Can energy storage be a strategic investment under competition?

These market dynamics serve as a motivation for this study to understand strategic investments in energy storage under competition, taking into account storage impact on the market price. Our work uses energy arbitrage as a test case with the intent to explore additional services in the future.

Are stationary battery storage systems possible in Germany?

The development of stationary battery storage systems in Germany–status 2020 Economic assessment of a price-maker energy storage facility in the Alberta electricity market Bilevel arbitrage potential evaluation for grid-scale energy storage considering wind power and LMP smoothing effect

Should investors invest in energy storage technology?

For those who decide to invest, limited and declining revenue prospects could lead to competing strategies of energy storage investment and operation, where investors opt for technologies with specific technical attributes in the competitive market.

What is the future of battery storage?

The US is leading the global race in the development of battery storage, with demand for BESS expected to increase sixfold by the end of the decade. Capacity is expected to almost double in 2024 to more than 30 GW, as development of energy storage projects accelerates in line with the rapid growth of variable solar and wind assets.

What is a battery energy storage system?

Battery energy storage systems (BESS), which enable utility companies and grid operators to access pools of surplus renewable energy on demand that would otherwise be wasted, play a central role in the global energy transition.

Is energy storage a price-maker?

When it comes to accounting for energy storage as a price-maker, some studies (e.g., , , , ) only consider the operation of the energy storage asset without accounting for the decision and cost of the storage energy- and power-capacity investment itself.