Abstract:
This paper presents a bottom-up approach for techno-economic analysis of a Li-ion battery based Energy Storage System (BESS) to provide grid ancillary services under the “Delivering a Secure, Sustainable Electricity System” (DS3) programme in the Irish market. There are two types of service procurement mechanisms that exist in the DS3 programme: volume capped and volume uncapped. A design methodology of the storage system is investigated to optimise the installed capacity and minimize the initial cost for volume capped DS3 services. Based on the real-life project assessment, three different cost models are considered to evaluate different investment indices. The goal is to assess the economic performance of BESS for different contracted capacity systems under the different operating and financial conditions. Extensive simulation and sensitivity analysis based on the Monte Carlo method have been carried out to compare the cost model outputs. The findings are expected to give a clear idea to the investors and decision-makers about the Irish DS3 ancillary service market and clarify specific concerns on the economic feasibility of BESS for DS3 services. Moreover, it discusses the risks and opportunities related to the high volatility of the system component costs.
Published in: Energy Volume 245, 15 April 2022, 123229