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Project information

The economic viability of storage technologies in the power sector of the future: an economic and environmental analysis

S. Wogrin J.P. Chaves J.J. Valentín Vírseda

September 2020 - August 2021

Funding entity Fundación Iberdrola España

Energy storage technologies (and especially batteries) are bound to play a fundamental role in the transition to a decarbonized power system. It will be a key ingredient to integrate a high penetration of renewables and to provide flexibility and services to power and distribution system operators. Among these services is the provision of operating reserves or congestion management. However, under the current regulatory scheme the economic viability of these services is by no means guaranteed in the power system of the future.

The main objective of this project is: first, to quantify the social and environmental welfare generated by storage technologies in highly decarbonized power systems; second, to analyze which of the services are economically viable in a liberalized electricity sector; and finally, establish which are the regulatory measures most adequate to guarantee the economic viability of storage technologies thereby closing the gap between the technically possible and the economically viable.