Electrification Options for Multi-Family Water Heating in Cold Climates - Final Report

In multi-family buildings, large water storage tanks in centralized domestic hot water (DHW) systems can serve as thermal energy storage (TES) batteries to mitigate grid impact. These systems offer demand shift and efficiency benefits, significantly reducing peak power consumption, particularly in cold climates. This study evaluates the load-shifting benefits of a centralized heat pump water heater (HPWH) system equipped with a CO2 heat pump in multi-family buildings through simulation. The heat pump system and water storage tank are sized using design-day sizing. A finite-element-based stratified tank model and CO2 heat pump performance map from a commercial DHW product are used. Annual simulations are conducted to assess the benefits of the centralized DHW system for energy efficiency improvements, load shifting, and emission reductions. These simulations incorporate utility tariffs and marginal grid emission data from Los Angeles and Chicago. In Los Angeles, using a water tank as a thermal battery achieves 7.4% utility cost savings and 10.2% emission reduction. In Chicago, compared to HPWH conventional operation without preheating, TES-enabled central HPWH provides 15% utility cost savings and 13% emission reduction. The case study demonstrates that the demand reduction potential of central CO2 HPWHs is significant in cold climate regions.