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

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

doi:10.3390/en10070833

Cited by 36 publications

(14 citation statements)

References 33 publications

(61 reference statements)

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“…The Tesla Power wall prices are used to define the BESS costs [70]. As shown in [75,76] the costs are feasible. The variation of BESS costs is shown in Section 3.5.…”

Section: Discussionmentioning

confidence: 99%

Comparison of Profitability of PV Electricity Sharing in Renewable Energy Communities in Selected European Countries

et al. 2020

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The economic value of photovoltaic (PV) systems depends on country-specific conditions. This study investigates the impact of grid fees, solar irradiance and local consumption on the profitability and penetration of PV systems and batteries in renewable energy communities. The linear optimization model calculates the optimal investments into PV and storages applied on a test community, which represents the European housing situation. The comparison of eight countries considers individual heat and cooling demands as well as sector coupling. Results show that renewable energy communities have the potential to reduce electricity costs due to community investments and load aggregation but do not necessarily lead to more distributed PV. Besides full-load hours, the energy component of electricity tariffs has the highest impact on PV distribution. Under current market conditions, battery energy storage systems are rarely profitable for increasing PV self-consumption but there is potential with power pricing. Renewable energy communities enable individuals to be a prosumer without the necessity of owning a PV system. This could lead to more (community) PV investments in the short term. Hence, it hinders investments in a saturated PV market.

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“…The Tesla Power wall prices are used to define the BESS costs [70]. As shown in [75,76] the costs are feasible. The variation of BESS costs is shown in Section 3.5.…”

Section: Discussionmentioning

confidence: 99%

Comparison of Profitability of PV Electricity Sharing in Renewable Energy Communities in Selected European Countries

et al. 2020

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“…Each of these systems has its own advantages and disadvantages, depending on the requirements of the application. According with [12], these requirements can be classified into two main categories: applications requiring high power density (bursts of high power for short periods of time-in these cases, SMES, supercapacitors/ultracapacitors, and flywheels are more appropriate)) and applications requiring high energy density (constant power for larger operation times-in these cases, CAES, PHS, and batteries are more appropriate-although for CAES and PHS the required infrastructure might be an inconvenient).…”

Section: Introductionmentioning

confidence: 99%

Development and 24 Hour Behavior Analysis of a Peak-Shaving Equipment with Battery Storage

et al. 2019

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This paper presents the development of a peak-shaving equipment, composed by a multilevel converter in a cascaded H-bridge topology and battery banks on the DC links. Between specific time periods, when the demand is higher, the equipment injects active power from the batteries into the grid to provide support to the system. During the other times of the day, when the demand is lower, the converter charges its battery banks with the exceeding (and low producing cost) energy from the grid. The charge and discharge control algorithms are implemented in a digital signal processor (DSP). The precise time of the day information is obtained from a real-time-clock from a global positioning system module (GPS), which communicates with the DSP through the serial interface. This paper presents the control algorithms and experimental results obtained in a 24 h continuous operation of the equipment.

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“…In power systems, the load profile can be characterized by the "peak load times" of the system-short periods of time when large amounts of power are required [1]. The peak load periods can occur at different times during the day, depending on the season of the year and the load composition (residential, commercial, or industrial).…”

Section: Introductionmentioning

confidence: 99%

“…By comparing the cost of grid upgrades, the grid operator may conclude that the BESS is also a valuable alternative in the long term. Recent work by Rahmann et al [1] proposed an approach to determine the break-even points for different BESS considering a wide range of life cycles, efficiency, energy price, and power price. The results presented in this work show that depending on the values of round trip efficiency, life cycles, and power price, there are BESS technologies that are already profitable when considering only peak shaving applications.…”

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confidence: 99%

Optimal Component Sizing for Peak Shaving in Battery Energy Storage System for Industrial Applications

et al. 2018

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Recent attention to industrial peak shaving applications sparked an increased interest in battery energy storage. Batteries provide a fast and high power capability, making them an ideal solution for this task. This work proposes a general framework for sizing of battery energy storage system (BESS) in peak shaving applications. A cost-optimal sizing of the battery and power electronics is derived using linear programming based on local demand and billing scheme. A case study conducted with real-world industrial profiles shows the applicability of the approach as well as the return on investment dependence on the load profile. At the same time, the power flow optimization reveals the best storage operation patterns considering a trade-off between energy purchase, peak-power tariff, and battery aging. This underlines the need for a general mathematical optimization approach to efficiently tackle the challenge of peak shaving using an energy storage system. The case study also compares the applicability of yearly and monthly billing schemes, where the highest load of the year/month is the base for the price per kW. The results demonstrate that batteries in peak shaving applications can shorten the payback period when used for large industrial loads. They also show the impacts of peak shaving variation on the return of investment and battery aging of the system. Energies 2018, 11, 2048 2 of 22costs. The electricity charge can be discriminated in subcomponents like the generation cost, taxes, and fees which represent a small portion of the total electricity payment of the customers. Accordingly, commercial and industrial customers are interested in decreasing energy and power costs, which are the most significant part of the total charges, without lowering their energy consumption. In this context, energy storage systems (ESS) can be used to help customers flatten their demand profile by storing energy during off-peak periods and releasing it during peak load periods.The deployment of ESS can achieve another benefit besides the reduction of demand charges for customers. For instance, system operators can reduce the need of network reinforcement by sizing the infrastructure for a more flat profile coupled with ESS, instead of designing it for the highest power demand [3]. Depending on the market conditions, other benefits can be achieved. The customers can take advantage of time of use energy price [4] by discharging the ESS when the energy price at the peak load periods is more expensive than the price during the off-peak periods. This can lead to additional electricity bill reduction [5].Energy storage system technologies are used for a variety of applications [6,7]. They can be classified in many different ways, according to the application area [8], based on the energy conversion [9], or depending on the quantity of energy that the ESS can provide [10]. For "power-type" applications like peak shaving, the ESS have to maintain a constant delivery of power [11].Although the improvements of battery energy storage sys...

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

Cited by 36 publications

References 33 publications

Comparison of Profitability of PV Electricity Sharing in Renewable Energy Communities in Selected European Countries

Comparison of Profitability of PV Electricity Sharing in Renewable Energy Communities in Selected European Countries

Development and 24 Hour Behavior Analysis of a Peak-Shaving Equipment with Battery Storage

Optimal Component Sizing for Peak Shaving in Battery Energy Storage System for Industrial Applications

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