Grid scale energy storage systems are increasingly being deployed to provide grid operators the flexibility needed to maintain this balance. Energy storage also imparts resiliency and robustness to the grid infrastructure. Over the last few years, there has been a significant increase in the deployment of large scale energy storage systems.
Asset class position and role of energy storage within the smart grid As utility networks are transformed into smart grids, interest in energy storage systems is increasing within the context of aging generation assets, heightening renewable energy penetration, and more distributed sources of generation .
The authors support defining energy storage as a distinct asset class within the electric grid system, supported with effective regulatory and financial policies for development and deployment within a storage-based smart grid system in which storage is placed in a central role.
Smart grid infrastructure requires real time two-way communication and interoperability between components of the power system to optimize grid efficiency by matching loads and distributed generation sources, typically Solar PV with Energy Storage Systems.
Smart grid coupled with energy storage systems increases demand elasticity while also disconnecting the simultaneity of production and consumption. Together, these services balance supply and demand while allowing a continual increase of renewables on the grid.
Currently, grid operators would use strategies, such as back-casting (using historical data to predict economically desirable deployment schedules) to apply energy storage. This strategy does not completely capture arbitrage value due to near time weather and usage variations (only 85%) .