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Chapter

Energy Storage Efficiency

Patricia Scholczova

Abstract

Renewable energy sources with their growing importance represent the key ele-
ment in the whole transformation process worldwide as well as in the national/global
restructuring of the energy system. It is important for a sufficient energy system is
to find a solution and key element to complete energy supply, that is, energy stor-
age. Reasons and background, which make the energy storage so crucial, imply that
exact, enduring development of energy storage is an indispensable part of the full
energy supply. There are some necessary components for further development and
implementation of renewable energy sources, and these components involve not only a
flexible generation system but also network expansion, demand-side integration, and
storage. As the energy storage is a much needed component that can facilitate a low
carbon energy system, energy storage technologies find their applications in two major
areas, and these are electricity network energy storage and transport/mobility. Interest
toward energy storage has also grown due to technical and innovative progress in the
field of energy storage technologies. Additionally, energy storage can be considered
from different perspectives, which always give corresponding benefits, emphasizing
the importance and attractiveness of energy storage.

Keywords: energy storage system, renewable energy, energy supply, storage

technologies, energy storage efficiency

1. Introduction

A strong deployment of flexibility solutions for energy storage is necessary to

provide the system with the capacity to adapt the dynamics of the load from the
frequency response to interannual flexibility. The main candidate for such solutions to
offer flexibility networks, response to demand, and dispatchable and flexible energy
production is energy storage.
There are five major subsystems in energy power systems, namely, generation,
transmission, substations, distribution, and final consumers, where energy storage
can help balance client demand as well as the generation itself.
Energy storage is a making a lot of possibilities for technology for various applica-
tions, such as power top shaving, renewable energy utilization, boosted structure
energy systems, and advanced transporting within multiple areas. Important ele-
ments regarding application of energy storage necessary to explain in the introduc-
tion are:

1
Energy Consumption, Conversion, Storage, and Efficiency

• Peak charge or discharge rate of storage—as the maximum power or rate of

energy transition to or from storage,

• Peak storage – the largest possible size or capacity available for storing energy.
We can simply calculate and get more information about this peak storage
capacity if we take into account two factors - namely the discharge speed and
the number of peak storage hours that the device where the energy is stored, can
actually provide for us,

• Energy density—the sum of energy that can be contained in each mass of a

substance or system [1].

In the process of productive use of energy storage, a balance needs to be struck

between implementing frameworks that facilitate cost monitoring and establishing a
secure climate for investment in the field.
Energy storage is also one of the leading forces in the implementation of renewable
energies and plays a key role in sustaining a strong and efficient modern electricity
grid, with minimizing the power volatility, increasing the reliability of the electrical
grid, and allowing the storage and delivery of electricity produced by intermittent
renewable energy sources.
In terms of how to ensure transparency and predictability for market participants,
we have learned that adaptation policies that incorporate cost-tracking capabilities of
technology are the perfect way to do this.
To reduce costs, which is one of the most contentious topics relating to storage,
one of the most successful approaches was to tightly track costs as the share of the use
of renewables and energy mix in general expanded.
If renewable energy prices continue to fall and grid parity is reached in various
countries, a new period of policies will be required to ensure further growth of
renewables in the energy mix.

2. Importance of energy storage

Energy storage is important for developing electricity, since storage technol-

ogy allows us to ‘reserve’ electricity, which is of tremendous advantage not only in
terms of technical growth but also in economic terms. As energy storage is being
used more often than ever before, diversification and protection of supply have
improved, which means that the energy market will be balanced. Another energy
storage aspect is the use of green energy sources. Ancillary networks for grid
convergence are probable options for the advantage of clean energy sources. Asset
utilization is supported as well as voltage control and device stability due to the
likelihood of a long-term reserve, which is not necessarily feasible for any form of
storage technology [2].
The second application is transport and mobility, but this form of application is
not as large as for the usage of electricity, but even energy storage in this area provides
the possibility of minimizing fuel consumption by providing a kinetic force against
a gasoline-fueled internal combustion engine. A particular interest can be defined
by the lengths of the charge/discharge, which will be deemed to be the most relevant
features that have contributed to a great deal of concern on the end-user side.

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Energy Storage Efficiency
DOI: http://dx.doi.org/10.5772/intechopen.109851

Energy storage in transport and mobility has benefits on a broader scale, as

increasing system reliability and reducing greenhouse gas emissions and technology
related to this form of storage are flywheels or supercapacitors [2].
Prioritizing the use of energy from the on-site renewable energy source over the
utility grid (based on fossil fuel) also aims to minimize the consumption of fossil
fuels and, as a result, to advance the priorities of the clean environment [3]. In 2015,
the European Commission released two Communications: “Providing a New Deal for
Energy Consumers” and “On a New Energy Market Layout” [4]. Their message was that
there are three columns of future customer energy plan, which include:

a. Consumer empowerment,

b. Clever houses, work environment,

c. Information monitoring and security.

The importance of this was clearly emphasized from the beginning: minimizing
energy expenses with self-generation and consumption [4] as well as increasing the
customer’s role via intermediation and cumulative engagement systems [5].
To fulfill the environmental and energy policy goals of the European Union, the
energy market will have to experience systemic improvements in the coming decades,
where electricity will play a key role in the transition phase and increase its share of
final energy use.

3. Application of energy storage technologies

Energy storage offers a variety of useful services and cost benefits to electrical sys-
tems, and companies are adopting storage technology for a variety of reasons. Large-
scale energy storage also allows today’s electrical systems to operate more efficiently.
This efficiency gain means lower costs, less pollution, and more stable power.
Traditional energy sources such as coal and natural gas power plants must
be cycled on and off in response to changing demand and rarely operate at peak
efficiency. Not only does this make energy more expensive but it also creates more
pollution than is necessary to meet our energy needs. In addition, due to long start-up
times, these large-scale power generation facilities cannot keep up with real-time
demand spikes, which can lead to blackouts.
It is possible to use the technology for a variety of applications, ranging from
offering ancillary services to grid operators to reducing end-user costs behind the
meter. There are a diversity of uses for pumped hydropower, flywheels, and thermal
storage systems; however, battery energy storage systems have seen the most use
across a wide range of applications.

