The profitability of a photovoltaic-integrated battery system is affected by the energy storage energy self-consumption and the presence of subsidies. The battery cost needs to drop significantly to contribute positively to the financial performance of photovoltaic systems in the current UK market.
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.
Although academic analysis finds that business models for energy storage are largely unprofitable, annual deployment of storage capacity is globally on the rise (IEA, 2020). One reason may be generous subsidy support and non-financial drivers like a first-mover advantage (Wood Mackenzie, 2019).
Building upon both strands of work, we propose to characterize business models of energy storage as the combination of an application of storage with the revenue stream earned from the operation and the market role of the investor.
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.
For example, there is a need to evaluate the technical and social benefits provided by energy storage during high-impact and low-probability power system events, i.e. power system resilience that causes cascading outages and blackouts.
*Corresponding author: [email protected] Overview and Prospect of distributed energy storage technology Peng Ye 1,*, Siqi Liu 1, Feng Sun 2, Mingli Zhang 3,and Na Zhang …