Thermal storage deployment in the framework of current electricity market design

Sector coupling has a remarkable role in the optimal fulfilment of the energy transition. In order to reduce emissions of the energy sector, but also to increase the flexibility of the electricity system, clean energy production solutions offering multi-sector flexibility are needed, such as power-to-heat technologies and various thermal energy storages. In this paper, the participation of power-to-heat technologies and thermal energy storages in the electricity market are examined. In particular, the paper aims to review the key enablers, barriers, and drivers for power-to-heat and thermal energy storages in the context of electricity markets. Additionally, the technical potential of power-to-heat technologies combined with thermal energy storages are examined. The study is based on a literature review and examines especially the context of Finnish energy system and market.