Financial Performance Comparison of Energy Storage Integration with Hydro, Tidal and Other Variable Renewable Generation
July 13, 2022
Energy Storage: Increased deployment of variable renewable generation (VRG) assets and lower costs of grid-scale battery energy storage system (BESS) have led to increased deployment of hybrid generation and storage systems. Motivation and potential benefit for hybrid systems are not completely understood, but include policy drivers, such as state renewable portfolio standards (RPS) and use of the investment tax credit (ITC) to offset capital costs associated with an energy storage device coupled with a qualifying renewable and increasing need for operational flexibility. The technology required to enable integration is common across VRG resources such as run-of-river (ROR) hydropower, solar, tidal, and wind. Yet, the generation profiles (notably variability) and the uncertainty in forecasting differ considerably.