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Evidence Gathering: Thermal Energy Storage (TES) Technologies 5.4 Key barriers There are a number of barriers present today, which must be overcome if we are to see significant uptake of TES technologies in the UK beyond the established tank based hot water storage. Most obvious and echoed throughout the research is the issue around upfront cost of systems. However, there are further barriers such as the integration of TES installations into existing heating systems, relatively low uptake of renewable heating technologies, absence of strong drivers for time shifting of electricity consumption, awareness and knowledge, as well as the remaining gaps in research and project demonstration. This section highlights some of the overarching barriers identified throughout the detailed technology analysis and discusses how these barriers may be reduced in the future. Upfront cost of TES As discussed throughout the technology analysis, upfront cost remains a major barrier to the wider deployment (or to be strictly accurate high upfront cost without strong enough revenue opportunities). While not prohibitive in the residential sector for hot water cylinders (requirement for different heating system types), it is the primary barrier to the uptake of large scale storage for commercial, industrial and district heating users. Throughout the research it was expressed that especially building developers are reluctant to go for a higher upfront cost option, despite potential long term efficiency improvements. For underground TES technologies upfront investment is significant ranging from £100,000 to multi million pound investment required to realise a project. For the commercialisation of PCM and thermochemical TES costs are also a crucial barrier. Most PCM products would be too expensive for replacing hot water tank based systems at the current point in time. In terms of PCM and hot water cylinders competing for overall TES market share, there may be the potential of PCM stores replacing some tank systems. Although it is more likely that PCM products would complement the TTES market, either through hybrid applications or by using PCM based stores for different applications (e.g. space constraints or short-duration smoothing of heat pump production). The cost required for research and development of new PCM and THS technologies could also prove prohibitive to the advancement of the technologies. Electricity price signals Storing a kWh of heat can be several times cheaper than storing a kWh of electricity in batteries, so using TES to absorb electricity and output heat may become a significant driver of thermal energy storage. For an improved value proposition for different TES technologies, time-of-use tariffs and price signals for time shifting electricity (intra-day) would likely be a driver for the uptake of TES. The use of thermal storage for electricity grid balancing is technically feasible today (using tank, PCM thermal storage and electric storage heaters). With the only price signals at residential level currently being Economy 7 tariffs, the signals given to 70PDF Image | Thermal Energy Storage (TES) Technologies
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