Techno-economic analysis of grid-tied energy storage

S. O. Masebinu, E. T. Akinlabi, E. Muzenda, A. O. Aboyade

Research output: Contribution to journalArticle

Abstract

This paper presents a methodology to assess the technical and economic viability of grid-tied battery energy storage for a student residence under a time-of-use tariff structure. Battery as a storage medium can take advantage of the price arbitrage between peak and off-peak period under favourable conditions. To investigate the impact of different pricing regimes, summer rate was implemented, and the results were compared with that of winter rate on yearly basis. At base case conditions, neither a prevailing summer nor winter pricing tariff favours the use of battery energy storage. A 0.4656 R/kWh price differential between peak and off-peak period for a summer pricing regime was not sufficient for the battery energy storage system to break even. Implementing a year-round winter pricing regime with a price differential of 2.1171 R/kWh between peak and off-peak period requires a minimum of 866 battery cycle life to break even. Probabilistic analysis using Monte Carlo simulation indicated that to make battery energy storage system attractive, at least 110% increase in the peak price of electricity for summer is needed. The study concluded that the price differential among the different time-of-use tariff regimes impact on the extent of profitability of using battery energy storage.

Original languageEnglish
Pages (from-to)231-242
Number of pages12
JournalInternational Journal of Environmental Science and Technology
Volume15
Issue number1
DOIs
Publication statusPublished - Jan 1 2018

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Economic analysis
economic analysis
Energy storage
Economics
energy
Costs and Cost Analysis
tariffs
Costs
summer
Electricity
winter
tariff structure
Life Cycle Stages
Monte Carlo analysis
Life cycle
Profitability
energy storage
battery
economic sustainability
Students

All Science Journal Classification (ASJC) codes

  • Environmental Engineering
  • Environmental Chemistry
  • Agricultural and Biological Sciences(all)

Cite this

Masebinu, S. O. ; Akinlabi, E. T. ; Muzenda, E. ; Aboyade, A. O. / Techno-economic analysis of grid-tied energy storage. In: International Journal of Environmental Science and Technology. 2018 ; Vol. 15, No. 1. pp. 231-242.
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Techno-economic analysis of grid-tied energy storage. / Masebinu, S. O.; Akinlabi, E. T.; Muzenda, E.; Aboyade, A. O.

In: International Journal of Environmental Science and Technology, Vol. 15, No. 1, 01.01.2018, p. 231-242.

Research output: Contribution to journalArticle

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