IT Project Management Case Studies
PMC230ZAA.06148.2234
Week 2 – Energy Storage
Group 1:
Anjula Serasinghe - 135464220
Emmanuel Chidi Chiedu - 144769213
Kishan Mukeshkumar Bhatt - 158333211
Mark Castro - 129484226
Paulome Dineshbhai Kaneriya - 157399213
Roshan Nair -134526219
Yash Patel - 153673215
Prof. Ben Torres
Contents
❖ Executive summary............................................................................................................. 3
❖ Strategic Perspective .......................................................................................................... 3
❖ Issues and Problems in Energy Storages ............................................................................ 4
❖ Analysis ............................................................................................................................... 6
❖ Alternatives and Options .................................................................................................... 7
❖ Recommendations .............................................................................................................. 8
❖ Conclusion .......................................................................................................................... 9
❖ Reference.......................................................................................................................... 11
❖ Participation ..................................................................................................................... 13
❖ Executive summary
This executive summary provides a comprehensive overview of the wide range of storage
technologies available for meeting daily energy demands in power grids. The energy storage
sector has witnessed advancements driven by evolving energy standards and technological
progress. These storage systems play a vital role in the development of robust energy
infrastructure while offering cost-saving benefits for both utilities and end-users. The key
classifications discussed include batteries, thermal storage, mechanical storage, hydrogen
storage, and pumped hydropower. Batteries are highlighted as a prominent category among
energy storage options, leveraging various electrochemical pathways such as advanced
chemistry batteries, capacitors, and flow batteries. These solutions enable the storage of
electricity through chemical transformations and offer flexibility and scalability to
accommodate diverse use cases.
Thermal storage systems harness the capacity to capture and store heat and cold, allowing
for on-demand energy generation or offsetting future energy requirements. This approach
enables efficient utilization of surplus heat or cold for later use.
Mechanical storage solutions employ innovative methods to store kinetic or gravitational
energy as an electricity reserve. Flywheels and compressed air energy storage systems play a
crucial role in storing mechanical power and delivering it when needed. Hydrogen storage
technology involves the conversion of electrical surpluses into hydrogen through electrolysis.
This alternative energy source exhibits versatility by providing reserve capacity as needed and
contributing to carbon neutrality objectives.
Pumped hydropower technology entails the creation of extensive water reservoirs for storing
high volumes of excess electricity using dedicated pumping mechanisms. The potential energy
stored in these reservoirs can be released through turbines, generating electricity when
required. Integrating various storage technologies enables grid operators and energy
stakeholders to maximize output, enhance reliability, integrate renewable sources, and
address challenges associated with intermittent power generation. Ongoing research
initiatives focused on advancing these innovative storage options are crucial for securing a
sustainable future for green energy, capable of overcoming any obstacles that may arise.
❖ Strategic Perspective
From a strategic perspective, energy storage offers many benefits to project managers and
other industry stakeholders. By strategically integrating energy storage technologies into
their operations, companies can position themselves as leaders in the shift to a sustainable
and efficient energy future. Energy projects can become more diverse and future-proof,
which positions them as resilient and adaptable to changing market dynamics. Energy storage
enables market positioning and differentiation, allowing companies to offer distinctive value
propositions centered on dependability and sustainability. Additionally, it offers opportunities
for revenue optimization through participation in the energy markets and provision of
ancillary services. Companies can also enhance their operational independence and establish
grid independence by building self-sufficient energy systems and developing microgrids.
Conclusively, embracing energy storage in the future provides important strategic advantages
for businesses aiming to thrive in the evolving energy landscape.
❖ Issues and Problems in Energy Storages
Storing energy in recent years has been a major point of talk within the Departments of
Energy of the US and other facilitators due to the high risk of natural energy sources running
out in the near future. Thus, many methodologies of storing energy have been introduced
following a lot of Research and Development in the past few years but they also possess many
challenges and issues to continue in the future.
Depending on the Era of energy introduced, the issues at hand have been introduced to two
different categories by the Department of Energy, USA (DOE). They are
•
•
Pre-Generational Storage issues
Post Generational Storage issues
The Pre-Generational Storage, methods that were initially used such as inventory of Coal,
supply of Uranium for a nuclear plant or the build-up of river water behind a dam. Storing
potential energy – within chemical or nuclear bonds or by virtue of gravity and location in the
case of dams – is the old-fashioned way of doing things.
