It is defined as the ratio of the heat delivered and the total energy
supplied over the season. It takes into account the variable heating and/or cooling demands, the
variable heat source and sink temperatures over the year, and includes the energy demand, for
example, for defrosting.

8
The SPF can be used for comparing heat pumps with conventional heating systems (e.g. boilers),
with regards to primary energy saving and reduced CO2 emissions. For evaluating electric heat
pumps the power generation mix and the efficiencies of the power stations must be considered.

Factors affecting heat pump performance

The performance of heat pumps is affected by a large number of factors. For heat pumps in
buildings these include:
 the climate - annual heating and cooling demand and maximum peak loads;
 the temperatures of the heat source and heat distribution system;
 the auxiliary energy consumption (pumps, fans, supplementary heat for bivalent system
etc.);
 the technical standard of the heat pumps and refrigerants;
 the sizing of the heat pump in relation to the heat demand and the operating characteristics
of the heat pump;
 the heat pump control system.

1.5 Heat pumps in residential and commercial buildings

1.5.1 General definitions
Heat pumps for heating and cooling buildings can be divided into four main categories depending
on their operational function:
 Heating-only heat pumps, providing space heating and/or water heating.
 Heating and cooling heat pumps, providing both space heating and cooling.
The most common type is the reversible air-to-air heat pump, which either operates in
heating or cooling mode. Large heat pumps in commercial/institutional buildings use water
loops (hydronic) for heat and cold distribution, so they can provide heating and cooling
simultaneously.
 Integrated heat pump systems, providing space heating, cooling, water
heating and sometimes exhaust air heat recovery. Water heating can be by
desuperheating only, or by desuperheating and condenser heating. The latter permits water
heating when no space heating or cooling is required.
 Heat pump water heaters, fully dedicated to water heating.
They often use air from the immediate surroundings as heat source, but can also be exhaust-
air heat pumps, or desuperheaters on air-to-air and water-to-air heat pumps. Heat pumps can
be both monovalent and bivalent, where monovalent heat pumps meet the annual heating
and cooling demand alone, while bivalent heat pumps are sized for 20-60% of the maximum
heat load and meet around 50-95% of the annual heating demand (in a European residence).
The peak load is met by an auxiliary heating system, often a gas or oil boiler. In larger
buildings the heat pump may be used in tandem with a cogeneration system (CHP).
In residential applications room heat pumps can be reversible air-to-air heat pumps (ductless
packaged or split type units). The heat pump can also be integrated in a forced-air duct system or a
hydronic heat distribution system with floor heating or radiators (central system).
In commercial/institutional buildings the heat pump system can be a central installation connected
to an air duct or hydronic system, or a multi-zone system where multiple heat pump units are placed
in different zones of the building to provide individual space conditioning. Efficient in large

9
buildings is the water-loop heat pump system, which involves a closed water loop with multiple
heat pumps linked to the loop to provide heating and cooling, with a cooling tower and auxiliary
heat source as backup.

1.5.2 Heat and cold distribution systems

Air is the most common distribution medium in the mature heat pump markets of Japan and the
United States. The air is either passed directly into a room by the space-conditioning unit, or
distributed through a forced-air ducted system. The output temperature of an air distribution system
is usually in the range of 30–50 °C.
Water distribution systems (hydronic systems) are predominantly used in Europe, Canada and the
north eastern part of the United States. Conventional radiator systems require high distribution
temperatures, typically 60–90 °C. Today's low temperature radiators and convectors are designed
for a maximum operating temperature of 45–55 °C, while 30–45 °C is typical for floor heating
systems. Table 3 summarizes the typical temperature requirements for various heat and cold
distribution systems.
Table 3. Typical delivery temperatures for various heat and cold distribution systems.

Application Supply temperature range (°C)

Air distribution Air heating 30 – 50
Floor heating; low temperature (modern) 30 – 45
Hydronic systems radiators 45 – 55
High temperature (conventional) radiators 60 – 90
District heating - hot water 70 – 100
Distict heating District heating - hot water/stream 100 – 180
Cooled air 10 – 15
Space cooling Chilled water 5 – 15
District cooling 5–8

Because a heat pump operates most effectively when the temperature difference between the heat
source and heat sink (distribution system) is small, the heat distribution temperature for space
heating heat pumps should be kept as low as possible during the heating season.
Table 4 shows typical COP's for a water-to-water heat pump operating in various heat distribution
systems. The temperature of the heat source is 5 °C, and the heat pump Carnot efficiency is 50%.

Table 4. Example of how the COP of a water-to-water heat pump varies with the
distribution/return temperature.
Heat distribution system (supply/return temperature) COP
Conventional radiators (60/50°C) 2.5
Floor heating (35/30°C) 4.0
Modern radiators (45/35°C) 3.5

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2 Heat pumps for cooling

2.1 Air-conditioners classification

In this section, residential air-conditioning systems are classified according to three different criteria
2, 3:
 Thermal generation: air-conditioners are grouped as a function of the fluids that cross the
condenser and the evaporator respectively.
 Distribution: this classification takes into account the fluid employed for transporting the
generated cold to the room to be refrigerated.
 Cold transfer: air-conditioners are classified depending on the fluid that finally refrigerates
the room.

2.1.1 Classification from the thermal generation point of view

This classification takes into account the fluids that go across the condenser and the evaporator
respectively. They can be:
 Air/air systems: the fluid that crosses both the condenser and the evaporator is air; cold air is
obtained as output
 Air/water systems: the fluids that cross the condenser and the evaporator are air and water
respectively; as a result a cold water circuit is obtained (not considered in Directive
2002/31/EC).
 Water/air systems: the fluid that crosses the condenser is water and the fluid that crosses the
evaporator is air; cold air is obtained as output.
 Water/water systems: the fluid that crosses both the condenser and the evaporator is water; as a
result a cold water circuit is obtained (not considered in Directive 2002/31/EC).

2.1.2 Classification from the distribution point of view

Air-conditioning systems can also be classified according to the fluid that transports the generated
cool to the room that is going to be refrigerated; for this purpose ducts or pipes are employed. This
classification is mainly applicable to centralised systems. They can be:
 Air
 Water
 Refrigerant

2.1.3 Classification from the cold transfer point of view

This classification takes into account the way employed for transferring cold to the room.
According to it the systems can be:
 All-refrigerant
 Refrigerant-air
 All-water
 Air-water
 All-air

11
All-refrigerant systems
In these systems room air is directly blown across special devices called DX coils in which the
direct expansion of the refrigerant is performed.
Several types of equipment can be included in this category:
A) Single-packaged units: in this kind of equipment all components of the refrigeration cycle
are included in a single package. There are two different modalities as a function of their
mobility:
- “Window” and “through-the-wall”: in this case, one side of the mentioned package,
which is fixed, is in contact with the outside air and the other provides direct cooling to
the air inside. They can be installed in a window opening or in an opening in the exterior
wall.

Window

Through-the- wall

Figure 4. Window and through-the-wall package air-conditioners

- Single duct units: in contrast to the previous ones, these appliances are moveable. The
unit is connected to the exterior through a duct in order to eliminate the hot air coming
from the condenser. Due to this reason, they must be set close to a window or a
dedicated hole must be made in the exterior wall.

Figure 5. Single-duct air conditioners

An evolution of this type is the double-duct air conditioner. They are similar to the single-
duct but a second hole at the condenser allows taking the condenser air from outside thus
avoiding outside air infiltration inside the room to be cooled.
B) Non-ducted split-packaged units: this equipment comprises two packages, the interior and
the exterior units that are connected by a pipe that transfers the refrigerant. The former
includes the evaporator and a fan and the latter the compressor and the condenser. In this
category, several types can be defined as a function of the mobility of the indoor and
outdoor units.
- Non-ducted fixed split-packaged units: both, indoor and outdoor units are fixed. The
indoor unit can be wall mounted, console or ceiling suspended, cassette…

12
 Wall mounted

Console or ceiling suspended

Cassette

Figure 6. Non-ducted fixed split-packaged units

- Non-ducted split packaged units with mobile indoor unit: outdoor unit is fixed but
indoor unit is mobile.

Figure 7. Non-ducted split-packaged units with mobile indoor unit

- Non-ducted split packaged units with mobile indoor and outdoor units: both, indoor and
outdoor units are mobile.

Figure 8. Non-ducted split packaged units with mobile indoor and outdoor units
C) Multi-split packaged units: they are similar to split-packaged units but in this case there are
several indoor units (up to 4) connected to one exterior one. The control can be centralized
or independent for each indoor unit.

13
 Figure 9. Figure 2-1: Multi-split packaged units

Refrigerant-air systems
These systems are similar to the previous ones with the addition of a primary air circuit. This air,
which is cooled in a central chiller, supplies the ventilation requirements to the different rooms of
the house. One example of this type of system is the ducted split packaged unit. This system is
installed usually in houses or commercial buildings such as offices. It consists of an exterior unit
that includes the compressor and the condenser and an interior unit that includes the evaporator and
a fan. It is a centralised system in which the interior package is installed in the suspended ceiling.
From this unit a network of ducts conduces the cold air to the rooms of the house or the building
where it is delivered through grilles.

Figure 10. Ducted split-packaged units

All-water systems
These systems circulate cold water produced in a single chiller plant within the house. They include
cool ceilings, radiant floor systems and fan-coils. The cold transfer is mainly performed by radiation
in cool ceilings and radiant floors and by convection in fan-coils. In the last case, a fan blows room
air over a coil containing the water, cooling it as a result. This centralised system has been usually
employed in the tertiary sector although it has started to be employed in dwellings.

