The characteristics of electricity storage, renewables and markets. (May 2017)

• Record Type: Journal Article
• Authors: Waterson, Michael
• Is Part Of: Energy policy. Volume 104(2017)
• Page Start: 466
• Page End: 473
• Publication Date: 2017-05
• Subjects: Electricity storage -- Inter-temporal arbitrage -- Renewable generation -- Capacity auctions; Energy policy -- Periodicals; Politique énergétique -- Périodiques; Electronic journals; 333.79
• DOI: 10.1016/j.enpol.2017.01.025
• Languages: English
• ISSNs: 0301-4215

Abstract

Abstract: This paper accepts the widespread view that as electricity generation systems transition towards a greater proportion of renewables provision, there will be an increasing need for storage facilities. However, it differs from most such studies in contrasting the private incentives of a storage operator with the public desirability of bulk storage. A key factor in the context of a market such as Britain, where renewable energy largely means wind generation, is the nature of wind generation itself. The problem of wind's high variance and intermittent nature is explored. It is argued that not only is there a missing money and a missing market issue in providing secure energy supplies, there is also a missing informational issue. A key opportunity for new storage is participation in a capacity market, if the setting is right. Highlights: Considers both the public and private incentives for developing energy storage. Consideration of the intermittency of wind as a factor influencing storage. Arbitrage analysed alongside other earning streams. Impact of market design on extent of storage.