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I'm certainly no expert but I think tiers of battery storage will be necessary. Some collocated with generation sites, some at distribution sites in cities, and
by kahnjw 8y ago
I'm certainly no expert but I think tiers of battery storage will be necessary. Some collocated with generation sites, some at distribution sites in cities, and probably local batteries in commercial real estate and neighborhoods if not households.
There are both local and global shifts in demand. If it were the case that only local storage options existed the system would be extremely inefficient during abnormally high peak demand that was localized to one area. Think of a heat spell in Central Valley of California. Storage would need to move from tiny batteries scattered throughout The Bay Area to be routed to the Central Valley to power AC units. It would be more efficient if there were larger local storage sites in Sacramento and Fresno.
On the other hand if we only had huge storage sites that are collocated with generation sites then as an individual you might be able to game the market through arbitrage with one big highly efficient battery. Take in power at night when its cheap and sell it when it's expensive during the day. Of course everyone will catch on to this and want a battery of their own. This depends on battery efficiency, but if you can get near the efficiency of the battery at the generation site then you can undercut their profit margin. You could at the very least use the local battery when possible to power your own home/business to save some money on your power bill.