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Empirical Study on Cost–Benefit Evaluation of New Energy Storage in Typical Grid-Side Business Models: A Case Study of Hebei Province

Author

Listed:
  • Guang Tian

    (State Grid Hebei Electric Power Co., Ltd., Shijiazhuang 050000, China
    Department of Energy and Power Engineering, Tsinghua University, Beijing 100084, China)

  • Penghui Liu

    (State Grid Hebei Electric Power Co., Ltd., Shijiazhuang 050000, China)

  • Yang Yang

    (State Grid Hebei Electric Power Co., Ltd., Shijiazhuang 050000, China)

  • Bin Che

    (State Grid Hebei Electric Power Co., Ltd., Shijiazhuang 050000, China)

  • Yuanying Chi

    (School of Economics and Management, Beijing University of Technology, Beijing 100124, China)

  • Junqi Wang

    (School of Economics and Management, Beijing University of Technology, Beijing 100124, China)

Abstract

Energy storage technology is a critical component in supporting the construction of new power systems and promoting the low-carbon transformation of the energy system. Currently, new energy storage in China is in a pivotal transition phase from research and demonstration to the initial stage of commercialization. However, it still faces numerous challenges, including incomplete business models, inadequate institutional policies, and unclear cost and revenue recovery mechanisms, particularly on the generation and grid sides. Therefore, this paper focuses on grid-side new energy storage technologies, selecting typical operational scenarios to analyze and compare their business models. Based on the lifecycle assessment method and techno-economic theories, the costs and benefits of various new energy storage technologies are compared and analyzed. This study aims to provide rational suggestions and incentive policies to enhance the technological maturity and economic feasibility of grid-side energy storage, improve cost recovery mechanisms, and promote the sustainable development of power grids. The results indicate that grid-side energy storage business models are becoming increasingly diversified, with typical models including shared leasing, spot market arbitrage, capacity price compensation, unilateral dispatch, and bilateral trading. From the perspectives of economic efficiency and technological maturity, lithium-ion batteries exhibit significant advantages in enhancing renewable energy consumption due to their low initial investment, high returns, and fast response. Compressed air and vanadium redox flow batteries excel in long-duration storage and cycle life. While molten salt and hydrogen storage face higher financial risks, they show prominent potential in cross-seasonal storage and low-carbon transformation. The sensitivity analysis indicates that the peak–valley electricity price differential and the unit investment cost of installed capacity are the key variables influencing the economic viability of grid-side energy storage. The charge–discharge efficiency and storage lifespan affect long-term returns, while technological advancements and market optimization are expected to further enhance the economic performance of energy storage systems, promoting their commercial application in electricity markets.

Suggested Citation

  • Guang Tian & Penghui Liu & Yang Yang & Bin Che & Yuanying Chi & Junqi Wang, 2025. "Empirical Study on Cost–Benefit Evaluation of New Energy Storage in Typical Grid-Side Business Models: A Case Study of Hebei Province," Energies, MDPI, vol. 18(8), pages 1-21, April.
    • Handle: RePEc:gam:jeners:v:18:y:2025:i:8:p:2082-:d:1637089
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    References listed on IDEAS

    as
    1. Wu, Yunna & Zhang, Ting & Gao, Rui & Wu, Chenghao, 2021. "Portfolio planning of renewable energy with energy storage technologies for different applications from electricity grid," Applied Energy, Elsevier, vol. 287(C).
    2. Paulo Rotella Junior & Luiz Célio Souza Rocha & Sandra Naomi Morioka & Ivan Bolis & Gianfranco Chicco & Andrea Mazza & Karel Janda, 2021. "Economic Analysis of the Investments in Battery Energy Storage Systems: Review and Current Perspectives," Energies, MDPI, vol. 14(9), pages 1-29, April.
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