Economic Evaluation of Energy Arbitrage of Battery Energy Storage According to its Operation regime

Document Type : Original Article

Authors

Faculty of Electrical and Computer Engineering, University of Birjand, Birjand, Iran

Abstract

In recent years, the exploitation of the energy storage systems has attracted many researchers in the electricity industry. Due to the relatively high cost of storage, usually many investors are not being prevented from installing and operating in a power system. In this paper, the effect of the type of operation of the energy storage system (the whole year or part of the year) on the profit of the energy arbitrage (shift) in the electricity market is investigated by an electrical energy storage system. For Evaluation the effect of the price prediction error on the energy arbitrage revenue, two types of prices (real price, 3 Hour Ahead Predispatch Prices) have been used. Due to the encouragement of private investors, it is proposed to use the loan for the initial investment cost so that the proposed plan for the investor is economically justified. Due to high investment costs and longer lifespan of the energy storage system, the number of charging and discharging energy is one, which is the time of charging at the lowest cost of energy and the time of discharge at the highest energy cost to increase energy returns.

Keywords


[1]     N. Bhatnagar and B. Venkatesh, "Energy storage and power systems," 2012 25th IEEE Canadian Conference on Electrical and Computer Engineering (CCECE), Montreal, QC, pp. 1-4, 2012.
[2]     A. S. A. Awad, J. D. Fuller, T. H. M. EL-Fouly and M. M. A. Salama, "Impact of Energy Storage Systems on Electricity Market Equilibrium," in IEEE Transactions on Sustainable Energy, vol. 5, no. 3, pp. 875-885, July 2014.
[3]     M. Johnson, J. Vetrano, K. Lynn, W. Parks, R. Handa and                  L. Kannberg, " Grid Energy Storage," December 2013
[4]     Cavanagh K, Ward J K, Behrens S, Bhatt A I, Ratnam E L, Oliver E and Hayward J, " Electrical energy storage: technology overview and applications". CSIRO, Australia, EP154168.
[5]     P. Poonpun and W. T. Jewell, "Analysis of the Cost per Kilowatt Hour to Store Electricity,"IEEE Transactions on Energy Conversion, vol. 23, no. 2, pp. 529-534, June 2008.
[6]     A. Chen and P. K. Sen, "Deployment of battery energy storage system for energy arbitrage applications," 2016 North American Power Symposium (NAPS), Denver, CO, pp. 1-8, 2016.
[7]     J. Cobb, “Gm says li-ion battery cells down to $145/kwh and
still falling.” 2015. [Online]. Available: http:// www. Hybrid cars. com./ gm-ev-battery-cells-down-to-145kwh-and-still-falling/
[8]     A. Dunbar, L. C. Cradden, R. Wallace and G. P. Harrison, "Impact of wind power on arbitrage revenue for electricity storage,"IET Generation, Transmission & Distribution, vol. 10, no. 3, pp. 798-806, 2 18 2016.
[9]     M. B. C. Salles, M. J. Aziz and W. W. Hogan, "Potential arbitrage revenue of energy storage systems in PJM during 2014," 2016 IEEE Power and Energy Society General Meeting (PESGM), Boston, MA, pp. 1-5, 2016.
[10]  R. K. Lam, D. H. Tran and H. G. Yeh, "Economics of residential energy arbitrage in california using a PV system with directly connected energy storage," 2015 IEEE Green Energy and Systems Conference (IGESC), Long Beach, CA, pp. 67-79, 2015.
[11]  H. Pandžić and I. Kuzle, "Energy storage operation in the day-ahead electricity market," 2015 12th International Conference on the European Energy Market (EEM), Lisbon, pp. 1-6, 2015.
[12]  H. Khani and M. R. D. Zadeh, "Online Adaptive Real-Time Optimal Dispatch of Privately Owned Energy Storage Systems Using Public-Domain Electricity Market Prices," IEEETransactions on Power Systems, vol. 30, no. 2, pp. 930-938, March 2015.
[13]  A. A. Thatte, L. Xie, D. E. Viassolo and S. Singh, "Risk Measure Based Robust Bidding Strategy for Arbitrage Using a Wind Farm and Energy Storage," in IEEE Transactions on Smart Grid, vol. 4, no. 4, pp. 2191-2199, Dec. 2013.
[14]  عباس مارینی، محمدامین لطیفی، محمدصادق قاضی‌زاده و احمد سالم‌نیا، » زمان‌بندی توأم تعمیرات واحدهای تولیدی و منابع ذخیره‌ساز انرژی«، مجله مهندسی برق دانشگاه تبریز، دوره 46، شماره 4، صفحه 286-297، زمستان 1395.
[15]  علی مهدی‌زاده و نوید تقی‌زاده، »برنامه‌ریزی تصادفی ریز شبکه جزیره‌ای در حضور سیستم ذخیره‌ساز هیدروژنی و برنامه پاسخگویی بار«، مجله مهندسی برق دانشگاه تبریز، دوره 47، شماره 2، صفحه 712-725، تابستان 1396.
[16]  Ieso.ca. (2017). Data Directory. [online] Available at: http :// www.ieso.ca/en/power-data/data-directory [17 Oct. 2017].
[17]  H. Delavaripour, H. R. Karshenas, A. Bakhshai and P. Jain, "Optimum battery size selection in standalone renewable energy systems," 2011 IEEE 33rd International Telecommunications Energy Conference (INTELEC), Amsterdam, pp. 1-7, 2011.
[18]  H. Khani, "Adaptive Real-Time Optimal Dispatch of Privately Owned Energy Storage Systems,” Master thesis, University of Western Ontario, May 2014.
[19]  G. Thuesen and W. Fabrycky, Engineering economy. Beijing: Qing hua da xue chu ban she, 2005.
[20]  E. P. R. Institute, “A feasibility analysis of limited energy storage for regulation service,” Electric Power Research Institute, Tech. Rep., 2009
[21]   " Inflation -Canada ", Fa.tradingeconomics.com, 2017. [Online]. Available: https://fa.tradingeconomics.com/canada/inflation-cpi. [17- Oct- 2017].
[22]  "Publication 946 (2016), How To Depreciate Property | Internal Revenue Service", Irs.gov, 2017. [Online]. Available: https://www.irs.gov/publications/p946. [17- Oct- 2017].