For instance, Johnson et al. evaluated the economic impacts of three energy storage technologies, namely Lithium-ion batteries, flywheels, and compressed air energy storage, using total cost of generation reductions to gauge the system value of each technology within a high-penetration renewable energy system.
While the aforementioned research primarily examines the microeconomic perspective, focusing on the application of specific energy storage (ES) technologies, there is also a body of literature that analyzes the macro-level impact of ES in regional power systems. The assessment of economic system effects often centers around cost reduction.
With the performance of lithium batteries significantly improving over the past few years and the iteration of multiple technology routes accelerating, the energy storage industry has achieved scaled development, said Chen Haisheng, chairman of China Energy Storage Alliance.
Furthermore, the development of ES will accelerate the penetration rate of renewable energy, such as wind and solar, thereby bringing substantial indirect synergistic carbon reduction benefits. In general, a higher energy storage capacity will result in a greater negative externality in the short term.
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