Abstract
Electricity storage systems (ESS) are hailed by many scholars and
practitioners as a key element of the future electricity systems and a
key step toward the transition to renewables . Nonetheless, the global
speed of ESS implementation is relatively slow, and among possible
reasons is the lack of viable business models. We developed an
agent-based model to simulate the behavior of ESS within the Dutch
electricity market. We adopted an exploratory modeling analysis (EMA)
approach to investigate the effects of two specific business models on
the value of ESS from the perspective of both investors and the
government under uncertainties in the ESS technical and economics
characteristics, and uncertainties in market conditions and regulations.
Our results show ESS is not profitable in most scenarios, and generally
wholesale arbitrage business model leads to more profit than reserve
capacity. In addition, ESS economic and technical characteristics play
more important roles in the value of ESS than market conditions, and
carbon pricing.
Original language | English |
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Journal | Solid earth |
Publication status | Submitted - 24-Dec-2021 |
Keywords
- Electrical Engineering and Systems Science - Systems and Control