Business case analysis of hybrid systems consisting of battery storage and power-to-heat on the German energy market

Patrick Draheim, Uli Schlachter, Henning Wigger, Alena Worschech, Urte Brand, Theys Diekmann, Frank Schuldt, Benedikt Hanke, Karsten von Maydell and Thomas Vogt

Utilities Policy, 2020, vol. 67, issue C

Abstract: Declining prices on frequency containment reserve (FCR) markets endanger the profitability of battery energy storage systems (BESS). BESS combined with power-to-heat units could improve the economics both by supplying higher power rates on FCR markets and by converting excessive power into heat. Two cases were investigated with a techno-economic model using primary operation and market data of 2018/2019. The system amortises after 12 years with a net present value of two million € operating on the FCR market. No improvement was realized by additional arbitrage trading. Taxes, levies and charges frameworks are crucial for the economic success of hybrid systems.

Keywords: Hybrid storage; Frequency containment reserve; Economic analysis (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:juipol:v:67:y:2020:i:c:s0957178720301041

DOI: 10.1016/j.jup.2020.101110

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