How can we know how much heat costs? A new methodology from the FROnT project.

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Before it is possible to compare the costs of different heating and cooling project, it is necessary to first establish how the costs or heat should be calculated and defined.

The Levelised Cost of Heating and Cooling, or ‘LCoHC’ is the constant and theoretical cost of generating one kWh of heat/cold, which is equal to the discounted expenses incurred throughout the lifetime of the investment.

By calculating the LCoHC for renewable and fossil fuel projects, it will be possible to make comparisons of the financial consequences of both.

Establishing how this calculation should be made is a longstanding issue, with a number of methodologies in common use. The FROnT project has assessed these existing methodologies and a number of other factors, and is now able to present its Report on the Elaboration of a Cost Estimation Methodology.

This report, developed in collaboration with stakeholders from around Europe, sets out a comprehensive model for establishing the LCoHC. This model will now be used to develop tools through which consumers can compare and better understand the financial implications of their heating and cooling choices.

Download the report