The Analysis of Electricity Storage Location Sites in the Electric Transmission Grid

Wind power is a growing sector of the United States electricity generation system. The integration of wind energy into the electrical grid presents capacity-related challenges to policy makers. The introduction of large-scale storage capabilities for wind power could lead to cost and reliability benefits if the interface locations are chosen wisely. The location of storage capability in the electrical grid relative to sources of demand and supply becomes a key research question. This paper describes the development of a conceptual framework using marginal pricing and associated modeling requirements necessary to analyze siting issues of storage capacity into the electricity grid.