Page 30 - European Energy Innovation - summer 2018 publication

30
Value of Energy Storage
in supporting cost effective
decarbonisation
By Goran Strbac, Professor of Energy Systems, Dr Ioannis Konstantelos and Dr Danny Pudjianto,
Imperial College London
The transition towards low-
carbon electricity systems raises
severe challenges with respect to
increased balancing requirements
and degradation in asset utilisation.
Energy storage (ES) constitutes
a flexible option that can offer
numerous services and facilitate a
cost-effective decarbonisation of our
electricity systems. In the following
sections we highlight and quantify the
value of some key functions that ES
could perform in the future.
WHOLE-SYSTEM BENEFITS OF
ENERGY STORAGE
The WeSIM model, developed at
Imperial College, was applied to
quantify the benefit of installing
20GW of ES to the electricity system
of Great Britain in future scenarios
Savings in annualised GB system cost10.0
(£bn/year)
8.0 l
6.0 4.7
4.0 3.2
2.0
0.0
-2.0 Balance
(100g)
Figure 1: Annual cost savings resulting from the deployment of ES.
Summer 2018 European Energy Innovation
COMMUNICATION
that feature a high penetration of (ii) Investment in cross-border
variable renewables in the year interconnection capacity
2030. Figure 1 shows the mix of cost (I CAPEX).
and benefits across five scenarios;
the first three and latter two (iii) Investment in demand-side
achieving a carbon intensity target response capability
of 100 and 50g/KWh respectively. (DR CAPEX).
Sensitivity studies were also
undertaken around the amount of (iv) System operating cost (OPEX)
photovoltaic and wind generation through energy arbitrage,
that could be installed at the time balancing and frequency
(denoted high PV and high wind). regulation.
The annual net benefit of storage
was found to be between 3.2 and 7.8 (v) Distribution investment (D
billion £/year. The model computed CAPEX) by supporting power
costs and benefits across several management in distribution
components: networks.
(i) Investing in ES (S CAPEX) is the (vi) Transmission investment (T
capital cost of deploying 20GW of CAPEX) by managing north to
ES across the country. south power transfers.
7.8 n DR CAPEX
7.8 l n S CAPEX
High wind n OPEX
(50g) n D CAPEX
n I CAPEX
n T CAPEX
4.2 l n G CAPEX (other)
l n G CAPEX (low-C)
l Total
l
High PV High wind High PV
(100g) (100g) (50g)
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