Castagneto Gissey, G;
Dodds, PE;
Radcliffe, J;
(2018)
Market and regulatory barriers to electrical energy storage innovation.
Renewable and Sustainable Energy Reviews
, 82
(1)
pp. 781-790.
10.1016/j.rser.2017.09.079.
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Abstract
Energy storage has been identified as a priority technology for innovation. However, the rapidly developing family of storage technologies will find it difficult, under the current regulatory regimes, to compete with conventional generators for the provision of electricity system services, and this is likely to impede innovation. This paper analyses and categorizes 16 investment barriers hindering the near-term deployment of energy storage technologies in electricity markets, which are related to four regulatory and public attitudes barriers. The most important regulatory barrier is the current classification of storage as a generation asset, despite it being unable to provide a positive net flow of electricity, which is used to justify double network usage charges. The merit order design of balancing and ancillary markets hampers the ability of storage technologies to recoup their relatively high capital cost, while capacity markets penalize their limited discharge duration. Network companies are in the best position to realize the system value of storage, but their ownership may only be acceptable if system operation is made independent of network operation. Current initiatives to address these issues include flexible connection agreements and the development of enhanced frequency response and aggregate fast reserve services. However, to remove the identified barriers, a market structure that valued the flexibility offered by storage, viewing it as complementing rather than competing with network and generation assets, would be required.
| Type: | Article |
|---|---|
| Title: | Market and regulatory barriers to electrical energy storage innovation |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1016/j.rser.2017.09.079 |
| Publisher version: | http://doi.org/10.1016/j.rser.2017.09.079 |
| Language: | English |
| Additional information: | © 2017 Elsevier Ltd. All rights reserved. This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions. |
| Keywords: | Energy storage; Electricity market; Market regulation; Regulatory barriers; Electricity policy |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment > Bartlett School Env, Energy and Resources |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10027710 |
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