Abstract
Energy storage can store surplus electricity generation and provide power system flexibility. A Generation Integrated Energy Storage system (GIES) is a class of energy storage that stores energy at some point along with the transformation between the primary energy form and electricity. The investigation of the economic and financial merits of novel energy storage systems and GIES is relevant as these technologies are in their infancy, and there are multiple technological, economic, and financial uncertainties and opportunities. This paper presents and applies a state-of-the-art model to compare the economics and financial merits for GIES (with pumped-heat energy storage) and non-GIES (with a Lithium-ion battery) systems coupled with wind generation in the United Kingdom. The deterministic, risk, and sensitivity analyses show that, for GIES’s economics, the key driver is the generator capital cost; for non-GIES, the energy storage capital cost is the most important factor. A Monte Carlo analysis shows that the levelized cost of electricity values for GIES and non-GIES are 0.05 £/kWh - 0.12 £/kWh and 0.07 £/kWh - 0.11 £/kWh, respectively, for a 100 MW wind power generator and 100 MWh energy storage. The internal rate of return values for GIES and non-GIES are uncertain and range between 2%-22% and 5%–14%, respectively.
Highlights
It is possible to divide energy storage technologies into two classes: Generation Integrated Energy Storage system (GIES) and non-GIES.Non-GIES is a grid-scale energy storage comprised of electrochemical energy storage including batteries
The case studies assessed in this work are GIES and non-GIES
There is a need for an increasing amount of non-dispatchable sources of electricity from low carbon power generators to support a low carbon economy
Summary
It is possible to divide energy storage technologies into two classes: Generation Integrated Energy Storage system (GIES) and non-GIES. Non-GIES is a grid-scale energy storage comprised of electrochemical energy storage including batteries. Batteries, such as Lithium-ion, have high round-trip efficiency and power along with energy density. Current studies are relatively oversimplified and do not account for key relevant indicators, e.g. the length of debt and sources of financing It is unclear which parameters (i.e. economic, financial, and technical) are driving the economic and financial performance of GIES and non-GIES. The DCF model includes the most relevant technical, financial, and economic inputs, and it can be applied to all energy storage technologies. The case studies assessed in this work are GIES (an integrated wind power generator with a compressor and pumped-heat energy storage) and non-GIES (a permanent magnet synchronous machine wind power generator with a Lithium-ion battery). A state-of-the-art and comprehensive DCF model tailored for the economic and financial appraisal of energy storage technologies
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.
