1、Net-zero heatLong Duration Energy Storage to accelerate energy system decarbonizationPublished in November 2022 by the LDES Council.Copies of this document are available upon request or can be downloaded from our website:.This report was authored by the LDES Council in collaboration with McKinsey&Co

2、mpany as knowledge partner.This work is independent,reflects the views of the authors,and has not been commissioned by any business,government,or other institution.The authors of the report confirm that:1.There are no recommendations and/or any measures and/or trajectories within the report that cou

3、ld be interpreted as standards or as any other form of(suggested)coordination between the participants of the study referred to within the report that would infringe EU competition law;and2.It is not their intention that any such form of coordination will be adopted.While the contents of the report

4、and its abstract implications for the industry generally can be discussed once they have been prepared,individual strategies remain proprietary,confidential,and the responsibility of each participant.Participants are reminded that,as part of the invariable practice of the LDES Council and the EU com

5、petition law obligations to which membership activities are subject,such strategic and confidential information must not be shared or coordinatedincluding as part of this report.ContentsPreface 4Executive summary 8Acronyms 131.The role of LDES in net-zero energy 142.TES as an enabler to decarbonizin

6、g heat 183.LDES technologiescost and competitiveness 244.TES business cases 345.An integrated energy system perspective 486.Unlocking the TES opportunity 54Conclusion 57Appendix A:Methodology and assumptions 58Appendix B:State of the TES industry 67Acknowledgements 693Net-zero heat:Long Duration Ene

7、rgy Storage to accelerate energy system decarbonization|LDES Council,McKinsey&CompanyPrefaceWe must capture the narrow window of opportunity to achieve a net-zero energy system.The decarbonization of the energy sector needs to accelerate to become aligned with a net-zero pathway that limits global w

8、arming to below 1.5C.However,achieving net-zero emissions by 2050 requires massive development of renewables,new and reinforced infrastructure,and the adoption of new clean technologies.Many challenges compound in this transition,as supply chains need to be scaled up,end-use equipment needs to be ad

9、apted,and infrastructure needs to be deployed and reinforced(for example,transmis-sion and distribution electricity grid expansions can take up to 15 years to realize).Immediate action is required to meet emission-reduction targets,limit the impact of climate change,and maximize the opportunities ah

10、ead.As outlined in the 2021 LDES Net-zero power report,1 long-duration energy storage(LDES)offers a low-cost flexibility solution to enable energy system decarbonization.LDES2 can be deployed to store energy for prolonged periods and can be scaled up economically to sustain energy provision for mult

11、iple hours(ten or more),days(multiday storage),months,and seasons.LDES can store energy in various forms,including mechanical,thermal,electrochemical,or chemical and can contribute significantly to the cost-efficient decarbonization of the energy system.Furthermore,it helps address major energy tran

12、sition challenges such as solar and wind energy supply variability,grid infrastructure bottlenecks,or emissions from heat generation.1 https:/ Whenever LDES is mentioned as a technology group,it is defined as a technology storing energy for ten or more hours,as per ARPA-Es definition.When LDES is me

13、ntioned in analysis or modeling,the actual duration length is always specified,in line with NRELs recommendation.3 It is assumed that the power sector achieves net-zero emissions by 2040,and other sectors by 2050.4 The definition of energy system used in this report includes all components related t

14、o the production,conversion,and use of electrical energy,heat,and hydrogen.The electrification of the transport sector is included indirectly in the final electricity demand scenario from the McKinsey Global Energy Perspective.This report presents the latest view on the role of LDES in helping achie

15、ve Net-zero power and heat by 2050,3 focusing on the potential role of thermal energy storage(TES)in realizing net-zero heat.It builds on prior LDES Council research and analysis and presents updated cost perspectives based on data from LDES Council members.As a follow-up to previous LDES Council pu

16、blications,this report focuses on the heat sector,a pivotal component in achieving global decarbonization and climate targets.Accordingly,it also focuses on a particular set of LDES technologies,TES,which can store heat,decarbonize heat applications,and integrate renewables in this sector and the br

17、oader energy system.This report also highlights how an integrated system approach is imperative to cost-efficiently decarbonizing energy systems.4 Electricity,heat,and hydrogen are becoming increasingly interconnected,driven by the growing uptake of renewable energy and access to technologies that i

18、ntegrate them,such as heat pumps and LDES(Exhibit 1).This creates the need to look at the integrated ecosystem rather than the separate energy sectors to jointly inform cost-optimized energy infrastructure developments.The analyses in this report take interdependencies between power,heat,and hydroge

19、n into account to assess the cost-optimized mix of flexibility solutions needed for the heat and power sectors.It highlights the relationship between power LDES and TES to accelerate the energy transition,and the role that TES can play in decarbonizing heat applications.4Net-zero heat:Long Duration

20、Energy Storage to accelerate energy system decarbonization|LDES Council,McKinsey&CompanyExhibit 1Power,heat,and hydrogen interconnectionsFocus of this reportPowerHeatHydrogenPower-to-heatHeat-to-powerPower-to-hydrogenHydrogen-to-powerHydrogen-to-heatHydrogencombined heat and power5Net-zero heat:Long

21、 Duration Energy Storage to accelerate energy system decarbonization|LDES Council,McKinsey&CompanyThe LDES Council is a global,executive-led organization that strives to accelerate the decarbonization of the energy system at the lowest cost to society by driving the innovation and deployment of LDES

22、 and decreasing emissions.The LDES Council was launched at the Conference of Parties(COP)26 and currently comprises 64 companies.5 It provides fact-based guidance to governments and industry,drawing from the experiences of its members,which include leading technology providers,industry and service c

23、ustomers,capital providers,equipment manu-facturers,and low-carbon energy system integrators and developers.All technology providers,industry and services customers,capital providers,equipment manufacturers,and low-carbon energy system integrators and developers are members of the LDES Council.5 Mem

24、ber count at the time of the release of this report in November 2022.Technology providersAbout the LDES Council6Net-zero heat:Long Duration Energy Storage to accelerate energy system decarbonization|LDES Council,McKinsey&CompanyIndustry and services customersLow-carbon energy system integrators and

25、developersEquipment manufacturersCapital providers7Net-zero heat:Long Duration Energy Storage to accelerate energy system decarbonization|LDES Council,McKinsey&CompanyExecutive summaryDecarbonizing the global energy system requires an integrated approach to inform optimal energy infrastructure devel

26、opments in a timely manner.It also requires systemic changes as we move toward energy systems predominantly supplied by variable renewable energy.To realize a 1.5C scenario by 2050,projections estimate a fivefold increase in total renewables supply and a twofold increase in total electricity demand

27、by that year.6 Furthermore,there are early signs that power,heat,and hydrogen are becoming increasingly interconnected through sector-coupling technologies like heat pumps,electrolyzers,or hydrogen boilers.This,in addition to the growing share of renewables and electrification,further increases the

28、energy systems com-plexity.Therefore,an integrated approach could help ensure a cost-optimized and timely energy transition.LDES offers a clean flexibility solution to secure power and heat reliability.LDES encompasses a range of technologies that can store electrical energy in various forms for pro

29、longed periods at a competitive cost and at scale.These technologies can then discharge electrical energy when neededover hours,days,or seasonsin order to fulfill long-duration system flexibility needs to shift the increasing variable,renewable energy supply to match demand.This report builds on the

30、 2021 LDES Council Net-zero power report by focusing on the role of LDES in realizing net-zero power and heat while expanding on the role thermal energy storage(TES)can play in decarbonizing heat applications.TES provides an LDES solution to electri-fying and firming heat.Decarbonizing the heat sect

31、or is crucial for realizing a net-zero energy system by 2050,given that it represents roughly 45 percent of all energy-related emissions today.7 TES can decarbonize heat applications by electrifying and firming heat with variable 6“Net zero by 2050,a roadmap for the global energy sector,”IEA,2021.7

32、The baseline includes emissions from heating,industrial processes,transport,and other energy sector emissions.It excludes power generation emissions.renewable energy sources.In addition,it can optimize heat consumption in industrial processes and facilitate the reuse of waste heat or the integration

33、 of clean heat sources(for example,from thermal solar).TES can enable the cost-efficient electri-fication of most heat applications.TES covers a variety of technologies that can address a wide range of storage durations(from intraday to seasonal)and temperatures(from subzero to 2,400C).According to

34、the 2022 LDES benchmark results,TES enables cost-ef-ficient electrification and decarbonization of the most widely used heat applications,namely steam and hot air.The benchmark results also indicate that firming heat is very cost-efficient when the final demand is heat.Some TES technologies are alre

35、ady commercially available with various easy-to-customize uses.To date,the most commonly deployed TES technologies include medium-pressure steam,with various appli-cations,including in the chemicals or food and beverage industries.Additionally,developing technologies will expand the TES solution spa

36、ce with innovative concepts and address temperature needs well above 1,000C.TES business cases demonstrate profi-tability at an internal rate of return(IRR)of 16 to 28 percent,subject to local market conditions.These include optimal physical configurations(access to captive renewables,captive heat,o

37、r grid electricity)and market designs(including low grid fees and the remuneration of flexibility).The business case assessments cover a wide range of realistic TES use cases,namely:medium-pressure steam in a chemicals plant(up to 28 percent IRR),district heating supplied by a peaker plant(up to 16

38、percent IRR),high-pressure steam in an alumina refinery(up to 16 percent IRR),and co-generation in an off-grid greenhouse(up to 22 percent IRR).All market-exposed business 8Net-zero heat:Long Duration Energy Storage to accelerate energy system decarbonization|LDES Council,McKinsey&Companycases indic

