Feed-in tariffs for promotion of energy storage technologies

Abstract

a b s t r a c tFaster market integration of new energy technologies can be achieved by use of proper support mechanisms that will create favourable market conditions for such technologies. The best examples of support mechanisms presented in the last two decades have been the various schemes for the promotion of renewable energy sources (RES). In the EU, the most successful supporting schemes are feed-in tariffs which have significantly increased utilisation of renewable energy sources in Germany, Spain, Portugal, Denmark and many other EU countries. Despite the successful feed-in tariffs for RES promotion, in many cases RES penetration is limited by power system requirements linked to the intermittency of RES sources and technical capabilities of grids. These problems can be solved by implementation of energy storage technologies like reversible or pumped hydro, hydrogen, batteries or any other technology that can be used for balancing or dump load. In this paper, feed-in tariffs for various energy storage technologies are discussed along with a proposal for their application in more appropriate regions. After successful application on islands and outermost regions, energy storage tariffs should be also applied in mainland power systems. Increased use of energy storage could optimise existing assets on the market.

Analysis of financial mechanisms in support to new pumped hydropower storage projects in Croatia

“…Costs for the case of PHS on the Island of Krk are estimated to be similar to costs in the case of PHS on mainland, according to [19] and they are presented in the Table 11. Costs for the installation of penstocks are taken to be higher than on the mainland, while the efficiency of PHS is set at 0.792 as a completely new PHS is being considered.…”

“…It helps to compute the level of support through FIT by unit of power delivered, provided that the origin of supply is wind-based. The main difference from the mechanism of FIT with Guarantee of Origin (FIT_GO) presented by Krajačić et al in [19] for the case of the islands is that the PHS facility operates in a wide power system, which is moreover interconnected with other countries. Therefore more business oportunities are open to the PHS operator, since a deeper market is targeted and more market segments add to the wholesale market that is concerned by the FIT_GO scheme in the case of the islands.…”

“…This section applies the methodology developed in [19] to the issue of PHS in support of wind power. It helps to compute the level of support through FIT by unit of power delivered, provided that the origin of supply is wind-based.…”

“…Estimation of the costs of the PHS system according to the empirical formulas given in [19,28] can be used only for the first evaluation of pre-feasibility studies and grading of similar projects, as a more detailed analysis should be employed for each proposed PHS system in the same group of used technology. The disadvantage of using empirical formulas proposed for new installations of overall PHS system for calculations of different options within one particular system can be seen in Table 6, where costs of the grid connection have been calculated differently for the units with the same size of pumps and PHTs.…”

“…somewhere The costs for all cases are estimated according to the formulae and assumptions for the PHS cost estimation explained in [19] and they are presented in Table 6. The only difference from the recommended values in [19] are the C 0,P factor, which has been increased to 2000 due to use of the large pumps with variable speed drive, which are not so common on the market, and it is assumed that new penstocks will be constructed without insulation.…”