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From Fossil Fuels to Renewables: The Role of Electricity Storage.

Lazkano, Itziar; Nøstbakken, Linda; Pelli, Martino
Working paper
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URI
http://hdl.handle.net/11250/2391721
Date
2016-06-07
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  • Discussion papers (SAM) [578]
Abstract
We analyze the role of electricity storage for technological innovations in electricity

generation. We propose a directed technological change model of the electricity sector,

where innovative firms develop better electricity storage solutions, which affect not only

the relative competitiveness between renewable and nonrenewable electricity sources

but also the ease with which they can be substituted. Using a global firm-level data

set of electricity patents from 1963 to 2011, we empirically analyze the determinants

of innovation in electricity generation, and the role of storage in directing innovation.

Our results show that electricity storage increases innovation not only in renewables

but also in conventional technologies. This implies that efforts to increase innovation in

storage can benefit conventional, fossil fuel-fired electricity plants as well as increasing

the use of renewable electricity.
Series
SAM;11/2016

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