Techno-Economic and Sizing Analysis of Battery Energy Storage System for Behind-the-Meter Application
As the cost of the battery energy storage system (BESS) is lower, the penetration rate of battery storage is rising in the behind-the-meter (BTM) market. BESS with time-of-use rates (TOU) for charge and discharge scheduling can be used to reduce electricity costs. This research uses 6,600KW contract...
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| Format: | Article |
| Language: | English |
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IEEE
2020-01-01
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| Series: | IEEE Access |
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| Online Access: | https://ieeexplore.ieee.org/document/9252091/ |
| _version_ | 1818431295815942144 |
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| author | Chih-Ta Tsai Erica M. Ocampo Teketay Mulu Beza Cheng-Chien Kuo |
| author_facet | Chih-Ta Tsai Erica M. Ocampo Teketay Mulu Beza Cheng-Chien Kuo |
| author_sort | Chih-Ta Tsai |
| collection | DOAJ |
| description | As the cost of the battery energy storage system (BESS) is lower, the penetration rate of battery storage is rising in the behind-the-meter (BTM) market. BESS with time-of-use rates (TOU) for charge and discharge scheduling can be used to reduce electricity costs. This research uses 6,600KW contract capacity for industrial customers as the study case. Through the BESS techno-economic simulation in Hybrid Optimization Models for Energy Resources (HOMER) Grid software, the optimal capacity planning can be obtained from the electricity demand. The results show that the contract capacity can be adjusted to 6,100kW with a project benefit of $68,557, levelized cost of energy (LCOE) of 0.09338 $/kWh, net present cost (NPC) of $-$24,768,508, internal rate of return (IRR) of 3.72%, return of investment (ROI) of 2.16%, and discounted payback of 8.37 years in the 500kW/1065kWh required BESS capacity case. The sensitivity of the electricity price, key components cost, and real interest rate are evaluated and the method will be applied as a reference for planning the BTM BESS of other utility customers. |
| first_indexed | 2024-12-14T15:47:02Z |
| format | Article |
| id | doaj.art-ef337aa0a3bd49799595adf074492ad6 |
| institution | Directory Open Access Journal |
| issn | 2169-3536 |
| language | English |
| last_indexed | 2024-12-14T15:47:02Z |
| publishDate | 2020-01-01 |
| publisher | IEEE |
| record_format | Article |
| series | IEEE Access |
| spelling | doaj.art-ef337aa0a3bd49799595adf074492ad62022-12-21T22:55:28ZengIEEEIEEE Access2169-35362020-01-01820373420374610.1109/ACCESS.2020.30366609252091Techno-Economic and Sizing Analysis of Battery Energy Storage System for Behind-the-Meter ApplicationChih-Ta Tsai0https://orcid.org/0000-0002-9740-5770Erica M. Ocampo1https://orcid.org/0000-0002-4661-0598Teketay Mulu Beza2https://orcid.org/0000-0002-2569-6839Cheng-Chien Kuo3https://orcid.org/0000-0003-4990-0459Department of Electrical Engineering, National Taiwan University of Science and Technology, Taipei, TaiwanDepartment of Electrical Engineering, National Taiwan University of Science and Technology, Taipei, TaiwanDepartment of Electrical Engineering, National Taiwan University of Science and Technology, Taipei, TaiwanDepartment of Electrical Engineering, National Taiwan University of Science and Technology, Taipei, TaiwanAs the cost of the battery energy storage system (BESS) is lower, the penetration rate of battery storage is rising in the behind-the-meter (BTM) market. BESS with time-of-use rates (TOU) for charge and discharge scheduling can be used to reduce electricity costs. This research uses 6,600KW contract capacity for industrial customers as the study case. Through the BESS techno-economic simulation in Hybrid Optimization Models for Energy Resources (HOMER) Grid software, the optimal capacity planning can be obtained from the electricity demand. The results show that the contract capacity can be adjusted to 6,100kW with a project benefit of $68,557, levelized cost of energy (LCOE) of 0.09338 $/kWh, net present cost (NPC) of $-$24,768,508, internal rate of return (IRR) of 3.72%, return of investment (ROI) of 2.16%, and discounted payback of 8.37 years in the 500kW/1065kWh required BESS capacity case. The sensitivity of the electricity price, key components cost, and real interest rate are evaluated and the method will be applied as a reference for planning the BTM BESS of other utility customers.https://ieeexplore.ieee.org/document/9252091/Techno-economic analysisbattery energy storageenergy arbitragepeak shavingBTM application |
| spellingShingle | Chih-Ta Tsai Erica M. Ocampo Teketay Mulu Beza Cheng-Chien Kuo Techno-Economic and Sizing Analysis of Battery Energy Storage System for Behind-the-Meter Application IEEE Access Techno-economic analysis battery energy storage energy arbitrage peak shaving BTM application |
| title | Techno-Economic and Sizing Analysis of Battery Energy Storage System for Behind-the-Meter Application |
| title_full | Techno-Economic and Sizing Analysis of Battery Energy Storage System for Behind-the-Meter Application |
| title_fullStr | Techno-Economic and Sizing Analysis of Battery Energy Storage System for Behind-the-Meter Application |
| title_full_unstemmed | Techno-Economic and Sizing Analysis of Battery Energy Storage System for Behind-the-Meter Application |
| title_short | Techno-Economic and Sizing Analysis of Battery Energy Storage System for Behind-the-Meter Application |
| title_sort | techno economic and sizing analysis of battery energy storage system for behind the meter application |
| topic | Techno-economic analysis battery energy storage energy arbitrage peak shaving BTM application |
| url | https://ieeexplore.ieee.org/document/9252091/ |
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