A review of energy storage systems in electricity markets.
Zejneba Topalović 1 , Reinhard Haas, Amela Ajanović, Marlene Sayer
Energy Economics Group, Vienna University of Technology, E-mail: zejneba.topalovic@student.tuwien.ac.at
Abstract:
Recent events in power systems: negative electricity prices, high fluctuations in the electricity market, and positive progress of a variable generation, have influenced the need for energy storage systems. These systems were first used as pumped hydro plants, but in recent years new types of storage have been developing, as the technology costs decrease and renewables installations increase. Policymakers defined a roadmap for reaching net-zero emissions by 2050., ensuring clean energy transition which has been questioned since the COVID-19 outbreak. At the beginning of the global pandemic, with the government restrictions and industrial setbacks, a decrease in CO2 emissions occurred for a short period. Demand drop and high supply of variable generation in the grids have been challenging for power systems operators. Since the global energy sector has been under disruptions and has influenced high socio-economic changes, a growing number of countries pledge net-zero emissions agreement, towards sustainable and clean energy development. With the Paris Agreement's goals for limiting global warming to 1,5 degrees Celsius, many countries are already going towards carbon neutrality ambitious targets. These goals are opening a set of new technologies, business opportunities, thus improving the economy. Measures for the implementation of the set goals and a higher share of renewable generation are already taken, showing that energy storage systems are becoming new emerging technology for balancing power grids. With projections of new solar by 2050. it is expected for the storage market to rise and balance possible price fluctuations. This paper presents a review of the up-to-date research on storage technologies, different grid applications, but also economic assessment.
A brief history of storage development is given, along with an overview of the technologies in the whole chain that explains their impact on total energy demand. There is a review of storage systems applications divided into different categories. Since there is obscure information about the costs of implementing storage systems, we provide a detailed review of cost analysis and feasibility of storage projects. This paper presents an energy storage review using the method of narrative. Collected up-to-date research on energy storage technologies, applications, environmental and economic assessment is published in a wide range of articles with high impact factors. Since, there is obscure research on relatively new technology such as energy storage, and especially their costs, global databases are used. The main contribution of this paper is a presentation of the current feasibility of these systems for investors and power operators and other market players. Finally, we present prospects derived from the presented review.
,Keywords: energy storage technologies, costs, storage feasibility, electricity market
1 Jungautor, +38762914462, zejneba.topalovic@student.tuwien.ac.at
1 Introduction
1.1 Motivation
IEA has built a roadmap for reaching net-zero emissions by 2050, ensuring clean energy transition in the energy sector. COVID-19 global pandemic has put energy transition into the perspective since it stopped green energy progress at the beginning. A setback of the industrial consumption and high variable generation in the grids have left clean energy transitions in the grey area, where it was predicted that after the pandemic, high industrial generation would postpone climate mitigation policies. (International Energy Agency, 2020) examines different scenarios of future pandemic solving with a focus on the next ten years and their impact on the energy sector. A rapid decline in renewable generation costs has boosted energy transformation with 9,6 GW installed capacity in 2019. (Irena, 2020). Since the global energy sector has been under disruptions and has influenced high socio-economic changes, a growing number of countries pledge net-zero emissions agreement, towards sustainable and clean energy development. According to the new IEA report(IEA, 2020), China and India are going to lead energy growth for the next year. India is facing extreme changes in the last 10 years, first due to extreme electrification and second due to high solar generation. Impact of lockdown measures, increase of renewable generation and drop in energy demand impact future need for long–term storage. Roadmap for India (India energy outlook report (IEA), 2015) renewable and storage development is an example for other countries, showing rapid changes in global emission mitigation. With the Paris Agreement's goals for limiting global warming to 1,5 degrees Celsius, many countries are already going towards carbon neutrality ambitious targets. These goals are opening a set of new technologies, business opportunities and are improving the economy. Measures were taken for the implementation of the set goals, and a higher share of renewable generation. Some countries have more than a 30% share of variable generation, which sometimes exceeds energy demand. Solar photovoltaics and onshore wind are dominating, attracting 46% and 29%, respectively, of global renewable energy investments, as seen in Figures 1,2, and 3. With projections of new solar by 2050., it is expected for the storage market to rise and balance possible price fluctuations.
