A methodology for techno-economic evaluation of asymmetric energy storage systems: A nuclear energy case study

Abstract

This paper discusses a novel methodology for the analysis of energy storage system. This methodology combines engineering and economic modelling to assess the relative economic performance of plant designs within a simulated UK electricity market. It presents a case study that explores whether a nuclear power plant can be combined with a liquid air energy storage plant to allow the resultant hybrid plant to provide a load-following electricity supply. The approach adopted is distinct from much of the work on conventional load following nuclear power plant operations, as in our case the underlying nuclear energy production does not vary. The methodology expands the previous literature by performing market-led system optimisation to best design the output profile of the hybrid plant to improve economic performance in the UK electricity grid. Whilst this combined modelling approach has been demonstrated in the context of a specific plant design, this methodology might be applied to any asymmetric energy storage system to assess its economic viability. This work is both contrasting and complementary to the levelized cost of storage approach. Rather than providing the price at which energy must be sold to make a storage system economically viable, this approach considers how volatile the electricity spot market would have to become to make such a system profitable. The ability to explore different market conditions is a major omission from the existing literature on energy storage systems.