Value analysis of battery energy storage applications in power systems

Stressed and less secure power system operating conditions have encouraged both power utilities and large power consumers to look for bulk energy storage systems. Battery energy storage systems (BESS) have excellent records and are used for decades in power systems. This paper describes a methodology for a monetary value analysis of the BESS for load leveling, control power and peak shaving applications. The purpose of this value analysis is to highlight the application with the highest financial benefit for the owner, of the BESS. To determine the overall economic viability, revenue of each application has been compared with capital and operating costs over the BESS lifetime. The results of the value analysis show that primary control power is the application that most likely will be asked for by utilities during next 3-5 years.