Vanadium Redox Flow Batteries: Characteristics and Economic Value

Abstract

One of the main goal of energy transition is the decarbonization of global electricity networks. Toward this aim, the integration of Variable Renewable Energy Sources with the electricity grid has increased dramatically over the last ten years. However, the desire to obtain large fractions of electricity from VER has encountered many challenges mainly due to their random nature. The Vanadium Redox Flow Battery represents one of the most promising technologies for large stationary applications of electricity storage. It has an independent power and energy scalability, together with long life cycle and low long-term self-discharge process, which make it useful in applications where batteries need to remain charged for long periods of time while maintaining a state of readiness for use. The usage of such battery, coupled with variable renewable energy sources, allows to overcome the constraints linked to the limited dispatchability of the latter, thus favoring a large penetration of variable renewable energy source in the power grid. This article proposes to study the energy storage through Vanadium Redox Flow Batteries as a storage system that can supply firm capacity and be remunerated by means of a Capacity Remuneration Mechanism. We discuss a real option model to evaluate the value of investment in such technology.