Energy storage switch energy storage

Does storage reduce the need for transmission capacity and dispatchable renewables?

We observe that storage decreases the need for transmission capacity and dispatchable renewables like biomass while shifting the solar and wind balance (Fig. 5b). Due to the significant drop in curtailment for scenarios up to 20 TWh, less generation capacity is needed to deliver the same energy to the grid.

How does energy storage affect energy prices?

As energy storage is added to the grid, the high July and December prices are reduced but prices in neighbouring months increase. In the 20 TWh scenario, average marginal prices for July, August, November, December and January range from 52 to 100 $/MWh while other months average 35 $/MWh or less.

Can energy storage reduce the need for transmission expansion?

The ability of energy storage to reduce the need for transmission expansion is significant since transmission expansion is often challenging from a political and regulatory perspective.

Do energy storage mandates reduce variability in electricity prices?

We find that energy storage mandates largely reduce the variability in electricity prices, especially for the first 20 TWh of mandates (Fig. 6a). In the 1.94 TWh baseline, 82% of the marginal prices are at 0 $/MWh since for large portions of the year the WECC generates more renewable energy than it needs.

How important are storage power capacity mandates?

Overall, in the past storage power capacity mandates have had an important impact; for example, the California Public Utilities Commission required the procurement of 1.3 GW of energy storage by 2020 51 and several states have followed this initiative 39.

Should LDEs energy storage be used in future research?

Doing so in future research would be key considering that LDES energy storage would likely be more favourable when considering energy reserve requirements or when renewable generation is limited.