Energy Storage for Peaker Plant Replacement: Economics and Opportunity in the U.S.
Will energy storage replace peaker plants?
Perhaps the greatest near-term promise for energy storage is in its ability to act as a peaking resource on the grid. Approximately 20 gigawatts of new peaker capacity is expected to come online in the next 10 years, according to Wood Mackenzie's H2 2017 base-case view. 4-hour energy storage system units could start to become competitive with new peaker plant capacity in five years.
Peaking Gas Combustion Turbine vs. 4-Hour Li-Ion Battery Storage ($/MWh)
This report summarizes the analysis of capacity factors and average operating hours per start in the top 10 states where extra capacity is needed. The analysis qualifies the opportunity for energy storage to compete head-to-head against gas peakers. It looks at the future of the gas combustion turbine (CT) market and confronts a common concern about energy storage – namely, whether batteries will be sufficient to meet the grid’s needs on their own.
Upcoming Event - Energy vs. Gas Forum
Join Greentech Media and Wood Mackenzie in New York as we gather with industry experts from energy storage, utilities and gas industries to examine technological and regulatory developments, business model innovations, and investments in peaker resources. Learn more about our Energy Storage vs. Gas Forum here.