National Assessment of Energy Storage for Grid Balancing and Arbitrage

M. Kintner-Meyer, P. Balducci, C. Jin, T. Nguyen, M. Elizondo, V. Viswanathan, Y. Zhang
Pacific Northwest National Laboratory, US

Keywords: storage, grid analysis, balancing services, arbitrage, cost of storage, life-cycle analysis


To provide a better understanding to industry, a National Assessment of Energy Storage for Grid Balancing and Arbitrage was performed to estimate the market size for stationary energy storage systems for two specific applications: 1) balancing services necessary to accommodate the growing variations in the generation supply from renewable energy resources, and 2) energy arbitrage that provides congestion management strategies and the potential to lower the cost of delivering electricity. There are many other benefits and values that energy storage can furnish to grid operations. However, they are either very location-specific or very difficult to assess without highly detailed grid modeling capability requiring highly detailed data. This presentation provides insights into regional market sizes for balancing services for a 20% renewable portfolio standard for the WECC, ERCOT, and the Eastern Interconnect. The cost target of energy storage in terms of $/kWh will be discussed for energy storage to be economical viable as an energy product for energy arbitrage. The analysis is performed for 22 NERC sub-regions.