Post Generational storage consists of sources such as Lithium Batteries. Thermal Energy
Storage, Chemical Energy Storage, Hydrogen Energy Storage, Pumped Hydro Power, and
more. While the demand and need for Post Generational storage rises, there have been some
issues and concerns that hold investors back.
The Department of Energy of USA has discovered 4 main challenges to the spread of Energy
Storage. Namely they can be listed as,
1.
2.
3.
4.
Performance and Safety
Cost Competitive Systems
Regulatory Environment
Industry Acceptance
One of the major issues with it is, Performance and Safety. Some of the energy storage
systems such as Batteries can be unreliable. They can fail due to reasons such as
environmental problems, Poor Constructions of the batteries, Electrical Abuse, Physical
Damage or even temperature issues. A failed battery system could cause it to explode, catch
fire or emit poisonous gases.
They also contain safety hazard issues. “Offgasing” is a common threat in battery systems
where they emit Methane or carbon monoxide. That could result in poisoning or explosions.
Thus, it is a challenge to introduce them to larger networks as Grid Operators might not be
confident that energy storage systems will perform as intended within the larger network.
The Cost Competitiveness of systems is one of the large drawbacks from people adapting to
Storage systems. For an example the actual energy storage technology (e.g., the battery)
contributes 30%- 40% to total system cost; the remainder are attributed to auxiliary
technologies, engineering, integration, and other services. For Some technologies this could
be as little as 20%. Majority of the cost up to 50% is carried out by three sectors: labor and
design, safety and conditioning equipment, and power electronics. Another issue with cost is
the replacement. As any energy source it is not bound to live forever, however replacement
of a system (ex: battery) could cost as 20% and in the case of “Lithium Batteries” it could be
up to 40% of the initial installation price.
Finally, the scale of the system will also alter the prices. As the size of the energy storage
system increases, the equivalent price per kWh of the total system reduces. The figure below
depicts a scenario where 2 batteries of 2 different sizes were used to conduct a price summary
where we can see that even when the first battery of 3kW and 6kWh, and the second with a
battery of 5kW and 20kWh , it seems that even though the second system is 3 times the size
of the first the total cost of the system is not even twice the value of the first.
Figure 1: Total installed costs of solar plus storage systems for the residential sector – small
and large case scenarios.
Source: NREL.
Another challenge with Energy Storage systems is Regulatory Environment issues. These
issues will be critical for the widespread adoption of energy storage solutions, especially in
light of the potential for growth in battery storage solutions. Regulatory uncertainty poses an
investment risk and dissuades adoption. For an example, Federal Energy Regulatory
Commission (FERC) issued Order 841, calls to remove batteries from participation for energy
storage resources. In addition to that FERC order 841 regional transmission operators to
revise their tariffs to establish a participation model consisting of market rules.
As always, no matter how viable systems are it has to be accepted within the industry.
Industry Acceptance is a major issue as Energy storage investments require broad
cooperation among electric utilities, facility and technology owners, investors, project
developers, and insurers. Each stakeholder presents a different perspective which may or may
not be beneficial for them. Other investors also have major investments in pre generational
energy savings so some may be reluctant to invest in the more newer versions due to the
competition they could face which might result in loss of revenue from their previous
investments.
❖ Analysis
This analysis will focus on four innovative energy storage options—thermal storage systems,
mechanical energy storage solutions, hydrogen storage technology, and pumped hydropower
technology—and the challenges they face as identified by the U.S. Department of Energy
(DOE).
Innovative Storage Options
Thermal Storage Systems: Thermal storage systems store energy in the form of heat or cold.
These systems can be further divided into sensible heat storage, latent heat storage, and
thermochemical storage. Applications include electricity generation, space heating and
cooling, and process heat. By shifting energy consumption to off-peak hours and integrating
renewable energy sources, thermal storage can help balance the grid and reduce greenhouse
gas emissions.
Mechanical Energy Storage Solutions: Mechanical energy storage solutions encompass a
range of technologies that store energy in the form of kinetic or potential energy. Examples
include flywheels, compressed air energy storage (CAES), and gravity-based systems. These
technologies can provide fast and efficient energy release, making them suitable for shortterm grid stabilization, frequency regulation, and power quality management.
