Design price of independent energy storage

Is energy storage a viable resource for achieving energy decarbonization?

Energy storage is widely recognized by power system utilities and regulators as a crucial resource for achieving energy decarbonization. However, in deregulated power systems, investor-owned storage participates in electricity markets with a profit-driven motive.

How can energy storage help decarbonize power systems?

Energy storage is key to decarbonize power systems by allowing excess renewable energy to be stored and released back to the grid as needed. Ideally, storage should be charged from carbon-free and low-cost renewables and discharged to replace dirty and expensive fossil-fuel generation.

Can market designs affect the contribution of energy storage to electricity economics?

This study aims to evaluate how market designs can affect the contribution of energy storage to electricity economics and decarbonization, from early to deep decarbonization stages. The proposed open-source framework can be used by researchers and policymakers to assess emerging technologies and policy incentives.

What is the difference between economics and storage profitability?

Economics indicates electricity generation costs; storage profitability denotes storage arbitrage profits from the markets; sustainability reflects carbon emission; market volatility mitigation measures the standard deviation of real-time electricity prices for consumers.

Should storage be charged from co-located renewable generations?

While there are existing policies that incentivize storage to charge from co-located renewable generations, 42 there are currently no models for systematically matching storage with renewable sources in unit commitment and economic dispatch.

Are there saturation points in storage profits and generation costs?

By comparing Figures 3 and 2, we notice that there are close saturation points in storage profits and generation costs in real-time markets: 1 GW storage for low wind, 2 GW storage for medium wind, and 3.5 GW storage for high wind, respectively.