What role does energy storage play in a smart grid?

Asset class position and role of energy storage within the smart grid As utility networks are transformed into smart grids, interest in energy storage systems is increasing within the context of aging generation assets, heightening renewable energy penetration, and more distributed sources of generation .

Should energy storage be a central asset class?

Therefore, energy storage as a distinct asset class in a central role will increase the value of storage investments while enhancing the operation of the smart grid. To further this goal, storage requires policy support.

Is energy storage a distinct asset class within the electric grid system?

The authors support defining energy storage as a distinct asset class within the electric grid system, supported with effective regulatory and financial policies for development and deployment within a storage-based smart grid system in which storage is placed in a central role.

Are energy storage systems a poorly defined asset class?

Next, we identify the limits to energy storage systems as a poorly defined asset class within the electric grid value chain, and demonstrate how creating a new asset class for storage will both enhance the value of storage and also provide significant benefits to the operation of the smart grid.

What are the benefits of a new energy storage asset class?

Another key benefit of the new storage asset class is that more revenue leads to more investment. Because energy storage is no longer restricted to supplementing other asset classes, it can derive revenue from the services it provides to each.

What is an energy storage asset class?

DNV KEMA,3 an energy and environmental consulting firm, provides an excellent starting point by proposing the following definition for an energy storage asset class : 1. Has the ability to store (receive and supply back) a definable amount of energy (joules or gigajoules) to an electrical network or electrical grid 2.