The development of techno-economic models for the assessment of utility-scale electro-chemical battery storage systems

Md Mustafizur Rahman, Abayomi Olufemi Oni, Eskinder Gemechu and Amit Kumar

Applied Energy, 2021, vol. 283, issue C, No S0306261920317256

Abstract: The decision to use a certain type of energy storage system for a stationary application depends largely on its economic performance. The electro-chemical energy storage systems are well known for transportation and portable applications. The evaluation of techno-economic feasibility of different electro-chemical energy storage systems for utility-scale stationary applications has received less attention. In this study, bottom-up techno-economic models were developed for five electro-chemical battery storage technologies: sodium-sulfur, lithium-ion, valve-regulated lead-acid, nickel–cadmium, and vanadium redox flow. Four stationary application scenarios – bulk energy storage, transmission and distribution investment deferral, frequency regulation, and support of voltage regulation – were assessed to evaluate the techno-economic feasibility. Life cycle costs were estimated for capacities of 5–100 MW for bulk energy storage, 5–25 MW for transmission and distribution investment deferral, 5–100 MW for frequency regulation, and 5–30 MW for support of voltage regulation. Sensitivity and uncertainty analyses were carried out to examine the extent to which the levelized cost of storage is affected by changes in input parameters. The base case results show that the levelized cost of storage are in the range of $199–$941/MWh for the sodium-sulfur, $180–$1032/MWh for the lithium-ion, $410–$1184/MWh for the valve-regulated lead-acid, $802–$1991/MWh for the nickel–cadmium, and $267–$3794/MWh for the vanadium redox flow, depending on the application scenario. The results also show that when the discharge duration increases, the levelized cost of storage decreases because of economies of scale. A vanadium redox flow battery is not economically suitable for frequency regulation and support of voltage regulation given its short discharge duration.

Keywords: Bulk energy storage; Electrical grid; Electro-chemical batteries; Levelized cost of storage; Techno-economic assessment (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (11)

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DOI: 10.1016/j.apenergy.2020.116343

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