Radiant floor system

14
 Fan-coil

Figure 11. All-water systems

Air-water systems
These systems are very similar to the previous ones. A chiller is used to produce cold water which
is pumped around the building. The cold transfer from water to room air is performed in fan-coils.
However, they also include a primary air circuit that performs ventilation functions.

All-air systems
All-air systems transfer cooled air produced in a central plant via ducting, distributing air through a
series of grilles or diffusers to the room or rooms of the house.
There exist two different modalities of this centralised system: constant or variable flow. In the first
one, the regulation of the cold that goes to each room is performed by modifying the temperature of
the driven air. In the second one, the temperature of the driven air is constant but the flow is
variable.

2.2 Energy consumption

Air-conditioning systems do not have a pre-determined consumption profile. In contrast, the electrical
consumption of air-conditioning systems is related to the thermal demand of the room to be refrigerated
which in its turn depends on many variables
 Characteristics of the building: geometry, internal loads (lighting, computers …), construction
materials, openings, orientation, …
 Weather conditions: outdoor temperature, humidity, solar radiation, wind speed, wind direction,
cloudiness conditions, atmospheric pressure…
 Comfort set-points
 Sizing of the air-conditioner (cooling capacity)
 Energy efficiency of the air-conditioner
In addition, the consumption profile depends on the type of technology employed for regulating the air-
conditioning system, that is, for adapting the cooling capacity to the required thermal load. There exist
two main ways for achieving this objective in residential air-conditioners:
 ON/OFF cycling: it consists of switching on and off the motor inside the compressor according
to the thermal load demand. For this purpose a thermostat with a set-point and a dead band is
employed. If for example it is supposed that the temperature setting is 23 ºC and that the dead
band is 2 ºC, the compressor will be connected when indoor temperature reaches 24 ºC and
disconnected when indoor temperature reaches 22 ºC.

15
 Inverter: it is a new technology in which the rotation speed of the compressor is electronically
controlled. In this way, it is possible to maintain an almost fixed temperature without having to
connect and disconnect cyclically the compressor.
Figure 12 shows a graphical representation of the temperature profiles obtained with the two
technologies and the rotation speed of the compressor as well.

NON-INVERTER

Temperature (ºC)

INVERTER

NON-INVERTER
speed (RPM)
Compressor

INVERTER

Time

Figure 12. Temperature and compressor speed profiles for air-conditioners with and without
inverter control

It can be observed that inverter power control is capable of reaching the temperate set-point more
rapidly than the non-inverter one. Besides, this technology allows a more accurate temperature
control and therefore the obtained comfort is better. The appliances equipped with this control
technology are more efficient and have lower energy consumptions.
For non-inverter air-conditioners, the cycles in which the compressor operates at its maximum
capacity and the cycles in which it is switched off are alternated. The duration of these cycles
depend on the difference between the actual and the desired indoor temperatures. It can be observed
that the length of the first cycle is higher than the one of the remaining cycles because the initial
temperature is far from the set point one. Once the temperature set-point has been reached, the
duration of the remaining cycles will vary as a function of the thermal load demand.

2.2.1 Air-conditioning system disconnection

It consists of completely interrupting the operation of the air-conditioning system for a given time
interval. However, when the control action is released the payback effect is produced, whose value
will depend on the duration of the control period as well as the thermal characteristics of the house.
This action can have a high impact on the living comfort in case it lasts a long time. Consequently it
might represent cause of rejection by end-users from the comfort point of view; in this connection,
the control has to be such that thermal stress is avoided, whichever the control is.
Air-conditioning and space and water heating system disconnection has been the basis of many
direct load control initiatives.Technical implementation of these control actions could be performed
in a short-term because the required technology already exists in the market.

16
2.2.2 Temperature set-point modification
This control action consists of modifying the temperature setting of the thermostat during the
control period. In this way energy savings can be obtained while living comfort is possibly altered.
These control actions in a non-inverter air-conditioner cause an increment on the length of the off
cycles of the compressor, and then a reduction of energy consumption. In an inverter air-
conditioner, the rotation speed of the compressor motor is reduced thus decreasing the energy
consumption.
Technical implementation of these control actions would be also possible in the short-term because
most air-conditioners sold nowadays are equipped with a digital thermostat that would allow a
remote control of the temperature setting without a significant investment.

2.2.3 Compressor capacity limitation

These control actions are only applicable to air-conditioning systems equipped with an inverter
power control. In these cases it is possible to limit the operation regime of the compressor ensuring
in this way that its electrical consumption is below a specific level.
It represents a feasible solution from the comfort point of view because end-users would not notice
important variations on the living comfort. The only difference would be on the time required by
the air-conditioning system to reach the temperature set-point that would be slightly higher.
The drawback of this option is its technical feasibility. Implementation of these control actions
would require important changes on the electronic parts of the air-conditioning systems that allow
the capacity limitation of the compressor. These changes should be carried out by manufacturers. In
addition to this, the communication infrastructure that allows the reception of external signals
containing information related to the capacity limitation would be required.
Consequently, this control option could represent a good alternative for being implemented in the
long-term because important changes on the air-conditioning systems are required.

2.2.4 Standby control

Most modern air-conditioning systems include a standby mode. Although in this status the
appliance is not operational, it allows its reactivation through remote control or a timer. The
consumption of the air-conditioner in this mode can range from 0.3 to 25 W. Consequently, the total
amount of energy demanded can be very high if it remains in this status for a long time. Other kind
of control actions could be oriented to reduce this consumption by modifying the status of the air-
conditioner from the stand-by to the off mode.

2.3 Load usage characteristics

The analysis of usage patterns of air-conditioning systems is essential for determining the energy
consumption of these devices and the energy savings that can be obtained through the application of
the control actions.
The main factors than influence its use in the residential sector are [3]:
 Climate zone: it is obvious that zones with hot climates present higher consumptions than
zones with moderate or low temperature climates.
 Age of the building: new buildings are usually better equipped and therefore it is more
probable for them to have an air-conditioning system installed. Nowadays, this trend is
changing and the age of the building mainly determines the type of system installed. New

17
 buildings are more likely to have a centralized air-conditioning system while old buildings
are more probable to have a portable or a split one.
 Economic level: air-conditioners, in contrast to space-heaters, have been always considered
a luxury appliance. Therefore families with higher incomes are more likely to own an air-
conditioning system.
 Size of the habitat: the air-conditioning penetration is higher in cities than in small towns.
The utilisation of the air-conditioning system is mainly done in summer months. According to the
study carried out in [2], the average use of air conditioners in dwellings in Spain and Italy is 5.2
hours/day and 3.2 months/year. As a result, the air-conditioning system is employed during almost
500 hours per year.
The actual load profile (in a summer day) in a specific installation depends on many factors,
including the consumer habits. On the other hand, from the grid point of view, a whole group of air-
conditioning equipments shows a load profile in which the different individual conditions of use are
averaged. Reference [4] provides the average consumption profile of an air-conditioning system
installed in single-family houses in Spain during a typical summer weekday in 1996 (‘average’
stands for the average over the whole sample of the power supplied to all the air–conditioning
systems in the sample)

Figure 13. Average load curve of residential air-conditioning systems in Spain, 1996. Abscissa
shows the load in % of average load

It can be seen that the maximum average consumptions occur during the time period that goes from
14:00. to 22:00; it is due to the combined effect of outdoor temperature, actual occupancy and
request for operation, thermal inertia of building. Peak average demand of the day takes place at
16:00 taking a value of 275 % .
Similar results are presented in the reference [5], reported in Figure 14, which refers to a few (13)
air-conditioning installations monitored in Italy and Greece during year 2000. There, a sustained
consumption starts at 14:00 and lasts until 1:00 in the night.

18
 Figure 14. Average load curve of residential air-conditioning systems in Greece and Italy, 2000

Regarding comfort settings, in [4] was estimated that the average temperature set-point for domestic
air-conditioners in Spain in the year 1996 was around 22 ºC.

19
3 Control characteristics
Air-conditioning and space heating systems can be controlled to reduce their daily energy
consumption and to modify their load curve. They are appropriate equipment to achieve important
reductions on the total energy demanded by the dwellings, as well as significant variations of the
load shape. The loss of living comfort resulting from the control actions can still be kept limited.
Air-conditioning systems similarly to the space heating systems consume energy continuously
along the day in order to maintain the indoor temperature close to the temperature set-point. Cold or
heat demand of the house is related to outdoor temperature, with a delay between the peak of the
outdoor temperature and the peak of the cold or heat demand, due to the building thermal inertia
(for a constant indoor temperature setting). Usually, the peak of cold or heat demand occurs in
periods when system demand peaks and energy price is high.
It is important to take into account that thermostatically controlled appliances, such as air-
conditioners and space-heating systems tend to restore the temperature set-point once the control
action has been released. As a result, they present a peak in its consumption just after the control
period that can be very important if the actual indoor temperature is far from the ideal level.
Consequently it will be necessary to take into account this issue, which is called “payback”, when
the operation of these appliances is planned.
In addition, a scheduled operation can result in an increased electrical consumption also in hours
preceding a high-price period with respect to the consumption of un-scheduled operation.
Next, a description of the control actions that could be potentially applied to residential air-
conditioning systems is presented. These are described on the basis of air-conditioning/cooling
systems, but similar actions can be applied also space heating. Usually, electrically heated houses or
those heated by heat pumps are well-insulated, and therefore the thermal inertia of houses is high.
This results in fairly slow loss of comfort: typically loss of heating for 1–3 hours decrease indoor
temperature less than 2 oC.

