Exploring the economics of large scale lithium ion and lead acid batteries performing frequency response

Provision of ancillary services is one of the key sources of revenue for energy storage. Hence, in order to understand the economic viability of a given technology it is important to assess its potential profitability and performance through provision of such services. Firm Frequency Response (FFR)...

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Main Authors: F.A.V. Biggins, S. Homan, D. Roberts, S. Brown
Format: Article
Language:English
Published: Elsevier 2021-05-01
Series:Energy Reports
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2352484721001566
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author F.A.V. Biggins
S. Homan
D. Roberts
S. Brown
author_facet F.A.V. Biggins
S. Homan
D. Roberts
S. Brown
author_sort F.A.V. Biggins
collection DOAJ
description Provision of ancillary services is one of the key sources of revenue for energy storage. Hence, in order to understand the economic viability of a given technology it is important to assess its potential profitability and performance through provision of such services. Firm Frequency Response (FFR) is a type of ancillary service used for balancing grid frequency; this work uses grid frequency data to determine the real-time usage of lithium ion and lead acid batteries providing FFR. Battery capacity is balanced in real-time using several different proposed strategies; degradation and lifetime are then calculated, along with Net Present Value (NPV) for the different battery types, to ascertain their profitability. Lead acid batteries are found to not be worthwhile investments for this usage. On the other hand, lithium ion batteries are found to be suitable. In particular, battery chemistries providing high power density are economically preferable to those with high energy densities. It is found that the highest NPV (of the order £105) can be achieved when the batteries are used in a way that reduces degradation and increases lifetime; practically, this equates to a high level of capacity balancing in order to maintain battery capacity close to its mid-point, even if this is more costly in the short-term.
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spelling doaj.art-1e9f61e7dd5249a0b55d2b1c08644ffa2022-12-21T22:09:32ZengElsevierEnergy Reports2352-48472021-05-0173441Exploring the economics of large scale lithium ion and lead acid batteries performing frequency responseF.A.V. Biggins0S. Homan1D. Roberts2S. Brown3University of Sheffield, Sheffield, England, S10 2TG, United Kingdom of Great Britain and Northern IrelandUniversity of Sheffield, Sheffield, England, S10 2TG, United Kingdom of Great Britain and Northern IrelandUniversity of Sheffield, Sheffield, England, S10 2TG, United Kingdom of Great Britain and Northern IrelandCorresponding author.; University of Sheffield, Sheffield, England, S10 2TG, United Kingdom of Great Britain and Northern IrelandProvision of ancillary services is one of the key sources of revenue for energy storage. Hence, in order to understand the economic viability of a given technology it is important to assess its potential profitability and performance through provision of such services. Firm Frequency Response (FFR) is a type of ancillary service used for balancing grid frequency; this work uses grid frequency data to determine the real-time usage of lithium ion and lead acid batteries providing FFR. Battery capacity is balanced in real-time using several different proposed strategies; degradation and lifetime are then calculated, along with Net Present Value (NPV) for the different battery types, to ascertain their profitability. Lead acid batteries are found to not be worthwhile investments for this usage. On the other hand, lithium ion batteries are found to be suitable. In particular, battery chemistries providing high power density are economically preferable to those with high energy densities. It is found that the highest NPV (of the order £105) can be achieved when the batteries are used in a way that reduces degradation and increases lifetime; practically, this equates to a high level of capacity balancing in order to maintain battery capacity close to its mid-point, even if this is more costly in the short-term.http://www.sciencedirect.com/science/article/pii/S2352484721001566Ancillary servicesFFRLithium ionLead acidEconomic analysis
spellingShingle F.A.V. Biggins
S. Homan
D. Roberts
S. Brown
Exploring the economics of large scale lithium ion and lead acid batteries performing frequency response
Energy Reports
Ancillary services
FFR
Lithium ion
Lead acid
Economic analysis
title Exploring the economics of large scale lithium ion and lead acid batteries performing frequency response
title_full Exploring the economics of large scale lithium ion and lead acid batteries performing frequency response
title_fullStr Exploring the economics of large scale lithium ion and lead acid batteries performing frequency response
title_full_unstemmed Exploring the economics of large scale lithium ion and lead acid batteries performing frequency response
title_short Exploring the economics of large scale lithium ion and lead acid batteries performing frequency response
title_sort exploring the economics of large scale lithium ion and lead acid batteries performing frequency response
topic Ancillary services
FFR
Lithium ion
Lead acid
Economic analysis
url http://www.sciencedirect.com/science/article/pii/S2352484721001566
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