Assessing the True Financial Value of Thermal Energy Storage for Utility Grid Operators
The accurate valuation of thermal energy storage devices is important for both resource adequacy planning and providing proper financial compensation for the service that they provide. Since system capacity values in electric power transactions are based upon predicted, but rare, heat storm impacts, a reliable and verifiable methodology is a critical missing link in equitably and accurately valuing, verifying, and compensating distributed energy resources in the marketplace. We believe that the current valuation methodology is unacceptably inaccurate, and that the proposed alternative merits further detailed investigation.
Project Partner & Sponsor: Ingersoll Rand (Trane)