Financial Feasibility of Battery Storage based Approach for Renewable Rich Distribution Feeders

Abstract

In consequence to the aggravation of adverse environmental impacts on the extensive use of fossil fuel-based energy resources, the world has focused on renewable energy resources which are greener and cleaner to indulge their energy requirements in the fields of transportation, heating and electricity. A new set of technical difficulties has popped up as a result of renewable additions in the distribution networks, which can be overcome by introducing Battery Energy Storage Systems alongside with renewable generation. Finances associated with the Battery Storage have been the main restraining factor, which hinders the use of them in residential scale solar photovoltaic systems. This paper evaluates the financial viability of incorporating battery energy storage systems alongside solar photovoltaics by developing an algorithm to determine the battery size with the maximum economic benefit, which is followed by a comparative analysis carried out between the solar photovoltaic with battery system and the solar photovoltaic only system. Finally, a suitable tariff structure is proposed, which would enhance the attractiveness of solar photovoltaics with battery system.