Cost-benefit analysis of battery energy storage in electric power grids: Research and practices

Iver Bakken Sperstad; Maren Istad; Hanne Sale; Magnus Korpås; Irina Oleinikova; Seppo Hänninen; Sergio Motta; Konstantina Panagiotou; Christina Papadimitriou; Venizelos Efthymiou; Chresten Træholt; Mattia Marinelli

doi:10.1109/ISGT-Europe47291.2020.9248895

Cost-benefit analysis of battery energy storage in electric power grids: Research and practices

Iver Bakken Sperstad, Maren Istad, Hanne Sale, Magnus Korpås, Irina Oleinikova, Seppo Hänninen, Sergio Motta, Konstantina Panagiotou, Christina Papadimitriou, Venizelos Efthymiou, Chresten Træholt, Mattia Marinelli

Research output: Chapter in Book/Report/Conference proceeding › Conference article in proceedings › Scientific › peer-review

8 Citations (Scopus)

Abstract

This paper provides an overview of methods for including Battery Energy Storage Systems (BESS) into electric power grid planning. The general approach to grid planning is the same with and without BESS, but when BESS is included as an alternative, other methods are necessary, which adds significant complexity to the planning problem. Although recent research literature proposes a wide range of methods and models for Cost-Benefit Analysis (CBA) of BESS for grid applications, these are to a little extent applied in practice. For the research-based methods to be suitable for grid planning, they should handle timing of installations as well as sizing and siting of BESS. Moreover, they must capture long-term developments in load and generation. Finally, the CBA methods need realistic modelling of the operational benefits of BESS, taking into account multi-period AC power flow, battery degradation, and utilization for multiple grid services.

Original language	English
Title of host publication	2020 IEEE PES Innovative Smart Grid Technologies Europe (ISGT-Europe)
Publisher	IEEE Institute of Electrical and Electronic Engineers
Pages	314-318
ISBN (Electronic)	978-1-7281-7100-5, 978-1-7281-7099-2
ISBN (Print)	978-1-7281-7101-2
DOIs	https://doi.org/10.1109/ISGT-Europe47291.2020.9248895
Publication status	Published - 26 Oct 2020
MoE publication type	A4 Article in a conference publication
Event	10th IEEE PES Innovative Smart Grid Technologies Europe, ISGT-Europe 2020: Online - Virtual, Delft, Netherlands Duration: 26 Oct 2020 → 28 Oct 2020

Publication series

Series	IEEE PES Innovative Smart Grid Technologies Conference Europe
ISSN	2165-4816

Conference

Conference	10th IEEE PES Innovative Smart Grid Technologies Europe, ISGT-Europe 2020
Abbreviated title	ISGT-Europe 2020
Country/Territory	Netherlands
City	Delft
Period	26/10/20 → 28/10/20

Funding

ACKNOWLEDGMENT Parts of this work has been funded by CINELDI – Centre for intelligent electricity distribution, an 8-year Research Centre under the FME scheme (Centre for Environment-friendly Energy Research, 257626/E20) of the Norwegian Research Council. The authors gratefully acknowledge the financial support from the Research Council of Norway and the CINELDI partners. The paper also reports findings from the Joint Program on Smart Grid of the European Energy Research Alliance (EERA), Sub-Programme on Electrical Storage Integration.

Keywords

Battery storage
Cost-benefit analysis
Electric power grid
Power system planning

Access to Document

10.1109/ISGT-Europe47291.2020.9248895

Cite this

Sperstad, I. B., Istad, M., Sale, H., Korpås, M., Oleinikova, I., Hänninen, S., Motta, S., Panagiotou, K., Papadimitriou, C., Efthymiou, V., Træholt, C., & Marinelli, M. (2020). Cost-benefit analysis of battery energy storage in electric power grids: Research and practices. In 2020 IEEE PES Innovative Smart Grid Technologies Europe (ISGT-Europe) (pp. 314-318). Article 9248895 IEEE Institute of Electrical and Electronic Engineers. https://doi.org/10.1109/ISGT-Europe47291.2020.9248895

