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

Abstract

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.

Authors:
 [1];  [2];  [2]
  1. The Ohio State Univ., Columbus, OH (United States)
  2. National Renewable Energy Lab. (NREL), Golden, CO (United States)
Publication Date:
Research Org.:
National Renewable Energy Lab. (NREL), Golden, CO (United States)
Sponsoring Org.:
USDOE Office of Energy Efficiency and Renewable Energy (EERE)
OSTI Identifier:
1353433
Grant/Contract Number:  
AC36-08GO28308
Resource Type:
Accepted Manuscript
Journal Name:
Energy Economics
Additional Journal Information:
Journal Volume: 33; Journal Issue: 1; Journal ID: ISSN 0140-9883
Publisher:
Elsevier
Country of Publication:
United States
Language:
English
Subject:
25 ENERGY STORAGE; energy storage; arbitrage; natural gas prices; investment decisions

Citation Formats

Sioshansi, Ramteen, Denholm, Paul, and Jenkin, Thomas. A comparative analysis of the value of pure and hybrid electricity storage. United States: N. p., 2010. Web. doi:10.1016/j.eneco.2010.06.004.
Sioshansi, Ramteen, Denholm, Paul, & Jenkin, Thomas. A comparative analysis of the value of pure and hybrid electricity storage. United States. doi:10.1016/j.eneco.2010.06.004.
Sioshansi, Ramteen, Denholm, Paul, and Jenkin, Thomas. Sun . "A comparative analysis of the value of pure and hybrid electricity storage". United States. doi:10.1016/j.eneco.2010.06.004. https://www.osti.gov/servlets/purl/1353433.
@article{osti_1353433,
title = {A comparative analysis of the value of pure and hybrid electricity storage},
author = {Sioshansi, Ramteen and Denholm, Paul and Jenkin, Thomas},
abstractNote = {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.},
doi = {10.1016/j.eneco.2010.06.004},
journal = {Energy Economics},
number = 1,
volume = 33,
place = {United States},
year = {2010},
month = {6}
}

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