Intermittency and the social role of storage

Giulietti, Monica; Trujillo- Baute, Elisa; Waterson, Michael

Abstract

Our paper examines the social benefit of energy storage in terms of smoothing the intermittent output of wind in Britain in the context of a significant wind generation presence. The resultant price smoothing creates benefits as follows: grid scale storage has a price suppressing effect, decreasing the probability of remaining in the high price and high volatility regime during peak hours, and it increases the probability of remaining in the normal regime during off-peak hours. Under the assumption that the effects on market prices are passed through to final consumers, and ignoring the facility construction costs, our results strongly suggest that there are clear potential social advantages resulting from deploying grid-level storage in the presence of intermittent wind generation.

Citation

Giulietti, M., Trujillo- Baute, E., & Waterson, M. (2022). Intermittency and the social role of storage. Energy Policy, 165, Article 112947. https://doi.org/10.1016/j.enpol.2022.112947

• Journal Article Type: Article
• Acceptance Date: Mar 24, 2022
• Online Publication Date: Apr 8, 2022
• Publication Date: 2022-06
• Deposit Date: Jan 21, 2025
• Publicly Available Date: Feb 5, 2025
• Print ISSN: 0301-4215
• Electronic ISSN: 0301-4215
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 165
• Article Number: 112947
• DOI: https://doi.org/10.1016/j.enpol.2022.112947
• Public URL: https://nottingham-repository.worktribe.com/output/44423794
• Publisher URL: https://www.sciencedirect.com/science/article/pii/S0301421522001720?via%3Dihub