Energy 4 min read
Thermal energy storage
Also known as: TES, heat storage
Definition
Thermal energy storage (TES) stores energy by heating or cooling a medium such as water, rock or molten salt, and releases it later as heat, cold or power. It lets a site buy electricity when it is cheap and deliver heat when it is needed.
Cite this entry
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"Thermal energy storage". Order Group, Software glossary, 10 October 2026. https://ordergroup.co/glossary/thermal-energy-storage/
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<a href="https://ordergroup.co/glossary/thermal-energy-storage/">Thermal energy storage</a> - Order Group
How thermal energy storage works
IRENA, quoting the European Association for Storage of Energy, defines thermal energy storage as "the temporary storage of energy by heating or cooling a storage medium so that the stored energy can be used at a later time" for power generation, heating or cooling. The medium can be water in a tank, rock or ceramics, a phase change material, or molten salt.
IRENA's 2020 outlook groups 13 TES technologies into four families. Sensible storage raises or lowers the temperature of a material. Latent storage uses the heat absorbed or released when a material melts or freezes. Thermochemical storage keeps energy in a reversible chemical reaction, and mechanical-thermal systems combine heat storage with compressed or liquefied air. The same report counts about 234 GWh of TES installed worldwide in 2019 and expects the market to more than triple, to over 800 GWh, by 2030.
Molten salt is the most widely used TES technology in the power sector, mainly because concentrated solar power (CSP) plants use it. IRENA puts installed molten-salt capacity at over 21 GWh, with Spain, the United States and South Africa leading at the end of 2019. The thermal stability of the salts limits the maximum operating temperature to 565°C.
Industrial heat is a newer use. A unit charges from the grid through electric heaters when power is cheap or in surplus, keeps the heat in insulated tanks, and discharges through a steam generator when a process or a district heating network needs it. Kyoto Group's Heatcube works this way: its standard 52 MWh configuration delivers steam at 150-300°C and the manufacturer quotes round-trip efficiency above 93% at one cycle per day. The two efficiency figures on this page describe different things: IRENA's over 98% in the table below is for molten-salt storage as a technology class, while 93% is Kyoto's figure for a complete Heatcube unit, which charges through electric heaters and discharges through a steam generator.
| Technology | Family | Capacity range | Operating temperature | Round-trip efficiency | Storage period |
|---|---|---|---|---|---|
| Water tank (WTTES) | Sensible | kWh to 1 GWh | 10 to 90°C | 50 to 90% | Hours to months |
| Underground (UTES) | Sensible | MWh to GWh | 5 to 95°C | up to 90% | Weeks to months |
| Solid state (rock, ceramics) | Sensible | 10 kWh to GWh | -160 to 1,300°C | over 90% | Hours to months |
| Molten salts | Sensible | MWh to 5 GWh | 265 to 565°C | over 98% | Hours to days |
| Ice storage | Latent | kWh to 100 MWh | -3 to 3°C | over 95% | Hours to days |
What thermal energy storage means for your software
A thermal store is a set of tanks, pumps, valves, heaters and a steam generator, and somebody has to decide every few minutes what each of them does. The software around it usually has four layers, and you should know which ones you are buying.
The first is control and safety: the plant's control system, which Kyoto calls the BMS of its thermal battery, and the SCADA screens operators use. It reads tank temperatures and levels, pump and valve states and heater power, and it keeps the salt inside its operating range. A molten-salt store cannot be allowed to cool below its lower temperature limit, so heater control, alarms and safe shutdown sequences belong in this layer, and they need testing on real hardware as well as in simulation.
The second is the interface to the site. Kyoto's Heatcube connects its BMS to the customer's energy management system (EMS) through a standard industry interface. Your tender should name that interface and the signals that cross it: available heat in MWh, maximum charge and discharge power, steam demand, alarms. If the store will also offer grid services, response time matters too. Heatcube's charge response is under 3 seconds.
The third is optimization. The value of TES comes from moving electricity consumption from expensive hours to cheap ones, so the scheduler needs day-ahead and intraday prices, a weather forecast and a forecast of heat demand. Market data feeds fail and change format, so ingestion needs validation, retries and a fallback schedule.
The fourth is data and simulation: historian, dashboards and often a digital twin used to test charge strategies and to size the next plant before it is built.
Molten salt also appears in electrochemical cells, a different technology from the heat stores described here. The article on molten salt batteries covers both.
| Function | What it handles | Question for your supplier |
|---|---|---|
| BMS and SCADA | Temperatures, levels, pumps, valves, heaters, alarms | Which actions are automatic and which need operator approval? |
| EMS interface | State of charge in MWh, power limits, steam demand | Which protocol, and who owns the signal list? |
| Scheduler | Prices, weather, heat demand, charge plan | What happens when the price feed is missing? |
| Data platform | Time series, history, reports | Who owns the data and where is it hosted? |
| Simulation and planning | Plant performance, sizing, what-if scenarios | Is the model calibrated with measured data? |
From our projects
We worked with Kyoto Group for three and a half years on industrial IoT and digital twin software for its molten-salt thermal storage, taking it from a UX/UI MVP to a SCADA-based system that monitors and controls the flow of energy in real time.
In the 2024 phase the scope included what Kyoto calls the BMS of its thermal battery: control of the valves, pumps and the flow of hot fluid in the salt store. Around it the team worked on secure cloud infrastructure for the plant's devices and sensors, surveillance with infrared cameras and image recognition, and management dashboards. The system also collected weather data and analyzed energy prices. The stack was React.js, Python and AWS, with Terragrunt and Jenkins for infrastructure. Two lessons from that work carry over to any TES project. Market data APIs, ENTSO-E among them, returned inconsistent file formats and were not always available, so the price feed needed validation and a fallback. Data quality from the plant also has to be settled at the start, because the simulation and the scheduler depend on it.
Read more on the blog
Sources
- Innovation Outlook: Thermal Energy Storage (2020) - International Renewable Energy Agency (IRENA)
- Heatcube - molten-salt thermal battery, technical data - Kyoto Group AS
- Norbis Park - Heatcube #1 - Kyoto Group AS
FAQ
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A battery stores electricity and returns electricity. A thermal store converts electricity (or solar or waste heat) into heat and usually returns heat or steam, so it fits sites that need process heat or district heating. Turning stored heat back into electricity is possible, as in CSP plants, but it costs efficiency.
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IRENA lists round-trip efficiency above 98% for molten-salt storage. Kyoto quotes over 93% for Heatcube at one cycle per day. Ask your supplier what the figure includes, for example heater and steam generator losses and heat lost while the store stands idle.
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At minimum a control system for the store (Kyoto calls it the BMS of its thermal battery) with SCADA screens for control and safety, an interface to the site's EMS, and a scheduler that charges on cheap hours using price and weather forecasts. Larger projects add a data platform and a simulation model or digital twin.
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It can when it charges fast enough to follow grid signals. Kyoto planned to use Heatcube's rapid charging response at Norbis Park in Aalborg to take part in the flexible reserve market. The software then also has to receive activation signals and report delivered flexibility.
Building a system that depends on Thermal energy storage?
See how we build software for this domain, with case studies and the stack we use.