Business Cases of Gravity Storage
A new StoreAge
Gravity Storage completes the business case of large-scale production of energy from renewable sources.
The basic business model for Gravity Storage (described for the case of solar): Excess power from PV plants is stored (purchased) during the day and discharged (sold) at night. The demand for storage is guaranteed by the requirement for utility companies and PV farm operators to provide a reliable power supply at all times of day or night. Grid operators also need bulk storage to balance out fast-changing loads in the system.
The basic business model for Gravity Storage combined with wind power generation is analogous.
The design of the Gravity Storage plant, in terms of pump and turbine dimensions, etc., depends on the operator´s intended application. There are several revenue models that may then be applied, which can be combined with each other if desired:
- PPA (Power Purchase Agreement),
combining production and storage capabilities, is particularly promising – delivering 24-hour electricity at a fixed price for 20 years or more. Such PPAs, including “production + storage”, are ready for market as soon as a low-cost bulk storage solution is available. This type of supply requires daily storage of 6 to 14 hours to ensure a 24-hour supply.
- Provision of ancillary services,
- frequency regulation,
- voltage support,
- black start capability and
- spinning reserve capacity.
These services require storage solutions for periods from a few seconds up to several hours. In this case, the return will come from specific service fees and grid charges.
- Provision of balancing power,
when intermittent generation requires fast ramping capabilities. An ideal storage solution must be cost-efficient, sustainable and reliable.
Gravity Storage satisfies these requirements.