Leveraging Seawater Thermal Energy Storage and Heat Pumps for Coupling Electricity and Urban Heating: A Techno-Economic Analysis

Timur Abbiasov (), Aldo Bischi (), Manfredi Gangi, Andrea Baccioli, Paolo Santi and Carlo Ratti
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Timur Abbiasov: Senseable City Laboratory, Massachusetts Institute of Technology, 77 Massachusetts Avenue, Cambridge, MA 02139, USA
Aldo Bischi: Department of Energy, Systems, Territory and Construction Engineering, University of Pisa, Largo Lucio Lazzarino 1, 56122 Pisa, Italy
Manfredi Gangi: Department of Electrical Engineering, Columbia University, 116th and Broadway, New York, NY 10027, USA
Andrea Baccioli: Department of Energy, Systems, Territory and Construction Engineering, University of Pisa, Largo Lucio Lazzarino 1, 56122 Pisa, Italy
Paolo Santi: Senseable City Laboratory, Massachusetts Institute of Technology, 77 Massachusetts Avenue, Cambridge, MA 02139, USA
Carlo Ratti: Senseable City Laboratory, Massachusetts Institute of Technology, 77 Massachusetts Avenue, Cambridge, MA 02139, USA

Energies, 2025, vol. 18, issue 7, 1-20

Abstract: This paper presents an economic assessment of seawater thermal energy storage (TES) integrated with industrial heat pumps to couple renewable electricity generation with urban district heating networks. Using Amsterdam as a case study, we develop a techno-economic model leveraging real-world data on electricity prices, heat demand, and system costs. Our findings show that large-scale TES using seawater as a storage medium significantly enhances district heating economics through energy arbitrage and operational flexibility. The optimal configuration yields a net present value (NPV) of EUR 466 million over 30 years and a payback period under 6 years. Thermal storage increases NPV by 17% compared to systems without storage, while within-day load shifting further boosts economic value by 23%. Accurate demand and price forecasting is critical, as forecasting errors can reduce NPV by 13.7%. The proposed system is scalable and well suited for coastal cities, offering a sustainable, space-efficient solution for urban decarbonization and addressing renewable energy overproduction.

Keywords: thermal storage; district heating; power markets; arbitrage; modeling; optimization (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2025
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