Long-duration Energy Storage: Useful Considerations for Procuring Entities
If total installed costs for LDES can decrease at a pace similar to solar PV it could have a huge impact on electricity costs in the next few decades.
Long-duration Energy Storage: Useful Considerations for Procuring Entities July 29, 2021 Downloads Download Article Share In recent years, the integration of an ever-increasing amount of intermittent renewables coupled with severe weather has challenged the operation of energy markets across the United States. Most notably, the recent storm-induced power crisis in Texas due to Winter Storm Uri in February resulted in ERCOT implementing rotating power outages. High temperatures in California resulted in the CAISO issuing flex alerts for power conservation and ultimately implementing rolling power outages as well. Policymakers across both regional transmission organizations (RTOs) have responded by elevating the importance of reliability, but there remains a lack of clear direction regarding the most efficient and cost-effective alternatives. Many energy industry leaders see long duration energy storage (LDES) as a leading solution. To be successful in rolling out LDES, utilities and procuring entities must, at a minimum: Engage early on with developers to determine the universe of options. Establish an ongoing dialogue with policy and regulatory stakeholders. Structure offtake agreements that maximize benefits to the utility while mitigating risk over the contract’s duration. LDES Technology Landscape and Current Challenges Despite the current popularity of LDES, the concept is wellestablished. Any energy storage that discharges more than 10 hours of rated energy qualifies as LDES.1 Pumped-storage, hydropower, which has been around for decades, is the most common form of long-duration storage in the United States. According to the U.S. Department of Energy, 43 pumpedstorage hydropower facilities were built in the latter half of last century, providing nearly 100 GW of storage.2 Footnotes: 1: https://www.energy.gov/articles/secretary-granholm-announces-new-goal-cut-costs-long-duration-energy-storage-90-percent 2: https://www.energy.gov/sites/prod/files/2021/01/f82/us-hydropower-market-report-full-2021.pdf Related Insights Six Strategies for Building the E in ESG Read FTI Journal It’s Getting Easier Being Green: Green Bonds Gaining Steam in 1Q21 Read Article U.S. Solar Supply Chain: Business Implications from U.S. Government Actions Against China Read Article Published July 29, 2021 Key Contacts Christopher R. LeWand Global Practice Leader Power, Renewables & Energy Transition (PRET) Chris Post Senior Managing Director Miriam Wrobel Senior Managing Director, Global Leader of Environmental, Social and Governance (ESG) and Sustainability Downloads Download Article Most Popular Insights 2026 Private Equity Value Creation Index Payment Firms Under Scrutiny Many Global Consumers Are Avoiding the U.S. Why Isn’t There More Concern About Recession Risk? Corporate Sustainability Report Sign up to get access to FTI Consulting Insights Subscribe