Research on Cost Recovery Mechanism of Energy Storage Capacity

For overcoming the challenge against the lack of system’s flexibility in the context of largescale renewable energy penetration, an effective capacity cost recovery mechanism for storage devices is of necessity. This paper first investigates the experience of the mechanism design about the capacity profit of storage in the power market, then proposes capacity compensation mechanism for storages based on the capacity valuation, by considering their contribution in the power system with renewables. The spot market is simulated to compute the effective load carrying capability of storage and obtain the capacity depreciation factor and capacity price. The proposed method can be a reference for the construction of the capacity compensation mechanism for storage.