Energy storage and new energy operation income

Can energy storage recover its own value?

The time-of-use electricity price in the domestic market is often determined by the power grid, and the price difference between peak and valley hours is not large. Energy storage cannot fully recover its own value by arbitrage income in the electric energy market.

How does energy storage make money?

As shown in Table 3, the revenue of front-of-the-meter energy storage in the United States is mainly driven by market competition under a market-based mechanism, with large-scale energy storage actively participating in the market for rapid frequency regulation.

How do I evaluate potential revenue streams from energy storage assets?

Evaluating potential revenue streams from flexible assets, such as energy storage systems, is not simple. Investors need to consider the various value pools available to a storage asset, including wholesale, grid services, and capacity markets, as well as the inherent volatility of the prices of each (see sidebar, “Glossary”).

How can energy storage be profitable?

Where a profitable application of energy storage requires saving of costs or deferral of investments, direct mechanisms, such as subsidies and rebates, will be effective. For applications dependent on price arbitrage, the existence and access to variable market prices are essential.

What are energy storage profits under a dual-pricing system?

Under the current dual-pricing system, energy storage profits mainly include capacity income, electricity income, and ancillary services income, achieved through reducing the demand for thermal power capacity, peak-valley price arbitrage, and providing ancillary services.

What are the operating models of energy storage stations?

Typically, based on differences in regulatory policies and electricity price mechanisms at different times, the operation models of energy storage stations can be categorized into three types: grid integration, leasing, and independent operation.