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Comparing the Financial and Environmental Impact of Battery Energy Storage Systems and Diesel Generators on Microgrids

Author

Listed:
  • Tatiane Costa

    (Edson Mororó Moura Institute of Technology—ITEMM, Recife 51020-280, Brazil)

  • Amanda C. M. Souza

    (Edson Mororó Moura Institute of Technology—ITEMM, Recife 51020-280, Brazil)

  • Andrea Vasconcelos

    (Edson Mororó Moura Institute of Technology—ITEMM, Recife 51020-280, Brazil)

  • Ana Clara Rode

    (AES Brasil, Sao Paulo 04578-000, Brazil)

  • Roberto Dias Filho

    (Polytechnic College, University of Pernambuco, Recife 50720-001, Brazil)

  • Manoel H. N. Marinho

    (Polytechnic College, University of Pernambuco, Recife 50720-001, Brazil)

Abstract

This article presents a robust analysis based on the data obtained from a genuine microgrid in operation, simulated by utilizing a diesel generator (DG) in lieu of the Battery Energy Storage System (BESS) to meet the same load during periods of elevated energy costs. The study reveals that the BESS significantly outperforms the DG and the conventional electrical grid in various financial and environmental aspects. Environmentally, BESS accounts for zero CO 2 emissions, compared to the 67.32 tons of CO 2 emitted annually by the DG. Financially, the total cost of BESS over 20 years (USD 1,553,791.31) is lower than that of DG (USD 1,564,965.18) and the electrical grid (USD 2,726,181.09). Furthermore, BESS displays a lower Required Average Discharge Price—RADP (USD 0.38/kWh) and Required Average Price Spread—RAPS (USD 0.18/kWh) compared to DG (RADP: USD 0.39/kWh; RAPS: USD 0.22/kWh) and the electrical grid (RADP: USD 0.71/kWh; RAPS: USD 0.38/kWh). During periods of high-energy tariffs, BESS provides significant environmental benefits, but it also offers a more economically advantageous option to meet the load. It offers an energy-efficient and economically feasible solution for the operation of microgrids.

Suggested Citation

  • Tatiane Costa & Amanda C. M. Souza & Andrea Vasconcelos & Ana Clara Rode & Roberto Dias Filho & Manoel H. N. Marinho, 2023. "Comparing the Financial and Environmental Impact of Battery Energy Storage Systems and Diesel Generators on Microgrids," Sustainability, MDPI, vol. 15(23), pages 1-13, November.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:23:p:16136-:d:1284140
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    References listed on IDEAS

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    1. Shao, Shuai & Tan, Zhijia & Liu, Zhiyuan & Shang, Wenlong, 2022. "Balancing the GHG emissions and operational costs for a mixed fleet of electric buses and diesel buses," Applied Energy, Elsevier, vol. 328(C).
    2. Lai, Chun Sing & McCulloch, Malcolm D., 2017. "Levelized cost of electricity for solar photovoltaic and electrical energy storage," Applied Energy, Elsevier, vol. 190(C), pages 191-203.
    3. Luerssen, Christoph & Verbois, Hadrien & Gandhi, Oktoviano & Reindl, Thomas & Sekhar, Chandra & Cheong, David, 2021. "Global sensitivity and uncertainty analysis of the levelised cost of storage (LCOS) for solar-PV-powered cooling," Applied Energy, Elsevier, vol. 286(C).
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