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THERMAL ENERGY STORAGE Outlook

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

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4.4 Key barriers to wider TES deployment Table 14. Overview of key support needs that are relevant to TES in each end-use sector Application Regulatory/policy environment Stakeholder acceptance Technical performance Financial proposition Power • Fragmented, siloed energy regulation. • No regulation of heat or cold. • Commercial CSP plants at a scale of 100 MW have provided awareness and confidence to international power project developers and contractors. More effort should be made on lender and consumer awareness. • Utility-scale thermal storage technologies (for non-CSP use) are at an early stage of development • Technical performance of molten-salt TES is proven in over 10 years’ operating track record at utility-scale in multi-GW CSP plants. • The commercial feasibility of non-CSP utility-scale storage technologies has yet to be demonstrated. Industry • Fragmented, siloed energy regulation. • No regulation of heat or cold. • Limited subsidy for installation of non-power assets. • Risk-averse decision makers likely to prioritise revenue-neutral solutions, including incumbent fossil fuel alternatives. • Many promising technologies are at an early stage of development and are not yet ready for widespread deployment. • Commercial trials have not yet proven the financial proposition for anything other than TTES. • High CAPEX of projects prohibitive. Return on investment needs to be high for renewable energy projects to be considered. Cold chain • Fragmented, siloed energy regulation. • No regulation of heat or cold. • Agriculture and food retail stakeholders often quite risk averse. No one wants to be the first to move. Failure can spoil perishable products and disrupt revenue generation. N/A N/A District heating and cooling • Planning permission can be complicated to obtain for UTES technologies. • Fragmented, siloed energy regulation. • No regulation of heat or cold. • Technical/ commercial /environmental performance of latent technologies for district heating has only recently been proven, so limited stakeholder awareness and acceptance of these technologies. • Only a small number of demonstrations of next-generation high-temperature cPCM-based storage. • Renewable district heating/cooling schemes with or without storage have high upfront costs, which limit attractiveness. Buildings • Planning permission can be complicated to obtain for UTES technologies. • Lack of building codes to encourage/force take-up of alternatives to fossil fuel-powered heating systems. • Fragmented, siloed energy regulation. • No regulation of heat or cold. • Consumer awareness is low for both domestic and non-domestic thermal storage (heat and cold). • Still relatively low TRLs for low-temperature PCMs and chemical storage-based solutions for heating/cooling applications. N/A Note: N/A denotes no main needs were identified. 116 INNOVATION OUTLOOK

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