Energy storage systems
Energy storage systems: improve grid reliability, stability and power quality, while reducing carbon emissions.
We live in an electric era. As urban areas are adopting Smart Cities features such as smart buildings, smart parking, electric vehicle charging, digital citizenship, among others, our need for a solid electric grid is becoming the main priority in order to keep evolving as humans while taking care of the environment. At this point, we can be more than aware that Climate Change is real and that we need to start implementing solutions that have been on the agenda and under study by scientists and researchers for several years.
All our main activities involve electricity. For instance, according to the U.S. Green Building Council buildings account for 72% of electricity consumption. We use electricity every minute of every day on our phones, computers, kitchen appliances, even watches. We need it for heating, lighting, cooking, washing, and nowadays for driving. Electric vehicles have become a major role in the energy transition which has accelerated technology costs reduction.
Countries are in need of solid electric grids with not only new technology but with regulatory innovation, that accelerates the implementation of solutions such as energy storage systems.
To enable a solid electricity system with significant renewable penetration, energy storage systems can play a major role. According to the International Energy Agency, around 180 gigawatts (GW) of new renewable power capacity was added in 2019 worldwide. One of the main concerns of solar or wind energy is intermittency. It is not enough that the operator knows how to manage and dispatch energy but also to have the tools that give flexibility to the system while allowing the users to participate in the market when it is more profitable.
This shows the need to open up power markets for energy storage participation that contemplates all the economic, technical, and policy implications. Also, renewable energy with storage systems can also offer local alternatives to close the electricity access gap in rural areas or developing countries.
Energy storage systems could be a game-changer when it comes to energy arbitrage, ancillary services, and capacity. Batteries can provide not only frequency regulation but also flexible ramping and black-start services to relieve the transmission and distribution networks. As the world temperature keeps rising, the hot months are not only during summer but they have extended to October and even November. The demand of energy for AC is overcoming the grid capacity and batteries can represent a marked difference for the hours with more energy demand. Thus, it would seem like a break for the electricity grid after the hottest months have gone by, then when winter comes most of the houses and buildings need energy for heating purposes.
Technology has overcome our needs. The implications of adopting energy storage systems are clear. Now it is the turn of regulators and policymakers to remove regulatory barriers and enable structures that facilitate the adoption of batteries as well as simplify interconnection processes which ensure fair compensation for all the ones involved.
By having an open and fair market structure, more investors will be aiming to dabble in the installation of these resources and prices will keep dropping and making it more achievable in different regions. In 2018, the World Bank Group (WBG) committed $1 billion for a program to accelerate investments in battery storage for electric power systems in low and middle-income countries.
Not only to fixed energy storage systems but also Vehicle-to-Grid options could play a major role and will empower the end-user when it comes to buying and selling energy when it is more convenient. There is still a long way to go to achieve a carbon-free grid system but we have to start somewhere.
