December 12, 2024 1 min. News

Heat storage can reduce energy costs and relieve electricity grid

For the first time, the benefits of heat storage in heat networks have been quantified in detail. Research by Invest-NL and Energy Storage NL shows that heat storage not only reduces the cost of delivered heat by €0.70 to €3.20 per gigajoule, but also counteracts the overloading of electricity grids. A combination of heat storage with heat networks is necessary for an affordable and feasible energy transition.

Heat storage: proven cost savings and solution to grid congestion

Heat storage is a technology that stores excess heat, often generated from renewable sources such as solar or wind energy, for later use. The study, conducted by consulting firm Kalavasta, shows that heat storage on a heat grid allows renewable energy to be stored at times of excess production, when prices are low, and used later during peak demand. This can result in lower energy bills for households and businesses, and also increases the feasibility of new heat networks.

More sustainable and efficientnter

The detailed analyses show that heat storage reduces CO₂ emissions per gigajoule of heat by 1.5 to 5 kilograms - depending on each heat network. This is due to more efficient use of renewable energy and lower reliance on natural gas. Heat storage also reduces curtailment - the wasting of renewable energy such as solar and wind power - by as much as 150% to 200%,

Higher rebates and subsidies needed

Although the benefits are great, investment in thermal storage remains challenging because of high upfront costs. Targeted subsidies and higher rebates on grid tariffs can make this promising technology more accessible. Without these measures, the demonstrated benefits to grid operators, industry and households, among others, cannot be realized.

About the study

The study was conducted by Kalavasta on behalf of Invest-NL and Energy Storage NL. It includes three case studies analyzing the financial and social benefits of thermal storage. The results show a clear added value for the integration of heat storage in the Dutch energy transition.