Abstract
Energy storage systems are bound to play a critical role in the transition towards a decarbonized power sector with high shares of variable renewables. However, an open question is whether all storage capacity that is needed will be profitable under the current market paradigm. In this paper, we assess how the profitability of energy storage systems is affected by the increasing penetration of variable renewables. Moreover, we discuss the potentially detrimental effects of strategic storage capacity withholding on systemcosts, renewable penetration and the profitability of all technologies.
Show me the money! Profitability of energy storage systems in low-carbon power systems
