The Latent Load Arbitrage: Expert Insights on Thermal Storage as a Trading Asset
Thermal storage is emerging as a powerful tool for energy arbitrage, allowing operators to shift cooling and heating loads to capture price differentials in electricity markets. This guide provides expert insights into designing, implementing, and optimizing latent load arbitrage strategies, covering core concepts, operational workflows, technology stacks, risk management, and decision frameworks. Written for experienced practitioners, it avoids introductory fluff and focuses on actionable approaches for maximizing returns while navigating market complexities. Topics include phase-change materials, ice storage, chilled water systems, predictive control algorithms, market participation models, and financial analysis. Real-world scenarios illustrate common pitfalls and best practices, and a mini-FAQ addresses key questions. This resource is intended for facility managers, energy traders, and sustainability professionals seeking to monetize thermal flexibility in deregulated markets.