Should energy storage be more than 4 hours of capacity?

However, there is growing interest in the deployment of energy storage with greater than 4 hours of capacity, which has been identified as potentially playing an important role in helping integrate larger amounts of renewable energy and achieving heavily decarbonized grids.1,2,3

How many GW of energy storage are there in 2022?

By the end of 2022 about 9 GW of energy storage had been added to the U.S. grid since 2010, adding to the roughly 23 GW of pumped storage hydropower (PSH) installed before that. Of the new storage capacity, more than 90% has a duration of 4 hours or less, and in the last few years, Li-ion batteries have provided about 99% of new capacity.

How much capacity does a 4 hour storage device capture?

In locations with a 4-hour capacity rule, a 4-hour storage device captures well over 80% of the total capacity plus energy time-shifting value that could be captured by a much longer device Figure 5.

Can 4 hour storage meet peak demand?

The ability of 4-hour storage to meet peak demand during the summer is further enhanced with greater deployments of solar energy. However, the addition of solar, plus changing weather and electrification of building heating, may lead to a shift to net winter demand peaks, which are often longer than can be effectively served by 4-hour storage.

Will 4 hour storage drop over time?

On the value side, the value of 4-hour storage is likely to drop over time as many regions in the United States shift to net winter peaks. This would increase the relative value of longer-duration storage that would be needed to address the longer evening peak demand periods that cannot be served directly with solar energy.

What is a 4-hour capacity rule?

Figure 4. In locations with a 4-hour capacity rule, a 4-hour storage device captures well over 80% of the total capacity plus energy time-shifting value that could be captured by a much longer device (top). The incremental value of adding additional duration (bottom) is less than the annualized cost of current Li-ion battery capacity.