Assessing the Potential of Battery Storage as a Peaking Capacity Resource in the United States

Frazier, A. Will; Cole, Wesley; Denholm, Paul; Greer, Daniel; Gagnon, Pieter

doi:10.1016/j.apenergy.2020.115385

Assessing the Potential of Battery Storage as a Peaking Capacity Resource in the United States

Journal Article · Sat Jun 27 00:00:00 EDT 2020 · Applied Energy

DOI:https://doi.org/10.1016/j.apenergy.2020.115385· OSTI ID:1769860

Frazier, A. Will; ; ; Greer, Daniel; Gagnon, Pieter

In 2018, the United States Federal Energy Regulatory Commission established an order requiring all energy market operators in their jurisdiction to allow storage resources to participate as capacity resources. In response to the order, each market operator specified a minimum duration for storage resources to meet or exceed to qualify as peaking capacity. In this work, we assess the impacts of minimum storage duration requirements on energy storage buildout and system operation through 2050 in the United States electricity grid. We also investigate the role that future capital cost reductions play in energy storage deployment in the United States. We use a national-scale capacity expansion model and allow the model to choose from a suite of competing technologies, including battery storage devices of various durations as it builds out a least-cost system. We consider scenarios different minimum storage durations and storage cost projections. We find there is substantial economic potential – greater than 100 GW in some cases – for storage with durations of ten hours or less to provide peaking capacity in the United States. We also find that storage deployment is sensitive to minimum storage duration requirements. Longer requirements reduce the amount of storage deployed. Shorter requirements lead to more deployment, but if they are not adjusted to account for the declining capacity credit of storage, there is greater risk for instances of unserved energy. Our results indicate that the design and implementation of duration requirements can have substantial impacts on storage deployment and broader system reliability.

Research Organization:: National Renewable Energy Laboratory (NREL), Golden, CO (United States)

Sponsoring Organization:: USDOE Office of Energy Efficiency and Renewable Energy (EERE), Strategic Programs (EE-SP); USDOE Office of Energy Efficiency and Renewable Energy (EERE), Solar Energy Technologies Office (EE-4S); USDOE Office of Energy Efficiency and Renewable Energy (EERE), Water Power Technologies Office (EE-4W); USDOE Office of Energy Efficiency and Renewable Energy (EERE), Wind Energy Technologies Office (EE-4W)

DOE Contract Number:: AC36-08GO28308

OSTI ID:: 1769860

Report Number(s):: NREL/JA-6A20-76006; MainId:7144; UUID:fbfd4415-ca46-ea11-9c31-ac162d87dfe5; MainAdminID:19838

Journal Information:: Applied Energy, Journal Name: Applied Energy Vol. 275

Country of Publication:: United States

Language:: English

References (21)

