Energy storage services

Abstract This chapter examines how energy storage technologies are used in the electricity markets today and can contribute to power system stability and grid capacity in a future characterized by an ever-increasing share of renewables, leading to new market opportunities. Wholesale energy time-shifting and arbitrage trading is a traditional application for storage in most energy markets. Some storage plants can provide capacity, a function implemented by many regulators across the globe, and benefit from the funding mechanism outlined here. Many storage plants have been built to earn money for providing ancillary services, of which frequency regulation is but one variety. Furthermore, Behind the Meter and Renewable Integration are industrial applications for storage plants to manage power demand and facilitate electricity generation time-shifting outside of the wholesale markets. The chapter concludes with two examples of successful energy storage plant operation in two markets, pumped hydro in wholesale power and PV farm output shifting for a structured PPA of an IPP using a large battery.