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DOE OSTI · 3377911

Value of Geothermal Energy Storage for Supply-Side and Demand-Side Applications

Abstract

This report presents the results of a study examining the value potential for geothermal energy storage (GES), a long-duration energy storage resource that stores thermal and/or geomechanical energy in the subsurface. GES could benefit the overall U.S. power system by temporally shifting electricity generation (supply-side) or meeting building heating and cooling load (demand-side). This report analyzes supply-side and demand-side opportunities independently because of differences in applications and models. Currently there is significant uncertainty about the development costs for GES, with only a limited number of demonstration plants for electric energy storage and building heating and cooling storage developments. In this report, we estimate the value of supply-side and demand-side GES to the bulk power system in the contiguous United States. Because of the significant uncertainty about GES development costs, this analysis does not consider GES deployment costs but instead focuses on the value of GES to the U.S. electricity system. The estimated values of GES provide reference points for economically competitive commercial cost targets. Supply-side GES is modeled as part of an enhanced geothermal system (EGS) generation plant in NREL's Regional Energy Deployment System (ReEDS) capacity expansion model (Ho et al. 2021). In contrast to conventional geothermal plants, which generate constant power, EGS plants have unique features that may allow for in-reservoir energy storage for flexible generation. Demand-side GES for heating and cooling, including seasonal hot and cold storage and short-duration heat pump storage, is incorporated into a price-taker model using Cambium electricity marginal cost projections. To establish an upper bound for the value of GES, analysis focused on favorable scenarios for storage with high generation from zero marginal cost, variable renewable energy resources. High penetrations of variable renewable energy generation can increase hourly electricity price variability, which increases the value of temporal energy arbitrage for storage technologies like GES.

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BibTeXRIS

Halloran, Claire [National Laboratory of the Rockies (NLR), Golden, CO (United States)] (ORCID:0000000203085623), Simpson, Juliet [National Laboratory of the Rockies (NLR), Golden, CO (United States)] (ORCID:0000000309695921), Ho, Jonathan [National Laboratory of the Rockies (NLR), Golden, CO (United States)]. 2026-06-25. Value of Geothermal Energy Storage for Supply-Side and Demand-Side Applications. https://doi.org/10.66816/tp5586806

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