Stacked Benefits of Energy Storage in Microgrid Scheduling

Stacked value streams of hybrid energy storage systems in prosumer microgrids

“…The economic potential for the investment in an ESS also offering load following, peak shaving and outage mitigation services to the microgrid is also assessed with indicators like Net Present Value, Discounted Payback Period and Benefit Cost Ratio in (Sardi et al, 2016). An ESS also providing similar benefits with the aim of maximising profit to the microgrid owner is considered in (Jain et al, 2018); however, the authors did not include grid integration and market research, but concluded that stacked benefits in grid scenarios considering life cycles can be evaluated in future research. For a prosumer network, (Muqeet et al, 2019) scheduled the operation of a storage system with solar PV and grid power, which reduced grid consumption and also carbon-dioxide (CO 2 ) emissions by about 63% and 3,979 kg/day, respectively.…”

“…Further down the electricity distribution chain, ESS can still offer benefits to smaller networks. For grid-tied, offgrid, residential, industrial or commercial consumers and prosumer microgrids, ESS can provide financial benefits via energy arbitrage, reduced grid or diesel expenses, reduced greenhouse gas (GHG) emissions penalties and provide energy time-shift (Jain et al, 2018;Pei et al, 2019;Sardi et al, 2016). While these financial benefits may be easier to quantify the contributions of ESSs, technical benefits such as improved reliability, voltage fluctuation mitigation, congestion relief, decreased energy loss, distribution upgrade deferral or frequency stabilisation are more complicated to quantify in monetary terms, but are nonetheless some of the improvements noticed in systems with storage systems included (Pei et al, 2019;Tsagkou et al, 2017).…”

“…Despite the many services that an ESS can offer, a perceived downside to their utilisation is the high capital costs and replacement costs involved. ESSs are deemed to be expensive and give returns that are not commensurate with their investment, making it hard to assess that ESS investments can be profitable in a network (Brogan et al, 2019;Jain et al, 2018;Tsagkou et al, 2017). Brogan et al (2019) demonstrated that storage systems operated by transmission system operators may struggle for profitability under certain service payments; however, returns can be maximised through revenue stacking.…”

“…Brogan et al (2019) demonstrated that storage systems operated by transmission system operators may struggle for profitability under certain service payments; however, returns can be maximised through revenue stacking. Thus, to make a case for utilisation of storage systems, multiple value streams such as energy arbitrage, peak shaving, maximum demand penalties, and so on, need to be examined collectively to promote the inclusion of storage systems (Brogan et al, 2019;Jain et al, 2018;Tsagkou et al, 2017).…”

“…For a transmission network in Ireland (Brogan et al, 2019), the most important services required are primarily, energy arbitrage and then fast frequency response and provision of operating reserve. A distribution network required the storage system for energy arbitrage, frequency regulation and distribution investment deferral (Tsagkou et al, 2017), while for a microgrid, load following, outage mitigation, peak shaving, and frequency regulation were required (Jain et al, 2018). While these and similar works have focused on assessing the importance of storage systems to particular participants of the electricity value chain, none of the available literature have focused on the stacked storage services and associated revenues required to make storage systems financially viable in prosumer microgrids.…”