Effective assets of grid energy storage investment

How long does a grid need to store electricity?

First, our results suggest to industry and grid planners that the cost-effective duration for storage is closely tied to the grid’s generation mix. Solar-dominant grids tend to need 6-to-8-h storage while wind-dominant grids have a greater need for 10-to-20-h storage.

Is energy storage a distinct asset class within the electric grid system?

The authors support defining energy storage as a distinct asset class within the electric grid system, supported with effective regulatory and financial policies for development and deployment within a storage-based smart grid system in which storage is placed in a central role.

What role does energy storage play in a smart grid?

Asset class position and role of energy storage within the smart grid As utility networks are transformed into smart grids, interest in energy storage systems is increasing within the context of aging generation assets, heightening renewable energy penetration, and more distributed sources of generation .

How does energy storage affect investment in power generation?

Investment decisions Energy storage can affect investment in power generation by reducing the need for peaker plants and transmission and distribution upgrades, thereby lowering the overall cost of electricity generation and delivery.

Should energy storage be a separate asset?

Regulatory, economic and other challenges that inhibit further development and deployment of energy storage in the power grid can best be surmounted through the classification of storage as a distinct asset. The marketplace would be sufficiently receptive and responsive for storage to realize its most efficient value.

Should energy storage be a central asset class?

Therefore, energy storage as a distinct asset class in a central role will increase the value of storage investments while enhancing the operation of the smart grid. To further this goal, storage requires policy support.