ETL: Solar Power, Energy Storage Make Gains in Cost-Effectiveness

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Researched by Industrial Info Resources (Sugar Land, Texas)--A new report by the Energy Transition Lab (ETL) at the University of Minnesota Institute on the Environment concluded that solar photovoltaic plus energy storage could already be more cost-effective than simple-cycle peaking plants. Also, standalone energy storage projects will be able to compete with new natural gas-fired gas turbine peaking units by 2022, according to the report.

Historically, electric utilities have used natural gas-fired peaking units, such as combustion turbines or reciprocating engine generators, to meet peak demand. But as energy storage becomes more cost-effective, it will be able to compete with and displace new gas-fired peaking generators, the report said.

Energy storage, combined with photovoltaic solar or wind energy projects, is also eligible for the federal Investment Tax Credit (ITC), and combining this with local and state incentives would further reduce the cost of project development. These factors, coupled with environmental benefits, result in a positive benefit-to-cost ratio analysis, according to the report. Renewable energy, combined with energy storage, is already a trend reflected in research conducted by Industrial Info in North America and around the world.

North America has more than 20 gigawatts (GW) of installed utility-scale solar photovoltaic generation, in which the majority of these plants could expand production hours and increase revenues with the addition of energy storage to the sites. Solar generation with energy storage is expected to reach more than 27 GW by 2026, and wind generation could add 75 GW by 2025. Energy storage will be a crucial tool for enabling the effective integration of renewable energy and unlocking the benefits of local generation and a clean, resilient energy supply.

Across the globe, energy storage technologies continue to prove their value to grid operators, who must manage the variable generation of solar and wind energy. While the costs for renewable generation continue to fall, integrating and effectively using these new resources, especially in regions with weak grid infrastructure, will require more energy storage projects tied to renewable energy and the grid.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.