Hydrogen Storage Technology: Hydrogen storage technology involves the conversion of
electricity into hydrogen through electrolysis. The hydrogen can then be stored in various
forms, such as compressed gas, liquefied gas, or within metal hydrides. It can be used as a
fuel for transportation, in industrial processes, or converted back into electricity through fuel
cells. This technology has the potential to provide long-term energy storage, support the
integration of renewable energy sources, and contribute to decarbonizing the energy sector.
Pumped Hydropower Technology: Pumped hydropower technology is a well-established,
large-scale energy storage method that involves pumping water to an upper reservoir during
periods of low electricity demand and releasing it to generate electricity during high demand
periods. This technology offers significant storage capacity and can help maintain grid stability,
support renewable energy integration, and provide ancillary services.
Department of Energy's Two Categories of Storage Issues
The DOE categorizes energy storage issues into two main categories:
1. Pre-Generational Storage Issues: These issues encompass the research, development,
and demonstration of new storage technologies, materials, and systems. The DOE
advances storage options by investing in early-stage research, supporting publicprivate partnerships, and promoting innovative projects through programs like ARPAE.
2. Post-Generational Storage Issues: These issues involve the commercialization,
deployment, and integration of energy storage technologies into the grid and energy
markets. The DOE addresses these challenges through initiatives that
support technology transfer, drive regulatory reforms, educate stakeholders, and
foster industry collaborations.
Four Main Challenges to the Spread of Energy Storage
The DOE has identified four main challenges that hinder the widespread adoption of energy
storage technologies:
1. Performance and Safety: Ensuring the safety, reliability, and durability of energy
storage systems is critical for their successful integration into the grid. This challenge
includes developing materials and technologies that can withstand harsh operating
conditions, minimize the risk of failure, and maintain high performance over their
lifespan.
2. Cost-Competitive Systems: To achieve widespread adoption, energy storage
technologies must be cost-competitive with traditional alternatives. This challenge
involves reducing manufacturing costs, increasing energy density, improving roundtrip efficiency, and extending the operational lifetime of storage systems.
3. Regulatory Environment: The regulatory environment must support the development
and deployment of energy storage technologies. This challenge includes creating
policies and incentives that promote investment, addressing barriers to
interconnection and market participation, and streamlining permitting processes.:
4. Industry Acceptance: To ensure the successful integration of energy storage
technologies into the energy sector, industry stakeholders must be confident in the
performance, safety, and reliability of these systems. This challenge involves building
trust through rigorous testing, transparent data sharing, successful demonstration
projects, and ongoing collaboration between researchers, industry, and policymakers.
❖ Alternatives and Options
Thermal Energy Storage: The system store energy in the form of heat and there are various
technologies employed for storing like – Latent Heat Storage and Sensible Heat Storage.
The Latent Heat Storage method makes use of phase-change materials (PCMs), which store
and release energy across phase changes. PCMs undergo latent heat absorption or release as
they transform from solid to liquid or the opposite. Solar water heating, district heating, and
thermal management of electronic equipment are all uses for latent heat storage systems,
which have a high energy storage density.
Sensible Heat Storage is the practice of storing heat in a solid or liquid medium, such as molten
salt or concrete. High thermal capacity sensible heat storage systems are often used in
concentrated solar power plants, where heat is stored during the day to produce electricity
at night.
Mechanical Energy Storage: Mechanical energy storage options involve storing energy in the
form of mechanical potential or kinetic energy.
Flywheel Energy Storage: Flywheels are revolving masses that store energy. The flywheel is
driven by extra electrical energy, and the stored energy is later transformed back into
electricity, as necessary. Flywheel energy storage devices are appropriate for applications
requiring quick energy bursts because they have quick response times, high power output,
and extended lifespans.
Compressed Air Energy Storage (CAES): CAES systems use compressed air to store energy in
tanks or caverns above or below ground. The stored air is expanded by turbines to produce
power at periods of high demand. The advantage of using existing natural gas infrastructure
for energy conversion makes CAES a good option for large-scale energy storage.
Pumped Hydropower Storage: One well-known and often used type of energy storage is
pumped hydropower. It includes pumping water from a lower reservoir to a higher reservoir
while there is surplus energy available due to low demand. When there is a greater demand
for energy, water is returned to the lower reservoir and runs through turbines to produce
electricity. Pumped hydropower storage can store a lot of energy over a long time, but it
needs specific geographic conditions to work.
