BE24039 - Exploring take-up and usage of Thermal Energy Storage (TES) in district heat networks

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**Please note this is an award notice, not a competition. This contract has been awarded via the Crown Commercial Services - RM6126 - Research and Insights .** The Department for Energy Security and Net Zero has a requirement to appoint a supplier to support the delivery of research on district heat networks. The Heat and Buildings Strategy has set out a range of low-carbon heating technologies that could replace fossil fuels. Heat networks is one such technology which will play a key role, particularly in areas of high-density heat demand and where there are low carbon heat sources. The Net Zero Strategy set out the Government's expectation that around one fifth of heat demand in England and Wales could be met by heat networks in 2050. The Government intends to publish a Heat Networks Strategy in 2024, where it will update its expectations for heat network deployment over time, particularly in response to heat network zoning - which recently received royal assent as part of the Energy Act. Heat networks are systems in which heating, cooling or hot water is generated at a central source and supplied by the operator to multiple customers through a pipe network serving either multiple buildings (district networks or sometimes known as district heating) or multiple occupants in a single building (communal networks). Heat networks can accommodate large thermal energy storage (TES) that can be operated centrally. TES refers to the heating or cooling of a medium such as water, to store energy which can be later discharged as heat. The focus of this research will predominately be on district heat networks as they are most likely to experience the impact/benefit of TES storage at scale. However, should the study identify examples of TES usage in communal heat networks we are also keen for this evidence to be included the research. Aims and Objectives The research has two key objectives: - Provide insight into the current and future role of TES in heat networks in the UK and how this differs to international comparators to understand industry TES usage, including perceived benefits and any barriers and enablers. - Gather evidence on TES costs to inform future quantitative modelling work on TES within DESNZ, particularly its role in electricity system balancing.

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