One particularly bright spot in the ongoing energy revolution is the rapid drop in the cost of energy storage technologies, and the multiplying types of storage being developed around the world.
However, the technology is double edged. On a grid that is still heavily carbonized, storage can actually increase carbon emissions.
Institute for Policy Integrity – Managing the Future of Energy Storage:
Energy storage systems, undoubtedly, will be a key part of the future of the electric grid. They have the potential to provide many benefits to the grid, such as lowering the price of electricity at peak demand times, and deferring or avoiding new capacity investments. However, contrary to the prevailing wisdom, energy storage is not guaranteed to reduce emissions, and may, in fact, increase emissions if policies are not designed carefully. Further, while this oft -cited (but not guaranteed) benefit of storage dominates headlines in policy discussions around the country, many other types of benefits that energy storage systems can provide are not well recognized in policymaking.

Longish summary from Vox excerpted here.
Shortish summary: We need a damn carbon price.
Vox:
By way of background, it’s important to understand that while energy storage can provide a wide array of services to the grid (more on that later), these days it is primarily used for energy arbitrage — storing energy when it is cheap (usually at night) and discharging it when it is more valuable (usually during the day).
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There are two reasons why energy storage deployed for the purpose of arbitrage increases emissions:
1) Storage increases the value of the energy sources it draws from (a source that can store some of its energy can generate more) and decreases the value of the energy sources it competes against when discharging. If the energy sources it draws from are more carbon-intensive than the energy sources it competes against, then it will have the effect of increasing the carbon intensity of the overall power mix.
Say a battery bank absorbs cheap energy being produced by coal plants overnight and then discharges it in the day, competing with natural gas combined-cycle (NGCC) plants. The net effect will be to favor coal against natural gas, thus increasing net emissions.
2) Every bit of energy stored also represents a bit of energy lost. The “round-trip efficiency” of energy storage — the amount of energy it releases relative to the amount put in — ranges, depending on the technology, from around 40 to 90 percent.
Let’s take, for representative purposes, 80 percent, a relatively optimistic assumption for the efficiency of lithium-ion batteries. For every 1 megawatt-hour put in, 0.80 megawatt-hours comes out.
That means, if it is stored along the way, getting 1 MWh to the customer requires generating 1.25 MWh. The more energy that gets stored, the more generation has to increase to compensate for the round-trip losses.
If the generation that increases to compensate for the losses is more carbon-intensive than the energy that storage displaces, net emissions nudge up.
Even when a battery stores zero-emissions renewable energy, it is not increasing or decreasing total generation; it’s just moving it around (unless the renewables would otherwise have been curtailed; see below). If coal steps in to cover for the renewable energy that is stored, but it displaces natural gas when it’s discharged, it still might increase net carbon emissions.
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Theoretically, the emission-boosting effects of energy storage will decline as grids get greener. But they will have to get quite a bit greener. In a separate paper, Hittinger and colleagues model the emission effects of energy storage on a grid with increasing renewables. They find that in the Midcontinent ISO (MISO), the coal-heavy Midwestern regional energy market, wind and solar would have to reach 18 percent of total generation capacity before storage started reducing emissions on average. And that’s with today’s low natural gas prices. If natural gas prices increase, it would take even longer.
(There’s one important exception to note here: When and if it stores renewable energy that would otherwise have been curtailed, i.e., wasted, then energy storage clearly reduces net emissions. That’s not very common in the US today, but it could get more common as renewable energy grows.)
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Continue reading “Getting Energy Storage Right”