Project Summary
Our project addresses the challenges of transitioning to a predominantly electrified energy system from a multi-vector system reliant on gas and diesel. We propose using electrified thermal storage solutions, such as phase change materials and thermochemical storage, to enhance grid stability and provide backup during supply disruptions. This approach ensures reliable heating for vulnerable customers while offering additional benefits like cost savings, reduced peak demand, and improved heat and grid flexibility. By actively managing heat storage based on grid signals, the project supports decarbonisation efforts and explores market opportunities for integrating thermal storage into the future energy landscape.
Innovation Justification
Our project introduces innovative energy storage solutions using phase change materials (PCMs) and thermochemical heat storage systems to tackle long-term and flexible heating challenges. While PCMs and thermochemical storage are used in areas like building insulation and solar plants, they are underutilized in the energy grid's flexibility market. By advancing these technologies for short- and long-term heat storage, the project aims to improve energy efficiency, affordability, and reduce waste compared to conventional batteries and water tanks.
Core Innovation:
Unlike existing battery systems, PCMs and thermochemical storage solutions offer several advantages:
Higher energy density, allowing more energy to be stored in a smaller space.
Lower self-discharge rates, which means less stored energy is wasted over time.
Lower unit cost, making them more affordable for widespread adoption.
Longer heat supply duration, making these systems ideal for long-duration energy storage, thus enhancing grid flexibility.
This innovation explores untapped potential for long-duration storage, developing pathways for integration into the energy flexibility market. Additionally, it aims to
provide ancillary grid services such as load shifting and peak demand management, further supporting heat decarbonisation.
Technical Readiness
While the underlying technologies exist (technology readiness levels, TRL, 6-7), their application in energy flexibility remains underdeveloped. PCM technologies already have off-the-shelf products, but thermochemical storage requires further development, with integration timelines projected at 1-3 years (integration readiness levels, IRL) and 3-5 years (commercial readiness levels, CRL). This phase will elevate readiness levels through trials, paving the way for long-term commercialization and grid integration.
Suitability for SIF Funding
The scale and nature of the project make it suitable for SIF funding because it requires multiple trials across different scenarios to assess real-world viability and derisk uncertainties. Unlike other funding sources, SIF supports projects that need comprehensive testing in the Discovery and Alpha phases to progress to a Beta phase. This phased approach enables the safe, cost-effective development of innovative grid solutions without the financial risk typical of large-scale rollouts.
Counterfactual Solutions
Two primary counterfactuals were considered:
1. Non-thermal solutions (e.g., batteries and electric vehicles), which are proven but limited in long-term heat storage and cost-effectiveness.
2. Conventional thermal storage solutions, which exist but on a smaller scale as off-the-shelf products, have yet to be proven in flexibility markets. Our solution opens new pathways for thermal storage to contribute to grid flexibility and heat decarbonisation, offering an alternative to existing technologies.
Impacts and Benefits
Pre-Innovation Baseline
Currently, energy networks struggle to manage peak demand, especially after the rollout of electrified heating during winter. Conventional energy storage systems, such as batteries and water tanks, offer limited flexibility for long-duration storage and peak shaving. This inefficiency leads to increased grid reinforcements cost, along with higher energy bills for consumers. Vulnerable customers, often facing energy poverty, are particularly affected, relying heavily on stable heating solutions. Key metrics for the baseline include peak demand surges, consumer energy bills, and CO2 emissions from high peak-time consumption.
Forecasted Net Benefits to Consumers
Electrified thermal storage systems, if implemented as a business-as-usual solution, can deliver substantial benefits:
Reduction in Network Reinforcement Costs: Electrified thermal storage systems can store and discharge energy during peak periods, helping to delay expensive grid reinforcements. This can save network operators significant costs by postponing the need for infrastructure upgrades to manage peak demand.
Consumer Cost Savings: Vulnerable customers will benefit from lower energy bills as these systems allow heat to be generated during off-peak times when prices are lower, potentially leading to savings of 5-10% per annum.
Support for Vulnerable Customers: During power outages, electrified thermal storage systems can still provide essential heating services, ensuring continuity for those most at risk.
Lower Upfront Costs: Compared to traditional battery storage, electrified thermal storage systems are more affordable, reducing initial capital expenditure for consumers and network operators.
Carbon Reduction: By balancing demand and storing energy efficiently, these systems could save thousands of tonnes of CO2 annually, contributing to decarbonisation goals.
Benefits Realised Through Project Delivery
In the Discovery phase, preliminary assessments will show potential reductions in peak demand for various electrified thermal storage types, demonstrating their ability to alleviate grid stress. Initial feasibility studies will confirm their effectiveness in providing consistent heating and/or cooling to vulnerable customers and in integrating with flexible services and any other potential business cases, creating new revenue streams for DSO, energy providers and end customers.
Other Benefits
Seasonal Energy Storage: These systems can store thermal energy long-term, using surplus energy generated in summer during winter.
Load Balancing: Responding to grid signals, these systems help manage peak demand, enhancing stability.
Higher Energy Density: Electrified thermal storage systems provide more compact energy storage, making them suitable for space-constrained environments.
Cooling Solutions: These systems also offer cooling capabilities, broadening their applicability across various sectors and improving overall energy management.
