Electricity can not be stored that is a very fatal disadvantage of it.
There is a fundamental reason for the need of Energy Storage System here.
And electricity must be generated at maximum load according to the law of maximum.
If you need an average of 50 electricity, but you need 100 for a certain period of time,
electricity must be produced at a maximum load of 100, so there is 50 of redundancy on average.
If 50 is stored in the ESS and can be utilized at full load, there is no need to build a power plant for maximum load.
However, it needs to be discussed which direction is more favorable and profitable.

Prevention of electric accident

Even if the grid infrastructure is stabilized, as power consumption continues to increase,
so power outages can occur at any time if electric
market can not forecast the demand or if there is a problem on the grid infrastructure.
The black out that occurred not only in Korea on September 15, 2011
but in the United States on Aug. 14, 2003 in New York State cause massive social cost loss.
As an offset of unforeseen loses, ESS such as UPS and Backup power is a affordable solution
to prevent unexpected loses by power outages.

915 Blackout (2011,Seoul)

814 Blackout (2003, New York) and Microgrid system in NY Univ.

Power grid stabilization

In remote area and islands where electricity power is not supplied smoothly,
increased power consumption often causes overload and power interruption.
To construct a power plant near the demand side could be an simple counterplan,
but if the ESS is utilized as an alternative to overcome the overload at demand side,
it can cope with that much of building power plant.

Benefits of Energy Storage along the Electricity value chain

Community Energy Storage in USA

Power quality enhancement

As ESS technology develops and economic efficiency of ESS increases,
ESS has been utilized for frequency regulation(FR) to improve power quality.
It can bring about the affordable direct effect from fast response of
ESS and carbon free compared to the slow response and environmental issue by using existing fossil fuel.
In recent years, as renewable power generation such PV and Wind turbine has increased
and when the renewable power becomes an indispensable part of the entire grid,
it started to cause the power quality of the entire grid to make it unstable or deteriorate.
ESS has become an essential technology for improving those type of potential issue such
as voltage fluctuation problems.

ESS fleet for Frequency Regulation in PJM(USA)

ESS source for FR in KEPCO(Korea)

Electric cost reduction

In terms of both power supply and demand,
ESS can be utilized as a means of generating revenue by variously applying to the power consumption.
This can generate a certain amount of profit by saving electricity by applying Peak-Cut or Scheduled charge
and discharge in the environment where TOU is applied and Peak power periodically occurs.
However, it is necessary to analyze the economic efficiency based on electricity-related policies
and regulations in order to build a applicable business use cases.




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