Techno-economic analysis of High-Temperature Aquifer Thermal Energy Storage in district heating systems

Integrating renewable energy into district heating creates a heat supply–demand mismatch that High-Temperature Aquifer Thermal Energy Storage (HT-ATES) can help address. However, the potential greenhouse gas emission reduction and financial benefits of HT-ATES have received limited attention. Additionally, the interplay between the demand, supply components, and HT-ATES has been overlooked, while the assessment of integrating HT-ATES into a district heating system is crucial to understanding the benefits of the HT-ATES implementation. This study evaluates the integration of HT-ATES into a district heating system, focusing on both economic and environmental performance indicators. It novelly accounts for the dynamic operational interactions between HT-ATES and other system components, enabling a more realistic assessment of operational choices. The model is applied to a case study of a simplified district heating system. The results show that the relative size of the heat supplier compared to heat demand is a key determinant of the cost-effectiveness of HT-ATES. In the case study, a geothermal doublet reduced the levelized cost of heat by 25–37 €/MWh compared to a gas boiler, while also reducing reliance on fossil fuels. In contrast, HT-ATES had a limited impact on total system costs, regardless of whether it operated when stored heat was available or was used for peak shaving. Nevertheless, HT-ATES increased the renewable energy share by 9%–18% across all scenarios. Furthermore, the optimal geothermal capacity differed depending on whether HT-ATES was included. Finally, while a high renewable energy share can be cost-effective, achieving 100% renewable heat was found to be highly cost-ineffective in this case. These results support informed decision-making on HT-ATES implementation under appropriate system design conditions. • We assess the economics of components and heating systems with HT-ATES. • We investigate various system configurations, demand curves, and size. • The balance between stored and extracted heat impacts the economics of HT-ATES. • Geothermal heat and HT-ATES are competitive with the gas boiler. • 100% renewable heat is cost inefficient,