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available wind energy will be curtailed. Demand side storage can significantly help in reducing wind curtailment and, despite additional electricity demand and an increase in peak demand, could reduce wind curtailment to 4.8% for HP scenarios and to 2.93% for DEH scenarios (Table 5.2). In addition to better network management and reduced emissions, energy storage can also reduce the number of baseload generator starts. The simulation results show that without storage, the number of baseload generators start-ups increase by up to 16% for electrification with HP and by almost 40% for DEH. Energy storage systems significantly reduce the required starts by baseload generators, even in comparison with the BaU scenario, reducing it by up to 13% in the HP +4h storage scenario, and by 3% for DEH + 2 scenario. It is worth noting that there is little difference between technical benefits (i.e. level of CO2 emissions, wind curtailments and the number of baseload starts, etc.) in the ES 1 and ES 4 models for both HP and DEH. This suggests that the energy market responds to the availability of any storage capacity rather than the total volume available. Storage that can shift one hour’s worth of energy from peak to off-peak delivers similar benefits to four hours’ storage. This is an especially important consideration for domestic energy storage, as stored energy volume corresponds directly to the size of domestic storage tanks, which is a limiting factor in typical Irish houses. On the other hand, the market model does not take into consideration network constraints, which will more likely require additional storage volume to manage especially distribution network limitations. 6. Economic perspectives and policy prospects From an economic point of view, HP electrification requires circa €360 M, or adds around 11% to the yearly total system costs, when compared with the BaU scenario. DEH is almost five times more expensive and requires an additional €1,713 M (or 52%) per year, which makes it a very unattractive economic option. The addition of energy storage adds significant savings by reducing the total system cost of heat electrification by up to 5% for HP electrification and 30% for DEH (table 6.1). Optimised management of heat electrification at 75% SNSP can minimise the increase in total system dispatch costs to less than to 2.15% for the HP + 4 ES group of scenarios; and less than 5.6% for DEH + ES group of scenarios (Table 6.1). As total dispatch costs include total system costs and the costs associated with network constraints, they are a better indicator of what consumers are likely to pay. The non-monetised benefits of storage, such as the O&M costs reduction associated with reduced baseload generator cycling and the management of distribution networks congestion, will bring considerable economic benefits to the SEM. The ability to provide aggregated ancillary services can further strengthen the case for electrification with HP 11PDF Image | How heat pumps and thermal energy storage with wind power
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