Household heating costs determined by fuel type and energy efficiency

Cross analysis of available fuel types in Montenegro showed that the wood still provides the cheapest heating in homes. Solution is energy efficiency and changing old heating systems throughout the state subsidized loans.

The price of different heating fuel types depends on the object`s geographical location, heating needs and usage, desired comfort level and availability of certain types of fuels at the location.

An average household in Montenegro uses heating energy equivalent of 11 cubic meters of wood per season. The same amount of energy can be generated by 5 t of coal, or 3 t of wood pellet, or 12,960 kWh of electric energy for thermal storage heaters or heater fans.

“If we calculate the price of different heating systems, the cheapest heating comes from wood and coal, followed by air conditioners and new heating systems fueled by the wood pellet. Currently, the highest price comes with the electric energy” said Dragica Sekulić, Head of Energy Efficiency Directorate at Ministry of the economy, author of the study, according to web portal CDM.

The average cost of heating per season in Montenegro is EUR 330 for wood, EUR 450 for coal, EUR 520 for air conditioners, while the cost of running electrical thermal storage heaters and heater fans can reach EUR 1,960 (avg. wage in Montenegro is around EUR 500).

Sekulić noted that prices of coal and wood are significantly higher in the southern parts of the country and that the comfort of using different sources of heating energy should also be included in the assessment.

“If we reduce household energy consumption by using energy efficient appliances, improved doors and windows, and additional insulation, we will need less energy for heating. This will reduce the minimum capacity of the installed power and the expenses for new system installation. Basic change can be switch of traditional AC to a new and improved inverter split system air conditioners. Besides, the average paid-off time period for thermal solar water heating system in Montenegro is 4 to 6 years, so this also can be a good investment.”

Ministry of Economy previously launched the Energy Wood project, aimed to set financial incentives in form of interest-free loans up to EUR 3,500, with loan term of up to 5 years. Loan is provided for buying a new biomass-fueled heating systems (wood pellet and briquettes).

The first phase of the project was delivered in cooperation with the government of Luxemburg, and it resulted in 243 biomass-fueled heating systems. The second phase was supported by the government of Norway and 530 systems were installed.