Why do we need a long-term energy storage solution?

As renewable energy capacity grows, we must identify and expand better ways of storing this energy, to avoid waste and deal with demand spikes. Utility companies and other providers are increasingly focused on developing effective long-term energy storage solutions.

What is the value of energy storage?

1. Introduction The value of energy storage has been well catalogued for the power sector, where storage can provide a range of services (e.g., load shifting, frequency regulation, generation backup, transmission support) to the power grid and generate revenues for investors .

Should investors invest in energy storage technology?

For those who decide to invest, limited and declining revenue prospects could lead to competing strategies of energy storage investment and operation, where investors opt for technologies with specific technical attributes in the competitive market.

Can energy storage be a strategic investment under competition?

These market dynamics serve as a motivation for this study to understand strategic investments in energy storage under competition, taking into account storage impact on the market price. Our work uses energy arbitrage as a test case with the intent to explore additional services in the future.

How does energy storage work?

First, energy storage usually has a low operation cost since no fuel is directly consumed , . Then, the profit-seeking investors will always charge the storage at the lowest prices during the day. To get non-negative revenue, the investor’s cost from charge must be no higher than the market revenue from the discharge (at high prices).

Do utility companies really need long-term energy storage solutions?

Utility companies and other providers are increasingly focused on developing effective long-term energy storage solutions. Governments and corporations alike have set aggressive sustainability goals that they must hit over the next decade to reduce the effects of climate change.