Costs of parallel distribution grid infrastructures

In the analysis “Costs of parallel distribution grid infrastructures”, the costs of constructing and operating (parallel) heating infrastructures with different degrees of utilization are determined. District heating, hydrogen and electricity distribution grids are considered. In a first step, data on distribution network costs and settlement types are collected and processed. Based on this data, the investment and operating costs of parallel infrastructures are calculated and qualitatively classified. Finally, the existing regulatory framework is discussed with regard to incentives for parallel distribution grid infrastructures.

The analysis shows that the lowest grid usage costs are achieved by using the existing infrastructure as much as possible to cover the total heat demand and avoiding expansion. The construction of new infrastructure only appears to make sense if other distribution grid infrastructure can be decommissioned in the long term in order to achieve the highest possible degree of utilization and thus lower grid usage costs. In all the types of settlement examined, electricity and hydrogen grids have significantly lower grid usage costs than district heating. Supplying the heat demand via the electricity infrastructure seems particularly sensible when heat line densities are low or the costs of converting the natural gas grid are uncertain. Despite high grid usage costs, a supply via district heating could make sense when all costs are considered.

Type of Publication: Analysis
Financial support: Förderinitiative Wärmewende der Gesellschaft zur Förderung des Energiewirtschaftlichen Instituts an der Universität zu Köln e. V.
Written by: Tobias Sprenger, Maximilian Walde, Stephan Terhorst, Cordelia Frings
Date: August 2024
Type of Publication: Analysis
Financial support: Förderinitiative Wärmewende der Gesellschaft zur Förderung des Energiewirtschaftlichen Instituts an der Universität zu Köln e. V.
Written by: Tobias Sprenger, Maximilian Walde, Stephan Terhorst, Cordelia Frings
Date: August 2024