3.1 Loss of comfort

Disconnecting air-conditioning systems for a period of time or raising the temperature set-point has
the effect of (not dramatically) increasing the percentage of predicted dissatisfied people. In other
words, a higher temperature set-point will not be seen as a loss of comfort by all people. Moreover,
the loss of comfort can be accepted, based (as said) on economical and environmental concerns.
The maximum acceptable temperature limit may even be 2–3 °C over the best comfort temperature
when higher consumption reductions are required. Different thermal comfort models have been
developed for estimating the relationship between temperature deviations and the share of
dissatisfied people. For example Lenzuni and Del Gaudio [6] propose the discomfort levels as
function of air temperature and humidity shown in Figure 15.

20
 100

Relative humidity %

D E F
50 C
B
A

0
26 28 30 32 34 36 38 40
Air temperature °C

Figure 15. Proposed discomfort zones in warm thermal environment, when activity level is low
(corresponds to light work). Zone A manifests very low, B low, C intermediate, D high,
E very high and F extreme discomfort.

3.2 Ambient air heat pumps and system peaks

In some countries like in Finland, time-of-use tariff-based controlled electric heating is being
replaced by non-responsive heat pumps. Nordic countries have their system peak demand during
extremely cold weather when the days are short and solar radiation very small. During extremely
cold weather houses having air source heat pumps in addition to other electric heating system
consume daily as much or slightly more than electrically heated houses without heat pumps. This
can be clearly seen from the hourly smart metering data now available to research. (At the same
time solar power generation is very low and wind speeds are usually but not always low.) Thus non-
controllable ambient air source heat pumps increase the system peak and make it necessary either to
operate power plants with extremely short running time or deploy new sources of DR.
Ambient air source heat pumps are a cost efficient way to reduce end use energy consumption.
Therefore they are increasingly applied as an additional heating form. Making all types of heat
pumps as controllable DR resources is a potential solution to the problem.

21
4 Summary
4.1 Heat pumps and demand response

In principle heat pumps are suitable for demand response for several reasons:
 the penetration rates of different types of heat pumps for heating and cooling are high and
increasing in most countries
 demand response needs during the system peaks fits well with the high use of heat pumps
either for cooling in summer peak or heating in winter peak situations, similarly local peaks
at network level can be decreased; on the other hand, in very low temperatures the COPs of
ambient heat pumps are low and in very low temperatures (typically below - 20 to - 25 Co)
they have to be stopped and additional heating systems are in use (electricity or gas)
 from the customer’s comfort point of view heat pumps can be controlled similar way as
electric heating and other air-conditioning systems: due to the natural (building mass) and
artificial heat storages the heating/hot water production and cooling can be switched off for
certain time periods
 from the technical point of view the total switching-off the heat pumps or the thermostat set-
point adjustments are possible in short term because heat pumps usually have remote control
capabilities
However, some obstacles exist for the use of heat pumps for demand response like
 because technical requirements and solutions such as open interoperable interfaces and
functionalities are still missing, there are not much experience from the use of heat pumps
for demand response; therefore it may take long time before mature technical solutions are
available
 in generally, lack of standardization in the field of Home Area Networks (HAN) means that
available market solutions are incompatible, which a major cost barrier for home energy
management based demand response; this is valid also heat pump based demand response
 after the control period of heat pumps their load will be high and this “pay-back” has to be
taken into account in the control strategy
 starting current of heat pumps after switch-off or blackouts can be high and problematic to
the networks; this has to be taken into account in the control strategy

4.2 Summary on situation in participating countries

The Table 5 shows roughly the penetration of heat pumps at the moment and in 2020 and/or 2030 in
participating countries.
Table 5. Some estimations for the penetration of heat pumps (base-line scenarios)
2010 2020 2030
number total number total number total
electric electric electric
power power power
(MW) (MW) (MW)
Austria 175 000 350 250000 508 343000 696
Finland 390 000 > 2000 1 000 000
France 950 000 2 000 000

22
Netherlands ? 1 500 000
Spain 6.3 % of share of 9 300 000
houses in summer
2008 peak 2.24
%

The shares of different types of heat pumps are different in different countries:
 In Finland roughly 20 % were ground source based in 2010, but the air/air heat pumps have
been very popular during the recent years
 In France the share of geothermal (ground source) is recently about 40 %
 In Spain in practice all heat pumps are air-based
The penetration of heat pumps are partly related to the energy policies, regulations and incentives
related to heat pumps: in many countries heat pumps are seen as a way to increase energy efficiency
and to reduce CO2-releases:
 In Finland there is financial support (max 20 %) for the renovation investments as well as
income tax reduction for labor costs
 In France an income-tax credit permits to deduce from one’s tax return a percentage of the
investments made in different sustainable development installations. For geothermal heat
pump, the tax credit was of 40% in 2010, and is of 36% in 2011. For air/water heat pump,
the tax credit was of 40% in 2009, 25% in 2010, and is of 22% in 2011. The government
also allows “eco”-loans at 0% interest for ecological installations. In the case of heat pumps,
construction work such as drilling for geothermal heat pump for example can benefit from
this loan. Renovation work can also benefit from the loan but only if there is a substantial
energy saving with the new equipment. Also the VAT is reduced to 5.5% instead of 19.6%
for heat pumps installations.
 In the Netherlands applying heat pump systems in homes and utility buildings is taken up in
the design time energy performance index (EPC), to which newly built homes in the
Netherlands have to comply. This makes it easy to compare heat pumps to other measures to
conserve energy. Heat pumps in the Netherlands in existing homes are also subsidized on a
per investment basis. For home owners the amount of money is approximately 5000 euro for
water/water heat pumps and 2000 euro for air/water heat pumps. Allocated budgets change
in time depending on the policy.
 In Spain there are trend to increase the share of geothermal heat pumps. At the moment this
market is still very small in Spain. However Spanish regions are subsiding up to 20% of the
total cost of geothermal heat pumps.

23
5 References

1. http://www.heatpumpcentre.org/en/Sidor/default.aspx
2. ARMINES, Université de Liège, Department of mechanical engineering of the University of Porto
(IDMEC), Austrian Energy Agency, BRE, IASA, “Preparatory study on the environmental
performance of residential room conditioning appliances (airco and ventilation)”, August 2007-July
2008.
3. J.F. Kreider, “Handbook of heating, ventilating and air conditioning”, Ed. Jan F. Kreider, Boca Raton,
CRC Press LLC, 2001.
4. Red Eléctrica de España (REE) “Proyecto INDEL. Atlas de la demanda eléctrica española”,1998
5. Commission of the European Communities, “Demand Side Management. End-use metering
campaign in 400 households of the European Community. Assessment of the Potential Electricity
Savings”, Project EURECO, SAVE Programme, January 2002.
6. P. Lenzuni, M. Del Gaudio, "Thermal Comfort Assessment in Comfort-Prone Workplaces". Ann.
Occup. Hyg., Vol. 51, No. 6, pp. 543–551, 2007.

24
Appendix 1 Present situation of heat pumps in Austria
A1.1. Number of heat pump installations
The current Situation shows that the majority of HP installed are below 20kW thermal power.
Approximately factor 10 less the next power class of 20 to 80kW and factor 100 less the above
80kW power class (Table A1 1).
Table A1 1. Number of annual installed HP per power class in Austria [1]
HP power classification 2008 2009 2010 2011
< 20kW 11,563 11,083 10,540 11,528
20kW-80kW 1,443 991 871 876
> 80 kW 127 85 61 35
Total 13,133 12,159 11,472 12,439

A1.2. Electric Energy Demand Scenarios for 2030

From the data in Table A1 2 the number of installed HP and the total potential of DR per HP power
class can be estimated (Table A1 3), assuming that the different power classes have a similar
distributed share of the total number of installed HP.
Table A1 2. Mean and total thermal and electrical power of installed HP in Austria [1]
Use water HP Heating HP Air condition HP Sum
Thermal Power (mean) [kWth / HP a] 2,75 10,8 2,67
Thermal Power (total) [MWth] 224 862 9 1.096
Electrical power (mean / HP) [kWel/ HP a] 1.1 3 1.07
Electrical power (total) [MWel] 90 240 4 333

Table A1 3. Status quo for electrical power consumption of HP in Austria and scenarios according
to [2].
HP power Percentage on 2009 2020 2020 2030 2030
classification the total share [MWel] [MWel] [MWel] [MWel] [MWel]
[%]
Status quo Baseline Accelerated Base scenario Accelerated
scenario scenario scenario

Installed HP 164.000 250.000 233.000 343.000 455.000

< 20kW 90% 300 457 426 627 831
20kW-80kW 9% 30 46 43 63 83

> 80 kW 1% 3 5 5 7 9
Total 100% 333 508 473 696 924

The share on existing building types provided in [2] makes the share of HP classes plausible. For
instance small residential building (single and double family households) have over 90% share on
building space. The status quo of the “electrical energy demand”, heating and use water heat pumps
together are taken from [1].

25
A1.3. Practical potential of DR for HPs:
In this estimation it is assumed, that the relative share of power classes stay the same; in future
scenarios the behavior of scaling will be the same between those classes
Realistic reduction of DR potentials: Concurrency factor (full load hours) imply that the full
potential will not be available.
Following estimation has been made according to the full load hour from [1]: A full load hour of
1540h from total 8760h leads to approximately 35-40% availability in the heating period of six
month, if it is assumed, that the HP for heating are mainly operating in the cold seasons.
Starting with the “first” 92MW (9MW+83MW in 2030) of the medium and big sized HP,
approximately 2000 HPs must be integrated into DR measures. These numbers result if the total
electric power per class is divided by the power class mean value. The practical DR potential would
be up to 36,8MW (assuming 40% availability) of estimated 92 MW from the accelerated scenario
during winter time. Prerequisites are thermal energy storage or thermal capacity enabling the
possibility for a demand shift.
Hybrid between cooling and heating HP (reversible HP) could enable more potential especially for
winter and summer peaks. Technology trends have this direction.

