Assessing the potential of battery storage as a peaking capacity resource in the United States

Storage Futures Study: Economic Potential of Diurnal Storage in the U.S. Power Sector

“…The bottom left panel in Figure 2 shows the national potential of diurnal storage (storage with 12 or fewer hours of duration) to provide peaking capacity in the United States in each year of each scenario, plotted as a function of the PV penetration. This peaking potential for diurnal storage is calculated using the net load profile shape and storage round-trip efficiency as described by Frazier et al (2020) The national peaking potential of storage doubles relative to 2020 levels at about 35% PV penetration.…”

“…Variations in the storage peaking potential between the scenarios is due to factors illustrated in Figure 2, largely PV deployment. The storage peaking potential also shows the requirement of increasingly longer durations as more storage is added, because of the wider net load peaks (Frazier et al, 2020).…”

“…However, this decline in capacity credit can be offset by installing storage devices with longer durations but at higher cost. The shape of the net load profile also changes with investments in VRE, and this changes the techno-economic potential of providing peaking capacity from different durations of storage (Frazier et al, 2020).…”

Capacity credit of storage in long-term planning models and capacity markets

“…4 The orange curves depicted in Figures 2c and 2d show the MREC associated with the illustrative residual demand profile depicted in Figure 2a. Note that the MREC as defined here, represents the same requirement as used by Frazier et al [18] to determine the energy capacity necessary to receive full capacity credit, i.e., a capacity credit equal to one.…”

“…In literature traces of both capacity credit interpretations can be found. Regarding the first interpretation, Frazier et al [18] use a dispatch model to determine the energy capacity requirements of a storage technology in order to reduce the peak demand by an amount equal to the installed power capacity. Furthermore, they use the Regional Energy Deployment System (ReEDS) generation expansion model to determine the cost optimal storage mix consisting of different storage durations for which the capacity credit is equal to one.…”