Business models for Energy Storage Systems

Abstract

Recent commitments to reduce greenhouse gas emissions in the electricity industry associated with the electrification of segments of heat and transport sectors pose significant challenges of unprecedented proportions . The unique features of Energy Storage Systems (ESS) coupled with the flexibility of providing services to multiple sectors of the electricity industry, make it a key technology to tackle current and upcoming challenges in the electricity industry. Although ESS have the potential to support future system integration with large amounts of renewable generation, the potential value that ESS brings to stakeholder s and its associated economics are not well understood to date. In addition, further research is needed on its business model in various markets and system conditions, in particular in the value associated with each service or set of services. In this context, the conducted research has addressed ESS operational aspects when considering a multiple services portfolio provided to various stakeholders and sensitive to market and system conditions. New ESS operational frameworks together with a computationally efficient modelling framework are proposed for a better understanding of ESS business models. The novelty introduced with this work is associated with a multiple service business model for ESS which considers services to distribution network operators, system operators, low capacity value generation and participation in the energy market. In addition, the economic aspects of ESS considering various operating policies for maximum revenue is also investigated and enhances the understanding of ESS to develop appropriate market mechanisms and allow efficient deployment of ESS in the electricity industry.