Hydrogen Energy Storage: Electrolysis can provide excess renewable power that can be
stored for later use. Among the leading technologies in this field are:
Fuel cells for hydrogen offer high energy conversion efficiency by electrochemically
converting hydrogen into power. In addition to mobility, such as in fuel cell automobiles,
hydrogen fuel cells may be used for stationary applications like backup power generation.
Hydrogen Combustion: To produce power, hydrogen may also be used in combustion engines.
With this technology, it is flexible to use the infrastructure created for conventional fossil fuels.
However, compared to fuel cells, the total efficiency can be lower.
❖ Recommendations
Energy storage is an exciting area that is always developing, and there are some intriguing
developments on the horizon. The following are some crucial suggestions for energy storage
as it develops in the future:
•
•
•
•
•
Advancements in Battery Technology: It is projected that battery technology will
continue to advance thanks to improvements in energy density, cycle life, charging
speed, and cost. New technologies offer the potential to store more energy and
perform better, such as solid-state batteries, lithium-sulfur batteries, and metal-air
batteries.
Grid-Scale Energy Storage: It is projected that more grid-scale energy storage systems
will be adopted, allowing for better integration of renewable energy sources and
improving grid stability. The development and application of large-scale energy
storage technologies, such as enhanced flow batteries, compressed air energy storage,
and pumped hydro storage, will continue.
Beyond Lithium-Ion: Alternative materials and chemistries are being studied, even
though lithium-ion batteries now dominate the energy storage industry. This includes
alternative metal-ion batteries with the potential to be more economical, plentiful,
and environmentally friendly, such sodium-ion batteries and zinc-air batteries.
Smart Grid Integration and Advanced Controls: Energy storage systems will be more
and more integrated with smart grid technology, improving optimization, grid
management, and demand response capabilities. To improve energy storage
operations, increase efficiency, and enable more sophisticated energy management
techniques, advanced controls, and predictive analytics will be used.
Sustainability and Recycling: As the use of energy storage increases, a focus on
sustainability and recycling will be essential. It will be essential to create efficient
recycling processes and implement circular economy ideas if batteries are to be used
as efficiently as possible and with the least amount of negative environmental impact.
It's critical to keep in mind that the future of energy storage will depend on ongoing research,
technological advancements, governmental support, and market forces. As these advances
advance, energy storage technologies will be essential for achieving a more stable,
sustainable, and decarbonized energy future.
❖ Conclusion
In conclusion, the energy storage industry has made significant progress in developing a wide
array of storage technologies to meet everyday energy needs. These technologies span across
five main categories: batteries, thermal storage, mechanical storage, hydrogen storage, and
pumped hydropower. Each category offers unique approaches to managing and storing
electricity, providing benefits such as improved grid resilience, cost savings, and flexibility in
energy supply.
Batteries, including advanced chemistry batteries, flow batteries, and capacitors, offer
electrochemical solutions for energy storage. They have become increasingly popular for both
small-scale and large-scale applications due to their high energy density, fast response times,
and declining costs.
Thermal storage systems capture and store heat or cold to generate energy on demand or
offset energy needs. These systems utilize various methods such as phase change materials,
molten salts, or ice-based systems to store and release energy as required.
Mechanical storage technologies harness kinetic or gravitational energy to store electricity.
Examples include flywheels, compressed air energy storage (CAES), and gravitational
potential energy storage. These systems store energy in a mechanical form and convert it
back into electricity when needed.
Hydrogen storage involves converting excess electricity into hydrogen through the process of
electrolysis. The produced hydrogen can be stored and later used in fuel cells or other
applications, providing a versatile energy carrier that can be utilized for various purposes,
including transportation and industrial processes.
Pumped hydropower is a well-established technology that creates large-scale reservoirs of
energy by pumping water to higher elevations during periods of low demand and releasing it
through turbines to generate electricity during peak demand. This method utilizes the
potential energy of water to store and generate electricity efficiently.
By employing these diverse storage technologies, the grid can become more flexible and
resilient, integrating intermittent renewable energy sources better and enabling a more
sustainable and reliable energy infrastructure. Continued advancements in energy storage
technologies are crucial for achieving a clean energy future and addressing the challenges of
energy supply and demand.
