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Application Industry supply chain and skills Market opportunities Company maturity Enabling infrastructure Power N/A • Lack of value placed on flexibility provision reduces opportunities for storage, including TES. • Engineering, procurement and construction (EPC) companies have competitively matured with the implementation of 17 GW of molten-salt TES systems for CSP plants. • Limited CSP uptake associated with low demand for molten-salt TES. Industry • Supply chain for TES is relatively undeveloped due to the current early stage of commercialisation of the technologies. • Industry tends to be revenue driven, and investment in cost- cutting measures is often a second-order priority. • Renewables integration is low in industry in part due to a lack of customer demand – this impacts the interest in TES as a result. • Preference for established equipment suppliers to avoid technology risk can make it difficult for early-stage businesses to break into the sector. • Very limited adoption of renewable technologies in industrial environments. Cold chain • Supply chain relatively undeveloped due to emerging technology, especially for LAES. • Small-scale farmers in developing countries face financial barriers, impeding TES adoption. • Manufacturers and other businesses involved in TES are new market entrants (especially for PCMs, LAES). • Cold chains need to be complete – the lack of a functional cold chain compounds issues. • Lack of reliable power infrastructure in developing countries is a driver for TES, so improving power infrastructure could reduce the value proposition of TES. District heating and cooling N/A N/A N/A • Barriers including high upfront costs, perceived financial risk, resource- based constraints, the urban environment and existing incumbent network. Buildings N/A • Cheap gas in many countries mean demand for thermal storage and renewable heat is low. • Cheap electricity means that demand for thermal storage (instead of using AC) for cooling is limited. N/A • Sunk costs in gas infrastructure may slow move to electrification of heat. • Heat pumps are still relatively scarce in European and North American developed countries where thermal demand is highest. Note: N/A denotes no main needs were identified. THERMAL ENERGY STORAGE 117PDF Image | THERMAL ENERGY STORAGE Outlook
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