A1.4. Impact on the electrical power system

Standard transformer power rates are between 0,6 to 1MW, therefore the average share on the
distribution grid’s load would be between 5% and 15%, when a HP of power class 20kW-80kW and
>80kW is connected. According to the absolute number of HPs per power class installed (Table A1
3) in 2020 a number between 50-100 and in 2030 at least 100-200 distribution grids might be
affected. A shift-able load of 15% by avoiding peak loads would already have a positive effect on
the asset’s lifetime or would delay the reinforcement by increasing the safety margin of the
transformer. Load flow simulations are needed to analyse these effects in detail. Gradual load
control would also improve the facilitation and is seen as important to support possible services for
DR.

References
[1] Innovative Energietechnologien in Österreich Marktentwicklung 2010, Berichte aus Energie-
und Umweltforschung 26/2011, Bundesministerium für Verkehr, Innovation und
Technologie, 2011
[2] Haas, R.; et. al.; Wärme und Kälte aus Erneuerbaren 2030; TU-Vienna, EEG, für den
Dachverband Energie-Klima und WKO, Oktober 2007

26
Appendix 2 Present situation of heat pumps in Finland
A2.1. Background
In following sections, country-specific description from Finland is provided. For the background
information, number and floor area of different types of buildings in Finland are presented in the
Table A2 1.

Table A2 1. Building stock in Finland.

Number of % of total
buildings m2 m2
Detached houses 1 082 511 148 147 806 35 %
Attached houses 75 109 32 132 585 8%
Apartment houses 55 925 88 591 973 21 %
Shop buildings 41 419 25 135 863 6%
Office buildings 10 732 18 250 844 4%
Traffic buildings 54 134 11 340 432 3%
Institutional buildings 7 835 9 858 061 2%
Buildings for assembly 13 418 8 538 715 2%
Educational buildings 8 885 17 241 611 4%
Industrial buildings 39 581 44 289 520 10 %
Warehouses 25 964 16 928 080 4%
Other buildings 5 675 1 840 896 0%
All buildings 1 421 188 422 296 386 100 %

Furthermore, the statistical information about the heating methods of the buildings is presented in
Table A2 2.

Table A2 2. Heating methods of the building stock in Finland.

Amount of the Detached Attached Apartment Shop Office
buildings All buildings houses houses houses buildings buildings
In total 1 421 188 1 082 511 75 109 55 925 41 419 10 732
District heating 158 605 52 498 32 571 42 470 6 536 4 422
Oil 322 530 258 097 17 272 9 545 7 529 2 761
Electricity 540 986 456 581 23 942 2 291 18 328 2 611
Coal 7 037 6 604 36 94 55 16
Wood 276 674 262 334 650 1 102 4 165 207
Ground source
heating 16 011 15 432 82 17 115 14
Others 99 345 30 965 556 406 4 691 701

27
Amount of the Traffic Institutional Buildings for Educational Industrial Other
buildings buildings buildings assembly buildings buildings Warehouses buildings
In total 54 134 7 835 13 418 8 885 39 581 25 964 5 675
District heating 1 957 3 933 2 369 3 377 5 865 1 819 788
Oil 5 278 2 268 2 615 3 342 10 723 2 222 878
Electricity 14 328 1 158 4 572 1 032 10 882 3 959 1 302
Coal 39 8 15 14 123 15 18
Wood 1 434 172 1 114 784 3 320 580 812
Ground source
heating 121 29 22 12 109 46 12
Others 30 977 267 2 711 324 8 559 17 323 1 865

Evens et al. (2010) have estimated that approximately 30 % of the electric heating is direct electric
heating, 62 % is partial storage, and 8 % is full storage electric heating.
In addition, in Figure A2 1, distribution of the heating methods by the end energy use in Finland is
illustrated. Figure A2 2, again, will provide information about the share of the energy demand of the
heating by building types.
Wood
11,1 %

Electricity Other
17,9 % 2,0 %

Heavy fuel oil

4,2 %

Light fuel oil

14,4 %

Heat pumps
6,0 %
District heating
44,3 %

Figure A2 1. The share of the heating methods by end energy use.

Agricultural buildings
5%

Industrial buildings
Detached houses
14 %
34 %

Áttached houses
Commercial and public
6%
buildings
22 %

Apartment houses
19 %
Figure A2 2. Distribution of the total heating energy demand by the building types.

28
A2.2. Technologies and their penetrations
Due to the climate conditions in Finland, heat pumps are mostly used as heating purposes. There is
a lack of the statistics concerning the cooling energy demand in Finland, but roughly it has been
estimated that the annual demand of the cooling energy of a building is less than 10 % of the heat
demand of the same building. Furthermore, cooling systems are rare even in the new residential
buildings in Finland, although there is almost always cooling in the new service buildings.
However, installed heat pumps typically have also cooling function, thus it is likely that they are
used also for cooling purposes, particularly if summers will be warmer in the future.
Ground source heat pumps are typically used as primary heating method, while air-source heat
pumps are supplementary heating system. Ground source heat pumps are typically dimensioned for
50-70 % of the peak demand, which means that they produce 85-98 % of annual heat demand. Rest
of the heat demand, during the coldest days of winter, as well as final heating of the tap water, is
based on the electric heating. Heat distribution in ground source heat pumps are typically based on
water circulation (floor heating or radiators). Seasonal performance factor (SPF) for ground source
heat pumps in Finland is estimated typically to be 2.6–3.6. However, empirical studies have
revealed a bit smaller heating season SPF, i.e. 2.4 (c.f. ENETE 2010). In Table A2 3, penetration
level for ground source heat pumps in Finland during the years 1997-2007 is presented.

Table A2 3. Ground source heat pumps in Finland during the years 1997-2007
Consumed
Year Amount Capacity Generated heat electricity Utilized Primary energy
[MW] [GWh] [GWh] [GWh]
1997 14 731 314,70 1 131,90 390,30 741,60
1998 15 434 329,70 1 216,10 419,30 796,70
1999 16 339 350,10 1 237,40 426,70 810,70
2000 17 539 375,80 1 174,20 404,30 769,30
2001 19 016 406,80 1 441,00 480,30 960,70
2002 20 495 437,80 1 567,90 522,60 1 045,20
2003 22 695 484,90 1 710,20 570,10 1 140,10
2004 25 600 548,20 1 962,00 654,00 1 308,00
2005 29 106 624,30 2 104,30 701,40 1 402,90
2006 33 612 721,90 2 502,10 834,00 1 668,10
2007 38 906 831,00 2 815,00 983,00 1 877,00

Air-source heat pumps are supplementary heating method in Finland, and heat distribution is
typically based on the air heating (air-to-air heat pumps). Primary heating method in the building,
where air source heat pump is installed, is typically electricity (it is estimated to be primary heating
method in 80 % of those buildings). Other typical primary heating methods are oil and wood.
Typical SPF for air-source heat pumps in Finland is 1.8-2.2. Typically air-source heat pumps can
produce 30-40 % of the annual heat demand of a detached house. Outside air heat pumps are the
most rapidly increasing heat pump types in Finland. In Table A2 4, the penetration of the outside air
source heat pumps in Finland during 1997-2007 is illustrated.

29
Table A2 4. Air source heat pumps in Finland during the years 1997-2007
Consumed
Year Amount Capacity Generated heat electricity Utilized Primary energy
[MW] [GWh] [GWh] [GWh]
1997 958 2,54 20,23 10,40 9,83
1998 1 662 4,41 35,20 18,11 17,09
1999 2 214 5,87 45,23 23,26 21,96
2000 3 014 7,99 53,90 27,73 26,17
2001 3 968 10,52 82,29 42,31 39,98
2002 5 872 15,57 123,57 63,53 60,05
2003 10 876 28,83 230,13 118,25 111,89
2004 18 876 50,03 403,08 207,06 196,02
2005 35 880 95,10 730,28 375,05 355,23
2006 65 880 174,60 1 356,28 696,84 659,44
2007 102 880 247,00 1 865,00 958,00 906,00

Furthermore, the penetration of the exhaust-air heat pumps in Finland during 1997-2007 is
presented in Table A2 5.

Table A2 5. Exhaust air source heat pumps in Finland during the years 1997-2007
Consumed
Year Amount Capacity Generated heat electricity Utilized Primary energy
[MW] [GWh] [GWh] [GWh]

1997 3 477 58,78 28,0 15,4 12,6

1998 3 578 59,93 29,6 16,3 13,3
1999 3 735 63,72 29,4 16,1 13,3
2000 4 035 70,15 28,0 15,4 12,6
2001 4 474 80,20 35,3 19,4 15,9
2002 5 114 93,47 40,8 22,4 18,4
2003 6 418 122,39 50,7 27,9 22,8
2004 8 018 157,61 59,4 32,8 26,6
2005 9 822 196,3 69,9 38,8 31,1
2006 11 875 239,8 87,2 48,0 39,2
2007 14 372 282,0 100,0 55,0 45,0

It is forecasted that the total amount of the heat pumps in Finland will be one million in year 2020,
while currently it is about half million. The annual installed amount of the new heat pumps will
develop as illustrated in the Table A2 6, while the total amount of heat pumps is developing as
presented in Table A2 7.

