SciTech Connect

Title: Value of Energy Storage for Grid Applications

Value of Energy Storage for Grid Applications This analysis evaluates several operational benefits of electricity storage, including load-leveling, spinning contingency reserves, and regulation reserves. Storage devices were simulated in a utility system in the western United States, and the operational costs of generation was compared to the same system without the added storage. This operational value of storage was estimated for devices of various sizes, providing different services, and with several sensitivities to fuel price and other factors. Overall, the results followed previous analyses that demonstrate relatively low value for load-leveling but greater value for provision of reserve services. The value was estimated by taking the difference in operational costs between cases with and without energy storage and represents the operational cost savings from deploying storage by a traditional vertically integrated utility. The analysis also estimated the potential revenues derived from a merchant storage plant in a restructured market, based on marginal system prices. Due to suppression of on-/off-peak price differentials and incomplete capture of system benefits (such as the cost of power plant starts), the revenue obtained by storage in a market setting appears to be substantially less than the net benefit provided to the system. This demonstrates some of the additional challenges for storage deployed more » in restructured energy markets. « less
Authors: ; ; ; ; ; ; ;
Publication Date:
OSTI Identifier:1079719
Report Number(s):NREL/TP-6A20-58465
DOE Contract Number:AC36-08GO28308
Resource Type:Technical Report
Data Type:
Research Org:National Renewable Energy Laboratory (NREL), Golden, CO.
Sponsoring Org:USDOE Office of Energy Efficiency and Renewable Energy Analysis and Evaluation
Country of Publication:United States
Language:English
Subject: 24 POWER TRANSMISSION AND DISTRIBUTION; 25 ENERGY STORAGE; 32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION ENERGY STORAGE; GRID MODELING; Energy Analysis