The value of Electricity Storage

A new study on the value of electricity storage has been published by Energinet and EA Energy Analyses and will supplement the technology aspects of the recent Technology data Catalogue on Energy Storage

Dear user of the Technology data Catalogues.

Our project team is currently looking to expanding our advisory board, which is consisting of representatives from universities, trade associations, public authorities and consultancies. The advisory board’s purpose is among others to ensure that the Technology data Catalogues content remains relevant for its users and target groups. If this could be of interest to you, more information is available on the Danish Energy Agency's webpage (in Danish).

Creating value from storage of electricity

A new study on the value of electricity storage in the context of the danish power system is available now. Electric storage has experienced a growing interest in the last years due to a general cost drop, its manifold potential applications in the energy sector and a wide array of technological options. The attractiveness of electric storage is motivated by its ability to provide multiple grid-related and market services and potentially combine them into a single business case.

The study highlights the feature of electricity storage technologies and studies the suitability of electricity storage to create value from flexibility and system services. Additionally this study supplements the technology aspects in the recent Technology data Catalogue on Energy Storage. Batteries is the type of storage with the most far-reaching applications; among them Li-ion technologies have gained remarkable attention due to their advanced technology readiness level and a sizeable cost reduction in the past years. The value and opportunities most relevant to the installation of electricity storage can be articulated in the following areas:

  1. FCR (Primary reserves)
  2. Arbitrage in day-ahead and intra-day markets and,
  3. aFRR (secondary reserves)

In general, electricity storage is found to be most competitive in markets providing small volumes but high value products with asymmetrical bids and/or a short temporal scope.

 

FCR

The market most suited for electricity storage is FCR (primary reserve), while other markets such as the day-ahead spot market and intraday market may contribute to the income of a storage unit. It is possible to obtain a positive business case from the FCR markets (primary reserve markets) alone, assuming that the asset obtains contracts in all years, as summarised in the table below.

Contact

About this newsletter

This newsletter is created in collaboration between the Danish Energy Agency and Energinet Electricity System Operator and will be used to publish news on Technology Data.

We have received several requests on creating a platform from where we can share information about our progress, highlighting recent updates and other relevant news about our Technology Data.

Being the first volume of its kind, we have been looking forward to this release with anticipation and hope our readers will recieve it with an equal measure of excitement.

Going forward, the newsletter will be published on a quarterly basis with information on updates completed year-to-date.


SUBSCRIBE TO NEWS

Receive notifications directly by e-mail