World Energy Resources Report 2016, E-storage - shifting from cost to value 2016 – wind and solar applications
A narrow focus on cost alone may be leading to misconceptions about the real value of energy storage according to a new report by the World Energy Council ‘E-storage – shifting from cost to value’. The report, which focusses on solar and wind applications, says that the focus only on investment costs is leading to the perception that energy storage is more expensive than it actually is because it ignores the system value of stored energy. The report is calling for the true value of energy storage to be recognised by taking into account both its cost and revenue benefits. It looks at a number of storage costings across the technology spectrum to conclude that the widely used levelised cost of energy methodology is hindering the progress of energy storage. The analysis identifies “double trouble” problems with the methodology, namely arbitrariness which does not allow for differences in application cases, and incompleteness as only limited account of revenue is taken.