Economic feasibility analysis and operational testing of a community energy storage system

2016 ◽  
Author(s):  
Ben Knueven ◽  
Jim Ostrowski ◽  
Ben Ollis ◽  
Philip Irminger ◽  
Michael Starke ◽  
...  
Keyword(s):  
Energy Storage ◽  
Storage System ◽  
Energy Storage System ◽  
Economic Feasibility ◽  
Feasibility Analysis ◽  
Operational Testing

scholarly journals Feasibility Analysis of Behind-the-Meter Energy Storage System According to Public Policy on an Electricity Charge Discount Program

2019 ◽  
Vol 11 (1) ◽  
pp. 186 ◽  
Author(s):  
Byuk-Keun Jo ◽  
Seungmin Jung ◽  
Gilsoo Jang
Keyword(s):  
Energy Storage ◽  
Storage Systems ◽  
Storage System ◽  
Participation Rate ◽  
Energy Storage System ◽  
Economic Feasibility ◽  
Demand Side ◽  
Energy Storage Systems ◽  
Study Results ◽  
The Impact

Energy storage systems are crucial in dealing with challenges from the high-level penetration of renewable energy, which has inherently intermittent characteristics. For this reason, various incentive schemes improving the economic profitability of energy storage systems are underway in many countries with an aim to expand the participation rate. The electricity charge discount program, which was introduced in 2015 in Korea, is one of the policies meant to support the economic feasibility of demand-side energy storage systems. This paper quantitatively evaluated the impact of the electricity charge discount program on the economic feasibility of behind-the-meter energy storage systems. In this work, we first summarized how electricity customers can benefit from behind-the-meter energy storage systems. In addition, we represented details of the structure that make up the electricity charge discount program, i.e., how the electricity charge is discounted through the discount scheme. An optimization problem that establishes a charge and discharge schedule of an energy storage system to minimize each consumer’s electricity expenditure was defined and formulated as well. The case study results indicated that the electricity charge discount program has improved the profitability of behind-the-meter energy storage systems, and this improved profitability led to investment in behind-the-meter energy storage systems in Korea. As a result of the electricity charge discount program, Korea’s domestic demand side energy storage system market size, which was only 27 billion dollars in 2015 in Korea, has grown to 825 billion dollars in 2018.

scholarly journals Minimization of Global Adjustment Charges for Large Electricity Customers Using Energy Storage—Canadian Market Case Study

2020 ◽  
Vol 10 (23) ◽  
pp. 8585
Author(s):  
Abdeslem Kadri ◽  
Farah Mohammadi ◽  
Mohamed Awadallah
Keyword(s):  
Energy Storage ◽  
Power Systems ◽  
Storage System ◽  
Energy Storage System ◽  
Economic Feasibility ◽  
Main Role ◽  
Canadian Market ◽  
Grid Applications ◽  
Battery Energy

Recently, the interest in utilizing energy storage systems (ESSs), particularly batteries, has increased. ESSs are employed for several enhancement tasks in power systems on both the operation and planning scales. On the operation side, ESSs play a main role in offering several ancillary services. In the context of planning, ESSs are used for asset upgrade deferral among other grid applications. This work employs a battery energy storage system (BESS) to minimize the electricity bill charges associated with global adjustment for large consumers in the jurisdiction of Ontario, Canada. An optimization formulation for sizing and scheduling the BESS, to minimize the utility charges and gain profits from other revenue streams, such as energy price arbitrage (EPA), was developed and implemented. The results show the economic feasibility of the developed algorithm to minimize the annual bills of real customers and gain profits. A sensitivity analysis was also carried out to show the potential of the proposed method in providing significant benefits and gains for customers.

scholarly journals Solar Photovoltaic Panels Combined with Energy Storage in a Residential Building: An Economic Analysis

2018 ◽  
Vol 10 (9) ◽  
pp. 3117 ◽  
Author(s):  
Federica Cucchiella ◽  
Idiano D’Adamo ◽  
Massimo Gastaldi ◽  
Vincenzo Stornelli
Keyword(s):  
Energy Storage ◽  
Net Present Value ◽  
Storage System ◽  
Residential Building ◽  
Weather Conditions ◽  
Energy Storage System ◽  
Economic Feasibility ◽  
Pv System ◽  
Pv Systems ◽  
Profitability Analysis