• Energy arbitrage

Using energy arbitrage, prices can be offset in markets characterized by

significant variations in locational marginal prices (LMPs) over time. Low LMP
levels are used to purchase and store wholesale electricity for resell when high
LMP levels are reached.

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Energy Consumption, Conversion, Storage, and Efficiency

• Black start

In the event of a network-wide power outage, the black start tool is used to restore
power. Since it has to work without being connected to an energy source, it can cause
many problems. Energy storage systems are ideal for black start applications because
they can operate in standby mode and restart other grid systems on their own.
Hardware-in-loop (HIL) simulations, optimization algorithms, and other intel-
ligent methods and techniques are essential and appropriate for advanced energy
management technologies to boost storage life and operability. The HIL energy storage
testing enables the optimum calculation of battery capacity and energy density along
with the algorithm management tuning. In general, HIL gives insight into the opti-
mum storage configuration. HIL simulations are also used as part of the validation
process of either machine models running in real time or laboratory testing of compo-
nents outside their traditional system [6].
The operation of an energy storage device may pose a problem of optimization
where the cost function is defined by a financial metric, a grid gain metric, or a
combination of the two. Restrictions are placed on the model and on the features of the
energy storage system. There are many optimization methods that are mostly applica-
ble to decision issues, which are mathematical programming, stochastic programming,
dynamic programming, and optimal control. Predictive strategies are a model-free
monitoring technique that uses weather forecasts without model or historical evidence.
Control of temperature settings is also suggested as their control at the component
level is simple to be applied by traditional controllers. In the sense of the choice of
parameters, it can be defined as: weather forecast only and/or weather forecast and
building characteristics. If we regard the weather forecast only, the controller calcu-
lated the setting of the wall temperature as a function of the cloud forecast and the
actual electrical price situation relative to the optimum price. Compared to unpredict-
able performance, thermal comfort was vastly improved, and the price and energy
savings were recorded at 41% and 30%, respectively. Thus, this form of predictive
control could provide good results in the case of an active storage device [7].

4. Key attributes of energy storage

• Reducing imbalances between energy demand and production.

• Managing the amount of power required to supply customer when it is needed.

• Improving power efficiency and secure supply of electricity to customers.

• Enhancing the stability and reliability of transmission and delivery systems.

• Increasing the use of current facilities, deferring or removing expensive upgrades.

• Strengthening availability and improved market demand of distributed genera-

tion sources.

• Improving efficiency of green energy generation.

• Cost savings by capacity deferral and transmission of payment [8].

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Energy Storage Efficiency
DOI: http://dx.doi.org/10.5772/intechopen.109851

4.1 Advantages and disadvantages of energy storage

Without storage, the production and use of electricity must still be balanced. And
since generation and consumption are physically different, transport capability is also
a limiting factor. Owing to these limitations, the value of energy on wholesale markets
will change rapidly and considerably over time, often even adversely. Electricity spot
market rates reflect this abrupt shift in value [9].
Various storage devices are found in energy systems. They can be cataloged as:
chemical or electrochemical, mechanical, electromagnetic, or thermal storage.
Generally, the energy storage plant consists of a storage medium, a power conver-
sion device, and a balance of plant [10]. Obviously, these forms of energy storage
have many promising features, but on the other hand, certain important elements
are still lacking.
Electricity storage systems have major beneficial energy, economic, and environ-
mental impacts:

a. Reduction of backup power plants by satisfying fluctuations and peaks in demand,

b. Mitigation of electricity-loss costs by bridging the difference during power out-

ages and by easing short-term volatility,

c. Support for green energy by smoothing out the uncertainty of renewable energy
sources and allowing electricity to be dispatched as needed,

d.Steadily upgrading production and costs.

Despite the apparent benefits for the use of storage systems, it is evident that more
measures are needed to address the major obstacles. The key one is the initial capital
cost of storage per kW of all storage technology. It should be remembered that the
cost of using Pumped Heat Electrical Storage (PHES) and Compressed air energy
storage (CAES) systems is comparatively low. Battery technology is less efficient than
PHES technology but can be found to be comparatively cost-effective.
While there have been significant technological improvements in energy storage
systems, in many countries, it is still not cost-competitive for electricity consumers
(whether at a residential, commercial, or utility scale) to store their energy. It means
that when a consumer demands electricity, supply across the transmission and distri-
bution networks must be carried out in real-time. One of the biggest disadvantages of
energy storage is the fact that energy storage usually uses electricity and stores it but
afterward distributes it back to the grid, which is called “round-trip” as a proportion
of energy put in to energy returned, measured in %. This is inefficient, because the
energy lost in the process of this round trip could be stored better, and no wastage of
energy would be possible in this cycle. It depends on the use of storage technology;
the higher the round-effectiveness, the lesser will be the amount of energy lost [11].
The last disadvantage is certainly the necessity of a significant amount of additional
energy, which represents a reserve used for energy storage [12]. Reserve or in other
words “back-up” can have two types, i.e. capacity and operational backup. The opti-
mum proportion of variable renewable energy (VRE) sources in the composition of
energy sources depends on different factors [13]. Backup power, network flexibility,
transmission-system quality and capacity [14], as well as load efficiency character-
istics [15] and real local weather models will determine the amount and variety of
5
Energy Consumption, Conversion, Storage, and Efficiency

VREs required to backup and that can be safely fed into the system. By adding storage
space to the energy grid, it is possible to gain greater resilience of VRE by supplying
contingency ability for peak load shaving or valley loading [16]. There is considerable
variation in national markets because of the different endowments of indigenous
fossil fuels and renewable energy potential, levels of technological development,
and environmental and energy security risks. As a result, the relative importance of
each of the above characteristics defining electricity as a ‘mixed good’ varies between
countries [17].

