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Performance/Costs: Thermal energy storage systems are installed for two major reasons: lower
initial project costs and lower operating costs. Initial cost may be lower because distribution tem-
peratures are lower and equipment and pipe sizes can be reduced. Operating costs may be lower
due to smaller compressors and pumps as well as reduced time-of-day or peak demand utility costs.
The economics of thermal storage is very site- and system-specific. A feasibility study is generally
required to determine the optimum design for a specific application. Several examples exist of
effective TES systems that were installed for less cost than conventional alternatives and that also
provided significant energy and energy cost reductions.
TES projects often profit from unexpected benefits that are secondary to the primary reason for an
action. For example, a well designed TES air conditioning application may experience reduced
chiller energy consumption, lower pump horsepower, smaller pipes, high reliability, better system
balancing and control, and lower maintenance costs.
2
Thermal Energy Storage Factsheet
Determining electrical cost savings from shifting chiller operation from daytime to night-time (or
off-peak operation) can be complicated, depending upon the local utility rate structure. Your utility
may have time-of-day peak rates as well as differing peak demand rates. Without thermal storage, a
chiller will typically operate during times of peak electrical demand, and thus be included in the
peak monthly demand charge. Your greatest savings will occur when you shift chiller operation to
off-peak times.
Table 1 shows the benefit of using thermal storage to shift chiller use to a time when the rest of the
facility is unoccupied. The chiller load (in terms of ton-hours delivered) is the same, but demand
charges for the chiller would be eliminated. The table shows the effect of two different utility
demand rates ($6 and $12 per kW).
Availability: Thermal energy storage equipment and installations are available from a number of
suppliers. For a list of equipment manufacturers, contact the Thermal Storage Applications Re-
search Center (TSARC) or go to the Energy User News Buyers Guide website (see “For Additional
Information” below).