An energy storage technology is valuable if it makes energy systems cheaper. Traditional ways to improve storage technologies are to reduce their costs; however, the cheapest energy storage is not always the most valuable in energy systems. This paper reviews techno-economic storage valuation methods and expands them by the introduced market potential method  . The market potential method derives the value of technologies by examining common deployment signals from energy system model outputs in a structured way. We apply and compare this method to cost evaluation approaches in a renewables-based European power system model, covering diverse energy storage technologies. We find that characteristics of high-cost hydrogen storage can be equally or even more valuable than low-cost hydrogen storage. Additionally, we show that modifying the freedom of storage sizing and component interactions can make the energy system 10\% cheaper and impact the value of technologies. The results suggest to look beyond the pure cost reduction paradigm and focus on developing technologies with  value approaches that can lead to cheaper electricity systems in future . One practical and useful value method guiding energy storage innovation could be the market potential method .
An energy storage technology is valuable if it makes energy systems cheaper. Traditional ways to improve storage technologies are to reduce their costs; however, the cheapest energy storage is not always the most valuable in energy systems. Modern techno-economical evaluation methods try to address the cost and value situation but do not judge the competitiveness of multiple technologies simultaneously. This paper introduces the market potential method as a new complementary valuation method guiding innovation of multiple energy storage . The market potential method derives the value of technologies by examining common deployment signals from energy system model outputs in a structured way. We apply and compare this method to cost evaluation approaches in a renewables-based European power system model, covering diverse energy storage technologies. We find that characteristics of high-cost hydrogen storage can be more valuable than low-cost hydrogen storage. Additionally, we show that modifying the freedom of storage sizing and component interactions can make the energy system 10\% cheaper and impact the value of technologies. The results suggest looking beyond the pure cost reduction paradigm and focus on developing technologies with suitable value approaches that can lead to cheaper electricity systems in future .
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This paper reviews techno-economic storage valuation methods and expands them by the introduced
Modern techno-economical evaluation methods try to address the cost and value situation but do not judge the competitiveness of multiple technologies simultaneously. This paper introduces the
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as a new complementary valuation method guiding innovation of multiple energy storage
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equally or even
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to look
looking
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suitable
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. One practical and useful value method guiding energy storage innovation could be the market potential method