Power mapping and aggregation as a service : A techno-economic view on Li-ion batteries for peak shaving and frequency regulation

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Abstract: The world's energy supply today mainly consists of fossil fuels and nuclear power. Moving away from the use of these energy resources to renewable energy sources is considered a prerequisite for a sustainable future. In order to implement this change, it is necessary for renewable energy sources to be environmentally, technically and economically sustainable. A major challenge encountered in terms of technological sustainability is the intermittent nature of renewable energy sources. As the share of renewable electricity increases in the system, the electricity grid is facing new challenges such as increased instability of the frequency and capacity shortages. In order to meet these new challenges an increased flexibility from electricity users is proposed as a solution. Flexibility can be achieved either by controlling the use of electricity or utilizing energy storages. If different electric loads are to be controlled in a property, data regarding the power use of the loads must first be collected with a high time resolution in order to be able to properly analyze the data. Measures to shift or reduce the power peaks in a property can then be suggested and implemented. A battery storage can help reduce power peaks or shift loads in time and if done on a large scale that would reduce the strain on the entire Swedish grid. One of the ancillary services that the battery could offer is frequency regulation. Using energy storages for such an application could also provide a secondary revenue stream, aside from the revenue stream from peak shaving, and increase the profitability of the storage. Sweden has seen a dramatic increase in electric vehicles over the last decade and charging of the vehicles has become an issue for many property owners as it often creates power peaks. The data collection regarding power use in properties performed in during this thesis showed that valuable data can be collected with the method and material used. With a battery price of 3000 SEK/kWh the payback time for a battery system can be reduced from 17,9 to 7,8 years if it is used for frequency regulation during the night. If power-intensive loads such as electric vehicle charging are added to the model the payback period decreases to 6,1 years. With these results in mind, it can be concluded that the profitability of a battery storage can increase to the extent that the investment is of economic viability. In addition, the investment helps to improve the stability of the Swedish grid. The results are found to be relatively consistent with those of other similar studies.

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