Summary:
This paper proposes an economic assessment tool that determines the viability of a battery energy storage system (BESS) integrated within renewable power plants for different market applications such as day-ahead price arbitrage, participation in the balancing market and schedule tracking by reducing wind deviations. In particular, maximum BESS investment prices are derived to make BESS potentially viable for each functionality. A case study of an actual 30 MW wind farm participating in the Spanish electricity market is used to test the economic viability of different sizes of Li-ion and vanadium-redox BESS. Results show that with the actual structure and level prices in Spain, the participation in the balancing market could achieve positive internal rates of return, and the combination of additional market functionalities does not improve substantially BESS viability.
Spanish layman's summary:
Este artículo aborda la rentabilidad de diferentes tamaños y tecnologías de baterías integradas en plantas de energía renovable para diferentes mercados del sistema eléctrico español. Los costes máximos de inversión se calculan para hacer la inversión potencialmente viable para cada funcionalidad.
English layman's summary:
This paper addresses the viability of different sizes and technologies of battery energy storage integrated within renewable power plants for different market applications in the Spanish market. Maximum BESS investment prices are derived to make BESS potentially viable for each functionality.
Keywords: Battery energy storage systems; Flexibility; Renewable integration
JCR Impact Factor and WoS quartile: 5,400 - Q1 (2022); 4,800 - Q1 (2023)
DOI reference:
https://doi.org/10.1016/j.segan.2022.100854
Published on paper: December 2022.
Published on-line: July 2022.
Citation:
E. Lobato, L. Sigrist, A. Ortega, A. González, J.M. Fernández de Bobadilla Navarrete, Battery energy storage integration in wind farms: economic viability in the Spanish market. Sustainable Energy, Grids and Networks. Vol. 32, pp. 100854-1 - 100854-9, December 2022. [Online: July 2022]
