Background A key priority of the EU is to reduce CO2 emissions and promote renewable energy sources. The related quantified goals are laid down in the EU “20-20-20” targets. To reach these targets, the actors along the electricity value chain need to overcome some technical and operational challenges. Energy storage is considered to play a critical role in this regard. However, the wider deployment of currently available technologies for long-term storage is limited due to geographic site requirements, development gaps and capital costs. The transition towards a more sustainable European energy system poses a number of challenges for electricity grids, and new ways to facilitate an increased feed-in of volatile distributed renewable energy sources (DRES) are required. Objectives The project Storage Application For Renewables (SAFR) aims to enable a further expansion of the share of DRES by developing an innovative and highly flexible thermoelectric energy storage system. This system, which will be demonstrated on Fehmarn Island, will operate as a flexible load (in order to avoid congestion) and as a generation unit (serving as a source of electricity in times of peak demand). The storage solution is highly flexible, location-independent and operates emission-free. Specific objectives are to: Demonstrate an innovative thermoelectric energy storage technology that can be used on a decentralised level and flexibly adapted to the specific application; Optimise the electricity network utilisation locally and reduce the need for network extension in general; Evaluate the technical performance and the environmental and economic benefits of the storage technology; and Evaluate the operating models for this new type of storage technology and the financial models for enabling the participation of local, private and municipal actors. Expected results: A high-temperature thermoelectric energy storage system; Optimised electricity network utilisation as demonstrated on Fehmarn Island where a electricity consumption from renewable energy sources will be increased from currently 89% to approaching 100%; Verified technical, environmental and economic performance, with the results summarised in reports; A novel operating model and financing concept that enables local, private and municipal actors to invest in these technologies; and Demonstration of the technical feasibility of using the cogenerated heat locally (By replacing the current heat supply, around 880 tonnes of CO2 will be saved annually).