W7UP3 – Trade-offs in Levelised Cost of Heat among different heating and storage technologies
9th March 2016 Zhikun Wang

Trade-offs in Levelised Cost of Heat among different heating and storage technologies

Zack (Zhikun Wang), UCL Energy Institute


The UK government has set objectives to reduce dependency on imported fossil fuels and carbon emissions, as well as to improve energy efficiency. Heat is the major component of UK energy consumption. Renewable electricity and low-carbon heating are key approaches to reducing fossil fuel demand and greenhouse gas emissions. Policies have been introduced to encourage installation of low-carbon, energy-efficient heating measures. However, technical, social and financial challenges have come with new heating options.

There have been intensive studies on individual heating technologies using different methods, including cost-benefit assessments, life-cycle assessments and energy technology and system models. ‘Levelised Cost of Energy’ is an effective way to compare the costs of different energy generation options by taking into account all cost elements throughout their lifetimes. Heating technology performances and costs vary significantly according to their scale, location and how they are operated. However, there has been very little research on levelised cost of heat (LCOH) with different heating technologies in the UK, and almost no LCOH studies have integrated heat storage options.

This study aims to fill this gap by investigatingthe trade-offs in LCOH for different heating and storage technologies. The results of this study could provide an overview of different heating and storage options for the UK, with evaluations of their costs and performances, along with future technical, economic and policy uncertainties. It could also provide insights for energy policymaking and the construction, building services and heating industries.

Project Team

Zack Wang

Robert Lowe
Francis Li