Large-Scale Heat Pumps and the Impact of Electricity Prices in District Heating Systems – Master's Thesis at EKA
- 20 mars
- 3 min läsning

August from KTH Royal Institute of Technology is conducting his master's thesis at EKA. The project focuses on how large-scale heat pumps can be integrated into district heating systems and how fluctuations in electricity prices affect their operation and economic performance.
Background: A Changing Energy Mix in District Heating Systems
District heating networks and heat producers are facing a growing need to diversify their production methods and energy sources. This is driven both by the need to phase out fossil fuels and by economic challenges related to the availability and cost of biofuels.
Electrification through heat pumps is therefore an important alternative. Heat pumps can utilize heat from a wide range of sources, including cooling processes, geothermal energy (boreholes), outdoor air, lakes, and low-temperature waste heat. At the same time, the use of natural refrigerants is a key component in the development of future-proof heat pump and refrigeration systems.
The Importance of Energy Prices for Operating Costs
A crucial factor affecting the operating cost of heat pump systems is the price of energy. A particular challenge is that electricity prices can vary significantly over time, both throughout the day, between weekdays, and across different seasons.
A better understanding and analysis of these price dynamics is an important part of developing advanced tools for system design and operational strategies. The project therefore aims to further develop methods and models that can account for these variations when analyzing heat pump systems.

Project Aim
The overall aim of the master's thesis is to link the energy consumption profiles of different heat pump systems to variations in electricity prices.
The results will provide insights into:
The potential profitability of different heat pump solutions
Indicative investment costs
The key requirements for implementing large-scale heat pumps in district heating systems
Method and analysis
The project combines theoretical studies with practical analysis and covers several key areas.
Literature reviews are conducted to compile information on electricity price scenarios, heat pumps using natural refrigerants, market developments, and various heat sources.
Market data is collected to map how heat pump efficiency varies depending on temperatures in both the heat source and the district heating network.
Calculation and simulation models are developed to analyze system performance and capture variations in electricity prices. In addition, operational data from real-world installations are analyzed, and the relative characteristics of different refrigerants are compared.
The project also includes optimization studies, where different heat pump solutions using natural refrigerants are evaluated and compared based on energy use, system performance, and potential operating strategies.
Focus on Swedish District Heating Systems
The study also includes analyses of district heating production in Sweden, including the energy sources used in different systems, tariff structures, and trends in bioenergy prices. In addition, the Swedish electricity market is examined, including historical spot prices and potential variations between different electricity price areas.
As part of the project, case studies are also carried out in which heat pumps are modeled and evaluated within existing district heating systems.
Who is August? ![]() August Appelgren is studying Energy Technology at the Department of Energy Technology (EGI) at KTH Royal Institute of Technology. As part of his studies, he is currently carrying out his master's thesis at EKA. Previously, August completed a bachelor's thesis at KTH focusing on thermal energy storage for district heating systems. The project investigated the potential of using an existing rock cavern in Bålsta for hot water storage, with the aim of supporting the local district heating network. |
Expected Results
The project is expected to deliver methods, models, and analyses that can be visualized and compiled into a final report. The results will contribute to a better understanding of the profitability of different heat pump solutions, as well as the conditions and requirements necessary for implementing large-scale heat pumps in district heating systems.

