Business Models and Profitability of Energy Storage
Summary: Rapid growth of intermittent renewable power generation makes the identification of investment opportunities in energy storage and the establishment of their profitability indispensable. Here we first present a conceptual framework to characterize business models of energy storage and syste...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2020-10-01
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| Series: | iScience |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S258900422030746X |
| _version_ | 1818523271086211072 |
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| author | Felix Baumgarte Gunther Glenk Alexander Rieger |
| author_facet | Felix Baumgarte Gunther Glenk Alexander Rieger |
| author_sort | Felix Baumgarte |
| collection | DOAJ |
| description | Summary: Rapid growth of intermittent renewable power generation makes the identification of investment opportunities in energy storage and the establishment of their profitability indispensable. Here we first present a conceptual framework to characterize business models of energy storage and systematically differentiate investment opportunities. We then use the framework to examine which storage technologies can perform the identified business models and review the recent literature regarding the profitability of individual combinations of business models and technologies. Our analysis shows that a set of commercially available technologies can serve all identified business models. We also find that certain combinations appear to have approached a tipping point toward profitability. Yet, this conclusion only holds for combinations examined most recently or stacking several business models. Many technologically feasible combinations have been neglected, indicating a need for further research to provide a detailed and conclusive understanding about the profitability of energy storage. |
| first_indexed | 2024-12-11T05:43:02Z |
| format | Article |
| id | doaj.art-0644490e02ad4c16876bf9ad2c966f6c |
| institution | Directory Open Access Journal |
| issn | 2589-0042 |
| language | English |
| last_indexed | 2024-12-11T05:43:02Z |
| publishDate | 2020-10-01 |
| publisher | Elsevier |
| record_format | Article |
| series | iScience |
| spelling | doaj.art-0644490e02ad4c16876bf9ad2c966f6c2022-12-22T01:19:04ZengElsevieriScience2589-00422020-10-012310101554Business Models and Profitability of Energy StorageFelix Baumgarte0Gunther Glenk1Alexander Rieger2FIM Research Center, University of Bayreuth, Project Group Business & Information Systems Engineering, Fraunhofer FIT, Bayreuth 95444, GermanyBusiness School, University of Mannheim, MIT CEEPR, Massachusetts Institute of Technology, Mannheim 68131, Germany; Corresponding authorInterdisciplinary Centre for Security, Reliability and Trust, University of Luxembourg, Luxembourg 1855, LuxembourgSummary: Rapid growth of intermittent renewable power generation makes the identification of investment opportunities in energy storage and the establishment of their profitability indispensable. Here we first present a conceptual framework to characterize business models of energy storage and systematically differentiate investment opportunities. We then use the framework to examine which storage technologies can perform the identified business models and review the recent literature regarding the profitability of individual combinations of business models and technologies. Our analysis shows that a set of commercially available technologies can serve all identified business models. We also find that certain combinations appear to have approached a tipping point toward profitability. Yet, this conclusion only holds for combinations examined most recently or stacking several business models. Many technologically feasible combinations have been neglected, indicating a need for further research to provide a detailed and conclusive understanding about the profitability of energy storage.http://www.sciencedirect.com/science/article/pii/S258900422030746XEnergy ManagementEnergy StorageEnergy Systems |
| spellingShingle | Felix Baumgarte Gunther Glenk Alexander Rieger Business Models and Profitability of Energy Storage iScience Energy Management Energy Storage Energy Systems |
| title | Business Models and Profitability of Energy Storage |
| title_full | Business Models and Profitability of Energy Storage |
| title_fullStr | Business Models and Profitability of Energy Storage |
| title_full_unstemmed | Business Models and Profitability of Energy Storage |
| title_short | Business Models and Profitability of Energy Storage |
| title_sort | business models and profitability of energy storage |
| topic | Energy Management Energy Storage Energy Systems |
| url | http://www.sciencedirect.com/science/article/pii/S258900422030746X |
| work_keys_str_mv | AT felixbaumgarte businessmodelsandprofitabilityofenergystorage AT guntherglenk businessmodelsandprofitabilityofenergystorage AT alexanderrieger businessmodelsandprofitabilityofenergystorage |