It is well understood that Energy Storage Technology (EST) (chemical batteries being the most popular technology) needs to be a key player in our energy transition and in our energy future. Like all businesses, each EST will be assessed and require a business case to yield an adequate Return On Investment (ROI) to attract investors.
One of the key challenges in building a business case for EST is the added value on other sectors of the energy value chain. However, the challenge remains in monetising this value. It is seldom a grid operator, or a government authority will provide a payment to asset owners of EST for the value they bring to adjoining energy sectors
One sector that benefits from increased EST capacity is the grid. With demand side increase in EST capacity, the load on grid is reduced and therefore the need to increase grid capacity is deferred or avoided.
Other sectors which benefit from increased EST is the intermittent renewable generators. Considering significant portion of the renewable generation is or will be by solar and wind generation, then the EST on demand and generation side will help with filling the gap for intermittency of renewables.
As shown in the graph, the right EST capacity has can reduce the peak demand during the peak energy prices when the renewable energy generation is unavailable. However, like the renewable technology the business case needs to produce the right ROI.
We are working with our partners, to bring the optimal energy solution to our customer