Economic Benefits of Long-Duration Energy Storage
- Reduced Curtailment and Increased Renewable Integration:
- LDES helps utilize excess energy generated by renewables, reducing curtailment (when renewable energy is wasted due to grid constraints). This maximizes the value of renewable energy sources.
- Price Arbitrage:
- By storing energy when it is cheap (e.g., during off-peak hours or when renewable generation is high) and releasing it when it is valuable (e.g., during peak demand or when generation is low), LDES facilities can realize significant revenue through price arbitrage.
- Grid Resilience and Stability:
- LDES enhances grid resilience by providing firm capacity and managing transmission congestion. It helps maintain grid stability, reducing the need for costly peaking plants and other backup systems.
- Deferred Infrastructure Investments:
- By managing energy supply and demand more effectively, LDES can defer the need for new transmission and distribution infrastructure investments, saving billions in construction costs.
- Increased Efficiency and Cost Savings:
- LDES improves generator efficiency and reduces startup and shutdown costs associated with traditional power plants. It can offer up to $540 billion in annual global savings when scaled appropriately.
- Ancillary Services:
- Providing ancillary services such as frequency regulation and spinning reserve can generate additional revenue streams for LDES operators.
- Carbon Emission Reductions:
- By supporting greater integration of renewable energy sources, LDES helps reduce reliance on fossil fuels, leading to significant carbon emissions reductions and contributing to net-zero goals.
Overall, the economic benefits of LDES are substantial and critical for achieving a sustainable and reliable energy future.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-economic-benefits-of-deploying-long-duration-energy-storage/
