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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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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creator Pereira, Caio Oriente
Torquato, Ricardo
Freitas, Walmir
Ding, Hongwu
description 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.
doi_str_mv 10.1109/TSTE.2023.3235213
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source IEEE Electronic Library (IEL) Journals
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
title Wide-Scale Assessment of the Payback of a Battery Energy Storage System Connected to MV Customers
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