Economic Evaluation of Energy Storage Power Station in Distribution Network

Abstract

With the wide application of distributed generation and electric vehicles, energy storage (ES) technology has been further developed on the demand side. Invested by distributed power users, the energy storage power station (ESPS) installed in the power distribution network can solve the operation bottlenecks of the power grid, such as power quality’s fluctuation and overload in local areas. This paper introduces four typical operation modes of energy arbitrage, demand response, frequency support and reserve power supply with their revenue calculation methods for ESPS installed in the power distribution network, selects net annual value, internal rate of return and dynamic payback period as the economic evaluation indices, then performs a case study based on an ESPS installed in urban distribution network. The results of the calculation example show that, the multi-scenario operation strategy of ESPS proposed in this paper has considerable economic value and brings great economic benefits while solving the operation bottleneck of power distribution network, and the three economic evaluation indices can efficiently assess the economy of the operation modes of ESPS.