Utility-owned storage plays a crucial role in reducing renewable curtailment by leveraging the strategic placement and operation of storage assets to mitigate grid congestion and manage energy supply and demand more effectively. Here’s how this works:
Utility-Owned Storage Advantages
- Strategic Siting and Operation: Utilities can site storage assets in areas prone to renewable curtailment, allowing them to capture excess energy that would otherwise be wasted due to grid congestion or lack of demand.
- Real-Time Control: Utilities can operate storage assets in real-time, maximizing benefits to the transmission system. This allows for dynamic adjustment based on current grid conditions rather than relying solely on market signals.
- Stacking Value Streams: Utilities can reserve battery capacity to address multiple use cases, such as congestion mitigation and curtailment reduction, thereby optimizing system performance.
Mechanism of Curtailment Reduction
- Charging During Excess Generation: When renewable energy production exceeds demand or grid capacity, utility-owned storage can charge during these times, storing the surplus energy.
- Dispatching During Peak Demand: The stored energy is then dispatched back into the grid when demand is high, reducing reliance on non-renewable sources and lowering the need for curtailment.
Economic and Environmental Benefits
- Increased Renewable Utilization: By reducing curtailment, utilities can maximize the use of renewable energy, enhancing grid stability and reducing the environmental impact of energy production.
- Economic Efficiency: While storage can be costly, reducing curtailment helps maintain project profitability by ensuring that more generated energy can be sold or used when needed.
Examples and Case Studies
- New York: Studies have shown that utility-owned storage can significantly reduce curtailment in regions like New York by strategically managing energy storage to offset congestion and optimize renewable output.
- California: Similarly, in California, battery storage has helped mitigate curtailment by shifting excess solar energy from periods of low demand to peak hours, though the state still faces challenges in fully eliminating curtailment.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-utility-owned-storage-help-reduce-renewable-curtailment/
