Lai, CS and Locatelli, G orcid.org/0000-0001-9986-2249 (2021) Are energy policies for supporting low-carbon power generation killing energy storage? Journal of Cleaner Production, 280 (Part 1). 124626. ISSN 0959-6526
Abstract
This paper explores the impacts of energy policies for supporting low-carbon infrastructure on the economic and financial performance of energy storage when coupled with a generator. The study sets in the UK context and the unit of analysis is the generator connected with energy storage. An analytical method is derived to assess the impact of policy schemes for low-carbon infrastructure on energy storage. The case study of energy storage systems coupled with a Small Modular nuclear Reactor (SMR) is quantitatively investigated in three scenarios: 1. SMR-only (the baseline); 2. SMR with thermal energy storage; and 3. SMR with Lithium-ion battery. For the strike price at 100 £/MWh, the net present value for scenarios 2 and 3 reduces from 562 M£ to 379 M£ and from 376 M£ to -1144 M£, respectively, when the energy storage capacity increases from 100 MWh to 1 GWh. As the net present value reduces with increased energy storage capacity (when coupled with generation), this work shows that low-carbon incentives are, unintentionally, barriers to the development of energy storage due to: (A) current generator incentives give a favourable return on investment and energy storage would diminish it; (B) energy storage cannot participate in generator only incentives.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2020 The Authors. Published by Elsevier Ltd. This is an open access article under the terms of the Creative Commons Attribution 4.0 International (CC BY 4.0) (https://creativecommons.org/licenses/by/4.0/) |
Keywords: | Energy storage; Low-carbon power incentives; Contract for difference; Generation integrated energy storage |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Engineering & Physical Sciences (Leeds) > School of Civil Engineering (Leeds) |
Funding Information: | Funder Grant number EPSRC (Engineering and Physical Sciences Research Council) EP/P022049/1 |
Depositing User: | Symplectic Publications |
Date Deposited: | 14 Oct 2020 11:09 |
Last Modified: | 21 Sep 2021 22:53 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.jclepro.2020.124626 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:166618 |