39、ate a supportive ecosystem that acknowledges the value of flexibility,such as ancillary services,would likely be critical to ensuring wide commercial adoption.The business case with behind-the-meter renewable generation shows that TES can already be commercially feasible regardless of external marke

40、t conditions.LDES technologies are expected to become increasingly cost-competitive as the market matures.The updated 2022 power LDES cost benchmark solidifies the forecast that LDES costs will decline in the following years,suggesting a 25 to 50 percent overall capital expenditure(capex)reduction o

41、f power LDES technologies by 2040.In addition,the 2022 TES cost benchmark indicates that TES capex is also expected to decline by 2040,with an estimated drop of between 5 and 30 percent for power capex and 15 and 70 percent for energy storage capex.A case study on the port of Rotterdam exemplifies t

42、he relevance of LDES for decarbonizing energy hubs while creating system value.The case study represents a typical industrial hub with significant power and heat demand on-site,where a combination of TES and power LDES can play a role in decarbonizing the system.In an industrial location like the po

43、rt of Rotterdam,the need for industrial heating can fundamentally change the configuration for a net-zero energy system.TES can firm the variable offshore wind supply into a more stable supply of clean heat for industrial heating,including high-temperature heating.TES could double the global LDES ca

44、pacity potential in a cost-optimized net-zero energy pathway in line with a 1.5C scenario.Based on integrated system modeling,TES can expand the overall installed capacity potential of LDES to between 2 and 8 TW by 2040(versus 1 to 3 TW without TES),which translates to a cumulative investment of USD

45、 1.6 trillion to USD 2.5 trillion.TES enables this additional LDES opportunity by providing a cost-efficient alternative to decarbonizing heat and high-tem-perature heating applications.This is estimated to reduce system costs by up to USD 540 billion per year while creating broader system value by

46、enabling an accelerated renewables build-out and optimization of grid utilization.Critical support elements could help drive more TES adoption.A supportive ecosystem that rewards flexibility and promotes a tech-nologically level playing field for flexibility solutions like LDES is critical to accele

47、rating the scale-up of TES.Additionally,increasing awareness and providing support to derisk initial investments is pivotal.Business leaders,policymakers,and investors have an important role to play in unlocking the TES potential by reducing long-term uncertainty and thereby shaping the cost-optimiz

48、ed pathway toward the net-zero energy system of the future.9Net-zero heat:Long Duration Energy Storage to accelerate energy system decarbonization|LDES Council,McKinsey&CompanyNet-zero heatLong Duration Energy Storage to accelerate energy system decarbonizationRealizing a cost-optimized transition t

49、o net zero across all energy sectors requires significant deployment of renewables,increased interconnections between power,heat,and hydrogen,and supporting infra-structure.System flexibility will be critical to securing energy system reliabilityThe transition to net zero requires an integrated ener

50、gy system perspectivePowerHeatHydro-genPower-to-hydrogenHydrogen-to-powerPower-to-heatHeat-to-powerCHP with hydrogenproduction and useHydrogen-to-heatLDESInfra-structureGlobal final energy consumption by sectorShare of global energy-related CO2e emissionsfrom industrial heat20%from buildings heat10%

51、IndustryBuildings:heatingDistrict heatingBuildings:cookingTransportationMachinery,appliances,lightingHeatingandcoolingHeat decarbonization is critical for net zero,as it accounts for 45%of energy-related emissionsA cost-optimized net-zero pathway could by 2040 result in.USD 1.73.6 trcumulative LDES

52、capex investments28 TW deployed LDEScapacityup toUSD 540 bnsystem savings per yearLong duration energy storage enables a cost-optimized pathway toward net zero Baseline excludes electricity emissions.1.10Net-zero heat:Long Duration Energy Storage to accelerate energy system decarbonization|LDES Coun

53、cil,McKinsey&CompanyThermal energy storage(TES).requires enablers to drive broad adoptionReward value of flexibility-Reduced grid fees-Ancillary marketsCreate a technolo-gically level playing field across flexibility solutions through-Regulations-StandardsIncrease aware-ness of TES technologies-Pilo

54、ts-Demonstration-PlantsDerisk initial investments-Subsidies-GuaranteesStorage duration use caseTechnical prises a wide range of technologiesR&DPilotsCommerciallyavailableStorage temperatureMonthsHoursSome TES technologies are already commercially availableTES enables electrification of heat applicat

55、ions with different temperature and duration needs0C2,400C.is a cost-efficient 24/7 heat decarbonization solutionGasboilerGas boilerwith CCSHydrogenboilerLevelized cost of heat(steam)for selected technologiesUSD/MWhBiomassboilerElectric boilerwith Li-ionbatteryHeatpumpwith TES406545656501

56、525TES makes storing heat more cost-efficient than storing power for heat applicationsElectricboilerwith TES3060Heat pumpwithLi-ionbattery2535Technology equivalents can present attractive business cases subject to local conditions.IRRs for selected use casesUpside caseOff-gridgreenhouse22%District h

57、eatingpeaker plant16%0%Aluminarefinery16%Chemicalsplant28%6%Base caseTES behind-the-meter business cases can be positive as there are no grid connection feesCost ranges reflect fuel prices(gas,electricity,biomass).Includes CO2 emission costs of USD 100/t.1.Carbon capture and storage.2.11Net-zero hea

58、t:Long Duration Energy Storage to accelerate energy system decarbonization|LDES Council,McKinsey&CompanyAcronymsCapex Capital expenditureCCS Carbon capture and storageCO2 Carbon dioxideCO2e Carbon dioxide equivalentEJ ExajoulesGHG Greenhouse gasGt CO2eq Gigatons of carbon dioxide equivalentGW Gigawa

59、ttGWh Gigawatt-hourHz HertzIRR Internal rate of returnkW KilowattkWh Kilowatt-hourLCOE Levelized cost of electricityLCOH Levelized cost of heatLi-ion Lithium-ionLDES Long duration energy storageMPM McKinsey Power ModelMW MegawattMWh Megawatt-hourMWhth Megawatt-hour thermalMWth Megawatt thermalNPV Ne

60、t present value PV PhotovoltaicPPA Power purchase agreementRTE Round-trip efficiencyR&D Research and developmentTTF Title transfer facilityTW TerawattTWh Terawatt-hourTES Thermal energy storageT&D Transmission and distributionWACC Weighted average cost of capital13Net-zero heat:Long Duration Energy

61、Storage to accelerate energy system decarbonization|LDES Council,McKinsey&Company1The role of LDES in net-zero energyDecarbonizing the energy system requires an integrated approach to inform optimal energy infrastructure developments in a timely manner.It also requires systemic changes as we move to

62、ward energy systems predominantly supplied by variable renewable energy.To realize a 1.5C scenario by 2050,projections estimate a fivefold increase in total renewables supply and a twofold increase in total electricity demand by that year.Furthermore,there are early signs that power,heat,and hydroge

63、n are becoming increasingly interconnected through sector-coupling technologies like heat pumps,electrolyzers,or hydrogen boilers.This,in addition to the growing share of renewables and electrification,further increases the energy systems complexity.Therefore,an integrated approach could help ensure

64、 a cost-optimized and timely energy transition.A net-zero energy system requires clean flexibility solutions Achieving net-zero emissions in the energy sector by 2050 is pivotal for limiting global warming to 1.5C.To keep global warming below 1.5C compared to preindustrial levels,as called for in th

65、e Paris Agreement,greenhouse gas(GHG)emissions need to reach net zero by 2050.The energy sector currently accounts for roughly three-quarters of GHG emissions and holds the key to mitigating the worst effects of climate change.8 Replacing polluting fossil energy with renewable energy sources like wi

66、nd or solar and meeting the energy-shifting demand with LDES will help significantly reduce carbon emissions while creating a reliable energy system.The growth of solar and wind generation is increasing the variability of the energy supply mix and the need for clean flexibility solutions to safeguar

67、d energy system reliability.As countries decarbonize,the global share of renewable energy supply is expected to grow dramatically.Net-zero transition scenarios indicate a roughly threefold and fivefold increase in renewable energy supply,with renewables supplying up to 30 and 67 percent of global en

68、ergy in 2030 and 2050,respectively.Furthermore,electrification is expected to increase,doubling the electricity demand by 2050.9 Therefore,there is a growing need for clean flexibility solutions that bridge the renewables supply-and-demand gap while securing system reliability.Ensuring renewable ele

69、ctricity matches demand with LDES can help provide the flexibility,security of supply,and resiliency needed to meet global net-zero targets.8 United Nations Net Zero Coalition.9“Net zero by 2050,a roadmap for the global energy sector,”IEA,2021.Definitions of energy system reliability and flexibility

70、 Energy system reliability is the ability of energy systems to deliver energy in the quantity and quality demanded by consumers.Energy system flexibility is the ability of energy systems to respond to supply-and-demand variations promptly and supports reliability.LDES offers a clean flexibility solu

71、tion that can accelerate renewables build-outLDES provides energy system flexibility.LDES solutions enable the shifting of energy from times of high supply to times of high demand,thereby helping preserve system balance and securing its reliability.LDES can be deployed competitively to store energy

72、for prolonged periods and sustain energy provision for multiple hours,days,or weeks.Such long-duration flexibility is expected to become essential to firm supply as the share of renewable energy supply increases.LDES can cover various durations driven by technical considerations and economics.LDES c

73、an accelerate the build-out of renewables by optimizing infrastructure utilization.The energy-shifting capability of LDES has multiple system benefits.First,it could reduce energy curtailment and related opportunity costs by facilitating supply-side energy storage.For example,the initial mod-eling o

74、f an alumina refinery use case indicated that LDES could reduce overall generation capacity needs by 15 to 30 percent.Second,it could help improve overall grid utilization through supply-and-demand-side energy storage,reducing stress on the grid.As a result,LDES can be deployed across the electricit

