Renewable Energy and Storage: A Diffusion Analysis

Abstract

Electricity storage is a multipurpose technology that facilitates the integration of high levels of variable renewables, particularly wind and solar, in power systems. Although electricity storage promises to be a game-changer for the grid and utilities, there is little understanding on when it is likely to reach a tipping point. Such knowledge can help diverse stakeholders plan for the emerging electricity ecosystem. The paper provides a general framework, based on the Bass diffusion dynamics, a well-established technology adoption model to explain the long-run dynamics of electricity storage technologies. Furthermore, by mapping drivers of electricity storage adoption, we aim to inform energy policy and strategic decision-making.