A recent study from the Lawrence Berkeley National Laboratory has found that adding batteries to renewable power plants could significantly increase the market value of solar and wind energy in areas with transmission congestion. The study, published in Renewable Energy, looked at the benefits of hybrid plants that combine renewable energy with battery storage. Researchers found that increasing a plant’s battery storage from one to four hours could increase the value of its energy by nearly 30 percent in some areas.
This is particularly important for renewables that do not operate at all hours, as adding storage allows for dispatching energy during the highest-value hours. This could prove to be lucrative in areas where the transmission system does not have enough capacity to deliver the cheapest available power to where it is most needed. Congestion can occur during times of high energy demand, such as during extreme weather events, or when there is an oversupply of energy but limited transmission capacity.
The study highlights the potential benefits of incorporating battery storage into renewable energy plants, especially as more and more renewables are added to the grid. It also emphasizes the importance of addressing transmission congestion in order to fully realize the value of renewable energy. By increasing the market value of renewable energy, this could also incentivize further investment in renewable energy projects.
Overall, the findings of this study could have a significant impact on the renewable energy sector, as well as the energy market as a whole. By increasing the value of renewable energy, it could help accelerate the transition to a cleaner and more sustainable energy system.