Investors in renewables are evaluating energy storage as a potential solution to intermittency challenges for grid operation and stability.
A new analysis of business cases for grid-scale energy storage highlights opportunities to maximize multiple revenue streams and optimize projects.
Adequate grid connections and grid-scale energy storage is needed to increase investor confidence and help Asia Pacific (APAC) to deliver reliable, affordable and clean energy. This is one of the findings from a new report which explores the opportunities, challenges that will impact the emergence of utility-scale, grid-connected energy storage systems (ESS) in the region.
The DNV report, ‘Energy Storage in the Asia Pacific Region, reveals that although investors recognize the opportunities that the widespread deployment of variable renewable energy sources (VRES) will bring to APAC, many are concerned about being left with underperforming or stranded assets, because of inadequate storage solutions. Grid-connected energy storage systems can help to safeguard operations and the economics of intermittent generation from wind and solar.
The report finds that although Battery Energy Storage Systems (BESS) will become increasingly commercially viable through technological advances and cost-learning effects, regulation and government policies will ultimately prove decisive in whether commercial opportunities are available for energy storage to provide valuable services to grids.
“We expect utility-scale, grid-connected ESS to emerge across APAC within five years. But operating storage is significantly different from operating fossil or VRES power plants and requires different strategies for each application. Investors and developers are making decisions now or will be soon, about the optimal configurations, sizing, and locations for potential ESS projects and need guidance both from a technological and regulatory standpoint,” said Brice le Gallo, Regional Director APAC, Energy Systems at DNV.
Energy Storage in the Asia Pacific Region also outlines strategies, tools, testing and certification services to manage the technical and economic risks involved in ESS projects and can be downloaded at www.dnv.com/Publications/ESS-in-APAC