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Economics of stationary electricity storage with various charge and discharge durations

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  • Crampes, Claude
  • Trochet, Jean-Michel

Abstract

Electricity storage encompasses a disparate list of technologies such as pumped-storage hydroelectricity, compressed-air energy storage, chemical batteries, and flywheels. These technologies can provide the electricity system with heterogeneous services of energy transfers across months, weeks, days or intra-days, power transfers for an hour, a few minutes or seconds, and can assist operators in load following, frequency control, and uninterrupted power supply. The paper presents a unified economic analysis of these technologies and services. We underline the role of charge and discharge durations as a criterion for economic segmentation of technologies and services. We highlight the complementary value of storage in electricity systems with a high share of low variable cost and low carbon generation (nuclear, hydro, wind power, solar photovoltaic). We also underline the limited substitution value of storage for generation with high variable cost (gas combustion-turbines or gas-oil motor engines), given the cost of state-of-the-art storage technologies and the current relatively low cost of fossil fuels and low carbon pricing.

Suggested Citation

  • Crampes, Claude & Trochet, Jean-Michel, 2019. "Economics of stationary electricity storage with various charge and discharge durations," TSE Working Papers 19-985, Toulouse School of Economics (TSE).
    • Handle: RePEc:tse:wpaper:33276
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    References listed on IDEAS

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    Cited by:

    1. Giarola, Sara & Molar-Cruz, Anahi & Vaillancourt, Kathleen & Bahn, Olivier & Sarmiento, Luis & Hawkes, Adam & Brown, Maxwell, 2021. "The role of energy storage in the uptake of renewable energy: A model comparison approach," Energy Policy, Elsevier, vol. 151(C).
    2. Stefan Ambec & Claude Crampes, 2019. "Decarbonizing Electricity Generation with Intermittent Sources of Energy," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 6(6), pages 1105-1134.
    3. David Andrés‐Cerezo & Natalia Fabra, 2023. "Storing power: market structure matters," RAND Journal of Economics, RAND Corporation, vol. 54(1), pages 3-53, March.
    4. Muessel, Jarusch & Ruhnau, Oliver & Madlener, Reinhard, 2022. "Modeling Volatility and Flexibility of Electric Vehicles’ Energy Consumption," FCN Working Papers 17/2022, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN), revised 01 May 2023.
    5. Zhang, Fangfang & Fang, Mingkun & Pan, Jiale & Tao, Ran & Zhu, Di & Liu, Weichao & Xiao, Ruofu, 2023. "Guide vane profile optimization of pump-turbine for grid connection performance improvement," Energy, Elsevier, vol. 274(C).
    6. Fabra, Natalia, 2021. "The energy transition: An industrial economics perspective," International Journal of Industrial Organization, Elsevier, vol. 79(C).

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