5. Types of energy sources

5.1 Hydroelectric (hydropower) energy

Hydroelectricity (hydropower) is generated by the gravitational flow of water

through the turbine attached to a generator. Most of the hydropower is created from
water stored in a reservoir with a wide dam. The largest hydropower plant in China is
currently in operation with 22.5 gigawatt (GW). The rising portion of hydroelectric-
ity is created by water flowing down the river straight through the turbine or by water
flowing via the pipes and the turbine near the spur of the river before returning to
the river, and this form of hydroelectricity is called run-of-the-river hydropower.
Advantage of it is that vast areas of land are not submerged behind a dam, but on the
other hand, a smaller volume is valuable for storage [18].
Environmental impact relies in some cases on eliminating the likelihood of
carbonic acid gas release during power generation. It has been found that areas with
hydropower potential that value more highly to utilize the sources of power that
depend on fossil fuels emit up to four times more the quantity of greenhouse emission
than necessary [19]. This suggests that hydropower production does indeed have the
power to cut back greenhouse emissions.
Increased opportunities for hydropower would also result from changes in
how electricity markets are run. Sub-hourly scheduling tries to encourage greater
participation and compensation for flexibility. Hydropower may be compensated
for forward market scheduling. Independent System Operators (ISOs) arranging
hydropower resources across several hours or days would also enable hydropower
optimization in the context of other resources. This “fixed-schedule” method might
boost plant earnings by 63–77%. Why? Because the existing market structure
advantages fossil fuel producers with time-independent output. They may burn fuel
to create power at any time of day or night. Pumped hydropower or energy-limited
hydropower does not have this benefit and must instead guess the lowest cost time to
“refuel” and the greatest price time to sell.

5.2 Wind energy

Wind turbines convert the mechanical energy of the wind right into electricity
[20]. Wind speed is normally measured at a height of 10 m. The suspensions in the
elevation will adjust the wind speed at just a few hundred meters. Hills or moun-
tains have a major impact on wind direction. The technical device, such as the wind
turbine, should draw as much input out of the wind as possible with the use of wind
power. Wind turbines slow down the wind by transferring energy from wind to
electricity. However, the pre-and post-wind turbine mass flow remains steady [21].
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The maximum power in the wind extracted from the wind turbine is 59% and with
connecting the principle of preserving mass and momentum through a theoretical
disk that extracts energy from the air result is called Betz’s law [18].
Wind turbines are often found in the coastal region of mountain passes, ridges,
and offshore. Onshore wind farms typically consist of some thousands of midsize
1–8 MW generators to power portions of communities. Offshore wind farms typically
consist of several to a lot of medium- to large-sized 3–15 megawatt (MW) turbines;
for example, one of the 12 W generators specifically built for overseas use has an
elevation of about 150 m above the sea level, which means that the rotor capacity is
220 m, which is the height of the Eiffel Tower and can provide electrical energy for
approximately 16,000 homes.
Collecting and storing energy from wind turbines is possible using battery storage
with electrical batteries, which is a very common type of storage for wind and solar
energy. Other solutions could be compressed air storage and hydrogen fuel cells to
store energy surplus [22].
To get a perfect score of 100% on the efficiency table, the wind turbine must
capture the full kinetic energy of the wind. Using all of the kinetic energy, how-
ever, will result in zero velocity or no wind on the other side of the turbine. At the
same time, we must keep in mind that these wind turbines are intended to operate
at a specific speed that maximizes production. If the wind turbine is designed
to produce the most energy at a speed of 20 mph, the highest amount of energy
produced will be at that speed, while the amount will be less at lower speeds. For
comparison, traditional power plants have a theoretical maximum output or load
factor of roughly 50% on average. Although the same is true for wind power, the
fact that it is an environmentally benign and renewable source of energy gives
it the necessary push. The entire concept that promotes wind power as the best
future power source is based on the idea of maximizing output while keeping
expenses to a minimum. When the initial cost of infrastructure development and
payback time are considered, it is safe to say that wind power is cost-effective in
the long run.

5.3 Solar PV

Solar power may be concentrated, better known as concentrated solar power

(CSP), through mirrors or reflective lenses that focus sunlight onto a collector con-
taining a fluid to heat the fluid to an extreme temperature; then, the heated fluid
flows from the collector to an engine, where a little of it is converted to electricity,
and a few kinds of CSP allow the warmth to be stored for several hours. One kind of
collector is termed “long parabolic trough mirror reflectors, “and therefore, the second
type is “central tower receiver “with a field of mirrors surrounding it. Within the
central power, the focused light heats a circulating storage fluid known as concen-
trated solar power (CSP). CSP is a dispatchable form of solar power, whereas PV is
not to be dispatched. PV only works while the sun is shining. CSP can be dispatched
on demand, much like flipping on a solar switch. So, CSP is not competing with PV
[23]. During days without sun, a storage plant additionally produces electricity but
only for few hours, so basically without storage, the CSP ability to store is around
25%. With storage availability, the capability element raises to around 65%. CSP is
great for helping to satisfy the power need and power requirements, and importantly,
CSP collectors can ramp their power manufacturing up and down quicker than coal or
nuclear plants [24].
7
Energy Consumption, Conversion, Storage, and Efficiency

Photovoltaic systems demand more maintenance than other forms of energy

generation. Solar systems has a tendency to become the greatest source of power gen-
eration by boosting the efficiency of solar cells, which is now around 43%, although
manufacturing these cells has not yet been accomplished. A battery will never drain
below 50%, preventing the cells from deteriorating and thereby increasing the bat-
tery’s life expectancy. It is evident that a battery with double the amperage must be
utilized instead of a battery with the same power as required. All of these elements
influence solar system efficiency; therefore, by boosting solar system efficiency,
power system stability may be enhanced. As a result, we might claim that this strategy
is still one of the most expensive.