75、y grid(for example,at critical corridors at capac-ity)to accelerate renewables development.Lastly,LDES can provide other system benefits like stability,with some technologies offering services like inertia provision or frequency regulation.Energy shiftingPeaksolar generationMidnightNoonIndustrial he

76、at demand15Net-zero heat:Long Duration Energy Storage to accelerate energy system decarbonization|LDES Council,McKinsey&CompanyLDES can support the security of supplyThe need to ensure an affordable,reliable,clean energy system has been heightened by recent challenges in the energy sector,which have

77、 increased the prominence of energy security on global agendas.Europe is now facing electricity and natural gas prices that are over ten times higher than historical averages,driven by multiple factors such as the war in Ukraine and the rise in global demand following the COVID-19 pandemic.10 Global

78、 gas markets have also been affected,causing US electricity prices to increase threefold between 2020 and 2022.11Incorporating LDES can help increase the security of supply and create new use cases for renewable energy.LDES can also unlock new opportunities that are not thoroughly addressed by short

79、er-duration storage solutions.Examples include:helping increase the share of renew-ables in the energy mix,providing resilience to unreliable grids at long durations(like at isolated or off-grid locations),enabling cost-efficient 24/7 renewable power purchase agreements(PPAs),or providing stability

80、services to the grid.In addition,TES can support new heating use cases,namely the wider electrification of heat,reuse of waste heat,demand-side management,and lower renewables curtailment.10 Dutch TTF Gas Futures.11 U.S.Energy Information Administration(EIA).There are different options to consider f

81、or energy system flexibilityWithin the electricity sector,five flexibility options can help match supply and demand:i.Energy storage,including Li-ion batteries and deployable LDES solutions such as closed loop pumped storageii.Dispatchable capacity such as hydropower iii.Renewable energy curtailment

82、 iv.Transmission and distribution grid expansions v.Demand-side managementFurthermore,system flexibility is increasingly important in responding to market supply fluctuations.The heat sector has analogous clean flexi-bility solutions to the electricity sector,though with clean-heat-specific technolo

83、gies:i.Thermal energy storage ii.Dispatchable capacity like clean-fuel boilersiii.Robust heating infrastructure like district heatingIntegrating the electricity and heat sectors can be critical in enabling clean flexibility.Electricity and heat were historically connected through heat engines in con

84、ventional generation plants.Going forward,electricity and heat are expected to become more integrated through higher adoption of power-to-heat technologies,such as heat pumps or electric boilers,and renewable heat-to-power technologies,like concentrated solar power.The increased interconnectedness o

85、f the sectors supports their decarbonization and the integration of renewables.Furthermore,solutions that enhance sector integrationlike TESdrive flexibility by,for instance,storing energy at times of oversupply and discharging heat at times of undersupply.Given the growing interdepen-dencies of ele

86、ctricity and heat,an integrated perspective is becoming relevant to realizing a net-zero energy system.16Net-zero heat:Long Duration Energy Storage to accelerate energy system decarbonization|LDES Council,McKinsey&CompanyKEY TAKEAWAYS As the share of variable renewable energy grows steadily,there is

87、 a greater need for clean flexibility solutions,like LDES,to secure system reliability.LDES is essential for keeping global warming below 1.5C as it can help accelerate the development of renewables.The integration of the energy system through sector coupling improves flexibility,security of supply,

88、and,consequently,system reliability and resiliency.17Net-zero heat:Long Duration Energy Storage to accelerate energy system decarbonization|LDES Council,McKinsey&Company2TES as an enabler to decarbonizing heatDecarbonizing the heat sector is crucial to realizing a net-zero energy system in 2050,give

89、n that,excluding power,it represents about 45 percent of all energy-related emissions today.TES can decarbonize heat applications by electrifying and firming heat with variable renewable sources.In addition,it can optimize heat consumption in industrial processes and facilitate the reuse of waste he

90、at or the integration of clean heat sources.Most heat applications can be decarbonized through electrifi-cationHeat accounts for about 45 percent of energy-related emissions.Heating and cooling use cases account for more than 50 percent of global energy consumption across all sectors and about 45 pe

91、rcent of global energy-related CO2 emissions,excluding power(10 Gt in 2019).Industrial applications account for the largest share of heat consump-tion,at 40 percent of total heat demand,and comprise use cases varying from low-to high-grade heating above 1,500C.Building heating and cooling is also a

92、significant contributor at around 30 percent of total heat demand,12 though typically at lower tempera-tures around or below 100C.Lastly,heating is used for cooking as well as district heating(Exhibit 2).13Industrial heat demand relies heavily on fossil fuels,especially for high-temperature applicat

93、ions.Most industrial heat demand requires either direct hot air or steam at different temperatures for processes such as drying,calcination,or chemical reactions.Overall,70 percent of industrial heat is still provided by fossil fuels(Exhibit 3).Among the different industrial processes,applications w

94、ith high temperature heating represent the largest share of emissions and account for about 50 percent of total fossil-fuel-related heat demand.A major driver is the higher energy consumption of these applications,which are mainly supplied by coal,resulting in the high costs of switching to lower-ca

95、rbon alternatives.Electrification is a decarbonization solution for most industrial heat applications,including high-temperature processes.There are different options for decarbonizing industrial applications,such as electrification,energy effi-ciency measures,low-carbon fuels,and carbon capture.In

96、the context of lower renewables 12“Global Energy Perspective 2022,”McKinsey,April 26,2022.13 The baseline includes emissions from heating,industrial processes,transport,and other energy sector emissions.It excludes power generation emissions.14“Residential Heat Economics Calculator,”IEA.Based on a g

97、as condensing boiler and a ground-source heat pump(upper range)and an air-air heat pump(lower range).costs and higher CO2 prices,electrification combined with flexibility solutions emerges as an increasingly attractive solution to decarbonize high-temperature industrial processes like chemicals,nonm

98、etallic minerals,or nonferrous metals(Exhibit 4).Other processes,such as steelmaking or cement making,require further research and develop-ment or pilots to explore electrification options.Heat in buildings can also be decarbonized through electrification,subject to local legacy infrastructure.In bu

99、ildings,heat is mainly used for space and water heating,with 50 percent provided by fossil fuels(Exhibit 5).Several commercially available options for decarbonizing heating and cooling in buildings,such as heat pumps,or rooftop solar,already exist.However,higher upfront costs than conventional solut

100、ions currently hinder widespread adoption.For instance,installing a heat pump in the United Kingdom can cost three to seven times more than installing a gas boiler.14 The widespread adoption of heat pumps also depends on the availability of grid networks that can accommodate a large increase in elec

101、tricity demand.Similarly,the viability of centralized solutions relies on the availability of legacy pipeline infrastructure.In this case,TES can support the decarbonization of centralized district heating networks by storing energy for weeks or months,depending on accessible technologies,such as un

102、derground water.TES offers a clean flexibility solution to firm heatClean flexibility solutions enable the decarbonization of the heat sector via two main options:i.Shifting to clean alternatives,such as clean electricity,solar thermal,and clean fuelsii.Optimizing heat consumption,such as reusing wa

103、ste heat and increasing efficiencyClean flexibility solutions like TES can support supply-demand matching for both decarboni-Heat applications represent about 45 percent of all energy-related emissions13 19Net-zero heat:Long Duration Energy Storage to accelerate energy system decarbonization|LDES Co

104、uncil,McKinsey&CompanyExhibit 3At least 70%of industrial heat is generated by fossil-fuel sourcesSource:McKinsey Global Energy Perspective80010507060Low-temperature heatCoolingMedium-temperature heatHigh-temperature heatGlobal industrial final energy consumption by heat temperature2019,pe

105、rcentShare of totalPercentOn-site renewablesDistrict heatBioenergyGrid electricityNatural gasOilCoal500C)Medium-temperature heat(100500C)Low-temperature heat(100C)2 201211976644CoolingExhibit 550%of buildings heat is generated by fossil-fuel sources90507003040Space heatingHot waterCooling

106、Global buildings final energy consumption by use case(all heat-related)2019,percentShare of totalPercentSolarDistrict heatBioenergyGrid electricityNatural gasOilCoal2%9%17%22%35%11%4%TotalExajoules47179from fossil fuels50%Source:McKinsey Global Energy Perspective21Net-zero heat:Long Duration Energy

107、Storage to accelerate energy system decarbonization|LDES Council,McKinsey&Companyzation options.Alternative decarbonization options exist but typically require more signifi-cant investments or involve delays in emission reduction.TES enables cost-effective firming of heat sourced from variable renew

108、able energy.Industrial demand typically follows a constant pattern.Energy supply interruptionssome-times only lasting minutescan lead to multi-million dollar losses due to equipment damage and lost production.Similarly,buildings demand for heating typically follows a pattern that coincides with huma

109、n activity and has limited flexibility.In regions with a fully decarbonized grid,decarbonizing heat demand through the electricity network is an effective option;however,in most countries,the grid is still reliant on fossil fuels when renewables are unavailable.This makes TES necessary to keep heat

110、loads running on clean energy when the grid cannot provide it.In addition,TES provides behind-the-meter heat consumption optimization.TES can play multiple roles in optimizing behind-the-meter heat consumption by:i.Supporting the integration of captive variable energy supply(such as solar energy)for

111、 heat ii.Storing waste heat for later reuse in indus-trial processes,thereby improving overall process efficiency.TES can also make behind-the-meter heat available for external use,such as in district heating networksTES complements the coverage of power LDES by firming clean heat.TES enables the lo

112、ng-duration storage of heat supplied by clean electricity or waste heat.Power LDES enables the long-duration storage of electricity.Their optimal use will be determined by multiple fac-tors,such as end-use requirements,with both supporting the use of LDES to decarbonize the energy system.KEY TAKEAWA

