A business model analysis of different long duration energy storage systems in GB energy market conditions

This paper presents a comprehensive business model analysis and comparative economic assessment of three different Long Duration Energy Storage (LDES) systems, considering a co-optimised multi-market approach over the technologies' lifetime. Specifically, the studies carried out offer an economic comparison of different system configurations - with regards to different storage media, power and energy ratings, round-trip efficiency (RTE), and other technical parameters - while considering a co-ordinated operation across multiple energy market products/applications to maximise the value proposition of the LDES system. Preliminary results have demonstrated the need for accurate market signals, as well as adequate remunerative levels, to overcome high capital costs and revenue uncertainty. Fundamentally, the value proposition for LDES in the UK is mainly associated with capacity support during periods of adverse weather conditions in a fully decarbonised energy system - i.e. multiple days of low wind and low solar irradiance levels. The results show that this is undermined by inadequate remunerative support from the capacity market, associated with ineffective de-rating factors for duration-limited storage.