Grid Value Analysis of Geothermal Systems for End-Use Applications

Fuel based end-uses for residential, commercial, and industrial consumers require a technology change to achieve economy-wide decarbonization. Space heating accounts for 42% of residential and 32% of commercial energy demand, much of which is currently met through carbon emitting fuels. Industrial energy use is heavily fuel based with electricity currently representing 13% of energy demand. Geothermal heat pumps (GHPs) and geothermal direct use can eliminate the need for CO2 emitting and simultaneously allow for more efficient electrification of end uses. Past work has assessed the impact on total energy costs and generation investments but did not identify specific grid services benefited. Energy usage in residential and commercial structures was assessed by leveraging data from ComStock and ResStock models. These models utilize housing attributes, occupancy patterns, weather data, and sophisticated energy simulations to generate hourly load profiles for individual buildings identified by unique IDs associated with their locations. Industrial sector energy use was evaluated using information from the Manufacturing Energy Consumption Survey (MECS) as well as plant utilization data from the US Census to estimate hourly plant operations. The change in end-use demand for electricity, natural gas, and other fuels was calculated for different technologies that could meet this need. Using the ReEDS capacity expansion model, we produce regional price profiles that capture the grid benefit associated with the amount and timing of energy shifts in the power system from the adoption of geothermal systems relative to other technologies that could meet space heating, space cooling, and process heat requirements. We find that geothermal systems for meeting end-use demand add value to the energy system. In buildings where geothermal systems increase grid costs, these values are offset by reduced fuel costs and benefits to externalities, including emissions and health impacts.