Harnessing heat storage: a solution to lower costs and grid pressure
The Innovation Roadmap for Heat Storage 2024 emerged from a collaboration with over 20 Dutch heat storage developers, supervised by Invest-NL and Energy Storage NL.
Published on January 1, 2025
Heat storage, AI-generated image
Recent research by Invest-NL and Energy Storage NL reveals that implementing heat storage in thermal networks can significantly lower heat delivery costs in the Netherlands. This could reach a 'profit' of €0.70 to €3.20 per gigajoule and reduce electricity grid congestion. Heat storage captures surplus heat, often from renewable sources like solar or wind, for later use, thus offering a dual benefit: decreased energy bills and increased feasibility of new thermal networks.
The study highlights a substantial reduction in CO2 emissions—1.5 to 5 kg per gigajoule of heat—and a remarkable 150% to 200% decrease in energy curtailment, which is the wasting of renewable energy. However, high initial costs pose a challenge, necessitating targeted subsidies and grid tariff discounts. Without these, the potential advantages, including financial and societal benefits, cannot be fully realized. This research underscores the importance of integrating heat storage into the Dutch energy transition for a sustainable future.
Technical innovation landscape
Released in December, the Innovation Roadmap for Heat Storage 2024 emerged from a collaboration with over 20 Dutch heat storage developers. The document outlines various advanced techniques, including passive Phase Change Materials (PCMs), sensible heat storage, Thermochemical Materials (TCM), redox heat storage, and High-Temperature Storage (HTO). According to the research report, the Netherlands excels in Aquifer Thermal Energy Storage (WKO) and HTO technologies. This technical leadership positions the country to address key challenges in the sector, including efficiency improvements, functionality across diverse temperature ranges, and the development of sustainable materials.
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Economic benefits and grid impact
The economic advantages of heat storage are substantial and quantifiable. A detailed analysis demonstrates that heat storage enables the capture of renewable energy during overproduction periods when prices are low. This stored energy can then be utilized during peak demand, resulting in cost reductions of €0.70 to €3.20 per gigajoule of delivered heat. Beyond direct cost savings, heat storage significantly improves the business case for wind and solar parks by creating electricity demand during periods that would otherwise require production curtailment. The technology demonstrates remarkable efficiency in reducing wind and solar energy curtailment by 150% to 200%, representing a substantial improvement in renewable energy utilization.
Environmental impact and sustainability
Heat storage technology delivers significant environmental benefits through measurable reductions in carbon emissions. Studies confirm that implementing heat storage reduces CO₂ emissions by 1.5 to 5 kilograms per gigajoule of delivered heat. This reduction stems from two primary factors: more efficient utilization of renewable energy sources and decreased reliance on natural gas. The technology's ability to store excess renewable energy that would otherwise be wasted makes it a crucial component in achieving climate neutrality goals. The environmental benefits extend beyond direct emission reductions, as heat storage facilitates the broader integration of renewable energy sources into existing thermal networks.
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Implementation challenges and solutions
Despite its proven benefits, the widespread adoption of heat storage faces several obstacles. Key challenges include regulatory gaps, financing difficulties, and limited knowledge about heat storage applications. To address these issues, three primary focus areas have been identified: securing adequate financing and subsidies, improving integration with existing energy systems, and fostering international collaboration. The current subsidy structure and grid tariff discounts are insufficient to offset the high initial investment costs, the report confirms. Industry experts, including Invest-NL, advocate for expanding the Heat Investment Subsidy to specifically include heat storage solutions. This financial support is crucial as research indicates that without storage, production costs rise more rapidly with increases in gas or CO₂ prices.