Economic analysis of chemical energy storage technologies

Abstract

Smart Grid Technologies are set to transform electric power systems and energy storage is a key tools that will enable this transformation. Energy storage provides innumerable services such as energy arbitrage, frequency regulation, transmission and distribution system deferral, etc. In electric power systems, asset procurement is based upon investment models that ultimately minimize net amortized annual asset costs to supply a unit of electric energy. Accordingly, energy storage procurement is also scrutinized for cost-effectiveness. This paper provides cost effectiveness of different electrical energy storage technologies when used for single and multiple energy storage services. Different popular economic parameters like Net Present Value, Internal Rate of Return, Cost-Benefit Ratio, etc. are estimated to find out cost effectiveness of the technologies.