University of Seville Model Indicates Spain's Battery Storage Viability Limited to 32 GWh
Researchers at the University of Seville have found that Spain's electricity storage capacity may become economically unviable if it exceeds 32 GWh, as this could lead to lower prices and diminished project profitability. Their Real-Time Optimization (RTO) model, which analyzes actual market data, highlights the inadequacies of traditional storage planning methods in assessing the interaction between storage capacity and market prices.
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Researchers from the University of Seville have developed real-time optimization models indicating that electricity storage in Spain may become economically unviable beyond 32 GWh. Cumulative capacities exceeding this threshold could lead to decreased prices and reduced project profitability.
Traditional storage planning methods, including production cost models and capacity expansion models, inadequately represent the interaction of storage with market prices. The proposed Real-Time Optimization (RTO) model utilizes actual day-ahead market clearing curves to estimate expected net revenues from new battery energy storage system (BESS) installations and evaluate the impact of additional capacity on wholesale prices and storage profitability.
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