Combined economic and technological evaluation of battery energy storage for grid applications

Batteries will play critical roles in modernizing energy grids, as they will allow a greater penetration of renewable energy and perform applications that better match supply with demand. Applying storage technology is a business decision that requires potential revenues to be accurately estimated t...

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Bibliographic Details
Published in:Nature energy 2019-01, Vol.4 (1), p.42-50
Main Authors: Davies, D. M., Verde, M. G., Mnyshenko, O., Chen, Y. R., Rajeev, R., Meng, Y. S., Elliott, G.
Format: Article
Language:English
Subjects:
639/4077/4079/891
706/4066/4068
Constraint modelling
Economics
Economics and Management
Electric power grids
Energy
Energy Policy
Energy Storage
Energy Systems
Modernization
Renewable and Green Energy
Renewable energy
Revenue
Technology assessment
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Summary:Batteries will play critical roles in modernizing energy grids, as they will allow a greater penetration of renewable energy and perform applications that better match supply with demand. Applying storage technology is a business decision that requires potential revenues to be accurately estimated to determine the economic viability, which requires models that consider market rules and prices, along with battery and application-specific constraints. Here we use models of storage connected to the California energy grid and show how the application-governed duty cycles (power profiles) of different applications affect different battery chemistries. We reveal critical trade-offs between battery chemistries and the applicability of energy content in the battery and show that accurate revenue measurement can only be achieved if a realistic battery operation in each application is considered. The findings in this work could call for a paradigm shift in how the true economic values of energy storage devices could be assessed. Large variations exist in the revenue prediction of grid-scale storage due to uncertainties in operations of storage technologies. Here the authors integrate the economic evaluation of energy storage with key battery parameters for a realistic measure of revenues.
ISSN:2058-7546
2058-7546
DOI:10.1038/s41560-018-0290-1