NDLI: Maximising the investment returns of a grid-connected battery considering degradation cost

Content Provider	IET Digital Library
Author	Bera, Atri Almasabi, Saleh Tian, Yuting Byrne, Raymond H. Chalamala, Babu Nguyen, Tu A. Mitra, Joydeep
Abstract	Energy storage systems (ESSs) are being deployed widely due to numerous benefits including operational flexibility, high ramping capability, and decreasing costs. This study investigates the economic benefits provided by battery ESSs when they are deployed for market-related applications, considering the battery degradation cost. A comprehensive investment planning framework is presented, which estimates the maximum revenue that the ESS can generate over its lifetime and provides the necessary tools to investors for aiding the decision making process regarding an ESS project. The applications chosen for this study are energy arbitrage and frequency regulation. Lithium-ion batteries are considered due to their wide popularity arising from high efficiency, high energy density, and declining costs. A new degradation cost model based on energy throughput and cycle count is developed for Lithium-ion batteries participating in electricity markets. The lifetime revenue of ESS is calculated considering battery degradation and a cost–benefit analysis is performed to provide investors with an estimate of the net present value, return on investment and payback period. The effect of considering the degradation cost on the estimated revenue is also studied. The proposed approach is demonstrated on the IEEE Reliability Test System and historical data from PJM Interconnection.
Starting Page	4711
Ending Page	4718
Page Count	8
ISSN	17518687
Volume Number	14
e-ISSN	17518695
Issue Number	Issue 21, Nov (2020)
Alternate Webpage(s)	https://digital-library.theiet.org/content/journals/iet-gtd/14/21
Alternate Webpage(s)	https://digital-library.theiet.org/content/journals/10.1049/iet-gtd.2020.0403
Journal	IET Generation, Transmission & Distribution
Publisher	The Institution of Engineering and Technology
Publisher Date	2020-07-31
Access Restriction	Open
Rights License	Creative Commons Attribution-Non Commercial-No Derivs License (http://creativecommons.org/licenses/by-nc-nd/3.0/)
Subject Keyword	Battery ESS Battery Powered Vehicle Battery Storage Plants Comprehensive Investment Planning Framework Cost-benefit Analysis Costing Cost–benefit Analysis Cycle Count Decision Making Decision Making Process Declining Cost Decreasing Cost Degradation Cost Model Economic Benefits Energy Arbitrage Energy Storage Energy Storage System Energy Throughput ESS Project Estimated Revenue Frequency Regulation Grid-connected Storage Considering Battery Degradation Cost High Energy Density High Ramping Capability Investment Lifetime Revenue Lithium-ion Battery Market-related Application Maximum Revenue Operational Flexibility Optimisation Optimisation Technique Other Power Stations And Plant Power Generation Economics Power Grid Power Market Power System Economics Power System Managemen Power System Operation Secondary Cell Wide Popularity
Content Type	Text
Resource Type	Article
Subject	Control and Systems Engineering Energy Engineering and Power Technology Electrical and Electronic Engineering

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1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
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7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
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9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in

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