Electric storage technologies for the future power system — An economic assessment

The paper analyses different electric storage (ES) technologies for power system applications from an economic perspective. After giving a brief overview on different technology options, a model-based assessment is performed. The model simulates optimal market-based storage operation in order to maximize revenues from energy arbitrage. The results indicate that pump hydro storages (PHS) are the best option from an economic perspective. However, the results show that revenues from storage operation have decreased in the last years. Currently, not even PHS would generate sufficient revenue to be a profitable investment. That points out, that even though demand for storage capacity is expected to increase with higher shares of renewable electricity (RES-E) in the future, there are no economic incentives to extend storage capacities at the current framework conditions.