Scenarios for the decarbonization of district heating: the case of Leipzig

This study derives the levelized cost of heat (LCOH) for exemplary post-fossil district heating (DH) scenarios. The DH system of Leipzig in 2040 under the assumption of a completely climate-neutral heat supply is considered. Accordingly, four generation scenarios (GS) are proposed based on different energy carriers that are characterized as follows: (1) natural gas with carbon capture and storage, (2) hydrogen, (3) diversified mix of biomass, waste heat and solar, and (4) electricity. In addition, the scenarios’ robustness toward commodity prices is investigated using a sensitivity analysis. A modeling environment was used to optimize the hourly economic dispatch. Based on this, levelized costs are determined. For the reference case, the LCOH of the GS 1 and 2 exceeds the LCOH of GS 3 and 4. Furthermore, the results indicate that relying on singular energy carriers as opposed to diversified generation portfolios leads to less robust LCOH regarding price sensitivities.