Economics at your fingertips  

A comparative analysis of the value of pure and hybrid electricity storage

Ramteen Sioshansi, Paul Denholm and Thomas Jenkin

Energy Economics, 2011, vol. 33, issue 1, 56-66

Abstract: Significant natural gas and electricity price variation and volatility, especially during the past few years, raise questions about understanding the value drivers behind electricity storage. The impact of these drivers for pure storage (such as pumped hydroelectric storage) and compressed air energy storage (CAES) are different and in this paper we explore these differences in operation and net revenue over a variety of timescales. We also consider the arbitrage value that is attainable in practice and explain why simple forecasting techniques based on historical data will generally be less successful for CAES. The breakeven cost of storage and how this can depend on regulatory treatment of storage and market structure is also considered.

Keywords: Energy; storage; Arbitrage; Natural; gas; prices; Investment; decisions (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (21) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2018-11-07
Handle: RePEc:eee:eneeco:v:33:y:2011:i:1:p:56-66