Investigating techno-economic factors influencing the future value of energy storage technologies

Abstract

The decarbonization of electricity networks, all over the world, has led to an increasing amount of renewable generation in the energy mix. Although renewable generators produce clean and eco-friendly energy, high-penetration levels of renewables could also impose techno-economic challenges to the grid caused by their intermittent and stochastic character, compromising not only the security of electricity networks but also their energy equity. Renewable Energy Generation (REG) Providers can support electricity networks to address these challenges by providing grid-services and applications using different solutions. Energy Storage (ES) Devices are a flexible, yet expensive, smart grid solution able to store amounts of energy at one instant for their later utilization. The main barrier for their widespread proliferation has been, however, the high investment costs required to acquire and install these devices. This research investigates the factors influencing the future value of Energy Storage Technologies. The strategy to tackle this aim is based on designing, developing and implementing a techno-economic framework that allows the assessment of ES devices at planning stage. The framework is comprised of various models to examine diverse factors contributing with the value of ES devices. The simulation results of these framework models determine the maximum revenue that REG Providers can obtain from using ES devices alongside with the ES sizing design to achieve these outcomes. The outcomes of this work show the value for REG providers of using ES devices to address multiple applications and to profit from different energy market, the benefits and drawbacks of applying ES technologies in mandatory and non-mandatory service schemes, the value of using ES devices in mutual operation with renewable generators, the advantages of selecting ES technologies, and the contributions that enhancing the technical and economic features of ES technologies have on the value. The findings from this research can facilitate the widespread deployment of ES devices by providing valuable information to REG providers and investors when considering investments in ES technologies, technology developers to prioritize areas of enhancement in ES device, policy makers and regulators to understand the end to end effects that current regulations might produce on the interested parties and selling companies to expand the range of ES devices and hybrid combinations to offer for customers.