5.4 Bioenergy

Bioenergy (from conventional Greek bios, life) is extracted from organic materi-
als such as wood, agricultural products, or organic waste and is originated from a
recently produced organic material, known as biomass, as an anti-fossilized biomass
fuel. It is also used in electricity, heating, cooling, and transport. It can be used in
liquid forms, including biofuels; in gaseous forms, like biogas; or in solid forms.
Bioenergy is the oldest form of energy used by humans, but it is also at the forefront
of Europe’s new attempts to step away from fossil fuels and decarbonize our economy.
As a result of European climate and energy policies, the use of bioenergy is increasing
exponentially [25]. European policies consider all bioenergy to be renewable energy
and the foremost important measure from the EU within the fight against tem-
perature change, so much hope currently lies on the performance of bioenergy. The
sustainable use of biomass for heating/cooling and the generation of electricity will
result in a variety of energy, economic, employment, and environmental benefits.
Biomass can be processed at times of low demand and can be used to provide energy
as required. Depending on the type of conversion facility, biomass will also play a role
in managing the growing share of intermittent renewable energy from wind and solar
energy in the electricity system. The possibility to store biomass enables the produc-
tion of heat to satisfy seasonal demand. In addition, biomass enables the production
of high-temperature heat that cannot easily be provided by other low-carbon sources
[26]. In 2011, 95% of bioenergy was consumed as heat, 4.7% as transport fuel, and
72,700 kWh as electricity [27]. As far as bioenergy storage is concerned, the sufficient
way to store biomass is to accommodate seasonal production and to ensure daily sup-
ply to the biomass utilization facility [28]. Wet storage systems may be used for higher
yield intended for wet use, such as in brewing and anaerobic digestion systems, with
tight monitoring of storage times to prevent unnecessary depletion of feedstock.
Storage structures usually used for dry agricultural residues should be secured against
spontaneous combustion and excessive decomposition, and the actual storage mois-
ture depends on the type of storage used [28].
The effectiveness of various biomass-to-energy conversion processes var-
ies greatly. For example, producing electricity from pure biomass is only about
30–35% effective; however, producing heat from the same material is frequently
more than 85% efficient. In general, utilizing bioenergy for heat and electricity is
a far more efficient approach of decreasing greenhouse gas emissions than using
bioenergy for transportation fuel. Organic waste and agricultural or forestry
residues are more resource-efficient than many other types of feedstock because
they do not place additional strain on land and water resources and offer significant
greenhouse gas savings.
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DOI: http://dx.doi.org/10.5772/intechopen.109851

5.5 Ocean energy

Oceans cover about 70% of earth’s surface area, making them the globe’s biggest
solar batteries. The installed capacity of ocean energy in 2019 was 530 MW [29].
Sunlight warms the surface area of water by a lot compared to the deep ocean
water, and also this temperature-level difference develops thermal power. Simply,
a tiny low part of the heat trapped within the ocean might power the planet [30].
Underwater compressed air energy storage (UWCAES) and underwater pumped
hydro storage (UWPHS) are the second type of ocean energy storage available at
the moment [31]. Air is contained in foldable bags on the seafloor in the UWCAES
system. This underwater storage system has a great advantage over its ground
equivalent. In standard CAES, air is contained in a tank of a set capacity, while the
compressed air releases the pressure within the pipe, which reduces the flow to the
turbine. UWCAES systems operate well at depths of 400–700 meters below sea
level; this water depth provides the pressure required for most turbine compressors
where compressed air energy storage is usually used. Seawater is used as a working
solvent instead of air in the UWPHS system. This system uses solid steel or concrete
spheres. To ‘release’ as an energy storage unit, the mechanism allows high-pressure
seawater to penetrate the sphere through an opening by means of a turbine attached
to the generator. Such energy storage systems are best used in peak-saving grid
applications. Round-trip efficiencies for UWCAES and UWPHS are in the range of
70–85%. Concerns on how to create the most efficient energy storage of seawater are
still on the way and raise the most important question-how to install them and how
to do it cost-effectively [31]?

5.6 Geothermal energy

Geothermal energy is derived from hot water or steam that, in both cases,
emanates from hot rocks or soil and exists below the earth’s surface. Some of the
high-temperature rocks are discovered around volcanic activities as well as low-tem-
perature rocks and soil that we can find everywhere, including in the ice field [18].
Geothermal energy is used to supply heat directly or at high temperature it is able to
supply electricity. Lower temperature (0C–120C) is employed to warm buildings, and
hot-temperature warmth (120C–400C) is normally used to generate electrical power.
For electricity production, there are three types of geothermal plants: flash steam, dry
steam, and binary geothermal plant [18]. Energy storage for geothermal energy works
by technology that transfers heat energy from underground water to electricity, and
after that, extra energy is stored into the underground water. Geothermal storage also
has disadvantages such as fluctuation in the binary geothermal plant, mostly used in
the US as a heating agent, that can cause more damage than we imagined. If it is used
for other purposes, environmental impact is pretty huge, especially when geothermal
fluid is not stored and recycled in a pipe, which can then absorb toxic compounds
such as arsenic, boron, and fluoride. These poisonous compounds may be taken to the
surface and leak as the water evaporates [32].
In the framework of the effectiveness of geothermal energy, we are mainly talking
about the fact that geothermal systems can provide any combination of forced-air
heating, radiant in-floor heating, domestic hot water, and air conditioning all from
the same unit.
The heating efficiency of a geothermal heat pump is assessed by the coefficient of
performance (COP), while the cooling efficiency is reflected by the energy efficiency
9
Energy Consumption, Conversion, Storage, and Efficiency

ratio (EER). These metrics relate the number of units of heat given or withdrawn
to the number of units of power consumed to complete the task. Ground source
heat pumps generally provide 4 units of heat energy for every unit of electricity
consumed.
So, we are talking about 400% effectiveness. In comparison, the most efficient
conventional systems on the market today are just 98% efficient (Figures 1 and 2).

