Energy storage compensation mechanism

Do charge power and energy storage capacity investments have O&M costs?

We provide a conversion table in Supplementary Table 5, which can be used to compare a resource with a different asset life or a different cost of capital assumption with the findings reported in this paper. The charge power capacity and energy storage capacity investments were assumed to have no O&M costs associated with them.

What are the performance parameters of energy storage capacity?

Our findings show that energy storage capacity cost and discharge efficiency are the most important performance parameters. Charge/discharge capacity cost and charge efficiency play secondary roles. Energy capacity costs must be ≤US$20 kWh –1 to reduce electricity costs by ≥10%.

Can energy storage technologies help a cost-effective electricity system decarbonization?

Other work has indicated that energy storage technologies with longer storage durations, lower energy storage capacity costs and the ability to decouple power and energy capacity scaling could enable cost-effective electricity system decarbonization with all energy supplied by VRE 8, 9, 10.

Can energy capacity and discharge power capacity be varied independently?

In our exploration of the LDES design space it was assumed that the three scaling dimensions, that is, energy capacity, discharge power capacity and charge power capacity, can be varied independently, even though all three degrees of freedom are not possible for certain technologies.

What is charge/discharge capacity cost & charge efficiency?

Charge/discharge capacity cost and charge efficiency play secondary roles. Energy capacity costs must be ≤US$20 kWh –1 to reduce electricity costs by ≥10%. With current electricity demand profiles, energy capacity costs must be ≤US$1 kWh –1 to fully displace all modelled firm low-carbon generation technologies.

Does power capacity cost affect discharge duration?

Additionally, the duration is largely unaffected by weighted power capacity cost at these levels, but somewhat more affected by RTE. In general, higher energy-to-power ratios and discharge durations occur in both the Northern and Southern Systems when nuclear is the available firm low-carbon technology.