Unlocking the hidden (capacity) value in energy storage

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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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Meet the author
  1. Kenneth Collison, Vice President, Energy

    Ken is an expert in electricity market analysis, helping stakeholders improve the planning, operation, and development of the electric sector.  View bio

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