6. Energy storage technologies

Energy storage technology is often classified on the basis of its use in large- or
small-scale applications. Flywheels, pumped energy storage, and compressed air stor-
age are among the forms of storage typically used in large scales. Battery systems are
expected to have a significant impact on the small-scale installation of clean energy
resources in commercial and residential buildings [35]. Some technologies provide
short-term energy storage; others can endure for much longer. In short-term response
energy storage devices as a short-term duration applications whose big advantage is
quick discharging, we identify flywheels or supercapacitors. Moreover, their applica-
tion prevents the collapse of power systems, and use of short-term response energy
system is more practical in terms of renewable energy like wind [36]. Use of long-
term energy storage devices is expected to be functional even more in the upcoming
years, and these devices are compressed air technology, batteries, or pumping hydro
storage. Energy storage contains technologies such as flywheels or flow batteries that
are part of a so-called “distributed” storage, and technologies such as PHES or CAES
are very important in “bulk” storage [37]. Figure 3 shows these technologies divided
into categories:

Figure 1.
Schematic of a typical binary cycle geothermal power plant [33].

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Energy Storage Efficiency
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Figure 2.
Storage types and applications [34].

6.1 Battery energy storage system (BESS)

A battery is an electrochemical cell that transforms chemical energy right into

electricity. While the battery is filled, the direct current is transformed into chemical
energy; when the chemical energy is discharged, it is converted back into the flow
of electrons in a direct current form [36]. Batteries are the most common storage
devices for electricity. However, the term battery consists of a variety of technologies
applying various operating concepts and materials. It is necessary to differentiate
between two essential principles of battery: electrochemical and redox flow [36].
11
Energy Consumption, Conversion, Storage, and Efficiency

Figure 3.
Energy storage types and their discharge time [38].

Battery-storage growths have mainly focused on transportation systems as well

as smaller systems for portable power or periodic backup power, although system
dimension and volume are less crucial for grid storage than portable or transport
applications [39]. Future utility applications of batteries could be focused on pro-
viding peak distribution capability deferral as well as top shaving at the substation
along with reliability improvement [40]. Study into battery storage at the grid range
is concentrated on longevity for multitudes of charge/discharge cycles and life time,
high round-trip-efficiency, capability to react rapidly to adjustments in lots or input,
and practical capital costs [41]. Utility packages of batteries in future might be
targeted on supplying distribution ability deferral and peak shaving on the substa-
tion in addition to reliability enhancement [40]. Batteries are regularly compared to
supercapacitors for various energy applications, and it is predicted that exploiting
their features (i.e., frequent electricity storage functionality without sacrificing
their cycle) by means of integration should help cope with future electric-storage
demanding situations. For big-scale electrical storage (e.g., strength from renewable
strength sources), the use of flow batteries seems to be the most appropriate option,
even though charges and development continue to be a challenge [42]. Attributes of
battery storage system are:
Rated power capacity—the overall viable rapid discharge functionality (in kilo-
watts [kW] or megawatts [MW]) of the BESS, or the maximum rate of discharge that
the BESS can obtain, starting from a completely charged position [43].

• Storage capacity—the overall volume of energy stored (in kilowatt-hours [kWh]

or megawatt-hours [MWh]).

• Storage length—the amount of time for storage to discharge to its energy capac-
ity earlier than the exhaustion of its energy capacity.

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Cycle lifestyle/lifetime—the period of time or cycles that a battery storage unit

can deliver daily charging and unloading earlier than loss or full-size deterioration.
Self-discharge occurs while the accumulated charge (or energy) of the battery is
depleted by internal chemical reactions or when it is not discharged to do work for the
grid or the consumer. Self-discharge, calculated as a percentage of the rate misplaced
for a given period of time, decreases the amount of energy needed for discharge and is
a significant criterion that is not to be ignored in batteries designed for longer-lasting
programs [43].
BESSs account for around 5% of worldwide energy storage capacity, far less than
pumped-storage hydropower. According to Fortune Business Insights, the global
battery energy storage market is estimated to reach €19.74 billion by 2027, growing
at a 20.4% compound annual growth rate (CAGR). Given its availability, efficiency,
and recent developments in electrochemical storage technology, a BESS is expected
to be a leader in energy storage in the next years. Alternatively, on the other hand,
it can compete with battery power storage systems, gaining the upper hand in some
situations.

6.2 Pumped hydroelectric storage (PHES)

Pumped hydroelectric energy storage (PHES) is the most established storage

innovation in the world today. The International Energy Agency (IEA) estimates
that PHES installments make an increase in capacity of 26 GW, and energy storage
capability of PHES will overtake battery storage globally by 2050. The current storage
volume of PHES plants is measured at 9000 GWh, although the battery capacity is
just 7 GWh [44]. By 2023, electricity production from PHES has expanded by one
quarter to 146 TWh; however, the estimated operating hours of the PHES were
considerably unpredictable, and the spectrum of capacity factors was broad due
to the uncertainty of market conditions. Storage consist of a reservoir, specifically
upper and lower [18], Besides the power stored behind hydropower dams, 97% of
all energy stored for electrical usage is currently in the form of pumped hydropower
storage [18]. Where current surplus energy or costs are low at the moment, water is
pumped through pipelines from the pumping station in the lower reservoir to the
upper reservoir, as seen in Figure 4. At the same time, as pumped hydro storage is
introduced into the grid or the capability of the water reservoirs is more advanta-
geous, the hydropower facility can provide most of the load necessities, obviating the
need to build huge top-load fuel mills [46].
Pumped storage hydropower (PSH) systems account for more than 94% of the
global energy storage capacity. Water-spinning turbine, as water flows down from
a higher tank to a lower reservoir, generates electricity in PSH. This energy storage
system (ESS) may provide large storage capacity at a low cost, fulfilling the needs of
bigger electrical networks. The difficulty with pumped hydro storage systems is that
they take years to create and need significant investments.

