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Direct electric heating, however, shows greater environmental impact than gas or oil heating. In addition to this it will require significant market investments, which makes it economically not a viable option for heat decarbonisation. Small-scale energy storage can bring significant benefits to the market in terms of reduction in peak consumer demand, improving the operating profile of baseload generators (even in comparison with the BaU scenario), reducing wind power curtailment and improving network management. However, the economic potential of thermal storage significantly depends on technology development. The current costs of thermal storage mean that only sensible storage installations have the potential to be economically efficient without additional support. The limited space available in many houses suggests a need for alternative ES technologies, such as phase-change materials or thermo-chemical technologies, which are currently expensive and require significant development. HP electrification will require significant investment to cover the capital, installation and maintenance costs of HP deployment, plus an additional 2.2 - 5.2% (depending on the level of energy storage) of total system dispatch costs for electricity market operation. However, if these costs are compared with the costs required to extend the gas network (which is poorly developed in Northern Ireland, for example), similar levels of investments are needed. Therefore if investments are needed in any case, it is obvious to favour lower carbon emissions technologies and give preference to HP technologies. The scenarios described here are based on current network capabilities, however the uptake of a higher share of HP or other demand side technologies, such as electric vehicles or solar PV, will require additional investment in distribution networks. The absence of appropriate policy support in both Northern Ireland and the Republic of Ireland are currently the major barriers to heat electrification. The benefits of demand side response are undervalued in the market. The only way for DSR to participate in the market and be at least partially rewarded for the services provided is through currently under-developed aggregated private contracts with retailers. Acknowledgements The authors gratefully acknowledge the support of the European Union INTERREG IVA SPIRE project (Grant number 036347) programme through the Special EU Projects Body (SEUPB). Further the authors wish to acknowledge the support of the Engineering and Physical Sciences Research Council (EPSRC) through the Interdisciplinary Centre for Storage, Transformation and Upgrading of Thermal Energy (i-STUTE) (Grant No. EP/K011847/1). We also express our gratitude to Energy Exemplar for the free academic Plexos license and FICO for providing its Xpress solver for mixed integer programming. We would like to thank the editor and anonymous referees for helpful comments. 14PDF Image | How heat pumps and thermal energy storage with wind power
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