Methods for Cost-Benefit Analysis (CBA) of Battery Energy Storage in Power Grids
Challenge and objective
Batteries can be deployed at strategic locations in the grid and perform active and reactive power control for better grid utilization, as an alternative to reinforcements.
The lack of established computational methods for including batteries in grid planning is a barrier for taking research-based models into practice.
Work performed
Systematic overview of relevant methods reported in the literature.
Contrasting the state of the art for these research-based methods with real-world applications.
Significant results
CBA methods should handle investment timing as well as sizing and siting of the batteries.
CBA of batteries basically weights investment costs against operational benefits. The methods therefore need realistic modelling of the operational aspects of batteries: Multi-period AC, load and generation uncertainties, degradation.
Impact for distribution system innovation
Good CBA methods are crucial for analysing batteries and other flexible resources as alternative to traditional grid upgrade solutions.