The National Solar Radiation Data Base (NSRDB) Sengupta, Manajit; Xie, Yu; Lopez, Anthony Renewable and Sustainable Energy Reviews, Vol. 89 https://doi.org/10.1016/j.rser.2018.03.003	journal	June 2018
Regional Energy Deployment System (ReEDS) Model Documentation: Version 2018 Cohen, Stuart M.; Becker, Jonathon; Bielen, David A. https://doi.org/10.2172/1505935	report	April 2019
Determining the Minimal Power Capacity of Energy Storage to Accommodate Renewable Generation Han, Xingning; Liao, Shiwu; Ai, Xiaomeng Energies, Vol. 10, Issue 4 https://doi.org/10.3390/en10040468	journal	April 2017
PJM Integrates Energy Storage: Their Technologies and Wholesale Products Chen, Hong; Baker, Scott; Benner, Scott IEEE Power and Energy Magazine, Vol. 15, Issue 5 https://doi.org/10.1109/MPE.2017.2708861	journal	September 2017
A Dynamic Programming Approach to Estimate the Capacity Value of Energy Storage Sioshansi, Ramteen; Madaeni, Seyed Hossein; Denholm, Paul IEEE Transactions on Power Systems, Vol. 29, Issue 1 https://doi.org/10.1109/TPWRS.2013.2279839	journal	January 2014
The future cost of electrical energy storage based on experience rates Schmidt, O.; Hawkes, A.; Gambhir, A. Nature Energy, Vol. 2, Issue 8 https://doi.org/10.1038/nenergy.2017.110	journal	July 2017
Effective Load Carrying Capability of Generating Units Garver, L. IEEE Transactions on Power Apparatus and Systems, Vol. PAS-85, Issue 8 https://doi.org/10.1109/TPAS.1966.291652	journal	August 1966
Capacity Value of Wind Power Keane, A.; Milligan, M.; Dent, C. J. IEEE Transactions on Power Systems, Vol. 26, Issue 2 https://doi.org/10.1109/TPWRS.2010.2062543	journal	May 2011
Security constrained co-planning of transmission expansion and energy storage Gan, Wei; Ai, Xiaomeng; Fang, Jiakun Applied Energy, Vol. 239 https://doi.org/10.1016/j.apenergy.2019.01.192	journal	April 2019
Climate change is projected to have severe impacts on the frequency and intensity of peak electricity demand across the United States Auffhammer, Maximilian; Baylis, Patrick; Hausman, Catherine H. Proceedings of the National Academy of Sciences, Vol. 114, Issue 8 https://doi.org/10.1073/pnas.1613193114	journal	February 2017
Proactive transmission expansion planning with storage considerations Gonzalez-Romero, Isaac-Camilo; Wogrin, Sonja; Gomez, Tomas Energy Strategy Reviews, Vol. 24 https://doi.org/10.1016/j.esr.2019.02.006	journal	April 2019
Assigning value to energy storage systems at multiple points in an electrical grid Balducci, Patrick J.; Alam, M. Jan E.; Hardy, Trevor D. Energy & Environmental Science, Vol. 11, Issue 8 https://doi.org/10.1039/C8EE00569A	journal	January 2018
Energy Storage as a Peaker Replacement: Can Solar and Battery Energy Storage Replace the Capacity Value of Thermal Generation? Stenclik, Derek; Zhang, Bei; Rocheleau, Richard IEEE Electrification Magazine, Vol. 6, Issue 3 https://doi.org/10.1109/MELE.2018.2849835	journal	September 2018
The potential for battery energy storage to provide peaking capacity in the United States Denholm, Paul; Nunemaker, Jacob; Gagnon, Pieter Renewable Energy, Vol. 151 https://doi.org/10.1016/j.renene.2019.11.117	journal	May 2020
Long term evaluation of electric storage technologies vs alternative flexibility options for the Swiss energy system Panos, Evangelos; Kober, Tom; Wokaun, Alexander Applied Energy, Vol. 252 https://doi.org/10.1016/j.apenergy.2019.113470	journal	October 2019
Sunny with a Chance of Curtailment: Operating the US Grid with Very High Levels of Solar Photovoltaics Frew, Bethany; Cole, Wesley; Denholm, Paul iScience, Vol. 21 https://doi.org/10.1016/j.isci.2019.10.017	journal	November 2019
An Introduction to Grid Services: Concepts, Technical Requirements, and Provision from Wind Denholm, Paul L.; Sun, Yinong; Mai, Trieu T. https://doi.org/10.2172/1493402	report	January 2019
Resource adequacy implications of temperature-dependent electric generator availability Murphy, Sinnott; Lavin, Luke; Apt, Jay Applied Energy, Vol. 262 https://doi.org/10.1016/j.apenergy.2019.114424	journal	March 2020
Declining Capacity Credit for Energy Storage and Demand Response With Increased Penetration Parks, Keith IEEE Transactions on Power Systems, Vol. 34, Issue 6 https://doi.org/10.1109/TPWRS.2019.2915805	journal	November 2019
Including operational aspects in the planning of power systems with large amounts of variable generation: A review of modeling approaches Helistö, Niina; Kiviluoma, Juha; Holttinen, Hannele Wiley Interdisciplinary Reviews: Energy and Environment, Vol. 8, Issue 5 https://doi.org/10.1002/wene.341	journal	March 2019
The impact of planning reserve margins in long-term planning models of the electricity sector Reimers, Andrew; Cole, Wesley; Frew, Bethany Energy Policy, Vol. 125 https://doi.org/10.1016/j.enpol.2018.10.025	journal	February 2019

Similar Records

Valuing variable renewable energy for peak demand requirements

Journal Article · Mon Sep 24 00:00:00 EDT 2018 · Energy (Oxford) · OSTI ID:1479875

The Peaking Potential of Long-Duration Energy Storage in the United States Power System

Journal Article · Thu Feb 23 23:00:00 EST 2023 · Journal of Energy Storage · OSTI ID:1962026

Leveraging automotive fuel cells can supply zero-emission peak power in the near-term

Journal Article · Tue Jun 11 00:00:00 EDT 2024 · iScience · OSTI ID:2470636

Related Subjects

43 PARTICLE ACCELERATORS
United States
battery storage
capacity expansion modeling
capital costs
duration
peak demand
peaking capacity

Assessing the Potential of Battery Storage as a Peaking Capacity Resource in the United States

Citation Formats

References (21)

Similar Records

Related Subjects