Energy Storage for Grid Power: Policy Arguments Based on Technical, Economic, and Environmental Analysis

Abstract

Renewable energy has been increasing as the demand for cleaner energy increases. The introduction of renewable energy into the power grid has however introduced supply and demand discontinuities due to the intermittency of renewables. Energy storage implemented alongside renewables aids in the management of energy as it allows for load shifting of the intermittent energy to optimize its use and better match the supply and demand profiles. Energy storage can come in many forms such as batteries or Power-to-gas systems. Batteries offer small scale solutions which can be cost effective if repurposed electric vehicle batteries are used. Hydrogen can also be produced using excess electricity which can then be stored or injected into the natural gas grid. Modeling through a MATLAB model of different scales of storage for both batteries and hydrogen demonstrate the economic viability of these projects as well as the environmental impact. Policies are also examined and recommendations made including: ending the Feed-in Tariff program, providing preferential electricity pricing to energy storage projects, and providing an equivalent ethanol subsidy to hydrogen of 79.5 cents per kilogram.