Flexibility in the electricity system is essential. Grid operators require flexibility to maintain the balance between supply and demand on the high-voltage grid, while market parties need it to accommodate fluctuations in electricity production. The demand for flexibility is growing as the share of renewable sources in the overall electricity supply increases and electrification occurs in many sectors.
In its Flexibility Roadmap, TenneT has already outlined a vision on the role of flexibility in the future electricity system of the Netherlands. The Roadmap provides an overview of various flexibility solutions, including energy storage.
TenneT has now developed a tool to further facilitate the understanding of key drivers and sensitivities in business cases for large-scale electricity storage.
TenneT’s free tool allows users to independently analyse business cases for large-scale electricity storage. The tool uses a powerful method to determine the optimal dispatch of storage assets for specific applications, and includes a comprehensive set of technical and economic parameters for large-scale storage projects. It can also be used to perform financial analyses. Users can select one of the predefined example cases, or define their own projects.
TenneT commissioned consultancy firm Ecofys to develop the tool, and Ecofys also elaborated a number of example cases. These models cover the following technologies:
- Lithium-ion battery technology
- Redox flow battery technology
- Compressed Air Energy Storage (CAES)
- Electrolysis for sustainable hydrogen production
The example cases also devote attention to possible market segments in which storage assets can be used, such as ancillary services related to Frequency Containment Reserves (FCR) and automatic Frequency Restoration Reserves (aFRR), as well as the day-ahead market. The tool also includes historic price series for these market segments.
Users of the tool are provided with a comprehensive overview of results, including the Internal Rate of Return (IRR) and a breakdown of the Net Present Value (NPV) at project level, as well as energy cycles, energy throughput, and detailed annual cash flow results.
Downloading and using the tool
TenneT invites anyone to download the tool from the TenneT website and use it for themselves. We will also be present at the Energy Storage Day held on 10 October in Den Bosch, the Netherlands, to present the Electricity Storage Valuation tool and our vision on flexibility in the electricity system.