There’s a new partner in town: The Energy Storage Solutions Consortium.
Energy storage plays an important role in our new carbon-free future. It is often referred to as the “linchpin technology” of energy transformation. It promises to complement clean and cheap discrete energy sources such as wind and solar. to replace the dirty power source With grid-scale energy storage, it’s ready for massive growth. Getting this right today could have an exponential impact tomorrow.
But realizing the full carbon emissions benefits of energy storage needs to be adapted to optimize for reductions in greenhouse gas emissions. And that’s not what you get.
Does energy storage always reduce emissions?
No. Energy storage projects are financed and structured to maximize return on investment. They often make money by selling energy at market rates to the grid. by considering the demand and supply of electricity at that time Grid operators go for the cheapest resource first. Then more expensive resources are available as needed. which is called the order of merit
This incentivizes storage projects to save energy during times of higher rates. This may not be consistent with the best interests of carbon removal.
Consider a wind farm When the farm has electricity The rate may be relatively low. This is because nearby wind farms tend to produce cheap energy too. It may be more financially attractive to save energy when rates go up. Even if that means that other dirty sources need to be online.
If the goal is to reduce carbon emissions in the energy sector (And so it is.) We need to change the financial model for these projects. That requires two innovations: emissions related to real-time power generation. and incentives to reduce emissions.
Do we know real-time emissions data for energy production?
Better understanding of where and when emissions occur is key to power fragmentation – and its objectives. Energy Storage Solutions Association.
The association aims to create open source. Third party verification method To quantify the benefits of reducing emissions of energy storage This allows organizations to see the real impact of deploying new energy storage accordingly. release. This method can give advice on where to use stored energy to meet a net zero target.
The process is deceptively simple: quantify the large amount of emissions displaced through the charging and discharging of energy storage facilities at specific locations and points. in doing this The Group’s energy market calculates real-time location-based emissions displaced as a result of clean energy sources. which is a concept known as “location-based emissions”
while various organizations As more and more numbers are looking for 24/7 access to carbon-free energy, the cottage industry is emerging with innovators looking to better understand real-time greenhouse gas emissions. Several organizations that I have looked at in this area have joined this association, including stability, Watt Times, Clearloop and Microsoft.
Collaboration between early starters These are worth seeing. Because they create products that reach customers that drive carbon reduction.
How can we be better motivated to reduce emissions?
The same is true for large-scale, privately funded projects. Energy storage capacity requires capital. So the puzzle became How can we structure a deal to signal prices consistent with emissions cuts?
Meta, one of the founding members of the conglomerate, is bringing a new financial structure to explore this question. The tech giant has selected three Texas energy storage projects. It has a total capacity of 9.9 megawatts (MW), which will compensate project developers based on the reductions in greenhouse gas emissions they generate.
The pilot, which Meta details in a blog post, It is designed to test whether this twist will lead to meaningful emissions reductions. Meta will look at the completion of the project in June 2023 using the Group’s tools to verify. result
If successful and scalable According to Meta, Texas’ ERCOT power grid currently offers 1.5 GW of standalone storage to operate, with 38.2 GW in the interconnection queue. If this method is correct That energy storage could result in 2.4 million tons of CO2 reduction.