Economic Benefit Analysis of Battery Energy Storage Power Station Based on Application Price System

Abstract

In recent years, large battery energy storage power stations have been deployed on the side of power grid and played an important role. As there is no independent electricity price for battery energy storage in China, relevant policies also prohibit the investment into the cost of transmission and distribution, making it difficult to realize the expected income, which to some extent restricts the development of battery energy storage power station and new energy storage technology. This study analyzes the location benefit, system benefit and their combination of grid side battery energy storage, and compares them with the cost of the whole life cycle of battery. It evaluates the cost-effectiveness by using the indexes of income flow, net present value, dynamic investment payback period and intrinsic rate of return. The results show that under the existing market and policy conditions, the single price can not recover the investment cost. In order to promote the development of battery energy storage, the subsidy and price mechanism should be improved, and the participation of energy storage in the spot market should be actively promoted.