Energy Storage Costs: Trends and Projections
This discussion aims to elucidate the implications of evolving energy storage costs and their impact on the energy landscape through an energy systems approach.
With the falling costs of solar PV and wind power technologies, the focus is increasingly moving to the next stage of the energy transition and an energy systems approach, where energy storage can help integrate higher shares of solar and wind power.
When the energy storage system lifetime is of 10 years, and the cost is equal to or more than 375 $/kWh, the optimization configuration capacity is 0 MWh, which means no energy storage installation. The annual revenue of the simulated wind-storage system is 12.78 million dollars, which is purely from the sale of wind generation.
The revenue of wind-storage system is composed of wind generation revenue, energy storage income and its cost. With the TOU price, the revenue of the wind-storage system is determined by the total generated electricity and energy storage performance.
As of recently, there is not much research done on how to configure energy storage capacity and control wind power and energy storage to help with frequency regulation. Energy storage, like wind turbines, has the potential to regulate system frequency via extra differential droop control.
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