Long-Duration Energy Storage—A Literature Review on the Link between Variable Renewable Energy Penetration and Market Creation

Abstract

The relationship between a region’s dependency on variable renewable energy (VRE) and the viability of long-duration energy storage (LDES) technologies is recognised through various electricity grid modelling efforts in the contemporary literature. Numerous studies state a specific VRE penetration level in total electricity generation as an indicator of the emergence of an LDES market. However, there is considerable variability across studies when comparing VRE penetration levels in conjunction with LDES technology utilisation, and significant diversity exists in electricity grid modelling approaches. This review aims to highlight these inconsistencies by offering an overview of disparate findings and dissecting the influencing variables. Sixteen parameters are identified from reviewed studies, complemented by an additional five recognised through in-depth analysis. This comprehensive examination not only sheds light on critical aspects overlooked in previous reviews, requiring further investigation, but also provides novel insights into the complexity of this correlation, elevating the understanding of LDES market creation by unravelling the factors that influence the technology adoption across various contexts. Furthermore, it provides clarity in LDES research terminology by rectifying ambiguous language in the existing literature. Altogether, seven databases were explored to produce a trustworthy foundation for the study.