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Market and Policy Barriers to Deployment of Energy Storage

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  • Ramteen Sioshansi
  • Paul Denholm
  • Thomas Jenkin

Abstract

There has recently been resurgent interest in energy storage, due to a number of developments in the electricity industry. Despite this interest, very little storage, beyond some small demonstration projects, has been deployed recently. While technical issues, such as cost, device efficiency, and other technical characteristics are often listed as barriers to storage, there are a number of non-technical and policy-related issues. This paper surveys some of these main barriers and proposes some potential research and policy steps that can help address them. While the discussion is focused on the United States, a number of the findings and observations may be more broadly applicable.

Suggested Citation

  • 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).
    • Handle: RePEc:aen:eeepjl:1_2_a04
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    2. Zora Luburić & Hrvoje Pandžić & Tomislav Plavšić, 2017. "Assessment of Energy Storage Operation in Vertically Integrated Utility and Electricity Market," Energies, MDPI, vol. 10(5), pages 1-16, May.
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    5. Schill, Wolf-Peter, 2014. "Residual Load, Renewable Surplus Generation and Storage Requirements in Germany," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 73, pages 65-79.
    6. Javier L'opez Prol & Wolf-Peter Schill, 2020. "The Economics of Variable Renewables and Electricity Storage," Papers 2012.15371, arXiv.org.
    7. Daniel Muñoz-Álvarez & Eilyan Bitar, 2017. "Financial storage rights in electric power networks," Journal of Regulatory Economics, Springer, vol. 52(1), pages 1-23, August.
    8. Gustavo Adolfo Gómez-Ramírez & Carlos Meza & Gonzalo Mora-Jiménez & José Rodrigo Rojas Morales & Luis García-Santander, 2023. "The Central American Power System: Achievements, Challenges, and Opportunities for a Green Transition," Energies, MDPI, vol. 16(11), pages 1-20, May.
    9. Martin, Nigel & Rice, John, 2021. "Power outages, climate events and renewable energy: Reviewing energy storage policy and regulatory options for Australia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
    10. Todd, Iain & McCauley, Darren, 2021. "Assessing policy barriers to the energy transition in South Africa," Energy Policy, Elsevier, vol. 158(C).
    11. Komali Yenneti & Riya Rahiman & Adishree Panda & Gloria Pignatta, 2019. "Smart Energy Management Policy in India—A Review," Energies, MDPI, vol. 12(17), pages 1-16, August.
    12. Després, Jacques & Mima, Silvana & Kitous, Alban & Criqui, Patrick & Hadjsaid, Nouredine & Noirot, Isabelle, 2017. "Storage as a flexibility option in power systems with high shares of variable renewable energy sources: a POLES-based analysis," Energy Economics, Elsevier, vol. 64(C), pages 638-650.
    13. Boffino, Luigi & Conejo, Antonio J. & Sioshansi, Ramteen & Oggioni, Giorgia, 2019. "A two-stage stochastic optimization planning framework to decarbonize deeply electric power systems," Energy Economics, Elsevier, vol. 84(C).
    14. 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).
    15. Resch, Matthias & Bühler, Jochen & Klausen, Mira & Sumper, Andreas, 2017. "Impact of operation strategies of large scale battery systems on distribution grid planning in Germany," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 1042-1063.
    16. Kost, Christoph & Flath, Christoph M. & Möst, Dominik, 2013. "Concentrating solar power plant investment and operation decisions under different price and support mechanisms," Energy Policy, Elsevier, vol. 61(C), pages 238-248.
    17. Eric Borden & Wolf-Peter Schill, 2013. "Policy Efforts for the Development of Storage Technologies in the U.S. and Germany," Discussion Papers of DIW Berlin 1328, DIW Berlin, German Institute for Economic Research.
    18. Katrin Schmitz & Bjarne Steffen & Christoph Weber, 2013. "Incentive or impediment? The impact of capacity mechanisms on storage plants," RSCAS Working Papers 2013/46, European University Institute.
    19. Jonas Egerer and Wolf-Peter Schill, 2014. "Power System Transformation toward Renewables: Investment Scenarios for Germany," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 2).

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