Abstract
The capacity of battery energy storage systems (BESS) is expected to increase for power system applications. However, as the cost of BESS is high, economic feasibility must be considered when using BESS in grid applications. Load leveling with BESS is one such application for which the economic implications have been analyzed in the literature. However, these studies do not sufficiently consider the fact that the leveled loads will lead to a change in electricity prices, thereby modifying charging/discharging operations of BESS. Additionally, in a competitive electricity market, electricity prices are not determined by the generator cost functions. Market participants’ strategic decisions also affect prices. Therefore, we conducted an economic analysis of load leveling with BESS in an electricity market from the perspective of a utility company and/or a government agency. In our analysis of the Korean market, we examine whether the leveled loads necessarily lead to economic benefits. Load leveling performance and the associated economic benefit are quantitatively analyzed for varying sizes of BESS. Further, the policy implications related to using BESS are derived from the analysis results.
Highlights
The urgent environmental need to reduce greenhouse gas emissions has led to the integration of renewable energy sources (RESs) into the power grid
It is expected that the load will be leveled more and the Mean-squared error (MSE) will decrease as the battery energy storage systems (ESS) (BESS) size increases
The results suggest that we need to rethink the purpose of load leveling
Summary
The urgent environmental need to reduce greenhouse gas emissions has led to the integration of renewable energy sources (RESs) into the power grid. The installed BESS capacity for power system applications is expected to increase consistently, for utility-scale applications and for distributed small-scale applications, whereby a large number of BESS are expected to be connected to PV systems and behind the meter [6,7]. This trend of increasing BESS usage is likely to be accelerated by the widespread adoption of electric vehicles (EVs), supported by improvements in vehicle-to-grid and grid-to-vehicle technologies [8]. It is estimated that USD 620 billion in investment in the vehicle and the electricity sectors will ensue [9]
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
