How do you value energy storage?

Valuing energy storage is often a complex endeavor that must consider different polices, market structures, incentives, and value streams, which can vary significantly across locations. In addition, the economic benefits of an ESS highly depend on its operational characteristics and physical capabilities.

How does large-scale electricity storage affect energy market prices?

In reality, very large electricity storage participating in energy markets has the potential to afect prices. Thus, the results of Phase 4 represent a marginal project beyond the scenario in Phase 3 used to extract system-marginal prices.

What is the value of a storage service?

Value represents the monetary remuneration storage would receive if it is deployed: the value can be tied immediately to the service, or a model can be built to understand how the market value of the service is affected when storage enters the energy mix.

Why is electricity storage valuable?

Electricity storage, when connected at the distribution level, provides various services such as improving power quality and reliability, deferring distribution capacity investment, and supporting integration of distributed renewable energy.

Why is monetary value important for storage technologies?

Being able to associate a monetary value to storage technologies aids utilities and system operators to better plan for their energy mix future (i.e. minimize cost), and aids investors in more accurately calculating returns on their investments.

Does energy storage affect system-marginal prices?

In reality, very large electricity storage participating in energy markets has the potential to affect prices. Thus, the results of Phase 4 represent a marginal project beyond the scenario in Phase 3 used to extract system-marginal prices.