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Role of policy in the development of business models for battery storage deployment: Hawaii case study

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  • Retna Kumar, Aravind
  • Shrimali, Gireesh

Abstract

Hawaii's 100% Renewable Portfolio Standard target has led to rapid growth in renewable generation resources. This has resulted in grid issues given the islanded nature of Hawaii's grid. The state has decided to use battery storage in its grid to address these issues. This motivates us to try to understand the various business models in the state and the minimum set of barriers that must be overcome for its successful deployment. We achieve the former by assessing the projects in the state and identifying the dominant business models. For the latter, we use a barrier-solution framework that posits the minimum set of barriers that must be met for the successful deployment of battery storage business models and we verify it by identifying the role of various policies/drivers in supporting these business models. As a result, we find predominantly three business models in Hawaii: Co-located Front-of-the-Meter, Behind-the-Meter, and Aggregated Behind-the-meter. We also verify that at least one barrier from barrier categories associated with market demand and project economics along with all the barriers related to interconnection and market participation must be addressed for successful deployment of battery storage. Based on these findings, we give recommendations to policymakers seeking to develop a battery storage market.

Suggested Citation

  • Retna Kumar, Aravind & Shrimali, Gireesh, 2021. "Role of policy in the development of business models for battery storage deployment: Hawaii case study," Energy Policy, Elsevier, vol. 159(C).
    • Handle: RePEc:eee:enepol:v:159:y:2021:i:c:s0301421521004717
    DOI: 10.1016/j.enpol.2021.112605
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    References listed on IDEAS

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    1. Sarzynski, Andrea & Larrieu, Jeremy & Shrimali, Gireesh, 2012. "The impact of state financial incentives on market deployment of solar technology," Energy Policy, Elsevier, vol. 46(C), pages 550-557.
    2. Ramteen Sioshansi & Paul Denholm & Thomas Jenkin, 2012. "Market and Policy Barriers to Deployment of Energy Storage," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 2).
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    Cited by:

    1. Michas, Serafeim & Flamos, Alexandros, 2023. "Are there preferable capacity combinations of renewables and storage? Exploratory quantifications along various technology deployment pathways," Energy Policy, Elsevier, vol. 174(C).

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