Should subsidies be directed to capacity instead of energy?

In summary, most of the benefit of directing subsidies to capacity rather than energy, in terms of reducing the expense of promoting learning-by-doing by meeting a capacity target, arises from shifting investment from wind to solar, and not from shifting investment in a particular technology among different locations.

How does a high CO2 price affect a capacity subsidy?

The difference in cost-effectiveness between an energy subsidy, a capacity subsidy, and a mixed investment/output subsidy is also reduced when there is a high CO 2 price. The interaction between these policy instruments lowers the cost of a capacity subsidy more than the costs of an energy subsidy.

How is energy and power capacity optimized in a candidate storage plant?

Energy and power capacity of candidate storage plants are unconstrained and optimized by the model from the perspective of the grid, such that the model may build storage of any duration and size in each load zone.

Does storage reduce the need for transmission capacity and dispatchable renewables?

We observe that storage decreases the need for transmission capacity and dispatchable renewables like biomass while shifting the solar and wind balance (Fig. 5b). Due to the significant drop in curtailment for scenarios up to 20 TWh, less generation capacity is needed to deliver the same energy to the grid.

What is an LDEs energy capacity mandate?

In this context, we refer to an LDES energy capacity mandate as a quantity of storage energy capacity that is mandated by a governmental entity to be built by 2050 across Western North America.

Do battery energy storage companies offer peak shaving and Sping reserve services?

Zhang et al. (2013) examined the utilization of Battery Energy Storage Companies (BESC) to offer peak shaving and sping reserve services within electricity markets that experience a growing presence of wind energy .