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Energy storage – What role it plays in the energy transition

image credit: Energy storage plays a role in the energy transition
Michael Khachiki's picture
Co-founder Atlantic Power Exchange

Michael is Co-founder of www.AtlanticX.co developing a platform for P2P energy trading in distributed energy resources sector. To find out more go to: www.AtlanticX.co

  • Member since 2019
  • 33 items added with 25,051 views
  • Apr 20, 2020
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It is well understood that Energy Storage Technology (EST) needs to be a key player in our energy transition and in our energy future. Like all businesses, each EST will be assessed and require a business case to yield an adequate Return On Investment (ROI) to attract investors.

One of the key challenges in building a business case for EST is the added value on other sectors of the energy value chain. However, the challenge remains in monetising this value. It is seldom a grid operator, or a government authority will provide a payment to asset owners of EST for the value they bring to adjoining energy sectors.

One sector that benefits from increased EST capacity is the grid. With the demand side, an increase in EST capacity, will reduce the load on the grid and therefore the need to increase grid capacity is deferred or avoided.

Other sectors which benefit from increased EST is the intermittent renewable generators. Considering the significant portion of the renewable generation is or will be by solar and wind generation, the EST on-demand and generation side, helps with filling the gap for intermittency of renewables.

As shown in the graph, the right EST capacity can reduce the peak demand during the peak energy prices when the renewable energy generation is unavailable. However, like the renewable technology the business case needs to produce the right ROI.

Atlantic Power Exchange is building a platform that helps with monetizing EST, helping the business case for more investment in energy storage through peer to peer energy trading.

What is your view on energy storage and the role it plays in the energy transition?

 

Michael Khachiki's picture
Thank Michael for the Post!
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Matt Chester's picture
Matt Chester on Apr 20, 2020

How do you respond to pushback that for energy storage to be able to transform the grid it would require scale (both in terms of capital and land area) that make it difficult to imagine? Is it a matter of waiting for an improved tech to come to commercialization, or is it more strategy that will overcome these hurdles?

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