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The value of hedging against energy storage uncertainties when designing energy parks

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  • Langtry, Max
  • Choudhary, Ruchi

Abstract

Energy storage is needed to match renewable generation to industrial loads in energy parks. However, the future performance of bulk storage technologies is currently highly uncertain. Due to the urgency of decarbonization targets, energy park projects must be designed and begun now. But, as uncertainty in storage performance reduces, a different technology than identified during initial design may turn out cheaper. Enabling flexibility so that designs can be updated as better information becomes available would lower the cost of decarbonizing industry. But having this flexibility is itself costly. This raises the question, “Is it worth it?”

Suggested Citation

  • Langtry, Max & Choudhary, Ruchi, 2025. "The value of hedging against energy storage uncertainties when designing energy parks," Energy, Elsevier, vol. 334(C).
    • Handle: RePEc:eee:energy:v:334:y:2025:i:c:s0360544225032426
    DOI: 10.1016/j.energy.2025.137600
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    References listed on IDEAS

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