The efficacy of battery energy-storage systems installed in electricity generation and distribution plants in South Africa

South Africa is currently experiencing electricity load constraints during peak, standard and off-peak hours. The electricity utility, Eskom, has to implement frequent loadshedding to prevent a total blackout of the electrical grid. These load constraints are continuing to affect the country’s abili...

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Main Authors: Thabelo Mamphogoro, Nkosinathi Madushele, Jan Harm Christiaan Pretorius
Format: Article
Language:English
Published: Elsevier 2022-11-01
Series:Energy Reports
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2352484722019011
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author Thabelo Mamphogoro
Nkosinathi Madushele
Jan Harm Christiaan Pretorius
author_facet Thabelo Mamphogoro
Nkosinathi Madushele
Jan Harm Christiaan Pretorius
author_sort Thabelo Mamphogoro
collection DOAJ
description South Africa is currently experiencing electricity load constraints during peak, standard and off-peak hours. The electricity utility, Eskom, has to implement frequent loadshedding to prevent a total blackout of the electrical grid. These load constraints are continuing to affect the country’s ability to sustain electricity supply. The investment model presented in this study analyzes the investment scenario, which demonstrates the economic benefits of the Battery Energy-Storage System (BESS). The primary focus of this study is to analyse the grid-load profile by assessing three applications: peak-load shaving, load-levelling and maintenance-deferral in different market segments. The total required BESS capacity is attained by combining the required capacity from three BESS applications that are used to develop an investment case. The secondary focus is to develop an investment case and to analyse the economic benefits by evaluating five variables using the Discounted Cash-Flow (DCF) model: Net Present Value (NPV), Internal Rate of Return (IRR), cash flow, Return on Investment (ROI) and payback period. The final expected output results of the study are the investment model used to demonstrate the economic benefits of BESS. These are identified by exploring three BESS applications analysed with the data obtained from the national grid-load profile to assess the grid behaviour and the need to introduce BESS. The results of the study identified the viability of investing in BESS.
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spelling doaj.art-200135e22ac04ed5ac3b1291838980f42023-01-18T04:31:46ZengElsevierEnergy Reports2352-48472022-11-018463471The efficacy of battery energy-storage systems installed in electricity generation and distribution plants in South AfricaThabelo Mamphogoro0Nkosinathi Madushele1Jan Harm Christiaan Pretorius2Postgraduate School of Engineering Management, University of Johannesburg, Johanneburg, South AfricaPostgraduate School of Engineering Management, University of Johannesburg, Johanneburg, South AfricaCorresponding author.; Postgraduate School of Engineering Management, University of Johannesburg, Johanneburg, South AfricaSouth Africa is currently experiencing electricity load constraints during peak, standard and off-peak hours. The electricity utility, Eskom, has to implement frequent loadshedding to prevent a total blackout of the electrical grid. These load constraints are continuing to affect the country’s ability to sustain electricity supply. The investment model presented in this study analyzes the investment scenario, which demonstrates the economic benefits of the Battery Energy-Storage System (BESS). The primary focus of this study is to analyse the grid-load profile by assessing three applications: peak-load shaving, load-levelling and maintenance-deferral in different market segments. The total required BESS capacity is attained by combining the required capacity from three BESS applications that are used to develop an investment case. The secondary focus is to develop an investment case and to analyse the economic benefits by evaluating five variables using the Discounted Cash-Flow (DCF) model: Net Present Value (NPV), Internal Rate of Return (IRR), cash flow, Return on Investment (ROI) and payback period. The final expected output results of the study are the investment model used to demonstrate the economic benefits of BESS. These are identified by exploring three BESS applications analysed with the data obtained from the national grid-load profile to assess the grid behaviour and the need to introduce BESS. The results of the study identified the viability of investing in BESS.http://www.sciencedirect.com/science/article/pii/S2352484722019011Battery-energy-storage systemLoad-levellingLoad-shavingMaintenance-deferralNet present value
spellingShingle Thabelo Mamphogoro
Nkosinathi Madushele
Jan Harm Christiaan Pretorius
The efficacy of battery energy-storage systems installed in electricity generation and distribution plants in South Africa
Energy Reports
Battery-energy-storage system
Load-levelling
Load-shaving
Maintenance-deferral
Net present value
title The efficacy of battery energy-storage systems installed in electricity generation and distribution plants in South Africa
title_full The efficacy of battery energy-storage systems installed in electricity generation and distribution plants in South Africa
title_fullStr The efficacy of battery energy-storage systems installed in electricity generation and distribution plants in South Africa
title_full_unstemmed The efficacy of battery energy-storage systems installed in electricity generation and distribution plants in South Africa
title_short The efficacy of battery energy-storage systems installed in electricity generation and distribution plants in South Africa
title_sort efficacy of battery energy storage systems installed in electricity generation and distribution plants in south africa
topic Battery-energy-storage system
Load-levelling
Load-shaving
Maintenance-deferral
Net present value
url http://www.sciencedirect.com/science/article/pii/S2352484722019011
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