Role of policy in the development of business models for battery storage deployment: Hawaii case study

Aravind Retna Kumar and Gireesh Shrimali

Energy Policy, 2021, vol. 159, issue C

Abstract: Hawaii's 100% Renewable Portfolio Standard target has led to rapid growth in renewable generation resources. This has resulted in grid issues given the islanded nature of Hawaii's grid. The state has decided to use battery storage in its grid to address these issues. This motivates us to try to understand the various business models in the state and the minimum set of barriers that must be overcome for its successful deployment. We achieve the former by assessing the projects in the state and identifying the dominant business models. For the latter, we use a barrier-solution framework that posits the minimum set of barriers that must be met for the successful deployment of battery storage business models and we verify it by identifying the role of various policies/drivers in supporting these business models. As a result, we find predominantly three business models in Hawaii: Co-located Front-of-the-Meter, Behind-the-Meter, and Aggregated Behind-the-meter. We also verify that at least one barrier from barrier categories associated with market demand and project economics along with all the barriers related to interconnection and market participation must be addressed for successful deployment of battery storage. Based on these findings, we give recommendations to policymakers seeking to develop a battery storage market.

Keywords: Battery storage; Business models; Deployment barriers; Barrier-solution framework; Energy planning (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:159:y:2021:i:c:s0301421521004717

DOI: 10.1016/j.enpol.2021.112605

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