Electricity storage. A solution for wind power integration? Study on the economic and institutional aspects of the implementation of electricity storage for the integration of wind power

In today's society a power outage can lead to major financial damage. It is therefore of high importance that the electricity system is reliable and that customers can rely on high security of supply. To prevent power outages, the electricity system has to be in balance continuously: supply and load have to be equal. Currently the majority of the electricity generation is done by conventional power plants of which the operation schedule is fully controllable. This means that these plants can be operated in such a way that electricity demand, which varies during the day, can be met continuously. The integration of a large share of wind power in the electricity supply system however, can lead to problems with respect to the balancing of the electricity system. This is caused by the fact that wind power has an intermittent character. Its production fluctuates and is uncertain: it therefore cannot be used to follow the varying load. Electricity storage could contribute to the integration of wind power in the electricity supply system. Storage systems can decouple the timing of generation and consumption of electricity and can therefore compensate for the fluctuations in wind power production. This investigation aims at identifying what problems the integration of a large share of wind power will cause and how electricity storage can resolve these problems. Subsequently, the implementation costs of storage systems for the identified applications will be investigated. Finally, the current regulatory environment will be discussed to evaluate whether it is geared to the implementation of electricity storage. Therefore, the following research question is formulated: Under which technological and institutional preconditions will it be advantageous to implement electricity storage systems, in combination with wind farms, in the next 20 years? To answer the research question the following subquestions have been formulated: (1) What are the implications of the market design on the implementation of electricity storage and what important developments are taking place in the context of electricity storage?; (2) Which electricity storage systems are currently available and what are the characteristics of these systems relevant for market introduction?; (3) In what way can electricity storage contribute to the integration of wind power in the electricity supply system?; (4) Is the implementation of electricity storage systems economically profitable?; (5) What are the advantages and disadvantages of ownership of storage systems; by grid managers compared to ownership by market parties?; and (6) Does the current regulation provide possibilities for grid managers to stimulate private parties to invest in storage systems?