Cost-benefits analysis of battery storage system for industry consumers based on different operation modes

Abstract

The development of energy storage technology and the expansion of market demand have promoted the rapid development of energy storage industry. However, the high investment cost and single operating income model restrict the commercialization of energy storage on the user side. Based on the existing electricity price policy and the operation characteristics of electricity market in China, this paper analyzes the economy of energy storage projects on the industrial user side under different operation modes including peak load shifting mode, demand response mode and user’s capacity cost reduction mode. By quantitatively analyzing the related costs and benefits of the projects, we compared the internal rate of return and the payback period of investment under different electricity price policies and subsidies. The findings indicate the key factors affecting the economy of the energy storage projects, which provide valuable reference and suggestions for energy storage development on industrial consumers.