NEWS: Energy and environmental policy
Valuing Energy Storage as a Flexible Resource

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June 5, 2014

E3 wrote a paper “Valuing Energy Storage as a Flexible Resource” that was submitted as comments in the CPUC Proceeding A. 14-04-006 summarizing key issues of the potential benefits of energy storage for consideration in the applications of PG&E, SCE and SDG&E for approval of their respective energy storage procurement framework and programs.

The paper uses results from the E3 study “Investigating a Higher Renewables Portfolio Standard (RPS) in California” and subsequent REFLEX modeling work to demonstrate why curtailment of renewable generation is a substantial and quantifiable benefit that should be considered in valuing the relative benefits of both short- and long-duration energy storage. The overarching themes of this report are that a cost-effectiveness framework for energy storage should: a) include not just existing markets and avoided costs, but also the future benefits of reducing renewable curtailment under higher RPS levels, b) describe how the relative costs, benefits and tradeoffs of short- vs. long-duration solutions will be quantified and evaluated and c) include system level and portfolio costs and benefits.

filed under: Energy and environmental policy