Accommodative Energy Market for Battery Energy Storage and Grid Balancing

Electrical energy storage has a key role in offsetting variability and undependability of variable energy sources like wind and solar PV. The road to the economic viability of battery energy storage goes through accommodative and vibrant energy market and responsive regulatory framework that ensures level playing fields for emerging technologies. Battery storage technologies and their participation in various grid applications are linked to the economic viability of battery storage. Life cycle cost estimation using Monte Carlo Simulation to address the stochastic nature of input data of battery storage technologies for different grid applications will provide a common reference to assess their economic viability vis-à-vis conventional generators. Further compensation for different grid applications vary. Fast regulation services tailor-made for battery storage applications adopted by some independent system operators (ISO) will demonstrate economic viability and level playing field for battery storage technologies, and worth emulating policy paradigm for other ISOs.