30
Table A2 6. The amount of the annually installed heat pumps; statistics from years 2009 and 2010
and penetration scenario to year 2020 (Finnish heat pump association).
Type 2009 2010 2011 2015 2020
Ground 6 137 8 091 11 000 15 000 20 000
source
Exhaust air 1 819 1 988 2 000 3 000 4 000
Air-to-water 1 819 1 150 3 000 5 000 6 000
Air-to-Air 57 977 53 821 60 000 50 000 40 000
Total amount 67 752 65 050 76 000 73 000 70 000
of annually
installed heat
pumps

Table A2 7. The total amount of the heat pumps in Finland; statistics from years 2009 and 2010
and penetration scenario to year 2020 (Finnish heat pump association).

2009 2010 2011 2015 2020

Total amount 340 000 390 000 465 000 750 000 1 000 000
of heat
pumps

A2.3. Policies related to heat pumps

There is a financial support for increasing the renewable energy usage of the residential buildings
(detached, attached, and apartment houses). The support can be used for replacing the oil- or
electricity based heating system by renewable energy sources, such as
 Ground source heat pump
 Air-to-water heat pump
 Wood-based heating (for instance heating by wood pellets)
The amount of the financial support is in maximum 20 % of the costs of the renovation, including
devices and materials. In addition, there is a means-tested financial support for increasing the
energy efficiency of the detached houses. The maximum amount of this support is 25 % of the costs
of the renovation. However, this benefit is only for low-income people and there are strict limits for
the incomes of the applicant.
Furthermore, there is a deduction of income taxes for households that purchase services. This
deduction is for the labor costs of the services, and in many cases it is used for renovation of the
houses, and hence can be used also for instance for the labor costs in the installing of the heat
pumps.

31
A2.4. Load characteristics
Evens et al. (2010) have analyzed the load curves of the different heating methods in Finland during
typical winter day. The results are presented in the Figure A2 3 and Figure A2 4. Electrical heating
with storage is typically used during night-time tariff in two-time tariff system. Hence, it is mostly
switched on between 10 pm and 7 am.

Figure A2 3. Load curves for different heating types during a typically January weekday in Finland
(Evens et al. 2010)

Figure A2 4. Load curves of detached house with different types of the heating (Evens et al. 2010)

Based on the load curves and statistics about the residential sector, Evens et al. (2010) have formed
aggregated load curves for residential sector for typical winter days (weekday, Saturday, Sunday),
presented in Figure A2 5.

32
Figure A2 5. Aggregated winter load curve for residential sector in Finland (Evens et al. 2010)

In ENETE-project, there have been analyses of the hourly metered consumption data, combined
with the questionnaire sent to the customers. Based on those analyses, for instance the energy
saving potential of the heat pumps, as well as temperature correlations of the heating loads has been
studied. In the Figure A2 6, the daily power consumption in two households as the function of the
outside temperature is presented. Households are otherwise similar, but one is with ground source
heat pump (left one in the figure) and another with direct electric heating.

33
Figure A2 6. Average daily electricity consumption of two similar households, one with ground
source heat pump (left) and another with direct electric heating (right). (ENETE 2010)
Based on above presented figure, the correlations between the temperature and electricity demand,
as well as saving potential and SPF of the ground source heat pump are calculated. Results were 2.4
SPF and 58 % saving potential for ground source heat pump, compared with direct electric heating.

A2.5. Possible use for DSM

Evens et al. (2010) have analyzed load flexibility in the Finnish residential sector during typical
winter day. Loads are categorized in the four categories:

 Easily manageable loads, such as heating and white goods

 Hardly manageable loads, such as cold appliances and computers
 Fixed loads: Lighting and audiovisual
 Undetermined loads, which includes undetermined end-use

Results of the analysis are presented in the Figure A2 7.

34
Figure A2 7. Estimated flexibility potential in the residential sector during an average winter week
(Evens et al. 2010).
Easily manageable loads consist mainly from electric heating. Storage electric heating is already
controlled by two-time tariff system, and there are considerations for more sophisticated control
systems, based for instance the spot-prices of the electricity. However, while storing electric heating
systems have already installed control systems, situation is not the same for the heat pumps. Hence,
in order to control heat pumps, the development for the practical load management application to
the customer end and modifications in the customer installations are needed, which obviously is
quite burdensome task.

In addition to above mentioned, Rautiainen et al. (2009) have studied the possibility to use
frequency dependent electric heating to manage disturbances in power system. Basic idea would be
to switch heating on and off based on not only the temperature, but also the frequency, and
maximum allowed temperature deviation from the normal situation (Tmax), as illustrated in Figure
A2 8.

Figure A2 8. a) conventional heating thermostat, b) frequency based electrical heating control.

(Rautiainen et al. 2009)

Although the principle was developed for electrical space heating, it could be used also with other
controllable loads, such as heat pumps or charging of the electric vehicles.
A2.6. Research projects and case studies
Following research projects, related to this topic, are ongoing or have been finished lately

35
 ENETE – Promoting Energy Efficiency by Energy Companies
o Project was carried out during 2008-2010, and was finished in August 2010
o Research institutes: Aalto-University (TKK), Lappeenranta University of
Technology, University of Eastern Finland, and VTT
o Financed by TEKES (Finnish funding agency for technology and innovations) and
private companies
o Major tasks of the project were:
 Demand control and management
 Energy monitoring services to the electrical customers
 Assessment of the spatial impact of the energy saving measures
 Energy conservation impacts on health
 Energy saving and energy business
o There have been analyzed, for instance, demand side management potential and
technology, impacts of the energy efficiency actions, such as heat pumps, on the
electricity distribution
o List of the publications will be in the final report (some of them listed in the
references section)
o Final report will be available later in 2010
 INCA – interactive customer gateway for electricity distribution management, electricity
markets, and services for energy efficiency
o Project was carried out during 2008-2010, and was finished in August 2010
o Research institutes: Tampere University of Technology, Lappeenranta University of
Technology, and VTT
o Financed by TEKES (Finnish funding agency for technology and innovations) and
private companies
o Major tasks of the project were:
 The overall concept; functions, exploiting processes and business models
 Determination and demonstration of functions and technological solutions of
network interface
 Functions of advanced automatic meter reading (AMR)
 Network connection of distributed generation as a part of interactive customer
interface
 Network interface of plug-in hybrid cars and effects on network infrastructure
and electricity market
 Technological solutions and business models for market and price oriented
demand response
 Effects of interactive customer interface on overall system-wide energy
efficiency and survey of possibilities to develop energy efficiency services

36
  Exploiting data of interactive customer interface in enhancing customer load
modelling for network calculations, in network asset management and in active
distribution management
o List of the publications will be in the final report (some of them listed in the
references section)
o Final report will be available later in 2010
 SGEM – Smart Grids and Energy Markets
o Five years research program (2009-2014), first funding period 9/2009-2/2011
o Financed by TEKES (Finnish funding agency for technology and innovations) and
private companies
o All the major research institutes and private companies related to the field of the
electricity distribution take part on the research program
o Research themes include visions for smart grids towards 2035, active resources
(demand response, EVs, DG), management and operation of the grid, and
development of the electricity markets
o Some of the publications listed in the reference section

37
.

A2.7. References of the national part

Evens, C., Kärkkäinen, S., and Pihala, H. 2010. Distributed resources at customers’ premises.
Research report VTT. 2010.

Final report of the ENETE project (Promoting Energy Efficiency by Energy Companies). August
2010. Aalto University, VTT, University of Eastern Finland, Lappeenranta University of
Technology

Belonogova, N., Lassila, J., Partanen, J. Effects of demand response on the end-customer
distribution fee. CIRED Workshop, June 2010, Lyon, France

Belonogova, N., Lassila, J., Partanen, J. Effects of demand response on the distribution company
business. NORDAC 2010, September 2010, Aalborg, Denmark

Rautiainen A., Repo S., Järventausta P., Using frequency dependent electric space heating loads to
manage frequency disturbances in power systems. Proceedings of the PowerTech 2009, Romania,
June 2009

Tuunanen, Jussi. ”Lämpöpumppujen vaikutukset sähköverkkoliiketoiminnan kannalta” (The effects

of the heat pumps from the perspective of the electricity network business). Master’s thesis.
Lappeenranta University of Technology. 2009 (In Finnish)

Tuunanen, J., Honkapuro, S. & Partanen, J. ”Energy efficiency from the Perspective of Electricity
Distribution Business”. The proceedings of NORDAC 2010, 6-7 September 2010, Aalborg,
Denmark

Merkebu Zenebe Degefa, Energy Efficiency Analysis of Residential Electric End Uses: Based on
Statistical Survey and Hourly Metered Data. Masters Thesis, Aalto University, 2010.

Merkebu Zenebe, Anssi Ahola, Matti Lehtonen, Energy efficiency analysis of residential electric
end uses. NORDAC 2010 Conference, Aalborg, 6.7.9.2010.

