Power-to-heat can support net zero and the grid says ENTSO-E

Power-to-heat (P2Heat) integration can be a catalyst in meeting clean energy targets but also in providing flexibility services, ENTSO-E reports.

In a new study on the interactions and synergies of the power and heat sectors, the transmission system operator (TSO) organisation finds that P2Heat will unveil new energy efficiency opportunities through the use and development of various technologies.

These include heat pumps, biomass, solar-thermal, thermal storage, waste management and waste to heat, as well as waste heat recovery from industrial processes/data centres.

Such technologies are mature and commercially available, but more incentives are needed to increase their use while market regulation should facilitate the participation of flexible resources into the energy mix, says ENTSO-E.

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The study was undertaken to analyse the current situation of the heating and cooling sector in the EU and its objectives for 2030 and 2050, as well as the impacts on the energy and power systems and TSO practices.

The heating and cooling sector is considered key for decarbonisation as responsible for half of the energy demand in the EU and mainly reliant on fossil fuels also is a major emitter of CO2.

However, its integration into the future ‘system of systems’ is less straightforward than transport and gas/hydrogen sectors as energy in the form of heat is significantly less transportable than electricity and fuels.

The study reports that the heating and cooling sector presents untapped opportunities to improve the integration of renewable energies. With the help of thermal storage, heat generated by electricity will be stored in a more economical manner and increase the flexibility capabilities of the energy system.

Although normally the thermal impact is local, a wider impact is foreseen through power interconnections among different countries, attempting to utilise any source of flexibility of the whole energy system.

The study also states that digitalisation will be a key enabler for leveraging the flexibility resources from heating and cooling assets. Trusted and secure access to data, data interoperability and fast data exchange will facilitate the provision of congestion management and frequency reserve services. A retrofit of the existing units, however, is required and its incentivisation is necessary.

The availability and preservation of data for heat demand is essential to evaluate the respective energy needs and challenges and conduct common integrated studies with electricity and gas variables.

Innovation and cooperation

Among other findings, a supportive framework for innovation is crucial to demonstrate and speed-up the time-to-market of the required technical and digital solutions as well as that of new energy services and business models centred on consumers.

Finally, as the P2Heat ecosystem involves many actors, the TSOs will have to update their planning practices with a multisectoral approach and coordinated studies with stakeholders from other energy sectors, mainly gas, and including district heat operators and energy managers of heat intensive industries.

In particular enhancing the cooperation with DSOs, who will also face challenges from electrification of heat including network congestions and demand peaks, is a necessary step forward.

TSOs also should continue to monitor technology progresses and, especially for flexibility provision participate in demonstrations and pilot projects to assess the capabilities, potential and shortcomings of the solutions proposed by the industry.