Understanding the Value of Energy Storage for Power System Reliability and Resilience Applications

Purpose of Review The need for energy storage in the electrical grid has grown in recent years in response to a reduced reliance on fossil fuel baseload power, added intermittent renewable investment, and expanded adoption of distributed energy resources. While the methods and models for valuing sto...

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Bibliographic Details
Published in:Current sustainable/renewable energy reports. 2021-09, Vol.8 (3), p.131-137
Main Authors: Balducci, Patrick, Mongird, Kendall, Weimar, Mark
Format: Article
Language:English
Subjects:
Distributed generation
Economics and Management
Electric power systems
Energy
Energy economics
Energy Policy
Energy resources
Energy sources
Energy Storage
Energy Storage (M Kintner-Meyer
Environmental Science and Engineering
Fossil fuels
Renewable and Green Energy
Resilience
Section Editor
Storage valuation
System reliability
Taxonomy
Topical Collection on Energy Storage
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Summary:Purpose of Review The need for energy storage in the electrical grid has grown in recent years in response to a reduced reliance on fossil fuel baseload power, added intermittent renewable investment, and expanded adoption of distributed energy resources. While the methods and models for valuing storage use cases have advanced significantly in recent years, the value of enhanced resilience remains an open research question. Recent Findings The findings of the recent research indicate that energy storage provides significant value to the grid, with median benefit values for specific use cases ranging from under $10/kW-year for voltage support to roughly $100/kW-year for capacity and frequency regulation services. While the value of lost load is used widely to estimate the benefits of mitigating short-duration outages, reaching as high as $719/kilowatt-year, there is no consensus when it comes to monetizing the value of improving grid resilience. Summary This paper presents a use case taxonomy for energy storage and uses the taxonomy to conduct a meta-analysis of an extensive set of energy storage valuation studies. It reviews several approaches for monetizing reliability and resiliency services and presents a proposed approach for valuing resiliency for energy storage investments.
ISSN:2196-3010
2196-3010
DOI:10.1007/s40518-021-00183-7