Spring 2026: Incentivizing the Shift: Closing the Thermal Energy Storage Valuation Disconnect

Date: May 2026

This session explores a critical paradox in grid modernization: although Permanent Load Shifting (PLS) is widely recognized as essential for resilience, reliability, and decarbonization, existing program designs and valuation frameworks fail to properly incentivize Thermal Energy Storage (TES). Using residential and commercial studies, panelists will show the gap between the persistent grid value TES provides (through demand smoothing, infrastructure stress reduction, local capacity relief, and emergency responsiveness) and the value captured under current load flexibility methodologies. The session will highlight how TES can scale behind the meter load shifting, be deployed to address localized constraints such as data center hot spots, and provide flexible reserves during grid emergencies. Panelists will discuss emerging methodological approaches that better reflect the continuous value of PLS, rather than forcing it into legacy demand response constructs, and will offer practical recommendations to better align program design with PLS grid value and accelerate TES adoption.

Speakers:
Connor Usry, Olivine, Inc.
Jane Melia, Harvest Thermal
John Hernandez, PG&E
Boaz Ur, Nostromo Energy

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