The economic value of storage in renewable power systems : the case of thermal energy storage in concentrating solar plants

In this article we analyze the value of thermal energy storages in concentrating solar power plants depending on the electricity generation mix. To determine the value from a system integrated view we model the whole electricty generation market of the Iberian Peninsula. Key findings for thermal energy storage units in concentrating solar power plants include an increasing value in electricity systems with higher shares of fluctuating renewable generation and a potentially significant role in primarily renewable based electricity systems. Due to the relatively high investment costs concentrating solar power plants with or without thermal energy storages are not cost efficient in today's electricity markets. However, expected cost reductions due to learning curve effects and higher fluctuating renewable generation may lead to a comparative cost advantage of concentrating solar power plants with thermal energy storages compared to other renewable technologies. -- fluctuating renewables ; value of storage ; concentrated solar power ; power plant optimization