A comparative analysis of the value of pure and hybrid electricity storage

Journal Article · 13 June 2010 · Energy Economics

DOI: https://doi.org/10.1016/j.eneco.2010.06.004 · OSTI ID:1353433

Sioshansi, Ramteen ^[1]; Denholm, Paul ^[2]; Jenkin, Thomas ^[2]

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1. The Ohio State Univ., Columbus, OH (United States); The Ohio State University
2. National Renewable Energy Lab. (NREL), Golden, CO (United States)

Significant natural gas and electricity price variation and volatility, especially during the past few years, raise questions about understanding the value drivers behind electricity storage. The impact of these drivers for pure storage (such as pumped hydroelectric storage) and compressed air energy storage (CAES) are different and in this paper we explore these differences in operation and net revenue over a variety of timescales. We also consider the arbitrage value that is attainable in practice and explain why simple forecasting techniques based on historical data will generally be less successful for CAES. Furthermore, the breakeven cost of storage and how this can depend on regulatory treatment of storage and market structure is also considered.

• Research Organization: National Renewable Energy Lab. (NREL), Golden, CO (United States)
• Sponsoring Organization: USDOE Office of Energy Efficiency and Renewable Energy (EERE)
• Grant/Contract Number: AC36-08GO28308
• OSTI ID: 1353433
• Journal Information: Energy Economics, Journal Name: Energy Economics Journal Issue: 1 Vol. 33; ISSN 0140-9883
• Publisher: ElsevierCopyright Statement
• Country of Publication: United States
• Language: English