Figure 1 Installed capacity trends of solar technology, source: (IRENA and CPI (2020), Global Landscape of Renewable Energy Finance, 2020)
0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
In stal le d cap acit y [M W]
PV solar thermal
Figure 2 Installed capacity trends of wind technology, source: (IRENA and CPI (2020), Global Landscape of Renewable Energy Finance, 2020)
Figure 3 Annual financial commitments in renewable energy, source: (IRENA and CPI (2020), Global Landscape of Renewable Energy Finance, 2020)
1.2 Core objective
Energy storage as new technology has been used recently more in the light of flexibility needs.
As seen in Figure 4, pumped hydro storage is still leading with an installed storage capacity of 182 GW. According to collected data from World Energy Database [DOE], other storage technologies are still lagging behind historical installations of pumped hydro storage.
Nevertheless, energy storage systems are considered new emerging technology for adding flexibility to power grids. As (Irena, 2020) predicts, stationary storage (excluding EVs) would need to increase from 30 GWh today to 9000 GWh by 2050. These figures should be achieved through proper sizing and installing energy storage.
0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
In sta lle d cap acity [ MW]
wind onshore wind offshore
1.3 Major literature
Energy storage has been recently revitalized subject, but it still lacks information. (Olabi et al., 2021) and (Koohi-Fayegh and Rosen, 2020) reviewed energy storage systems by mainly focusing on the technology and application. Hence, this review paper covers the gap by proposing an energy storage overview alongside economic criteria.
1.4 The organization of the paper
This paper is organized as follows: Section 2 gives a brief history of the storage development.
Section 4 gives an overview of the technologies, while Section 5 provides comprehensive reviews of the economic assessment. Section 6 shows environmental aspects. Following is Section 7 where the impact of energy policies is described, while the paper concludes with Section 8.
2 History of storage
First storage systems by some researchers (Danila, 2015) date back from 2200 years ago, considering archeological findings of a clay pot near Baghdad. Experiments showed that this ancient battery could produce 1.5 to 2 Volts, but scientists are still divided on this topic since it wasn't figured for what it was used. Later on, in the 19 th century, Volta experimented with copper and zinc and discovered Voltaic pile which led to series of discoveries of electrolysis and batteries that we know of today. Following this, Plante discovered a rechargeable Lead- acid battery. Throughout the century, batteries developed and were being used in large-scale systems, as Faure and Sellon improved batteries by placing the positive and negative electrodes in the spiral. Parallel development of the superconductors led to the possibility of
Pumped hydro storage
97%
Pumped hydro storage Compressed Air Energy Storage Electro-chemical
Electro- mechanical Hydrogen Storage
Lead-Carbon
Liquid Air Energy Storage Lithium Ion Battery
Compress ed Air Energy Storage
0%
Electro- chemical
7%
Electro- mechanic
al 39%
Hydrogen Storage
1%
Lead- Carbon
0% Liquid Air
Energy Storage
0%
Lithium Ion Battery
15%
Thermal Storage
38%
Figure 5 Installed energy storage capacities without pumped hydro storage [DOE]
Figure 4 Installed energy storage capacities
globally[DOE]
storing quantities of electricity in the magnetic fields (Vyas and Dondapati, 2020), (Salama and Vokony, 2020). Figure 6 illustrates the historical development of battery storage systems.
Figure 6 History of battery storage development
Pumped hydro storage systems started developing in the early 1900s, but now are the most used storage technology because of their characteristics to store a large amount of energy.
The system works on the principle of two reservoirs and the potential energy of water. When demand is high, electricity is produced by storing the water from the upper to the lower reservoir. At night, when demand is low, electricity from the grid is used to pump back up water, as seen in Figure 6. This system balances and adjusts the demand/supply, thus providing the stability of the power grids. Hence, pumped hydro storage is the most used storage technology with installed capacities of 181 GW globally [DOE]. The development of renewables technologies, their higher integration in power grids has led to a revitalization of already installed pumped hydro storage plants. Overcoming challenges in operating power grids with high shares of renewables is possible with storage technologies, especially ones with the application as bulk energy storage systems.
