Abstract
Energy storage is a topic of increasing interest for purposes of decarbonization of the electric power system, and in particular for addressing integration of increasing quantities of variable energy resources, such as wind and solar PV. A growing focus of such assessment is the need for new long-duration storage, in addition to existing pumped storage hydropower. A limitation of much of the analysis on this topic to date has been limited consideration of how the economic value of long-duration storage will be affected by the large deployments of short-duration energy storage, primarily lithium-ion batteries, which are currently receiving state policy support (through mandates or financial incentives), or otherwise expected to enter the markets. This article reviews the literature on this topic, updates some simulation results, and helps advance the methodological questions which need to be addressed in subsequent simulation studies. The article examines each of the major components of potential long-duration storage value, including energy time-shift, different ancillary services, and resource adequacy (RA) capacity. It also draws attention to how state policies, resource planning methods, and market structure and regulatory factors can influence selection of different types of energy storage, whether short or long duration.
Highlights
AND OVERVIEWEnergy storage is currently expected to play a significant role in future decarbonized electric power systems in the United States and other countries
Many storage valuation papers have conducted this simple calculation, and using StorageVET to evaluate these California independent system operator (ISO) (CAISO) prices we find that it reduces the perfect foresight solution by 5–10%
For the reasons described in this article, and with some dependence on the technology, new long-duration energy storage may face policy and commercial disadvantages in the 5–10 years when compared to new short-duration storage, which is currently being provided by the growing number of deployed and planned lithium-ion battery projects, including hybrid projects
Summary
Energy storage is currently expected to play a significant role in future decarbonized electric power systems in the United States and other countries. When comparing different types of long-duration storage technologies, there are both differences and similarities when evaluating market potential. In the United States, this is due in large part to a focused effort in wholesale market design over the past decade to facilitate entry of smaller, short-duration storage devices, due to the high initial costs of these resources. The seventh section examines how different policies are driving the market for short- and long-duration storage, and including different types of long-duration storage This is followed by conclusions and researchable topics
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