Renewable energy is a wide topic in environmental engineering and management science. Photovoltaic (PV) power has had great interest and growth in recent years. The energy produced by the PV system is intermittent and it depends on the weather conditions, presenting lower levels of production than other renewable resources (RESs). The economic feasibility of PV systems is linked typically to the share of self-consumption in a developed market and consequently, energy storage system (ESS) can be a solution to increase this share. This paper proposes an economic feasibility of residential lead-acid ESS combined with PV panels and the assumptions at which these systems become economically viable. The profitability analysis is conducted on the base of the Discounted Cash Flow (DCF) method and the index used is Net Present Value (NPV). The analysis evaluates several scenarios concerning a 3-kW plant located in a residential building in a PV developed market (Italy). It is determined by combinations of the following critical variables: levels of insolation, electricity purchase prices, electricity sales prices, investment costs of PV systems, specific tax deduction of PV systems, size of batteries, investment costs of ESS, lifetime of a battery, increases of self-consumption following the adoption of an ESS, and subsidies of ESS. Results show that the increase of the share of self-consumption is the main critical variable and consequently, the break-even point (BEP) analysis defines the case-studies in which the profitability is verified.

Feasibility Study of an Energy Storage System for Distributed Generation System in Islanding Mode

2016 ◽  
Vol 139 (1) ◽  
Author(s):  
B. P. Upendra Roy ◽  
N. Rengarajan
Keyword(s):  
Energy Storage ◽  
Cost Analysis ◽  
Distributed Generation ◽  
Power Plants ◽  
Storage System ◽  
Energy Storage System ◽  
Economic Feasibility ◽  
Long Run ◽  
Islanded Mode ◽  
Sample Case

Distributed energy systems are gaining widespread popularity in recent times as they are capable of generating power with a minimum running cost. They are also highly effective since they are located close to the load which reduces the transmission losses to a significant extent. Energy starved countries have opened up business opportunities to industries which can generate electricity and export them to the grid. The purpose of this paper is to evaluate the economic feasibility of using a compressed air energy storage (CAES) system for distributed generation sources or captive power plants when it operates in islanded mode. This paper presents the application of CAES system as a viable energy storage method to be used as a dump load when the source operates in islanded mode. Based on the data of a sample case, cost analysis is being carried out to ensure the economic feasibility of implementing such a system for a captive power plant. The detailed cost analysis for implementing such a system is presented together with a simple methodology to be followed for selecting a compressor. Implementing an energy storage system always improves the performance of the system as it is capable of smoothing out the fluctuations. For plants which are exporting power to the grid, it also improves the operating profit of the plant by acting as a buffer in situations when there are minor disturbances in the grid and the plant is forced to operate in islanded mode. The sample case study is being done for the possible application and implementation of the suggested energy storage system, and the findings show that even though the initial cost of such a system is on the higher side, it can be helpful in the long run. The proposed system will be helpful to supply peak loads and also increases the profit of such sources who export power to the grid. The proposed system is applicable only to sources which are connected to the grid and it works well only when there is a sustained period of operation in islanded mode.

scholarly journals Exploring Economic Criteria for Energy Storage System Sizing

Energies ◽  
2019 ◽  
Vol 12 (12) ◽  
pp. 2312 ◽  
Author(s):  
Jichun Liu ◽  
Zhengbo Chen ◽  
Yue Xiang
Keyword(s):  
Energy Storage ◽  
Storage System ◽  
Energy Storage System ◽  
Optimal Operation ◽  
Economic Feasibility ◽  
Operation Model ◽  
Economic Criterion ◽  
Hybrid Particle Swarm Optimization ◽  
The Impact ◽  
Economic Criteria

This paper presents two economic criteria for guiding the energy storage system (ESS) sizing in grid-connected microgrids. The internal power output model and the economic operation model of ESS are firstly established. Then, the combination of heuristic adjustment strategy and hybrid particle swarm optimization algorithm are introduced to solve the optimal operation model of ESS. Then according to the ESS life model and cost-benefit analysis, a static investment economic criterion which is easy and simple to be calculated is proposed to demonstrate the economic feasibility of ESS investment programs in the short term. Considering the time value of currency, a dynamic investment economic criterion is proposed later for long-term investment projects. Furthermore, the ESS sizing boundary of achieving profits could be also obtained according to the criteria which can indicate the economic attractiveness or resistance to ESS investors in the microgrid. A case study has verified its effectiveness. At the same time, sensitivity analysis is given to show the impact on key parameters, such as investment unit price and electricity purchase price on ESS investment.

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