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Mitsui & Co. Global Strategic Studies Institute Monthly Report February 2021 THERMAL ENERGY STORAGE DEVELOPING FOR A DECARBONIZED SOCIETY Yuji Inada Industry Innovation Department, Technology & Innovation Studies Division Mitsui & Co. Global Strategic Studies Institute SUMMARY Due to the spread of renewable energy and seasonal factors, more power is generated than demand, causing the surplus power problem. This has caused a need for mechanisms and technologies to store electricity power without throwing it away. There are various technologies such as batteries for storing power, and they each have their own appropriate scale and scope of use. Power generation using thermal energy storage is a technology suitable for large-scale energy storage over long periods of time made up of a combination of existing technologies, and is characterized by its high reliability and low cost. A shift is taking place from battery-based power storage in the past to practical application of thermal energy storage and hydrogen energy storage in the future. Energy business operators need to consider combinations of optimal power storage technologies from perspectives such as storage time and capacity, cost, demand and transmission grids, and location. WHY ARE ENERGY STORAGE AND POWER STORAGE NECESSARY? With the spread of renewable energy (renewables), power generation using renewables sometimes exceed demand temporarily when there are favorable conditions, which are ample sunlight for photovoltaic power generation and continuously moderate wind for wind power generation. This results in surplus power, which destabilizes power grids and can cause power outages. For the purpose of stabilizing power grids so that power surpluses may not arise, restrictions are applied in the form of power limits to suspend photovoltaic and wind power generation. Even in Europe, where power grids are linked among multiple countries, output limits are applied when there is a power surplus. Renewables that should normally contribute to the reduction of CO2 are not effectively utilized, and subsidies for renewable energy business operators also became an economic problem; for example, those reached 700 million euros in Germany. Renewables can only generate power when the sun is shining or the wind is blowing, and power generation cannot be adjusted according to power demand in the same way as oil or gas power generation. While being a trump card in the reduction of CO2, the weakness of renewables is being power that cannot be adjusted. A large volume of surplus power is expected to be generated as renewables spread in the future. With such a trend, there is an urgent need to establish power storage facilities capable of storing surplus power and supplying the necessary volume when it is required. THERMAL ENERGY STORAGE GAINING ATTENTION AS A POWER STORAGE TECHNOLOGY Power storage technologies include the thermal energy storage covered in this paper, in addition to a variety of technologies in practical application or under development, such as batteries, pumped storage hydropower, compressed air energy storage, and hydrogen energy storage (Figure 1). Batteries are a technology that stores electricity as electricity, and have practical applications in a variety of devices such as personal computers and mobile phones. In addition, it is a widely used power storage technology such as being seen in some households 1PDF Image | THERMAL ENERGY STORAGE DEVELOPING FOR A DECARBONIZED SOCIETY
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