Finnish Heat Pump Association (www.sulpu.fi)

Statistics Finland (www.stat.fi)

38
Appendix 3 Present situation of heat pumps in France

Heat pumps are devices which collect the heat from a source in order to restore it where it is
needed. There are various types of heat pumps depending of the source where the heat is collected,
the principal ones being geothermal heat pumps and air source heat pumps. These devices are
interesting for their low electricity consumption compared to other classic heating technologies.
A3.1. Technological and commercial offer in France
Heat pumps are technologically and commercially very well developed on the French market.
Principle
The heat pump principle is to use a fluid running in a closed loop circuit successively collecting
heat from a cold source (3 in Figure A3 1 below) and restoring it to a hot source (1 in Figure A3 1
below). The hot source is always a building to heat but the cold source can be either ground, water,
or air.
The phenomenon of making colder a cold source in order to make hotter a hot source is of course
not natural. In order to work, the fluid in the heat pump needs to be in turns expanded (2 in Figure
A3 1 below) then compressed (4 in Figure A3 1 below). The expansion occurs before going through
the cold source so that the fluid can vaporizes (in 3) to collect the heat of the cold source. The
compression occurs before going through the hot source so that the fluid can liquefies (in 1) to
release the heat to the hot source. External energy (most of the time electrical) is therefore needed
for the compression stage. However this consumption is much less than what would need a classic
heating device for the same heating power.

Figure A3 1. Principle of a heat pump cycle

Coefficient of performance – COP
The COP is a coefficient determining the performance of heat pumps. It is defined as the ratio of the
useful heat over the work input. A classic electric heater has a ration of 1. Heat pumps usually have
a COP between 2 and 4, but it can be much higher in certain types of applications (low output
temperature for example) and technologies.
Technological offer
As previously said, there are various heat pumps types with different characteristics such as from
what the heat is extracted, the type of compression method and the types of fluid circuits.
 Types of fluid circuits
39
 o Direct expansion circuit: The same fluid is used for the heat collector, the pump and
the heat emitter.
o Indirect expansion circuit: Two different fluid circuits are used, one for the heat
collector and the pump and one for the heat emission side.
o Intermediate fluid circuit: Three different fluid circuits are used, one for the heat
collector, one for the pump itself, and one for the heat emitter.
 Types of heat pump
o Air heat pump: these heat pumps collect heat from the ambient air, either from
outside or from an exhaust

Figure A3 2. Air heat pump (here with floor heating system)

o Geothermal heat pump: these heat pumps collect heat directly from the ground. Heat
collectors can either be horizontal or vertical, depending of the type of heat exchange

Figure A3 3. Geothermal heat pump with horizontal and vertical collectors

The table below summarizes the type of fluid circuits that are used depending of the type of heat
exchange and the type of heat pump.

40
 Air Heat Pump Geothermal Heat Pump
Type of fluid
circuits recycled
heat from horizontal vertical
heat from
outside collectors collectors
inside

indirect
air / water
expansion

air / air direct expansion

ground / direct
ground expansion
ground / indirect
water expansion
glycoled
intermediate fluid
water / water

Figure A3 4. Type of fluid circuits depending of the type of heat exchange and technology
Geothermal heat pumps globally have a very goof COP and are very effective during cold weather.
Indeed they collect heat from the ground at depths where the temperature is almost constant all year
round. This technology is often used alone as it can usually provide all the heating needs of the
building/house where it is installed.
Air heat pumps generally have a lower COP than geothermal heat pump. And by very cold weather
(-10°C/-20°C) their performances become bad and the heat pump can stop functioning. They are
therefore often used with an additional heating system which works as backup during high heating
needs.
Both of these technologies contribute in increasing the electricity peak demand that occurs for
heating needs (daily, seasonally, but also as well at local network level than as national network
level), especially if they are started up at the same time as when the peak demand occurs because of
the starting of the compressors.
Commercial offer
There is a great diversity of the commercial offer of heat pumps in France since this technology is
now well established on the market.
Certita is a company which delivers the “NF Heat Pump” label (French Norm). Up to the 9th of
November 2011 their website gathered a list of 1702 different heat pump products manufactured by
66 different brands covering all the different technologies described above.
“NF Heat Pump” is a voluntary label which needs to be asked by manufacturers. This label
guarantees the compliance of the products regarding the different norms (French, European or
international) and regarding minimum performances fixed by the Certification Rules of the mark
“NF Heat Pump”.1
A3.2. The current state of Heat Pumps installations
In French Energetic Assessment2 reports, published each year, the total number of heat pumps
installed in the residential sector in France in 2008 was 350 000 (not counting air/air type), and was
estimated to be around 550 000 at the end of 2010, plus 400 000 air/air type heat pumps.

1
http://www.certita.org/files/Certification-rules-NF.pdf
2
Bilan Energétique de la France pour 2010 – published in 2011 – MEDDTL

41
The French Organization for Heat Pump (AFPAC) publishes3 numbers that are in the same range
and that come from statistics of sales produced by the different manufacturers of heat pumps. They
give a total number of heat pumps (still without counting the air/air heat pumps) in 2010 of
600 000. However the sales in 2009 dropped by 20% and the sales of 2010 by 35%.
In a report on buildings, energy, and environment4, the ADEME counts 27.5 millions of main
homes. The penetration rate of heat pumps in the residential sector is therefore about 3.4% (950 000
heat pumps for 27.5 millions possible installations).
From an energetic point of view, these 600 000 heat pump units produced 1649 kTep in 2010
(according to the 2010 French Energetic Assessment, published by the Department of Ecology,
Sustainable Development, Transport and Housing).
Impact on the electrical network
Most heat pumps simply use an electric compressor. They are therefore a heating device using
electric energy which contributes to the electric peak demand which occurs when heating needs are
high.
Two characteristics of this device increase this peak demand contribution:
 The starting current needed when starting the compressor can be relatively high and induce
strong constraints on the network, especially if they all start in the same time lapse
 When the weather is particularly cold, and that the COP of the heat pump (air heat pump
only, not the geothermal one) is at its lowest, the electric consumption is increased even
more. The contribution to the electric peak demand is consequently also increased, at the
worst moment.
A3.3. Deployment perspectives
Heat pumps are already well deployed in France. The heat pump market is now well established.
This is due to the early emergence of this technology which occurred after the 1979 energy crisis,
when fuel oil prices went high. But it is only since 1997 that the market, helped by a quality control
of products and new regulations, slowly started to grow.

A3.3.1 Current Regulations

The French government has set up different measures to help users to invest in heat pumps.
Sustainable development income-tax credit5
An income-tax credit on sustainable development installations was set up as a result of the
Environmental Grenelle Agreements. This measure permits to deduce from one’s tax return a
percentage of the investments made in different sustainable development installations. For
geothermal heat pump, the tax credit was of 40% in 2010, and is of 36% in 2011. For air/water heat
pump, the tax credit was of 40% in 2009, 25% in 2010, and is of 22% in 2011. Air-air heat pumps
are often used as a cooling equipment, heating being secondary, they are therefore not subsidized by
the government.
The tax credit was reduced in 2011 by the government for economical reasons.

3
La climatisation – Les pompes à chaleur – Les chiffres du marché français de janvier à décembre 2010, PAC &
Clim’info and AFPAC
4
Bâtiment – Energie et Environnement – 2010, ADEME Collection chiffres clés
5
Article 200 quater du code des impôts Modifié par Décret n°2011-645 du 9 juin 2011 - art. 1

42
“Eco”-loan at 0% interest
The government also allows “eco”-loans at 0% interest for ecological installations. There are of
course some specific criteria to fulfil in order to benefit from this eco-loan. In the case of heat
pumps, construction work such as drilling for geothermal heat pump for example can benefit from
this loan. Renovation work can also benefit from the loan but only if there is a substantial energy
saving with the new equipment.
VAT of 5.5%
The VAT is reduced to 5.5% instead of 19.6% for heat pumps installations.
Norms
There are also norms controlling the installations of heat pumps. Their power is limited in
accordance to their type of connection to the grid and type of engine starting process. Below is a list
of the different norms and their specification:
- NF-C15-100: current limitation for low voltage grid connection (45A for a single
phase connection, 60A for a three-phase connection)
- EN 61000-3-3: terms on voltage fluctuation
- EN 61000-3-2: terms on harmonic’s power

A3.3.2 Scenarios and forecasts

In August 2010, a National Plan in Favour of Renewable Energies6 was delivered to the European
Commission. This plan uses the scenario considered by the Program of Investments into Heat
Production7 delivered by the government to the French Parliament in 2009.
The program of investments agrees on a goal of 1200 kTep of heat production until 2012 and 1600
kTep until 2020, considering that in 2010 the heat production target was of 886 kTep.
In the 2010 French Energetic Assessment8 (published in 2011), the numbers given for 2010, 1 336
kTep, are 151% higher than the objective, 886 kTep.
The scenario considered by the Program of Investments in Heat Production is for a total of 2
millions of housing equipped with a heat pump unit. This scenario also predicts a share of 20% of
heat pump being geothermal, the rest being air/water heat pump.
A3.4. Conclusion
Heat pumps have come to a stage where the proposed products (air heat pump, geothermal heat
pump) are mature, but where the penetration rate at a national level is still low. In 2010, there are
about 950 000 heat pumps installed in France, of which 400 000 air/air type heat pumps. Indeed,
compared to the 27.5 millions housing which could possibly possess a heat pump installation, the
penetration rate obtained is approximately 3.4%.
There is a strong normative supervision of heat pumps installations but it is mainly concerning the
start-up current. The fact that heat pumps mainly consume electricity at the precise moment of the
peak demand (due to classic electric heating devices) is not supervised by regulations of any kind. It

6
Plan National en faveur des Energies Renouvelables – Août 2010 – MEDDTL
7
Programmation Pluriannuelle des investissements de production de chaleur - MEDDTL
8
Bilan Energétique pour 2010 – published in 2011 – MEDDTL

43
should be kept in mind if a major development of heat pumps occurs. However the number of
installations per year has decreased of 20% in 2009 and 35% in 2010.

