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Evidence Gathering: Thermal Energy Storage (TES) Technologies Current and future system and technology costs Based on cost assessments from the Danish projects, the range for PTES projects can lie between 24 and 49 £/m3, with a heat storage potential of 30-80 kWh/m3 reported in the literature (Miedaner & Sørensen, 2015). This would allow for the assumption that PTES systems can provide heat storage at a price as low as 0.30 £/kWh29. Drawing on the experience from the Marstal and Dronninglund, a total heat production price of 0.04 - 0.06 €/kWh is reported (based on evaluation of economics of solar collector + PTES) (Jensen & From, 2013). Annual operation and maintenance costs have also been quantified to be £16,000 (€21,000) for the Dronninglund project. A detailed cost breakdown for these projects has been provided in the literature (Jensen, From, & Sørensen, 2015). Cost effectiveness increases with scale and can be attractive compared to other TES options The key aspect with regards to the cost of PTES is that while upfront costs are comparatively high, the actual cost of heat storage compares favourably with tank based storage, and also other solutions such as BTES or ATES. However, the crucial assumption for these types of systems is that larger scale installations deliver lower costs per m3 or kWh of heat. The economies of scale are especially notable, as many factors such as the geological assessment of the size, the purchase of the land, the excavation, lining and insulation of the excavation, etc. have high initial fixed costs that proportionally decrease as size is increase. Given that the associated technologies and skills required are established, the cost reduction potential of PTES is primarily related to scalability. Additional cost reduction factors identified are primarily connected to the material of the lining and quality of insulation, which would reduce losses and offers some potential for reducing development / manufacturing cost. Interviews with industry indicated that should larger scale projects be realised and PTES become more established, costs could decrease below 25 £/m3 30. Future technological potential and development The potential of PTES has been proven in several projects across Europe and with many of the associated technological requirements based on established methods there is limited scope for major technological advance. One of the key areas that require further research and development is the material and performance of the linings and cover. With current projects using HDPE / Polymer liners there remains an issue with degradation over the installation’s lifetime related to the condensation of vapours. Current research efforts are looking to decrease degradation and increase insulation quality of the materials used. For example during industry interviews it was mentioned that a new liner durable for 20 years at 90oC is under development and would enable the storage of excess heat from waste incineration, industrial production and CHP. Generally, water may be stored at any temperature as required, with the liner material having been the primary barrier to water temperatures above 80oC. Notably the testing of existing materials and quality 29 Original figures reported in Euros – 32 €/m3 to 64 €/m3. 30 Cost reduction potential based on projects in other European countries (i.e. Denmark and Germany), original number quoted was €30 / m3 or below and has been converted to British pounds. 43PDF Image | Thermal Energy Storage (TES) Technologies
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