Storing power: market structure matters

We assess how firms' incentives to operate and invest in energy storage depend on the market structure. For this purpose, we characterize equilibrium outcomes allowing for power and/or production, as well vertical integration between production. Market reduces overall efficiency through two channels: It induces an inefficient use of facilities, it distorts investment incentives. The worst outcome consumers total welfare occurs under integration. results are key understanding regulate storage, issue which is critical deployment renewable energies.