An Economic Analysis of Energy Storage Systems Participating in Resilient Power Markets

Abstract

Energy storage systems (ESS) are becoming increasingly important as high shares of renewable energy generation causes increased variability and intermittency of the power supply. With more renewable energy production, energy markets are presented with possible overgeneration due to renewable sources being incompatible with electric loads and storage capacity. ESSs are viewed as underpinning technology which can support the energy system resilience in these areas. However, with various ESS technology options, configurations and performance characteristics it is difficult to compare the installed economic competitiveness across different technologies and desired applications in a standardized format. This work provides a novel economic assessment framework for evaluating the levelized cost of storage, annualized life-cycle cost and expected annual revenues of 10 grid-based and hydrogen-based ESSs based on their application potential.