The report highlights the role of smart thermal storage, sometimes known as heat batteries, to keep people warm and provide flexibility to the power system. Smart thermal storage can work with or instead of heat pumps.
Analysis carried out by LCP Delta estimates that the UK could use smart thermal storage to reduce peak electricity demand on the coldest day of the year by 1.6GW by 2030. This peak demand reduction could increase to 4.1GW if the benefits of flexibility to electricity networks were reflected in pricing. Smart thermal storage can shift 17.64 GWh of electricity across the coldest day.
Urgent need to reform power markets
The report highlights the urgent need to reform power markets to properly value flexibility. The more the UK develops flexibility on the demand side, the fewer electricity networks need to spend on upgrading their infrastructure. The report offers 16 recommendations for policymakers to take forward.
Tom Lowe, founding director of Thermal Storage UK, said: “With the right system reforms, heat flexibility can support the UK to make the most of its abundant renewable power. To achieve this, we need to ensure we design heating systems to provide warmth to people and flexibility to the network.
“Smart thermal stores can deliver comfort, reduce peak power demand, lower carbon emissions and improve the security of supply. Low carbon electric heating is a growth opportunity in the UK and an export opportunity for British companies”