113、YS Decarbonizing heat is a pivotal component for realizing a net-zero energy system,as it accounts for 50 percent of global final energy consumption and 45 percent of all energy-related emissions(excluding power).Electrification offers a decarbonization alternative to most industrial heat applicatio

114、ns,including high-temperature processes.TES enables the firming of heat from variable renewable energy sources and could constitute a key solution for the sectors decarbonization.22Net-zero heat:Long Duration Energy Storage to accelerate energy system decarbonization|LDES Council,McKinsey&CompanyTES

115、 can be deployed effectively to benefit from variable electricity prices As global economies transition away from fossil fuels,TES can assist in providing more resil-iency and efficiency.In a hybrid gas-electricity setup for steam production,TES can be used to respond to fluctuations in electricity

116、market prices and reduce energy costs.Depending on the energy price profiles,three operating modes are possible for a setup using a gas boiler,electric boiler,and TES(Exhibit 6).First,when gas is cheaper than electricity,the gas boiler provides steam continuously.Second,when the fuel price changes d

117、uring the day,the operator can switch to whatever is cheapest at any given time,or TES can be charged when electricity prices are low and discharged when they are high.Finally,when electricity prices fall below the equivalent price of natural gas with carbon,steam can be generated via an electric bo

118、iler,and TES can be charged and discharged to capture moments of the lowest electricity price.Exhibit 6TES can be used by users for optimizing their heat generation based on energy pricesGas is always cheap-er than electricityElectricity is sometimes cheaper than gasElectricity is always cheaper tha

119、n gasPreferable steam generation technologyGas boilerElectric boiler/heat pumpTES(Optional)ORHybrid boilerElectric boiler/heat pumpEnergy price scenarioTES23Net-zero heat:Long Duration Energy Storage to accelerate energy system decarbonization|LDES Council,McKinsey&Company3LDES technologiescost and

120、competitiveness TES can enable the cost-efficient electrification of most heat applications,even at high temperatures.TES covers a large spectrum of technologies that can address a wide range of storage durations(from intraday to seasonal)and temperatures(from subzero to 2,400C).According to the 202

121、2 LDES benchmark,TES enables the cost-efficient electrification and decarbonization of the most widely used heat applications(i.e.,steam and hot air).The benchmark results also indicate that firming heat is more cost-efficient than firming power when the final demand is heat.Furthermore,LDES benchma

122、rks predict significant declines in costs over the next 15 years,making LDES technologies increasingly cost-competitive as the market matures.The 2022 LDES Council capex benchmark informs the latest Power LDES and TES technology cost perspectivesThe 2022 LDES Council capex benchmark provides an up-t

123、o-date perspective on LDES technology costs and informs relevant business cases.As with any new technology,competitive costs and performance are critical for widespread adoption that can help achieve societal benefits versus alternatives.For LDES,some key parameters to consider are energy capacity c

124、ost(USD per MWh)or energy capex,power capacity cost(USD per MW)or power capex,operation and maintenance cost(USD per MW-year),round-trip efficiency(RTE)for power LDES,and system efficiency for TES.These parameters are covered by the LDES Council cost benchmarks and the following results are presente

125、d in this section:1.Power LDES.The 2022 LDES Council capex benchmark presents an updated perspective of the Power LDES capex and RTE of two duration archetypes(8 to 24 hours and 24 hours or more),as pre-sented in the 2021 LDES Net-zero power report.The updated benchmark is based on the input from 21

126、 LDES Council technol-ogy providers(compared to ten companies taking part in the 2021 benchmark)on cost perspectives regarding a“central”and“progressive”learning-rate scenario (see Appendix A for more details on the methodology).The benchmark results are used later in the economic optimization model

127、ing(see Chapter 5)to approximate the suite of different LDES that could be deployed.2.Thermal energy storage.This report expands the 2022 LDES Council capex benchmark to include TES technologies.The benchmark presents a perspective on TESs capex and system efficiency across four archetypes of heat a

128、pplications(saturated steam at 1,10,and 25 barg15 and hot air at 450C).This benchmark is based 15 Gauge pressure(pressure in bars above ambient or atmospheric pressure).16 The corresponding numbers from the 2021 LDES Council Net-zero power report are USD 380,000 and USD 960,000 per MW,respectively.T

129、he difference in costs is expected to be caused mainly by the inclusion of more companies in the top quartile,as the number of contributing companies doubled.17 The corresponding numbers from the 2021 LDES Council Net-zero power report are USD 4,000 and USD 17,000 per MWh,respectively.on the input o

130、f 11 LDES Council technology providers.The updated Power LDES bench-mark solidifies the view that costs will decline toward 2040The power capex benchmark indicates that costs could decline by 25 to 50 percent by 2040.Costs could drop to USD 260,000 and USD 1,480,000 per MW for the 8-to-24 hour and 2

131、4-hour-or-more archetypes,respectively(Exhibit 7).16 The power capex,which includes charging and discharging equipment and balance of plant costs,is expected to show an overall decline of around 35 to 50 percent for the 8-to-24-hour archetype and about 25 percent for the 24-hour-or-more archetype.Th

132、e energy storage capex benchmark indicates that costs could decline by 25 and 45 percent by 2040.Storage costs are expected to drop to USD 6,000 and USD 22,000 per MWh for the 24-hour-or-more and the 8-to-24-hour archetypes,respectively.17 The lower-duration systems are usually optimized to be compe

133、titive at shorter durations and higher cycling profiles.This can be seen in the power capex of the 8-to-24-hour archetype.However,this advantage tends to be reduced for longer storage durations as the energy capex becomes the main cost and can differ more significantly across archetypes and scenario

134、s.The energy capex of the 24-hour-or-more archetype can reach considerably lower values than the 8-to-24-hour archetype(around three times lower),making the design of these systems suitable for longer durations due to the lower cycling requirements to generate profits.More submissions provide a broa

135、der tech-nology base for the power LDES benchmark.The updated power capex results are based on a higher number of submissions and therefore reflect a broader technology base,making the benchmark more robust.The differences to the 2021 power capex benchmark are mainly driven 25Net-zero heat:Long Dura

136、tion Energy Storage to accelerate energy system decarbonization|LDES Council,McKinsey&Companyby the doubled number of submissions from Council members,which increased the number of samples in the top quartile.The same applies to the energy storage capex,as more submissions lead to a larger pool of t

137、op-quartile players and the inclusion of a broader range of technologies.The TES benchmark varies by heat application archetypeTES technologies fall into three categories:sensible,latent,and thermochemical heat.Sensible heat storage stores thermal energy by increasing the temperature of a solid or l

138、iquid medium;latent heat by changing the phase of a material;and thermochemical heat through endothermic and exothermic chemical reac-tions.Within each category,different medium materials with unique characteristics can be used,leading to various operating temperatures and durations.Consequently,dif

139、ferent TES technologies will be more suitable for different applications depending on their temperature,scale,storage duration,and other factors,such as heat form,footprint,and process integration.TES technologies can cover the whole temporal and temperature spectrum of heat needs.Many different mat

140、erials,such as graphite,rocks,water,and ice,can cover a wide range of temperatures and durations(Exhibit 8).For example,underground water systems such as aquifers,boreholes,and water pits can store heat for months from 0 to 100C,while graphite systems can store heat at up to 2,400C.TES technologiesi

141、ncluding microencapsulated metals,paraffin waxes,and absorption systemsare in various stages of development,from initial commercial testing and pilot setups to others that are already deployed.Lastly,some TES technolo-giessuch as steel and liquid metalsare at an early stage of development and could

142、expand the availability of TES technologies across temperature and duration ranges,as outlined on pages 28 and 29.Exhibit 7Power LDES energy and power capex are expected to decrease by 20401.Benchmark data provided by LDES Council members and aggregated into archetypes based on technological propert

143、ies.All data points are top-quartile cost data within the archetype based on the energy capex.Global power LDES benchmark by archetype3020405001,0001,5002,00030204020252035203051015202535Power and balance of plant capex USD thousands/MWEnergy storage capex USD thousands/MWh3550%3545%25%25

144、%Central(conservative learning rate)Progressive(ambitious learning rate)24 hr+archetype 824 hr archetype26Net-zero heat:Long Duration Energy Storage to accelerate energy system decarbonization|LDES Council,McKinsey&CompanyExhibit 8TES can support broad temperature ranges and energy storage durations

145、Latent heatThermochemical heatSensible heatTemperature02,400CMost technologies able to span a large range of temperatures99 percent up-time),with daily TES charging cycles Steam at 25 barg and 330C(260 GWh annual equivalent)30 MW electric boiler with 0.5 GWh TES replacing 30 MW gas boiler Upgrade th

146、e 300-km transmission line built to support additional 80 MW of grid capacity to charge the TES 47,000 tCO2 emissions saved annually Fossil fuel cost:USD 40/MWh Renewable electricity cost:USD 25/MWh Net CO2 price:USD 100/tCO2 Drying Humidification Cleaning Moisturization Sterilization and disinfecti

147、on Process heatingSource:Eurostat 38Net-zero heat:Long Duration Energy Storage to accelerate energy system decarbonization|LDES Council,McKinsey&CompanyChemicals plant business caseGrid demand fees355565Production cost changeCO2e cost savings3080Invested capital10Base case NPV80No grid demand fees12

148、5Remuneration for flexibilityUpside case NPVUpside valueAdditional costsUpside value subject to local market conditions28%IRR6%Business case profitability(NPV and IRR)of medium-pressure steam in a chemicals plantUSD millions,2022IRRExhibit 13HeatElectricityEnergy flow:FromFossil-fuel-based steamToEl

