Why Stationary Storage is a Game-Changer for Energy Models!
The Role of Embedded Storage in Electricity System Planning
Embedded storage plays a crucial role in mitigating supply risks, particularly in contexts where generation capacity is unreliable. By not incorporating embedded storage in electricity planning models, forecasts risk underestimating the true flexibility of the system. This gap may lead to inefficient infrastructure investments, misaligned demand-supply balancing, and an inaccurate understanding of long-term energy resilience.
Unit Commitment Modelling for Embedded Storage Assessment
Unit commitment modelling provides a valuable framework for testing the impact of embedded storage on the electricity system. By simulating dispatch decisions and grid balancing with and without embedded storage, researchers can evaluate the extent of distortions caused by its omission. This approach allows for the identification of scenarios where embedded storage could improve reliability, reduce system costs, and support integration of renewable energy sources.
Embedded Storage and Renewable Energy Self-Consumption
A significant portion of embedded storage in South Africa is co-located with photovoltaic (PV) systems, where it is primarily used to maximize self-consumption rather than arbitrage. This localized use of storage has wider system implications, as it shifts load profiles and alters demand patterns. The interplay between self-consumption and grid stability highlights the importance of properly modelling storage utilization to ensure that renewable energy integration is both efficient and system-friendly.
Misaligned Incentives and Future Aggregation Potential
The study identifies a misalignment between municipal-level incentives for embedded storage aggregation and the needs of the national electricity system. While municipalities may seek to leverage storage to address local issues, this may not align with broader system stability or economic efficiency. Future aggregation of embedded storage offers opportunities for enhanced system resilience, but only if guided by coherent policy and regulatory frameworks that align local and national objectives.
Policy Implications and Strategic Utilization of Embedded Storage
The findings highlight an urgent need for policy interventions that incentivize optimal utilization of embedded storage. Policymakers, grid operators, and storage owners must collaborate to create frameworks that encourage storage use in ways that benefit the overall system. By addressing underutilization and aligning incentive structures, South Africa can unlock the full potential of embedded storage for supporting renewable integration, reducing supply risks, and ensuring long-term energy security.
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