Model-based Economic Assessment of Stationary Battery Systems Providing Primary Control Reserve. (November 2016)

• Record Type: Journal Article
• Authors: Fleer, Johannes; Zurmühlen, Sebastian; Badeda, Julia; Stenzel, Peter; Hake, Jürgen-Friedrich; Sauer, Dirk Uwe
• Is Part Of: Energy procedia. Volume 99(2016)
• Page Start: 11
• Page End: 24
• Publication Date: 2016-11
• Subjects: Primary control reserve -- battery energy storage system -- techno-economic assessment -- battery aging -- net present value approach; Power resources -- Congresses; Power resources -- Periodicals; Power resources; Conference proceedings; Periodicals; 333.7905
• DOI: 10.1016/j.egypro.2016.10.093
• Languages: English
• ISSNs: 1876-6102

Abstract

Abstract: Rapidly decreasing battery prices and high capacity prices on the German primary control reserve (PCR) market promote the attractiveness of battery energy storage systems (BESS) for primary control provision. In order to assess the economic feasibility in this application field, two case studies based on a 2 MWh BESS are performed. By coupling a PCR simulation model with a battery aging model, battery lifetimes are estimated. Costs and revenues occurring during the lifetime are calculated using the net present value approach. The results indicate that a BESS with a power-to-energy ratio of 1:2 is not economically feasible under the current framework. A BESS with a power-to-energy ratio of 1:1 will break even after approximately nine years of operation. Decreasing battery system prices are likely to increase the price pressure on the PCR market leading to decreasing revenues for PCR supply. Battery aging results suggest similar aging behavior for both systems presented due to the prevalence of shallow DoD cycles and the resulting predominance of calendar aging.