149、ectricity-based steam with TES supportElectric boilerRenewableelectricityFossil-fuel boilerTESSteam generatorMedium-pressure steamMedium-pressure steamEnd useHeaterEnd useChemicals plant business case diagramExhibit 1239Net-zero heat:Long Duration Energy Storage to accelerate energy system decarboni

150、zation|LDES Council,McKinsey&CompanyBusiness case 2:District heating supplied by a peaker plantReplacing peaker plants with TES can generate positive returns if flexibility is valued (up to 16 percent IRR)BUSINESS CASE 2 HIGHLIGHTSTES provides a method of decarbonizing peaker plants to provide hot w

151、ater in a district heating network.In this business case,TES is considered a flexible grid-connected solution that is used when peak demand for hot water is not met by baseload generation,heavily optimizing charging times to capitalize on low electricity prices from excess renewable electricity gene

152、ra-tion.The analysis shows that although the base case IRR(0.5 percent)is positive,an additional value stream would be required to increase the return to attractive levels of up to 16 percent.The main base business case drivers include a reduction of production costs(for example,via low electricity

153、prices),benefits from carbon savings,and increasing the value of flexibility(for example,by increasing the number of charging cycles through additional cooling functions).Business case configuration:A 4 GWh TES replaces two 125 MW gas boilers(250 MW total)to provide hot water to a district heating n

154、etwork in Europe.TES is used as a flexible asset to benefit from very low pricing due to excess renewable electricity generation.Key drivers of the business case are produc-tion-cost reductions from fuel replacements and CO2 benefits from decreasing emissions.Profitability assessment:The base case h

155、as a negative USD 40 million NPV with a 0.5 percent IRR.This is mainly driven by value upsides(USD 100 million in fuel replace-ments and CO2 benefits);however,high capex costs(USD 95 million)and grid demand fees1(USD 45 million)impact the business case.The upside case has a USD 55 million NPV with a

156、 16 percent IRR,mainly driven by adding cooling functionality(USD 20 million),avoiding gas boiler replacement costs(USD 25 million),and excluding grid fees(USD 45 million).20 See Exhibits 14 and 15.20 Selected European grid fees included.Potential business case unlocks:Two key unlocks could help sup

157、port the base case:Variable electricity pricing Carbon pricingIn addition,the upside case would likely include:Rewarding flexibility(for example,by reducing grid fees and via remuneration for flexibility)Optimizing TES timing and operations(for example,by timing the implementation of TES with the re

158、placement of gas boilers and increasing TES utilization)In situations where more captive renewable electricity generation can be placed behind-the-meter,an upside case might be achieved without additional market mechanisms District heating business case detailsTechnical specificationsMarket paramete

159、rsApplicability to large island heating networks and backup functions Peak demand operations with 40 TES charging cycles annually Heated water required at 10 barg and 120C(140 GWh annual equivalent)4 GWh TES solution replacing two 125 MW gas boilers(250 MW total)650 MW charging and 220 MW dischargin

160、g 33,000 tCO2 emissions saved annually Fossil fuel cost:USD 40/MWh Renewable electricity cost:USD 5/MWh Net CO2 price:USD 100/tCO2 Industrial complexes Residential Public schools and universities Field hospitalsSource:Eurostat40Net-zero heat:Long Duration Energy Storage to accelerate energy system d

161、ecarbonization|LDES Council,McKinsey&CompanyCO2e cost savingsInvested capital55Production cost changeCapex savings fromavoiding gas boiler replacement954545Grid demand fees40No grid demand fees5Remuneration for flexibility55Upside case NPVBase case NPV2010 additional cycles fromabsorption chillers25

162、45District heating peaker plant business caseBusiness case profitability(NPV and IRR)of a district heating peaker plantUSD millions,2022Upside valueAdditional costs16%0.5%Upside value subject to local market conditionsIRRIRRExhibit 15District heating networkHeatElectricityEnergy flow:FromFossil-fuel

163、-based district heatingToElectricity-based district heating with TES support Gas boilerDistrict heating networkExcessoffshore windTESSteam generatorHeaterDistrict heating peaker plant business case diagramExhibit 1441Net-zero heat:Long Duration Energy Storage to accelerate energy system decarbonizat

164、ion|LDES Council,McKinsey&CompanyBusiness case 3:High-pressure steam in an alumina refineryImplementing TES for high-pressure steam production can generate positive returns if flexibility is valued(up to 16 percent IRR)BUSINESS CASE 3 HIGHLIGHTSTES provides a method of decarbonizing an alumina refin

165、ery by providing high-pressure steam.In this business case,TES is considered a highly flexible solution(with daily charging cycles)in a European grid-connected setting where renewable electricity prices are slightly higher than fossil fuel prices.The analysis shows that additional flexibility value

166、streams on top of a base business case would be required to create a positive return(16 percent IRR).The main busi-ness case drivers needed are benefits from carbon savings and rewarding flexibility.The latter could be done,for example,through reducing fees for electricity transmission(grid demand f

167、ees)and effectively acknowledging that TES can become a grid asset,and not an additional burden on the grid.Business case configuration:A 6.6 GWh TES and 380 MW electric boiler replace a 380 MW gas boiler to provide high-pressure steam to an alumina refinery in Europe.TES is used as a highly flexibl

168、e asset,though it is assumed that renewable electricity prices are slightly higher than prices for fossil fuels in this region.Key potential drivers of the business case are CO2 benefits from reducing emissions and rewarding flexibility(for example,through reducing grid demand fees or remu-nerating

169、avoided electricity curtailment).Profitability assessment:The base case has a negative USD 825 million NPV.This is mainly driven by a negative operating cost change(USD 260 million),capex needed(USD 375 million),and grid demand fees1(USD 1,040 million),21 though CO2 benefits bring some value(USD 845

170、 million).The upside case has a USD 635 million NPV with 21 Average of selected European grid fees used.22 Renewable curtailment is calculated as the value of 50 percent of the electricity used to charge the TES device.a 16 percent IRR,mainly driven by excluding grid fees(USD 1.04 billion)and accoun

171、ting for renewable electricity curtailment reduction (USD 425 million).22 See Exhibits 16 and 17.Potential business case unlocks:Two keys unlock support for the base case:Variable electricity pricing Carbon pricingThe upside case could be supported by the following unlocks:Rewarding flexibility(for

172、example,reduced grid fees,remuneration for flexibility)In situations where more renewable electricity generation can be placed behind the meter instead of sourcing electricity from the grid,there are no grid fees in the first place,and therefore an upside case might be achieved without additional ma

173、rket mechanismsAlumina refinery business case detailsTechnical specificationsMarket parametersApplicability to other industrial processes:Baseload operation(99 percent up-time),with daily TES charging cycles Steam at 104 barg and 325C(260 GWh annual equivalent)380 MW electric boiler with 6.6 GWh TES

174、 replacing 380 MW gas boiler Upgrade 300 km transmission line built to support additional 980 MW grid capacity 600,000 tCO2 emissions saved annually Fossil fuel cost:USD 20/MWh Renewable electricity cost:USD 25/MWh Net CO2 price:USD 100/tCO2 Direct drive of equipment(pumps and compressors)Process he

175、ating Steam cracking DistillationSource:Eurostat 42Net-zero heat:Long Duration Energy Storage to accelerate energy system decarbonization|LDES Council,McKinsey&CompanyProduction cost change260375Invested capital420845CO2e cost savings6351,040Grid demand fees825Base case NPV1,040No grid demand feesRe

176、muneration for flexibilityUpside case NPVAlumina refinery business caseBusiness case profitability(NPV and IRR)of an alumina refineryUSD millions,2022Upside valueAdditional costs16%Upside value subject to local market conditionsIRRExhibit 17Alumina refinery business case diagramHeatElectricityEnergy

177、 flow:FromFossil-fuel-based steamToElectricity-based steam with TES supportFossil-fuel boilerHigh-pressure steamEnd useElectric boilerRenewableelectricityTESSteam generatorHigh-pressure steamEnd useHeaterExhibit 1643Net-zero heat:Long Duration Energy Storage to accelerate energy system decarbonizati

178、on|LDES Council,McKinsey&CompanyBusiness case 4:Co-generation for an off-grid greenhouseImplementing TES with co-generation in an off-grid setting can produce positive returns(up to 22 percent IRR),regardless of the additional value of flexibility BUSINESS CASE 4 HIGHLIGHTSTES provides a cost-effici

179、ent decarbonization opportunity to support co-generation(electricity and heat usage)in an off-grid setting with captive solar.In this business case,TES is considered a high flexibility solution with daily charging cycles to uptake captive solar energy and electrify heat production in a sub-Saharan A

180、frica off-grid setting.The analysis shows a potential standalone profitable base business case of up to 22 percent,driven by reduced production costs and low electricity prices as well as benefits from carbon savings.Business case configuration:An 11.4 MWh TES and 2.1 MW solar PV system supplement a

181、 2.0 MW gas boiler and a 0.25 MW diesel generator to provide electricity and warm water to an off-grid greenhouse in sub-Saharan Africa.TES is used as a highly flexible asset to maximize the capacity factor23 of captive solar and electrify heat production.In the summer months,the combination of TES

182、with solar can meet all heat and electricity demands.In the winter months on the shortest and coldest days,this might be supplemented with a gas boiler and diesel generator as backup options.Key potential drivers of the business case are production cost reductions from fuel replacements and CO2 bene

183、fits from reducing emissions.23 Capacity factor is defined as the amount of time energy is being produced as a percentage of total time in a day.Profitability assessment:The base case has a USD 1.6 million NPV with a 22 percent IRR.This is mainly driven by a significant contribution of value upsides