❖ Reference
Electronics, F. (2023). Energy Storage 2023: State of the Art and Trends for the Future. Future
Electronics Blog. https://www.futureelectronics.com/blog/article/energy-storage-state-ofthe-art-and-trends-for-the-future/
Energy storage important to creating affordable, reliable, deeply decarbonized electricity
systems. (2022, May 16). MIT News | Massachusetts Institute of Technology.
https://news.mit.edu/2022/energy-storage-important-creating-affordable-reliable-deeplydecarbonized-electricity-systems-0516
How Energy Storage Works. (2015, February 19). Union of Concerned Scientists.
https://www.ucsusa.org/resources/how-energy-storage-works
Alkhalidi, A., Alrousan, T., Ishbeytah, M., Abdelkareem, M. A., & Olabi, A. G. (2022).
Recommendations for energy storage compartment used in renewable energy project.
International Journal of Thermofluids, 15, 100182. https://doi.org/10.1016/j.ijft.2022.100182
Advanced Energy Storage Technologies. Energy Storage Association. (2020, September 24).
https://energystorage.org/why-energy-storage/technologies/
International Renewable Energy Agency (IRENA). (2019). Innovation Outlook: Hydrogen as an
Energy
Carrier.
Retrieved
from
https://www.irena.org/publications/2019/May/Innovation-Outlook-Hydrogen-as-anEnergy-Carrier
Energy
Storage
Association.
(n.d.).
Technologies.
https://energystorage.org/why-energy-storage/technologies/
Retrieved
from
Union of Concerned Scientists. (n.d.). How Energy Storage Works. Retrieved from
https://www.ucsusa.org/resources/how-energy-storage-works
Elnesr, M., Khalilpour, R., Olabi, A. G., & Elrayyah, A. (2022). A review on thermal energy
storage systems and materials: Challenges and recent advancements. Journal of Energy
Storage, 55, 103080. doi: 10.1016/j.est.2022.103080
MIT News. (2022). Energy storage important to creating affordable, reliable, deeply
decarbonized electricity systems. Retrieved from https://news.mit.edu/2022/energystorage-important-creating-affordable-reliable-deeply-decarbonized-electricitysystems-0516
Ardani, K., O’Shaughnessy, E., Fu, R., McClurg, C., Huneycutt, J., & Margolis, R. (2017). Installed
Cost Benchmarks and Deployment Barriers for Residential Solar Photovoltaics with
Energy Storage: Q1 2016. https://doi.org/10.2172/1338670
Department of Energy. (n.d.). https://www.energy.gov/sites/prod/files/2019/07/f64/2018OTT-Energy-Storage-Spotlight.pdf
Fasken. (2022, May 24). Energy in transition: Emerging issues in energy storage - unlocking
the next wave. Fasken. https://www.fasken.com/en/knowledge/2021/11/18emerging-issues-in-energy-storage
Vennix, E. (2022, February 14). Challenges and opportunities of battery storage. Deloitte
Netherlands.
https://www2.deloitte.com/nl/nl/pages/energy-resourcesindustrials/articles/challenges-and-opportunities-of-battery-storage.html
Kobayashi-Solomon, E. (2022, August 22). We have an energy storage problem. Forbes.
https://www.forbes.com/sites/erikkobayashisolomon/2022/08/18/we-have-anenergy-storage-problem/?sh=b5664181681d
Sanchez, B. (2020, October 14). Cost competitiveness challenges of energy storage systems blog. Electriq Power. https://electriqpower.com/2020/10/the-challenges-of-costcompetitiveness-for-home-energy-systems-installation-maintenance-lifespan/
❖ Participation
WE, declare that the attached assignment is our own work in accordance with the
Seneca Academic Honesty Policy. I/We do not copy any part of this assignment,
manually or electronically, from any other source including web sites, unless specified as
references. I do not distribute my work to other students.
Name
1 Executive Summary, Conclusions
2 Strategic Perspective, List Significant Issues
3 Analysis
4 Options and Alternative
5 Recommendations
Task
Mark Castro
Yash Patel
Anjula Serasinghe
Emmanuel Chidi Chiedu
Kishan Mukeshkumar Bhatt
Paulome Dineshbhai Kaneriya
Roshan Nair