HEAT BALANCE (within discovery) will explore the commercial and technical feasibility of network flexibility from large-scale TES to reduce peak demand on the transmission and distribution networks over multiple timescales, reducing the need for network reinforcement. We will also consider benefits to electricity generation by reducing the capacity required to meet peak demand and the gas system by helping to smooth the future demand for hydrogen.
HEAT BALANCE meets the scope of the competition by:
• Using smart approaches to manage large-scale electrified heat deployment in a local area, reducing the need for network reinforcement
• Inclusion of a work package which focuses upon the commercial and investment case for financing heating technologies alongside energy network innovation
• Working with partners on how deployment of low carbon heating solutions can be better coordinated to minimise gas and electricity network constraints at lowest economic cost.
SP Transmission is the lead organisation. We want to help electricity customers transition to low carbon heat at the most efficient cost and enable a quicker transition.
Wales & West Utilities are the gas distribution network operator for Wales and South West England.
Academic Partners
• The University of Edinburgh will lead the Commercial WP, leveraging their experience of transmission system modelling in the INTEGRATE project.
• The University of Glasgow will be a major contributor to the Technical WP bringing their extensive experience in geological thermal energy storage.
Technical & Commercial Expertise
• Ramboll will lead the Technical WP bringing their experience in the rapid development of the thermal pit storage technology in Denmark.
• DELTA-EE will primarily contribute to the Commercial WP building on learnings from their research into large-scale TES undertaken for BEIS and others.
Heat Network Providers
• Vattenfall will contribute to both WPs from their practical experience as one of Europe's largest producers and retailers of electricity and heat.
• Erda Energy will support both WPs bringing expertise from their innovative solutions for low-carbon heating, cooling and geo-exchange technology.
Potential users are those who will deploy heat networks such as; commercial heat service providers, housing developers, local authorities, housing associations, and institutional investors. Research has shown users need a clear pathway to deploy large-scale TES. This includes understanding of: -
• The different technical solutions available – their advantages and disadvantages
• The costs and benefits to the ultimate consumers of the heat being delivered
• New commercial arrangements developed to realise the whole systems value of large-scale TES
Problem Bring Solved
Problem
Credible pathways for decarbonising heat result in a large increase in electricity demand as gas and other fossil fuel fired boilers are replaced by heat pumps. One of the major challenges for the electricity system is the huge seasonal variation in the demand for heat, with gas demand representing heat. In addition, there are extreme intra-day fluctuations in heat demand with rapid ramp rates.
Problem statements:
• Unmitigated increase in peak demand for electrified heat would overload the transmission and distribution networks, requiring major investment.
• Around 30% increase in generation capacity is needed for peak heat electrification, requiring major investment.
• To meet the unmitigated peak demand from low carbon renewable generation implies massive over-capacity in the generation and transmission systems for much of the year which will require to be met by investment.
This would lead to an increase in consumer bills.
Renewable generation is connected predominantly in the north of GB and heat load is predominantly in the south. The interconnectors in the transmission system are already constrained in their ability to export renewable electricity at times.
Transmission connected renewable generators are being constrained off at a cost of - £450m per year to electricity customers and this is increasing. Renewable generation capacity is expected to quadruple to meet net zero, which could significantly increase constraints.
However, we have an opportunity...
Decarbonisation will profoundly change the way we heat our buildings, commercial and domestic. This proposal forms part of the blueprint required for that transition and supports government objectives. Both inter-seasonal and short-term thermal energy storage (TES) will be essential to balance the demand and supply for the future net zero heating system.
Large-scale TES is one of the lowest cost methods of energy storage and one of the most flexible. Under smart control it can shift demand over timescales between a few hours to inter-seasonally. However, it has not been commercialised in GB to date. There is a huge potential for large-scale TES in conjunction with heat networks.
The number of heat networks is set to rapidly increase as part of the government's energy and environmental plans and legislation. There is an opportunity to ensure that appropriate TES is incorporated with heat networks to assist with an efficient transition to low carbon heat and optimal development of the whole energy system.
