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Renewable Heat Pathways: Where Does eTES fit?

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Decarbonising industrial heat is now a strategic priority. Businesses are considering renewable heat options such as biomass and biogas, certified green gas, high-temperature heat pumps, electric boilers, and Electrical Thermal Energy Storage (eTES). Each pathway has a role to play – but none offers a universal solution.

Technology Options

eTES

• Stores electricity as heat, enabling flexible use of renewable power and supply of high-temperature heat

• Provides load-shifting benefits but generally requires access to alternative tariffs to be cost-competitive

Electric Boilers

• Straightforward replacement for gas-fired boilers

• Simple to install but can increase operating costs under standard tariffs

• Emissions improvements depend on renewable electricity supply, which in most of Australia is not yet guaranteed

Heat Pumps

• Highly efficient for low- to medium-temperature applications

• Use cases are growing in high-temperature industrial processes, often relying on a consistent waste heat source for efficiency

Biomass and Biogas

• Well-established technologies for continuous heat supply

• Depend on reliable, sustainable fuel chains or onsite biogas production capacity

Certified Green Gas

• Biomethane supplied through the gas network under certification

• Requires no change to site infrastructure

• Typically higher operating costs due to current supply constraints

Heat/Energy-as-a-Service

• Third party owns and operates the renewable heat system

• Delivered as a service with limited or no CAPEX required

• Attractive for organisations seeking off-balance sheet solutions

When Does eTES Work Best?

Success with eTES depends on three key factors:

• Heat and Power Use: The system must be sized and operated to match your load profile and allow effective charging and discharging

• Infrastructure Readiness: Electrical and thermal systems need to integrate with eTES without costly upgrades

• Certificates and Incentives: Access to environmental certificates or tariffs is often essential to achieve favourable financial outcomes

Choosing the Right Pathway

The optimal renewable heat solution depends entirely on-site context, including:

• Heat demand profile and temperature requirements

• Existing boiler and electrical infrastructure

• Availability of renewable electricity or alternative fuels

• Suitability for certificates, grants, and incentive schemes

In many cases, a hybrid approach delivers the best balance of cost, emissions reduction, and reliability.

How Northmore Gordon Helps

We provide independent, technology-neutral advice across all renewable heat options. Our services include:

• Comparative modelling of performance, cost, and emissions

• Infrastructure assessments to highlight integration requirements early

• Certificate and incentive mapping to maximise financial returns

Don’t Start with Vendor Quote

Collecting quotes from individual vendors in isolation often leads to poor comparisons and mismatched systems. A strategic review should come first – clarifying which pathway, or combination of pathways, makes sense for your business.

If renewable heat is on your agenda, talk to Northmore Gordon first. We’ll help you review the options, model the economics, and move forward with confidence.



For more information: Contact Grant Raja, Principal Consultant

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What is eTES and how does it work?

eTES (Electrical Thermal Energy Storage) stores electricity as heat, enabling flexible use of renewable power and supply of high-temperature heat. It provides load-shifting benefits but generally requires access to alternative tariffs to be cost-competitive, according to Northmore Gordon's article 'Renewable Heat Pathways: Where Does eTES fit?'.

What renewable heat technology options does the article discuss besides eTES?

The article discusses Electric Boilers, Heat Pumps, Biomass and Biogas, Certified Green Gas, and Heat/Energy-as-a-Service as renewable heat pathways alongside eTES.

What are the drawbacks of electric boilers as a renewable heat option?

Electric boilers are a straightforward and simple replacement for gas-fired boilers, but they can increase operating costs under standard tariffs, and their emissions improvements depend on renewable electricity supply, which in most of Australia is not yet guaranteed.

When are heat pumps most effective for industrial heat?

Heat pumps are highly efficient for low- to medium-temperature applications. Their use in high-temperature industrial processes is growing, but this often relies on a consistent waste heat source for efficiency.

What do Biomass, Biogas, and Certified Green Gas require to work well?

Biomass and Biogas are well-established technologies for continuous heat supply but depend on reliable, sustainable fuel chains or onsite biogas production capacity. Certified Green Gas is biomethane supplied through the gas network under certification, requiring no change to site infrastructure, but it typically has higher operating costs due to current supply constraints.

What is Heat/Energy-as-a-Service?

Heat/Energy-as-a-Service is a model where a third party owns and operates the renewable heat system, delivering it as a service with limited or no CAPEX required, making it attractive for organisations seeking off-balance sheet solutions.

What three factors determine whether eTES will work well at a site?

According to the article, success with eTES depends on three key factors: Heat and Power Use (the system must be sized and operated to match the load profile and allow effective charging/discharging), Infrastructure Readiness (electrical and thermal systems need to integrate with eTES without costly upgrades), and Certificates and Incentives (access to environmental certificates or tariffs is often essential for favourable financial outcomes).

What factors determine the optimal renewable heat pathway for a business?

The optimal renewable heat solution depends entirely on site context, including heat demand profile and temperature requirements, existing boiler and electrical infrastructure, availability of renewable electricity or alternative fuels, and suitability for certificates, grants, and incentive schemes. In many cases, a hybrid approach delivers the best balance of cost, emissions reduction, and reliability.

Why does the article recommend not starting with vendor quotes when planning renewable heat projects?

The article states that collecting quotes from individual vendors in isolation often leads to poor comparisons and mismatched systems. A strategic review should come first to clarify which pathway, or combination of pathways, makes sense for the business.

How does Northmore Gordon help businesses choose a renewable heat pathway, and who should be contacted?

Northmore Gordon provides independent, technology-neutral advice across all renewable heat options, including comparative modelling of performance, cost, and emissions; infrastructure assessments to highlight integration requirements early; and certificate and incentive mapping to maximise financial returns. For more information, businesses can contact Grant Raja, Principal Consultant, at g.raja@northmoregordon.com.

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