Abstract
This paper presents an economic assessment of introducing solar-powered residential battery energy storage in the Madeira Island electric grid, where only micro-production for self-consumption is currently allowed. The evaluation was conducted against six local micro-producers using one year of energy consumption and solar photovoltaic production measurements and two distinct storage control strategies. Several inverter sizes and storage capacities were considered based on the six micro-producers’ consumption and production profiles. The results were then analyzed concerning year-long simulations and a projection for the next ten years. To this end, several indicators were assessed, including self-consumption, profit per Euro invested, number of cycles and storage degradation. The results obtained show that, despite the benefits of storage to increase the self-consumption rates, considerable drops in the storage prices are still necessary to achieve profitability during these devices’ lifetime. Furthermore, our results also highlight a very interesting trade-off between self-consumption, pre-charge and profitability, in a sense that higher levels of pre-charge increase the chances of reaching profitability even though this will imply considerable drops in the levels of self-consumption.
Highlights
Investments in solar photovoltaic (PV) technologies have experienced stable growth supported by the many policies and incentives to increase the installation of renewable energy sources (RES) [1].For example, an additional 70 GW was reported in 2016 alone [2]
In this paper, we present an economic assessment of solar-powered residential battery energy storage systems (BESS) on Madeira Island (Portugal), where, since 2014, only self-consumption is allowed, and any excess PV production must be curtailed [7,8]
This paper presents an economic assessment of solar-powered residential battery energy storage systems on Madeira Island, where only the self-consumption regime is currently allowed
Summary
Investments in solar photovoltaic (PV) technologies have experienced stable growth supported by the many policies and incentives to increase the installation of renewable energy sources (RES) [1].For example, an additional 70 GW was reported in 2016 alone [2]. The global investment declined due to the accentuate decrease in the PV system costs and increase of electricity prices, which has allowed many countries to reach grid parity, which refers to the point at which the cost of generating PV electricity equals the cost of buying it from the grid [2,3]. In such countries, directly consuming the solar PV generation (i.e., self-consumption, SC) became more attractive than feeding the PV production into the grid and, in return, receiving a subsidy (i.e., feed-in tariff) [2].
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