Illustrative levelised cost of heat for electric and natural gas boiler hybrids at different utilisation rates and CO2 prices in Germany, 2024

Sources

EUROSTAT for industrial natural gas price, electricity network costs, and taxes and levies on electricity (assumed consumption bands are I4 and IE, respectively). ENTSO-e for hourly wholesale electricity prices.

Notes

The utilisation rate of the natural gas boiler is complementary (e.g. when the electric boiler runs 20%, the gas boiler runs the remaining 80%). End-user industrial natural gas price excluding VAT is EUR 60/MWh. Wholesale hourly electricity prices are in the range EUR -136 to 916/MWh, to which we add a multiplicative markup of around 65% representing the combined effect of network costs, taxes and levies (excluding VAT) and incentives for flexibility. Grid connection costs are excluded from the analysis due to uncertainty. For illustrative purposes, the utilisation rate of the system is assumed to be 100% (flat demand profile).