IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v18y2025i7p1869-d1629730.html
   My bibliography  Save this article

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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Timur Abbiasov & Aldo Bischi & Manfredi Gangi & Andrea Baccioli & Paolo Santi & Carlo Ratti, 2025. "Leveraging Seawater Thermal Energy Storage and Heat Pumps for Coupling Electricity and Urban Heating: A Techno-Economic Analysis," Energies, MDPI, vol. 18(7), pages 1-20, April.
    • Handle: RePEc:gam:jeners:v:18:y:2025:i:7:p:1869-:d:1629730
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/18/7/1869/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/18/7/1869/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sihvonen, Ville & Ollila, Iisa & Jaanto, Jasmin & Grönman, Aki & Honkapuro, Samuli & Riikonen, Juhani & Price, Alisdair, 2024. "Role of power-to-heat and thermal energy storage in decarbonization of district heating," Energy, Elsevier, vol. 305(C).
    2. Wang, Luhang & Xu, Chunwen & Wang, Chunli & Zhang, Lancai & Xu, Huanyong & Su, Huan & Zheng, Jianshi, 2025. "Prospects and challenges of seawater source heat pump utilization in China: A systematic review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 210(C).
    3. Guelpa, Elisa & Verda, Vittorio, 2019. "Thermal energy storage in district heating and cooling systems: A review," Applied Energy, Elsevier, vol. 252(C), pages 1-1.
    4. Ali, Hesham & Hlebnikov, Aleksandr & Pakere, Ieva & Volkova, Anna, 2024. "An evaluation and innovative coupling of seawater heat pumps in district heating networks," Energy, Elsevier, vol. 312(C).
    5. Sifnaios, Ioannis & Sneum, Daniel Møller & Jensen, Adam R. & Fan, Jianhua & Bramstoft, Rasmus, 2023. "The impact of large-scale thermal energy storage in the energy system," Applied Energy, Elsevier, vol. 349(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Christensen, Toke Borg Kjær & Lund, Henrik & Sorknæs, Peter, 2024. "The role of thermal energy storages in future smart energy systems," Energy, Elsevier, vol. 313(C).
    2. Du, Han & Zhou, Xinlei & Nord, Natasa & Carden, Yale & Cui, Ping & Ma, Zhenjun, 2025. "A new framework for evaluating and enhancing the performance of district heating systems integrated with data centres using short-term thermal energy storage," Energy, Elsevier, vol. 319(C).
    3. Rosendal, M. & Janin, J. & Heggarty, T. & Pisinger, D. & Bramstoft, R. & Münster, M., 2025. "The benefits and challenges of soft-linking investment and operational energy system models," Applied Energy, Elsevier, vol. 385(C).
    4. Sihvonen, Ville & Ollila, Iisa & Jaanto, Jasmin & Grönman, Aki & Honkapuro, Samuli & Riikonen, Juhani & Price, Alisdair, 2024. "Role of power-to-heat and thermal energy storage in decarbonization of district heating," Energy, Elsevier, vol. 305(C).
    5. A. J. Jin & C. Li & J. Su & J. Tan, 2022. "Fundamental Studies of Smart Distributed Energy Resources along with Energy Blockchain," Energies, MDPI, vol. 15(21), pages 1-12, October.
    6. Socci, Luca & Rocchetti, Andrea & Verzino, Antonio & Zini, Andrea & Talluri, Lorenzo, 2024. "Enhancing third-generation district heating networks with data centre waste heat recovery: analysis of a case study in Italy," Energy, Elsevier, vol. 313(C).
    7. Joana Verheyen & Christian Thommessen & Jürgen Roes & Harry Hoster, 2025. "Effects on the Unit Commitment of a District Heating System Due to Seasonal Aquifer Thermal Energy Storage and Solar Thermal Integration," Energies, MDPI, vol. 18(3), pages 1-33, January.
    8. Egging-Bratseth, Ruud & Kauko, Hanne & Knudsen, Brage Rugstad & Bakke, Sara Angell & Ettayebi, Amina & Haufe, Ina Renate, 2021. "Seasonal storage and demand side management in district heating systems with demand uncertainty," Applied Energy, Elsevier, vol. 285(C).
    9. Hirvijoki, Eero & Hirvonen, Janne, 2022. "The potential of intermediate-to-deep geothermal boreholes for seasonal storage of district heat," Renewable Energy, Elsevier, vol. 198(C), pages 825-832.
    10. Xu, Ruoyu & Liu, Xiaochen & Liu, Xiaohua & Zhang, Tao, 2024. "Quantifying the energy flexibility potential of a centralized air-conditioning system: A field test study of hub airports," Energy, Elsevier, vol. 298(C).
    11. Seyfi, Mohammad & Mehdinejad, Mehdi & Mohammadi-Ivatloo, Behnam & Shayanfar, Heidarali, 2022. "Deep learning-based scheduling of virtual energy hubs with plug-in hybrid compressed natural gas-electric vehicles," Applied Energy, Elsevier, vol. 321(C).
    12. Danica Djurić Ilić, 2020. "Classification of Measures for Dealing with District Heating Load Variations—A Systematic Review," Energies, MDPI, vol. 14(1), pages 1-27, December.
    13. Golmohamadi, Hessam & Larsen, Kim Guldstrand & Jensen, Peter Gjøl & Hasrat, Imran Riaz, 2022. "Integration of flexibility potentials of district heating systems into electricity markets: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 159(C).
    14. Ma, Qijie & Wang, Peijun & Fan, Jianhua & Klar, Assaf, 2022. "Underground solar energy storage via energy piles: An experimental study," Applied Energy, Elsevier, vol. 306(PB).
    15. Wang, Qiaochu & Ding, Yan & Kong, Xiangfei & Tian, Zhe & Xu, Linrui & He, Qing, 2022. "Load pattern recognition based optimization method for energy flexibility in office buildings," Energy, Elsevier, vol. 254(PC).
    16. Yang, Xiaolin & Kong, Ying & Zhou, Yu & Liu, Dawei & Xia, Jianjun, 2024. "Case study on combined heat and water system for district heating in Beijing through recovery of industrial waste heat in Tangshan," Energy, Elsevier, vol. 300(C).
    17. Guelpa, E. & Capone, M. & Sciacovelli, A. & Vasset, N. & Baviere, R. & Verda, V., 2023. "Reduction of supply temperature in existing district heating: A review of strategies and implementations," Energy, Elsevier, vol. 262(PB).
    18. Nord, Natasa & Shakerin, Mohammad & Tereshchenko, Tymofii & Verda, Vittorio & Borchiellini, Romano, 2021. "Data informed physical models for district heating grids with distributed heat sources to understand thermal and hydraulic aspects," Energy, Elsevier, vol. 222(C).
    19. Ryan, Erich & McDaniel, Benjamin & Kosanovic, Dragoljub, 2022. "Application of thermal energy storage with electrified heating and cooling in a cold climate," Applied Energy, Elsevier, vol. 328(C).
    20. Zhong, Wei & Dai, Zhe & Lin, Xiaojie & Pan, Guanchang, 2024. "Study on time-of-use pricing method for steam heating system considering user response characteristics and thermal storage capacity," Energy, Elsevier, vol. 296(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:18:y:2025:i:7:p:1869-:d:1629730. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.