Large-scale deployment of intermittent renewable energy (namely wind energy and solar PV) may entail new challenges in power systems and more volatility in power prices in liberalized electricity markets. Energy storage can diminish this imbalance, relieving the grid congestion, and promoting distributed generation. The economic implications of grid-scale electrical energy storage technologies are however obscure for the experts, power grid operators, regulators, and power producers. A meticulous techno-economic or cost-benefit analysis of electricity storage systems requires consistent, updated cost data and a holistic cost analysis framework. To this end, this study critically examines the existing literature in the analysis of life cycle costs of utility-scale electricity storage systems, providing an updated database for the cost elements (capital costs, operational and maintenance costs, and replacement costs). Moreover, life cycle costs and levelized cost of electricity delivered by electrical energy storage is analyzed, employing Monte Carlo method to consider uncertainties. The examined energy storage technologies include pumped hydropower storage, compressed air energy storage (CAES), flywheel, electrochemical batteries (e.g. lead–acid, NaS, Li-ion, and Ni–Cd), flow batteries (e.g. vanadium-redox), superconducting magnetic energy storage, supercapacitors, and hydrogen energy storage (power to gas technologies). The results illustrate the economy of different storage systems for three main applications: bulk energy storage, T&D support services, and frequency regulation.

Electrical energy storage systems: A comparative life cycle cost analysis

The deployment of energy storage systems (ESSs) is a significant avenue for maximising the energy efficiency of a distribution network, and overall network performance can be enhanced by their optimal placement, sizing, and operation. An optimally sized and placed ESS can facilitate peak energy demand fulfilment, enhance the benefits from the integration of renewables and distributed energy sources, aid power quality management, and reduce distribution network expansion costs. This paper provides an overview of optimal ESS placement, sizing, and operation. It considers a range of grid scenarios, targeted performance objectives, applied strategies, ESS types, and advantages and limitations of the proposed systems and approaches. While batteries are widely used as ESSs in various applications, the detailed comparative analysis of ESS technical characteristics suggests that flywheel energy storage (FES) also warrants consideration in some distribution network scenarios. This research provides recommendations for related requirements or procedures, appropriate ESS selection, smart ESS charging and discharging, ESS sizing, placement and operation, and power quality issues. Furthermore, this study identifies future research opportunities in relation to challenges for optimal ESS placement planning, development and implementation issues, optimisation techniques, social impacts, and energy security.

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Overview of energy storage systems in distribution networks: Placement, sizing, operation, and power quality

https://bura.brunel.ac.uk/bitstream/2438/22670/1/FullText.pdf

Levelized cost of electricity for solar photovoltaic and electrical energy storage

This paper proposes a distributed mechanism for energy trading among microgrids in a competitive market. We consider multiple interconnected microgrids in a region where, at a given time, some microgrids have superfluous energy for sale or to keep in storage facilities, whereas some other microgrids wish to buy additional energy to meet local demands and/or storage requirements. Under our approach, sellers lead the competition by independently deciding the amount of energy for sale subject to a tradeoff between the attained satisfaction from the received revenue and that from the stored energy. Buyers follow the sellers' actions by independently submitting a unit price bid to the sellers. Correspondingly, the energy is allocated to the buyers in proportion to their bids, whereas the revenue is allocated to the sellers in proportion to their sales. We study the economic benefits of such an energy trading mechanism by analyzing its hierarchical decision-making scheme as a multileader–multifollower Stackelberg game. We show that distributing the energy based on a well-defined utility function converges to a unique equilibrium solution for maximizing the payoff of all participating microgrids. This game-theoretic study provides an incentive for energy trading among microgrids in future power grids.

Distributed Energy Trading in Microgrids: A Game-Theoretic Model and Its Equilibrium Analysis

The ever increasing penetration of renewable energy systems (RESs) in today deregulated intelligent power grids, necessitates the use of electrical storage systems. Energy storage systems (ESSs) are helpful to make balance between generation and demand improving the performance of whole power grid. In collaboration with RESs, energy storage devices can be integrated into the power networks to bring ancillary service for the power system and hence enable an increased penetration of distributed generation (DG) units. This paper presents different applications of electrical energy storage technologies in power systems emphasizing on the collaboration of such entities with RESs. The role of ESSs in intelligent micropower grids is also discussed where the stochastic nature of renewable energy sources may affect the power quality. Particular attention is paid to flywheel storage, electrochemical storage, pumped hydroelectric storage, and compressed air storage and their operating principle are discussed as well. The application of each type in the area of power system is investigated and compared to others.

P.R. Jones

Papers

Evaluating the benefits of an electrical energy storage system in a future smart grid