Construction of a Demand Side Plant with Thermal Energy Storage

Abstract

Utility managements have two primary responsibilities. They must supply reliable electric service to meet the needs of their customers at the most efficient price possible while at the same time generating the maximum rate of return possible for their shareholders. Regulator hostility towards the addition of generating capacity has made it difficult for utilities to simultaneously satisfy both the needs of their ratepayers and the needs of their shareholders. Recent advances in thermal energy storage may solve the utilities' paradox. Residential thermal energy storage promises to provide the ratepayers significantly lower electricity rates and greater comfort levels. Utilities benefit from improved load factors, peak capacity additions at low cost, improved shareholder value (ie. a better return on assets), improved reliability, and a means of satisfying growing demand without the regulatory and litigious nightmares associated with current supply side solutions. This paper discusses thermal energy storage and its potential impact on the electric utilities and introduces the demand side plant concept.