44
Appendix 4 Present situation of heat pumps in the
Netherlands

A4.1. Heat Pump Technology

The Netherlands has one of the largest fossil gas field reserves in the world and there is a large
drive to integrate upcoming biogas production facilities in the gas grid. The gas grid net transmits 8
times as much energy compared to the electricity grid. Heating and hot tap water preparation
systems in the Netherlands, therefore, use natural gas as a fuel. In contrast, heat pump technology is
in the process of becoming widely spread in the Netherlands, because it allows, if installed and
configured properly, efficient electrification of heating. On the central production level, electricity
can be de-carbonized by using renewable energy resources or carbon dioxide can be captured more
easily. Therefore it provides for a future proof heating system solution for well insulated buildings
with low heat demands.

Figure A4 1. Heat demand as measured in Dutch homes (MJ/h)

In Figure A4 1 the measured heat demand for heating and tap water production of Dutch homes
over a representative year is depicted. In dimensioning heat pump technology in the Dutch climate
regime, it is difficult to cover the whole load-duration curve of a whole year. Especially for the peak
heat demand periods, the required additional investment to cover all peaks is disproportionally high
and temperature levels that can be reached are too low to prevent effective legionella
contamination. Another problem with some heat pump systems is their decreasing efficiency and
defrosting problems if they have to pump the heat to temperatures below a certain limit. Therefore,
additional peak heat production capacity is co-installed in most cases. This capacity typically

45
consists of small, high-efficiency, gas boilers or wire-heated resistance elements. So, most heat
pumps are of a hybrid nature being either serial or parallel.

Figure A4 2. Example of hybrid system

In the last few years, also hybrid systems relying on air-water heat exchange have been developing
especially in the residential sector as a successor of the high-efficiency gas fired heaters. Examples
of these have now found their place on the market. Some of systems also are connected to the air
inlets and outlets of homes and take part in the heating as well in the ventilation of homes. These
types of systems are also used combined with insulation packages in renovation of homes. In
bivalent systems a discrimination has to be made between parallel and serial systems. Recently also
the ultra-high efficiency heater has been brought to the market as a third alternative. This system is
based on the Organic Rankine Cycle physical principle, that aids in recovering extra energy from
the primary power generation process.
A4.2. Heat/cold storage sources
A4.2.1 Aquifers as heat storage
In the Netherlands, there is a large installed base of heat pumps, based on aquifer storage of heat,
especially in utility buildings (penetration in the Netherlands 30-40 percent for new projects). The
opportunities of these types of heat storage depend on the absence of long term local subsurface
flows of water in geological strata at a certain suitable depth. In the Netherlands, generally, the
possibilities at most locations are good (see Figure A4 3; the blue-striped areas are less suited, the
red dots represent example projects). The challenges in operating these devices is maintaining the
heat/cold balance during a year to guarantee operation at the optimal COP and to comply to
municipality license conditions and in configuring in relation to the other heat/cold generating
devices and the realized user comfort. The latter provides for a major challenge due to the slow
reaction of well-insulated buildings in reaction to control actions of the building management
system and balancing with other heat producing devices (e.g. computers and printers). Aquifers
allow comfort control by delivering cooling capacity in summer and heating capacity in winter. Due
to their good insulation and their design to be heated passively, some office buildings currently have
their switching point between heating and cooling at a temperature as low as 13 degree centigrade.
In residential context, aquifer systems are used for apartment houses. When applied, the pay-back
time of systems in the order of 5-10 years.

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For individual homes the initial cost of aquifer based types of heat pumps in most cases are
prohibitive. Furthermore, it is a storage technology, which hardly can be used in renovation of
existing homes.

Figure A4 3. Aquifer possibilities in the Netherlands; the striped areas are less suitable

A4.2.2 Hot water tanks as heat storage

The heat capacity of a water tank containing 95 degrees Celsius hot water at an ambient temperature
of 21 degrees is 87.2 Wh/kg as compared to electricity storage densities for Li-ion batteries of 140
Wh/kg. Thus, comparing to electricity storage batteries, hot water tanks provide a cheaper means of
energy storage. In Dutch households there has not been a significant spread of electric boilers with
storage tanks. Currently there is renewed interest into these types of devices due to their connection
to power grid operation (see Figure A4 4). These device allow uncoupling of heat demand and
electricity demand in such a way, that loads can be shifted to low price areas. The operation
mechanism and market portfolio support possibilities are similar to the horticultural sector, apart
from having an electricity price profile following heat demand opposed to an anti-cyclic setting
with the highest heat demand during the night.

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 Figure A4 4. A storage tank along a micro-CHP

A4.2.3 Homes as heat storage

Buildings have, due to their mass, inherent heat storage capabilities. Once very well isolated, heat
generation and delivery can be decoupled in time. Indeed, because most systems are used with low
capacity heat generators, the latency may be very high. This poses problems to control and feedback
to users. Systems are not tuned to follow a varying temperature profile but try to follow a more or
less straight line.

A4.3. Heat pump projects in the Netherlands

In the utility building sector heat pumps have found their way in installation system design and
configuration. Their use has been awarded in the design performance specification index. Their
penetration has reached a 30-40 % level. In Figure A4 3 the locations of projects have been
indicated by red dots.
In the residential sector, heat pumps are also attributed a substantial contribution to the Energy
Performance Conformance index, that Dutch newly built homes have to comply. Therefore there is
experience with several large projects. It appears, that utilizing heat pumps in projects generally
requires a lot of attention and tuning from the installer. If not properly configured, heat pumps are
shown not to reach their design efficiency. Design time operational requirements and actual
performance and most importantly electricity consumption figures show a much higher spread than
comparable more traditional heating systems. The major reason for this is in the electric resistance
wired peak heater, that is activated to a larger extent by user thermostat settings in time. This
particularly holds for bivalent heat pumps, in which the optimal strategies have to be found for both
heating systems in the context of the building thermal behavior and the user temperature profile.
Apart from the electricity bills in some occasions, users generally are satisfied, although comfort
complaints occur sometimes. Usage of heat pumps for cooling adds to their economic application
also in this sector.

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A4.4. Policy perspectives for heat pumps
As already mentioned applying heat pump systems in homes and utility buildings is taken up in the
design time energy performance index (EPC), to which newly built homes in the Netherlands have
to comply. This makes it easy to compare heat pumps to other measures to conserve energy. The
advantage of heat pumps for project developers is, that they shift the operational costs to the home
owners.
Heat pumps in the Netherlands in existing homes are subsidized on a per investment basis. For
home owners the amount of money is approximately 5000 euro for water/water heat pumps and
2000 euro for air/water heat pumps. Allocated budgets change in time depending on the policy.

A4.5. Demand response perspective of heat pumps

A4.5.1 Commercial perspective

Figure A4 5. Figure 2 Year profiles of total load, merit order, Amsterdam Power eXchange and
imbalance market prices
Figure A4 5 shows the load profile of the Dutch system. The plot shows the per-hour development
(0-24) and per-day development (1-365) in one plot. The system is characterized by a relatively

49
high base load, 16 hr time span and 12 hr timespan block load and peak load, which is served by
large combined cycle gas turbines. Figure A4 5 further shows the price development of electricity
prices in Euro/MWh on the APX market and the imbalance market. It can be seen, that there is a
large price volatility during the day but also during the year. For heat pumps, there is a significant
demand response advantage, by shifting the time electricity is consumed. The 1-hour timeslot
resolution of the APX, but also the 15 minute timeslot of the imbalance market can be used. As can
be seen in the right part of the plot, imbalance prices are peaking during 8:30 due to portfolio
owners not able to ramp-up their large generators, that typically have a 30-45 min startup-time.
Once being present in substantial; amounts in a portfolio, response loads can be used to compensate
and thus can be used to make rectangular blocks to trade on the APX. Apart from being able to
passively balance by influencing their operational strategy, also active balancing can take place at
the prices at the imbalance market. On the reverse side, increased consumption by heat pumps at
high peak periods might lead to a new customer profile segment for heat pump owners with higher
tariffs.

A4.5.2 Distribution system operator perspective

One of the challenges of the near future for a more renewable Dutch electricity infrastructure is the
embedding of high concentrations (‘hotspots’) of heat pumps in newly built domestic residences. In
the Dutch situation demand of electricity occurs simultaneously with demand of heat, high
electricity peak loads in the low voltage network are expected. In ‘flameless’ residential areas in the
Netherlands, gas infrastructure investment costs are not done. These areas have problems in
operating their distribution assets to prevent overloading in case there is an extra cold winter day.
The power of the heat pump is typically 2.2 kW and the power of the electric resistance heating,
which is available as a backup for cold days, is 6 kW. The peak power exceeds the design
connection power of 1.1 kVA, which is a characteristic value for a Dutch household at the
distribution level. Another problem is the blackstart of the grid in case of an outage in a prolonged
cold period. All heat pumps will come in at the same time with full power requirements giving too
large transformer loads for a prolonged period, possibly leading to new blackouts.
A4.6. Heat pump introduction scenarios in the Netherlands
Heat pumps have been attributed a large role in leading to more renewable and sustainable heating
systems in the Netherlands. However the increased requirements in producing peak heating capacity
for tap water (comfort requirements have risen from CW/3 to CW/6) and in cold weather situations
coupled with the cost for the technology have hindered massive introduction of systems. Hybrid
systems are now most close to the market. These entail electricity or gas based heat pumps for the
base load and gas fired high-efficiency boilers as add-ons to generate tap water. The most recent
projection is from 2009. The scenario is for hybrid air-water heat pumps.