6.3 Flywheels

Flywheel energy storage systems use a rapidly rotating flywheel to help convert
mechanical energy to electrical energy and back to electrical energy. This system
consists of four main parts as follows:
Solid cylinders, bearings, motor/generators, and vacuum-tight housings. To
generate kinetic energy, the motor draws energy from the electrical grid to rotate a
13
Energy Consumption, Conversion, Storage, and Efficiency

Figure 4.
Pumped hydro storage [45].

cylinder or disc at speeds up to 60,000 rpm. Flywheels are considered “dynamic”

energy storage systems because they must be accelerated by an external force before
they can store energy. A flywheel is a rotating wheel or disk, mostly made from
steel or carbon fiber, that turns around an axis and is usually used in short-term
energy storage devices for motion applications such as powertrain engines and road
cars. In these applications, the flywheel soothes the power load during decelera-
tion by dynamic braking operation and provides a lift during acceleration [47].
A flywheel generates power as a rotational kinetic energy and later converts the
power into electrical energy. The flywheel is an electric motor, a holding system
for energy, and a generator at the same time. As excess power is available, the
power and electric motor spins the flywheel roughly at a high speed. For the energy
applied to the flywheel, a small amount is used to hold the flywheel rotated; the
remainder is storage energy [18]. Flywheels are suitable for storing surplus elec-
tricity from intermittent solar and wind power on the electrical grid; on the other
hand, flywheels cannot conserve an immense amount of power due to the fact that
they have a high loss rate, so the generated electrical energy can be consumed very
rapidly and has a high loss rate.
Because of these losses, the cost per kWh of energy stored is high, and power-
specific costs are relatively low [48].
Simply put, the advantages and disadvantages of flywheels can be summarized
as systems notable for their longevity (up to decades), easy maintenance, and fast
response time. But they can only operate for a short period of time (Figure 5).

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DOI: http://dx.doi.org/10.5772/intechopen.109851

Figure 5.
Flywheel energy storage [49].

6.4 Compressed air energy storage (CAES)

The method to gather periodic renewable power is fixed by utilizing compressed air
power storage space. This manner of storage opens up possibilities to keep power for a
long-time period and then to resupply that electricity to the grid. Excess recurring elec-
tricity is made use of to compress air. Using this form of storage ensures that intermit-
tent renewable energy may be stored for a long period of time, in contrast to flywheels
or supercapacitors. The place of CAES is mainly underground, and globally, there are
just a few buildings, just one in Europe-Germany and two in the U.S. CAES is normally
attached to a power-producing system, such as a wind turbine, and when energy is
required, compressed air is expanded and transferred back to a power-extending
engine. For better perception, Figure 6 contains how the CAES system looks exactly.
CAES systems are widely employed in the manufacturing and mining industries.
However, adopting this technology in some applications, particularly residential solu-
tions, and their installation itself might be difficult and expensive.

7. Economic aspects of energy storage

Market integration means the process of step-by-step harmonizing of the rules

of the various power markets, culminating in the harmonization of all cross-border

15
Energy Consumption, Conversion, Storage, and Efficiency

Figure 6.
CAES [50].

market rules that allows electricity to respond to price signals and flow freely across
borders (as do goods and services in the internal market).
As several aspects of the evolving modern energy economy, the greatest results
come from the cooperation of bringing components mentioned above together in
an actively and carefully built system that consists of: dispersed renewable energy
generation, scalable baseload infrastructure, smart grid, demand response, and rapid
energy storage response [51]. Markets integrate into regional markets for cross border
trade of electricity and its continuously increasing.
A reinforced, interconnected European network requires coupled markets, versatile
production, increased backup and storage capability, demand response measures, clear
worth signals, responsiveness of support, and cost-effectiveness to balance the fluctua-
tion of energy sources across Europe [52]. These are the aspects that help to improve
the functioning of the electricity system and financial market [53].

7.1 Energy storage systems costs

The cost of large-scale mechanical storage devices is influenced by location.

Pumped hydro systems need locations that can accommodate both a storage reservoir
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and a sufficient elevation variation to produce potential energy. Compressed air

energy storage (CAES), like pumped hydro systems, has been constrained by the
availability of natural resources to supply low-cost air storage [54]. Calculation of
related costs and operating prices for energy storage devices is a problem because of
not only a wide variety of innovations but also a multitude of external factors.
In contrast to pumped hydro and compressed air systems, where the storage
medium is virtually free, finding low-cost heat-retaining materials is crucial for
thermal storage systems. Although heat may be stored directly as steam, molten salts
are the most popular choice since they can reach greater temperatures [55].
Although most studies employ such a meter, there is no globally accepted standard
or method for calculating the costs of energy storage, due to the fact that different
metrics emphasize different aspects of storage cost and operation.
One way to make apple-to-apple comparisons between storage technologies
is through the use of the Leveled Cost of Energy (in this case, the Leveled Cost
of Storage or “LCoS”), where the technology per kWh is calculated as a function
of the total project life cost divided by the expected lifetime power output. The
cost of electricity in this calculation includes any capital expenses associated with
electricity generation for direct consumption (ccap, gen), capital expenses for
electricity generation that goes to storage (ccap, gen2stor), capital expenses for
storage technologies (ccap,stor), fuel (pfuel), or purchased electricity (pelec)
costs (accounting for generator-efficiency losses, gen, and round-trip-efficiency
losses of storage charge and discharge, RTE), and to compute LCOE, costs may
be discounted (using discount rate r) to find the net present value, which is then
divided by the discounted quantity of energy provided during the system lifespan
(Figures 7 and 8).
Whatever calculation is chosen, one important point to make when calculating the
LCOE or LCOS is that the cost is also affected by the demand for electricity or stored
energy. Although a storage system may be technically capable of cycling continuously
for 24 hours a day, demand is determined by use patterns. This implies that even if
a system is built to provide longer-duration storage, actual cycling behavior might
mean that the charging and discharging cycles are frequently just a fraction of the
installed capacity, limiting the power produced by the system and raising the level-
ized cost [54]. For example, where a compressed air energy storage (CAES) system
may have a higher initial capital cost than a Li-ion battery system, the CAES system’s
lifetime power output is far higher than the Li-ion battery system (which normally
lasts only 10 years), which reduces the LCoS [57].
However, the LCoS formula does not adequately represent other crucial points,
including spatial limitations (vital for CAES and pumped hydro systems), safety
issues about battery explosions, and technological features that are best suited for var-
ious applications. Seems that we are still in the process of creating or implementing a

Figure 7.
LCoS calculation [56].

