For energy storage, electric energy
time-shift involves charging the storage system at one time and discharging the
system at a later time. Many electric utilities charge a higher rate for
electricity during peak periods, when electricity demand is at its highest, and
a lower rate during off-peak periods. This is because more expensive, often
“spinning”, load following and peaking generation equipment must be engaged
beyond the base load generation equipment in order to meet peak demand. Electric
energy time-shifting, charging energy storage devices during off-peak periods
in order to sell the energy back during more expensive peak periods, is an
energy storage application with great economic merit. This “buy low, sell high”
use of energy storage is sometimes called Arbitrage. This term is often used
though some dispute its appropriateness because, from a financial perspective,
arbitrage involves the simultaneous
(not time-shifted) purchase and sale of identical or equivalent commodities (Eyer & Corey, 2010) .
Works Cited
Eyer, J., & Corey, G. (2010). Energy Storage
for the Electricity Grid: Benefits and Market Potential Assessment Guide.
Albuquerque, New Mexico: Sandia National Laboratories.
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