Power Management in Grid-Scale Energy Storage Systems; A Case Study of Trends

Abstract

The global energy crisis poses a major challenge, driven by the depletion of fossil fuel reserves and the escalating impacts of climate change. In response, the transition to renewable energy sources, particularly solar and wind power, is accelerating to address these pressing issues. However, renewable energy systems require efficient storage solutions to enhance energy utilization and ensure a stable, resilient power grid. Energy storage systems play versatile roles within power grids, including peak shaving, fast frequency response, voltage stability, and power quality enhancement. This study examines the trends and current status of various energy storage technologies, highlighting lithium-ion (Li-ion) batteries as particularly promising. While pumped-hydro storage currently accounts for approximately 95% of total storage capacity, Li-ion batteries demonstrate substantial potential for future applications. A case study highlights utility-scale applications of energy storage systems in Iran's power system, emphasizing peak-shaving, load-leveling, power quality improvement, and energy efficiency enhancement. Energy storage plays a critical role in Iran, particularly for peak shifting and load leveling. In the summer of 2023, Iran's peak energy consumption reached approximately 80,000 MW, with an average demand of 64,000 MW during peak seasons. Diesel generators, with a grid capacity of approximately 1000 MW, serve as Iran's primary emergency power supply system. A comparison of the levelized cost of energy (LCOE) for lithium-ion (Li-ion) batteries, identified as an optimal fast-response system in Iran, revealed that diesel generation is more expensive, even without accounting for CO2 emission costs. Given Iran's significant lithium reserves, estimated at 8.5 million metric tons, Li-ion batteries have the potential to emerge as the dominant energy storage solution both domestically and globally.