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Intermittency and the social role of storage

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  • Waterson, Michael
  • Trujillo- Baute, Elisa
  • Giulietti, Monica

Abstract

Our paper examines the social benefit of energy storage in terms of smoothing the intermittent output of wind in Britain in the context of a significant wind generation presence. The resultant price smoothing creates benefits as follows: grid scale storage has a price suppressing effect, decreasing the probability of remaining in the high price and high volatility regime during peak hours, and it increases the probability of remaining in the normal regime during off-peak hours. Under the assumption that the effects on market prices are passed through to final consumers, and ignoring the facility construction costs, our results strongly suggest that there are clear potential social advantages resulting from deploying grid-level storage in the presence of intermittent wind generation.

Suggested Citation

  • Waterson, Michael & Trujillo- Baute, Elisa & Giulietti, Monica, 2022. "Intermittency and the social role of storage," Energy Policy, Elsevier, vol. 165(C).
    • Handle: RePEc:eee:enepol:v:165:y:2022:i:c:s0301421522001720
    DOI: 10.1016/j.enpol.2022.112947
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    References listed on IDEAS

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    Cited by:

    1. Diana Carolina Guío-Pérez & Guillermo Martinez Castilla & David Pallarès & Henrik Thunman & Filip Johnsson, 2023. "Thermochemical Energy Storage with Integrated District Heat Production–A Case Study of Sweden," Energies, MDPI, vol. 16(3), pages 1-26, January.

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