- Power-to-heat enables industrial companies to generate process heat using electricity from renewable sources, reducing CO₂ emissions in measurable ways.
- When combined with thermal storage, companies can use electricity when it is cheapest and provide heat precisely when it’s needed.
- Even without owning a power-to-heat system, businesses can access decarbonized heat through heat-as-a-service models – flexible, scalable and low in capital commitment.
The industrial sector is among the main consumers of natural gas worldwide, especially in energy-intensive industries. A substantial share of this is used for generating process heat. Anyone aiming to advance the energy transition in this area needs solutions that lower CO₂ emissions while remaining economically viable. Power-to-heat technologies deliver exactly that: they allow process heat to be decarbonized efficiently with renewable electricity. Especially below 500 °C – a temperature range that accounts for nearly half of industrial heat demand – electricity from wind and solar plants can be put to targeted use. Combined with thermal storage, this creates additional flexibility in both consumption and procurement.
Power-to-heat: turning electricity into heat
Power-to-heat (PtH) refers to the conversion of electricity into usable heat. It allows fossil fuels to be replaced in industrial applications. Two core technologies play a role here: direct heating systems such as electrode boilers and electrically powered heat pumps.
Direct power-to-heat systems use electricity to heat water through electrodes. Conversion losses are minimal – nearly all the input energy becomes heat. In practice, such systems can reach temperatures up to 500 °C, covering roughly half of industrial heat requirements.
The second option is heat pumps, which capture ambient heat from air or groundwater and raise it to a higher temperature level using electricity. Their efficiency is significantly higher: one kilowatt hour of electricity can produce three to four kilowatt hours of heat. These systems are especially suitable for lower temperature applications and are therefore commonly used in building heating.
Making better use of renewable energy with power-to-heat
Integrating power-to-heat does more than decarbonize heat supply. It also supports the integration of renewables into the wider energy system. Wind and solar power aren’t always available when demand peaks.
When generation is high, power-to-heat ensures that excess electricity doesn’t go to waste. Instead of curtailing renewable production, surplus power is converted into heat – contributing to grid stability and cross-sector energy management.
This creates a direct link between electricity and heat markets. Companies using PtH systems help buffer the fluctuations of renewable energy while strengthening supply security.
Thermal storage as a key component of power-to-heat solutions
Heat can be stored much more easily – and with lower losses – than electricity. Power-to-heat projects take advantage of this property, for example through modular thermal storage systems such as the ThermalBattery™.
Thinking economically: reducing electricity costs through flexibility
Industrial companies typically have a steady heat demand, but electricity prices can fluctuate sharply – from negative prices to peaks above 90 ct/kWh on the EPEX Spot market. Combining power-to-heat systems with thermal storage allows companies to use electricity during low-price periods, store heat, and deploy it later as needed.
The ThermalBattery™ stores heat at up to 390 °C and can be integrated into existing processes. Control is automated, based on market signals, weather forecasts, or production schedules. This flexibility gives companies more room to maneuver and helps reduce long-term electricity costs.
Decarbonizing process heat
Alongside the economic benefits, the carbon footprint is becoming a central factor. Power-to-heat enables companies to replace fossil fuels such as natural gas or heating oil with renewable electricity – without compromising temperature levels or reliability.
Industries with high heat demand, such as paper, textiles, or food production, stand to gain the most. Processes like drying, pasteurization, or washing can be electrified, often without major modifications to existing systems. CO₂ savings occur directly on-site and can be tracked transparently.
Power-to-heat as part of a broader decarbonization strategy
Modern power-to-heat systems are no longer isolated technical measures. They form part of integrated energy management strategies that link electricity, heat, and storage. Companies can either operate their own PtH units or use heat-as-a-service models.
In heat-as-a-service arrangements, the provider handles planning, installation, and operation of the infrastructure. The company simply purchases the required process heat – generated from low-cost electricity and stored with solutions such as the ThermalBattery™. Decarbonization thus becomes a managed service, predictable in both cost and quality.
This flexibility opens new opportunities especially for small and medium-sized enterprises that previously lacked access to their own power-to-heat systems – due to limited capacity or market knowledge. Electrifying heat supply becomes possible without large upfront investments.
FAQ: frequently asked questions about power-to-heat
How does power-to-heat work?
Power-to-heat converts electricity – usually from renewable sources – into heat. This happens either directly via electric heating elements or through heat pumps that harness ambient energy.
Is power-to-heat worthwhile?
Yes, particularly in industrial processes with constant heat demand. It reduces emissions, lowers energy costs, and increases independence from fossil fuels.
How much does a power-to-heat system cost?
Costs vary depending on system size, temperature requirements, and storage capacity. For mid-scale industrial facilities, investments typically fall in the mid six-figure range. Public funding programs can substantially reduce costs.
Does a heat pump count as a power-to-heat technology?
Yes. Heat pumps use electricity to generate usable heat and therefore fall under the PtH category. They are highly efficient but mainly suitable for lower temperature levels.
Is power-to-heat worthwhile with solar PV?
Absolutely – especially when photovoltaic systems produce surplus electricity. Combined with storage, this optimizes self-consumption and is particularly relevant for energy-intensive operations.
