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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
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    References listed on IDEAS

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    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).
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