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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.
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Category

Academic chapter/article/Conference paper

Client

  • Research Council of Norway (RCN) / 269420

Language

English

Author(s)

Affiliation

  • SINTEF Energy Research / Energisystemer

Year

2019

Publisher

IEEE (Institute of Electrical and Electronics Engineers)

Book

2019 16th International Conference on the European Energy Market - EEM 2019

Issue

2019

ISBN

978-1-7281-1257-2

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