Techno-economic assessment of options for domestic water heating in the ecuadorian city of Cuenca

Abstract

INTRODUCTION. Homes in the Andean region of Ecuador, due to the relatively cold ambient temperature, require energy services such as hot water in a daily basis along the year. In that context, the preferred technologies used for such purpose run on LPG, mainly, due to its low cost as it is highly subsidized. This situation poses certain challenges for the energy policy of the country. OBJECTIVE. This case study aims to discuss more sustainable alternatives to obtain hot water for household use in the context of the Andean city of Cuenca. METHOD. Firstly, solar and meteorological data has been processed to characterize local conditions. Then, different technologies able to provide hot water have been simulated. Further, an economic analysis was performed to determine costs per unit of energy required. RESULTS. The use of subsidized LPG reduces the real cost of water heating between 47% and 72% depending on the daily levels of consumption. In the event of a subsidy removal, electric tankless water heaters, along with reduced electricity tariffs, become competitive for levels of consumption up to 120 liters per day. For higher levels of consumption solar thermal systems or heat pumps may become viable only when providing rebates DISCUSSION AND CONCLUSIONS. The presence of benefits of scale among levels of consumption need to be regarded when designing incentives for energy services such as domestic hot water.