Energy Storage:

An Economic Perspective

Introduction

One of the first large scale application of energy storage can be found in the 1,730 MW Dinorwig pumped hydro storage scheme in the UK, which is the fastest response pumped hydro storage scheme in the world [DTI, 2006]. At present the most widely used and perhaps profitable application of energy storage can be found in well known “Uninterruptible Power Supply (UPS)” systems which have emerged due to the improvements made to batteries and power electronics devices [DTI, 2006], and the need for high reliability in key modern loads.
Many organizations and associations in North America, Europe and Asia have started research in the field of energy storage. In the USA, the Energy Storage Program of the Department of Energy (DoE) in collaboration with many laboratories (such as Sandia National Laboratories) has started many research and test programs. As a first conclusion, the DoE has recognized the important potential that the energy storage applications could have in the electric power system and consequently in the whole economy of the USA [DTI, 2006]. Trade associations in the field of energy storage such as the Electricity Storage Association (ESA) aim to promote the development and commercialization of energy storage systems. ESA is formed of electricity utilities, storage devices manufacturers and developers, researchers and research and development funding organizations around the world such as: Australia, Brazil, Canada, Japan, the Netherlands, Switzerland, Tanzania, the UK and USA [DTI, 2006].