Impact of Carbon Pricing on Energy Cost Savings Resulting from Installation of Gas-Fired Absorption Heat Pump at A Library Building in Ontario

Abstract

This paper presents the results of analyzing the potential benefits of a natural gas-fired absorption heat pump (GAHP) for a library building in Ontario in terms of energy savings, fuel cost savings, and reduction in greenhouse gas emissions. Simulation model for the library building was created in eQUEST and calibrated using the energy consumption data from the 2012–2014. The results for energy savings were analyzed to include the effect of implementation of carbon pricing. It was concluded that because of implementation of carbon pricing, the replacement of conventional heating equipment with more efficient gas-fired heat pump would increase the monetary value of the savings achieved from reduced natural gas consumption, due to increased price of natural gas. Furthermore, due to the longer heating season in Canada and the relatively higher price of electricity compared to natural gas the gas-fired heat pump can potentially achieve positive energy cost savings when operated in both heating and cooling mode even after implementation of carbon pricing.