Thermal energy storage (TES) can be more cost-effective than lithium-ion batteries in several specific regions and applications:
- Industrial Regions with High Heat Demand: In areas requiring high-temperature process heat, such as steel and chemical industries, TES can be significantly cost-effective. For instance, a report highlights that TES can offer savings of between 30% and 150% compared to traditional process heat, particularly in industries where fossil fuels are currently dominant.
- Cold and Moderate Climate Zones: In regions like Minneapolis and Chicago, TES, when combined with Combined Heat and Power (CHP) systems, results in the lowest total energy costs. This is because excess heat produced in summer can be stored for winter use, thereby reducing reliance on additional heating sources.
- Building Sector: For building heating and cooling, TES technologies are being developed to be more affordable and efficient than traditional methods, especially when integrated with renewable energy systems. This approach can level out peak energy demands and reduce grid outages.
- Regions with Abundant Renewable Resources: Where renewable energy is abundant but farther from demand centers, TES can be cost-effective by enabling the use of local renewable energy without the need for extensive transmission infrastructure.
- Areas with Favorable Policy Incentives: In regions with incentives for greenhouse gas reduction, like applying a carbon price of $50 per tonne, TES can be an attractive alternative to natural gas for industrial heat, provided the system can access wholesale power market prices.
In contrast, lithium-ion batteries are typically better suited for applications requiring rapid charge and discharge cycles, such as electric vehicles or grid stabilization. However, for long-duration energy storage needs, especially in thermal applications, TES is often more economical and efficient.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/are-there-any-specific-regions-where-thermal-energy-storage-is-more-cost-effective-than-lithium-ion-batteries/
