The Future of Energy Storage : Investment Evaluations Regarding Energy Storage Systems Connected to PV Systems

Abstract: An ever-decreasing cost of photovoltaics (PV) combined with generous installation subsidies lead to a growth of PV systems in Sweden. A large-scale penetration of PV power would make Energy Storage Systems (ESS) interesting for providing back-up storage, enabling flexibility and regulating intermittence. ESS represents a vital link between electrical supply and demand, and moreover a critical feature for increasing the use and attractiveness of renewable and intermittent energy sources. The purpose of this study is to do a quantitative analysis examining the most beneficial way to store electricity from PV regarding investment cost, life span, capacity and pay-off time. The study object is Valsätraskolan, a school in Uppsala with an existing PV system. The thesis shows that Lithium-ion batteries are the best prospected battery type but still not an economically profitable investment. With the current grid- and battery prices the most suitable battery solution has a pay-off time of 125 years. If the school would extend their PV system to cover all preferable roof areas, the pay-off time would be 48 years. If ESS are to become attractive from a financial point of view, the grid prices would have to increase and the cost for ESS decrease substantially.