The main gaps in recognizing the value of Long-Duration Energy Storage (LDES) in utility planning include the following:
1. Insufficient Incorporation in Grid Planning and Modeling
Current grid planning, power market models, and energy modeling activities largely fail to capture the economic and environmental benefits unique to LDES. Most models and planning frameworks do not adequately represent LDES capabilities, leading to underestimation of its value for resource adequacy and grid reliability. The reliance on traditional metrics like Loss of Load Expectation (LOLE) rather than more granular metrics such as Expected Unserved Energy (EUE) and Loss of Load Hours (LOLH) limits how well LDES contributions can be identified and credited.
2. Lack of Dedicated Policies and Regulatory Support
Few states have specific carveouts or policies for LDES in electricity portfolio standards, climate plans, or integrated resource plans (IRPs). This regulatory gap, combined with high first-of-a-kind deployment costs, makes it difficult for utilities and Public Utility Commissions (PUCs) to economically justify LDES investments.
3. Challenges in Utility Resource Planning and Modeling Tools
Most capacity expansion and integrated resource planning models use simplified representations of the grid, such as aggregated or typical days, to keep run times manageable. However, LDES’s key value lies in covering multi-day or seasonal reliability events, which are only visible in full-year or more granular modeling. This mismatch means current models routinely undervalue LDES solutions.
4. Limited Data and Standardized Modeling Practices
Utilities often lack publicly available, standardized data on LDES technical and cost specifications needed for robust modeling. In addition, there is a need for recommended modeling practices and guidelines to ensure that the full value of LDES is captured in planning processes.
5. Difficulty Demonstrating Economic Case Amidst Evolving Technologies
With first-of-a-kind costs still high and evolving, utilities face challenges in making strong economic cases for LDES deployment compared to more established storage or generation technologies.
In summary, the main gaps stem from inadequate modeling frameworks and metrics, insufficient policy support, lack of standardized data and modeling guidelines, and economic uncertainties. Addressing these gaps through improved modeling approaches, updated regulatory frameworks, and better data availability is essential for fully recognizing and leveraging the value of LDES in utility planning.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-main-gaps-in-recognizing-the-value-of-ldes-in-utility-planning/