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title = "Cost-benefit analysis of battery energy storage in electric power grids: Research and practices",

abstract = "This paper provides an overview of methods for including Battery Energy Storage Systems (BESS) into electric power grid planning. The general approach to grid planning is the same with and without BESS, but when BESS is included as an alternative, other methods are necessary, which adds significant complexity to the planning problem. Although recent research literature proposes a wide range of methods and models for Cost-Benefit Analysis (CBA) of BESS for grid applications, these are to a little extent applied in practice. For the research-based methods to be suitable for grid planning, they should handle timing of installations as well as sizing and siting of BESS. Moreover, they must capture long-term developments in load and generation. Finally, the CBA methods need realistic modelling of the operational benefits of BESS, taking into account multi-period AC power flow, battery degradation, and utilization for multiple grid services.",

keywords = "Battery storage, Cost-benefit analysis, Electric power grid, Power system planning",

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Sperstad, IB, Istad, M, Sale, H, Korpås, M, Oleinikova, I, Hänninen, S, Motta, S, Panagiotou, K, Papadimitriou, C, Efthymiou, V, Træholt, C & Marinelli, M 2020, Cost-benefit analysis of battery energy storage in electric power grids: Research and practices. in 2020 IEEE PES Innovative Smart Grid Technologies Europe (ISGT-Europe)., 9248895, IEEE Institute of Electrical and Electronic Engineers, IEEE PES Innovative Smart Grid Technologies Conference Europe, pp. 314-318, 10th IEEE PES Innovative Smart Grid Technologies Europe, ISGT-Europe 2020, Delft, Netherlands, 26/10/20. https://doi.org/10.1109/ISGT-Europe47291.2020.9248895

Cost-benefit analysis of battery energy storage in electric power grids: Research and practices. / Sperstad, Iver Bakken; Istad, Maren; Sale, Hanne et al.
2020 IEEE PES Innovative Smart Grid Technologies Europe (ISGT-Europe). IEEE Institute of Electrical and Electronic Engineers, 2020. p. 314-318 9248895 (IEEE PES Innovative Smart Grid Technologies Conference Europe).

Research output: Chapter in Book/Report/Conference proceeding › Conference article in proceedings › Scientific › peer-review

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AU - Korpås, Magnus

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AU - Hänninen, Seppo

AU - Motta, Sergio

AU - Panagiotou, Konstantina

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AU - Træholt, Chresten

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AB - This paper provides an overview of methods for including Battery Energy Storage Systems (BESS) into electric power grid planning. The general approach to grid planning is the same with and without BESS, but when BESS is included as an alternative, other methods are necessary, which adds significant complexity to the planning problem. Although recent research literature proposes a wide range of methods and models for Cost-Benefit Analysis (CBA) of BESS for grid applications, these are to a little extent applied in practice. For the research-based methods to be suitable for grid planning, they should handle timing of installations as well as sizing and siting of BESS. Moreover, they must capture long-term developments in load and generation. Finally, the CBA methods need realistic modelling of the operational benefits of BESS, taking into account multi-period AC power flow, battery degradation, and utilization for multiple grid services.

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Sperstad IB, Istad M, Sale H, Korpås M, Oleinikova I, Hänninen S et al. Cost-benefit analysis of battery energy storage in electric power grids: Research and practices. In 2020 IEEE PES Innovative Smart Grid Technologies Europe (ISGT-Europe). IEEE Institute of Electrical and Electronic Engineers. 2020. p. 314-318. 9248895. (IEEE PES Innovative Smart Grid Technologies Conference Europe). doi: 10.1109/ISGT-Europe47291.2020.9248895

Cost-benefit analysis of battery energy storage in electric power grids: Research and practices

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