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Market and Policy Barriers to Deployment of Energy Storage

Abstract:
There has recently been resurgent interest in energy storage, due to a number of developments in the electricity industry. Despite this interest, very little storage, beyond some small demonstration projects, has been deployed recently. While technical issues, such as cost, device efficiency, and other technical characteristics are often listed as barriers to storage, there are a number of non-technical and policy-related issues. This paper surveys some of these main barriers and proposes some potential research and policy steps that can help address them. While the discussion is focused on the United States, a number of the findings and observations may be more broadly applicable.
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Keywords: Energy storage, Electricity markets, Externalities, Incomplete markets, Energy policy

http://dx.doi.org/10.5547/2160-5890.1.2.4

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Published in Volume 1, Number 2 of The Quarterly Journal of the IAEE's Energy Economics Education Foundation.