17
Energy Consumption, Conversion, Storage, and Efficiency

Figure 8.
LCos calculation based on different storage types [57].

formula for calculating energy storage efficiency that would take into account all the
abovementioned parameters.
Other costs to consider are:

• Construction and commissioning

C&C expenses, also known as engineering, procurement, and construction

(EPC) costs, include site design costs, equipment purchase/transportation costs,
and labor/parts for installation [58]. Cost reductions for C&C are not likely to be as
significant since these expenses are more mature than those that are more directly
related to each technology. The cost of grid integration is primarily determined by
the system footprint and weight (with discrete steps in costs), the degree of fac-
tory assembly versus on-site assembly (the total cost may be the same regardless
of where the assembly occurs), and the architecture (open racks vs. containerized
systems) [59]. The literature consensus C&C expenses were raised by 15% for the
technology with the lowest energy density indicated as the highest liters per watt-
hour (L/Wh). This figure was multiplied by the normalized volume per watt-hour
multiplied by 0.33 to obtain a lithium-ion C&C cost of €100/kWh, which is some-
what higher than the €80/kWh reported by McLaren et al. [60]. While improve-
ments have been achieved in recent years, the anticipated C&C cost of €100/kWh
is on the low end of current forecasts, with minimal room for future cost reduction
owing to “learning.”

• Operations and maintenance

Expenses that are necessary to maintain the functionality of the storage system dur-
ing the period of its economic lifespan are linked to the demand for energy. According to
the available literature, fixed O&M costs for all battery chemistries range between 6 and
€20 per kW-year, with the majority falling between €6 and €14 per kW-year [58]. While
lithium-ion batteries may have higher costs for safety and battery management systems
(BMSs), the larger size of other battery technologies can result in higher O&M costs, and
their relatively safe operational characteristics contribute to lower O&M costs.
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7.2 Financial instruments and support

A number of public or private funding instruments are currently in operation

in European countries to promote renewable energy and energy storage itself. The
choice of instruments depends on the point at which technology or projects are cre-
ated. The bulk of funding instruments come into three primary categories:

• Energy market tools (feed-in tariffs, premium, green bonds, tenders, fiscal
incentives);

• Equity funding mechanisms (venture capital, equity, R&D grants, capital/proj-

ect grants, contingent grants);

• Debt financing mechanisms (mezzanine debt, senior debt, guarantees).

The criterion used to test the funding systems, the financial instruments, and the
support are as follows:
Efficiency-applies, on the one hand, to extra generation costs and, on the other, to
regulation costs. Although the additional generation costs reflect the welfare effects in
general, the policy costs additionally consider the distributional effects or the issue of
which stakeholder pays for the additional costs.
Effectiveness- analyzes the effect of funding systems on the business diffusion of
clean energy technology.
Certainty for investors-the degree to which policy instruments are capable of
minimizing the uncertainties of energy and renewable energy ventures, which could
be of a fiscal, technical, or political type.
Long-term competitiveness.
Market compatibility (only applicable to help schemes, not applicable) [61].

7.3 Financial benefits of energy storage

Energy management is a critical issue for businesses seeking to maintain and reduce
operational costs. Energy storage systems give businesses the control over distributed
energy resources, allowing them to save money on demand charges, provide critical
continuous power to protect against grid variability, and better integrate renewable
energy sources to foster more sustainable and financially sound business practices.
Every planning and execution approach should be connected to the real-time control
and organizational functionality of the ESS in conjunction with Distributed Energy
Resources (DER) in order to achieve a rapid integration process [62].
The bulk of C&I-scale(commercial and industrial) facilities must pay demand
charges based on peak power use. This expense often accounts for 30–70% of the
total energy expenditures on a commercial electric bill. Energy arbitrage can result
in significant cost savings by discharging energy during peak usage and cost periods,
reducing load during those peak periods, and resulting in lower demand charges.
Load shifting is a critical component of this method for lowering energy expenses.
BESS (described in Chapter 5 (5.1)) and related software assess consumption pat-
terns and storage to efficiently identify the ideal time to charge and discharge stored
energy, moving peak loads to off-peak hours.
Finally, BESS may be utilized to “smooth out” grid fluctuations, effectively
becoming the major source of site power and relegating the grid to a secondary
19
Energy Consumption, Conversion, Storage, and Efficiency

energy source. This allows the site to not only disregard grid power outages (and the
possible expenses associated with them), which are limited only by the site’s storage
capacity, but also maintain a constant power factor and eliminate any grid oscillations
that may compromise sensitive equipment.
Moreover, the energy storage could be used to adjust the amount of electricity pro-
duced from renewable energy sources. Energy is retained when demand and energy
prices are low so that it can be used when.

a. demand and energy prices are high and

b. output from intermittent renewable energy production is low [62].

• Cost avoid or revenue gain of ancillary services: it is well-recognized that

energy storage can provide many forms of ancillary services. In short, they are
what could be considered support facilities that are used to keep the municipal
grid running. Two of the more common ones are: the spinning reserve and the
accompanying load [63].

• Cost saving or revenue improvement by bulk energy arbitration: Arbitration

includes the procurement of low-cost power available during low-demand
storage times so that low-priced energy can be used or sold at a later time when
the price of electricity is high.

At present, in many parts of Europe, energy storage projects have to pay for both
extracting electricity from the grid and pumping power into it, and this legacy policy
has long been seen as both a major obstacle to making an economic argument for energy
storage and one that could be overcome reasonably quickly. The Committee of Members
of the European Parliament (MEPs) has recently pointed out that this is one of a number
of ‘shortcomings’ in network codes across Europe. Further changes will be made to the
European Energy Taxation Directive in 2023 to ‘ensure a harmonized taxation on all stor-
age and hydrogen production.’ In the meantime, the EU also responded to the fact that the
share of energy costs charged as tax is much higher than energy consumption itself [64],
i.e. one of the appropriate and important steps and solutions should be to tax reduction.

