Economic Evaluation and Investment Decision-Making of Energy Storage System Under the Perspective of Uncertain Market Returns

Ying Meng and Yuming Huang ()
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Ying Meng: Sinopec Lubricant Company
Yuming Huang: North China Electric Power University

A chapter in Proceedings of the 2024 5th International Conference on Management Science and Engineering Management (ICMSEM 2024), 2024, pp 647-655 from Springer

Abstract: Abstract Under the dual-carbon background, China is vigorously developing a new type of power system mainly based on renewable energy power generation, and energy storage technology, as a key support for energy transition and large-scale application of renewable energy, is facing challenges in investment economics, technology and policy environment, despite its huge potential. Among them, investment economics is the most pressing, with uncertainties such as return on investment cycles and market fluctuations seriously affecting investors’ motivation to invest, which is not conducive to attracting investment in energy storage projects. In view of the exorbitant risk of energy storage investment. This paper uses a techno-economic assessment to evaluate energy storage’s financial viability, focusing on a typical electrochemical storage plant in Shandong. It conducts a sensitivity analysis to understand key factors influencing the economics of such projects, aiming to inform market participants’ decisions.

Keywords: Energy storage plant; Economics; NPV; IRR; Sensitivity analysis (search for similar items in EconPapers)
Date: 2024
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DOI: 10.2991/978-94-6463-570-6_64

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