A Scenario-Based Simulation Study for Economic Viability and Widespread Impact Analysis of Consumption-Side Energy Storage Systems

This study investigates energy storage within the contexts of production-side and consumption-side energy storage concepts. The theoretical advantages of consumption-side energy storage over production-side systems are initially explored. The analysis is supported by a scenario-based simulation, with results presented to assess the feasibility and applicability of consumption-side energy storage under varying conditions. The simulation examines multiple scenarios, incorporating economic assessments to evaluate the viability of such systems. Additionally, the study explores the broader impact of consumption-side energy storage when adopted by 5 million, 10 million, 20 million, and 40 million residential consumers across separate scenarios. The analysis emphasizes the potential for shifting peak-period energy consumption to nighttime usage and assesses the corresponding reduction in energy generation requirements and transmission line loads, alongside the economic benefits derived from postponing energy infrastructure investments. The study focuses exclusively on residential consumers, with the energy storage systems referred to as residential energy storage systems (RESS). These systems are assumed to be organized and managed by energy provider companies rather than individual consumers. The research also considers the potential costs associated with implementing RESS. The simulation-based findings reveal significant benefits, including reduced reliance on new power plants, decreased risk of transmission line overload, increased utilization of renewable energy resources, financial advantages for both energy providers and consumers, and positive environmental impacts. These results provide valuable insights with implications for shaping future energy policies, particularly in the United States.