US Energy Storage Charging Pile

How does energy storage support resource adequacy?

Energy storage can also support resource adequacy by counting toward a system’s total installed capacity. Through capacity markets or other resource adequacy constructs, storage providers are compensated for their potential to provide energy in the future, particularly when the expectation is that demand will be high or supply low.

How does energy storage affect interconnection processes?

Energy storage has a slightly more complex relationship with interconnection processes, not only because it offers to supply electricity that could affect grid stability, but also because storage devices, particularly stand-alone storage, act as demand for grid electricity when charging.

How does storage affect electricity prices and emissions?

Electricity prices drop the most when storage participates in the real-time market, while emissions decrease the most when storage participates in the day-ahead market. However, Qin et al. also find that as total storage capacity increases from 1 to 5 gigawatts (GW), the marginal price and emissions impacts diminish.

What challenges does energy storage face in PJM?

In PJM, energy storage faces significant challenges with interconnection (Jacobs 2024). Unlike in other jurisdictions, storage providers in PJM are not permitted to submit their own operating parameters when making an interconnection request, such as committing not to draw power during peak demand periods, when prices are high.

Why is energy storage a problem in vertically integrated utilities?

One challenge for energy storage proliferation in vertically integrated utilities is the lack of an hourly price signal in a competitive wholesale energy market. Energy arbitrage opportunities become clear when there are large swings in day-ahead and real-time prices that storage devices can capitalize on.

Should storage owners manage their own state of charge?

Some storage owner/operators with extensive experience may prefer to manage their own state of charge, even if they face penalties for not meeting their product obligations. Other, newer entrants may prefer state of charge to be managed by the system operator to reduce penalty risk.