Evaluating Energy Market Opportunities for Advanced Storage Systems with Improved Roundtrip Efficiency

Abstract

Integration of energy storage resources into electricity markets face multiple barriers including high capital costs, sitting difficulties, significant energy penalties due to roundtrip efficiency, and the lack of market structures that appropriately reflect the value of storage. Capital and operating costs could be reduced with advanced storage systems consisting of modular multilevel series/parallel converters (M2SPC) that allow the switching of battery pack modules dynamically in both series and parallel. This paper explores the economic, reliability and environmental outcomes of adding conventional and advanced energy storage systems in a hypothetical de-regulated electricity market. Results indicate that while large battery storage dispatch has a positive effect on system benefits, incremental improvements in battery efficiency have a small effect reducing the costs of meeting hourly demand.