Deployments of grid connected energy storage are rapidly increasing, both as stand-alone and hybrid systems with renewable generation. One of the key advantages of energy storage systems are their inherent flexibility to act as both load and generation, and to provide multiple services (known as value stacking). However, many markets are not currently designed to appropriately value these services.
This study reviews the potential use cases and value stacking opportunities for energy storage for both ISO markets and vertically integrated utilities. Additionally, a review of various markets and their energy storage initiatives is presented to summarize the current valuation of storage. The study is accompanied by an Excel-based tool that can be used to assess the valuation of different use cases for energy storage, as well as the impacts of different system sizes on the business case.
A case study for the valuation of energy storage for a template utility in the USA was conducted, and the results are included in this report.
Energy Storage, Valuation Strategies, Energy Storage Use Cases, ISO/RTO Markets, Value Stacking, Energy Storage Sizing