Cloud energy storage for residential and small commercial consumers: A business case study. (15th February 2017)

• Record Type: Journal Article
• Authors: Liu, Jingkun; Zhang, Ning; Kang, Chongqing; Kirschen, Daniel; Xia, Qing
• Is Part Of: Applied energy. Volume 188(2017)
• Page Start: 226
• Page End: 236
• Publication Date: 2017-02-15
• Subjects: Energy storage -- Energy internet -- Cloud -- Business model -- Distributed energy storage -- Sharing economy -- Economies of scale; Power (Mechanics) -- Periodicals; Energy conservation -- Periodicals; Energy conversion -- Periodicals; 621.042
• DOI: 10.1016/j.apenergy.2016.11.120
• Languages: English
• ISSNs: 0306-2619

Abstract

Graphical abstract: Highlights: A virtual distributed energy storage service using centralized storage facilities. Architecture and business model of Cloud Energy Storage. Operation mechanism of consumer and operator for Cloud Energy Storage. Profitability analysis of Cloud Energy Storage using actual power system data. Abstract: Energy storage is extensively recognized as a significant potential resource for balancing generation and load in future power systems. Although small residential and commercial consumers of electrical energy can now purchase energy storage systems, many factors, such as cost, policy and control efficiency, limit the spread of distributed energy storage (DES). This paper proposes a new type of DES—cloud energy storage (CES)—that is capable of providing energy storage services at a substantially lower cost. This grid-based storage service enables ubiquitous and on-demand access to a shared pool of grid-scale energy storage resources. It provides users the ability to store and withdraw electrical energy to and from centralized batteries. This paper describes the concept of CES and the control and communication technologies that are required for its implementation and its operating mechanism, as well as its business model. Simulation results that are based on actual power system operating data demonstrate the feasibility and economic benefit of CES.