Figure 7 Pumped hydro storage principle [ EASE 2021]
Nevertheless, bulk energy storage systems, such as pumped hydro storage, development of
the batteries have continued, especially considering a variety of their application. With the
technical revolution in the late 1970s and the new emergence of the telephone and computer
technology, storage developed beside batteries, as supercapacitors were discovered. A
detailed description of the technology is given by (Chang and Hang Hu, 2018). An Exponential
increase in electric and hybrid vehicles influenced new research, but supercapacitors are still
behind the main competitor for these applications: Lithium-ion batteries. (Miao et al.,
2019),(Fang et al., 2020) and (Zubi et al., 2018) describe the progress and current state of Lithium-ion batteries.
3 Literature review
In this paper, three main research topics are in focus. Firstly, we consider the energy storage system's technical characteristics and application, then focus on the feasibility and economic assessment of these systems. Thirdly, we provide a comprehensive analysis of the flexibility and ancillary services of storage. Figure 8 presents collected information about storage systems in this paper and the main storage division concerning material, application, and future applications and RES development most important: feasibility.
Figure 8 Storage classification
Storage systems were first used as pumped-hydro plants (Al-hadhrami and Alam,
2015),(Barbour et al., 2016)(Hunt et al., 2020). During the peak hours, water potential was
used to generate electricity. When demand decreases in night hours, water was pumped back
up the hill, so it was reused the other day again for the electricity. This system was useful in
coordination with nuclear and fossil power plants which were non- dispatchable. Regardless
of pumped hydro storage capacity, geographical requirements are still a major constraint. In recent years, distributed generation has been influencing other storage technologies. Off-grid application of batteries in remote areas, together with solar generation is changing electricity market operation (Telaretti and Dusonchet, 2017). Depending on the renewable energy system application, battery energy storage system sizing methodology is chosen (Yang et al., 2018).
As there is high potential in using hybrid energy storage systems, some researchers found energy costs to be lower in comparison to single storage cases (Münderlein et al., 2020)(Javed et al., 2020). Pumped hydro storage power plants have been revitalized in recent years due to the flexibility mechanism of operating in the electricity market. Some countries' main plan for reaching targeted renewable shares, is investing in pumped hydro storage systems (Blakers et al., 2018). The profitability study shows a reduction in reserve capacity and investments in peaking units in Europe, as the storage capacities increase (Dallinger et al., 2019). The contribution of energy storage is caused by additional charging to replace generators in the merit order, capacity utilization and for renewable-induced systems (Soini, Parra and Patel, 2020). In recent literature, there has been a lack of energy storage economic parameters. Most of the literature is about dispatching and modeling renewable generation with energy storage (Santos et al., 2021),(Mohandes et al., 2021), (Mazzoni et al., 2019) or using mobile storage systems for unbalanced distribution grids (Nazemi et al., 2021). Alongside planning renewable generation, energy storage capacities must be considered and analyzed(Wu et al., 2021), as well as operational energy storage strategy (Habibi et al., 2020). Energy storage overview (Olabi et al., 2021) underlines increase in predictability method for RES, but as well economic perspective for further storage developments as in (AL Shaqsi, Sopian and Al-Hinai, 2020).
(Martin and Rice, 2021) make an analysis of future generation mix in Australia for minimizing
future outages risks and network failures using energy storage estimated increase of 19 GW
by 2041. Energy storage reviews (AL Shaqsi, Sopian and Al-Hinai, 2020) and (Das et al., 2018)
main concern is the capacity of energy storage, which lack proper description given from
production companies. In this paper wide range of literature is analyzed and collected. The
most valuable information about technical and economical parameters is provided,
respectively in Table 1 and Table 2. With all data collected, Table 3 gives an overview of all
possible storage applications.
