2Q 2018

Optimizing Fossil Fuel Generation with Energy Storage

The development of energy storage has been tightly associated with the integration of renewable energy. However, energy storage is one of the most versatile technologies on the grid. A new generation of projects combining energy storage with fossil fuel (ESFF) generators is shifting the paradigm of how energy storage is utilized. In the same way a hybrid car uses battery storage to improve efficiency and reduce fuel consumption, an energy storage system (ESS) integrated with a conventional power plant can result in significant fuel and maintenance cost savings while improving the grid’s overall resiliency.

At a time when market conditions are forcing power plants into premature retirement, energy storage can increase revenue and lower the costs to operate power plants. Driven by increasing peak demand and the penetration of renewable energy on grids around the world, energy storage provides greater flexibility and optimization of power plants. Integrating energy storage with generation plants also provides the foundation for a more flexible and resilient grid capable of adapting to changing conditions. Market conditions and policies are driving acquisitions and new hybrid projects from incumbent generator providers, and innovative products and services are emerging from both generator and storage providers.

This Navigant Research report explores the advantages of ESFF solutions to maximize the efficiency, value, and useful life of fossil fuel power plants. The study examines the various strategies that market players are using to capitalize on this emerging trend and provides background on the development of ESFF solutions. It also details some of the key opportunities presented by the growth of ESFF solutions and projects and provides recommendations for utilities, vendors, and project developers.

Pages 15
Tables | Charts | Figures 2

  • What is driving the integration of energy storage with fossil fuel generation?
  • What are the benefits of adding energy storage to fossil fuel power plants and distributed generators?
  • How are generator companies adding energy storage to their offerings?
  • What are the opportunities for utilities, vendors, and developers to capitalize on the integration of energy storage with fossil fuel generation?
  • What is the long-term potential of energy storage as a peaking generation resource?

  • Fossil fuel power plant developers
  • Distributed generator vendors
  • Energy storage technology vendors
  • Energy storage project developers
  • Utilities
  • Electricity industry regulators
  • Investor community

Spark

Context

Recommendations

Why Add Storage to Power Plants?

Market Conditions and Policies Drive Acquisitions and New Hybrid Projects

Regulatory Drivers: Air Quality and Alternative Infrastructure

Mergers, Acquisitions, and Partnerships Leading to New Offerings

New Projects around the World

GE’s Hybrid Electric Gas Turbine

Software Driven Storage + Hydro Power

New European ESFF Projects May Be World’s Largest

Identifying Value Streams and Shaping New Products

Distributed Generation and Reliability as a Service

Distributed Expertise Translates to New Solutions on the Grid

Opportunities for Utilities, Vendors, and Developers

Utilities Follow Push for Grid Modernization and Innovation

Vendors Seek Solutions to Expand Horizons

New Opportunities Emerge for Project Developers

  • Hybridizing Generation with Energy Storage throughout the Energy Cloud
  • Genset Manufacturers with Publicly Announced Hybrid/Storage Plays

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