Eric Cutter, Ben Haley, Jeremy Hargreaves and Jim Williams of E3 were co-authors on a recent paper “Utility scale energy storage and the need for flexible capacity metrics” to be published in the July issue of Applied Energy. E3 used a mixed integer linear program to optimize the dispatch of three bulk energy storage technologies and a conventional combustion turbine. Each technology was modeled as price-takers, co-optimizing their dispatch first in day-ahead and subsequently in real-time energy and ancillary service markets.
Due to their more flexible operating characteristics, energy storage technologies earn much higher net revenues than CTs and participate more in the DA markets where most ISO procurement occurs. Our results show that the traditional cost of new entry (CONE) is no longer an adequate cost metric when flexibility is of equal or greater concern than peak capacity for long-term planning, as it is in California.