Total market size

According to the report “Thermal Energy Storage Market by Technology, Storage Material, Application, End User, and Region – Global Forecast to 2022” published by MarketsAndMarkets, The Thermal Energy Storage (TES) market was valued at USD 3.33 Billion in 2016, and is expected to grow at a CAGR of 11.0% from 2017 to 2022. Growing Concentrating Solar Power (CSP) installations and integration with TES is one of the major reason behind growing thermal energy storage. The increasing demand for thermal energy storage in HVAC systems, also helps in load shifting that makes TES economic due to differential on-peak and off-peak rates, and is driving the TES market for HVAC systems.

It is expected that the segment of heat storage in the form of physical heat will retain the largest share of the thermal energy storage market during the forecasting period.

Recent advances in the renewable energy sector show how the global scale of such projects will develop over the next two decades. Trends show that solar energy (PV, CSP, heating and cooling), wind (off-hore and on-shore), hydropower and bioenergy are more popular among developers and investors.

The storage of heat in the form of sensible heat dominated in the common market of thermal energy storage in 2016. Storage of heat in the form of latent heat has a number of applications for residential and industrial purposes. Underground storage of heat in both liquid and solid media is also used for large-scale applications, such as centralized heating and cooling systems. According to forecasts, in the market will be observed an increase in the use of thermal energy storage technology in the form of sensible heat during the forecast period (2017-2022) in the Middle East, Africa and the Asia-Pacific region.

There are several technologies for seasonal thermal energy storage in large amounts. But storing heat in the ground with U-shaped borehole heat exchangers is the cheapest method in terms of investment costs (Fig.3). This technology can be easily applied to space heating and domestic hot water supply systems. The demand for such technologies will be increasing, as more and more buildings are being built every year and they will need thermal energy for space heating and hot water supply systems.

The need for space heating is increasing in Kazakhstan. By October 2016 the average age of thermal power plants in Kazakhstan was more than 28.8 years. At the same time, 57% of the capacities have been exploited for more than 30 years (https://forbes.kz/news/2016/10/31/newsid_125611). There are cities and regions where equipment wear has reached a critical level, and they can not be upgraded but must be replaced completely. For example, Semey, Arkalyk, Shakhtinsk, Ust-Kamenogorsk, Saran, and others.
And there are a lots of remote from developed infrastructures rurals, where the building of their own  autonomous power supply network is much easier than the conduction of power transmission lines and pipes from closest cities. The first years, the introduction of technology is likely to start from such remote rurals with a population of up to 300 houses.

Market growth dynamics

The average natural increase of population in Kazakhstan over the past 10 years was about 220 000 people per year. If to assume that the housing per person in Kazakhstan is 20 square meters, then that means that about 4,400,000 m2 of new residential areas, or about 75,000 new apartments should be built annually. All these new apartments need space heating and hot water supply. Taking into account the fact that during the heating season to provide 1 m2 of living space with heat the 70-100 W or 252-360 kJ/h of energy is required, then for providing heat to the 4 400 000 m2 of living space during the entire heating season (6 months), 6 600 000 GJ of energy will be required. And here we are not even considering the DHWS and heat losses along heat transmission pipes. Consequently, demand for thermal energy will grow and as soon we move to an environmentally friendly sources, as better will be for the country’s economy and environment.