Break-even points of battery energy storage systems for peak shaving applications

Claudia Rahmann, Benjamin Mac-Clure, Vijay Vittal, Felipe Valencia

Research output: Contribution to journalArticle

7 Citations (Scopus)

Abstract

In the last few years, several investigations have been carried out in the field of optimal sizing of energy storage systems (ESSs) at both the transmission and distribution levels. Nevertheless, most of these works make important assumptions about key factors affecting ESS profitability such as efficiency and life cycles and especially about the specific costs of the ESS, without considering the uncertainty involved. In this context, this work aims to answer the question: what should be the costs of different ESS technologies in order to make a profit when considering peak shaving applications? The paper presents a comprehensive sensitivity analysis of the interaction between the profitability of an ESS project and some key parameters influencing the project performance. The proposed approach determines the break-even points for different ESSs considering a wide range of life cycles, efficiencies, energy prices, and power prices. To do this, an optimization algorithm for the sizing of ESSs is proposed from a distribution company perspective. From the results, it is possible to conclude that, depending on the values of round trip efficiency, life cycles, and power price, there are four battery energy storage systems (BESS) technologies that are already profitable when only peak shaving applications are considered: lead acid, NaS, ZnBr, and vanadium redox.

Original languageEnglish (US)
Article number833
JournalEnergies
Volume10
Issue number7
DOIs
StatePublished - 2017

Fingerprint

Energy Storage
Storage System
Battery
Energy storage
Life Cycle
Life cycle
Profitability
Costs
Energy Efficiency
Vanadium
Sensitivity analysis
Energy efficiency
Sensitivity Analysis
Profit
Optimization Algorithm
Uncertainty
Acids
Interaction
Range of data

Keywords

  • Distributed power generation
  • Energy storage systems
  • Peak shaving

ASJC Scopus subject areas

  • Computer Science(all)

Cite this

Break-even points of battery energy storage systems for peak shaving applications. / Rahmann, Claudia; Mac-Clure, Benjamin; Vittal, Vijay; Valencia, Felipe.

In: Energies, Vol. 10, No. 7, 833, 2017.

Research output: Contribution to journalArticle

Rahmann, Claudia ; Mac-Clure, Benjamin ; Vittal, Vijay ; Valencia, Felipe. / Break-even points of battery energy storage systems for peak shaving applications. In: Energies. 2017 ; Vol. 10, No. 7.
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