A bottom-up quantification of flexibility potential from the thermal energy storage in electric space heating

TL;DR

This paper quantifies the potential of thermostatically controlled loads in Swedish homes to provide grid balancing reserves, highlighting significant capacity and policy implications for energy markets.

Contribution

It introduces a bottom-up modeling approach for thermal energy storage in electric heating and assesses its reserve provision potential in Sweden.

Findings

Potential reserve capacity of 2 GW/0.1Hz on average

Peak capacity up to 6.4 GW/0.1Hz

Policy insights on market timing and activation signals

Abstract

Non-generating resources such as thermostatically controlled loads (TCLs) can arbitrage energy prices and provide balancing reserves when aggregated due to their thermal energy storage capacity. Based on a performed survey of Swedish single- and two-family dwellings with electric heating, this paper quantifies the potential of TCLs to provide reserves to the power system in Sweden. To this end, dwellings with heat pumps and direct electric heaters are modeled as thermal energy storage equivalents that can be included in a linear two-stage problem formulation. We approach the operational flexibility of the TCLs by modeling a risk-averse aggregator that controls decentralized TCLs and aims to maximize its own profit. The results show a potential of 2 GW/0.1Hz averaged over a year, and up to 6.4 GW/0.1Hz peak capacity. Based on a sensitivity analysis we derive policy implications regarding market timing and activation signal.