THERMAL ENERGY STORAGE Outlook

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THERMAL ENERGY STORAGE Outlook ( thermal-energy-storage-outlook )

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• Determining pricing schemes for heating and cooling. • Low and inefficient utilisation of generators caused by variable load. • The inability to ramp up VRE generators to meet demand peaks. Meeting peak demand requires supporting technologies like boilers, which increases system costs. TES deployment in district heating/cooling could contribute to addressing these challenges The key benefit of using TES in district heating/cooling is the opportunity to decouple heat/cold generation from consumption. In almost every example discussed here, the principal use case for TES is in utilising peak supply of renewable energy to store heat/cold for use at a later point when demand outstrips supply, whether that is over short or long timescales. In solar thermal district heating schemes, TES can be used to store surplus heat supply, which can be discharged during times of low solar irradiance such as during night- time, or even over the winter. In addition to covering periods of low solar irradiance, TES allows the modulation of heat output to meet varying demand and better balance the local network. These features help to deliver low-cost decarbonised heating. Europe has over 200 solar district heating schemes, primarily in Austria, Denmark, Germany and Sweden (Solar District Heating, 2018). UTES are the primary type of TES used in these cases, particularly pit thermal energy storage (PTES). By including seasonal storage, high deployment rates of solar thermal generation (up to 90%) become feasible (Han, Wang and Dai, 2009). District heating schemes that source energy from variable wind and solar PV have been trialled in China, Denmark, Russia, Sweden and United States (United Nations Environment Programme, 2015; Xiong et al., 2016; Werner, 2017). These schemes have tested different approaches to meeting heat demand using renewable electricity, for example by heating water using heat pumps or resistive heating. There is significant scope for TES to assist in making these schemes more feasible through enhancing generator utilisation. Integrating TES into a VRE-powered district heating system can enable the system to avoid curtailment by continuing to generate in periods of peak supply. “Excess” energy can be stored as heat for later use when heat demand picks up. In this case, TES contributes to the delivery of low-cost decarbonised heating (Liu et al., 2017). In co-generation district heating schemes, as deployed in China, Denmark, Germany, Italy, Sweden and the United Kingdom (United Nations Environment Programme, 2015), short-term TES can be used to help meet daily peaks in demand. This enables deployment of smaller-scale co-generation systems that can run continuously at full capacity (rather than oversized plants peaking to meet demand), enhancing system efficiencies and utilisation rates. Similar benefits are seen in geothermal district heating schemes, where utilisation can be improved by facilitating constant generation and meeting variable peak demand with TES. Geothermal heat accounted for less than 1% of the sources of energy for district heat schemes internationally in 2014. They are at present primarily utilised in Iceland and France, with other smaller-scale projects elsewhere in Europe (Werner, 2017). Geothermal schemes are restricted by the availability of local geothermal heat sources. However, it has been estimated that 25% of Europe’s population could be supplied by geothermally powered heat through urban district heating schemes (Connolly et al., 2012). Similar to district heating, cooling loads also tend to be variable across seasons and TES helps to improve the utilisation of the generation source. TES enables constant generation of cold, whilst helping to meet variable loads. In the case where electric chillers are used in district cooling, TES also helps reduce the peak electricity load on the networks by moving production to other times when overall demand is lower. This can help to avoid expensive network reinforcement or expansion by shaving peak load. District cooling systems coupled with cold storage allow a reduction in cooling capacity of 15-50%, as well as reducing the need for auxiliary components, with improved overall system performance due to more efficient utilisation of compressors (Cecca, Benassis and Poeuf, 2010). Adding thermal storages to district heating or cooling schemes enables the system to meet a wider range of heat loads and to integrate renewable energy sources with differing generation profiles. TES effectively enables decoupling of how the heat or cold is generated from how it is consumed. THERMAL ENERGY STORAGE 91

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