CRA Insights

Tackling the storage value stack: Wholesale market revenue streams

September 17, 2019

Energy storage technologies will play an important role in the power system of the future. Grid-scale storage will likely be a necessity to maintain balance between supply and demand, given the ever-growing dependence on emissions-free variable power sources. Declining capital costs and new technologies create a favorable market for storage as do institutional mandates and policies that make storage a priority.

A key challenge to deploying storage resources is identifying and quantifying the “value stack,” the suite of commercial opportunities used to build the business case for storage investments. The elements of the value stack can vary considerably by jurisdiction, and the value of each revenue source can likewise be heavily dependent on local and regional market conditions.

In this Insights, we provide model-based considerations for evaluating the value stack associated with wholesale energy and ancillary services markets.

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