Unlocking the Hidden (Capacity) Value in Energy Storage


Capacity value of energy limited resource should not be overly discounted. One-hour energy storage in ERCOT provides 46% capacity value, while a four-hour storage provides 99% capacity value. Recognizing the capacity contribution of energy storage improves resource adequacy planning. In this paper, we outline a methodology based on traditional resource adequacy planning, which can capture the capacity value of storage systems by explicitly taking into account their operational characteristics.

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