Additionally, the investment threshold is significantly lower under the single strategy than it is under the continuous strategy. Therefore, direct investment in future energy storage technologies is the best choice when new technologies are already available.
Energy storage has the potential to play a crucial role in the future of the power sector. However, significant research and development efforts are needed to improve storage technologies, reduce costs, and increase efficiency.
By solving for the investment threshold and investment opportunity value under various uncertainties and different strategies, the optimal investment scheme can be obtained. Finally, to verify the validity of the model, it is applied to investment decisions for energy storage participation in China's peaking auxiliary service market.
This study assumes that, in the face of multiple uncertainties in policy, technological innovation, and the market, firms can choose to invest in existing energy storage technologies or future improved versions of the technology to generate revenue.
Continued research in storage valuation models and their time resolution will also contribute to maximizing the benefits of energy storage investments. Overall, energy storage presents a promising alternative and a transformative factor in the investment decision processes of the power sector. 6. Conclusions
Specifically, with an expected growth rate of 0, when the volatility rises from 0.1 to 0.2, the critical value of the investment in energy storage technology rises from 0.0757 USD/kWh to 0.1019 USD/kWh, which is more pronounced. In addition, the value of the investment option also rises from 72.8 USD to 147.7 USD, which is also more apparent.