- Flexibility will be the decisive capability in tomorrow’s power market – especially for energy-intensive businesses with large, controllable electricity demand.
- Power-to-heat solutions with thermal storage create economic advantages, improve the CO₂ footprint and support grid stability.
- Companies are taking on new roles: no longer just consumers of electricity, but active market participants responding to price signals and contributing system services.
The European power market is undergoing a profound transformation. With the accelerated expansion of renewables, the phase-out of fossil fuels and growing electrification across industry and transport, the rules are shifting. At the heart of this change lies a key question: how can a future market reliably and cost-effectively match supply and demand? Thermal storage has significant potential here – not just as a technical solution, but as part of a more flexible market design.
From balance to dynamics: How the power market works
Traditionally, the European markets have been organized around strict balance: generation and consumption must match at every moment. Because electricity can only be stored to a limited extent, supply must be continuously adjusted to demand. This balancing role has long been performed by conventional power plants, particularly gas-fired units and, to a lesser degree, coal plants. As more wind and solar come online, maintaining control is becoming a challenge, as renewable generation depends on the weather and is therefore highly variable.
Flexibility as the market’s key currency
Flexibility will be the defining resource in the power system of the future. Companies able to adapt their energy use to price signals and grid conditions will secure lasting competitive advantages. That means consuming or storing electricity precisely when it is abundant and cheap – a crucial contribution to grid stability and efficient use of renewable sources. In an increasingly decentralized system with many players, this ability becomes decisive.
This is particularly relevant for energy-intensive industries with steady, high demand. If these businesses can react flexibly to price signals, for instance through load shifting or intermediate storage, they not only cut energy costs but also contribute to the success of the energy transition.
Regulatory shifts at European level
For these new roles to be economically viable, clear political frameworks are needed. Current EU reforms aim in exactly this direction. The European power market functions as an internal market with cross-border trading, and the Commission has long pushed for stronger integration of national systems. The goal is to combine security of supply, competitiveness and climate protection. Proposals for reform include stronger incentives for flexible consumption, such as capacity mechanisms, price signals and revisions to grid fee structures.
At the same time, short-term electricity prices are increasingly shaped not only by generation costs but also by demand behaviour. This gives companies a new role: they are no longer just consumers, but active participants in the market.
Thermal storage as a bridge between power and process heat
Thermal storage is one of the most effective levers for greater flexibility. It enables electricity to be converted into heat and supplied to industrial processes exactly when needed. The benefit: companies can buy power when it is cheap or plentiful and store the heat until it is required.
For businesses with high heat demand, this creates a dual opportunity. They reduce dependence on fossil fuels while tapping into new market opportunities in electricity trading. The larger the storage capacity and the more precise the control, the greater the flexibility potential.
What this means for energy-intensive industries
The technical possibilities only deliver real value if they are aligned with specific industrial requirements. This is why the electrification of entire production areas is moving into focus – along with the question of what thermal storage can actually do for energy-intensive companies. Many of these processes require temperatures between 100 and 400 degrees Celsius, which can be reliably delivered via power-to-heat solutions with thermal storage. What matters is not only technical feasibility, but also economic viability.
Companies investing in these solutions today can benefit from the market transformation. They reduce exposure to volatile gas prices, improve their carbon footprint and unlock new revenue streams through active participation in the power market – from providing grid services to benefiting from negative prices.
Perspectives and practical approaches for tomorrow’s power market
The potential of thermal storage can already be harnessed today. Solutions such as the ThermalBattery™ make it possible to store large amounts of energy as high-temperature heat and release it on demand. They can be integrated into existing infrastructure, are scalable, and combine technical robustness with market flexibility.
In the future power market – where security of supply, decarbonization and economic efficiency must be achieved simultaneously – such storage technologies are no longer peripheral. They become a central link between electricity, heat and industrial processes.
What will matter in the power market ahead
For thermal storage to realize its full potential, reliable regulatory frameworks are needed. These include fair grid fee structures that reward flexible consumers, transparent wholesale price signals, and stronger integration of storage into market mechanisms – for example through participation in balancing markets or flexibility platforms.
The European power market will continue to evolve – not only through new technologies, but also through the active involvement of new players. Industrial companies willing to embrace transformation have the chance to redefine their role in the energy system. Thermal storage could become a decisive instrument on that path.
