We haven’t talked for a while about our real estate sites. Kapacity.io started off in commercial and large residential heat pumps sites. We work together with major Finnish and European real estate owners, like DB Schenker , to provide excellent indoor conditions while making buildings more sustainable.
In the quest for more sustainable and cost-effective heating solutions, businesses are increasingly turning to hybrid heating systems. These innovative setups combine the reliability of traditional heating (such as natural gas, heating fuel etc.) methods with the energy efficiency of modern technology, such as heat pumps.
Let’s say you are a OPEX driven building owner and buy at least partly your electricity from the wholesale electricity market, it leaves you vulnerable to price fluctuations. At the forefront of optimizing these hybrid systems for maximum efficiency and cost savings is Kapacity.io’s platform for smart energy management.
In this post, we'll delve into what hybrid systems are, how they work, and the way Kapacity.io is enhancing their potential through advanced controls and a new price threshold feature.
Understanding Hybrid Heating Systems Hybrid heating systems combine two heating sources to provide energy-efficient, cost-effective, and reliable heating. These systems often combine a conventional combustion furnace (utilizing natural gas, propane, or heating oil) or district heating with a heat pump, which may draw energy from the air, ground, or water. The beauty of a hybrid system lies in its flexibility; it can switch between energy sources based on which is most efficient or cost-effective at any given time.
In a hybrid heating system, different technologies work together seamlessly. For example:
An air-source heat pump can serve as the primary heat source in mild weather because it is highly efficient at temperatures close to the outdoor temperature. A gas or oil boiler is utilized on extremely cold days when the air-source heat pump is no longer efficient. This ensures that the home remains warm even during the harshest winter conditions. Solar energy can be integrated into the system to heat water or assist in heating when direct sunlight is available, reducing the need for other forms of energy for heating. The Role of Kapacity.io in Hybrid Heating Traditionally, the Kapacity.io platform utilizes weather forecasts or a combination of weather forecasts and variable rate tariffs to control heating systems. This approach allows for anticipatory adjustments to heating strategies, ensuring that homes and buildings are utilizing the most cost-effective energy source available based on current and forecasted conditions.
The Kapacity.io new price threshold feature for hybrid sites Building upon its sophisticated control mechanisms, Kapacity.io has introduced a new feature that promises to revolutionize how hybrid systems are managed: the implementation of a price threshold. This feature enables the system to make real-time decisions about which energy source to use based not only on efficiency and weather conditions but also on the actual cost of energy.
In an example building, Kapacity.io can set a control limit based on the spot price of electricity — such as 25 cents per kWh (excluding VAT). This means that if the price of electricity rises above this threshold, the system can automatically switch to a more cost-effective heating method, such as the combustion furnace, until the price falls back below the threshold. Conversely, when electricity prices are low, the system will leverage the heat pump, capitalizing on its efficiency and the lower cost of electricity. The threshold can be set up as required by the building owner. Roughly, building owners set the threshold by calculating
threshold = COP * cost of alternative fuel
Next, let’s look at an example calculation to understand the commercials better.
How much can a building owner save with smart control in hybrid heat pump sites? Let's clarify this by examining a scenario where the electricity cost threshold is set at 0.25€/kWh. Extreme price fluctuations, although rare, are becoming more frequent with the increased incorporation of renewable energy sources into our grid. In 2023, the Finnish wholesale electricity market experienced 45 instances where prices exceeded 250€/MWh, averaging 343€/MWh.
Consider a building with 10,000 square meters of heated floor space, equipped with a 250kW heat pump. By avoiding electricity use during these peak price events, and with the heat pump's Coefficient of Performance (COP) at 3, the building could save approximately 2800€, which amounts to 5% of its annual heating costs. If supplemental heating from district heating at 70€/MWh is used, the savings would be around 2100€, or 4% of the annual heating costs. These savings demonstrate the significant impact of strategic energy management.
Wholesale electricity markets in Nordpool 2023. Data from Entso-E. This strategy of adapting to energy price fluctuations is particularly effective in hybrid heating systems, offering considerable cost savings. In areas with volatile electricity prices, such an approach ensures minimized heating costs without compromising comfort or increasing carbon emissions.
Benefits of smart controls for hybrid sites The new price threshold feature brings manifold benefits to hybrid sites:
Cost Efficiency : By optimizing energy usage based on real-time price information, homeowners and businesses can achieve substantial savings on their energy bills.Increased Flexibility : The system's ability to switch between energy sources seamlessly ensures that the most cost-effective and efficient heating method is always in use.Environmental Impact : Leveraging more energy-efficient heat pumps when electricity prices are low reduces reliance on fossil fuels and lowers carbon emissions.Enhanced Control : Kapacity.io provides users with unprecedented control over their heating systems, allowing for adjustments that align with their specific needs and preferences.Read more on how Kapacity.io Control works.
Price threshold feature for hybrid heat pump systems: Improve efficiency and sustainability Hybrid heating systems represent a significant step forward in the evolution of home and commercial heating solutions. With the introduction of Kapacity.io's new price threshold feature, the potential for these systems to provide efficient, cost-effective, and environmentally friendly heating is greater than ever. As we continue to seek ways to reduce our carbon footprint and save on energy costs, the role of advanced energy management platforms like Kapacity.io in optimizing hybrid systems will be invaluable. Whether you're a real estate owner or a heat pump system installer, understanding and leveraging these technologies is key to navigating the future of heating.
Do you have a hybrid heat pump system? Contact us and let’s see how we can make it more efficient, together.
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