Frontiers in Energy Research (Nov 2020)
Development of Long-Duration Energy Storage Projects in Electric Power Systems in the United States: A Survey of Factors Which Are Shaping the Market
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.
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