184、 (USD 3.6 million in fuel replacement and CO2 benefits)while being tempered by the relatively significant capital investment(USD 2.0 million).See Exhibits 18 and 19.Potential business case unlocks:Two keys unlock support for the base case:Behind-the-meter renewable generation:benefits from captive s

185、olar generation and maximizing the capacity factor of solar panels,resulting in low electricity unit price Carbon pricingOff-grid greenhouse business case detailsTechnical specificationsMarket parametersApplicability to other industries Seasonal demand loads with daily TES charging cycles Warm water

186、 at 30 to 40C and electricity(equivalent to 1,850 MWh of electricity and 2,200 MWh of heat annually)11.4 MWh TES solution and 2.1 MW solar PV system supplemented with a 2.0 MW gas boiler and 0.25 MW diesel generator 2,000 tCO2 emissions saved annually Fossil fuel cost:USD 40/MWh Net CO2 price:USD 10

187、0/tCO2 Off-grid mining:low-tempera-ture processing and warm water for labor camps Underground mine ventilation:cooling loads via absorption heat pumps Greenhouse cooling,humidity,and freshwater management Poultry and other livestock farming44Net-zero heat:Long Duration Energy Storage to accelerate e

188、nergy system decarbonization|LDES Council,McKinsey&CompanyOff-grid greenhouse business caseBase case NPVCO2e cost savings2.22.0Production cost change1.4Invested capital1.6Business case profitability(NPV and IRR)of an off-grid greenhouseUSD millions,2022Upside valueAdditional costs22%IRRExhibit 19Off

189、-grid greenhouse business case diagramFromFossil-fuel-based heat and powerToElectricity-based heat and power with thermal LDES supportGreenhouse heatingGas boilerDiesel generatorElectricity useGreenhouse heatingGas boilerThermal LDESDischargeHeaterElectricity useSolar PVDiesel generatorHeatElectrici

190、tyEnergy flow:Exhibit 1845Net-zero heat:Long Duration Energy Storage to accelerate energy system decarbonization|LDES Council,McKinsey&CompanyCase study:The port of RotterdamThe port of Rotterdam case study shows how LDES can integrate and decarbonize complex energy systems while creating system val

191、ue.As one of the largest industrial clusters and ports worldwide,the port of Rotterdam,located in the Netherlands,brings together a broad spectrum of heavy-industry use cases like refineries and heating networks.In addition,the coastal location provides direct access to a potential abundance of offs

192、hore wind.With significant power and heat demand on-site,there is a role for both power LDES and TES use.In combination with electric heating systems(for example,boilers and heat pumps),TES can firm up the variable offshore wind supply into a more stable supply of clean heat for industrial heating,i

193、ncluding high-temperature heating.In an industrial location like the port of Rotterdam,the need for industrial heating can radically change the configuration for a net-zero energy system.Considering that heat electrification with TES could be a competitive decarbonization optionespecially for direct

194、 wire connection to renewablesit might become a technology of choice for achieving significant decarbonization targets.If all heat demand in the port becomes electrified by 2040 and is served by TES,it would require a storage capacity of between 65 and 90 GWh for systems providing 12 to 16 hours of

195、storage.The land footprint of TES is estimated to be 30 to 45 hectares,which would not be a constraint as it represents less than 0.5 percent of the port of Rotterdams total 12,600 hectares.All the involved stakeholders could benefit from TES and contribute to its deployment.All stakeholders have an

196、 opportunity to play an important role in realizing an optimized energy system that includes TES,as they represent different perspectives:1.Offshore wind developers are typically focused on ensuring their offshore wind farms are integrated and connected to relevant off-takers,including industrial he

197、at off-takers.Connecting their variable electricity supply with LDES solutions such as TES could optimize off-take and increase asset value.2.Industrial energy off-takers are typically focused on ensuring an affordable,reliable,and increasingly clean energy supply,with a limited impact on their indu

198、strial processes.Combining variable clean electricity supply with LDES solutions could help support their focus,and the combination with TES would likely enable cost-efficient solutions for their heating and decar-bonization pathways.3.Policymakers in this space are typically focused on ensuring opt

199、imal societal decarbonization outcomes,considering options for a supportive policy environment and potentially beneficial financial instruments.Governments could support TES use cases by ensuring a level playing field for flexibility solutions across power and heat.The development of such cost-compe

200、titive solutions may help,in turn,reduce infrastructure costs such as upgrading the electricity network,which might have otherwise required public investment support.KEY TAKEAWAYS TES for medium-pressure steam production can generate 6 percent IRR and up to 28 percent IRR with the additional value o

201、f flexibility.Replacing peaker plants with TES can generate returns up to 16 percent IRR if flexibility is valued.TES for high-pressure steam production can generate up to 16 percent IRR.TES with co-generation in an off-grid setting can generate up to 22 percent IRR,regardless of the additional valu

202、e of flexibility.46Net-zero heat:Long Duration Energy Storage to accelerate energy system decarbonization|LDES Council,McKinsey&Company5An integrated energy system perspectiveTES could double the global LDES capacity potential in a cost-optimized net-zero energy pathway in line with a 1.5C scenario.

203、Based on integrated energy system modeling,TES can expand the overall installed capacity potential of LDES to between 2 and 8 TW by 2040.TES enables this additional LDES by providing a cost-efficient alternative to decarbonizing heat,including high-temperature heating applications.This is estimated

204、to reduce system costs by up to USD 540 billion per year while creating broader system value,accelerating renewables build-out,and optimizing grid utilization.LDES can potentially meet the clean flexibility needs of future energy systemsThe role of integrating LDES depends on local market conditions

205、.To explore the need for LDES technologies across different geographical setups with varying local energy supply and demand,three different market archetypes have been considered:i.Balanced markets,with similarly sized wind and solar capacities,such as Central Europe or the United States ii.Solar-he

206、avy markets,dominated by solar PV,such as Southern Europe or the Middle East iii.Wind-heavy markets,such as Northwest European countries with significant shore-linesFor all three system types,several scenarios were analyzed considering:i.Li-ion only ii.Li-ion and power LDESiii.All technologiesAs obs

207、erved in Exhibit 20,solar-heavy markets have a higher need for shorter duration flexibility than other scenarios,as supply fluctuations are predominantly intraday.In contrast,wind-heavy markets show the highest demand for LDES to cope with wind output fluctuations,which can last for days or even wee

208、ks.Systems with a balanced supply mix might be able to tackle more of the electrical demand variability with complementary wind and solar generation profiles,but ultimately the storage demand would be impacted by the overall electricity and heat demand.Both power LDES and TES play a potentially crit

209、ical role across market archetypes in an optimized energy system pathway to net zero.In a Li-ion battery only scenario,Li-ion batteries would cover both short-and long-duration needs with average discharge durations of up to 12 hours.In the other two scenarios that include LDES technology options,LD

210、ES is seen as the most cost-efficient solution for longer durations,reducing Li-ion average discharge durations to around four hours.This is explained by typical power LDES discharge costs being between 75 and 95 percent lower for 8-to-24-hour and 24-hour-or-more discharge durations,respectively.In

211、a scenario with all relevant technologies,including TES,TES provides additional flexibility and increases overall LDES potential.TES could accelerate the decarbonization of most heat use cases.Heat pumps can already outperform gas boilers in low-temperature applications in the short term and this te

212、chnology becomes even better when coupled with TES.In contrast,high-temperature heat has historically been challenging to electrify due to high electricity costs.However,TES changes the economics of electrification by The transition to clean energy requires an integrated energy system approachThe up

213、take of variable renewable energy,together with the increased electrification,is creating strong interdependencies across the energy system.The findings presented in this report are based on an integrated energy model that explores the most cost-optimized route to achieve a net-zero energy system,24

214、 considering sector coupling and the use of LDES,including TES,among other flexibility solutions.The optimization function of the model minimizes system costs to achieve net-zero emissions in the power sector by 2040,and in other sectors by 2050.The main inputs to the model comprise technology costs

215、(including the latest LDES Council data)and projected electricity and heat demand profiles.While absolute demand figures are more challenging to predict,core insights of this effort are relative capacity additions and retirements across technologies.24 The definition of energy system used in this re

216、port includes all components related to the production,conversion,and use of electrical energy,heat,and hydrogen.The electrification of the transport sector is included indirectly in the final electricity demand scenario from the McKinsey Global Energy Perspective.49Net-zero heat:Long Duration Energ

217、y Storage to accelerate energy system decarbonization|LDES Council,McKinsey&CompanyExhibit 20140100100Li-ion100230180Li-ion,power LDES,and TES350130Li-ion and power LDES160The uptake of TES depends on the profile of renewable generation in the system1.Power storage capacity normalized to Li-ion capa

218、city.TESPower LDESLi-ionStorage mix:Normalized storage capacity by scenarioPercent,20401Cost-optimized net-zero pathway modelingSupply profileBalanced solar-and-windSolar-heavyWind-heavyExhibit 21LDES can significantly improve the economics of electrified high-temperature heat2022Note:The“without LD

219、ES”scenario includes Li-ion only.The“with LDES”scenario includes Li-ion,power LDES,and TES.High-temperature heat supply mix development over timeShare in percent+35%+25%Without LDESWithLDES2030Without LDESWithLDES2040Without LDESWithLDESGas furnaceHydrogen furnaceElectric heater50Net-zero heat:Long

220、Duration Energy Storage to accelerate energy system decarbonization|LDES Council,McKinsey&Companyenabling access to electricity when the cost is low and converting it to heat that can be used later.Exhibit 21 shows that TES can accelerate the electrification of high-temperature heat and displace gas

