Our Energy Systems Modelling Director Maria Kannavou spoke at the prestigious Energy Storage Global Conference 2022 organised by EASE – The European Association for Storage of Energy on the role of modelling tools in a changing energy system.
Drawing on E3M’s work on a number of important impact assessments and recent studies, Maria’s intervention focused on the economic assessment of storage investment. Key points of her speech include the following:
📌Increasing volumes of storage are needed to support growing RES and replace natural gas when planning is done from a system’s, thus social, perspective. From a storage plant economics perspective, however, the margin from whole sale markets decreases when storage capacity increases, as storage tends to diminish price differentials between valleys and peak load (thus reducing arbitraging)
📌This creates a discrepancy between social and private optimum, a typical case of positive externalities where regulation is then needed
📌Under high storage volumes and high RES, the yearly variance of system marginal prices is huge, while the hourly variation of prices on an average day is very low: this is the opportunity for seasonal storage provided that adequate storage technology is available. In fact, the energy system of the future where RES will dominate will need massive seasonal storage.
Find out more about the conference: https://ease-storage.eu/easeevents/energy-storage-global-conference/