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Figure A4 6. Penetration of heat pumps in target years for two scenario’s

Figure A4 6 shows the penetration of electric and hybrid heat pumps in two scenario’s. In the first,
75 percent penetration in the replacement market for traditional high-efficiency heating systems is
assumed. The second is less ambitious and leads to a penetration of 40 % in the replacement
market.

Figure A4 7. Carbon dioxide reduction potential and energy saving potential in the Dutch situation

In Figure A4 7 the associated resulting carbon dioxide reduction and savings potential are given for
the two scenario’s. The chance of success for these scenario’s depends on the growth to a renewable
electricity society and of the fossil fuel costs.

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A4.7. Research and demonstration projects in the
Netherlands
As mentioned earlier, rollouts of heat pumps in the utility and residential building sector have taken
place during the last decade. In the field of using demand response and storage, very limited project
experience exists.
A project currently in operation in Hoogkerk is the ‘PowerMatchingCity’ field
test[http://www.powermatchingcity.nl/UserPortal/?Length=0], executed as one of the field tests in
the EU-FP6 Integral-project[http://www.integral-eu.com/index.php?id=1]. In this project, micro-
CHPs and hybrid heat pumps, each with ample heat storage, are operated in 25 households
equipped with ‘smart’ in home gateways, that coordinate filling/emptying buffers and operation of
the comfort devices to achieve a number of goals. The project is one of the rollouts of the
PowerMatcher software package[http://www.powermatcher.net/in-a-nutshell/], in which
coordination takes place using software agents. The project also includes an extensive data
collection infrastructure and user portal. The goals implemented in use cases include short lead time
commercial optimization and distribution optimization, besides wind imbalance compensation and
valorization of renewables.
Simulation studies have been done on the ‘black-start’ problem in the SmartProofs
project[http://www.smartproofs.nl/wat-doen-we], that will be followed by a real field test in a
‘hotspot’ heat pump area. In Virhe. Viitteen lähdettä ei löytynyt. the results of intelligent control a
restart with 100 heat pump loads after a blackout can be seen.

Figure A4 8. Load on a transformer station with heat pumps with and without coordination

In the Netherlands a taskforce SmartGrids has reported to the government recently. A dozen new
projects with 500 residential customers on average will be tendered, in which also clusters of heat
pumps will participate.

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Appendix 5 Present situation of heat pumps in Spain
A5.1. Current Spanish heat pump market

According to the Spanish National Institute of Statistics, in 2008 6,3% of houses in Spain have a
heat pump installed.

Heat pumps (% of total households)

TOTAL NACIONAL 6,3
Andalucía 3,8
Aragón 2,7
Asturias (Principado de ) .
Balears (Illes) 13,2
Canarias 0,5
Cantabria 1,2
Castilla y León 0,4
Castilla -La Mancha 2
Cataluña 7,1
Comunitat Valenciana 20,8
Extremadura 14,4
Galicia 1,3
Madrid (Comunidad de) 2,3
Murcia (Región de) 28,1
Navarra (Comunidad Foral de) 0,9
País Vasco 0,8
Rioja (La) 1,4
Ceuta y Melilla 4,6

Figure A5.1. Heat pump installed in Spain in 2008

Regarding the impact in the consumption of a household, REE studies shows that in a working day
in the winter it counts for 0,68% of the peak demand of the total peninsular system. On the other
hand it counts 2,24% of the peninsular peak demand during a working day in summer.
Regarding its impact in the daily load shape of residential sector, next figures shows the different
uses of electricity and its weight in a working day in winter and summer.

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Figure A5.2. Daily load in residential sector in winter working day of 2008

Figure A5.3. Daily load in residential sector in summer working day of 2008

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Internal REE studies forecast that, taking into account the efficient scenario for 2020 it could imply
9,3 M of heat pumps in Spain.

Regarding heat pumps there is an important trend identified in Spain: the geothermal heat pump
which are being favored by Spanish regulation and policies (instead, the heat pumps without
geothermal do not have any incentive in Spain).

This market is still very small in Spain (Figure A5.4) however Spanish regions are subsiding up to
20% of the total cost of geothermal heat pumps.

Figure A5.4. Evolution of the geothermal heat pump market in some European market

In fact, currently the number of geothermal heat pumps is estimated in only 3000 however in the
short term is estimated to grow in 2000 new unities per year and in the medium term it can rise up
to 10.000 unities per year.

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 Figure A5.5. Annual installation of geothermal heat pumps in Spain

Source: “Análisis de la bomba de calor geotérmica en el panorama energético español”, Perez. D,

Aceves. C. II Congreso de energía Geotérmica en la edificación y en la industria.

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Appendix 6 Overview of the IEA Demand-Side
Management Programme

IEA Demand Side Management Programme

The Demand-Side Management (DSM) Programme is one of more than 40 co-operative energy
technology programmes within the framework of the International Energy Agency (IEA).The Demand-Side
Management (DSM) Programme, which was initiated in 1993, deals with a variety of strategies to reduce
energy demand. The following 16 member countries and the European Commission have been working to
identify and promote opportunities for DSM:

Austria Netherlands
Belgium Norway
Canada New Zealand
Finland Spain
France Sweden
India Switzerland
Italy United Kingdom
Republic of Korea United States

Sponsors: RAP

Programme Vision during the period 2008 - 2012: Demand side activities should be active elements
and the first choice in all energy policy decisions designed to create more reliable and more sustainable
energy systems

Programme Mission: Deliver to its stakeholders, materials that are readily applicable for them in crafting
and implementing policies and measures. The Programme should also deliver technology and
applications that either facilitate operations of energy systems or facilitate necessary market
transformations

The Programme’s work is organized into two clusters:

 The load shape cluster, and
 The load level cluster.

The ‘load shape” cluster will include Tasks that seek to impact the shape of the load curve over very short
(minutes-hours-day) to longer (days-week-season) time periods. Work within this cluster primarily
increases the reliability of systems. The “load level” will include Tasks that seek to shift the load curve to
lower demand levels or shift between loads from one energy system to another. Work within this cluster
primarily targets the reduction of emissions.

A total of 24 projects or “Tasks” have been initiated since the beginning of the DSM Programme. The
overall program is monitored by an Executive Committee consisting of representatives from each
contracting party to the Implementing Agreement. The leadership and management of the individual Tasks
are the responsibility of Operating Agents. These Tasks and their respective Operating Agents are:

Task 1 International Database on Demand-Side Management & Evaluation Guidebook on the Impact of
DSM and EE for Kyoto’s GHG Targets - Completed
Harry Vreuls, NOVEM, the Netherlands

Task 2 Communications Technologies for Demand-Side Management - Completed

Richard Formby, EA Technology, United Kingdom

Task 3 Cooperative Procurement of Innovative Technologies for Demand-Side Management – Completed

Dr. Hans Westling, Promandat AB, Sweden

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Task 4 Development of Improved Methods for Integrating Demand-Side Management into Resource
Planning - Completed
Grayson Heffner, EPRI, United States

Task 5 Techniques for Implementation of Demand-Side Management Technology in the Marketplace -

Completed
Juan Comas, FECSA, Spain

Task 6 DSM and Energy Efficiency in Changing Electricity Business Environments – Completed
David Crossley, Energy Futures, Australia Pty. Ltd., Australia

Task 7 International Collaboration on Market Transformation - Completed

Verney Ryan, BRE, United Kingdom

Task 8 Demand-Side Bidding in a Competitive Electricity Market - Completed

Linda Hull, EA Technology Ltd, United Kingdom

Task 9 The Role of Municipalities in a Liberalised System - Completed

Martin Cahn, Energie Cites, France

Task 10 Performance Contracting - Completed

Dr. Hans Westling, Promandat AB, Sweden

Task 11 Time of Use Pricing and Energy Use for Demand Management Delivery- Completed
Richard Formby, EA Technology Ltd, United Kingdom

Task 12 Energy Standards

To be determined

Task 13 Demand Response Resources - Completed

Ross Malme, RETX, United States

Task 14 White Certificates – Completed

Antonio Capozza, CESI, Italy

Task 15 Network-Driven DSM - Completed

David Crossley, Energy Futures Australia Pty. Ltd, Australia

Task 16 Competitive Energy Services

Jan W. Bleyl, Graz Energy Agency, Austria
Seppo Silvonen/Pertti Koski, Motiva, Finland

Task 17 Integration of Demand Side Management, Distributed Generation, Renewable Energy Sources
and Energy Storages
Seppo Kärkkäinen, Elektraflex Oy, Finland

Task 18 Demand Side Management and Climate Change - Completed

David Crossley, Energy Futures Australia Pty. Ltd, Australia

Task 19 Micro Demand Response and Energy Saving - Completed

Barry Watson, EA Technology Ltd, United Kingdom

Task 20 Branding of Energy Efficiency

Balawant Joshi, ABPS Infrastructure Private Limited, India

Task 21 Standardisation of Energy Savings Calculations

Harry Vreuls, SenterNovem, Netherlands

Task 22 Energy Efficiency Portfolio Standards

Balawant Joshi, ABPS Infrastructure Private Limited, India

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Task 23 The Role of Customers in Delivering Effective Smart Grids
Linda Hull. EA Technology Ltd, United Kingdom

Task 24 Closing the loop - Behaviour change in DSM, from theory to policies and practice
Sea Rotmann, SEA, New Zealand and Ruth Mourik DuneWorks, Netherlands

For additional Information contact the DSM Executive Secretary, Anne Bengtson, Box 47096, 100 74
Stockholm, Sweden. Phone: +46 8 510 50830, Fax: +46 8 510 50830. E-mail: anne.bengtson@telia.com

Also, visit the IEA DSM website: http://www.ieadsm.org

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