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Break-Even Points of Battery Energy Storage Systems for Peak Shaving Applications

Author

Listed:
  • Claudia Rahmann

    (Department of Electrical Engineering, University of Chile, 8370451 Santiago, Chile)

  • Benjamin Mac-Clure

    (Department of Electrical Engineering, University of Chile, 8370451 Santiago, Chile)

  • Vijay Vittal

    (School of Electrical, Computer and Energy Engineering, Arizona State University, P.O. Box 875706, Tempe, AZ 85287, USA)

  • Felipe Valencia

    (Department of Electrical Engineering, University of Chile, 8370451 Santiago, Chile)

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.

Suggested Citation

  • Claudia Rahmann & Benjamin Mac-Clure & Vijay Vittal & Felipe Valencia, 2017. "Break-Even Points of Battery Energy Storage Systems for Peak Shaving Applications," Energies, MDPI, vol. 10(7), pages 1-13, June.
    • Handle: RePEc:gam:jeners:v:10:y:2017:i:7:p:833-:d:102246
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    References listed on IDEAS

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    1. Díaz-González, Francisco & Sumper, Andreas & Gomis-Bellmunt, Oriol & Villafáfila-Robles, Roberto, 2012. "A review of energy storage technologies for wind power applications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(4), pages 2154-2171.
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    Cited by:

    1. Rodrigo Martins & Holger C. Hesse & Johanna Jungbauer & Thomas Vorbuchner & Petr Musilek, 2018. "Optimal Component Sizing for Peak Shaving in Battery Energy Storage System for Industrial Applications," Energies, MDPI, vol. 11(8), pages 1-22, August.
    2. Lange, Christopher & Rueß, Alexandra & Nuß, Andreas & Öchsner, Richard & März, Martin, 2020. "Dimensioning battery energy storage systems for peak shaving based on a real-time control algorithm," Applied Energy, Elsevier, vol. 280(C).
    3. Rafał Kuźniak & Artur Pawelec & Artur Bartosik & Marek Pawełczyk, 2022. "Determination of the Electricity Storage Power and Capacity for Cooperation with the Microgrid Implementing the Peak Shaving Strategy in Selected Industrial Enterprises," Energies, MDPI, vol. 15(13), pages 1-20, June.
    4. Eleonora Achiluzzi & Kirushaanth Kobikrishna & Abenayan Sivabalan & Carlos Sabillon & Bala Venkatesh, 2020. "Optimal Asset Planning for Prosumers Considering Energy Storage and Photovoltaic (PV) Units: A Stochastic Approach," Energies, MDPI, vol. 13(7), pages 1-20, April.
    5. Haiteng Han & Hantao Cui & Shan Gao & Qingxin Shi & Anjie Fan & Chen Wu, 2018. "A Remedial Strategic Scheduling Model for Load Serving Entities Considering the Interaction between Grid-Level Energy Storage and Virtual Power Plants," Energies, MDPI, vol. 11(9), pages 1-19, September.
    6. Carmona, Roberto & Miranda, Ricardo & Rodriguez, Pablo & Garrido, René & Serafini, Daniel & Rodriguez, Angel & Mena, Marcelo & Fernandez Gil, Alejandro & Valdes, Javier & Masip, Yunesky, 2024. "Assessment of the green hydrogen value chain in cases of the local industry in Chile applying an optimization model," Energy, Elsevier, vol. 300(C).
    7. Wilson Cesar Sant’Ana & Robson Bauwelz Gonzatti & Germano Lambert-Torres & Erik Leandro Bonaldi & Bruno Silva Torres & Pedro Andrade de Oliveira & Rondineli Rodrigues Pereira & Luiz Eduardo Borges-da-, 2019. "Development and 24 Hour Behavior Analysis of a Peak-Shaving Equipment with Battery Storage," Energies, MDPI, vol. 12(11), pages 1-22, May.
    8. Coriolano Salvini & Ambra Giovannelli, 2022. "Techno-Economic Comparison of Utility-Scale Compressed Air and Electro-Chemical Storage Systems," Energies, MDPI, vol. 15(18), pages 1-16, September.
    9. Julian David Hunt & Behnam Zakeri & Andreas Nascimento & Diego Augusto de Jesus Pacheco & Epari Ritesh Patro & Bojan Đurin & Márcio Giannini Pereira & Walter Leal Filho & Yoshihide Wada, 2023. "Isothermal Deep Ocean Compressed Air Energy Storage: An Affordable Solution for Seasonal Energy Storage," Energies, MDPI, vol. 16(7), pages 1-18, March.
    10. Petkov, Ivalin & Gabrielli, Paolo, 2020. "Power-to-hydrogen as seasonal energy storage: an uncertainty analysis for optimal design of low-carbon multi-energy systems," Applied Energy, Elsevier, vol. 274(C).
    11. Johannes Radl & Andreas Fleischhacker & Frida Huglen Revheim & Georg Lettner & Hans Auer, 2020. "Comparison of Profitability of PV Electricity Sharing in Renewable Energy Communities in Selected European Countries," Energies, MDPI, vol. 13(19), pages 1-24, September.

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