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Sector integration TES can help reduce curtailment and improve renewable energy utilisation via sector integration. This refers to linking power generation to demands in other sectors such as heat by converting excess power to heat, significantly increasing the flexibility of the energy system. As thermal demand is usually far higher than electricity demand, particularly for end-use heating applications, it is more efficient to store energy as thermal energy rather than electricity. Given the high cost-effectiveness and efficiency of TES technologies (Lund et al., 2016), deploying TES could help to decarbonise the power system by enabling sector integration. Heat and transport electrification will add a significant load to the power system, and relying solely on power sector assets may stretch energy system resources and increase the overall cost. TES can help to decouple heat demand and to a lesser extent that of the transport sector (through lower cooling/heating loads in vehicles) from power generation with a high share of variable generation. TES is also a critical enabling system component for effectively deploying technologies such as heat pumps, allowing their size to be optimised and efficient full load operation at lower costs. This helps to improve the potential of strategies such as power to heat (which already improves renewable integration) and so facilitate whole-system approaches. Demand shifting Energy demand can be shifted in time using thermal storage to better match VRE supply and reduce system strain. For example, high peak coincident loads like building space heating and/or cooling can be moved into off-peak times by charging up the thermal storage during off-peak times and then discharging when required. This enables the on-site demand pattern to stay the same while moving production of the heat or cold to more favourable times (e.g. low grid congestion, high renewable energy, lower price periods). Additionally, system efficiency can also be increased by charging thermal storage during times of high renewable availability and low demand, which can then be discharged at high demand periods to improve utilisation. Managing excess renewables production with storage is more efficient from a systems perspective than curtailment as it avoids energy wastage and improves the utilisation of generators, thus reducing the overall cost to consumers. Demand shifting is also a critical enabler of efficient sector integration, which otherwise would require significantly increased overall supply and network capacity to meet the same demand. Network management Load shifting not only helps to improve utilisation of renewables and allows them to meet a higher share of demand, but also helps defer or avoid the need for costly electricity network reinforcement. Distributed generation is putting pressure on network operators due to challenges associated with periods of high supply and low demand. Without reinforcement or increased network capacity, power must be exported out of local networks at times of peak supply. Additionally, networks are built to meet peak demand; heat and transport electrification could increase it, triggering additional investment to increase head room availability. Network capacity is thus a limiting constraint determining the local viability of greater deployment of renewable generation assets, heat pumps and air conditioning. Without storage or other forms of demand management, networks globally will require significant reinforcement. Demand peaks driven by heating and cooling loads can be managed effectively by thermal storage systems. This is because the final demand is heat or cold rather than electricity. As an example, analysis of the Latvian power system suggests that material network reinforcement could be required even under scenarios of incomplete heat electrification. This is significantly reduced when TES is used in a highly co ordinated and controlled manner to reduce the peak load (O’Dwyer et al., 2018). This finding is case-specific, but offers an insight into the potential role for TES in network management. Seasonal storage Thermal storage can store energy for days or even months to help address seasonal variability in supply and demand. This is of particular benefit to energy systems in regions that have a significant difference in thermal loads between seasons. Surplus heat produced with renewables like solar PV or wind in the summer can be stored in TES, and then be used to supplement or meet winter heating demand. Such an initiative would reduce the need for non-renewable sources of heat during peak times. Thermal storage can also be used to store natural cold in the winter to supply space cooling during the summer season. While this particular use case does not directly aid 50 INNOVATION OUTLOOKPDF Image | THERMAL ENERGY STORAGE Outlook
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