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1.3 The role of TES in integrated energy systems As end-use sectors in the energy system are electrified, and as renewable generation technologies are more widely deployed in sectors other than power, enhanced sector integration will contribute to realising ever more efficient energy systems. One example of coupling heat and power is the “power to heat” (P2H) concept (Figure 22), in which demand for heat is met by a range of decentralised electrified heating and storage technologies (Bloess, Schill and Zerrahn, 2018). Such approaches are sometimes referred to as “smart energy systems”, in which electricity, thermal and gas grids are linked and co ordinated to leverage synergies and deliver optimal outcomes for each sector, as well as maximising efficiency for the overall system (Lund et al., 2016). TES can also help enable further options for flexibility in the heating and cooling sector. Electricity system flexibility could be enhanced using TES. Using smart controls to produce heat (or cold) at times of high supply of renewable electricity, which can then be stored using TES, could provide a useful means of balancing power supply and demand, while helping to decarbonise heat (or cold) supply. Thermal storage is also expected to be important for the electricity vector, through the optimisation of hot-water tanks for heat pump use in homes. The benefits that TES can provide will vary between energy systems and their future evolution, particularly in relation to VRE deployment and the electrification of heat and transport demand. Examples of the key applications for TES are summarised in Figure 23. Analysis conducted in different settings provides insight into the role that TES might have in increasingly integrated future systems. Here, the benefits are defined and contextualised. Further in the report are applied examples showing where and how these benefits have already been realised or where they might become increasingly relevant in the future. The exact suite of benefits offered by TES deployment will vary between differing energy systems, climates and geographies. Variable supply integration Thermal storage can be used to regulate the outputs from variable energy sources. This is sometimes referred to as capacity firming. It is possible to mitigate rapid dips or spikes in output, as well as longer-term variations in supply such as those which occur overnight or throughout the day. Given that solar irradiation and wind are not consistent every minute, electricity generated from these sources currently needs to be supplemented with appropriate reserves from conventional generators such as coal, gas or pumped hydro to fill in shortfalls against demand. System operators use a range of balancing tools to manage fluctuations over timescales from sub-seconds to minutes and hours. Thermal storage is not suited to providing services to meet sub-minute demands yet, such as frequency management, which electrical storage can address at much faster rates. From technical and economic perspectives, thermal storage is suited to delivering power system balancing services across timescales of minutes/hours, and thermal demand shifting across hours. TES technologies have long cycle lifetimes and relatively small degradations in efficiency over time compared with batteries, which reduces overall lifetime cost (Lund et al., 2016). Figure 23: Key applications of TES in energy systems Demand shifting TES Applications Sector integration Network reinforcement deferal Variable supply integration Seasonal storage THERMAL ENERGY STORAGE 49PDF Image | THERMAL ENERGY STORAGE Outlook
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