Business Models and Profitability of Energy Storage

22 Pages Posted: 17 Jul 2019

See all articles by Felix Baumgarte

Felix Baumgarte

University of Bayreuth

Gunther Glenk

University of Mannheim

Alexander Rieger

University of Bayreuth

Date Written: July 17, 2019

Abstract

Storage technologies – such as batteries or hydrogen – are crucial for a transition towards a low-carbon economy as they complement intermittent wind and solar power generation without the emission of carbon dioxide to the atmosphere. Rapidly growing shares of these renewables, combined with the requirement for profit of potential investments, make clarity on business models and profitability of energy storage both urgent and essential. Here we identify the business models of conceivable storage applications, match them with available storage technologies via overlapping operational parameters and systematically examine opportunities and barriers for profitability, including supportive policy measures and priorities for research and development. Existing technologies could meet the need for storage in the power market, but widespread profitability relies on advances in both economic utilization and technological innovation.

Keywords: renewable energy, energy storage, business models, profitability, policy analysis

JEL Classification: M1, M2, O1, Q4, Q5

Suggested Citation

Baumgarte, Felix and Glenk, Gunther and Rieger, Alexander, Business Models and Profitability of Energy Storage (July 17, 2019). Available at SSRN: https://ssrn.com/abstract=3421370 or http://dx.doi.org/10.2139/ssrn.3421370

Felix Baumgarte

University of Bayreuth ( email )

Universitatsstr 30
Bayreuth, D-95447
Germany

Gunther Glenk (Contact Author)

University of Mannheim ( email )

Mannheim Institute for Sustainable Energy Studies
Mannheim, 68131
Germany

Alexander Rieger

University of Bayreuth ( email )

Universitatsstr 30
Bayreuth, D-95447
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
4
Abstract Views
563
PlumX Metrics