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Next, we identify the limits to energy storage systems as a poorly defined asset class within the electric grid value chain, and demonstrate how creating a new asset class for storage will both enhance the value of storage and also provide significant benefits to the operation of the smart grid.
These policies are mostly concentrated around battery storage system, which is considered to be the fastest growing energy storage technology due to its efficiency, flexibility and rapidly decreasing cost. ESS policies are primarily found in regions with highly developed economies, that have advanced knowledge and expertise in the sector.
The International Energy Agency (IEA) estimates that in the first quarter of 2020, 30% of the global electricity supply was provided by renewable energy . ESS policy has made a positive impact on transport storage by providing alternatives to fossil fuels such as battery, super-capacitor and fuel cells.
The authors support defining energy storage as a distinct asset class within the electric grid system, supported with effective regulatory and financial policies for development and deployment within a storage-based smart grid system in which storage is placed in a central role.
Placing the energy storage asset class at the nexus of the value chain emphasizes the role that energy storage technologies are able to play in the implementation of smart grid systems and vice versa. However, the current capacity of energy storage on the grid is wholly inadequate.
ESS policies mostly promote energy storage by providing incentives, soft loans, targets and a level playing field. Nevertheless, a relatively small number of countries around the world have implemented the ESS policies.
Real-World Implementations Across Diverse Sectors
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