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Value Stacking

Value stacking combines revenue streams, and allows batteries to derive value by serving multiple applications. An energy storage system dispatched solely for demand charge reduction is only used for 5 to 50 percent of its useful life, according to the Rocky Mountain Institute, but dispatching and re-dispatching batteries for different services promises to improve the economics of energy storage systems.

Energy storage can provide up to 13 services to three distinct groups: 1) customers, 2) utilities, and 3) Independent Service Operators (ISO) and Regional Transmission Organizations (RSO). Behind-the-meter (BTM) energy storage (that is, customer-sited energy storage) is the only kind of energy storage that has the potential to deliver all 13 value streams, according to the Rocky Mountain Institute.  

For customers, energy storage can help with increasing consumption of self-generated solar (or other) power, provide back-up power, reduce demand charges, and aid time-of-use bill management. For utilities, energy storage can provide relief from transmission congestion, enable adequate resource use, and help defer transmission and distribution costs. Finally, for ISO/RTO, energy storage can provide services including energy arbitrage, spin/non-spin reserves, frequency regulation, voltage support, and black starts.

 

Conference Session

Designing Storage to Provide Multiple Services
Tuesday, July 10, 2:45pm – 4:15pm