Show me the money! Profitability of energy storage systems in low-carbon power systems

Sonja Wogrin, Diego A. Tejada-Arango, Stefanos Delikaraoglou, Audun Botterud

Research output: Chapter in Book/Report/Conference proceedingConference paperpeer-review

Abstract

Energy storage systems are bound to play a critical role in the transition towards a decarbonized power sector with high shares of variable renewables. However, an open question is whether all storage capacity that is needed will be profitable under the current market paradigm. In this paper, we assess how the profitability of energy storage systems is affected by the increasing penetration of variable renewables. Moreover, we discuss the potentially detrimental effects of strategic storage capacity withholding on system costs, renewable penetration and the profitability of all technologies.

Original languageEnglish
Title of host publication2021 IEEE Madrid PowerTech
PublisherInstitute of Electrical and Electronics Engineers
ISBN (Electronic)9781665435970
DOIs
Publication statusPublished - 28 Jun 2021
Externally publishedYes
Event2021 IEEE Madrid PowerTech, PowerTech 2021 - Madrid, Spain
Duration: 28 Jun 20212 Jul 2021

Conference

Conference2021 IEEE Madrid PowerTech, PowerTech 2021
Country/TerritorySpain
CityMadrid
Period28/06/212/07/21

Keywords

  • Energy storage systems
  • expansion planning
  • profitability
  • renewable penetration

ASJC Scopus subject areas

  • Electrical and Electronic Engineering
  • Artificial Intelligence
  • Energy Engineering and Power Technology
  • Renewable Energy, Sustainability and the Environment

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