8. Environmental impacts and future promising technologies for

renewable storage

Key environmental impacts include: lifetime energy efficiency, lifecycle

greenhouse gas emissions, supply chain criticality, material intensity, recyclabil-
ity, and environmental health and social impacts as and safety and human rights.
Energy efficiency of the life cycle is important since high performance sustained
over a long planned lifetime minimizes the criteria for technological uptake and
the related impacts. Supply chain criticality recognizes not only the geological
availability of essential commodities but also the possible supply chain vulner-
abilities and threats associated with fiscal, technical, social, or geopolitical
influences. Owing to the high usage of nonrenewable materials in main energy
storage systems, content intensity is an important parameter. Battery storage
systems typically have a higher material density relative to other technologies.

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The recyclability of battery storage technologies has the capacity to minimize

high material intensity by recycle, reuse, or remanufacturing. Poor recyclability
highlights the need to implement innovative approaches to infrastructure and
technologies [65].
Environmental health is significant as an adverse effect on habitats or human
health. The supply chain will negate the benefits of moving into a green energy
system. Since batteries are material-intensive technologies, they have the most
important impacts. The effect varies depending on the location of extraction, manu-
facturing, and end-of-life due to variations in technologies, production pathways, and
local environmental and social norms. The most important mining impacts in China
include pollution and water and soil emissions from lead, graphite, and phosphate
mining, both of which have severe health impacts. There are important human rights
impacts associated with the resource market for lithium-ion batteries, in particular
lithium and cobalt. Cobalt mining is mostly undertaken by artisanal and small-scale
miners who work in precarious environments in handheld mines without adequate
protective equipment and widespread child labor.

8.1 Storage and future

Targets aimed at zero emissions are more difficult and costly than net-zero goals,
which utilize negative emissions technology to achieve a 100% reduction. Pursuing
a zero, rather than net-zero, aim for the energy system may result in high power
costs, making the achievement of economy-wide net-zero emissions by 2050 more
difficult.
Storage can help poor countries lower their power costs while also delivering local
and global environmental advantages. Lower storage costs enhance both the savings
in electricity and the environmental advantages.
For example, E-mobility as one of the possible solutions for energy storage in
coming years seems realistic. E-mobility is expanding, and now we are seeing hybrid
vehicles, e-bikes, scooters, and kick bikes on the streets. They will shortly be followed
by more fuel cell vehicles running on hydrogen. The use of all these vehicles will be
expanded beyond their planned use as means of transport to also provide energy stor-
age: they will charge when renewable energy is available in the system and feed back
into the micro-grid battery as required. Such vehicle-to-grid and vehicle-to-building
systems will become more prevalent as regulatory barriers are eliminated. With com-
pact storage with more secure solid-state batteries and hydrogen bottles, our phones
will never run out of batteries again [66]. Emerging battery storage systems would
reduce energy storage costs and boost new opportunities in the energy market. In the
coming decades, we are anticipating new types of batteries, such as solid-state bat-
teries, to increase the efficiency of airplanes, vehicles, or medical devices. The other
alternatives are sulfur-based chemistries, as their continued development would
ensure the appropriate use of renewable-grid installations or magnesium batteries,
which may meet their maximum capacity and be ready for commercialization within
the next 5 years [67].
We can utilize energy more efficiently and reduce carbon emissions by storing it.
Energy storage capacity would need to expand from 140 GW in 2014 to 450 GW in
2050 to keep global warming below 2°. Currently, just 3–4% of the power generated
by utilities worldwide is stored.
Conclusion? We still have a long and difficult road ahead of us.

21
Energy Consumption, Conversion, Storage, and Efficiency

9. Conclusion

Arising from government policies to minimize greenhouse gas emissions and

improve economic feasibility combined with storage, clean energy sources and more
advanced storage systems in comparison of 20 years ago will inevitably increase
dramatically over the next decades. To find out how this ‘Grid of the Future‘ will look
and work is a global problem that every nation will have to face in its own way. This
continues to be a main theme of future studies, as developed and emerging countries
face a wide variety of problems in terms of energy and power systems. While the
prospects for decarbonizing the energy market are facing significant challenges in
terms of technical breakthroughs, stationary energy storage has already achieved a
competitive edge, partially due to cost declines in the production of batteries. The
increase of incorporation of storage would lead to closer relations between supply and
demand in the transition to a decarbonized energy environment. As a consequence,
the value of the device would not depend on the volume and size of the hardware
used, as is the case for current storage modes (hydro- or fossil fuel-based). Storage
should also be known as an additional type of investment in grids (copper grid lines),
an aspect of demand for service responsiveness, and a stabilizing factor for power
grids. The energy storage market is increasingly shifting from an equipment-based
industry to a service-based industry where various device players (generators, grid
managers, aggregators, and final customers) will be given access to storage-related
facilities. This summary of energy storage shows the future role of emerging services
in the transition of energy systems. However, regulation and implementation of new
market rules across MS in the EU are essential. In conclusion, despite all the above
market problems, incomplete regulations, and the lack of legislation, the most impor-
tant human factor is the ability to cooperate that EU member states must understand
and ensure the functioning of the renewables market and their subsequent storage.

Acknowledgements

This paper, which I would like to add as my contribution to the book entitled
“Energy Consumption, Conversion, Storage, and Efficiency,” was developed indepen-
dently without the help of other persons, instructors, or external instructors.

Conflict of interest

“The author declares no conflict of interest.”

Notes/thanks/other declarations

I would like to thank my professor from the Technical University of Berlin, Mrs.
Lydia Scholz, who introduced me to this issue and helped me focus more on this area
during my studies. Last but not least, my thanks go to my partner Antreas for his
patience and understanding during writing.

22
Energy Storage Efficiency
DOI: http://dx.doi.org/10.5772/intechopen.109851

Author details

Patricia Scholczova
MBL, Bratislava, Slovakia

Address all correspondence to: patricia.scholczova@gmail.com

© 2023 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of
the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0),
which permits unrestricted use, distribution, and reproduction in any medium, provided
the original work is properly cited.
23
Energy Consumption, Conversion, Storage, and Efficiency

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