Renewables and Advanced Storage in Power Systems: The Iberian Case Articles uri icon



publication date

  • April 2022

start page

  • 3373

end page

  • 3390


  • 7


  • 12

International Standard Serial Number (ISSN)

  • 2076-3417


  • Storage has many benefits for power systems with a high share of renewable energy.
    It reduces renewable curtailment, can participate in ancillary services and contributes to system
    adequacy. However, its business model is far from clear since most of its revenues come from
    arbitrage in energy markets, and this is usually not enough to recover the investment. Advanced
    storage can facilitate the profitability of storage and ease the integration of renewables in power
    systems by reducing costs and allowing an enhanced performance. The profitability requirements of
    future advanced storage systems (batteries) are assessed in this paper by means of an optimization
    method and an uncertainty analysis for an optimal Iberian (Spain and Portugal) power system that
    meets the targets of their National Energy and Climate Plans. Results show that needed storage
    capacity is only a small part of the demanded energy, but technical advances are required for optimal
    performance. High prospective storage cost leads to a wind-dominated renewable mix, while low
    storage cost favours photovoltaics. Arbitrage with storage may cover its investment costs under
    carbon prices close to the actual Social Cost of Carbon.


  • Mechanical Engineering
  • Renewable Energies


  • power system planning; storage; renewable targets