# On the economics of electrical storage for variable renewable energy sources

## TL;DR

This paper challenges previous assumptions about the high storage needs for renewable energy, showing that with optimized strategies, storage requirements are much lower and unlikely to hinder renewable energy expansion.

## Contribution

It introduces a flexible optimization model that accounts for combined storage and curtailment, significantly reducing estimated storage needs compared to prior analyses.

## Key findings

- Storage needs are up to two orders of magnitude lower than previously thought.
- Optimized strategies combining storage and curtailment improve economic efficiency.
- Electrical storage is unlikely to impede the transition to renewable energy.

## Abstract

The use of renewable energy sources is a major strategy to mitigate climate change. Yet Sinn (2017) argues that excessive electrical storage requirements limit the further expansion of variable wind and solar energy. We question, and alter, strong implicit assumptions of Sinn's approach and find that storage needs are considerably lower, up to two orders of magnitude. First, we move away from corner solutions by allowing for combinations of storage and renewable curtailment. Second, we specify a parsimonious optimization model that explicitly considers an economic efficiency perspective. We conclude that electrical storage is unlikely to limit the transition to renewable energy.