Energy storage for the electricity grid : benefits and market potential assessment guide : a study for the DOE Energy Storage Systems Program.

Abstract

This guide describes a high-level, technology-neutral framework for assessing potential benefits from and economic market potential for energy storage used for electric-utility-related applications. The overarching theme addressed is the concept of combining applications/benefits into attractive value propositions that include use of energy storage, possibly including distributed and/or modular systems. Other topics addressed include: high-level estimates of application-specific lifecycle benefit (10 years) in $/kW and maximum market potential (10 years) in MW. Combined, these criteria indicate the economic potential (in $Millions) for a given energy storage application/benefit. The benefits and value propositions characterized provide an important indication of storage system cost targets for system and subsystem developers, vendors, and prospective users. Maximum market potential estimates provide developers, vendors, and energy policymakers with an indication of the upper bound of the potential demand for storage. The combination of the value of an individual benefit (in $/kW) and the corresponding maximum market potential estimate (in MW) indicates the possible impact that storage could have on the U.S. economy.The intended audience for this document includes persons or organizations needing a framework for making first-cut or high-level estimates of benefits for a specific storage project and/or those seeking a high-level estimate of viable price points and/or maximum market potential for their products. Thus, the intended audience includes: electric utility planners, electricity end users, non-utility electric energy and electric services providers, electric utility regulators and policymakers, intermittent renewables advocates and developers, Smart Grid advocates and developers, storage technology and project developers, and energy storage advocates. iv ACKNOWLEDGEMENTS

A review of pumped hydro energy storage development in significant international electricity markets

“…There is also little international agreement on the optimal policies to incentivize investment in PHES, optimal PHES operational strategies or indeed even which entities should be able to own and operate bulk energy storage. This is not necessarily surprising given PHESÕs varied benefits to stakeholders across the electrical system [3], [12] and the range of different markets, international generation mixes and demand profiles that exist.…”

“…In addition, many of these benefits are in the form of Ôavoided costs', and so in order for the storage operator to benefit financially either they must themselves be the bearer of a large enough proportion of these costs or there must exist some mechanism to transfer part of the savings from other market actors to the PHES operator. Licensing conditions in unbundled markets often preclude or restrict the ownership and operation of EES in non-competitive market areas, where many benefits of EES may be available [3]. infrastructure or may relieve conventional start-shut cycles of thermal generators in the grid [45], reducing their operating costs to utilities.…”

“…An extensive report by Denholm et al (2010) [2] for the National Renewable Energy Laboratory, USA concludes that high penetrations of variable generation increases the need for all flexibility options, including energy storage. Eyer and Corey (2010) [3] also conclude that renewables integration is one of the major drivers for energy storage while Beaudin et al (2010) [4] concludes that large scale renewables integration will be a more difficult challenge without energy storage. Steinke et al (2013) [5] investigates a 100% renewable Europe and finds that without grid and storage extensions the necessary backup generation amounts to roughly 40% of the demand.…”

Review of Non-Traditional Optimization Methods for Allocation of Distributed Generation and Energy Storage in Distribution System

“…Deployment and economic value of EES microgrids with high integration of photovoltaic systems and EES [52] According to [45], EES degrades with use during each process of charging and discharging.…”

Correlation Between Energy and Information

“…Sensible heat storage does not concern phase change of storage medium, while the others undergo phase changes. The essential roles of energy storage in emerging new energy structure generally lies in five aspects, including renewable energy integration, electric energy supply, ancillary services, electric power transmission, and end customer applications (Eyer, 2012). For the aspect of renewable energy integration, energy storage can be applied to time-shift renewable energy supply and firm renewable energy capacity.…”