Economic feasibility of stationary electrochemical storages for electric bill management applications: The Italian scenario

Mariano Giuseppe Ippolito, Gaetano Zizzo, Giorgio Graditi, Enrico Telaretti

Risultato della ricerca: Article

31 Citazioni (Scopus)

Abstract

Battery energy storage systems (BESSs) are expected to become a fundamental element of the electricity infrastructure, thanks to their ability to decouple generation and demand over time. BESSs can also be used to store electricity during low-price hours, when the demand is low, and to meet the demand during peak hours, thus leading to savings for the consumer. This work focuses on the economic viability of BESS from the point of view of the electricity customer. The analysis refers to a lithium-ion (Li-ion), an advanced lead-acid, a zinc-based, a sodium-sulphur (NaS) and a flow battery. The total investment and replacement costs are estimated in order to calculate the cumulated cash flow, the net present value (NPV) and the internal rate of return (IRR) of the investment. A parametric analysis is further carried out under two different assumptions: a) varying the difference between high and low electricity prices, b) varying the peak demand charges. The analysis reveals that some electrochemical technologies are more suitable than others for electric bill management applications, and that a profit for the customer can be reached only with a significant difference between high and low electricity prices or when high peak demand charges are applied.
Lingua originaleEnglish
pagine (da-a)126-137
Numero di pagine12
RivistaEnergy Policy
Volume94
Stato di pubblicazionePublished - 2016

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electricity
Electricity
Economics
Energy storage
economics
lithium
savings
Profitability
Lithium
Zinc
Sulfur
Lead
zinc
Sodium
sulfur
infrastructure
sodium
demand
Acids
battery

All Science Journal Classification (ASJC) codes

  • Energy(all)
  • Management, Monitoring, Policy and Law

Cita questo

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title = "Economic feasibility of stationary electrochemical storages for electric bill management applications: The Italian scenario",
abstract = "Battery energy storage systems (BESSs) are expected to become a fundamental element of the electricity infrastructure, thanks to their ability to decouple generation and demand over time. BESSs can also be used to store electricity during low-price hours, when the demand is low, and to meet the demand during peak hours, thus leading to savings for the consumer. This work focuses on the economic viability of BESS from the point of view of the electricity customer. The analysis refers to a lithium-ion (Li-ion), an advanced lead-acid, a zinc-based, a sodium-sulphur (NaS) and a flow battery. The total investment and replacement costs are estimated in order to calculate the cumulated cash flow, the net present value (NPV) and the internal rate of return (IRR) of the investment. A parametric analysis is further carried out under two different assumptions: a) varying the difference between high and low electricity prices, b) varying the peak demand charges. The analysis reveals that some electrochemical technologies are more suitable than others for electric bill management applications, and that a profit for the customer can be reached only with a significant difference between high and low electricity prices or when high peak demand charges are applied.",
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T1 - Economic feasibility of stationary electrochemical storages for electric bill management applications: The Italian scenario

AU - Ippolito, Mariano Giuseppe

AU - Zizzo, Gaetano

AU - Graditi, Giorgio

AU - Telaretti, Enrico

PY - 2016

Y1 - 2016

N2 - Battery energy storage systems (BESSs) are expected to become a fundamental element of the electricity infrastructure, thanks to their ability to decouple generation and demand over time. BESSs can also be used to store electricity during low-price hours, when the demand is low, and to meet the demand during peak hours, thus leading to savings for the consumer. This work focuses on the economic viability of BESS from the point of view of the electricity customer. The analysis refers to a lithium-ion (Li-ion), an advanced lead-acid, a zinc-based, a sodium-sulphur (NaS) and a flow battery. The total investment and replacement costs are estimated in order to calculate the cumulated cash flow, the net present value (NPV) and the internal rate of return (IRR) of the investment. A parametric analysis is further carried out under two different assumptions: a) varying the difference between high and low electricity prices, b) varying the peak demand charges. The analysis reveals that some electrochemical technologies are more suitable than others for electric bill management applications, and that a profit for the customer can be reached only with a significant difference between high and low electricity prices or when high peak demand charges are applied.

AB - Battery energy storage systems (BESSs) are expected to become a fundamental element of the electricity infrastructure, thanks to their ability to decouple generation and demand over time. BESSs can also be used to store electricity during low-price hours, when the demand is low, and to meet the demand during peak hours, thus leading to savings for the consumer. This work focuses on the economic viability of BESS from the point of view of the electricity customer. The analysis refers to a lithium-ion (Li-ion), an advanced lead-acid, a zinc-based, a sodium-sulphur (NaS) and a flow battery. The total investment and replacement costs are estimated in order to calculate the cumulated cash flow, the net present value (NPV) and the internal rate of return (IRR) of the investment. A parametric analysis is further carried out under two different assumptions: a) varying the difference between high and low electricity prices, b) varying the peak demand charges. The analysis reveals that some electrochemical technologies are more suitable than others for electric bill management applications, and that a profit for the customer can be reached only with a significant difference between high and low electricity prices or when high peak demand charges are applied.

UR - http://hdl.handle.net/10447/204024

M3 - Article

VL - 94

SP - 126

EP - 137

JO - Energy Policy

JF - Energy Policy

SN - 0301-4215

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