Competition between simultaneous demand-side flexibility options: the case of community electricity storage systems
Title
Competition between simultaneous demand-side flexibility options: the case of community electricity storage systems
Subject
Demand response
Demand-side flexibility
Energy transition
Optimization modelling
Sector coupling
Storage systems
Description
Community electricity storage systems for multiple applications promise benefits over household electricity storage systems. More economical flexibility options such as demand response and sector coupling might reduce the market size for storage facilities. This paper assesses the economic performance of community electricity storage systems by taking competitive flexibility options into account. For this purpose, an actor-related, scenario-based optimization framework is applied. The results are in line with the literature and show that community storage systems are economically more efficient than household storage systems. Relative storage capacity reductions of community storage systems over household storage systems are possible, as the demand and generation profiles are balanced out among end users. On average, storage capacity reductions of 9% per household are possible in the base scenario, resulting in lower specific investments. The simultaneous application of demand-side flexibility options such as sector coupling and demand response enable a further capacity reduction of the community storage size by up to 23%. At the same time, the competition between flexibility options leads to smaller benefits regarding the community storage flexibility potential, which reduces the market viability for these applications. In the worst case, the cannibalization effects reach up to 38% between the flexibility measures. The losses of the flexibility benefits outweigh the savings of the capacity reduction whereby sector coupling constitutes a far greater influencing factor than demand response. Overall, in consideration of the stated cost trends, the economies of scale, and the reduction possibilities, a profitable community storage model might be reached between 2025 and 2035. Future work should focus on the analysis of policy frameworks.
114969
269
Creator
Scheller, Fabian
Burkhardt, Robert
Schwarzeit, Robert
McKenna, Russell
Bruckner, Thomas
Publisher
Applied Energy
Date
2020
Type
journalArticle
Identifier
0306-2619
10.1016/j.apenergy.2020.114969
URL
https://www.sciencedirect.com/science/article/pii/S0306261920304815
Citation
Scheller, Fabian et al., “Competition between simultaneous demand-side flexibility options: the case of community electricity storage systems,” Lamar University Midstream Center Research, accessed May 13, 2024, https://lumc.omeka.net/items/show/26759.