221、 by 26 to 34 percent.A net-zero pathway presents a 2 to 8 TW LDES capacity opportunity by 2040The standalone power LDES scenario requires 1 to 3 TW of LDES capacity by 2040.The model indicates that,in the short term,power LDES is already part of the most cost-efficient pathway,growing to 450 to 500

222、GW of installed capacity by 2030.This translates into 20 to 30 TWh of energy storage capacity.As the electricity networks fully decarbonize and the share of renewables reaches very high levels,power LDES potential would increase to between 1.5 and 3.3 TW by 2040(Exhibit 22).This translates into USD

223、1.6 trillion to USD 2.5 trillion cumulative investment needs by 2040.While modeling indicates total LDES potential based on techno-logy cost benchmarks,it remains agnostic as to which technologies will be deployed.Different location-specific factors might affect the tech-nology choice,ranging from m

224、odular,stackable solutions deployed anywhere,to custom-made systems like pumped-hydro,which can have a cost advantage if geographical conditions are favorable.Adding TES increases overall LDES capacity potential by 1 to 5 TW by 2040.The combined power LDES and TES scenario indicates that in a cost-o

225、ptimized pathway,the introduction of TES could add 0.8 to 4.8 TW extra LDES capacity(Exhibit 23)and approximately 15 to 80 TWh of installed energy storage capacity by 2040(assuming the average duration of around 16 hours for intraday shifting).This type of system would likely require global investme

226、nts between USD 0.250 trillion and USD 1.4 trillion by 2040.Moreover,each gigawatt of heat generation capacity could reduce about 1 MtCO2/year when replacing natural gas heat sources and roughly 2 MtCO2/year when replacing coal.The combined power LDES and TES configuration allows for more targeted u

227、se,focusing power LDES on electricity applications and TES on heat applications.Furthermore,TES provides an additional inexpensive flexibility source.The Exhibit 2202,0501,4503,300GWGlobal cumulative installed power-generation capacity11.Ranges refer to LDES central and progressive scenar

228、ios.92030306050100TWhGlobal cumulative installed energy capacity1Cumulative capex investment1USD billionsPotential power LDES cumulative capacity and investments by year20257007502503002040203020351,6502,5001,1001,60051Net-zero heat:Long Duration Energy Storage to accelerate energy system decarboniz

229、ation|LDES Council,McKinsey&Companyintroduction of TES can help improve system efficiency and reduces power LDES needs by around 10 percent.The introduction of TES increases the potential of LDES technologies to a total between 2 and 8 TW and the overall market size to USD 1.7 trillion to USD 3.6 tr

230、illion by 2040.Introducing LDES could reduce energy system costsLDES could enable energy system savings of up to USD 540 billion annually.The introduction of LDES provides a longer duration firming capacity and thereby obviates the need for energy curtailment or redispatch.25 This generates estimate

231、d cost savings of up to USD 70 million per GW of LDES capacity installed,including fuel savings,and better utilization of variable generation resources.This translates into potential annual savings of USD 145 billion in a 2 TW case and USD 540 billion in an 8 TW case by 2040 (Exhibit 24).25 Savings

232、estimated based on the assumption of a 16-hour system working over 365 cycles per year and discharging a total of 5,840 GWh.The emission range is estimated based on emission factors of coal(around 360 kg/MWh)and gas(about 180 kg/MWh).LDES could provide a broad range of energy system benefits.Incorpo

233、rating various types of storage technologies creates an opportunity to optimize the current utilization and future development of fixed infrastructure assets.For example,grid upgrades or expansions will be required to accommodate a large share of renewables.LDES can enable more efficient grid utiliz

234、ation through supply-and-demand management and storage as a transmission asset,thereby reducing costs related to such expansions.This could prove especially beneficial over the next five to ten years,when the bulk of grids will need to be re-designed,given the typical ten-year development timeline o

235、f major grid expansions.Better grid utilization may in turn allow the integration of more renewable generation capacity into the system.Additionally,the option to shift a significant amount of load over time creates possible opportunities to integrate variable renewable sources without affecting the

236、 heat demand of the final industrial process,allowing for a faster and more economical uptake of renewable energy sources.Exhibit 23TES more than doubles the potential LDES capacity to 28 TW by 2040 2,1007,800TESPower LDESTotal LDES1,4503,3008004,800150300+135%Total LDES capacity2040,GWReduced power

237、LDES(due tosynergies with TES)Power LDESTES52Net-zero heat:Long Duration Energy Storage to accelerate energy system decarbonization|LDES Council,McKinsey&CompanyKEY TAKEAWAYS TES could increase total LDES market up to 2 to 8 TW by 2040.Overall market size of LDES technologies is expected to reach a

238、cumulative USD 1.7 trillion to USD 3.6 trillion by 2040.LDES could enable energy system savings of up to USD 540 billion annually.Exhibit 24LDES energy system savings by scenarioCentral scenario(2 TW)Progressive scenario(8 TW)Up to 145Up to 540Potential global savings generated by LDES in 2040USD bi

239、llions/year53Net-zero heat:Long Duration Energy Storage to accelerate energy system decarbonization|LDES Council,McKinsey&Company6Unlocking the TES opportunityCritical support elements could help drive more TES adoption.A supportive ecosystem that rewards flexibility and promotes a technology-level

240、playing field for flexibility solutions,like LDES,could be critical to accelerating the scale-up of TES.Additionally,increasing awareness and providing support to derisk initial investments could be pivotal.Business leaders,policymakers,and investors could each contribute to unlocking the TES potent

241、ial by reducing long-term uncertainty and thereby shaping the cost-optimized pathway toward the net-zero energy system of the future.TES adoption faces potential challenges This report shows that some TES technologies can already be commercially attractive.Yet several challenges exist that,if addres

242、sed,would help achieve fast rollout and wide adoption:Need for increased awareness of poten-tial TES applications.Historically,there has been less focus on LDES solutions,including TES,as the relatively small share of renewables could be accommodated without long-duration flexibility solutions.Need

243、for acknowledgment of TESs decarbonization potential.This report shows that TES could enable a cost-optimized pathway to net zero for the energy systema role that has yet to gain broad recognition.Potential commercial risks as a result of the industrys nascency.Technical maturity varies among TES te

244、chnologies.The lack of a track record for emerging technologies can affect risk perception for investors and users,especially as heat applications in industry and electricity infrastructure are long-term assets,and hence risk averse.Limited supporting market mechanisms that could enhance TES busines

245、s mod-els.As highlighted in Chapter 4,the com-mercial feasibility of TES is currently subject to specific conditionsnamely,access to captive energy or surplus renewablesand supportive market mechanisms(for example,carbon pricing,reduction of grid fees,or flexibility payments).Market designs and poli

246、cy frameworks that value flexibility have emerged but still remain limited.Key stakeholders could help unlock the potential of TES Multiple measures could support wider TES adoption.There are different ways to address the challenges,and various stakeholders could play a role in supporting flexibilit

247、y,creating a level playing field,and derisking initial invest-ments.Raising awareness could be a critical enabler and can be addressed by all stake-holders.Positioning TES correctly is key to creating a clean,affordable,and reliable energy system.More specific options that could sup-port the TES rol

248、lout could also be considered by several TES stakeholders,as mentioned below.Business leaders could help scale up TES solutions and supply chains by considering the following:Deploying TES technology and identifying critical enablers.Business leaders could ensure TES technologies are deployed.Early

249、on,pilots and demonstration plants could be essential enablers show-casing TES business cases,identifying critical enablers,and initiating relevant stakeholder discussions.Supporting supply chain developments and diversification.Early movers could support the deployment of commercially ready TES tec

250、hnologies,thereby derisking supply chain investments,accelerating learning curves,and scaling up capabilities to kick-start the market.Such deployments may benefit from collaborating with key parties in the supply chainfrom industry and governments to academiato create a joint effort to scale up TES

251、 and help materialize broader(societal)value.Policymakers could support TES adoption,potentially through long-term policy frameworks that reduce uncertainty,by considering the following:Developing market mechanisms that pay for flexibility.Energy markets that reward flexibilitysuch as ancillary or b

252、alancing markets in the Netherlands and the United States,or the reduced demand-side grid fees for power storage in Germanyare limited.Policymakers help implement such markets around the world,which could improve TES business case returns.Rewarding decarbonization may also be important;many countrie

253、s have carbon pricing or taxation,and policymakers could support their expansion and effectiveness.Supporting the scale-up of the TES industry to derisk initial investments.During the initial scale-up,support mechanisms could help significantly derisk 55Net-zero heat:Long Duration Energy Storage to

254、accelerate energy system decarbonization|LDES Council,McKinsey&Companyinvestments in TES business cases,with the long-term benefits of creating sustainable TES supply chains.Examples of such mechanisms include supporting transition costs(for example,contracts for difference)and providing one-off sup

255、port(for example,investment guarantees and subsidies).Incorporating TES into relevant regulatory frameworks.As nascent tech-nologies are often excluded from relevant regulation(for example,technical standards),policymakers could incorporate TES and thereby help remove barriers to operation.This incl

256、usion also applies to policies,such as heat-efficiency requirements or decarbonization targets(for example,storage,renewable energy adoption,or carbon intensity).Inclusion in regulations and policies could provide long-term market signals and reduce investors uncertainty.Coordinating the move to cos

257、t-optimized system designs.In the transition to net-zero energy,infrastructure will likely be disrupted significantly across the entire value chain.In this process,it will likely be important to consider the role of different clean LDES and TES flexibility assets and the broader infrastructure to mo

258、ve toward cost-optimized system designs.It could also be important to reflect these cost-optimized energy sys-tem designs in decarbonization roadmaps.Creating a technology-level playing field for flexibility solutions.As a newer set of technologies,LDES and TES have an opportunity to be treated equa

