The Transactions of The Korean Institute of Electrical Engineers (전기학회논문지)

The Korean Institute of Electrical Engineers (대한전기학회)
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Estimation of Reasonable Price of Battery Energy Storage System for Electricity Customers Demand Management

전력소비자 수요관리용 전지전력저장시스템의 적정 가격 산정

  • Kim, Seul-Ki (Smart Distribution Research Center, Advanced Power Grid Research Division, Korea Electrotechnology Research Institute) ;
  • Cho, Kyeong-Hee (Smart Distribution Research Center, Advanced Power Grid Research Division, Korea Electrotechnology Research Institute) ;
  • Kim, Jong-Yul (Smart Distribution Research Center, Advanced Power Grid Research Division, Korea Electrotechnology Research Institute) ;
  • Kim, Eung-Sang (Smart Distribution Research Center, Advanced Power Grid Research Division, Korea Electrotechnology Research Institute)
  • Received : 2013.07.03
  • Accepted : 2013.09.28
  • Published : 2013.10.01
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Abstract

The paper estimated the reasonable market price of lead-acid battery energy storage system (BESS) intended for demand management of electricity customers. As time-of-use (TOU) tariffs have extended to a larger number of customers and gaps in the peak and off-peak rates have gradually risen, deployment of BESS has been highly needed. However, immature engineering techniques, lack of field experiences and high initial investment cost have been barriers to opening up ESS markets. This paper assessed electricity cost that BESS operation could save for customers and, based on the possible cost savings, estimated reasonable prices at which BESSs could become a more prospective option for demand management of customers. Battery scheduling was optimized to maximize the electricity cost savings that BESS would possibly achieve under TOU tariffs conditions. Basic economic factors such as payback period and return on investment were calculated to determine reasonable market prices. Actual load data of 12 industrial customers were used for case studies.

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