Declining Capacity Credit for Energy Storage and Demand Response With Increased Penetration

We present a simple method to calculate the marginal capacity credit of energy limited resources with increased penetration. Energy limited resources are defined as any resource with limited hours of dispatch across a day, month, or year. This includes emission limited resources, time-limited demand response, and diurnal energy storage such as batteries and pumped storage. This paper focuses on 4 h energy limited resources with daily dispatch. The method modifies well-established effective load carrying capability methodology by optimally allocating limited capacity to the highest loss of load hours. Subsequent energy limited resources are iteratively stacked upon the prior solution, creating a marginal capacity credit curve with increased penetration of energy limited resources. Two systems are tested using this method. The initial capacity credit depends on system characteristics such as load and renewable penetration. Regardless, the capacity credit for energy limited resources declines steeply with penetration.