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Understanding the Value of Energy Storage for Power System Reliability and Resilience Applications

Journal Article · · Current Sustainable/Renewable Energy Reports
Abstract Purpose of Review

The need for energy storage in the electrical grid has grown in recent years in response to a reduced reliance on fossil fuel baseload power, added intermittent renewable investment, and expanded adoption of distributed energy resources. While the methods and models for valuing storage use cases have advanced significantly in recent years, the value of enhanced resilience remains an open research question.

Recent Findings

The findings of the recent research indicate that energy storage provides significant value to the grid, with median benefit values for specific use cases ranging from under $10/kW-year for voltage support to roughly $100/kW-year for capacity and frequency regulation services. While the value of lost load is used widely to estimate the benefits of mitigating short-duration outages, reaching as high as $719/kilowatt-year, there is no consensus when it comes to monetizing the value of improving grid resilience.

Summary

This paper presents a use case taxonomy for energy storage and uses the taxonomy to conduct a meta-analysis of an extensive set of energy storage valuation studies. It reviews several approaches for monetizing reliability and resiliency services and presents a proposed approach for valuing resiliency for energy storage investments.

Sponsoring Organization:
USDOE
Grant/Contract Number:
AC05-76RL01830
OSTI ID:
1798528
Alternate ID(s):
OSTI ID: 1813057
OSTI ID: 1818127
Journal Information:
Current Sustainable/Renewable Energy Reports, Journal Name: Current Sustainable/Renewable Energy Reports Journal Issue: 3 Vol. 8; ISSN 2196-3010
Publisher:
Springer Science + Business MediaCopyright Statement
Country of Publication:
Germany
Language:
English

References (2)

Stochastic valuation of energy storage in wholesale power markets journal May 2017
Assigning value to energy storage systems at multiple points in an electrical grid journal January 2018

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