Large-scale grid integration of residential thermal energy storages as demand-side flexibility resource: A review of international field studies

Power imbalances from fluctuating renewable electricity generators are counteracted by often expensive flexibility services. Heating, cooling, and air-conditioning (HVAC) of buildings, or domestic power-to-heat (P2H), are end uses of electricity that allow flexible load patterns due to the inertia of an attached thermal storage while meeting their quality constraints. Compared to smart appliances or electric vehicle charging, P2H exhibits large and predictable capacities of demand response (DR), because buildings in many countries account for 30-40% of the final energy demand, a large part of which is thermal. Yet, its practical flexibility potential remains largely unknown: is DR from P2H a mature technology for mass usage; is it cost-efficient, socially attractive, and ready to make key contributions to flexibility comparable to backup generators or battery storage? In the present paper, we review recent international field studies that are paving the way from research to practice. These field trials include real customers but have a broader research focus and a wider outreach than rolling out a new DR tariff or program or a specific new technology for DR. Their experience mirrors the technology readiness beyond revenue or policy studies, optimization frameworks or laboratory-scale micro-grids. We analyze the adequacy of the pricing mechanisms deployed for incentivization and remuneration and review the coordination mechanisms for balancing on different timescales including fast ancillary services. We conclude that current control and information technology and economic and regulatory frameworks which have been field-tested do not yet meet the flexibility challenges of smart grids with a very high share (> 50%) of intermittent renewable generation.