Energy storage technologies have been recognized as an important component of future power systems due to their capacity for enhancing the electricity grid's flexibility, reliability, and efficiency. They are accepted as a key answer to numerous challenges facing power markets, including decarbonization, price volatility, and supply security.
These technologies convert electrical energy to various forms of storable energy. For mechanical storage, we focus on flywheels, pumped hydro, and compressed air energy storage (CAES). Thermal storage refers to molten salt technology. Chemical storage technologies include supercapacitors, batteries, and hydrogen.
Integrating energy storage within power system models offers the potential to enhance operational cost-effectiveness, scheduling efficiency, environmental outcomes, and the integration of renewable energy sources.
Cardenas et al. (2021) delve into the optimization of storage technologies across different time intervals, highlighting the necessity of various technologies to maintain system health and minimize total electricity costs .
It is imperative to acknowledge the pivotal role of energy storage in shaping the future of power systems. Energy storage technologies have gained significant traction owing to their potential to enhance flexibility, reliability, and efficiency within the power sector.
Although electricity storage technologies could provide useful flexibility to modern power systems with substantial shares of power generation from intermittent renewables, investment opportunities and their profitability have remained ambiguous.