259、lly to alternative technologies(for example,hydrogen production and electricity storage).This treatment could address the aspects mentioned before.For example,policy-makers could include TES in existing policy frameworks or assess whether flexibility solutions,like TES,require changes in current ins

260、truments or market mechanisms to support their role as part of the energy system.Investors could consider allocating capital efficiently by assessing the following:Deploying capital into TES investments.Investors focused on energy-related technology and infrastructure could include TESand broader LD

261、ESin their invest-ment scope.This will likely enable portfolio diversification into a growing industry.Assessing TES-related opportunities across the current portfolio.Investors with portfolios where energy,especially heat,plays a significant role could(re)assess the value potential of TES and broad

262、er LDES.This could enable optimized energy usage and asset decarbonization with their investees.Informing investment strategy with knowledge of TES opportunities.Investors could deepen their understanding of TES applications and use cases to identify investment opportunities.In addition,accounting f

263、or climate externalities could improve risk-return ratios and thereby help decrease the costs for decarbonization solutions,including TES.KEY TAKEAWAYS:Business leaders,policymakers,and investors could play a key role in helping to scale up TES.Raising awareness about TES applications and their pote

264、ntial,rewarding flexibility,creating a technology-level playing field,and derisking initial investments could be important in decarbon-izing the energy sector.Addressing these opportunities could reduce long-term uncertainty and help shape the optimal pathway toward the net-zero energy system of the

265、 future.56Net-zero heat:Long Duration Energy Storage to accelerate energy system decarbonization|LDES Council,McKinsey&CompanyConclusionThis report highlights TESs role in bringing down heat emissions and decarbonization costs.The transition to a net-zero energy sys-tem with increasing variable rene

266、wable energy generation requires new forms of flexibility to ensure a reliable energy system.TES technolo-gies can play a central role in realizing net-zero heat and power in a cost-optimized manner,integrating variable renewable sources into more constant heat loads and optimizing heat processing b

267、y enabling the cost-efficient use of waste heat.This could enable the accelerated build-out of renewables providing stability and resiliency,the optimized use of generation capacity and energy shifting,and the improved utilization of grid infrastructure as the energy system decarbonizes.With initial

268、 TES technologies already available,there is an opportunity to consider action to achieve wider adoption.Economic analyses suggest that TES could be among the most cost-effective options for decarbonizing steam,even in a non-net-zero scenario.A series of four TES business case assess-ments show it c

269、an generate profitable invest-ments with IRRs of up to 28 percent.However,the commercial viability of TES depends heavily on local market conditions in terms of physical configurations(such as access to behind-the-meter renewables)and market designs(such as variable electricity pricing and carbon pr

270、icing).In addition,specific enablers would help support profitable business cases,such as reducing grid connection fees for flexibility solutions.All stakeholders have the opportunity to help unlock TESs potential.This report shows that TES helps realize a clean,low-cost,and reliable energy system.A

271、s such,raising awareness of TESs potential is in the best interest of many stakeholders as it could help them execute their decarbonization strategies.Various other relevant options could scale up TES,particularly rewarding flexibility and leveling the playing field.Stakeholders could take steps to

272、reduce uncertainty in the long term and thereby guide action in the short term to shape the net-zero energy system of the future.57Net-zero heat:Long Duration Energy Storage to accelerate energy system decarbonization|LDES Council,McKinsey&CompanyA1.BenchmarkingData collectionThe data used in the an

273、alysis of this report was collected from the LDES Council members,who submitted more than 18,000 data points(21 Council members contributed 12,000 data points to the power benchmark,and 11 provided 6,000 to the TES benchmark)outlining the cost and performance of their technologies.The data was aggre

274、gated and processed by an independent data analytics team.LDES Council members provided cost and performance data for two projected trajectories for how these metrics would change from a progressive to a central scenario:Progressive scenario:Council data reflecting ambitious cost-reduction trajector

275、ies and learning rates Central scenario:Council data reflecting conservative cost-reduction trajectories and learning ratesData processingFor power LDES technologies,the data was grouped into two archetypes that are expected to be most prevalent in the energy system based on their nominal duration:8

276、 to 24 hours and 24 hours or more,with some members offering products in both ranges.For TES technologies,the data was grouped into four archetypes based on end use:saturated steam at 1,10,and 25 barg of pressure and hot air at 450C.For every archetype,aggregated data points for each cost,design,or

277、performance metric created representative numbers while preserving the data confidentiality of each individual technology.Top-quartile parameters were calculated and used as input for the models.A2.Levelized cost of heat The cost-competitiveness benchmark of heat decarbonization options was based on

278、 the LCOH metric,which is analogous to the LCOE metric commonly used to benchmark electricity generation.LCOH is defined as the net-present cost of heat over the projects lifetime.This metric accounts for all technical and economic parameters impacting the lifetime cost of generating heat and facili

279、tates a like-for-like comparison between different decarbonization technologies.Exhibit 25 shows the LCOH formula and its components.Appendix A:Methodology and assumptions58Net-zero heat:Long Duration Energy Storage to accelerate energy system decarbonization|LDES Council,McKinsey&CompanyThe main as

280、sumptions used in the LCOH benchmark were:Utilization of technologies:the LCOH benchmark is sensitive to the operating conditions of the installed technology.Key assumptions on operating conditions,mainly efficiency and availability,are shown below.TechnologyEfficiency of input fuel to output heatAv

281、ailability of heat technologyOther parametersGas boiler95 percent98 percentGas boiler with CCS95 percent98 percentCarbon capture rate:85 percentHydrogen boiler98 percent98 percentElectrolyzer efficiency:75 percentBiomass boiler95 percent98 percentElectric boiler98 percent98 percentHeat pump300 perce

282、nt98 percent Fuel costs:to show a variety of possible scenarios,a range of input fuel costs was considered:gas(USD 6 to USD 12 per mmBTU);wood pellet costs(USD 200 to USD 350 per ton);and renewable electricity(USD 25 to USD 50 per MWh)WACC:5 percent Storage lifetime:15 years for batteries and 25 yea

283、rs for TES A3.Business casesEach of the business cases presented in Chapter 4 were designed with LDES Council industry experts and technology providers.A breakdown of invested capital and annual production costs for each business case are highlighted in Exhibit 26.Exhibit 25LCOHLCOHUSD/MWhTotal annu

284、al heat dischargedInstallationcostAnnual charging cost Annual operation and maintenance costTotal volume of discharged heat MWh/yearAnnualized system capex(charging,storage,and discharging)USD/yearCost of charging energyUSD/MWh/yearFixed operation and maintenance USD/MW/year and USD/MWh/year59Net-ze

285、ro heat:Long Duration Energy Storage to accelerate energy system decarbonization|LDES Council,McKinsey&CompanyThe business cases are sensitive to fossil-fuel and renewable electricity costs.The archetypes presented in Chapter 4 were selected based on the assumption of a regional archetype in which s

286、uch technology might be tested first.Nevertheless,it is acknowledged that each individual business will operate in different market conditions and would be exposed to other fossil-fuel and electricity price combinations.Therefore,IRR sensitivities for different price compositions are shown in Exhibi

287、ts 27 to 33 to illustrate the range of possible returns for the various business cases.Exhibit 26Invested capital and annual production cost change of base and upside business casesDistrict heating supplied by a peaker plantUSD millionsMedium-pressure steam in a chemicals plantUSD millionsFossil fue

288、l cost:USD 40/MWhRenewable electricity:USD 5/MWhFossil fuel cost:USD 40/MWhRenewable electricity:USD 5/MWhInvested capitalProduction cost change(annual)Invested capitalProduction cost change(annual)2108733113.90.23.793503851.25.14TES operation and maintenance costEnergy price differential(electricit

289、y price fossil fuel price)Fossil fuel cost savingsGrid upgradeTES storage equipmentTES charging equipmentTES discharging equipmentElectric boilerHeat exchangerCaptive solarCo-generation for an off-grid greenhouseUSD millionsHigh-pressure steam in an alumina refineryUSD millionsFossil fuel cost:USD 2

290、0/MWhRenewable electricity:USD 25/MWhFossil fuel cost:USD 40/MWh9381.618.316.70.31.52.10.20.10.40.3200TES projects installed20 GWhTES storage capacity operational or announcedOperational/under construction Announced 5 GWh15 GWh10.01 GWh0.01 GWhSource:DOE Global Energy Storage Database,Sep

291、tember 20221.00.12.60.5AsiaPacificLatinAmericaMiddleEast4.71.4NorthAmerica8.5Europe1.71.9Africa67Net-zero heat:Long Duration Energy Storage to accelerate energy system decarbonization|LDES Council,McKinsey&CompanyB2.LDES Council TES companies More information about the LDES Councils TES technology p

292、roviders can be found on the LDES Council website or by contacting the LDES Council directly at .2626 Besides the TES technology providers,the LDES Council also consists of member companies who are involved with TES as energy system integrators and developers,equipment manufacturers,capital provider

293、s,and wastewater energy treatment(WET)developers.To find out more about these companies,please visit the LDES Council website at .LDES Council TES technology providers by technology type(membership overview as of November 2022)26Sensible heatLatent heatThermochemical heat68Net-zero heat:Long Duratio

294、n Energy Storage to accelerate energy system decarbonization|LDES Council,McKinsey&CompanyAcknowledgementsThe LDES Council would like to thank all its members who contributed to this report.In particular,we are appreciative of the Net-zero heat report working group who generously offered their time,expertise,and guidance.69Net-zero heat:Long Duration Energy Storage to accelerate energy system decarbonization|LDES Council,McKinsey&CompanyNet-zero heat:Long Duration Energy Storage to accelerate energy system decarbonization|LDES Council,McKinsey&Company