The Dutch heating sector, responsible for 41% of national energy use, remains heavily reliant on fossil fuels. In light of climate goals, this thesis explores how integrating district heating systems with the electricity grid, particularly using geothermal energy and high-temperature aquifer thermal energy storage (HT-ATES), can reduce operational costs and improve flexibility and sustainability. Using a techno-economic optimization model, a real-world case study of Delft was analyzed across four scenarios: fixed and dynamic electricity pricing, grid constraints, and grid reinforcement. The results show that dynamic pricing enhances system responsiveness and storage value, while thermal storage proves value in shifting demand, reducing gas reliance, and improving grid stability. Grid limitations significantly impact electric heating, but storage offers a viable short-term mitigation. A trade-off is evident between capital costs, system resilience, and emissions: larger systems reduce CO₂ but require higher investment.