2023-07-13 Industrial Thermal Batteries Report v13
14 July 2023
Optimizing a least-cost heat supply can involve many parameters, but for a given level of required reliability, the two main factors are the degree of renewable curtailmentxiii and the amount of energy storage xiii The share of renewable electricity generation that can neither be stored in the battery nor used immediately by the industrial facility is its curtailment rate. [...] INDUSTRY WHILE SUPPORTING A HIGH-RENEWABLES GRID Price-Hunting Thermal Battery Model Results At the other end of the spectrum from the generation-following battery, a price-hunting thermal battery is connected to the grid and aims to take advantage of fluctuations in electricity pricing. [...] Optimization of Battery Charge Rate and Capacity The optimal combination of maximum charging rate and battery capacity is a function of how these factors affect the electricity costs paid by the industrial firm and the capital costs of the thermal battery. [...] The cost of delivered heat is the sum of the four rows immediately above it, i.e., the cost of electricity, grid access charges, and the levelized capital cost of the battery itself, adjusted for thermal batteries’ 95 percent round-trip efficiency. [...] BENEFITS TO THE ELECTRICITY SYSTEM The benefits of a thermal battery to the electricity system depend on where it lies on the “generation-following” to “price-hunting” spectrum.