Canadian Solar Financial and Operational Summary Q1 2022
Increasing demand for energy storage with greater adoption of renewables
Congestion Persistence (1) ($/MW-yr)
The value of battery storage
is directly correlated with the
penetration of renewable energy
Value of storage and renewable
penetration across U.S. ISOs
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$-
2017 2018
2015
2016
▲ 2019 (low load)
2020 (COVID)
2019
2019
2018
2020 (COVID)
2017
2018
2017
2016
2016
2015
Battery storage has unique
advantages in providing grid services
Increasing penetration of renewable
energy lowers power costs and
decarbonizes the power grid, but it
creates price volatility and affects
grid stability: battery storage can
mitigate the effect of renewable
energy on the grid
Advantages of battery storage:
The need for battery storage will only
increase as renewable penetration
continues to go up
Electricity mix %
Other
Coal,
gas, 63%
oil
38%
23%
63%
68%
71%
.
Modular, flexible size
Nuclear 10%
16%
5%
2020 (COVID)
19%
•
No startup costs, short ramp time
6%
Hydro 16%
17%
7%
6%
•
Ability to charge and discharge
17%
A
•
Battery costs declining rapidly
Other renew.
(non-hydro)
Non-
dispatchable,
4%
Solar-
8%
3%
9%
7%
7%
4%
2%
3%
intermittent
sources of
energy
Global Europe Japan
US
China
0%
5%
10% 15% 20% 25% 30% 35%
Renewable Penetration (% Generation)
●CAISO SP15 ⚫ERCOT South • SPP South
Source: Ascend Analytics, BP.
(1) Congestion persistence = value of storage to real-time energy prices based on the frequency and magnitude of energy price
spikes. The volatility correlates to the opportunity for storage to arbitrage in the energy market.
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