The economic value of storage in renewable power systems - the case of thermal energy storage in concentrating solar plants
AbstractIn this article we analyze the value of thermal energy storages in concentrated solar plants depending on the electricity generation mix. To determine the value from a system integrated view we model the whole electricty generation market of the Iberian Peninsula. Key ﬁndings for thermal energy storage units in concentrated solar plants include an increasing value in electricity systems with higher shares of ﬂuctuating renewable generation and a potentially signiﬁcant role in a transformation to a primarily renewable based electricity system. Due to the relatively high investment costs concentrated solar power plants with or without thermal energy storages are not cost eﬃcient in todays electricity markets. However, expected cost reductions due to learning curve eﬀects and higher ﬂuctuating renewable generation may lead to a comparative cost advantage of concentrated solar power plants with thermal energy storages compared to other renewable technologies.
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Bibliographic InfoPaper provided by Energiewirtschaftliches Institut an der Universitaet zu Koeln in its series EWI Working Papers with number 2011-8.
Length: 26 pages
Date of creation: 23 Aug 2011
Date of revision:
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Fluctuating renewables; value of storage; concentrated solar power; power plant optimization;
Find related papers by JEL classification:
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-08-29 (All new papers)
- NEP-CWA-2011-08-29 (Central & Western Asia)
- NEP-ENE-2011-08-29 (Energy Economics)
- NEP-ENV-2011-08-29 (Environmental Economics)
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