Thermal energy storage (TES) is widely recognized as a means to integrate renewable energies into the electricity production mix on the generation side, but its applicability to the demand side is also possible. In recent decades, TES systems have demonstrated a capability to shift electrical loads from high-peak to off-peak hours, so they have the potential to become a powerful instrument in demand-side management programs (DSM). Thermal storage is a technology that ensures energy security, efficiency and environmental quality. Of particular interest are applications where TES systems help manage the mismatch between availability of renewable electricity and the demand for electricity in buildings where hot water, heating and cooling are delivered by heat pumps and air conditioning for example. Thus this paper demonstrates the state of the art of present applications of thermal storage for demand-side management. A particular focus of this work is the attention paid to the characteristics of DSM and their relationship to different thermal storage systems. If TES effectiveness for the abovementioned applications is demonstrated, TES devices have a small percentage of the potential market. Therefore challenges and guidelines for a development plan are suggested. (c) 2011 Elsevier Ltd. All rights reserved.