Energy Storage Systems as Flexible Market Tool for Russian Power and Capacity Market

These have been shaped by several key factors:

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 Shifting Structure and Nature of Electricity Consumption: The post-industrial economy has brought about changes in how electricity is used, the emergence of new consumer types, and increased mobility in electricity demand.

Global Economic Shifts: Changes in the relative costs of raw materials, equipment, technology, and labor are altering the balance between CAPEX and OPEX within the

Levelized Cost of Energy (LCOE) for new large-scale grid and generation projects.

Inability for Rapid Response: Traditional solutions, such as the construction of major grid infrastructure and conventional power plants, are unable to quickly react to market price signals due to their long construction and payback periods.

Growth of Renewables: The increasing share of Variable Renewable Energy (VRE) sources in the generation mix is leading to greater uncertainty in the volume of supply available to the market. In this environment, there is a clear need for modern, flexible, and multi-purpose market instruments that are both economically and technically efficient and are based on advanced technologies. Energy Storage Systems (ESS) are proposed as such an instrument. This article will:

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 Analyze global case studies on the use of ESS within electricity and capacity markets.

Provide a classification of ESS based on their potential applications for solving marketrelated challenges.

Identify key market mechanisms where ESS can be integrated to enhance the operational efficiency of the Russian electricity and capacity market. The integration of ESS into Russia’s power system and electricity market requires the development of market mechanisms covering their entire lifecycle – from design and construction to operation and decommissioning. Regulatory frameworks, both technical and economic, must also be established by government authorities to govern ESS deployment and operation.