Break-even point of energy storage power station

This work assesses the economic feasibility of replacing conventional peak power plants, such as Diesel Generator Sets (DGS), by using distributed battery energy storage systems (BESS), to implement Energy Time Shift during peak hours for commercial consumers, whose energy prices vary as a function of energy time of use (ToU tariffs).

Break-even point (BEP) for four battery technologies: OPzS; NiCd; Li-NCA; and FeCr. A reduction of 31%, 38% and 26% in the costs of OPzS, Li-NCA and FeCr makes the BESS viable. In a 5-year horizon, these technologies would become economically attractive.

This paper illustrates the potential revenue of a generic energy storage system with 70% round trip efficiency and 1–14 h energy/power ratio, considering a price-taking dispatch. The breakeven overnight installed cost is also calculated to provide the cost below which energy arbitrage would have been profitable for a flow battery.

Breakeven installed cost per MW ranged from $30 (1 MW, 14 MWh, 2009) to $340 (1 MW, 1 MWh, 2008). Energy storage systems (ESS) are expected to be used extensively in the near future and to be a game changer for the grid operation (Tsagkou et al. 2017; Usera et al. 2017 ). Technological and financial issues are still challenges to be overcome.

The CBA was carried out through the break-even point (BEP) calculation for four different battery technologies: lead-acid (OPzS), NiCd, Li-NCA and Flow (FeCr), considering the singularities of each type of battery, the electricity tariff and DGS operation costs.

Economic feasibility of replacing conventional peak power plants by using distributed (BESS). A commercial consumer connected to the MV network (Campinas/Brazil). Break-even point (BEP) for four battery technologies: OPzS; NiCd; Li-NCA; and FeCr. A reduction of 31%, 38% and 26% in the costs of OPzS, Li-NCA and FeCr makes the BESS viable.