Full Title: World Energy Resources – E-storage: Shifting from Cost to Value
Author(s): World Energy Council
Publisher(s): World Energy Council
Publication Date: 01/2016
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Following rapid cost reductions and significant improvements in capacity and efficiency, the global energy sector is captivated by the promise of deploying energy storage alongside renewables. Storage is promoted as the “game-changer” which could contribute to solving the volatility challenge of wind and solar electricity generation. Whilst there is plenty of visionary thinking, business models are not always fully understood and there are not many studies on cost data.
This report seeks to analyse what the cost base of an array of storage technologies really means. A key conclusion is that a narrow focus on levelised cost alone can be misleading. Throughout the cost modelling process, the same issues repeatedly emerged, namely the importance of defining the business model under consideration and how the storage plant was being operated. Although the report focused on cost, it led to a number of insights on the value of storage from which certain recommendations can be made.