A conceptual system, mobilized thermal energy storage system (M-TES), was proposed for distributed heat supply. The economic evaluation that is essential to identify the key issues and provide guidelines regarding system improvement was conducted in this paper. Results show that the cost using M-TES to supply heat (COH) is primarily determined by the transport distance and the heat demand. The variation of COH is proportional to the transport distance, but inversely proportional to the heat demand. According to the sensitivity study, COH is more sensitive to the price of phase change material (PCM) than other parameters, such as the transport cost. Moreover, it is possible for an M-TES system to compete with other heat supply methods, such as pellet/bio-oil/biogas/oil boiler systems and electrical air-source heat pump. When using M-TES to replace the existing system, the payback time is mainly determined by the transport distance and the heat demand. Water is another potential working fluid for M-TES system. Comparatively, using PCM is more suitable for cases with larger heat demand or longer transport distance. (C) 2012 Elsevier Ltd. All rights reserved.