by kublikhan » Sat 04 Mar 2017, 22:21:14
It seems to me large scale pumped storage is economical today and the problems with expanding this technology are not economical nor technical but rather regulatory:
$this->bbcode_second_pass_quote('', '[')b]Prohibition on ownership by TSOS and operation by DNOs
The characterisation of storage as a form of generation has an impact on who can own and operate storage assets. The liberalisation of the electricity market required the splitting up of those segments which are natural monopolies (transmission and distribution) from those which are open to competition (generation and supply). Transmission System Operators (TSOs) are prohibited from owning licenced generation assets and Distribution Network Operators (DNOs) must guarantee the operational independence of any licenced generation assets they own through stringent legal, accounting and functional unbundling requirements. Since storage is classed as a form of generation, this means that TSOs and DNOs cannot own or operate any generating asset which requires a licence. Whilst they may own storage assets that do not require a licence (i.e. those that a smaller than 50MW), this represents an obstacle to the development of large scale storage.
A further obstacle to the development of large scale storage comes from the de minimis restrictions placed on DNOs. DNOs may not generate more than 2.5% of their revenue from non-distribution activities or make investments in non-distribution activities that exceed on an aggregate basis 2.5% of their issued share capital, share premium and consolidated reserves. While the current scale of storage does not come close to threatening these de minimis restrictions, if storage is to become an integral part of the electricity market, it may soon become an issue.
These barriers to entry on TSOs and DNOs prevent the organisations that are best placed to manage the smart grid from acquiring the assets to do so. While the ownership restrictions clearly represent an opportunity for independent storage operators, they also present an obstacle to widespread storage uptake. DNOs, in particular, are better able to exploit storage’s potential by optimising storage assets to balance the system. They also have the scale, technical expertise and financial clout to develop large scale storage projects. Therefore the restrictions on DNOs and TSOs pose a significant obstacle to integrating storage into the UK’s electricity sector.
Energy Storage – Is the regulation ready for what’s in store?$this->bbcode_second_pass_quote('', 'H')ydropower pumped storage is the only commercially proven technology available for grid-scale energy storage. While benefits of expanding pumped storage capacity are clear, current market structures and regulatory frameworks do not present an effective means of achieving this goal. Policy changes are needed to support the timely development of additional grid-scale energy storage. To this end, NHA has developed a series of recommendations to guide the energy industry and policy makers. NHA’s key policy recommendations are presented in detail in Section 4 of this paper, and include:
* Create market products that allow flexible resources to provide services that help meet electric grid requirements, including very fast responding systems that provide critical capacity during key energy need periods. Level the policy playing field for pumped storage hydropower with other storage technologies to encourage the development and deployment of all energy storage technologies. Recognize the regional differences within the U.S. generation portfolio and the unique roles energy storage technologies play in different regions. Recognize the energy security role pumped storage hydropower plays in the domestic electric grid.
* Establish an alternative, streamlined licensing process for low-impact pumped storage hydropower, such as off-channel or closed-loop projects. Improve integration of Federal and state agencies into the early-stage licensing processes for pumped storage hydropower.
* Improve integration of Federal and state agencies into the early-stage licensing processes for pumped storage hydropower. Facilitate an energy market structure where transmission providers benefit from long-term agreements with energy storage facility developers.
* Facilitate an energy market structure where transmission providers benefit from long-term agreements with energy storage facility developers.