Estimating potential revenue generation by energy storage
addresses a research gap by providing a comprehensive economic analysis of ESS profitability across various market segments, such as day-ahead, int. ay, and regulation markets. The
Business Models for Energy Storage Rows display market roles, columns reflect types of revenue streams, and boxes specify the business model around an application. Each of the three parameters is useful to systematically differentiate investment opportunities for energy storage in terms of applicable business models.
While energy storage is already being deployed to support grids across major power markets, new McKinsey analysis suggests investors often underestimate the value of energy storage in their business cases.
Although academic analysis finds that business models for energy storage are largely unprofitable, annual deployment of storage capacity is globally on the rise (IEA, 2020). One reason may be generous subsidy support and non-financial drivers like a first-mover advantage (Wood Mackenzie, 2019).
Additionally, three of market clearing overall frameworks of energy storage resources participating in electric energy market, frequency modulation auxiliary service market and capacity market have been established.
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