This fact sheet provides an overview of thermal energy storage (TES) technologies, which heat or cool a storage medium and, when needed, deliver the stored thermal energy to meet heating or cooling needs. TES systems are used in commercial buildings, industrial processes, and district energy installations to deliver stored thermal energy during peak demand periods, thereby reducing peak energy use. TES systems are often integrated with electric or absorption chillers to reduce peak electricity costs and, in the case of new construction, to reduce capital costs by optimizing chiller size. TES technologies can support sites that have either renewable or fossil power generation, including combined heat and power (CHP) installations. With CHP, TES can help optimize equipment size by reducing the required peak CHP thermal capacity and increasing annual CHP usage. TES can also provide turbine inlet cooling for gas turbines used in CHP applications, which increases power production in hot ambient conditions.