A report by Brattle associate Roger Lueken on slow growth in energy storage was recently published in Energy Policy. The paper, “Is inexpensive natural gas hindering the grid energy storage industry?” was co-authored by Eric Hittinger of Rochester Institute of Technology.
The authors’ report examines the correlation between falling natural gas prices and the slow deployment of grid-level energy storage, resulting in the reduction of profit from many U.S. energy storage projects since 2009. Their findings indicate that although cost and performance improvements have been continually decreasing costs of energy storage services, potential revenues from both energy arbitrage and frequency regulation are at or near 10-year lows as a result of falling natural gas prices.
The study was also recently featured in the Washington Post article, “Why cheap natural gas is thwarting the battery and energy storage revolution.”
Dr. Lueken’s paper can be downloaded here.