THERMAL ENERGY STORAGE Outlook

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

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Ecosystem and technology push support can help build trust around certain technologies, for example by introducing certification schemes administered by a trusted third party, or via government-sponsored demonstration projects. It can be helpful to target innovative companies for whom this barrier would perhaps be less significant. These organisations are often large customer-facing companies who have a dedicated sustainability division (e.g. major car manufacturers), and an interest in the kudos associated with successful decarbonisation initiatives. Such activities can contribute to increasing awareness of the opportunities offered by thermal storage, especially for technologies that are not yet commercialised. By making clear the potential benefits of TES in the industrial sector, and providing ecosystem support to share learnings with relevant market participants, policy makers could help accelerate the uptake of TES. Cold chain Significant growth in energy demand is foreseen in the cold chain. It is important that systems-thinking approaches are used to ensure policy making and regulation encourage decarbonisation in this vital sector. Historically one of the main barriers to the development of cold chain technologies, including thermal storage, has been a lack of R&D investment. However, since 2015 a range of initiatives have been led by government (e.g. the EU CryoHub), education facilities (e.g. the UK Thermal Energy Research Accelerator), and philanthropy (e.g. the Kigali Cooling Efficiency Program). The latter initiative is looking to mobilise finance for solutions such as thermal storage in the context of the cold chain. Technology push interventions such as these are needed to accelerate the commercialisation of TES technologies for the cold chain. Ideally these types of initiative should be managed concurrently to achieve synergies, such as those realised in LAES development in the United Kingdom. As highlighted previously, grant funding for R&D activities and demonstration projects for LAES in the country have showcased capabilities of the technology, and also helped develop the industry supply chain and skills. Much of the growth anticipated in the cold chain will occur in developing countries. The technologies required to decarbonise cooling are currently associated with significant capital expenditure costs. The cold chain is particularly important in agriculture, and a key barrier in deploying TES and renewable cooling assets will be the limited economic resources of small-scale farmers. Another barrier is stakeholder awareness and acceptance of cold chain TES. Medium-sized and large farmers who do have the resources to invest in thermal storage without subsidies are largely unfamiliar with the technologies, and indeed may be agnostic or hostile to technological innovation if it risks disrupting revenue streams. The same fears are apparent at the other end of the cold chain, for example among food retailers, as there is limited awareness of the capabilities of these technologies. Case study 12. Technology push and market pull interventions to develop a clean cold chain in India Agricultural cold chain in India Interventions in India have found success in supporting early adoption of TES solutions in agriculture. The Indian government provides subsidies to farmers for investments in equipment, which currently cover thermal storage technologies. This is an example of a price support mechanism. TES manufacturers have also been trialling lease-to-own propositions in the country. Such schemes can encourage farmers to try out these new technologies, without the risks and reservations associated with an upfront investment. Policy makers can also build upon the impact of demonstrations such as these using a combination of technology push and market pull interventions, and through ecosystem support such as media campaigns, knowledge sharing and international co operation. This can communicate the benefits of adopting thermal storage technologies to a wide range of stakeholders (University of Birmingham, 2017) . 114 INNOVATION OUTLOOK

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