Quantifying the Value of Electricity Storage

ABSTRACT: This research discusses the methodology developed to hedge volatility or identify opportunities resulting from what is normally a discussion constrained to the capital markets.  However, the demand (and the associated volatility) for electricity in the United States has never been more pronounced.  The upcoming paper, “Quantifying the Value of Electricity Storage,” will examine the factors that have led to the growth of volatility, both realized and potential.

There is widespread recognition of the value of energy storage, and new technologies promise to expand this capability for those who understand the opportunities being presented to firms involved in different areas of electricity generation. Objective tools to valuate these options, though, have been limited, as has the insight into when mitigation efforts make economic sense.

In order to answer these questions for electricity generators of all types we have created an economics-based model to address the initial acquisition of storage capacity, as well as the deployment optimization solutions, based on the unique attributes of the population served.

Links to the paper will be posted on FRG’s social media channels.