Contribution of Energy Storage to System Adequacy and its Value in the Capacity Market

The low carbon agenda causes technological and economic changes in the energy sector. In order to reach decarbonisation goals, future power systems are expected to face challenges such as generation uncertainty and larger flexibility requirements. Energy storage has been identified as a potential solution that delivers substantial benefits in different areas, including system adequacy. Therefore, it is important that the true value of storage is reflected by market mechanisms in order to foster their penetration.This paper demonstrates the significant potential for capacity contribution of energy storage and its ability to displace conventional generation. For this purpose, two methodologies for quantifying the contribution of energy storage to system adequacy are established and a demand side response model for the application in adequacy studies is proposed. Lastly, the implementation of an optimal dispatch policy highlights an area of improvement in the current GB energy storage de-rating methodology that directly affects the value of storage units in the capacity market.