Wide-Scale Assessment of the Payback of a Battery Energy Storage System Connected to MV Customers

This letter provides a method for assessing the financial benefits of battery energy storage systems (BESS) installed on medium voltage (MV) customers. A large set of 4,853 real Brazilian MV customers are assessed so that reliable quantitative information and realistic insights can be obtained. Resu...

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Bibliographic Details
Published in:IEEE transactions on sustainable energy 2023-07, Vol.14 (3), p.1-4
Main Authors: Pereira, Caio Oriente, Torquato, Ricardo, Freitas, Walmir, Ding, Hongwu
Format: Article
Language:English
Subjects:
Batteries
Business
Costs
Customers
Decision making
Demand contract
Discharges (electric)
electricity tariff
Energy consumption
Energy storage
energy storage system (ESS)
Incentives
payback time
Storage systems
Systematics
Tariffs
Time of use
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Summary:This letter provides a method for assessing the financial benefits of battery energy storage systems (BESS) installed on medium voltage (MV) customers. A large set of 4,853 real Brazilian MV customers are assessed so that reliable quantitative information and realistic insights can be obtained. Results show that a BESS can reduce customer bill by 1.2% (conservative case) to 7.5% (ideal case), leading to a payback time between 8.4 years (ideal case) and 27.3 years (conservative case). Thus, the studied case indicates the BESS can already be economically viable for MV customers with a predictable, stable consumption profile, especially those with a time-of-use tariff structure for demand and energy, where a BESS benefit closer to the ideal case can be obtained. These results are useful to guide the customer decision-making on acquisition of a BESS, regulatory agencies on when to adjust or establish new incentives for BESS integration, and future research to quantify the benefits of new applications.
ISSN:1949-3029
1949-3037
DOI:10.1109/TSTE.2023.3235213