Abstract:
The development of energy storage technologies creates opportunities for clean energy transitions in the transportation and electricity sectors. These technologies receive public and private support, yet their effective deployment faces various challenges that can potentially hinder climate goals, particularly in the electricity sector. We examine economic and technical challenges within a well-known induced innovation model where we introduce a new energy storage subsidy. At current levels of substitution between clean and conventional technologies, our results highlight the importance of temporarily subsidizing storage technologies to ease the substitution between clean and conventional technologies. Our discussion aims at improving the understanding of energy storage deployment that has the potential to accelerate clean energy transitions.
Citation:
Feng, S., & Lazkano, I. (2025), 'Energy storage and clean energy transitions', Energy Policy, 198, 114447. https://doi.org/10.1016/j.enpol.2024.114447