Table 1 Energy storage characteristics
- - - 75-85 s-min 40-60 (>13000) (Das et al. , 2018)
0.1-0.2 0.2-2 0.2-2 70-80 >0.5x104
0.5-1.5 0.5-1.5 0.5-1.5 70-85 >1000
0.01-0.10 0.5-1.3 0.3-1.3 65-90
- - 0.1-0.4 65-80 min 30-50 (Olabi et al. , 2021)
5-1000 - - - 70-89 1-15min 20-40(>13000) (Das et al. , 2018)
0.2-0.6 2-6 41-75
0.5-2 3-6 30-60
0.04-10 0.4-20 3-60 60-90
- - 3.2-5.5 70-73 - 30-40 (Olabi et al. , 2021)
- - 93-95 <4ms-s 15(>100000) (Das et al. , 2018)
5000 20-80 5-30 80-90 2x104-107
1000-2000 20-80 10-30 90-95 >2x104
40-2000 0.3-400 5-200 70-96
- - 5-100 85 - 20 (Olabi et al. , 2021)
- - - 85-90 20ms-s 5-15 (1000-20000) (Das et al. , 2018)
1300-10000 200-400 60-200 85-98 500-10000
1500-10000 200-500 75-200 90-97 1000-10000
60-800 90-500 30-300 70-100 250-10000
0.1-50 - - 80-150 78-88 - 14-16 (Olabi et al. , 2021)
- - - 60-65 ms 10-20(2000-3500) (Das et al. , 2018)
75-700 15-80 15-40 60-80 1500-3000
80-600 60-150 50-75 60-70
40-140 15-150 10-80 60-90 300-10000
- - 30-50 72 - 13-20 (Olabi et al. , 2021)
- - - 70-90 5-10ms 3-15(2000) (Das et al. , 2018)
90-700 50-80 30-45 75-90 250-1500
10-400 50-80 30-50 70-80 500-1000
10-400 25-90 10-50 60-90 300-3000
- - 30-50 75-80 - 15 (Olabi et al. , 2021)
- - - 80-90 1ms 10-15(2500-4500) (Das et al. , 2018)
120-160 150-300 100-250 70-85 2500-4500
140-180 150-250 150-240 2500
1-50 150-350 100-240 65-90 1000-4500
- - 100-175 75-87 - 12-20 (Olabi et al. , 2021)
- - - 85 <1s 5-10(12000+) (Das et al. , 2018)
0.5-2 20-70 15-50 60-75
<2 16-33 10-30 75-85 >1.2x104
10-30 10-50 60-90 800-1.6x104
- - - (Olabi et al. , 2021)
- - - 25-58 <1s 5-20+(1000-20000+) (Das et al. , 2018)
>500 500-3000 800-10000 20-50 >1000
100-370 150-250 75-90
0.1-50 - - - 35-42 - 15 (Olabi et al. , 2021)
0-0.3 - - - 90-95 8ms 20+(>100000) (Das et al. , 2018)
2600 6 75-80
0.2-2.5 0.5-5 95-97 >2x104
300-4000 0.2-14 0.3-75 80-99
0.05-0.25 - - 2-69 80-95 - 20 (Olabi et al. , 2021)
0-0.03 - - - 90-95 8ms 20+(>100000) (Das et al. , 2018)
40,000-120,000 10-20 1-15 85-98
>100,000 10-30 2.5-15 90-97
(Olabi et al. , 2021) -
-
-
-
-
-
-
-
-
-
-
-
- 15-4500 1-35 - 65-99
- 0-58.8
-
-
- 0.05-34 0.05-10
0.05-0.0534 0.03-03
-
(Koohi-Fayegh and Rosen, 2020)
(Koohi-Fayegh and Rosen, 2020)
(Koohi-Fayegh and Rosen, 2020)
(Koohi-Fayegh and Rosen, 2020)
(Koohi-Fayegh and Rosen, 2020)
(Koohi-Fayegh and Rosen, 2020) Lead -acid
Natrium Sulfur
Vanadium redox
Hydrogen Fuel Cell
Superconducting magnetic
Super capacitor
-
- 0-40
(Koohi-Fayegh and Rosen, 2020)
(Koohi-Fayegh and Rosen, 2020)
(Koohi-Fayegh and Rosen, 2020)
(Koohi-Fayegh and Rosen, 2020)
(Koohi-Fayegh and Rosen, 2020) Pumped hydro storage
Compressed Air Energy Storage
Flywheel
Lithium-ion Battery
Nickel-Cadmium
10-5000
10-1000 -
50-300 -
-
-
- 0.1-20
0.1-20 0-100
0-40
50
Type of storage Power Range MW Power density (voumetric) (kW/m3)
Energy density (voumetric) ( kWh/m3)
Energy density (mass) (kWh/kg)
Cycle efficicency
%
Response
time Lifetime(cycles) References
-6x
-3x
-