Techno-economic analyis of battery storage for peak shaving and frequency containment reserve

Abstract

When does large scale battery storage become economically feasible? To answer this question and put a value on the different services battery storage can provide, we performed techno-economic analyses on the use of large-scale battery storage in Norwegian electricity distribution systems. In the first use case we looked at the feasibility of batteries for peak load shaving and thereby network charge reduction under the power based tariff structure. In the second use case, battery storage was used to reduce both peak load and peak infeed in order to comply with the 100 kW max feed-in rule that is part of the Norwegian prosumer regulation, the "Plusskundeordning". Both of these applications are far from economical at current prices. The third use case was about battery storage used to provide balancing power. This seems to be the most feasible application at the moment. We performed sensitivity analyses under different balancing prices, grid charges, battery degradation levels, battery rest value and capital costs, to identify where battery storage becomes profitable in the Norwegian market. We reference the description of new regulations, tariffs structures, the battery degradation model, the methodology used for the economic evaluation and the controller models for all use cases. The study was performed in the project IntegER.

Techno-economic analyis of battery storage for peak shaving and frequency containment reserve