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The development of techno-economic models for the assessment of utility-scale electro-chemical battery storage systems

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  • Rahman, Md Mustafizur
  • Oni, Abayomi Olufemi
  • Gemechu, Eskinder
  • Kumar, Amit

Abstract

The decision to use a certain type of energy storage system for a stationary application depends largely on its economic performance. The electro-chemical energy storage systems are well known for transportation and portable applications. The evaluation of techno-economic feasibility of different electro-chemical energy storage systems for utility-scale stationary applications has received less attention. In this study, bottom-up techno-economic models were developed for five electro-chemical battery storage technologies: sodium-sulfur, lithium-ion, valve-regulated lead-acid, nickel–cadmium, and vanadium redox flow. Four stationary application scenarios – bulk energy storage, transmission and distribution investment deferral, frequency regulation, and support of voltage regulation – were assessed to evaluate the techno-economic feasibility. Life cycle costs were estimated for capacities of 5–100 MW for bulk energy storage, 5–25 MW for transmission and distribution investment deferral, 5–100 MW for frequency regulation, and 5–30 MW for support of voltage regulation. Sensitivity and uncertainty analyses were carried out to examine the extent to which the levelized cost of storage is affected by changes in input parameters. The base case results show that the levelized cost of storage are in the range of $199–$941/MWh for the sodium-sulfur, $180–$1032/MWh for the lithium-ion, $410–$1184/MWh for the valve-regulated lead-acid, $802–$1991/MWh for the nickel–cadmium, and $267–$3794/MWh for the vanadium redox flow, depending on the application scenario. The results also show that when the discharge duration increases, the levelized cost of storage decreases because of economies of scale. A vanadium redox flow battery is not economically suitable for frequency regulation and support of voltage regulation given its short discharge duration.

Suggested Citation

  • Rahman, Md Mustafizur & Oni, Abayomi Olufemi & Gemechu, Eskinder & Kumar, Amit, 2021. "The development of techno-economic models for the assessment of utility-scale electro-chemical battery storage systems," Applied Energy, Elsevier, vol. 283(C).
    • Handle: RePEc:eee:appene:v:283:y:2021:i:c:s0306261920317256
    DOI: 10.1016/j.apenergy.2020.116343
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    2. Coriolano Salvini & Ambra Giovannelli, 2022. "Techno-Economic Comparison of Utility-Scale Compressed Air and Electro-Chemical Storage Systems," Energies, MDPI, vol. 15(18), pages 1-16, September.
    3. Ashwani Kumar Malviya & Mehdi Zarehparast Malekzadeh & Francisco Enrique Santarremigia & Gemma Dolores Molero & Ignacio Villalba-Sanchis & Victor Yepes, 2024. "A Formulation Model for Computations to Estimate the Lifecycle Cost of NiZn Batteries," Sustainability, MDPI, vol. 16(5), pages 1-22, February.
    4. Yuan, Meng & Sorknæs, Peter & Lund, Henrik & Liang, Yongtu, 2022. "The bidding strategies of large-scale battery storage in 100% renewable smart energy systems," Applied Energy, Elsevier, vol. 326(C).
    5. Bahloul, Mohamed & Daoud, Mohamed & Khadem, Shafiuzzaman K., 2022. "A bottom-up approach for techno-economic analysis of battery energy storage system for Irish grid DS3 service provision," Energy, Elsevier, vol. 245(C).
    6. Rahman, Md Mustafizur & Gemechu, Eskinder & Oni, Abayomi Olufemi & Kumar, Amit, 2023. "The development of a techno-economic model for assessment of cost of energy storage for vehicle-to-grid applications in a cold climate," Energy, Elsevier, vol. 262(PA).
    7. Smolenski, Robert & Szczesniak, Pawel & Drozdz, Wojciech & Kasperski, Lukasz, 2022. "Advanced metering infrastructure and energy storage for location and mitigation of power quality disturbances in the utility grid with high penetration of renewables," Renewable and Sustainable Energy Reviews, Elsevier, vol. 157(C).

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