Need for heat storage in energy transition still underexposed
Heat storage plays a crucial role in making the energy system more sustainable. For example, by converting excess electricity into heat and storing it in heat buffers, the electricity sector, industry and the built environment become less dependent on natural gas. In doing so, heat storage reduces CO2, stabilizes energy prices and helps prevent grid congestion, among other things.
To accelerate the rollout of thermal storage in the Netherlands, professionalization in areas such as policy, technology and cooperation is necessary. The heat storage sector, united within Energy Storage NL, has developed a Plan of Action for this professionalization on behalf of the Ministry of Economic Affairs and Climate and presented it to the ministry today.
Scaling up heat storage lags
The Plan of Action lists the strengths and weaknesses of the sector; these were identified in consultation with some 50 industry stakeholders. Respondents see growing interest in thermal storage because of the transition away from fossil gas and the need for a sustainable and affordable means of long-term storage. The sector is well positioned because of its strong knowledge position that comes from encouraging pilots and demonstrations around energy storage. Nevertheless, the sector notices that scaling up heat storage projects in the Netherlands is difficult. This is mainly due to the lack of speed in the heat transition, the ignorance surrounding the potential of heat storage and the lack of financing when scaling up heat storage systems.
Heat grids and grid congestion
The heat transition is lagging behind in the Netherlands. Therefore, the outgoing cabinet recently decided to invest in the realization of heat networks itself. According to Energy Storage NL, it is crucial that the construction of heat networks includes storage. This is to decouple heat production from heat demand, thus creating flexibility. The sector also sees an important role for thermal storage in solving congestion. By converting excess electricity into heat, the electricity grid is relieved. In addition, heat storage can provide reduced peak demand for all-electric homes. However, the National Grid Congestion Action Program does not include any action on heat storage, which needs to change, according to Energy Storage NL.
Lack of funding
The rollout of thermal storage requires capital-intensive investments from the industry, with no certainty around long-term revenues. As a result, there is uncertainty from financiers to invest in thermal storage. In addition, targeted subsidies for thermal storage are lacking and laws and regulations prevent the rollout of thermal storage. For example, in the implementation of the European Energy Performance of Buildings Directive (EPBD), heat storage is seen as 'heat loss' because this heat is not directly used to make buildings more sustainable, thus preventing the incorporation of local heat storage.
Energy Storage NL therefore calls on the government to work with the sector to accelerate the rollout of thermal storage through the implementation of the action points in the Plan of Action.
